Nano car, Mega problems

http://www.nytimes.com/2010/12/10/business/global/10tata.html

The title of the above article could not be more scathing in its approach- the people's car that few want to buy. Catchy. Think about it- why isn't this car selling? It made news all around the world. They didn't even have to advertise that through the formal channels- it was the buzz word. Every Indian became a marketer with the pride that it potentially brought for Indian product to be a pioneer. But what went wrong is the question that we're now faced with, cause something obviously did.

Lets take the market. Its the large, bloating Indian middle class. As Ratan Tata mentioned himself- its for those who want to get off riding that scooter with 4 people in and progress to a car. Its for demographic profile that exists in all our Tier 1,2 and 3 cities. These people work the daunting blue collared jobs, sales jobs and sweat it out in the market. They have simple, hard-working lives where Bollywood forms a large part of their aspirations, but their means fall far shorter. Yet, in an invigorating and thriving Indian economy, there is a lot of optimism in this demographic. The possibility of breaking the threshold to the next social bracket is a very real dream. Going from a scooter to a car is a material manifestation of that dream. The Nano is the answer to that dream, but if only they were able to pitch it to them.

The Nano, through all their brand communication, make the car look super super cool. The futuristic look and design furthers this, and the whole PR blitz at the launch touting the Nano as the face of Indian innovation. But this doesn't appeal to their main market; this appeals to the upwardly mobile Indian. To the Indian that is proud of where the country is heading, and wants to make sure they support any venture that competes with the world at a level of innovation never before seen coming out of Indian ventures. And this works- the Nano is cool, light, environment friendly and convenient. Its like the Prius in the American market, it helps the rich make a statement.

If the Nano wants to make the most of a product that undoubtedly produced out of sheer innovation and dedication on the part of the Tata's, someone needs to tone down the 'cool' on the Nano so that it meets the market it was meant for. Simple, clean marketing. Cater to the aspiration; maybe not to the price as much anymore but make sure the brand contains the elements that the target market can identify themselves with.