Innovation and New Product Development Case Study

Tata’s Nano Home, Shubh Griha: Benefitting Bottom of the Pyramid?

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Abstract:
This case study primarily deals with Tata Housing Development Company’s low-cost housing project, Shubh Griha and the viability of this project for the company. Tata Group, through its group companies, has so far launched a number of innovative products for the low-end consumers. The most vibrant example of such innovation is the world’s cheapest car, Nano. In 2009, Tata also launched a project called Shubh Griha, world’s cheapest home, to the consumers at the bottom of the pyramid. Nicknamed as Nano Housing, this low-cost housing project is firstly launched at Boisar, Mumbai with the price of each unit (home) ranging from INR 3.9 lakh to INR 6.7 lakh. The company claims that Shubh Griha goes beyond just providing a home and offers a complete experience with ‘unparalleled’ range of amenities. However, although the company is making headlines with its low-cost housing foray, will this model prove to be a boon for the middle- and low-income consumers? Can the company make profits out of this low-cost housing project and what can be the possible challenges for the company in carrying out this project? Can the project prove its success and once again make the low-cost model business mantra of Tata’s a winning strategy. Can such low-cost models create and deliver value to the end-consumer by means of social innovations?

Pedagogical Objectives:

• ·To investigate why the hitherto ignored low-income consumers are viewed as a new emerging market potential and understand how companies are catering to the needs of middle and low-income consumers of emerging markets through innovation
• ·To critically analyse the low-cost housing project (Shubh Griha) of Tata Housing Development Company and the reasons behind the launch of this project
• ·To discuss and debate on the challenges for the company and potential of low-cost housing in India

Keywords : Low-cost housing model; Tata housing; Bottom of the Pyramid; Affordable housing; Shubh Griha; Tata Nano Housing; Low-cost innovation; Emerging Markets; Indian housing sector; Demand-supply gaps; Housing Shortage in India