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REVVING UP!!!

The Marketing Case Study

To be used only with permission from Tata Motors Ltd.


It is a warm friday afternoon and Mr Jatin Land Rover, a business comprising the two
Lakra was anxious and happy at the same iconic British brands that was acquired in
time while looking at the results of January 2008. In 2004, it acquired the Daewoo
sales figures of its Multi Purpose Vehicle Commercial Vehicles Company, South
(MPV) and Utility Vehicle (UV) Business. Korea's second largest truck maker. The
Tata Motors just launched another product rechristened Tata Daewoo Commercial
in the Indian market named Tata Venture, Vehicles Company has launched several
and Mr. Lakra – Branding and Marketing new products in the Korean market, while
Head for Venture project was uncertain also exporting these products to several
about its future. He was facing a dilemma international markets. Today two-thirds of
and was looking for a solution, which he heavy commercial vehicle exports out of
knew was just round the corner. South Korea are from Tata Daewoo. In
2005, Tata Motors acquired a 21% stake in
About Tata Motors Hispano Carrocera, a reputed Spanish bus
Established in 1945, Tata Motors' presence and coach manufacturer, and subsequently
indeed cuts across the length and breadth the remaining stake in 2009. Hispano's
of India. Over 6 million Tata vehicles ply on presence is being expanded in other
Indian roads, since the first rolled out in markets. In 2006, Tata Motors formed a
1954. The company's manufacturing base in joint venture with the Brazil-based
India is spread across Jamshedpur Marcopolo, a global leader in body-building
(Jharkhand), Pune (Maharashtra), Lucknow for buses and coaches to manufacture
(Uttar Pradesh), Pantnagar (Uttarakhand), fully-built buses and coaches for India and
Sanand (Gujarat) and Dharwad select international markets. In 2006, Tata
(Karnataka). Following a strategic alliance Motors entered into joint venture with
with Fiat in 2005, it has set up an industrial Thonburi Automotive Assembly Plant
joint venture with Fiat Group Automobiles Company of Thailand to manufacture and
at Ranjangaon (Maharashtra) to produce market the company's pickup vehicles in
both Fiat and Tata cars and Fiat Thailand. The new plant of Tata Motors
powertrains. The company is establishing a (Thailand) has begun production of the
new plant at Sanand (Gujarat). The Xenon pickup truck, with the Xenon having
company's dealership, sales, services and been launched in Thailand in 2008.
spare parts network comprises over 3500 Tata Motors is also expanding its
touch points; Tata Motors also distributes international footprint, established through
and markets Fiat branded cars in India. exports since 1961. The company's
Tata Motors, the first company from India's commercial and passenger vehicles are
engineering sector to be listed in the New already being marketed in several
York Stock Exchange (September 2004), countries in Europe, Africa, the Middle
has also emerged as an international East, South East Asia, South Asia and South
automobile company. Through subsidiaries America. It has franchisee/joint venture
and associate companies, Tata Motors has assembly operations in Kenya, Bangladesh,
operations in the UK, South Korea, Ukraine, Russia, Senegal and South Africa.
Thailand and Spain. Among them is Jaguar
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Tata Motors garnered consolidated This segment is currently targeted with the
revenues of Rs. 92,519 crores (USD 20 following type of vehicles:
Billion) in 2009-2010. The company showed
robust growth in both the business units- • UV
Passenger Car Business Unit (PCBU) and
Commercial Vehicle Business Unit (CVBU) • Hatch Backs
(Annexure-I)
• Vans
Stable economic environment, robust IIP,
liquidity, availability of financing were the While these three segments of vehicles
main drivers of growth in the domestic CV have been instrumental in fulfilling certain
market. Growth in PCBU was particularly
driven by new launches and relatively needs, there was still no vehicle in the
young Product portfolio (Annexure-II) market which could offer advantages of all
3 segments. (Annexure III)

Tata Venture On the basis of the market research and


Tata Motors New Product Initiation
The Tata Venture was borne out of Tata function’s support, Tata Venture was
Motors’ rigorous market research team designed to cater to the aforementioned
Indian Family. (Annexure IV)

Tata Venture Product Features

Tata Venture is a multi-purpose vehicle


(MPV) with the footprint and
maneuverability of a hatchback car, but
the interior space of a utility vehicle.

which highlighted that there was an


opportunity to capture a substantial The less than 4 metre long Tata Venture
segment of typical Middle Class Indian can comfortably accommodate eight
Family. This segment is profiled as follows: passengers in three front facing rows and
has ample luggage space. A glasshouse
• Has a family of >5 members
effect with plug-in windows for second row
• Has a need of driving a car in both passengers contributes to the distinctive
city and rough-road conditions exterior design while the contemporary
interiors sport a two-tone beige and black
• Is looking for a vehicle which can theme. Comfort and convenience of both
be used for both personal as well as driver and passengers have been
business usage adequately addressed with dual HVAC,
power steering, power windows, reverse
• Has a substantial amount of
parking aid, keyless entry with engine
everyday driving
immobiliser and rear wipers.
• Wants a comfortable, spacious and
fuel efficient low cost option A semi monocoque construction provides

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the required rigidity while the robust shell emerge, as he listed down his thoughts on
has energy absorbing crumple zones built a piece of paper.
in. A collapsible steering and side impact
beams protect occupants in an exigency. 1. What should be the marketing
The Tata Venture meets crash safety norms strategy for the next one year for
applicable in the domestic market. Venture? Should the vehicle be
The Tata Venture is powered by a 1.4 Litre launched on a pan India level or
turbo diesel engine, delivering 71 PS state by state?
power, with best in class fuel efficiency 2. What is the potential of the MPV
among diesel MPVs in the country. The segment and how is competition
mileage as certified by ARAI is 15.42 kmpl. shaping up?

The Tata Venture is available in 5, 7 and 8- 3. What are the different


seater options in 3 row front facing trade/customer schemes that can
configuration and will be available in a be offered with Venture to make it
range of 5 colors and 3 trim levels. a successful product?
(Annexure V)
4. Is “Bade dil Wala” capturing the
Price, Place and Promotion essence of Tata Venture or do we
need a facelift?
The Tata Venture is priced in the range of
Rs. 4.05 lakhs and Rs. 5.07 lakhs (ex-
showroom Jaipur).

While the product Venture seems almost


too perfect to be true, Tata Motors
conducted initial tests and pilot studies
and launched the vehicle on 6th Jan 2011.
It was decided that the Tata Venture would
be distributed through both CVBU and
PCBU dealerships to utilize the wide reach
of Tata dealership network.

Venture was launched in Rajasthan and


Maharashtra in the first phase with the
tagline “Bade dil wala”. The product was
launched in three variants (Annexure VI)

The dilemma

As Jatin pondered over the January market


shares of MPV(Annexure VII),A2
segment(Annexure VIII) and UV (Annexure
IX) he felt unsure about Venture’s future.
Certain questions started beginning to
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ANNEXURE I

ANNEXURE II

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ANNEXURE III

ANNEXURE IV

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ANNEXURE V

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ANNEXURE VI

ANNEXURE VII

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ANNEXURE VIII
MODEL/MAKE WISE A2 SEGMENT SALES AND SHARES

% Growth Over Sales Average Growth over Market Share Market Share Market Share 09-
Brand Jan-11 Sales 09-10
Apr'10-Jan'11 per month Apr'09-Jan'10 Apr'10-Jan'11 Apr'09-Jan'10 10
Jan-10 Dec-10
A2 Segment
Alto 33,118 57.2% 20.2% 275,760 27,576 39.3% 23.46% 20.82% 20.83% 235,212
Wagon R 14,186 11.0% 8.2% 134,003 13,400 10.8% 11.40% 12.83% 12.83% 144,898
Swift 11,353 -1.8% 5.2% 117,812 11,781 28.6% 10.02% 10.28% 10.29% 116,174
Ritz 6,046 -2.1% 22.9% 56,808 5,681 9.9% 4.83% 5.59% 5.59% 63,096
Zen / Zen Estilo 3,652 -8.9% 17.8% 43,316 4,332 43.5% 3.69% 3.68% 3.69% 41,624
A Star 4,124 39.9% 19.1% 30,303 3,030 18.5% 2.58% 2.85% 2.85% 32,186
Suzuki Total 72,479 23.8% 14.8% 658,002 65,800 27.0% 55.99% 56.05% 56.08% 633,190
I-10 16,694 17.2% 35.4% 132,540 13,254 10.3% 11.28% 13.21% 13.22% 149,242
Santro 4,648 -42.6% -1.8% 66,875 6,688 -2.8% 5.69% 7.64% 7.64% 86,272
I-20 5,773 42.7% 21.8% 64,156 6,416 96.1% 5.46% 3.73% 3.73% 42,128
Getz - -100.0% - 62 6 -98.9% 0.01% 0.57% 0.57% 6,467
Hyundai Total 27,115 0.6% 20.9% 263,633 26,363 16.1% 22.43% 25.15% 25.16% 284,109
Indica Vista 7,666 -7.4% 75.3% 49,920 4,992 -3.3% 4.25% 5.88% 5.88% 66,383
Indica 2,925 -7.8% -62.2% 30,950 3,095 -22.0% 2.63% 4.25% 4.25% 48,039
TATA Total 10,591 -7.5% -3.5% 80,870 8,087 -11.4% 6.88% 10.13% 10.13% 114,422
Ford Figo 8,616 - 191.4% 61,307 6,131 - 5.22% 0.65% 0.65% 7,316
Ford Fusion - - - - 0 -100.0% 0.00% 0.05% 0.05% 517
Ford Total 8,616 - 191.4% 61,307 6,131 11758.2% 5.22% 0.69% 0.69% 7,833
CHevy Spark 3,267 -5.2% 3.6% 28,315 2,832 -20.5% 2.41% 3.74% 3.74% 42,240
Beat 3,338 18.2% 1.2% 27,847 2,785 655.9% 2.37% 1.12% 1.12% 12,614
Aveo u-Va 331 -22.7% 7.5% 3,153 315 -40.3% 0.27% 0.54% 0.54% 6,138
GM Total 6,936 3.5% 2.7% 59,315 5,932 33.0% 5.05% 5.40% 5.40% 60,992
Grande Punto 1,203 -4.1% 1027.4% 9,713 971 -11.1% 0.83% 1.18% 1.18% 13,281
Palio 24 1100.0% 0.0% 175 18 -48.5% 0.01% 0.03% 0.03% 342
F500 - - -100.0% 1 0 -95.8% 0.00% 0.00% 0.00% 29
Uno - - - - 0 - 0.00% 0.00% 0.00% -
Fiat Total 1,227 -2.3% 739.5% 9,889 989 -12.4% 0.84% 1.21% 1.21% 13,652
Nissan Micra 1,784 - -0.5% 8,235 824 - 0.70% 0.00% 0.00% -
Skoda Fabia 1,460 83.9% -47.7% 7,982 798 57.8% 0.68% 0.58% 0.58% 6,501
Honda Jazz 579 18.2% 22.7% 4,310 431 -36.0% 0.37% 0.67% 0.67% 7,541
VW Polo 3,023 - -16.2% 21,720 2,172 - 1.85% 0.06% 0.06% 698
San Storm 20 0.0% 0.0% 200 20 0.0% 0.02% 0.02% 0.02% 240
Total 133,830 26.0% 16.3% 1,175,463 117,546 29.9% 100.0% 100.0% 100.0% 1,129,178

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ANNEXURE IX
% Growth Over Sales Average Growth over Market Market Market Sales 09-
Brand Jan-11 Share Share Share 09-
Jan-10 Dec-10 Apr'10-Jan'11 per month Apr'09-Jan'10 10
Apr'10- Apr'09- 10
Bolero 8,463 22.4% -17.1% 67,729 6,773 17.2% 25.75% 26.44% 25.90% 70,511
Scorpio 4,300 21.2% -17.1% 35,319 3,532 15.9% 13.43% 13.93% 13.37% 36,407
Xylo 2,733 17.1% -19.9% 27,124 2,712 19.1% 10.31% 10.41% 10.28% 27,978
Commander / MarsIall
388 -60.1% -82.1% 4,814 481 -29.5% 1.83% 3.12% 3.21% 8,752
Jeeps 200 -69.2% -27.4% 3,576 358 -36.4% 1.36% 2.57% 2.54% 6,906
Getaway 4 -20.0% -72.0% 52 5 -3.7% 0.02% 0.02% 0.02% 64
M&M Total 16,088 11.5% -22.2% 138,614 13,861 12.2% 52.70% 56.51% 55.32% 150,618
Innova 5,284 27.8% -12.3% 43,655 4,366 13.4% 16.60% 17.61% 17.37% 47,294
Fortuner 1,103 22.1% -6.8% 10,025 1,003 138.0% 3.81% 1.93% 2.31% 6,280
Prado 3 200.0% 85.7% 157 16 406.5% 0.06% 0.01% 0.02% 63
LC 200 1 -50.0% -60.0% 60 6 9.1% 0.02% 0.03% 0.02% 66
Toyota Total 6,391 26.8% -11.2% 53,897 5,390 25.9% 20.49% 19.58% 19.72% 53,703
Sumo 1,691 22.2% 9.4% 14,073 1,407 5.0% 5.35% 6.13% 6.34% 17,262
Safari 1,776 45.9% 19.1% 12,190 1,219 54.2% 4.63% 3.61% 3.80% 10,352
Sumo Grande 496 -46.8% 25.1% 5,082 508 20.7% 1.93% 1.93% 2.13% 5,787
Aria 321 - -13.5% 1,233 123 - 0.47% 0.00% 0.00% 5
Xenon 20 300.0% 85.7% 96 10 -17.9% 0.04% 0.05% 0.05% 125
TATA Total 4,304 21.7% 12.6% 32,674 3,267 27.5% 12.42% 11.72% 12.31% 33,531
Tavera 1,691 11.8% -12.9% 15,382 1,538 26.8% 5.85% 4.64% 5.65% 15,380
Captiva 91 26.4% -16.7% 1,379 138 49.2% 0.52% 0.35% 0.41% 1,124
Forester - - - - 0 - 0.00% 0.00% 0.00% -
GM Total 1,782 12.5% -13.1% 16,761 1,676 28.4% 6.37% 5.00% 6.06% 16,504
Force Trax (exclu Pickups)
937 39.2% -35.6% 6,779 678 38.7% 2.58% 2.24% 2.33% 6,349
Gypsy 191 41.5% -26.1% 4,813 481 65.9% 1.83% 1.33% 1.41% 3,841
Grand Vitara 1 - -33.3% 77 8 11.6% 0.03% 0.03% 0.03% 91
Suzuki Total 192 42.2% -26.3% 4,890 489 64.6% 1.86% 1.36% 1.44% 3,932
Ford Endeavour 351 0.0% 86.0% 2,475 248 34.9% 0.94% 0.84% 0.95% 2,598
Outlander 65 58.5% 19.3% 1,059 106 250.7% 0.40% 0.14% 0.15% 412
Pajero 124 96.8% -25.2% 1,001 100 5.7% 0.38% 0.43% 0.44% 1,204
Montero 15 114.3% -50.0% 57 6 26.7% 0.02% 0.02% 0.02% 56
Trekkar - - - - 0 - 0.00% 0.00% 0.00% -
Mitsubishi Total 204 83.8% -13.0% 2,117 212 63.6% 0.80% 0.59% 0.61% 1,672
Audi Q7 50 -13.8% 50.0% 459 46 13.9% 0.17% 0.18% 0.18% 496
Audi Q5 18 -67.9% 213.3% 427 43 90.6% 0.16% 0.10% 0.11% 297
Audi Total 68 -40.4% 88.9% 886 89 41.3% 0.34% 0.29% 0.29% 793
Skoda Yeti 344 - 64.3% 750 75 - 0.29% 0.00% 0.00% -
ICML Rhino 65 -16.7% 25.0% 649 65 -28.4% 0.25% 0.41% 0.37% 1,014
M-CLASS 125 - -69.1% 248 25 - 0.09% 0.00% 0.00% -
GL-CLASS 20 - -4.8% 213 21 - 0.08% 0.00% 0.00% 12
R-CLASS 20 - -58.3% 53 5 - 0.02% 0.00% 0.00% -
ML-CLASS 1 - 200.0% 35 4 600.0% 0.01% 0.00% 0.00% 5
Daimler Chrysler Total
166 - -49.6% 549 55 10880.0% 0.21% 0.00% 0.01% 17
Honda CRV 38 -50.0% 34.6% 435 44 55.9% 0.17% 0.13% 0.17% 474
Nissan X-Trail 49 0.0% 3.2% 412 41 235.0% 0.16% 0.06% 0.08% 212
Rangerover Sport 20 0.0% 9.1% 141 14 291.7% 0.05% 0.01% 0.02% 45
Rangerover 11 57.1% -29.4% 103 10 255.2% 0.04% 0.01% 0.02% 52
Freelander 6 -14.3% 80.0% 92 9 178.8% 0.03% 0.01% 0.02% 61
Discovery 3 50.0% -11.1% 44 4 633.3% 0.02% 0.00% 0.01% 15
Landrover Total 40 11.1% -2.4% 380 38 265.4% 0.14% 0.05% 0.06% 173
X5 10 400.0% 84.6% 186 19 -24.1% 0.07% 0.09% 0.10% 266
X6 10 42.9% 45.5% 142 14 57.8% 0.05% 0.03% 0.04% 115
X3 5 -28.6% -50.0% 27 3 -61.4% 0.01% 0.03% 0.03% 76
X1 - - - 17 2 - 0.01% 0.00% 0.00% -
BMW Total 25 56.3% 110.7% 372 37 -8.1% 0.14% 0.19% 0.17% 457
Santa Fe 5 - -61.8% 220 22 - 0.08% 0.00% 0.00% -
Tucson - - - - 0 -100.0% 0.00% 0.01% 0.01% 14
Hyundai Total 5 - -61.8% 220 22 - 0.08% 0.01% 0.01% 14
Porche Cayenne 34 580.0% -66.7% 103 10 71.7% 0.04% 0.02% 0.03% 72
Volvo XC-90 35 400.0% 0.0% 73 7 97.3% 0.03% 0.01% 0.02% 56
VW Touareg - -100.0% - 3 0 -94.2% 0.00% 0.02% 0.03% 91
ANNEXURE VII (CONT.)
Premier Rio - - - - - - 0.00% 0.00% 0.00% -
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