India, with its booming middle class, massive population, and one of the fastest-growing economies in the world, has always been a dream destination for global brands looking to expand their footprint. From food chains and fashion retailers to automobile giants and tech players, the lure of tapping into over a billion potential consumers is hard to resist. Getting your company into the Indian market isn’t as easy as setting up shop or running glitzy ads.
Why does this happen? Sometimes it’s poor timing. Other times, it fails to adapt products, marketing, or pricing to local realities. But almost always, it’s a reminder that in India, cultural relevance and customer insight aren’t optional; they’re essential.
Let’s take a deep dive into 10 global brands that failed in India and unpack the real reasons behind their downfall. Each case teaches why even the biggest names in business can’t afford to underestimate the Indian market.
Once positioned as the “king of good times,” Kingfisher Airlines, founded by liquor baron Vijay Mallya, was India’s most luxurious airline when it launched in 2005. Plush interiors, gourmet meals, and attractive branding earned the airline quick popularity. However, a combination of reckless expansion, high operating costs, and poor debt management caused it to spiral into a financial crisis.
By 2012, Kingfisher had grounded operations, leaving behind unpaid staff, angry creditors, and a massive INR 9,091 crore debt trail.
Why did Kingfisher Airlines fail?
Kingfisher Airlines failed due to poor financial planning and reckless expansion without sustainable revenue. Its focus on luxury added to high operating costs, which couldn’t be maintained in a price-sensitive market. On top of that, massive debt mismanagement led to a complete financial collapse.
Bisleri, a household name synonymous with bottled water in India, once tried to tap into the lucrative carbonated soft drink market with Bisleri Pop. Launched with high hopes, the beverage came in multiple flavours and aimed to compete with global giants like Coca-Cola, Pepsi, and even local rivals like Thums Up and Sprite.
However, despite its brand recognition, the product fizzled out quickly. The market was already saturated with strong brand loyalty, aggressive advertising, and massive distribution networks. Bisleri Pop lacked the unique appeal or innovation to stand out on retail shelves. Moreover, marketing efforts failed to create the kind of consumer connection that its rivals had already mastered.
Why did Bisleri Pop fail?
It failed due to no clear uniqueness, tough competition from well-loved brands, and weak marketing that didn’t create a strong brand recall among consumers.
Chevrolet
When General Motors rolled Chevrolet into the Indian market in 2003, it aimed to bring American engineering flair to one of the world’s fastest-growing automobile markets. With global success in its rearview mirror, GM had big plans for India. It launched a range of cars, including the Spark, Aveo, Beat, Cruze, and Tavera, all intended to woo Indian consumers across budget and premium segments.
But instead of carving out a strong foothold, Chevrolet ended up skidding off course. Despite an aggressive launch and promotional campaigns, the brand quickly found itself in a traffic jam of problems. Indian consumers, who are extremely value-conscious, found Chevrolet cars overpriced compared to local alternatives like Maruti Suzuki, Hyundai, and Tata Motors. Even though the cars came with solid build quality, they lacked the fuel efficiency and affordability that Indian buyers sought.
In 2017, General Motors finally hit the brakes and announced its exit from the Indian passenger car market, deciding instead to focus on exports from its Talegaon plant (which it later sold to Great Wall Motors and then to Hyundai).
Why did Chevrolet fail?
Chevrolet failed because of a misaligned product strategy that didn’t cater to local preferences, poor localization of features, and a broken after-sales network that left customers frustrated.
Tata Nano
The Tata Nano was launched with the vision of providing an affordable car to the masses, ranging between INR 1.45 lakh and INR 2.65 lakh. With this bold move, Tata Motors wanted to redefine urban mobility and make car ownership accessible to the lower-middle class.
The Nano’s biggest strength was its ultra-low price, & ironically became its biggest weakness. Indian consumers, driven by aspirations and status, didn’t want to own something known as the “cheapest car.”
Safety concerns also tainted the Nano’s reputation. Several instances of the car catching fire, even though rare, and later addressed, went viral and damaged consumer trust. By 2018, Tata Motors stopped production, and the Nano quietly exited the roads it once promised to dominate.
Why Did Tata Nano Fail?
The negative perception of being the “cheapest car,” combined with safety concerns and limited features, hurt its appeal. Production setbacks and a lack of consumer trust led to its quiet exit from the market.
Bloomberg TV India
Launched with the global muscle of Bloomberg and a sharp focus on financial news, Bloomberg TV India aimed to become the go-to channel for India’s business-savvy audience. But despite quality content, it failed to gain traction.
The niche English-speaking business audience was already loyal to players like CNBC-TV18 and ET Now.
Despite high-quality global content, it remained a niche player. The English-speaking business audience was limited. With low viewership came lower ad revenue, which couldn’t sustain the channel’s high operating costs.
In 2016, Bloomberg pulled the plug on its Indian partnership, and the channel was rebranded as BTVi (Business Television India). But without the Bloomberg brand and facing the same structural challenges, BTVi couldn’t survive either. It eventually shut down operations in August 2019, marking the end of the road.
Why did Bloomberg TV India fail?
The failure of Bloomberg TV India wasn’t due to a lack of content quality, but rather a combination of limited market size, poor brand positioning, and high operational costs that couldn’t be sustained over time.
IKEA opened its first Indian store in Hyderabad in 2018, bringing with it its famous Swedish food menu. The IKEA cafeteria, known globally for its meatballs, mashed potatoes, and smoked salmon, aimed to offer Indian shoppers a taste of Scandinavian cuisine with a side of affordability and novelty.
While the concept generated massive curiosity in the beginning (with long queues for both furniture and food), the excitement around IKEA’s lunch offerings started to fade. The foreign flavours didn’t quite match Indian palates, and dishes like Swedish meatballs or smoked salmon wraps were seen as too bland, expensive, or unfamiliar for many local visitors.
To appeal to the Indian audience, IKEA later added local favourites like biryani, samosas, and kebabs to the menu. Nevertheless, early disconnects in understanding local food preferences affected their momentum. Food quality inconsistencies and long wait times also dampened the dining experience for many.
Why Did IKEA’s Lunch Fail?
IKEA’s food strategy in India stumbled due to a cultural mismatch in cuisine, initial lack of localization, and unmet expectations around price and taste.
Axe Effect
The Axe Effect, a line of male grooming products by Unilever, became globally famous for its provocative and humorous advertising campaigns. In the West, ads featuring men attracting women with the spray were a hit. However, when Axe entered markets like India, its humour didn’t resonate.
The overtly sexual content and objectification of women did not resonate with Indian cultural norms, leading to criticism from various quarters. In response to the growing disapproval, Unilever announced a global shift in its advertising strategy, aiming to move away from sexist stereotypes and promote more inclusive messaging.
Why Did Axe Fail?
The cultural insensitivity and controversial advertising didn’t resonate with Indian values, and the brand failed to adapt its marketing strategies to local sensibilities, resulting in negative reactions.
Walmart
Walmart’s ambitious foray into India in 2007, through a joint venture with Bharti Enterprises, aimed to tap into the country’s vast retail market. However, the venture faced significant challenges that hindered its success.
India’s complex foreign direct investment (FDI) regulations posed a significant barrier. Requirements such as sourcing 30% of products from small and medium enterprises and investing a minimum of $100 million in new facilities, with half allocated to backend infrastructure, created operational difficulties for Walmart.
These factors, combined with internal challenges and policy uncertainties, led to the dissolution of the Walmart-Bharti joint venture in 2013.
Why Did Walmart Fail?
Walmart couldn’t succeed due to regulatory complexities, a disconnect with Indian shopping habits, and operational difficulties in adapting to a very different retail environment.
American Apparel
American Apparel, renowned for its provocative advertising and edgy fashion, entered the Indian market in 2010 with high expectations. However, the brand’s overtly sexualized marketing campaigns clashed with India’s conservative cultural norms, leading to backlash from various groups.
Additionally, the high price point for clothing perceived as “basic” deterred budget-conscious Indian consumers. These challenges contributed to the brand’s inability to gain widespread acceptance, ultimately leading to the shutdown of its Indian operations in 2016.
Why Did American Apparel Fail?
It failed due to a cultural mismatch, controversial branding that didn’t resonate with Indian values, and a pricing strategy that didn’t appeal to the cost-sensitive Indian market.
eBay
eBay was one of the earliest global e-commerce giants to enter India back in 2004. Riding on its global success, the brand tried to replicate its C2C (consumer-to-consumer) marketplace model in India. But there was one big problem: Indian consumers were still warming up to the idea of trusting strangers online.
While rivals like Amazon and Flipkart poured investments into building robust logistics, easy return policies, and reliable customer experiences, eBay took a more hands-off approach. The result? Frustrated customers, delayed deliveries, and a trust gap that widened with time.
By 2017, eBay India was acquired by Flipkart in a strategic deal, but even that couldn’t breathe new life into the brand. Eventually, eBay exited the Indian market for good in 2018.
Why Did eBay Fail?
eBay failed due to poor logistics investment, a weak customer experience, and a business model that didn’t match Indian consumer habits.
Brands like Kingfisher Airlines, Bisleri Pop, Chevrolet, Tata Nano, Bloomberg TV India, IKEA, Axe, Walmart, American Apparel, and eBay failed in India.
Why did Kingfisher Airlines fail in India?
Kingfisher Airlines collapsed due to poor financial management, high debt, and operational inefficiencies, despite strong brand visibility.
Why didn’t Walmart succeed in India?
Walmart struggled with India’s complex retail regulations and couldn’t establish its full-scale retail operations before shifting to e-commerce.
Being one of India’s oldest and biggest Groups, the Tata Group is an Indian-based multinational, multi-industry company founded by Jamsetji Tata in 1868. It was founded as a private trading firm. The Group incorporated with the Indian Hotels Company in 1902 to commission the first luxury hotel in India – the Taj Mahal Palace & Tower.
After the death of Jamsetji Tata, his son Dorabji Tata became the chairperson of the Group. Under his leadership, the Group vastly expanded in several industries such as steel, electricity, education, consumer goods, and aviation.
Under the leadership of Jehangir Ratanji Dadabhoy Tata (J.R.D.) The company grew in new sectors such as chemicals, technology, cosmetics, marketing, engineering and manufacturing, tea, and software services and now the company is an Indian multinational conglomerate. Let us look at some of the interesting facts about Tata Group.
This huge company is not only present in India. However, the Tata Group has a market presence all over the world in 175 countries. It is well recognized in the car industry with more than 8.5 million vehicles of the Tata brand.
Tata Group serves a worldwide area and also has its products and services spread out across 6 continents. The company has around 29 products and subsidiaries spread across multiple areas.
2. Tata Group Built the Country’s First Indigenous Car
India’s First Indigenous Car – Indica
So many foreign car brands have entered India. But you will be amazed to know that India’s first indigenous car was manufactured in 1998. The Tata Indica is a passenger hatchback car equipped with a 1396 cc diesel engine. This car became a hit instantly.
The Tata Indica was a kind of supermini car with more than 910000 units being produced by August 2008. The same model car had annual sales reaching up to 144690 units by the year 2008-2009. However, the model was discontinued in April 2018. s
3. Tata Built the First Sports Car in India
Tata Racemo
The Racemo was India’s first sports car which was built by Tata Motors under the badge of its sub-brand Tamo. It has a 190 PS engine that can go up to 100km/hr in 6 seconds. It was unveiled at the 87th Geneva Model Show.
The Racemo was thought to be built in two different models. One was based on roadways and the other one was for the track ready. The final limited number of models that were estimated to be made was around 250 units. However, due to cost issues, the model was halted.
4. Tata Supplies Defense Vehicles to the Indian Army
Tata Military Truck
Tata has been supplying armored trucks and combat-ready vehicles to our Indian army for decades. Their military vehicles include Defence Combat Light Armored Multi-Role Vehicle, Defence Light Support Vehicle, Defence Futuristic Infantry Combat Vehicle (FICV), Defence Combat Wheeled Armored Amphibious Platform (WHAP), and Defence Combat Light Armored Multi-Role Vehicle.
5. Tata Built the World’s Cheapest as Well as Costliest Car
Tata Nano
Tata Nano, the world’s cheapest car costing 1 lakh was launched in 2008 by TATA Motors. It has a 624cc petrol engine which produces 37bhp of power and 51Nm of torque. The production of this car eventually stopped in 2019.
The car was also introduced as the world’s first-ever gold jewelry car. It was made of gold, silver, and precious gems and was made to celebrate 5000 years of jewelry making in India. The car cost over INR 22 crores.
6. Tata Group Has Never Invested in the Alcohol or Tobacco Business
Although, intoxicants have a greater business in a country like India. Though the company had expanded its business in various areas, it never invested in tobacco and alcohol.
Tata Group has stayed true to its value even after so many years of its establishment. Tata Group has never ever invested in any alcohol or tobacco business. The same statement was stated by Tata Sons director J J Irani on 31 July 2010.
7. Tata Group Has Never Sponsored Any Bollywood Movie
Many huge companies try to invest once in the entertainment industry. But very interestingly Tata has never financed any Bollywood movies. But in 2003 the company co-produced the big-budget movie Aetbaar.
The number of films produced by the Tata Group is still negligible. It is not a lie to say that Tata Group prefers to stay away from investing in Bollywood films until any exceptional moment arrives.
8. The Tata Brand Has Been a Pioneering Brand of Many Services
From providing the first branded salt to establishing the first steel mill in India, Tata established its strong base from the very start for our developing country. They also established five-star hospitality in India, IT services, power companies, etc.
It was also the first to organize branded jewelry and the first to sell retail steel in India. Tata has around 29 different subsidiaries and their count keeps on increasing with the introduction of new subsidiaries in the market by the Tata Group.
9. Tata Motors Owns Jaguar Land Rover
After ascending as the chairman of the Tata Group, Ratan Tata played a crucial role in acquiring powerful businesses. One of them is the acquisition of Jaguar Land Rover.
Jaguar Land Rover is a Britain automobile company that is a part of Tata Motors. It manufactures, designs, and sells cars of the same name. Tata Group acquired both companies from Ford and merged them in 2008.
10. The First Trucks of the Tata Motors Had the Mercedes Logo
Tata Mercedes Trucks
Tata Motors had a technical collaboration with Daimler Benz, a merged company that manufactures the Mercedes-Benz cars. Due to this, the first trucks produced by Tata had the Mercedes-Benz logo.
Tata Group has been in the automobile field for a long course of time. The time started with the rolling out of Telco in 1954. The telco was the first truck manufactured by the Tata Group but with the logo of Mercedez on it.
11. Tata Steel Acquired the Corus Group in 2007
Tata completed one of the biggest corporate takeovers by acquiring the Anglo-Dutch steel manufacturer Corus Group in 2007 April. Tata acquired the company for £6.2 billion which is US 12 billion dollars.
Corus Group is one of the biggest manufacturing and steel-producing companies in Europe formed in 1999. The Corus Group earlier was also formed after the merger of British Steel of the United Kingdom and Koninklijke Hoogovens of the Netherlands
The Tata logo is designed by the popular Wolff Olins consultancy. Wolff Olin’s consultancy is a British advertising agency and corporate identity consultancy. The logo of Tata Group was designed with much thought and meaning behind it. It symbolizes fluidity and adaptability. The color blue stands for the excellence, reliability, and strength of the company’s products.
The logo can also be interpreted as the fountain of knowledge, or a tree most probably a tree of trust under which people can take refuge. Irrespective of the interpretation, the logo has a deep meaning attached to it.
13. Tata Group Was the 5th Most Valuable Corporate in Asia
Even after facing many downfalls in the past decades. In 2015, Tata Motors became the 5th most valuable corporate brand in Asia due to its high net revenue and overall growth. Tata Group has also given much acknowledgment to its key person. Sir Jamsetji Tata also received the title of Hurun Philanthropist of the Century in 2021.
14. Tata Group Was Included in a Legal Battle by Its Chairman
Major points in the legal battle between Cyrus Mistry and Tata as per the article published by business-standard.com
The Tata Group was led by Cyrus Mistry for a short period of 4 years. Cyrus Mistry was the second chairman of Tata Group with no “Tata” in the name.
Cyrus worked as a Chairman for the Tata Group from 2012-2016 and was removed from the post in 2016 by the board of members. On the contrary, Cyrus approached the NCLT to file a case with the claim that the company is oppressing the interests of small stakeholders.
He alleged the company of oppressing the minority shareholders and quoted his removal as an instance. The legal battle between Cyrus Mistry and the Tatas was in action for almost six years with the final decision given by the Supreme Court on May 2022. At last, the court rejected the reviewing petition filed by Cyrus and stayed firm on the verdict passed by the Supreme Court, which was in favor of Tata.
15. Tata Group Brought Starbucks to India
Starrbucks – A TATA Alliance
Under the leadership of Sir Ratan Tata, Tata Consumer Products Ltd. partnered with Starbucks Coffee Company in 2012 to bring the famous coffee brand to India. This joint venture introduced café culture to Indian cities, making Starbucks a popular spot for coffee lovers and adding to Tata Group’s international collaborations.
Though companies are created and organized to make money and fame, the same is not the story for Tata. Jamsetji Tata built his company with the simple mission of “making people’s lives better”.
It paved the way for all the industries that followed by acting as the pioneer of almost all of them. The revenue of Tata Group rose from $4 billion to $100 billion under Ratan Tata’s leadership from 1991 to 2012. With revenue of $165 billion as of FY24, the Tata Group stands as one of the biggest groups not only in India but all over the world.
FAQs
What is the meaning of the Tata logo?
The meaning of the Tata logo is to show fluidity and adaptability. The blue color in the logo stands for the meaning of excellence, reliability, and strength of the company products.
What makes the Tata Group unique?
The Tata Group was the first one to introduce many new concepts in India. And more than that, the company looks for its value over any other possible aspect. All these aspects make the Tata Group unique from other similar companies.
What is the main product of Tata?
Tata has a list of approximately 30 Tata products including names like Tata Steel, Tata Enterprises, Titan, etc.
What are the 5 Tata values?
The 5 values of Tata are integrity, unity, responsibility, excellence, and pioneering.
What is the revenue of Tata Group for FY24?
With revenue of $165 billion as of FY24, the Tata Group stands as one of the biggest groups not only in India but all over the world.
Tata Nano is a compact vehicle that was produced and showcased by Indian automaker Tata Motors,principally in India, as a modest back-engined hatchback expected to speak to current riders of bikes and bikes — with a dispatch cost of Rs 1,00,000 or $2500. Delays during the production line migration from Singur to Sanand, early cases of the Nano bursting into flames, the impression of the vehicle being perilous, and compromise in quality due to cost slicing are some of the factors behind Tata’s failure to attract Indians.
Here we present the case study of the Tata Nano and find out why Tata Nano Failed and never gained traction despite being termed as the ‘people’s car’.
Tata Motors anticipated the creation of 250,000 every year at dispatch. This didn’t happen. Only 7591 were sold for the model year 2016-17. In 2017, Tata Motors said assembling would proceed because of Tata’s passionate promise to the project. In 2018, Cyrus Mistry, previous Chairman of the Tata Group, called the Tata Nano a venture in progress with China, with a generation overhaul scheduled in May 2018.
After effectively propelling the ease of the Tata Ace truck in 2005, Tata Motors started the advancement of a reasonable vehicle that would speak to the numerous Indians who ride motorcycles. The price tag of this nitty-gritty auto was brought somewhere around getting rid of the most superfluous highlights, diminishing the measure of steel utilized in its development, and depending on the ease of Indian labor.
The superfluous highlights include the evacuation of the traveler’s side wing mirror, having one wiper sharp edge, having just three fasteners for every wheel, and the expulsion of the fuel filler top from the fuel tank. The presentation of the Nano got much media consideration because of its low cost of Rs. 100,000. The vehicle was promoted as “The People’s Car”.
A report by the Indian rating office CRISIL figured the Nano would extend the country’s vehicle advertising by 65%, in any case, starting late 2012. However, deals in the initial two monetary years after the vehicle’s divulging stayed unfaltering at around 70,000 units. Tata still proposed the ability to deliver the vehicle in a lot bigger amounts, somewhere in the range of 250,000 every year, if the need arises.
It was foreseen that its 2009 presentation would significantly influence the trade-in vehicle market, and costs dropped 25–30% before the launch. Sales of the Nano’s closest rival, the Maruti 800, fell by 20% promptly following the disclosing of the Nano.
It is obscure if the Nano has lastingly affected the costs of and interests for close substitutes. In July 2012, Tata’s Group administrator- Ratan Tata, who resigned in January 2014, said that the vehicle had huge potential while conceding that the early open doors were squandered because of starting problems. Due to the business drops, just a solitary unit was delivered in June 2018.
Making Of Tata Nano
Tata Nano Failed Marketing and Business Strategy
India is an organization with a larger part of its populace dwelling as a low-pay gathering. Purchasing a vehicle is still a fantasy for many families in India. In the year 2008, Ratan Tata reported the dispatch of its new vehicle, which would be a progressive item in the car division. He called it a 1 Lakh rupee vehicle and the same title was used for promotions.
The fantasy of a middle and even lower white-collar class family unit to have their very own vehicle woke up with this declaration from Tata Motors. It was hailed as be cutting-edge innovation and was commended by international media. An entirely unexpected story unfurled when the vehicle appeared on the streets.
India Customer’s Needs
Ratan Tata’s flash for the Nano came when he saw groups of 3-4 individuals utilizing a motorbike for transportation. There are a great many bicycles in India and it has constantly presented well-being worries for the general population. In blend with the poor street conditions in India and conveying a full family on a bike, bikers are subjected to numerous mishaps.
His strategic view drove the concept of a low-cost vehicle and chose that the 1 Lakh Rupee sticker price would be appealing to the objective market.
At the point when Tato Nano was declared in the long stretch of January 2008, it was over-advertised to be the vehicle of each Indian. The cost of Nano was pegged at INR 1 lakh or $2500 by Ratan Tata, the Chairman of the Tata Group by then of time.
It turned into a fantasy vehicle for each individual having a place with the lower working class and even the lower class. Anyway, the service of the vehicle additionally raised worries about the blockage on streets that the vehicle would acquire as individuals began to utilize it for everyday transportation.
Strategic Plans
TATA Motors fundamentally segmented and focused on the following sections of the Indian population:
The middle class- Fundamentally the lower white-collar class.
Upper lower class- Normally the bike clients.
Family with 3-4 individuals who have inconveniences while going on a 2-wheeler.
World’s Cheapest Car – Tata Nano
Affordability And Family Friendly Usage
Tata Nano being propelled in the Indian market was an opportunity for the normal man of India to fulfill his dream of owning a vehicle. The promotions and media productions featured the passionate remainder that demonstrated the joy of youngsters when they see a vehicle coming to their home and the joy of the substance of the relatives who delineated a white-collar class gathering.
The battling Indian classes who had a month-to-month pay of under Rs.6000 every month and comprised more than 110 million families got the chance to dream of purchasing a vehicle. Mr. Ramesh Mangaleswaran, an accomplice of McKinsey and Co., anticipated that in Mumbai alone the 2 million individuals who rode a cruiser ordinary would now attempt to lift themselves to purchase a Tata Nano.
It was expected that Tata Nano would make a progressive change in the way of life, uncommonly concerning the substitution of the regular man. It would turn into the face of the Indian lower class, just like the Bajaj Scooter at one time represented the white-collar class.
Ratan Tata stayed faithful to his obligation and the Indian market saw Nano set on the streets in the long stretch of July 2009. At the start, the deals for the vehicle were high. It then began to decay every month. There are a few reasons for Tata Nano failure which are as below:
Failure in marketing the vehicle was the main reason behind Tata Nano’s Failure. Tata Nano’s marketing strategy failed to resonate emotionally with Indian consumers, who often make buying decisions based on feelings rather than logic. While highlighting the car’s features was important to showcase its value, the campaigns lacked the emotional connection needed to engage customers, leading to a loss of market appeal.
TATA Nano promotes itself as the least expensive vehicle. The company assumed what the market wanted without truly understanding it. Their emotional attachment to the product led them to believe it was a necessity, while customers saw it as a luxury. Many buyers preferred their current lifestyle over choosing a “cheap” car, which made the Nano’s low-cost label unappealing.
Purchasing a vehicle is identified with economic well-being and distinction in the public arena.
“Cheap” and “lakhtakia” used in Tata Nano’s advertising for advancement and showcasing all over India disturbed its image.
The engine was an issue.
Competition from the used car market reduced the Nano’s market share, as consumers favored well-known brands that were seen as more reliable.
Challenges with political and land acquisition issues forced the relocation of Nano’s production plant, delaying production timelines and adding to the project’s difficulties.
Tata Nano – Reasons for its Failure
Problems With The Car
Awful picture of the shoddy vehicle.
Several cars caught fire. Thus, despite its low cost, people refrained from buying it.
Media channels covering the news related to Tata Nano underestimated the vehicle. In any case, they were correct.
The car was not fit for sloping territories.
The motor used to make a great deal of clamor, and individuals even compared it with an auto.
The insides were dull with inadequate leg space.
The whole assemblage of Nano was light and prone to damage on even the slightest of knocks.
Other Reasons
Tata Nano got around 200,000 appointments at first. This made Tata Motors complacent and it didn’t bother about new advertising strategies. New publicity procedures were essential to keep the enthusiasm of the individuals unblemished. But it wasn’t done. When the main flame episode was accounted for, the ad system then just looked responsive and upgraded rather than focusing on negative attention.
Nano was viewed as an attraction for individuals who never thought of purchasing a vehicle. It was focused on engine cycle riders, recycled vehicle proprietors, and different families in the lower white-collar class gathering. This prompted some degree of opposition. According to the intended interest group, the media and the general public acknowledged Tata Nano as a poor man’s vehicle.
Ratan Tata in his previous question and answer sessions referenced that he wanted to position Tata Nano as a ‘reasonable, all climate family vehicle”.
At the point when Nano later raised its cost to conquer the negatives of the principal model, the cost turned out to be a lot higher. The top-end model of Tata Nano (2014) was cited at an on-street cost of around INR 2.6 lakhs in Bangalore. This sort of evaluation with the equivalent Nano model which the poor man likewise claimed, confounded the clients.
Indians No Longer Liked Cheap
Tata Nano’s Attempted Comeback
In the year 2013 Tata Engines re-propelled Tata Nano with new components and publicity efforts. The re-dispatch concentrated on the following:
Focusing on the young people of the nation, the new Nano had extravagant settings like settings and shading blends, for example, ranch side or experience sports. The ads and crusades this time concentrated on the adroitness factor. The emphasis was, “Why not purchase a Nano when it gives everything at a deep discount?” It additionally featured the rational advantage of Fuel productivity in another manner.
This time, Tata Nano pursued another sort of crusade altogether. They began to support programs on MTV that energized experience sports and stretched out the crusade on National TV.
Like the arrangement Roadies circulated on MTV where the members needed to go on a Hero Karizma, they attempted to execute a comparable technique where the members were approached to traverse India in a Tata Nano. This validated the intensity with which the vehicle was fabricated.
It concentrated on the passionate parts of a parent, and the car was promoted such that guardians can give their children a Tata Nano as opposed to giving them bicycles; a vehicle is more secure than a bicycle. This would likewise make them brilliant guardians.
End Note
Tata Nano started with high hopes but failed within a decade due to marketing mistakes and product issues.
The story of Tata Nano highlights the complex relationship between innovation, perception, and market trends. By understanding the challenges it faced through this case study, businesses can learn important lessons about what to avoid in product development. This case emphasizes the need for thorough market research, effective marketing strategies, and adaptability to changing consumer needs. The Tata Nano serves as a cautionary tale, reminding us that success requires a careful balance and understanding of market dynamics.
FAQs
Why did Tata Nano fail?
There are a few reasons of failure which justify Tata Nano’s downfall,
Failure in marketing the vehicle was the main reason behind Tata Nano’s Failure to attract customers.
Tata Nano promotes itself as the least expensive vehicle.
No one needs to drive the least expensive vehicle.
Purchasing a vehicle is identified with economic well-being and distinction in the public arena.
“Cheap” and “lakhtakia” used in Tata Nano’s advertising for advancement and showcasing all over India disturbed its image.
The engine was an issue.
There was a buzz in the universal media, “What if Nano becomes successful? It would mean an end to the second-hand car market.”
Why did Tata Nano fail to attract customers?
Delays during the production line migration from Singur to Sanand, early cases of the Nano bursting into flames, the impression of the vehicle being perilous, and compromise in quality due to cost slicing are some of the factors behind Tata’s failure to attract Indians. Also, Tata nano promotes itself as the least expensive vehicle. No one needs to drive the least expensive vehicle.
Is Tata Nano still available?
Tata Nano is no longer available in the new car market.
Is Nano car still in production?
No Tata Nano is no longer manufactured.
What went wrong with Tata Nano?
Tata Nano got around 200,000 appointments at first. This made Tata Motors complacent and it didn’t bother about new advertising strategies. New publicity procedures were essential to keep the enthusiasm of the individuals unblemished. But it wasn’t done. When the main flame episode was accounted for, the ad system then just looked responsive and upgraded rather than focusing on negative attention.
Tata Group is an Indian global aggregate holding organization headquartered in Mumbai, India. Established in 1868 by Jamsetji Tata, the organization increased worldwide acknowledgment in the wake of acquiring a few global companies. Perhaps the biggest aggregate, TataGroup is claimed by Tata Sons.
Each Tata organization works autonomously under the direction and supervision of its directorate and investors. Noteworthy Tata’s organizations and backups incorporate Indian Hotels Company, Tata Chemicals, Jaguar Land Rover, Tata Communications, Tata Consultancy Services, Tata Motors, Tata Power, Tata Steel, Voltas, and much more.
Case study of Tata Group, an Indian global aggregate holding organization headquartered in Mumbai, established in 1868 by Jamsetji Tata. Read more about it in detail in this article.
In 1870 with INR 21,000 capital, Jamsetji Tata founded an exchange organization. He purchased a bankrupt oil plant at Chinchpokli and transformed it into a cotton plant under the name Alexandra Mill which he sold for a profit after 2 years. In 1874, he set up another cotton factory at Nagpur named Empress Mill.
His aim was to accomplish 4 main objectives: setting up an iron & steel organization, an exceptional inn, a world-class learning establishment, and a hydroelectric plant. During his lifetime, the Taj Mahal Hotel at Colaba waterfront was opened in 1903, making it the first in power in quite a while.
After Jamsetji’s passing, Dorabji Tata, his son, became the Chairman in 1904. Sir Dorabji built up the Tata Iron and Steel organization (TISCO), presently known as Tata Steel, in 1907. Denoting the gathering’s worldwide aspirations, Tata Limited opened its first overseas office in London. Soon as per Jamsetiji’s wish, Western India’s first hydro plant was set up and the Indian Institute of Science was also set up in 1911.
JRD Tata was crowned Chairman of Tata Group in 1938. Under his chairmanship, the benefits of the Tata Group developed from $100 million to over $5 billion. When he took over TATA, it had 14 undertakings, but in 1988 Tata Sons had developed into a combination of 95 endeavors. These endeavors comprised adventures that the organization had either begun or held controlling interests in.
In 1952, JRD established an airline, known as Tata Air Services (later renamed Tata Airlines). In 1953, the Government of India passed the Air Corporations Act and acquired a larger part stake in the transporter from Tata Sons; however, JRD Tata would continue as Chairman till 1977.
In 1945, Tata Motors was established and was first centered around trains. In 1954, it entered the business vehicle showcase in the wake of shaping a joint endeavor with Daimler-Benz. In 1968, Tata Consultancy Services was established.
In 1991, Ratan Tata was crowned Chairman of Tata Group. This was additionally the time of financial advancement in India, opening up the market to remote contenders. During this time, Tata Group started to obtain various organizations like Tetley (2000), Corus Group (2007), and Jaguar & Land Rover (2008). In 2017, Natarajan Chandrasekaran was named administrator.
Tata Group Companies
List of the Tata Group’s Chairmen from 1868 to Present
The Tata Group is considered India’s number one conglomerate multinational company with its headquarters situated in Mumbai. The company is known to be in business for more than 150 years of service and its products are widely spread across multiple fields.
The company is known to provide services in more than 150 countries and covers about six continents. Since the time of its service, there have been several chairmen noted to work for Tata Group. The list of Tata Group’s Chairman is given below:
Jamsetji Tata 1868 – 1904
Jamsedji Tata 1868 – 1904
Born on 3 March 1839, Jamsetji Tata was an Indian Pioneer and the founder of today India’s biggest group of companies called Tata Group. He was the first Chairman of the firm and remained in the same post till 1904.
Sir Jamsetji Tata is honored with many titles and awards. He was given the honorary tag of “Father of Indian Industry”. He was also ranked first in the list of “Hurun Philanthropists of the Century (2021)”. Sir Jamsetji Tata left the world on 19 May 1904, at the age of 65.
Sir Dorabji Tata 1904 – 1932
Sir Dorabji Tata 1904 – 1932
Born on 27 August 1859, Sir Dorabji Tata was the eldest son of Sir Jamsedji Tata and the second chairman of the Tata Group. He died in 1932 giving rise to the third chairman of the Tata Group.
Sir Dorabji Tata played an essential role in forming and maintaining the Tata group of industries during the British era. The prime focus of Sir Dorabji Tata was to fulfill the dream left by Sir Jamsedji Tata and establish the modern iron and steel industry.
Sir Dorabji Tata was the first president of the Indian Olympic Association. He was also acknowledged by the Britishers. In 1910, Dorabji Tata was knighted by Edward Vll to be referred to as Sir Dorabji Tata.
Sir Nowroji Saklatwala 1932 – 1938
Sir Nowroji Saklatwala 1932 – 1938
Born on 10 September 1875, Sir Nowroji Saklatwala was the third chairman of the Indian multinational conglomerate Tata Group. Unlike the previous two chairmen, he was just a mere employee and an apprentice of the Tata Group.
He made his way up from an employee to Chairman and remained in the same post till his sudden death due to heart failure in 1938. Sir Nowroji Saklatwala introduced many schemes and facilities for the employees and always worked well for the welfare of the employees.
JRD Tata 1938 – 1991
JRD Tata 1938 – 1991
Born on 29th July 1904, Jehangir Ratanji Dadabhoy Tata was the fourth chairman of the Tata Group. He was the second child of Ratanji Dadabhoy Tata, the cousin of Jamsedji Tata. JRD is the only chairman of Tata Group who has served for more than 50 years. JRD Tata was also the first Indian to be granted a commercial pilot license.
And owing to his interest in the aviation industry, JRD Tata established Tata Aviation Services. He made many contributions to the company and was also acknowledged for his efforts. JD Tata is also the owner of the Padma Vibhushan and the Bharat Ratna awards. After two years of resigning as the chairman of Tata Group, Sir JRD Tata died on 29 November 1993.
Ratan Tata 1991 – 2012, 2016 – 17
Ratan Tata 1991 – 2012, 2016 – 17
Born on 28 December 1937, Ratan Naval Tata was the fifth chairman of the Tata Group. Ratan Tata was the son of a Naval Tata. Naval Tata was the adopted son of the sir Jamsedji Tata. Ratan Tata started as an assistant in the Tata Group and made his way up to the fifth chairman of the company.
Ratan Tata was appointed as the chairman of the company in 1990 and remained in the same post till 2012. He was again known to serve the Tata Group as an interim chairman for the period between October 2016 and February 2017.
Ratan Tata had contributed to shaping the firm from the time he was appointed as the chairman, the Tata Group was in a chaotic form. Under the guidance of Sir Ratan Tata, the company flourished again. Ratan Tata is also the holder of many awards like the Padma Bhushan (2000) and Padma Vibhushan(2008).
Ratan Tata passed away on October 9, 2024, at the age of 86. He had been admitted to the Hospital due to age-related health issues and to manage his blood pressure.
Born on 4 July 1968, Cyrus Pallonji Mistry was the sixth chairman of the Tata Group and also the second chairman in consideration to not bear the tag of “Tata” in their surname. Cyrus Mistry joined the Tata Group as a board member and was soon elected as the chairman of Tata Group in 2012.
However, just after four years of chairmanship, he was removed from the position of chairman by the board of members. The prime reason behind his removal has many debates on the topic. It is stated that Cyrus Mistry did not acknowledge the history of the Tata Group and was keen on developing the firm in his way.
There were also reports stating that Cyrus Mistry filed a case against Tata’s heads for oppressing the interest of small stakeholders. The issue between Cyrus Mistry and Ratan Tata was taken to the legal procedures where on 26th March 2021, the Supreme Court of India ruled out the decision in favor of Ratan Tata and dismissed the rumors of Cyrus Mistry being reinstated as the group chairman.
Irrespective of the ups and downs faced by Cyrus Mistry, he was categorized as the most important industrialist in both India and Britain in the year 2013 in an article published by the Economist. Unfortunately, on 04 September 2022, Cyrus Mistry died in a road accident in Maharashtra.
Natarajan Chandrasekaran 2017- Present
Natarajan Chandrasekaran 2017- Present
Born on 2 June 1963, Natarajan Chandrasekaran is the seventh and the current chairman of the Tata Group. He is the only chairman in the history of the Tata Group who is a non-Parsi and professional executive. He was previously working as the chief operating officer and chief executing officer of the Tata consultancy services.
The journey of Natarajan Chandrasekaran as the chairman of the Tata Group is not a smooth one. In the year, 2019, the National Company Law Appellate Tribunal (NCLAT) held his position as chairmanship illegal and gave the order to restore Cyrus Mistry as the Executive Chairman. Yet again in 2020, the Supreme Court of India overruled the decision of NCLAT. Natarajan Chandrasekaran is still known to work as the Chairman of the Tata Group.
The Tata Business Excellence Model (TBEM) is an altered adaptation of the internationally famous Malcolm Baldrige Model. TBEM is utilized by the Tata business group to remain in step with the regularly changing business conditions.
TBEM focuses on seven central activities: administration, key arranging, client and market center, estimation, examination and learning of the executives, human asset center, processing of the board, and the business results. Execution is estimated in outright focuses, and organizations need to accomplish at least 500 (out of 1,000) within four years of consenting to the BEBP arrangement.
Accomplishments are granted by acknowledgment over the group. TQMS helps Tata’s business organizations utilize the model to pick up bits of knowledge on their business qualities and open doors for development. This is overseen through a yearly procedure of appraisal and affirmation.
TBEM Criteria Purpose
Tata Business Excellence Model (TBEM) is the reason for leading authoritative evaluations and for offering input to candidates. Moreover, the TBEM criteria have three significant jobs in reinforcing aggressiveness:
To help improve authoritative execution practices, abilities, and results.
To encourage correspondence and sharing of best practices among associations of various kinds.
To fill in as a working apparatus for comprehension, overseeing execution, and directing hierarchical arranging and open doors for learning.
TBEM-based performance excellence goals.
TBEM Criteria are intended to enable associations to utilize a coordinated way to deal with hierarchical execution.
Conveyance of regularly improving an incentive to clients and partners; adds to hierarchical maintainability.
Improvement of by and large authoritative viability and capacities.
Hierarchical and individual learning.
The Role of core values and concepts.
Leadership
The administration tends to observe how your senior heads manage and support your association and set an authoritative vision, qualities, and execution desires. Consideration is given to how your senior chiefs speak with your workforce, create future pioneers, measure hierarchical execution, and make a domain that energizes moral conduct and elite.
The category additionally incorporates your association’s administration framework and how it guarantees moral conduct and practices great citizenship.
Strategic Planning
Vital planning leads to activity arranging, sending of plans, how satisfactory assets are guaranteed to achieve the plans, how plans are changed if conditions require a change, and how achievements are estimated and supported.
The strategic planning category focuses on long-haul authoritative support. While numerous associations are progressively capable of vital arranging, plan execution is a noteworthy test.
This is particularly obvious given market requests to be spry and to be set up for sudden change, for example, troublesome innovations that can disturb a generally quick-paced yet increasingly unsurprising commercial center. This category features the need to put an emphasis on building up your arrangements as well as on your capacity to execute them.
Customer And Market Focus
Client and market focus caters to how your association tries to comprehend the voice of the client and of the commercial center with attention to fulfilling clients’ necessities, needs, and desires, enchanting clients, and building steadfastness. The category stresses connections as a significant piece of a general tuning, learning, and execution greatness technique.
Your consumer loyalty and disappointment results give indispensable data to understanding your clients and the commercial center. Much of the time, such outcomes and patterns give the most significant data on your clients’ perspectives as well as on their commercial center practices (e.g., rehash business and positive referrals), and how these perspectives and practices may add to the manageability of your association in the commercial center.
Measurement, Analysis, And Knowledge Management
The Measurement, analysis, and knowledge management category is the primary concern inside the criteria for key data about successfully estimating, investigating, improving execution, and overseeing authoritative information to drive improvement and hierarchical intensity.
In the least complex terms, category 4 is the “mind focus” for the arrangement of your association’s activities with its vital goals. Fundamental to such utilization of information and data is their quality and accessibility.
Workforce Focus
Workforce focus caters to key workforce rehearses coordinated towards making and keeping up an elite working environment and towards drawing in the workforce to empower it. It also deals with the way in which the association adjusts to change and succeeds.
The category covers workforce commitment, improvement, and the board in a coordinated way (i.e., lined up with your association’s vital targets and activity plans). To fortify the essential arrangement of the workforce, this criteria additionally covers human asset arranging as a major aspect of the strategic planning category.
Tata Company’s Main Business Sectors
Process Management
Procedure Management is the point of convergence inside the Criteria for your key work frameworks and works forms. Incorporated with the category are the focal necessities for recognizable proof and your abilities to accomplish productive and powerful work process administration, successful structure, a counteractive action direction, linkage to clients, providers, accomplices, and colleagues, and an emphasis on esteem creation for every single key partner, operational execution, process duration, crisis availability, assessment, ceaseless improvement, and authoritative learning. Dexterity, cost decrease, and process duration decrease are progressively significant in all parts of the procedure.
In straightforward terms, “deftness” alludes to your capacity to adjust rapidly, deftly, and successfully to evolving prerequisites. Contingent upon the idea of your association’s methodology and markets, readiness may mean quick change starting with one item and then onto the next, fast reaction to evolving requests, or the capacity to deliver a wide scope of tweaked administrations.
Readiness likewise progressively includes choices to redistribute, concurrences with key providers, and novel courses of action. Adaptability may request unique procedures, for example, executing particular structures, sharing segments, sharing assembling lines, or giving specific preparation.
Cost and process duration decrease frequently including Lean procedure the board systems. It is essential to use key measures for following all parts of your general procedure.
Business Results
The resulting category gives outcomes that include your target assessment and your clients’ assessment of your association’s items and administrations, your general money-related and showcase execution, workforce results, initiative framework, social duty results, and the consequences of every single key procedure and procedure improvement exercise.
Through this center, the Criteria’s motivations: prevalent estimation of contributions as seen by your clients and the commercial center, unrivaled hierarchical execution as reflected in your operational, workforce, lawful, moral, and monetary pointers, and authoritative and individual learning are kept up.
Classification 7 in this way gives “constant” data (proportions of progress) for assessment and improvement of procedures, items, and administrations in arrangement with your general authoritative technique.
The organization emphasizes the 4Ps (Product, Price, Place, Promotion) which exude Tata Group’s advertising methodology.
Product
Tata Group Products
The item procedure and blend in Tata Group’s promoting technique can be clarified as pursues. Tata Group is one of the main aggregates in India. Tata Group has its essence in a few enterprises and has units spread over the world. The Tata gathering is into the following business verticals:
Communication and ITeS: Tata Communications, Tata Teleservices, Tata Consultancy Services, Tata Elxsi, and Tata Interactive Services.
Consumer and Retail: Tata Sky, Titan, Landmark, Infiniti Retail, and Casa Decor.
Defense and Aerospace: Tata Advanced Materials, Tata Industrial Services, Tata Technologies, and Tata Manufacturing Services.
Realty and Infrastructure: Tata Power, Tata Housing Development Company, Tata Consulting Engineers, Tata Power Solar, and Voltas.
Financial Services: Tata AIA Life Insurance, Tata AIG General Insurance, Tata Capital, and Tata Investment Corporation.
Manufacturing: Tata Chemicals, Jaguar Land Rover, Tata Steel, Tata Motors, and Tata Daewoo Commercial Vehicle Company.
Services: Tata SIA Airlines – Vistara, Tata Services, Tata Technologies, Taj Air, TM International Logistics, and Tata Global Beverages.
This rundown isn’t comprehensive. It has more than seventy brands which take into account twenty-eight separate businesses.
Price
All organizations of the Tata gathering capacity function autonomously. Each of these organizations is one of a kind and particular from one another. In this way, the estimating technique in its promoting blend pursued by these individual organizations differs as they are all in various ventures confronting diverse financial variables, capital, scale, and so on.
Which TATA Company Earns the Most
Place
Tata gathering is available in more than eighty-five nations more than six landmasses. The gathering has developed to a tremendous scale all-inclusive. The greater part of its organizations are forward-thinking and give benefits on cell phones and hold a decent nearness on the web.
Promotion
The free organizations under the Tata brand advance their image (and their own identity) through individual promoting plans. Tata’s administrations and customer items are known to utilize big names like Titan, Taj Hotels, and so forth. Print media is additionally utilized widely by organizations like Tata Steel and Tata Motors.
Organizations like that of Guard and Consultancy are more B2B in nature; they don’t enjoy mass advancements. Since this is a helpful showcasing of the brand, here are the other three Ps that form the 7Ps advertising blend of Tata Group.
People
The Tata bunch all in all utilizes 6,60,800 representatives. The Tata Group itself is possessed by Tata Sons. The Tata Quality Management Services part is responsible for managing the quality administration branch of more than a hundred autonomous organizations to guarantee primary quality principles as the Tata gathering remains the mainstay of value and trust.
Physical Evidence
The sheer size of the Tata gathering is proof of it being a seething achievement and market pioneer. Tata Gathering’s business sector top is 7.2% of the all-out market top of BSE.
Procedure
The Tata gathering strategizes to develop by securing mergers around the world and incrementing its topographical limits. The gathering likewise targets obtaining the wellsprings of crude material.
For setting, the Tata gathering has profound enthusiasm for getting steel plants all over the globe with the goal that it can give steel at any rate to its car organization, subsequently disposing of the issue of the store network and profiting from the economies of owing the wellspring of crude material.
It has in the past procured misfortune by acquiring worldwide mammoths like Tetley tea, Land Rover, and Jaguar. Henceforth, this finishes up the promoting blend of Tata Group aggregate.
In a nutshell, one can say that the “Tata group” is one of the most inspiring idols for new entrepreneurs. Tata Company is one of the pride of India and a shining example of success for younger business climbers.
There are many new examples set by Tata Group in front of the World. The above article contains the company details with its basic information like marketing strategy, business model, list of chairmen, etc.
FAQs
Who is the founder of Tata Group?
Jamsetji Tata is the founder of Tata Group.
Why is Tata Group Successful?
Tata Group abides by its mission and works on ethics. Many competitors of Tata Group are publicly owned firms, whereas Tata is a family business that now has grown into a big multinational conglomerate. Its success lies in its core values and an undefeated business model.
What are the 5 Tata values?
Tata Group is driven by 5 major values. They are integrity, responsibility, excellence, pioneering, and unity.
Which company is the most profitable in the Tata group?
As per the report, Tata Consultancy is the most profitable company in the Tata Group in 2023.
Why is Ratan Tata an inspiration?
Ratan Tata has set many examples for the young generation to look at and learn. The prime reason behind Ratana Tata being an inspiration is that he is a combination of an excellent businessman and a great human being.
What is Tata’s first business?
Jamsetji Tata started the business in 1868 as a commerce company and later expanded into other industries.
Sakshi Jadhav
