Reverse Innovation: An Exploratory Study on Tata Nano Motors

Abstract

This article unpacks the concept of reverse innovation by studying the Nano version of the Tata engine, the cheapest car in the world to be unveiled in India. The document examines the concept process, product development and marketing strategy used by the company. Nano was made with the people of India in mind, so it was the first local production for local buyers before it exports to the developed world, the development of Nano products became known for its cost-saving features, which initially influenced the price of promotion, but later increased due to car innovations. The car is known for its cost-cutting features, such as three walnut camera wheels, access to the trunk from the inside and a windshield wiper. The price was marked at $2,000, which was equivalent to a motorcycle. Some notable aspects that led to Tata Nano's success include the recruitment of competent and trained human resources, creating synergies with chain offerings for easy distribution. But the company faced challenges ranging from looming safety standards causing a car fire, a longer wait for the vehicle and ultimately a marketing strategy that was unsustainable and ultimately led to a drop in sales.

Key words: Reverse innovation, emerging economies, Tata Nano motor

DOI: 10.7176/JESD/12-6-11

Publication date:March 31^st 2021