“SMALL”

IS “BIG”.

TATA ACE

INTRODUCTION

•Launched In May, 2005•Inspired from highly successful Japanese mini truck kei truck(introduced in 1977) and Korean Kia Bonga(1980)•Tata ace is powered by a small and efficient 16bhp 700cc diesel engine.•Suitable for both rural and urban areas.•Tata ace set the trend as countries firstHigh performance, low maintenanceSafe and reliable mini-truckSporty car-like features to ensure comfort in riding and handling.

4 P’s

Being 4 wheeler; gives higher-status Safer than 3-wheeler and comfortable. Capacity of carry the load up to 1500 kegs. Cost of Rs.6.70 to transport 1 ton a distance of 1 km. 3-wheelers were not allowed on express highways additional advantages of being 4-wheeler. Easily travel in rural areas. Innovative 2-cylinder diesel engine which can givespeed up to 100kms/hr.

Product

Core benefit – Light commercial Vehicle.

Basic product- 4 Wheeler.

Expected product - Safer, Powerful and Convenience with low maintenance.

Augmented product- High Status and 30%extra Overload.

Potential product – run on LPG, CNG and with A.C Cabin.

Levels of Product

•The Company targeted Customer who were willing to pay higher price for extra value provided to them and also Vehicle is designed to reduced the operating cost.

•The number of components used was kept low, the assembly line was made short and around 80% of TATA ACE component were outsourced.

Tata ACE was a winning concept with 4 Wheeler Functionality and Price close to that of 3 Wheelers.

Price

Availability of the product at right place and at right time.

City, Small Town, Villages and Urban belts in India.

Distribution Network- Hub and SPOKE Model.

Existing dealership acted as Hub and Set up 15 dealership.

Each dealer Set-up 15-20 Ace Store.

“Only Sales” Stores Compared to traditional “Sales and Service ”

A Sales Outlet every 40-50 Kilometers all over India.

Place

Communication Channels:

Print Media- The “Chota Hathi” Advertisement.

Public Relations – Generated a lot of Positive Press in the Launch Period and also by gaining International Awards.

Sales Promotions – An Initial discount of Rs 4000 was given on Ace. Financial Services provided to further increase the purchase incentives.

Television – 1st LCV Brand used extensive ad on T.V. Ads Communicating new opportunities that Ace Present.

Promotion

Segmentation

Geographic segmentation:1.Rural areas-Rural villages with population of over 10000.2.Urban areas-Semi-urban areas, small towns with population between 20000-50000.

Demographic segmentation: Age- 20 to 34, 35 to 49 years. Gender-male. SEC- R1, R2 and R3. Occupation-

• Truck owners• First time LCV purchasers• Farmers• Small trade

Psychographic segmentation: Science of using psychology and demographics to better understand consumers.Byers are classified on the basis of personality traits, values and lifestyle.

Behavioral segmentation:Benefits- 4wheeler benefits i.e. comfort,style,safety.User status-1st time 4 wheeler users and existing 3-wheeler users etc.

Targeting

Selective specialization:

M1 M2 M3

P1

P2

P3

M1: New 3-wheeler planners (45%).

M2:Potentional pick-up & LCV purchasers(15%).

M3:First time LCV purchasers(40%).

POSITIONING

Positioning statements:

India's first mini-truck.

“Small is Big”.

Stability & trust of big truck.

Economic liberation.

Feel good about job(Satisfaction).

Transportation at the Last mile.

POP Tata ace Piaggio (ape) M&M (maxximo)

Segmentation Segmentation for Rural & semi-urban areas

Segmentation for Rural & semi-urban areas

Segmentation for Rural & semi-urban areas

Features Provide comfort, safety, low cost

Provide comfort, safety, minimum cost

Provide comfort, safety, affordable cost

Fuel Type Diesel Diesel Diesel

Point of Parity

POD Tata ace Piaggio (ape) M&M (maximo)

Types LCV 4-wheeler 3-wheeler LCV 4-wheeler

Price Close to 2 to 2.8 lakh

Close to 1.9 lakh

Close to 3 to 3.8 lakh

Power 16 HP@ 3200 RPM

12.67KW @3600 RPM

18.4KW @3600 RPM

Fuel Tank Capacity

28 Lt. 30 Lt. 33 Lt.

Launch All Over India All Over India Region Wise

Point of Difference

PRODUCT LIFE CYCLE

TATA ACE LINE EXTENTION

BRAND EXTENTION

Point of differentiation

STYLE

PERFORMANCE

VERSATILITY

SAFETY

SAVING

COMFORT

Safalta ki nayi sawari, jo do lakh zindagi badal chuka hai “AAPKA CHOTA HATHI”

“BIG THINGS COME IN SMALL PACKAGES”

GROUPNAMES ROLL NO.Gaurav Singh Gaur 03Ankush Kharbanda 17Sidhant Nagi 19Aditya Goswami 25Vishal Sapra 26

Thanks