Case Evaluation-Tata Ace

By Group-1
B2B-C

AMANDEEP SINGH CHAWLA

AKSHAY MENON
ARNAB MANDAL
FENIL DALAL
INTEKHAB ASLAM
KSHITIZ GOEL
PUNEET MARWAH
SHIKAR JEET
 Cyclical Downturn in the Indian Commercial vehicle segment had created a huge loss of
Rs. 5 Billion in the year 2001

Tata Motors was building a reputation of arrogant, slow to respond to customer needs,

What are the offering unreliable products

parameters, Top management outlining three focus

Cost reduction
Quality improvement

which made areas:

New product introduction

Tata Motors Improving road infrastructure connecting rural towns, vehicle congestion in major

to look for a Indian cities created a requirement of a vehicle that could service the “last mile”

new product? Internal assessment of requirement of a SCV vehicle which is less cyclical in nature

In Market Research: 4 wheelers were viewed as a higher status vehicle, Safety,

Durability, additional payload and Comfort of a 4 wheeler truck was required, Three
wheeler driver was not a desired occupation and opportunity make drivers “Feel
Good”
 India’s functional segment ranges from manual rickshaw,
carts to pick up trucks

What was
Tata Motors Tata Motors decided to launch a product to cater the mid
segment of the above range
approach for
Customer
Further it was segmented into 4 different categories
segmentation Performance sensitive (7% Balanced Perspective ROI sensitive (55% market Acquisition price constant

? market share) (25% market share) share) (13% market share)

Tata Motors estimated that: -

45% will be potential 3-wheelers 15% potential pick up truck
40% first time customers
customers customers
What was
Tata Motors
Distribution: - Customer service: -
approach for Only 5 states were decided for Suvidham initiative was
the initial launch of Ace launched to be cost effective
Distribution Radius of dealership ranged Mobile workshop was launched
between 40-50 kilometres and for last mile service
and customer covered more rural areas

support? 1S model was adopted against

3S model
Rent model was adopted to
minimize risk and cost
Challenges faced by Tata
Motors in the Product
Development phase?
 • Total budget should not increase 2.2 Billion
Budget which 12.9% allocated to TATA Indica.

Allocation
 How to design a
Overloading product that
could withstand
Capability: the strain of
overloading

Customer had
indicated a
Design Engine selection:
preference for a
diesel engine vehicle

Challenge due to the fuel’s

greater efficiency and
lower per gallon cost

To meet the safety

norms, it is easy to
Safety, Comfort and design a vehicle for a
semi forward face but
aesthetic the market research
consideration: indicated that
customer prefers the
flat face vehicle.
Sourcing and
Production
• Ace team aid to increase the outsourcing constant
percentage while lowering the number of vendors.
 The purchase decision
of Ace had to
Marketing incorporate some
emotional
consideration.
 Challenges in
Distribution Distribution and
Consumer finance.
How do you
visualize the OVER THE TIME TATA
MOTORS WILL HAVE
PROPER PRODUCT
TRAINING FOR THE SALES
WORKING IN CLOSE
CONNECT WITH THE DEALER
VARIABLE PAYLOAD OPTION
CAN BE GIVEN AS ALL

way ahead
INCREASE ITS PRESENCE IN EXECUTIVES SO THAT THEY SALES STAFF AS THOSE ARE CUSTOMERS DO NOT HAVE
RURAL MARKETS ARE AWARE OF THE THE EYES AND EARS FOR SAME KIND OF PAYLOAD
UPGRADATION IN VEHICLE TATA MOTORS AND WILL REQUIREMENT
AND COMPETITORS INFORM THE CHANGING

for Tata OFFERINGS CUSTOMER REQUIREMENT

Motors for
The Ace? TIPPER, WATER TANK AND IMPROVING THE LOOK OF AS THE MARKET WILL HAVE PROVIDING EASY FINANCE
ELEVATED PLATFORM TATA ACE AS RURAL MORE COMPETITORS, OPTIONS IN RURAL MARKET
ACCESSORIES SHOULD ALSO CUSTOMERS NOW WANTS COMPANY SHOULD PAY WITH BETTER CONTACT
BE GIVEN. BETTER LOOKING VEHICLES EMPHASIS ON VALUE WITH PCG BANKS
AND THAT IS WHY ADDED SERVICES TO WIN
MAHINDRA JEETO IS DOING CUSTOMERS
GOOD
 Repair time
Assured accident Assistance at the
assurance program
repair time site of breakdown
for new vehicles

Value Added Service onsite for

24x7 call centre
Driver Training
fleet owners Institutes
Services
Extended warranty
and Annual
Fleet Telematics
Maintenance
Contract
Thank you!