Tata motors has two major market segment that it aims to penetrate with its line of vehicle that it produces. One target is the low income families and individuals looking to purchase a first car. This target group mostly concentrates itself in the developing nations such as China and India, Tata’s own home country. Tata’s offering of models such as the Nano and the Indica caters for this segment. This target segment also has been the most widely publicized target of Tata Motors. The other segment Tata targets is on the complete opposite side of the economic spectrum. This target segment also has been the most widely publicized target of Tata’s. Tata’s second target segment is the wealthy individuals and families looking to purchase luxurious cars. Tata targets this group with their offering of Land Rover and Jaguar lines of automobiles. Both of these highly recognized and respected brand name vehicles were recently acquired by Tata from Ford Motors in 2008.

In order to cater itself to two such divergent groups, Tata motors offers different value proposition to each. The value proposition it offers to the first group, the low income individuals and families, is to offer a line of vehicles that are affordable while still being safe. This value proposition was clearly evident and communicated when the Nano was announced for release in 2009. However, since then the Nano has become somewhat of publicity nightmare for Tata as it failed to deliver these proposed value propositions and satisfy its consumers. This unfortunate event became widely publisized in front of an eager world audience still awe struck at Tata’s initial daring proposition. In reality, Nano’s market price started at $2900, a whopping 45% increase from the initial suggested price of $2000 (Bajaj, 2010). Nano also revealed itself to possess a serious design flaw in its electrical system and