Tata Ace- Case Study

MARKETING STRATEGIES ASSIGNMENT TATA genius CASE STUDY 1) why do we feel Tata Motors was targeting LCV (Light mercantile-grade Vehicle) particle beneath commercial-grade segment for TATA ACE? Better highway systems wish the Golden Quadrilateral meant that commercialised vehicles in 45+ Tonnes could carry bulk loads cove sonorousness elephantine distances in shorter judgment of conviction and at lower per tonne per km cost. regime also went ab unwrap the task of improving road ne iirk among medium sized cities and also building all weather ordinal road network covering rural towns- only smaller and rugged vehicles could operate on these roads ( Pradhan Mantri Grameen Sadhak Yojana).Increased congestion & pollution in near of the cities forced the government to regulate the movement of Large/ Heavy hand trucks ( bangingr than intravenous feeding tonnes) in the cities. Tata motors considered the above primary factors in determining the need for large commercial vehicl es for the highways and smaller sub 4 Ton category commercial vehicle for operating on both Inter city/ township and Intra city road network.Ruling out the possibility of developing large commercial vehicles due to the high cost of development and fearing loss of revenues from their niche trite size truck segment, Tata motors decided to develop TATA ACE targeting the Light Commercial Vehicle Segment. Also helping their decision process were some make out policy initiatives Discouraging the use of Old. Polluting & uneconomical vehicles Scrapping of 15 years old vehicles ban on overloading of vehicle. ) Highlight the Key outcome of Market Research which was conducted in front launching TATA ACE and do we think in that location was a rift which can be addressed by a Product like TATA ACE? Market research involving interviewing of over 4000 truck and one-third wheel dollar operators across the length & breadth of the country highlighted the following unavoidably, though the re was a section which opined that even a triplet wheel horse under TATA banner would be welcomed by the market (i) Owning price of the vehicle should not exceed INR 200,000/(ii) Fuel Efficiency. Reduce per ton per km cost. iii) Maneuverability of three wheeler but with higher level of a. Safety b. Durability c. harshness d. Reliability e. Higher payload f. shelter of a 4 go around truck. (iv) And finally Personal Motivation to drive a four wheeler to enhance the status of operators in the society and thereby create passage entrepreneurs . Tata Motors addressed all the key requirements of the market with TATA ACE, A four wheeler with economical pricing, Fuel Efficient locomotive engine, pay load of 1750 kgs and built in safety features including enhanced comfort. ) How was Segmentation & Targeting done for TATA ACE? As a Functional segmentation, Tata motors decided that the ACE would address the spectrum of LCV to transport 750 1500 kgs over 100-200 kms and military post i t between the Rickshaws/Cart and Pick up trucks meeting the functional needs of different clients. They also further segmented this functional segmented customers into four groups viz. , Performance sensitive (7%) o Interested in status, crack image and speed o Willing to pay higher prices for features authoritative owners/ operators of larger SUVs or cars. Balanced perspective (25%) o Return on Investment o Comfort and features o Owners Entrepreneurs o Purchasing three wheeler, due to absence of an alternative. Return on Investment sensitive (55%) o Per Ton per Km cost o No value for Non-monetary procure considerations o Generally fleet owners/ operators- who hired drivers Acquisition price cumber (13%) o Lacked credit o Could not afford for slightly valuable vehicles. o Prefer three wheelerFinally they identified a group that could not afford any motorized vehicle using bullock & horse carts, cycle rickshaws, manual pull carts. However this group over beat can move up a nd be a TATA ACE customer. found on functional & customer segmentation and also considering potential developing of the market , TATA Motors estimated and targeted 45% of the ACEs customers planning to purchase 3 Wheeler 15% from potential pickup & LCV purchasers and 40% from first time CV purchasers. 4) Explain the Marketing Mix 4Ps Product, Price, Place, Promotion strategy adapted for TATA ACE?Product TATA ACE was designed to address three major customer needs in terms of product ie. , Overloading capability 2 cylinder water cooled engine, based on the proven Indica diesel engine Safety, Comfort and aesthetic considerations Price Though the price apparently was higher at 225,000 as against 100,000-200,000, they addressed the Per ton per km cost. Tata Ace would cost Rs. 6. 70 for delivering one ton of goods over per km as against 7. 88, their nearest contention could offer and segment average of 8. 54. PlaceTata motors decided to roll out in phase beginning with 5 stat es in Western and southerly parts of India where the demand for three wheelers were high. They also benchmarked distribution network against two & three wheeler dealer network. Based on the data, they developed overbold dealership format called 1S (Sales), as against traditional 3S dealership network. Each real Tata Motors 3S Dealer (Sales, Service & Spares) was required to set up 8 to 20 1S centers in their region and staff them with existing employees. Within 3 months ccc new distribution points were set up.Promotion Tata motors used both Print and TV media to position and promote the product. Chota Hathi Symbol of Power, Reliability and Mini product A boy rushing to school, Wife seeing off for the day, Off to course in Tata Ace and Going to School in Tata Ace. Also their set statements viz. , o Indias first Mini truck o Small is Big o Stability & Trust of big truck o Economic liberation o Feel good active jab o Transportation at the last mile 5) What is the current trend of TATA ACE. Who are their competitors and suggest a future steps interpreted for TATA ACE?Present day competitors are Mahindra Gio Mahindra Maxximo Piagio Ape Mini truck Force Trump Minidor. A few steps suggested for TATA ACE to hold out to be the top seller are Continue to innovate and ring in changes to make the vehicle more fuel efficient. Increase engine torque to demonstrate performance in hilly regions Continue to inhibit costs and offer competitive price to customers Increase Go super C initiative with increase in ENG and Electric drive variants Target export market aggressively with both features and better pricing.