Flanking with Tata’s Nano

There is no one who has siad so far that they will be seriously affected by Tata’s Nano. I think this is the best sign that Nano will succeed as no one considers it a serious competition. What Nano is going to do is flank a number of product categories. It is going to nibble away small market share from a number of products and no one would be any wiser. By the way, the reason for the success of Nirma was that it flanked Surf. Surf didn’t feel that Nirma was a worthy competitor till it was too late. Lets see who all will Nano flank?

First, it will flank Maruti. Some folks who find Maruti expensive will shift to Nano. Second, it will flank the motocycles. nano has reduced the price gap between a car and a motocycle. So people with motorcycles who want a car but find Maruti expensive may find Nano just within their budget and the motorcycle industry may lose some customers. I feel that Nano may flank the scooter industry also, especially the women buyer. Who else? What about the 3-wheeler industry? Would you rather drive a 3-wheeler auto or a 4-wheeler taxi? Also, would you rather ride a 3-wheeler auto or a 4-wheeler taxi?

Nano is an excellent product in terms of “finding a gap in the market.” When nobody thinks you are competing with them, believe me you have found the best gap. Remember, the very purpose of “finding a gap in the market” is to avoid competition.

What can stop Nano from being a runaway success? The performance of the product and nothing else.

Avinash Narula

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