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MIND ROVERS

Season - 6
TATA HEXA

#WhateverItTakes

Presented By

Aman
Neha Oswal
Sushil Parashar
Introduction Market Scenario Marketing Plan Opportunities Recommendation
Indian household income & car sales distribution1

Year : 2008 Year : 2030 Key Market Trends for


purchasing SUVs:

Demand for Recreation & Motorsport

Use of SUVs in Remote and Rugged


areas
Growing Urbanization & Personal
mobility needs
Mushrooming Strength of Middle class
Segment

Improving Road Infrastructure


Higher Seating Capacity Attractive styling Versatile Use Creative Designs
SUV Characteristics Consumer Demand Increase in Disposable Income /
Increase in status recognition
Larger load capacity Higher ground clearance High Performance Engine Fuel efficient

Safety features Technology Savvy features


Tata Safari – 1st SUV series to be 2011 2020
1998 2002 2015
designed and manufactured Launch of SUV sales to reach
2012
entirely in India 2000 Mahindra XUV -500 2016 more than 1 lac units
8.89- 14.5 Launch of
Launch of Launch of per annum
12-15Lacs Lacs Hyundai Creta
Launch of Renault Duster 7-9 Lac Maruti Suzuki – Vitara Brezza
Launch of
Mahindra Bolero Mahindra Scorpio 10.5-18 8.5-13 12-14 Lacs 12-16 Lac Launch of Tata Hexa
7-8 Lacs Lacs Lacs 14-21 Lac Launch of Toyota Innova Crysta
SUV Brief History of India
Source : (1)Global Insight 2009, Booz & Company Analysis
Introduction Market Scenario Marketing Plan Opportunities Recommendatio
ns
Introduction
Case Description Sales of SUV
Tata is represented in Hexa is 1st SUV of 10000
9369
fleet Cars & is known Tata Motors in
8000
for Value for Money premium segment 7252
6589 6323 6455
6000 6054
5643 5963
More Power, Torque, Premium 5013
Consumer focus 4000
Wider wheelbase ,better shifting to Automatic 3343
2969
safety, High ground Transmission 2144 2190
2663
2093 1598 2282
2697
2000 1999 1715
clearance, 1246 1213 1564 1245
1026 940 1068 1041
727
0 550
Reasons : Roads Condition,
Advantageous Automatic Jan'17 Feb'17 Mar'17 Apr'17 May'17 jun'17 Jul'17 Aug'17 Sep'17 Oct'17
Longer routes, Comfort
Features Transmission
HEXA Journey Hexa XUV 500 Innova

10 JBL speakers, Launch Date Sub-Segment Contribution to SUV (%) Segment Growth YOY (%)
App installation, January 18,2016 Tata’s Target : Clutch free Multi
8 color, Rear feature Year Compact Midsize Utility Premium Multi
Year Compact Midsize Premium
parking Sensor, Utility
FY'12 0 34 59 8
Uphill drive, FY'14 0 79 23 22
FY'13 0 43 51 7
LED Tall Lamps Late 30’s in age, Tier – I FY'15 16 -2 -8 10
FY'14 12 42 39 6
Cities population, FY'16 62 37 -19 -21
Launch Planning entrepreneur, Large FY'15 15 42 37 7
Consumers FY'17 75 9 -14 23
& Execution families, Adventurous folks FY'16 20 50 26 4
FY’18
FY'17 4 16 40 40 34 13 230 75
(till date)
Pre Launch : Launch : Post Launch Sustenance : FY’18
 Hexa Influencer Campaign 42 38 15 5
 Bookings Open at ATL  XPD 2470 Women Drive (till date)
 Creation of Hexa Experience Centre Campaign  Continuing Hexa Drive Number of Players
 Hexa Carpool Karaoke with Rock on 2  Spirit of Hexa ATL experience
 Hexa POW-Bandhi Yudh ke Campaign  Automatic August Month
 Partnership  Hexa Airplane Activation
 Hexa CEO Cricket Tournament
 Hexa Starbucks Mall Activation
Introduction Market Scenario Marketing Plan Opportunities Recommendatio
ns
SUV-ival Of the fittest(Market)
Massive Growth In PV sales Reasons for the tremendous growth in Automobile Sector

• PV Sales of 3,046,727 in FY • Emerging Indian economy


16-17 • Increase in disposable income
• Growth of 9.23% in PV sales • Easier financial options
• Sharp growth in SUV sales.
Sales of 761,997 recorded
• Change in consumer lifestyle
• Growth of almost 30% • Aspiration of middle class
• SUV’s are about to touch 1 • Change in consumer lifestyle
million mark.
• Massive jump in % sales
from 2011 to 2017

Share in production of passenger vehicles Market Leader In Utility Vehicles Market Leader In Passenger Vehicles
1.2
6.36 1.2
9.3

13.6
21.03
21.2
36.4 52.8
72.61 14.7

Passenger Cars Utility Vehicles Vans Mahindra Maruti Suzuki Toyota Hyundai Maruti Suzuki Hyundai Honda Tata

Source-Society of Indian Automobile Manufacturer


Introduction Market Scenario Marketing Plan Opportunities Recommendatio
ns
SUV-ival Of the fittest(Competitors)
Mahindra XUV 500 Toyota Innova Crysta

• Toyota has been the global market


• Mahindra has been one of the strongest
leader in automobile industry
brands in the Indian automobile market
• Toyota has previously launched Innova
• Excellent branding and advertising, and
and Fortuner which have been
low after sales service cost
runaway success in Indian markets
• Sturdy SUV’s good for Indian roads and
• Toyota Innova Crysta has been
off-road terrain
aggressively marketed which has
made it the top selling SUV among its
competitors.
• Mahindra is an established name in SUV
segment
• Toyota Innova Crysta is packed with
• It occupies 36% of the market share in
the features of MPV along with
SUV’s
SUV which makes it a
• Mahindra XUV500 is a premium SUV
differentiating car in its segment
priced between Mahindra Scorpio and
• The car is suitable for Indian roads
Toyota Fortuner
as well as rugged terrain.
• Unlike Tata Motors, Mahindra has vast
• The after sales service and
experience is UVs.
availability of service centres in
Tier I and Tier II cities is excellent

Source-Society of Indian Automobile Manufacturer


Introduction Market Scenario Marketing Plan Opportunities Recommendations

Primary Survey of 57 individuals :


Introduction Market Scenario Marketing Plan Opportunities Recommendations

Primary Survey of 57 individuals :

In case, if you are purchasing SUV, how will you rate the features given below in range of 1 to 5 ( 1 : least important; 2 :
less important ; 3 : important; 4 : more important ; 5 : most important)

1) Colour - Very Important 8)Type Of Fuel - Very Important

2) Spacious Capacity - Important 9)Status - Very Important

3) Blindspot Detection System – Important 10)Sporting Appeal Important

4) Company - Important 11)Income - Very Important

5) Purpose - Very Important

6) Power Folding - Less Important

7) Remote Starter - Important


Introduction Market Scenario Marketing Plan Opportunities Recommendatio
ns
Tata Ad Campaign and stores for Tier- II and Tier-III Cities Leverage about Hexa being the closest Tata Motors that has Promotions during festival :
adopting technology from its first-world sibling Jaguar Land Fashion shows at Malls, Ad campaigns at Main Shopping area
Population1 (in million) Rover. of Cities, To Increase Ads on E-Commerce shopping websites.
Innova Crysta commands a price premium of over Rs 2 lakh. 20,000 Hexa /Year sales plan :
However, Innova Crysta has engine longevity reputation. First Year Sales after entering into Tier-II & Tier-III cities :
Hence, Tata needs to ensure about longevity engine to Currently. Average number of Hexas sold per year : 13500
customers by making its publicity via digital marketing, Ads, To target 100 tier- II & Tier-III cities with sales
Word of Mouth.
of at least 3/ month, Average number of Hexas
Create a Premium Segment platform : sold per year : 3600
 Hexa is the first premium SUV of Tata. Every year Tata is Due to promotions during festivals,
launching 2 new car models in Country. Tata can form a Sales per year : 300
premium segment platform for Upper Variants.
 After successful launch of Nexa – A premium car portfolio Total sales per year (units) : 17400
of Maruti Suzuki has helped them to increase their revenue
by 17% CAGR for period – 2015-17 and market share was Second Year Sales after entering into Tier-II & Tier-III cities :
increased by 6%. Increase in SUV segment YOY : 18 % CAGR
 This will help Tata to build segment for its upper Variant Increase in SUV premium segment : 4 % CAGR
 Tata Hexa’s maximum sales are from Tier-I cities; However , segment. Assuming 9 market players for premium SUV,
Tier II & Tier III cities are Urbanizing at faster pace. Hence, Tata  This attempt by the company will change itself from the For second year Average number of Hexas
‘not-so-premium automaker’ to ‘premium car maker’.
to launcg Ad Campaign and Stores at these cities. sold per year : 14150
 All the nearby town car owners will find comfortable and easy Tie – up with top financial services : To target new 100 tier- II & Tier-III cities with sales
to service their cars at nearby showroom. Hence, this can grab of at least 3/ month, Average number of Hexas
 For Tier-II & Tier-III cities Customer, Tata can tie up with
nearby town and villages market share. Financial services for providing 0 EMI services. sold per year : 3600*2
 “GoToCustomer” Campaign can be launched in Tier II and Tier Due to promotions during festivals,
III cities to create awareness about Hexa. This Hexa trip will Annual Maintenance Contract / Periodic Service : Sales per year : 350
increase tier-II & tier III customers engagement. • The Hexa comes with a three year/1 lakh kilometer warranty Due to mentioned other Marketing options as
 These brand tours to include all the elements of a showroom as same as Mahindra XUV 500 / Innova Crystal given, Sales per year : 600
like audio-visuals and brandings, then the added incentive of • Tata lags in Services provided. This can be improved by Decrease in purchase due to presence of
experiencing the true capabilities of the vehicles on off-roading adopting feed back system after servicing their vehicles. competitors / New entry per year : (840)
zones. • If these area is worked, then Market share can increase. Total sales per year (units) : 21460
Source : (!) Indian Urbanization Econometric Model,Census2001 (3) http://www.thehindu.com/business/Industry/nexa-how-maruti-hit-paydirt/article19704269.ece-
(2)https://www.bloombergquint.com/opinion/2017/03/14/tata-hexa-a-step-ahead-for-tata-motors-still-far-behind-rivals
Introduction Market Scenario Marketing Plan Opportunities Recommendations

Social Media
High End Sales and Service Experience • Bombardment of content via social media can
passively built up a strong brand image
Deploying specialised manpower recruited from • Facebook and Twitter can be used for
outside the auto industry from hospitality and disseminating updates on the latest happenings
retail sector. Train them with technical and soft related to TATA HEXA
selling skills. • Showcasing TATA Hexa in major TV series and
films where the actors drives the car. The image
of the SUV should be aligned with the image of
the actor
Tier II Cities
Hexa Prime Member Club
• Surprise events at public places for people to showcase
Tata Hexa Owners are to be assigned their the car. For examples events can be held at shopping
Relationship managers for main point of contact malls, markets, near corporate offices etc.
Invitation to popular auto related shows, car spa
• Provide better financing options to customers
offers, monsoon spa offers
alongwith better EMI options
races at Budh International Circuit- The owners
car participate amongst each other

Moving to tier II cities


Tier II cities can be a potential market that can be
tapped by Tata Hexa. With growth in disposable
income, the standard of living in tier II cities is fast
increasing .

Customer Engagement
Thank You

TATA HEXA

#WhateverItTakes