Marketing Strategy : Tata ACE

Aditya Singh (01)Akshay Yadav (03)Ankit Dhingra (08)

Anish Bhatnagar (12)

1• Commercial Vehicle

market in India

2 • STP

3 • Four P’s

4 • TATA ACE over the years

5 • SWOT Analysis

Agenda for the Day

Commercial Vehicles - India

S

M

A

L

L

Used for last mile distribution

Vacant Segment …- Solution?

SegmentationBenefit sought Behavioral Segmentation

Demographic Customer profile Segmentation

•Individual Vehicle owners

•Fleet Owners

•Institutional Customers

Need based Focus on comfort and safety

Target segment – Individual Customers

Target customers: who expect a high Return On Investment(ROI) along with safety, comfort, and status.

In 2005 136000 Three wheeler SCVs were sold. With 20% attrition towards ACE and attracting another 25ooo customers, market is very attractive to enter.

Targeting

Value proposition

High performance with car-like features (safety, comfort).

Positioning

India’s 1st

MINI TRUCK

The Product

Safety

Comfort

Reliability

High Load Capacity

High Profitability

Key Features

And 4th Wheel That Upgrades their profile too……

BSII Version : Compatible with BS II emission Norms

BS III Version: Compatible with BS III emission norms

ACE HT BSIII : High Torque Variant for higher Gradability

ACE Magic :Passenger Carrier Version

Super ACE : 1 Tonner ACE

ACE CNG : CNG fuel variant

ACE Elektro : Electric powered ACE

Variants

ACE BSII

• 2.35lacs

ACE BSIII

• 2.45lacs

ACE CNG

• 2.85lacs

Pricing

•Price was higher as compared to competitors but the company supported it on the basis of the value provided•Initially a discount of 4000 Rs was given•80% of the vehicle has been outsourced to keep costs low without compromising on the world class quality

Perceived Value Pricing

Competition Comparison

Recommendations

Particulars Bajaj GC 100 APE Truck M&M - Champion

TATA - ACE

Category 3 Wheeler 4 Wheeler 3 Wheeler MINI TRUCK

Power (hp @ rpm)

8 @ 3600 9.5 @ 3000 10.2 @ 3000 16 @ 3200

Torque (kgm @ rpm)

1.75 @2200 - 2400

2.55@1800-2200

2.75@1800 4.08@2000

Body (L*W- Feet)

4.85 *4.81 6.42 * 4.68 6.32 * 4.75 7.21 * 4.81

Rear axle NA NA NA TRUCK LIKE

Max. Speed 45 50 55 60

Suspension Triangular arm & shock absorber

Torsion bar & shock

absorber

Torsion bar & shock

absorber

LEAF SPRINGS

Price 1.53 lacs 2.25 lacs 1.9 lacs 2.4 lacs

Ground clearance

165 140 160 160

Drivability ? OK ? CAR LIKE

Safety ? CAR LIKE ? CAR LIKE

It is a different concept. It will benefit the 3 Wheeler prospects in many ways. Their DAILY savings will be higher.

Karnataka

Maharshtra

Kerala and Pondichery

Andhra Pradesh

Tamil Nadu

Place

Current Availability•All dealers across the country

Initial Launch Since Majority of the three Wheeler Target customers were in the Southern States so the company launched ACE in the south first through its Dealers and Dealer Branches.

Promotion

AdvertisingDiscount (Initial six months)Dealer launch events

The TATA brand itself Regular

Customer meets

Catchy Tagline

Free service campaignsHigh Mileage awards to Customers

-Aapka bharose ka saathi

Strengths• Safety• Comfort• High Performance• Low maintenance • The TATA brand• Social stature

Weaknesses• Low top speed• Higher cost• Higher turning radius

Threats• New entrants in the segment such as Bajaj Auto, Piaggio Truk, Force Motors• Focus on fuel efficient vehicles• Pollution control norms

Opportunities• Alternate fuels like LPG, Electric, etc.• More variants•Exports

SWOT ANALYSIS

Providing Cheaper and easier loans through TMF

Develop Higher Tonnage variants

More focus on Rural Markets

Recommendations

Thank You