Tata Motors' new strategies to lure youngsters towards Nano Twist

From peak sales of over 27,000 units in the January-March 2012 quarter to under 4,000 in the three months to December 2013, Tata Motors' Nano hasn't quite lived up to the hype and expectations built up since its launch in mid-2009. Former Tata group chairman Ratan Tata — now chairman emeritus — recently said the "cheap car" image had hampered the Nano's progress, and earlier this week Tata Motors took one of its first steps to erase that "stigma".

It launched Nano Twist, a 'smart city car' with power steering, improved beige interiors, a new instrument cluster with driver information system and a redesigned gearshift console. Goodbye Rs 1 lakh car, or at least that perception — this variant costs just under Rs 2.36 lakh (ex-Delhi showroom).

"With the new Nano Twist, and the Nano eMax a few months back, we have begun this journey of a Nano portfolio that stands true to its brand essence: of a youthful, exciting car offering great value but, at the same time, builds in a different set of features to suit differing customer needs," says Tata Motors managing director Karl Slym.

The attempt over the past year has been to attract youngsters. In 2012, only a fifth of the buyers fell in the age bracket of 18-34; that share more than doubled to 55% in 2013, although it hasn't translated into increased sales. "The Nano needs to be aspirational rather than spartanly utilitarian," says Ankush Arora, senior vice-president and head commercial, passenger vehicle business unit, Tata Motors. Here are the five prongs of the strategy to reverse the sales downtrend:

Focus on youth: To build a youthful and aspirational value around the brand, Tata Motors through its 'awesomeness' branding and marketing campaign worked with fashion designer Masaba Gupta on the launch of the Twist. The makeover campaign is an attempt to get youngsters to look at the Nano as a fashion accessory. "Young consumers want complete accessorisation in the car like alloy wheels, different interiors, spoilers and graphic designs," explains Arora. The company promises more on-ground activities and showcases at colleges to woo the youth.

Fresh positioning: From a people's car and the world's cheapest, the Nano is now positioned as the smart city car for young achievers. Arora says while the perception of a cheap car has still not gone away, the profile of the consumer has tremendously improved — along with the features in the car. Based on market research, Tata Motors has segmented potential customers into first-time buyers, those looking for a replacement or an additional car and others who want more features and performance. Near-term plans include a variant with automated transmission to strengthen the smart city car positioning.

"With all the significant product changes, we have a really easy-todrive car, great to manoeuvre, with a distinct individuality and colour and offering what no car can in this price range — a great style, entertainment and music, industry-leading power steering and more," says Slym. Adds Rakesh Batra, partner, national leader, automotive sector, Ernst & Young: "The repositioning will make the product cater to a larger number of customer segments. If the value proposition is right, it should lift volumes."

Read our Tata Nano Twist Review