Tego

Important Branding Lesson from Ratan Tata

Ratan Tata, one of the most successful Indian businessmen of all time and former chairman Tata Group, has revealed an important branding lesson after admitting to mistakes being made in the marketing for the Nano car brand. Labeling the car as “cheap” was, in Tata’s eyes, a clear error as it led to a negative public perception of the car that resulted in disappointing sales. The Chairman Emeritus of Tata Sons has made a bold move in admitting his mistakes, but this knowledge will prove valuable to businessmen all around the world who seek to follow in the footsteps of one of India’s business icons.

Tata made the claims at a recent talk he was giving at the Great Lakes Institute of Management. The students in attendance were evidently intrigued as he described the mistake of labeling the car as “cheap” rather than “affordable”. Naturally, Tata explained, the idea of an affordable car is more attractive than a cheap one. The latter evokes associations with low quality and poor production values, while the former suggest a connection with families and individuals on restricted budgets.

Tata explained how the Nano was intended to “reach out to people” and that the marketing behind the car was meant to support this idea. The businessman suggested that the “cheap” labeling was meant to entice people with lower incomes into feeling that the company was thinking of them. However, the branding unfortunately become associated with more negative images that resulted in people shying away from Nano cars in general. Nevertheless, Tata maintains that the Nano launch was particularly successful and that the brand of cars is still doing well in spite of this mistake.

This success did come at a cost however, as Tata explained that the production factory for the Nano cars had to be relocated after waves of criticism were directed at the company by various detractors. Tata questions the fairness of this criticism but accepted it nonetheless. It took an extra year for the Nano launch to arrive after the factory was forced to shift states. Still, when the launch finally came, the Nano brand proved to be popular with many people and the cars should have a bright future ahead of them.

During the talk, Tata also praised the current state of Indian education, comparing it to the exciting times in the sixties and seventies in America. Since leaving his post as chairman of that Tata Group in 2012, Tata has invested in a wide variety of startups and sees plenty of potential for the future. Evidently, the businessmen and women he supports will be keen to avoid emulating the mistakes made with the Nano car brand. The branding lesson he learned the hard way will clearly provide vital knowledge for future successes all around the world of business. Marketing graduates and enthusiasts will all be able to learn something from this story and will hope to avoid a similar situation in their own professional careers.

More about
Dreamer

Dreamer

Top Posts | Branding

The Legal Side of Branding

Not tending to the legal side of branding has produced unnecessary setbacks for too many businesses. Trademark infringements are filed on a daily basis, and the high-profile ones which make it into the news represent just the tip of a very large iceberg. Here are a few ways you can protect yourself ...

Your Startup Deserves Perfect Branding

Startups are becoming more and more popular, particularly with young entrepreneurs who don't have much experience when it comes to running a business. In order for your new company to be successful, your branding needs to be perfect. The way you market your company and attract new clients can b ... ...

Important Branding Lesson from Ratan Tata

Ratan Tata, one of the most successful Indian businessmen of all time and former chairman Tata Group, has revealed an important branding lesson after admitting to mistakes being made in the marketing for the Nano car brand. Labeling the car as “cheap” was, in Tata’s eyes, a clear ... ...

Branding Versus Advertising: How Different are the Two?

What is the difference between branding and advertising? You would be surprised by the number of marketers who do not really comprehend the difference. Both concepts are constituted in marketing and have the ability to impact each other. Differentiating between the two will boost your marketing str ...

How Is Your Brand Viewability?

The world of digital marketing is ever expanding. With the popularity of the internet, marketers from all over the world have taken their businesses online in the hope to reach out to a lot more people than they could ever before.But what happens if your advertisements online are never seen by the ...

Building Brand Identity Through Advertising

During the infancy of marketing, a brand used to be an abstract and often misunderstood concept used by marketing managers simply to label a product and differentiate it from the competition. The core of a company’s branding efforts was its logo, which was ideally designed to portray trustwor ... ...

How Storytelling Can Boost Your Brand

Building a great brand for your company should be a key part of your marketing plan.  Storytelling can be a useful brand-boosting strategy.  Here’s how:Be GenuineA good story that appeals to customers will help to connect your business with them.  Think carefully about your sto ... ...