...MARKETING STRATEGIES ASSIGNMENT “TATA ACE” CASE STUDY 1) Why do we feel Tata Motors was targeting LCV (Light Commercial Vehicle) segment under commercial segment for TATA ACE? Better highway systems like the Golden Quadrilateral meant that Commercial vehicles in 45+ Tonnes could carry bulk loads covering large distances in shorter time and at lower per tonne per km cost. Government also went about the task of improving road network between medium sized cities and also building all weather tertiary road network covering rural towns- only smaller and rugged vehicles could operate on these roads ( Pradhan Mantri Grameen Sadhak Yojana). Increased congestion & pollution in most of the cities forced the government to regulate the movement of Large/ Heavy trucks (larger than four tonnes) in the cities. - - Tata motors considered the above primary factors in determining the need for large commercial vehicles for the highways and smaller sub 4 Ton category commercial vehicle for operating on both Inter city/ Town and Intra city road network. Ruling out the possibility of developing large commercial vehicles due to the high cost of development and fearing loss of revenues from their niche standard size truck segment, Tata motors decided to develop TATA ACE targeting the Light Commercial Vehicle Segment. Also helping their decision process were some key policy initiatives: Discouraging the use of Old. Polluting & uneconomical vehicles Scrapping of >15 years old vehicles Ban...
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...Tata Motors Case Write-up Executive Summary The Current Situation In May 2005, Tata Motors launched a revolutionary product, Tata Ace, a four-wheel auto vehicle with a successful sale. The Key Problem Despite the decent sale of Tata Ace, Tata Motors has to figure out some way to further gain their market share. Alternative Solutions and Reasoning 1. Targeting the three-wheeled cargo vehicle market in India This means that Tata Motors to modify the Tata Ace to suit for the three-wheeled cargo market in India, which will hopefully help selling 67,500-70,000 pieces with a relatively low profit margin in this segment. 2. Targeting the four-wheeled passenger market The four-wheeled passenger market segment seems to be under-estimated, therefore if Tata Motors can endeavor into this field, it will take a smooth lead position, which helps selling 57,700-60,000 pieces with relatively higher profit margin compared to the three-wheeled cargo vehicle. 3. Targeting the remaining regional Indian four-wheeled cargo market Tata Ace is now sold in only 25% of the India region, and a expand to the whole Indian market will gain 60,000 more pieces sold, with a high profit margin, but low risk, and the product do not need a modification, which is best recommended. The Current Situation The three-wheel and four-wheel auto vehicles are the major part of the Indian commercial vehicle sector. And Tata Motors is the market leader of the four-wheel segment with a market share of 51% in...
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...Ans-1 The global commercial vehicle industry witnessed negative growth during 2006-2011; however, over 2012-2017, it is forecast to experience moderate growth and is estimated to reach $521.5 billion by 2017.The global commercial vehicle industry consists of the production of light commercial vehicles (LCVs), heavy trucks, and buses and coaches. It focuses on the freight and Transportation sector as its major customers. India will become the third largest market in the world after China and the US for light vehicles, including passenger cars and light commercial vehicles (LCVs), by 2020, according to market research firm JD Power Asia Pacific. The country, however, will have to improve its infrastructure, as well as resolve component supply chain issues, in order to realise its huge potential. “Our forecast is that by 2020, India will become the third biggest market for light vehicles, that includes passenger cars and LCVs, with total sales of nearly 12 million units,” the JD Power Asia-Pacific Executive Director, Mr Mohit Arora, told PTI. In a report — ‘India Automotive 2020: The Next Giant from Asia’ — the firm said India would have jumped from sixth place at present to be slotted after China and the US by 2020, with total sales of 11.9 million light vehicles. In 2010, 2.7 million light vehicles were sold in India, up from just 700,000 light vehicles in 2000. By 2020, China’s light vehicles market is expected to reach 35 million units, while that of the US will rise to 17...
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...near future. During the regional analysis, it was found that South India leads the country in terms of commercial vehicle market. Besides, the growth in the CV industry will boost up demand for used commercial vehicles in coming years. Global: The global commercial vehicle industry witnessed negative growth during 2006-2011; however, over 2012-2017, it is forecast to experience moderate growth and is estimated to reach $521.5 billion by 2017.The global commercial vehicle industry consists of the production of light commercial vehicles (LCVs), heavy trucks, and buses and coaches. It focuses on the freight and transportation sector as its major customers. Top 5 countries for CV industry 1) Isuzu 2) Daimler AG 3) Volvo Group 4) Toyota Group 5) Tata Group...
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...Marketing Management Tata Ace Case Study Solution 1. Analyze the Commercial Vehicle Industry at both Global and Indian scenario? Which are the top 5 countries for CV Industry. Indian Scenario- Indian Commercial Vehicle industry can be mainly segmented into * LCV and * M&HCV industry. LCV consist of three wheelers and four wheelers up to 1 ton capacity. Tata, Bajaj, Mahindra, Force motors and Piaggio are the major players of LCV industry. M&HCV consist of four wheelers such as medium sized pickups, single axle and multi axle buses and trucks. Tata, Mahindra & Mahindra, Eicher, Volvo and Swaraj Mazda are major the players of M&HCV industry. Also, two wheelers, passenger cars and SUV’s were also used for freight transport. Non motorized vehicle sector included bullock carts, bicycle rickshaw, horse drawn carriages, and manual pull carts. The size of the non motorized section was large but undocumented. After many successful years, In India commercial vehicle industry is going through a bad patch due to following reasons- • Economic slowdown • Delay in infrastructure facilities i.e.-Roads Medium and high commercial vehicle industry has seen significant slowdown while LCV industry is still experiencing growth. To overcome the slowdown OEMs have started investing in more research in technology, design, innovation, increasing the reach and increasing the standard of aftersales service instead of investing in expansion of output facilities...
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...The Tata Ace : Case Study Analysis One of the biggest conglomerates in India, the TATA Group are a name to reckon with . The revenue generated by the TATA group in 2006 was equal to 2.8% of India’s GDP . It has several sectors in IT, transportation , steel etc . One of the biggest revenue provider of the TATA group is the TATA motors which is an independent body and the TATA group holds 32% equity in it . Though TATA motors is such a big company, it showed a loss of Rs 5 billion in 2001 , biggest in TATA motors as well as in the history of INDIA’s motor sector . TATA motor Group MD, MR Ravi Kant decided some drastic measures were necessary to uplift the company once again . The idea of TATA Ace came to the manager of the TATA motor Group MD, MR Ravi Kant when he identified the market need for a commercial vehicle in the Medium Segment. Thus the idea of tata ace was born. India’s small and medium commercial vehicle sector was majorly controlled by the 3 wheeled autos and goods vehicles which were neither good to look at nor reliable and fell in the price range of 100000 – 200000 . Ace was targeted to be priced at 200000 but was subsequently launched at 225000. It was priced at 50% less than other 4 wheeled goods carriers . The project was given to the 30 year old engineer Wagha . There were quite a few reason for Ace’s success : 1. It offered a feel good factor for drivers as compared to 3 wheeled autos etc . 2.Though it has a higher initial cost, the maintenance cost was...
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...Tata Motors with their Ace Based on EMPI-Indian Express Indian Innovation Award Wining Entry by Tata Motors Registered Office: Bombay House, 24, Homi Modi Street, Mumbai Abstract: Tata Motors, India's largest integrated automobile manufacturer today, designed the country's first indigenously developed mini-truck for both rural and urban use. The versatile, high performance and efficient mini-truck, ACE. Key words: Indigaeanous Development, Innovative Organsiation, Mini Trck, Rural Transport 1. Introduction Development of road infrastructure has led to an increase in the distribution of goods across the country, based on the hub and spoke model. The ACE is powered by a unique twin cylinder 16bhp IDI 700cc diesel engine and with its launch the Company introduces a new category in the commercial vehicle segment. Tata Motors recognized the growing trend as well as the need for a last mile distribution vehicle. Keeping that in mind they developed a pick-up vehicle designed to carry larger and heavier payloads in the sub-2 ton category. Simultaneously, anticipated an opportunity in the sub-1 ton payload segment Tata Motors has indigenously developed a reliable and cost effective 4-wheeler for this segment with a water-cooled, twin cylinder diesel engine, making the ACE among the few mini-trucks in the world to be powered by a diesel engine. The Ace is ideal for short, narrow village roads as well as long highway hauls; for small bulky loads as well as large heavy ones. The small...
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...Submitted By: Group E1 Members: Aditya Mainak Pooja Prashanth Rahul PORTERS FIVE FORCE MODEL 1. Industry Rivalry . Tata Motors produces vehicles both in the Light Commercial Vehicles (LCV) and the Medium and Heavy Commercial Vehicles (M and HCV) segments. a) Light Commercial Vehicles (LCV) The market for light commercial vehicles is composed of pickups, vans and coaches weighting up to 3.5 tonnes. This segment has exhibited a consistent growth rate of over 20% in the past 5 years. This growth is expected to continue with the launch of Tata Ace by Tata Motors and similar plans by other players like Mahindra & Mahindra, Eicher, etc. Tata Motors' predominance in commercial vehicles will be challenged by the entry of international brands like Mercedes-Benz, Volvo and Navistar, which have all entered, or are in the process of entering India It faces higher competition in the LCV segment, where its Tata ACE has been a huge success. Internationalization forms a key component of Tata Motor's strategy and it has successfully entered countries having a demand similar to India like South Africa, Thailand and Argentina, mainly through acquisitions and joint ventures. It needs to improve its product reliability, service network and channel reach in order to maintain and replicate this success in other markets. Some of the recommendations for Tata Motors are exploring mass customization options in the Small Commercial Vehicle (SCV) segment, improving brand reputation and...
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...Advantage Copyright of Tata Motors. Not for circulation. Commercial Vehicles Business Unit (CVBU) Goods transportation & Passenger transportation Passenger Car Business Unit (PCBU) Passenger Cars & Utility Vehicles Copyright of Tata Motors. Not for circulation. Competition Different markets / segments Customer preferences Different geographies & cultures Growth in market size New regulations Growth Product complexity Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Organisational Pyramid for System and Process Management Copyright of Tata Motors. Not for circulation. Entire CVBU looks up to the same Vision and Mission and follows the same Core Values Copyright of Tata Motors. Not for circulation. Enterprise Systems Model Manual Copyright of Tata Motors. Not for circulation. Automotive Industry Standards Copyright of Tata Motors. Not for circulation. 9 Box Analysis of Product Proposal Copyright of Tata Motors. Not for circulation. Safety Standards Quality Standards Copyright of Tata Motors. Not for circulation. Environment Standards Testing Standards Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation. Copyright of Tata Motors. Not for circulation...
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...Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. The company's over 25,000 employees are guided by the vision to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.'' Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 6.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company's dealership, sales, services and spare parts network comprises over 3,500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company...
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...Strategic development TATA MOTORS Introduction: Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company) is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is the world's seventeenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa, Thailand and the United Kingdom. It has research and development centres in Pune, Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United Kingdom. Tata Motors' principal subsidiaries include the British premium car maker Jaguar Land Rover (the maker of Jaguar, Land Rover and Range Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat which manufactures automotive components and Fiat and Tata branded vehicles. Founded in 1945 as a manufacturer of locomotives...
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...Company: Tata Motors Product : Tata Nano Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai, India. It is the eighteenth largest motor vehicle manufacturing company in the world by volume. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Its products include passenger cars, trucks, vans and coaches.Tata Motors is South Asia’s largest automobile company; it is the leader in commercial vehicles and among the top three in passenger vehicles. Worldwide it is the world's fourth-largest truck manufacturer and second-largest bus manufacturer. It has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune, India, as well as in Argentina, South Africa, Thailand and the United Kingdom. Tata Motors has produced and sold over 6.5 million vehicles in India since 1954. Tata Motors is a cross-listed company; its stock trades on the Bombay Stock Exchange and the New York Stock Exchange. Established in 1945 . India's largest automobile company, with consolidated revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09 . Over 4 million Tata vehicles ply on Indian roads. Vision of the Company: “Best in the manner in which we operate. Best in the products we deliver. Best in our value system and ethics. “ Product mix: A product mix is the set of all products and items a particular seller...
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...House of Tata – Acquiring a Global Footprint Group 1 Bhuvan Bajaj Karan Bahl Raki Jain Trivikram Apte Vinayak Pareek Yan Yan Huang House of Tata – Acquiring a Global Footprint Executive Summary What and how did TATA emerge as a Multi Brand? Founded in 1868 by Jamshetji N. Tata as a trading firm Textiles in 1874 India’s first luxury hotel in 1903 First private steel company in 1907 First airline in 1932 First software firm in 1968 Liberalization of the Indian Economy and the changes that it brought to TATA’s way of doing business Ratan Tata becomes chairperson in 1991 • • First objective: Streamline group portfolio Some groups diversified and others organized around seven sectors 2 Major global expansions In 2000, Tata groups started internationalized operations and 65% of collective revenues were expected to come from outside India 1. Tata Consultancy ServicesWhy TCS, the group’s tech and consulting giant underwent its evolution at a much faster rate than the other Tata companies, in a sense became more global. And they perceived more growth in the foreign market and had to expand globally, TCS accounted for $27.8 billion of Tata’s $59.5 billion market capitalization as of August 2007 2. TitanExpanded globally but suffered high losses thus established itself as an NRI brand, especially in the Middle East. 3. Indian Hotels Company – TAJ Hotel Group Began globalization in 1982, Tata purchased 51 Buckingham gate and St. James court hotel which was later branded as...
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...Literature Review On Why TATA NANO Flops in the market Shabid Ashraf Abhishek Sharma Ankita Singh Neha Dagur Shikha Mathur Dept. Of Management Studies, Malviya National Institute Of Technology Abstract: When the Tata Nano, a stripped-down minicar priced at around $2,000, was introduced in 2009, it was marketed as a car that would transform the way aspiring consumers in India and other developing countries got around. But the low-cost automotive revolution fizzled. Selling poorly at home and with exports drying up, the Nano has become a cautionary tale of misplaced ambitions and a drag on sales and profit at Tata Motors. It turns out that those climbing into India's middle class want cheap cars, but they don't want cars that seem cheap—and are willing to pay more than Tata reckoned for a vehicle that has a more upmarket image. In this study we will see why TATA is trying remake the "people's car," into the "cool people's car." It has given the car itself a face-lift, adding a stereo, hubcaps and chrome trim, raised the price and started a new marketing campaign to give it more cachet. 1. INTRODUCTION Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,88,818 crores (USD 34.7 billion) in 2012-13. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fifth...
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...Marketing Management-1 Project: Tata Motors ------------------------------------------------- Submitted by- ------------------------------------------------- Ranjith Narayanan 0315/52 ------------------------------------------------- Ritesh Kumar 0325/52 ------------------------------------------------- Saahil Nagrani 0335/52 ------------------------------------------------- Sandeep Kumar Pal 0345/52 ------------------------------------------------- Sarthak A Nayak 0355/52 ------------------------------------------------- Shah Yash Virajbhai 0365/52 ------------------------------------------------- Shrey Chaturvedi 0375/52 INDEX Contents | Page no. | Pestel analysis | 2 | porter’s five forces analysis | 9 | STP Analysis | 12 | product portfolio | 16 | Distribution Channels | 22 | curious case of tata nano | 25 | conclusion | 28 | references | 30 | PESTEL ANALYSIS Political ENVIRONMENT:- TATA motors with more than 60,000 employees is plying more than 8million vehicles on Indian roads. It is operating in multiple countries across Europe, Asia, Africa, Middle East and Australia. Because of this it needs to pay a close attention to political climate across the world. Government policies like labor laws, corporate laws, land acquisition, import duties and exports laws have a deep impact on the working of the manufacturing giant, TATA motors. TATA motors has been involved in Singur plant controversy. TATA wanted to build a plant in Hoogly...
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