C6 BM Presentation Tata Ace

8/13/2019 C6 BM Presentation Tata Ace

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Group C6Binit Kumar Jha 11072

Deepak Semwal 11074Gunda Rajyalakshmi 11079Harish Ragavendran 11080

Jindal Mayank 11083


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Launch :- Tata Motors launched the Ace truckin May 2005 for just above Rs 2 lakhs.Production Facilities :- Pantanagar plant of TataMotors.Innovative Features:- The product hadinnovative features which propelled the sales

to 100000 units in 20 months of its launch

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Incremental Extensions :- Variants of TATAAce running on CNG fuel and with moreenvironmental friendly engines have been

launched. Riding on the success of TATA Ace,Tata Motors has developed TATA Super Aceand TATA Ace Zip

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Mobility: A truck was needed in the market whichprovided the ease of mobility and transportation of essentialcommodities for Short distances .The Policies of Government .Discouraging the use of old

polluting and uneconomical Vehicles. Supreme Court banon overloading , Leading to incremental volumes in the pastyears .Indian Transport Environment: The share of road transportin India is around 65%.

Barriers :Traffic and congested roads in cities createsproblems for heavy trucks and other heavy transportvehicles to operate easily. Also poor rural roads andconnectivity adds to the chaos for transportation by Heavyvehicle s and trucks.

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There was an unmet need in the market in the form ofa 4 wheeler transport vehicle which could be used todeliver the commodities for small and mediumdistances . The TATAs had the following advantage todevelop the product Value NET MODEL

Customers :- Balanced perspective & Return onInvestment sensitive customers would buy the productSuppliers: Tata could utilize its existing suppler baseCompetitors: There was no competition in theidentified product segmentComplementors: The government road networkimprovement schemes and high GDP growth rate ofthe country.

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TataACE

Market

Penetration

Product

Development

Product

Diversification

Market

Development

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TATA ACE was developed with features such as 700 cc engine which delivers a power of 16 HP @ 3200

rpm Torque of 3.8 m kg @ 2000rpm

Soft Cushion seats & Back Support Lowest Loading height of 675 mm, Heavy loads can be

conveniently placed in load Body

Customers Of Tata ACE The customers of Tata Ace included Mineral Water

suppliers, Consumer Durables Suppliers to homes ,Vegetable Vendors, Textile Bales suppliers , Milkvendors, Agri-Commodities transportation and manyother products.

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versataility

savings

style

comfort

safety

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Product-quality leadership:- Perceived Quality higher than 3-wheeler. Priced just beyond the max price of 3-wheeler atrs.200000

A premium on price of 3- wheeler

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Hub and spoke model

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Target Audience

fleetowners

Truckowners

3-wheelerowners

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Communication objective To communicate the benefit offered by the product. To develop a positive brand attitude To convert positive brand attitude into sales.

Designing the communication:-

Message strategy The core message has to be created around new opportunity that ace would

provide to its customers. The dissatisfied 3- wheeler owners to be targeted with the message of feelinggood about your product Use of local language for communication.

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Creative strategyInformal appeal of the product i.e. the load, capacity. Emotional benefits to be shown such as better socialstatus to owners.

MessageTata- century of trust.

Tata Ace- wise decision Tata Ace- pride of India.

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Market Potential of Targeted Segments Customers looking for Who? Market Potential

Return On Investment Customers buying vehicles forcommercial purposes. High. Vehicles used for intra-citytransportation of goods.

Price, Fuel Efficiency Customers whose usage will be inrange of 100-300 Kms. Moderate. Vehicles used for inter-citytransportation of goods.

Safety, Durability

Customers who need to vehicle fortransportation of sensitive goods &who will be travelling through badroads.

Moderate. Vehicles used for carryingsensitive goods & used on bad roads.

Additional Payload Customers who will looking forvehicles having capacity more than3 wheelers.

High. Vehicles who need to carry extrapayload than 3 Wheelers. Market forthis type of users is high.

People looking for 3 Wheelers Customers who are looking for 3Wheelers for commercial purposes.

High. People looking for 3 Wheelers canbe targeted with aim of giving themextra facilities with little extra charge incomparison to 3 Wheelers.

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Strengths

Market leader in the Indian commercial vehiclesegment with a market share of 60.1%Strong Brand nameGreat engineering and design in producing

breakthrough productsIt is a demand-driven and customer orientedcompany, taking care of customers preferences andtastesLong list of product portfolio: Cars, trucks, vansand coachesGlobally Present in 129 countries across 6continentsMore than 6600 sales and touch points

Strong revenues for the Company-34.57$bn 19


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WeaknessesLooked down by the pessimists as the cheapestcar producers

Despite buying the Jaguar and Land Roverbrands TATA has not got its complete foothold in the luxury segment

Safety issues faced by the customers

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OpportunitiesProjects like JNURM are expected to boost theurban infrastructureExpansion to Global Markets

The Indian commercial vehicle market isexpected to reach 1.6 million units in next fiveyears(Ernst & Young)Proposed 51% in FDI Retail is expected to

improve the supply chain system creatingdemand for commercial vehicles.Boosting demand for Jaguar and Land Roversaes in China and Russia

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OpportunitiesIndias passenger -car sales is expected to increase11 percent to 13 percent in the next 12-month

periodRising demand for the light commercial Themarket volume of LCVs increased from 48.9 percent in 2006 to 55.4 per cent in 2010, and is

expected to reach 64.6 per cent by 2016.Implementation of a regulation by the Governmentto limit the life of CVs on roads, if brought intoplace, will further increase CV sales

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ThreatsTrending rise in diesel fuel costs which willhurt Tatas line of products

Steadily rising interest ratesDependency of LCV sales on monsoon successDecline in the demand for the commercial

vehicles due to the suspension of miningactivities in many parts of the country

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Particulars TATA ACE ASHOKLEYLANDDOST

MAHINDRAMAXXIMO

1. Year of Launch May, 2005 October, 2011 January, 2010

2. Capacity 1 Ton 1.25 Ton 0.8 Ton3. Pricing TATA super: 3.72

Lakh3.79 Lakh 3.7 Lakh

4. Variants Tata Ace, TataSuper Ace, Tata

Ace Ex

Dost LE, LS andLX

But, very littledifferences in

specifications.

Maxximo CNG,3.99 Lakh

5. Tank Capacity 38 Litres 40 Litres 33 Litres6. Market Share Over 60% 21% in the seven

markets launched29%

7. Positioning Small is Big:

Small in Size. Bigin Technology

Japanese Quality

at Indian Cost

The power of

Technology 25


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We have relied on qualitative forecastingmethods particularly executive judgment .Quantitative methods are not so useful while

calculating the sales forecast because sales isheavily dependent on overall business growthrate and Competition.Opinions of various experts and industryinsiders have been referred to including Tatamotors annual statements.

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Year Sales PercentageGrowth

2005-06 30,0002006-07 70,000 133%2007-08 89,000 27%

2008-09 81,000 -9%2009-10 110,032 35%


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Year Growth In LCVsegment of TataMotors

SalesFigure

2010-11 35% 148,000 Units

2011-12 17.51% 174,000 Units


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Due to increase in competition in LCV segmentand overall slump in growth rate, theCompany states its growth estimate atapproximately 18% for next 2-3 years

Year SalesEstimate

2012-13 205,320 Units

2013-14 242,200 Units

2014-15 285,880 Units


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C6 BM Presentation Tata Ace

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