Sometimes last year, The Economic Times reported that Tata are planning to shut down their Nano plant. To be honest, I was not surprised. I believed that this was likely to happen. No hindsight this; I had expressed my thoughts during my workshop held on March 22, 2008… just a few months before Nano was being launched.
I feared that perception would play a role. During the time of its launch, Nano had unprecedented PR all around the world. After all, there finally would be a Rs 1 lac car. It was drilled in our heads that Nano is a Rs 1 lac car. So far so good.
My question was, for how long this price tag would hold true? What happens if the prices go up? If a Rs 1 lac is not available for Rs 1 lac, why will people buy it? At a higher price other options will be available.
Once a perception is created, it’s almost impossible for it to be erased from consumers’ mind. In my book, I have dealt on this very important marketing tool. Yes, you need to build a perception and then live up to it. Once done, don’t attempt to change the perception. It won’t work. It’s better to change the product rather than trying to change the perception.
And there could be other reasons for Nano not getting the desired response from the marketplace. But that’s another story.
Well, there are mistakes businesses make. And there are antidotes. I have listed 101 of them in my book, ‘Your Enterprise Isn’t Dead. Yet.’ Can be downloaded at https://www.prakashbang.com/the-entrepreneur/
