Tata Ace- Case Study
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?
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-
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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 on overloading of vehicle.
2) Highlight the Key outcome of Market Research which was conducted before launching TATA ACE and do we think there was a gap which can be addressed by a Product like TATA ACE?
Market research involving interviewing of over 4000 truck and three wheeler operators across the length & breadth of the country highlighted the following needs, though there was a section which opined that even a three wheeler under TATA banner would be
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 on overloading of vehicle.
2) Highlight the Key outcome of Market Research which was conducted before launching TATA ACE and do we think there was a gap which can be addressed by a Product like TATA ACE?
Market research involving interviewing of over 4000 truck and three wheeler operators across the length & breadth of the country highlighted the following needs, though there was a section which opined that even a three wheeler under TATA banner would be