SALES and DISTRIBUTION STRATEGY

TATA NANO

TATA NANO is using Hub and Spoke Model for distribution

TATA has many C&F Agents (Collects Nano from hubs and distribute it across nation)

DISTRIBUTION

TATA NANO DISTRIBUTION MODEL

Hub and Spoke Model

While the Nano seemed tailor-made for rural drivers, Tata only has dealers in major cities. 

Lack of dealers in the target market i.e semi urban cities and rural areas.

While the Nano seemed tailor-made for rural drivers, Tata only has dealers in major cities. The car’s reputation was further damaged when five of the first 30,000 cars had

engine fires. Although no one was hurt in these instances, two of the cars burnt to the ground.

The final nail in the coffin is the price: Rising material costs pushed the car’s price up to Rs. 1.5 lakh the same as a used Maruti 800. Even without the social stigma, this price left

many people wondering why they would choose to buy a car that didn’t even have a trunk

PRESENT ISSUES WITH DISTRIBUTION STRATEGY

TARGET SEGMENT

• Setting up exclusive showrooms for NANO

• Developing Specialized Logistics Facilities by collaboration with Specialized logistics providers

• Should Move from full range dealership to Product Based Dealership

• Financing better facilities like Tata Finance

Reinvent the

distribution

strategy

RECOMMENDATIONS

• Dedicated Nano kiosks and Mobile display units, the company also can step up its drive through the hinterlands to spruce sales.

• Association with Retail Outlets like Vishal Mega Mart, Shoppers Shop, Pantloon etc. (Booking facilities, with promotion schemes like ‘Win Silver Coin’)

Reinvent the

distribution

strategy

RECOMMENDATIONS