APARNA LADDHA - 170101017

AVIJIT BANERJEE - 170103048

DEVAKI NAGA SIREESHA

TATA MOTORS:
ALAPATI - 170103061
LUV SHUKLA - 170101046
MANAV LAKHINA - 170103112

THE TATA ACE

NIKHIL MYNAMPALLY -
170101053
VISHNU VARDHAN THATI -
170101101
PARAMETERS FOR NEW PRODUCT IDENTIFICATION

TATA MOTORS POSTED A EXHIBIT 3 SHOWS THE GDP PER CAPITA OF INDIA THREE WHEELERS WERE THE EXHIBIT 4 SHOWS THIS OPPORTUNITY WAS
LOSS OF RS.5 BILLION IN ROAD DENSITY (PAVED WAS VERY LOW WHICH BANNED FROM ENTERING THAT THE REQUIREMENT BY GRASPED BY TATA
2001 ADDED WITH A HIGHWAY (KM)/ AREA RECOMMENDED FOR A HIGHWAYS AND HEAVY IN THE 750-1000KGS AND MOTORS THROUGH TATA
DOWNTURN OF (KM2)) IS VERY LOW FOR LOW COST VEHICLE TO BE COMMERCIAL VEHICLE IN 1000-1250KGS WAS ACE
COMMERCIAL VEHICLE INDIA SO IT WAS MUST LAUNCHED CITY AREAS DIVERSIFIED AND A NEW
SECTOR AND ABSENCE OF FOR THE AUTOMOBILE SUBSTITUTE WAS
SMALLER THAN 2 TON MANUFACTURERS TO REQUIRED WHICH COULD
VEHICLE THREATENED THE DELIVER A VEHICLE THAT DO THE WORK OF BOTH
COMPANY TO DEVELOP A COULD REACH THE THREE WHEELER TRUCK
NEW PRODUCT REMOTE AREAS AND PICKUP.
 Functional Segmentation

Ace’s core market 750-1500kgs over 100-

200 km distance
 CUSTOMER SEGMENTATION
• Status, brand image & speed
• Willing to pay higher price for AC,
Performance
sensitive: • metallic paint etc

• Owner- entrepreneurs
• Focus on ROI at the same time wanted comfort and
2. Balance
perspectives: convenience

• Fleet owners/Operators
3. ROI sensitive:
• Focus on lowest cost per mile of transport

• Lacked credit and financial means

4. Acquisition price
constrained:
DISTRIBUTION

1 2 3 4 5

Ace rollout in five states in Training of existing rural Mobile workshop which Sales and service outlet Each existing dealer was
western and southern parts mechanics free of charge on would travel to small every 40-50 kilometres and required to set up 8-201S
of India as demand was simple maintenance villages with predetermined covered more rural areas centres (Only for sales)
strongest in these areas schedule
PRODUCT DEVELOPMENT PHASE: CHALLENGES
Initially viewed with skepticism They believed that the
by many long term employees company should focus on
revitalizing its higher margin
large commercial vehicles
Personnel constraints: Small
team of five people allotted for
full time work on Ace
Budget constraints: Strict cost
control for the project(Total
development budget was not
to exceed $49 million
Target price: Price set at Rs.
200,000 since buyers are not
willing to pay much more for
the Ace than they would for a
three wheeler
DESIGN CHALLENGES
Customers preferred
To design a product
diesel-engine vehicles
that could withstand
Engine Selection: due to its greater fuel Overloading Capability:
the strain of
efficiency & lower per
overloading
gallon cost

Market Research data Quick acceleration was Safety, Comfort &

Meet the higher M1/N1
suggested that vehicle not of prime Aesthetic
class safety norms
would be overloaded importance considerations

Conform to the highest Customers preferred

safety standards flat-face vehicle
 WAY FORWARD FOR TATA ACE

Export Market Strategy:

Indian Market Strategy: •Market scope larger than India

• Multiple Engine Variants: Gasoline and

Compressed Natural Gas (CNG)
• Additional aftermarket accessories
• Saturate the current regions Vs go for new Opportunities in 3
The last two segments
segments:
regional markets •1. Emerging markets (Similar to
would need additional
India): Not much modification modifications and cost
• New Model Variants: Larger tonnage cab needed for this segment and incurred would be more.
or Passenger Van low freight-transportation cost Hence, better to go for
•2. Emerging markets (More the first segment in the
developed than India)
•3. Developed Markets
beginning
THANK YOU