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Positioning of Tata Motors in Captive and Semi captive market

2012

Positioning of Tata Ace zip in Captive and semi captive market


Positioning is an art. Great positioning tells a compelling, attention grabbing story a story that resonates with your audience. - Rebel Brown

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

A study on Positioning of Tata Ace Zip in Captive and Semi captive segment
Summer Project Report submitted for the partial fulfillment of the PGDM degree

Submitted By: Abhijit Panda Saurabh Jaiswal Jyotishmayee Das

Institute Guide :Saud Hussain Assit. Prof. (Marketing) RCMA

Company Guide :Sudip Roshan Chauhan Territory Sales Manager Tata motors

Regional College of Management, Autonomous Bhubaneswar

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

DECLARATION
I Saurabh Jaiswal, Abhijit Panda and Jyotishmayee Das student of REGIONAL COLLEGE OF MANAGEMENT, Bhubaneswar for the courses of PGDM(2011-13) declare that this survey report is true and best of my knowledge. This report is needed for the partial fulfillment of my course and will not be used in any organization except for academic purpose. The logo of Tata Motors used in this project is duly permitted and sanctioned by the concerned authority of the organization for the purpose of project completion only. I do firmly commit hereby that the data collection and analysis made will not be shared with any other market research agency, management consultant or any other organization for any reason what so ever. This project is to be used for evaluation by the concerned authority of my knowledge RCM (REGIONAL COLLEGE OF MANAGEMENT), Bhubaneswar.

Date: Place: Bhubaneswar

Abhijit Panda Saurabh Jaiswal Jyotishmayee Das

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

ACKNOWLEDGEMENT
I take the opportunity to thank my guide MR. Sudip chauan, Territory Sales Manager, SCV Cargo, TATA Motors Limited for his guidance, encouragement and support throughout the tenure of the internship. Without his efforts and directions, the project would not have encompassed and wouldnt have been such a wonderful learning experience.

I would also like to thank TATA Motors, Bhubaneswar and all of its employees as well as Consrotiuom Automobiles, Bhubaneswar for helping me to achieve success in this project in every possible manner.

Finally, I would like to express my deepest gratitude REGIONAL COLLEGE OF MANAGEMENT, BHUBANESWAR

Saurabh Jaiswal Abhijit Panda Jyotishmayee Das

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Corporate Guide Certificate


This is to certify that the work entitled Positioning of Tata Ace Zip in Captive and Semi captive segment is the piece of team project done by Saurabh Jaiswal, Abhijit Panda

and Jyotishmayee Das student PGDM, RCM (second year) under the guidance and
supervision for partial fulfillment PGDM curriculum of Regional College of Management, Bhubaneswar.

To the best of my knowledge and belief the term project report: 1. Embodies the work of candidate them self. 2. Has been duly completed. 3. Is up to the standard both in respect to the content and language for being referred to the examiner.

Project Guide :Sudip Roshan Chauhan (Territory Sales Manager) Tata Motors

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Faculty Guide Certificate


This is to certify that the work entitled Positioning of Tata Ace Zip in Captive and Semi captive Segment the piece of team project done by Saurabh Jaiswal, Abhijit

Panda and Jyotishmayee Das a student of PGDM under the guidance and
supervision for partial fulfillment of PGDM curriculum of Regional College of Management, Bhubaneswar.

To the best of my knowledge and belief the term project report:

1. Embodies the work of candidate them self. 2. Has been duly completed. 3. Is up to the standard both in respect to the content and language for being referred to the examiner.

Saud Hussain (Dept. of Marketing) Internal Guide

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Declaration Acknowledgement Certificates CONTENTS


Chapter-1: INTRODUCTION
A) About the topic B) About the company

Chapter-2:

RESEARCH METHODOLOGY
Problem of the Study Objectives of the Study Relevance of the Study Data Collection Sampling Methodology Used Limitation of the study

Chapter-3: Chapter-4: Chapter-5: Bibliography

DATA NALYSIS & INTERPRETATION SUMMARY OF FINDINGS SUGGESTIONS & CONCLUSION

Sample Questionnaire

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

With the introducing of the TATA ACE ZIP the company will more comprehensively address the burgeoning need of public transportation and goods movement. Their quality, affordable pricing and competitive maintenance cost throughout the life cycle will further foster selfemployment in the country -Mr.PM Telang Managing Director India operations,Tata Motors

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Introduction
Introducing to the topic
Tata Motors Limited
Company profile

Indias 1st Largest


Automobiles co ,exporter and R&D

Indias 2nd Target Private sector co. Globally 5th Largest Bus & truck manufacture

TATA MOTORS is well recongnised & has a distinct & cult edge of having Indias first largest automobile corporation and second target private sector corporation,which in terms of the world automobile market stands disntictly in the fifth position of bus and truck manufacturer. Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 123,133 crores in 2010-11. It is the leader in commercial vehicles in each

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The Company is the world's fourth largest truck manufacturer, and the world's third largest 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 5.9 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 power trains. The Company's dealership, sales, services and spare parts network comprises over 3500 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. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fullybuilt buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the Company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The Company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. The foundation of the Company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 4,500 engineers and scientists, the Company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The Company today has R&D centers in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100, 000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than twowheelers being manufactured in India today. The lean design strategy has helped minimize weight, which helps maximize performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels. It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation.
Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Through its subsidiaries, the Company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas employability, education, health and environment. The activities touch the lives of more than a million citizens. The Company's support on education and employability is focussed on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative healthcare. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Commercial Vehicle Business Unit: More than half a century of impressive presence and Tata Motors continues to provide India with top of the line commercial vehicles. Tata Motors is India's largest and among the worlds top five medium and heavy commercial manufacturers. There are over 130 models providing a wide variety of commercial transport solutions. A vehicle for every application - From 2 ton SCVs to 40 ton tractor trailers and from13 seater buses to 67 seater buses, Tippers to Special Purpose Vehicles, to 6x4 and 4x4 off road vehicles and Defence vehicles everything is covered under its product profile.

There are five major divisions under Commercial Vehicle Business Unit: 1. Small Commercial Vehicles 2. Light and Intermediate Commercial Vehicles 3. Medium and Heavy Commercial Vehicles 4. Buses 5. Defence Vehicles

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

It is the leader in commercial vehicles in each segment. In the domestic market, the Company's commercial vehicles sales increased by 22.7% year-on-year to 458,828 units. The Company's market share in commercial vehicles was 61.8%. in FY-2010-11.
Commercial Vehicles: Product profile

Tata Ace Tata super Ace Tata Ace Zip Tata TL/Telcoline/207 DI Pickup Truck/RX PICK UP Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1512 (Medium bus chassis) Tata 1612/1616 (Heavy bus chassis) Tata 1618 (Semi Low Floor bus chassis) Tata 1623 (Rear Engine Low Floor bus chassis) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Star bus (Branded Buses for city, inter city, school bus and standard passenger transportation) Tata Divo (Fully built luxury coach) Tata City Ride (12 - 20 seater buses for intra-city use) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (82) Tata 3516 (Heavy truck) Tata 4018 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (64) Tata Novas (Heavy truck designed by Tata Daewoo) Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)

Military Vehicles: Product Profile


Tata LSV (Light Specialist Vehicle) Tata Mine Protected Vehicle (44) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 44, and 42 versions Tata LPTA 713 TC (44) Tata LPT 709 E Tata SD 1015 TC (44) Tata LPTA 1615 TC (44) Tata LPTA 1621 TC (66) Tata LPTA 1615 TC (42) Tata Winger Passenger Mini Bus

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Small Commercial Vehicles Tata Motors is leader in small commercial vehicles segment. Small commercial vehicles consist of highly successful Tata Ace, Magic, Winger, 207 DI EX, RX-PICK UP, Telco line, Xenon and recently launched Ace Zip and Magic Iris.

ACE LEGACY
From the Tata motors Ace is the product which is game changing product in the small commercial vehicle industry.

In comes a game changing Product from the dominant leader of the Indian CV Industry

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Small commercial vehicle overview

The above pie-chart represents the automobile sector in total of which commercial vehicle sector holds 4.39% of the total which shows the sector/industry is yet to expand in near future considerably.TATA MOTORS which is not only the market leader in the CV segment but also the market dominator has bright future prospects depending on the boom and growth of the CV segment.

As per the graph ,in the FY-12 TATA MOTORS has shown a growth of 75,000 units in comparision to corresponding FY-11 by marking up growth % of 33 and has left behind its competitors way back in the SCV SEGMENT.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

The above graph represents the commercial vehicle of TATA MOTORS and their growth in respective financial years which clearly depicts the sub one tonner is growing at stupendous rate of 43% in comparison to its other counterparts i.e. pickups and upper-end LCVs.

Current SCV market Scenario


By 2015 SCV segment estimated 670000 units/year currently 180000units/year. SCV segment growth rate of 20%. Goods 70% + passenger carriers 23%. 45% LCV + 55% M/HCV

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

SCV SEGMENT IN INDIA

The pictures represent the SCV family of different capacities of TATA MOTORS (CVBU). Each having different and innovative features which have led TATA MOTORS to a position never reached before and only dreamt of by the competitors. The reason of competitors envy and TATAS pride.

MARKET SHARE

In the financial year 2011-12,market share of Tata motors in LCV SEGMENT is more than that other automobiles companies. Market share Of Tata motors is 58.3% which is more than other automobile companies in India.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

DEMAND DRIVERS
GDP/IIP & Freight Outlook High degree of correlation. Fuel price diesel cost is lesser than petrol. Policy initiatives Discouraging the use of old, polluting, leading to incremental volumes in the last 2yrs. Supreme court ban on overloading, leading to incremental volumes in the last 2yrs Scrapping vehicles > 15 years old ; potentially unleash a huge replacement demand. Replacement Cycle- Declining from about 12 years to nearly 7 years now. Indian railways Freight Services- Vis-a vis the railways, the share of road transport currently stands at about 60%. SCVs have been able to created a new class of entrepreneurs; people who were looking for alternative employment opportunities that enables them to earn respect in society Easy availability of finance at low interest price. Improved roads

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

PEST ANALYSIS
POLITICAL : Govts increased spending on infrastructure will directly increase demand. Stringent emission norms and safety regulations could bring new complexities and cost increases for automotive industry. WTO, Free Trade agreements and other similar policies could make the market more competitive.

ECONOMIC : Export demand for SCV decreased during downturn. High materials cost increases cost of production. Costlier finance. Increased Income will increase demand for freight movements

SOCIAL : Status consciousness in rural India. Growth in the number of SMEs

TECHONOLOGICAL :o Constant up-gradation required to keep up with competitors. o Emission Control Technologies to meet BSIV norms

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Road infrastructure

Roads infrastructure plays a very vital role for any commercial vehicles because according on the basis of roads new needs and wants were developed. For urban areas and rural areas different kind of commercial vehicles required.

3.2million kms road, 2% Highways, 12% of this 2% four lane. Traffic in cities, entry barriers/ timing barriers for heavy vehicles. Poor rural road connectivity. Ban of 3-wheelers on flyovers due to slower speeds and safety considerations. Pradhan mantri gramin sarak yojna

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

GAP ANALYSIS
THE IDEA OF A VEHICLE CALLED ACE ZIP : GAP ANALYSIS
Market Situation:1. Government plans of road network expansion. 2. Low GDP growth positively correlated with HCV penetration to LCV. 3. SCV segment established himself as self employment

Company Situation
TATA is a market leader in LCV segment but it lacked in below 600kg payload capacity. Scope of enhancing the market share was there.

DEMAND SIDE GAP ANALYSIS


Demand side gap: Large trucks Not allowed in cities during daytime. High per unit transportation cost and road conditions made them unsuitable for rural market. Demand side gap: Three wheelers Banned in certain metros to avoid congestion. Not allowed in highways due to speed and safety concerns. Didnt enhance the social value of the user. Demand side gap: Four wheelers Lesser driver salary of 3wh. Rented cost of three wheeler is lesser. Three wheelers easily move in congested places Lower price of three wheelers. Supply side gap Supreme court ruling on overloading norms. Need of a product in portfolio that was immune to cyclical demand fluctuations
Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

GAP ANALYSIS: VALUE NET MODEL :

Customers: Balanced perspective and ROI sensitive customers would buy the product. Suppliers: TATA could utilize its existing Supplier base. Competitors: There is heavy competition Identified in the product segment. Complementors: The Government road network improvement schemes, improved freight rates and healthy GDP targets

GAP ANALYSIS : COMPANY STRATEGY :

Basis of Strategy: The basis strategy is value net model. Strategy Adopted: The strategy adopted is new product development.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

ANSOFF MATRIX

MARKET PENETRATION:A product which has already introduced in market, for the further development of product, we can penetrate this product to the existing market. Ex:-In TATA MOTORS,ACE is a such product, which is already exist in market, for its further development, we can do more advertisement or we can give more offers on this particular product.

PRODUCT DEVELOPMENT:
When a product is new to the existing market. Ex:-Initial stage of ACE ZIP

MARKET DEVELOPMENT:
When product has introduced to the market, but customers arent aware about the product. Ex:-After introduction of ACE ZIP.

DIVERSIFICATION:
When the product is already exist in market,again we introduce its sub part. Ex:-ACE->ACE ZIP

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

PRODUCT DESIGN
WHY DESIGNING THE ACE ZIP
Enhancing Overloading Capacity
Per unit cost of transportation perceived as much as desired quality. Acceleration not of much importance. Higher payload & larger loading area has been required.

Engine Selection
Basically air cooled engine has been used which leads shorter trips and high maintenance cost. Higher capacity engine requirement( approx 400cc engine is being used in the market) .

Safety, Comfort and Style


4wheel stability and full frontal collision protection requirement. Stylish exterior and interior required which elevates social status. Customer does not prefer much handle bar type steering and constant mesh gearbox.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

PRODUCT
PRODUCT SPECIFICATION

Tata motors has launched their new micro pick up truck Tata Ace Zip in India. Tata Ace Zip is powered by a 611-cc, 11 Bhp-31 Nm indirect injection diesel engine. Tata Ace Zip comes with an impressive warranty of one year/36,000 kilometres. Tata Ace Zip is an ideal micro truck to maneuver in city narrow streets since it has a turning radius of just 3.5 metres. The micro pick up truck is expected to give a mileage of 25 KMPL. Tata Ace Zip comes loaded with safety features like retractable seat belts and a sturdy all steel cabin, which ensures complete safety for its occupants.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

PRODUCT FEATURES

TATA ACE ZIP PRODUCT DIFFERENTIATION


TATA Ace Zip Differentiation-Versatility: Ideal for both city and rural areas. Bigger loading area i.e. 600kgs payload and 5.5ft*4.85ft which is highest in this segment. Better gradeability i.e 22% which is highest in this segment. Rigid front axle for Indian conditions & low turning radius of 3.5m. 12 radial tyres give higher ground clearance. The truck-like strength of the front Mc Pherson strut and rear coil spring suspension provides a smooth riding experience. Usage range from vegetable vendors to cargo pickup to any cargo transport.

TATA Ace Zip Differentiation - Savings : Comfortable conditions for the driver and water cooled engine allow ACE Zip to long lead trips per day. Flat, bigger loading area and 53%more power and72% more torque than 3wh allow ACE Zip more trips per day gives a fantastic opportunity to earn higher business revenue. Less frequent oil change (intervals at 10000kms) thick wiring, no leakage as compare to 3wh ,hence low operating cost. Low operating costs ,Higher revenue and highly reliable i.e. cost per transportation is less an altogether safe investment for small businessmen

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

TATA Ace Zip Differentiation -Safety: Four wheel design and four bolted wheel design improves stability enabling you to drive all kinds of road stress free. Front collision protection and seat belts gives you a best in class safety. Powerful headlamps offer superior visibility. Wider wind screen and large rear view windows improves visibility and allows you to drive confidently Strong steel body provides you protection from rain, sun, cold etc. Lockable glove box for important documents.

TATA Ace Zip Differentiation - Comfort: Steering wheel , foot operated ABC controls, dashboard mounted gear shift lever and adjustable driver seat ergonomically positioned for comfort. Spacious cabin with wide doors. Generous legroom, shoulder room and head room which elevates car like feeling, Less vibration and cabin noise reduces stress.

TATA Ace Zip Differentiation - Performance: Water cooled ,single cylinder engine with capacity 611cc engine delivers a power of 11hp @ 3000rpm Torque of 3.16mkg Gradability of 22% and top speed of 50km/lt. Meets BSII and BSIII standards. Heavy loads can be conveniently placed in the load body. The 4+1 synchromesh gear box gives smooth riding.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

TATA Ace Zip Differentiation - Style: Stylish exteriors which elevates your social status. Stylish headlights which look different and stylish. Stylish digital instrument panel which is well illuminated for improved visibility. Stylish dashboard gives car like feeling. Provision to easily install a music system

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

MARKET RESEARCH
MARKET RESEARCH OBJECTIVES : 1.Awarness regarding product 2.Assess were demand for the product existed. 3.Co-create ACE ZIP:from the customer to the customer

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

RESEARCH METHODOLOGY:The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data. SOURCE OF DATA COLLECTION: PRIMARY: For my survey primary data have been used as a questionnaire to collect the data. RESEARCH DESIGN: Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigation. It is blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well-structured from and is based on primary data. RESEARCH PLAN: Type of study: For completing my study I have gone for sample study because looking at the size of population & the time limitation it was not convenient for me to cover entire population. Hence, I have gone for sample study rather than census study. SAMPLING PLAN: A sample design is a definite plan for obtaining a sample from a given population. It refers to the i) random sampling technique and ii) snowball technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected. STEPS IN SAMPLING PLAN: SAMPLING FRAME: The list of sampling units from which sample is taken is called sampling frame. Orrissa City map was studied thoroughly and samples were selected from the place in a scattered manner to get effective result. SAMPLING SIZE: Total sample size is 250. The following sample size according to area wise is as follows: Bhubaneswar Puri Nayagarh Khurda Jatni

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

SAMPLING PROCEDURE: The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area sampling method that attempts to obtain the sample of convenient. ANALYSIS: The important factors and datas collected were sequentially analyzed and graphed. FIELD WORK: I have collected the data through medium called questionnaire collecting the responses from 250 people in all. I had done my field work in the following area. Bhubaneswar, puri nayagarh, jatni, khurda . I started my project very first educating the respondents about my entire project, and ask them to cooperate with me. Mostly all the respondent were aware of this type of surveys. So I didnt face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire. Contact method: Personal interview

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

PRODUCT 4PS

Product
One that integrates three wheeler and four wheeler features

Price
Shouldnnt be substantiall y higher than of three wheelers

Place
Potential market existed both in urban and rural areas

Promotion
Purchase decision would incorporate some emotional and functional considerati ons

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Existing competition

In commercial vehicle sector, the strong competitor of ACE ZIP is piaggio ape. Whereas TATA ACE is also giving a strong competiton to ZIP. Force motors, Bajaj and Mahindra are also in the queue of competition with ZIP. In the SCV(0.5tonnes) there are two type of commercial vehicle is one 3wheeler and other is four wheeler.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

PLAYERS IN 3 WHEELER CATEGORY


In the 3 wheeler category 3 major players exist in the market they are:1. Bajaj- GC Max/ RE600 2. Piaggio Ape 3. M&M Champion

Particulars

Bajaj GC MAX/RE600

Piaggio Ape Diesel, petrol, CNG

M&M CHAMPION Diesel,CNG

Variants available

Diesel, Petrol,CNG

Mileage Max. Speed Price(lacs) Payload Warrenty Variants Positioning

30-35 45 1.53 530 24 months Yes High performance, good mileage and almost nil maintenance

30-35 65 1.45 534 24 months Yes High on prestige, Low on cost, good mileage , less maintenance and best load pulling capacity

30-35 50 1.9 685 24 months Yes More space, more savings and more comfort. Inbuilt value added features

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

PLAYERS IN FOUR WHEELED CATEGORY


In the four wheeled category there are three major players :1. Force- Trump-15 2. Piaggio Ape Mini 3. M&M Gio

Particulars

ForceTrump-15

Piaggio Ape mini Diesel

M&M Gio Diesel

Variants available

Diesel

Mileage Fuel tank Price(lacs) Payload Warranty Variants/customized Positioning

29 18

29 10.5 1.78

30 10.5 1.64 500 60,000kms Yes Low on cost, fuel efficient, less maintanance

790 12 months No High performance, High pickup, high payload capacity

503 15months, Yes High on prestige, Low on cost, less maintenance and comfortable

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Segmentation
FUNCTIONAL MARKET SEGMENTATION

The target segment of the Tata ace zip is the existing 3wheelers market category. And replaced it into the 4wheeler segment with better features.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

CUSTOMER MARKET SEGMENTATION Perfor mance sensiti ve Balance Perspecti ve ROI Based Decision Acquisition Price constrained

Bottom of the Pyramid

CUSTOMER MARKET SEGMENTATION Performance Sensitive Customers :


1. Interested in staus,brand image and speed. 2. Willing to pay higher price foe better features. 3. Currently using cars or large SUVs to haul goods

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Balanced perspective customers :


1. Wanted return on investments. 2. Owner-Entrepreneurs. 3. Wanted comfort and convenience features. 4. Forced to purchase 3-wheelers as other product were above budget.

ROI sensitive customers:


1. Purchased based on lowest cost per mile of transport. 2. Not interested in non monetary purchase consideration. 3. Include fleet owners/operators and some individual owners.

Acquisition price constrained customer:


1. Lacked credit. 2. They would preferably purchase 3-wheelers. 3. No financial means to purchase even slightly expensive vehicle.

Bottom of Pyramid
1. Could not afford motorized vehicle. 2. Size of the segment is unknown. 3. Involve in small business. 4. With increase in prosperity people from this segment move upwards. 5. Uses bullock carts, bicycle rickshaws or manual methods for goods transfer.

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Positioning of Tata Motors in Captive and Semi captive market

Targeting
Targeted individual customers who looked for
ROI Price, fuel efficiency, manoeuvrabilityof 3 wheelers Safety, durability, additional payload and comfort of 4 wheeled truck.

Target market included


People planning to purchase 3 wheelers Potential pickup and LCV purchasers Captive, Semi-captive markets and FTUs

TARGET INDIVDUAL CUSTOMERS


Generally individual customers looed for ROI(i.e return on investment),they give more importance to price of the vehicle, as the increase of fuel price,they looked for fuel efficiency of the vehicle,and most important thing is durability and safety of the vehicle,whats the payload and comfort level of the vehicle.

TARGET MARKET INCLUDE


The target market of ACE ZIP is,people who are planning to purchase 3-wheelers,because ACE ZIP is made to replace the 3-wheeler in the market.It generally target to the captive and semicaptive markets,because in these markets people see their profit in low cost.They generally use vehicles in commercial purpose,here it is easy to penetrate a new product,which gives the more profit in low cost.

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Positioning of Tata Motors in Captive and Semi captive market

Positioning
Bussiness ka naya rasta -Positioned as self employement Goodness of Ace Now in a Smaller size -Positioned as trust, power, reliability of ace is with zip also

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Positioning of Tata Motors in Captive and Semi captive market

Positioning statements
India's first MICRO TRUCK A product for all your needs in lesser price Feel good about the job Stability and trust for big truck Trustworthiness of ace

Transportation at the last mile

From the above figure it tells that, ACE ZIP is Indias first micro truck, a product which full-fill the all needs in lesser price. When someone uses 4-wheeler rather than 3-wheeler, it shows his social status, he must be feel good about his job. Though already people have trust on ace, its the smaller part of ace, it also show the same trustworthyness, which has already created in customer mind by ACE. Its transportation is safe secure for long distance.

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Positioning of Tata Motors in Captive and Semi captive market

Competitive positioning

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Positioning of Tata Motors in Captive and Semi captive market

Current market position

The current market positioning of ace zip:I. II. Compete with 3 wheeler by its benefits Differentiate with Tata Ace

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Positioning of Tata Motors in Captive and Semi captive market

ACE ZIP : PRODUCT LIFE CYCLE

Generally product life cycle has 4 phases. I. II. III. IV. Introduction stage Growth stage Maturity stage Decline stage

Product life cycle of ACE ZIP-It has already introduced in market,now ACE ZIP is in growth stage. In this stage it requires aggressive advertisement to create awareness regarding product. Its the peak stage of any new product.

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Positioning of Tata Motors in Captive and Semi captive market

PRICING
PRICING OBJECTIVES:
Product Quality Leadership Perceived Quality higher than competing 3-wheelers Priced just beyond the max price of 3- wheelers at Rs.210000 A premium on the price of three wheelers

ACE PRICING :
Analyzing competitors costs, prices and offers: Competitors sold at lesser price than the target price of ACE Zip. The value package of Ace zip was however higher than the

competitors.

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Positioning of Tata Motors in Captive and Semi captive market

Distribution
Distribution network: Hub and Spoke Model
3S TO 1S Approach
A sales outlet every 40 to 50 kilometers. Only Sales store compared to traditional Sales, Services & Spares. Existing dealerships acted as hubs and set up

1S dealerships
3S has been setup according to the areawise. Each dealer set up area wise stores it can be up to 20 stores.

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Positioning of Tata Motors in Captive and Semi captive market

Promotion
The Target Audience :
1.Three Wheeler Owners 2. Owners of Trucks 3. Trucking Fleet Owners 4 .First time LCV purchasers ACE ZIP is made for replacing 3-wheelers in the current market.for promotion of ACE ZIP, The first target audience is three wheeler owners.owners of trucks are also target audience Because,they will get same profit but in low cost by using mini truck rather than truck.

Target segments
Hardware and paints Consumer durables(FMCDs) Agriculture loads, White goods, Fast moving consumer Furniture Tiles and marble, Gas cylinders Soft drinks Courier services Print material Wine distribution Vegetable and fruit vendor Chicken and egg distribution

goods(FMCGs), Electrical items Industrial goods Stationary Building materials Bakery items

and more

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Positioning of Tata Motors in Captive and Semi captive market

COMMUNICATION OBJECTIVE

Good Brand awareness of the umbrella brand, TATA ACE To communicate the benefits of the product, ACE Zip To develop a positive brand attitude among the target customer group. To translate the positive brand attitude into sales.

DESIGN THE COMMUNICATIONS Message strategy:o o o o Dealers were educated in the benefits of ZIP versus the competiton. Use of local language for communication. Indias first micro truck. The core message was created around new opportunites that ACE would provide its customers.

Creative strategy: Emotional benefits of producti.e better social status. Informational appeal of product i.e load capacity.

Message:
Tata: a trusted source of information

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Positioning of Tata Motors in Captive and Semi captive market

COMMUNICATION CHANNEL

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Positioning of Tata Motors in Captive and Semi captive market

SERVICING MIX
3PS OF SERVICE
PROCESS Free training to rural Mechanics. Free tool set and signboard. Provision of spare parts and lubricants to mechanics and customers. Necessary help in case of major accident.

PEOPLE Dedicated dealers. well trained machines.

PHYSICAL EVIDENCE

TASS.
Mobile workshops. Service outlet every 40-50kms

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Positioning of Tata Motors in Captive and Semi captive market

CUSTOMER RELATIONSHIP MANAGEMENT(CRM)


WHY CRM?
Low rating in sales satisfaction. Needed a centralized customer database. Respond Promptly to customer requests. Required better feedback on product quality. Effective measurement of campaign

CRM : Give TATA ACE Zip an edge

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Positioning of Tata Motors in Captive and Semi captive market

LAUNCH & RESPONSE


LAUNCH Launched in May 2011 Targeting majorly 3wheeler users. Priced at Rs. 1.95 lac. Produced in Pantnagar and Dharwad plant. All over country it has been launched.

RESPONSE The ACE Zip has not received that much success rate as the Ace did, according to Tata motors expectations but newly vehicle was positively received by the users. The initial sales figures are motivating. The Ace Zip has yet to create an another historical event in the CV industry.

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Positioning of Tata Motors in Captive and Semi captive market

BCG MATRIX

In BCG matrix,4 qudrants are there, Stars-where both market share and market growth are high. In TATA MOTORS,ACE can be placed in star position,because market share and market growth of ACE is high.

Question Marks-Here market growth i.e cash usage is high,but market share i.e cash generation is low.

In TATA MOTORS ACE ZIP can be placed in that position. Because that product is new to the market,and people are unaware about the product, so that market share of the product is low as per the market growth rate.

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Positioning of Tata Motors in Captive and Semi captive market

SWOT ANALYSIS
STRENGTH: Strong brand name of TATA Part of ACE family advantage Good consumer relationship Continuous innovation Position of finance to buyers

Weakness: Higher cost. Spare parts un availability Complaints on slow brakes

Opportunity: Rural Market Positioned to SMEs High groth rate of LCV segment Low freight rates, Higher GDP targets

Threats: Further Fragmentation of market Increased competition, Creation of new segments by M&M Gio, Somehow it has to compete with ACE also.

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Positioning of Tata Motors in Captive and Semi captive market

Branding
ACE ZIP : MAKING OF A BRAND

To make brand of any product there are five important drivers:i. ii. iii. iv. v. Value Emotional connection Accessibility Awareness Relevant differentiation

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Positioning of Tata Motors in Captive and Semi captive market

UMBRELLA BRANDING : THE TATA LEGACY


Pride of India Emotional attachment Trustworthy

TATA ACE AS A BRAND


Revolutionary Game changer in the LCV segment 70% market share in LCV segment Good brand image in LCV segment

TATA MOTORS BRAND


Other part of a coin Arrogant

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Positioning of Tata Motors in Captive and Semi captive market

Rural focus
Rural Markets Huge Potential
India's plans to link villages with towns and towns with cities across the country, through world-class highways and all-weather roads, is going to dramatically change lifestyles, both in terms of transportation of goods as well as people. Tata Motors, India's leading auto manufacturer, is gearing itself to address and accelerate this transformation -- Shyam Mani, VP (sales and marketing), Commercial Vehicles, Tata Motors.

56% of the national Income. 64% of the total expenditure. Predicted to be Rs. 16 trillion by 2012-2013 Construction of rural roads are in full swing. Needed for transporting agricultural yeilds and to deliver small lots of CPGs.

RURAL INDIA ROAD TRANSPORTATION


Common modes of transport in villages Bullock carts Human labour Three wheelers

Disadvantages - Longer lead times Shrinkage Poor transportation Longer cash conversion cycle Hinder a high standard of living

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Positioning of Tata Motors in Captive and Semi captive market

TATA ACE ZIP RURAL MARKETS FOCUS


Demand for Small trucks delivering on full truck load basis. Cost effective transport for last mile delivery in supply chain Safe transport, lower operating cost for low income group. Tata lowest attractive priced cargo brand positioned itself in the rural markets. Lower payload necessity.

BENEFITS OFFERED
Training of rural mechanics free of cost Free tool set and display at garage. Mobile Workshops

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Positioning of Tata Motors in Captive and Semi captive market

DATA ANALYSIS and INTERPRETATION


1. Are you using Commercial vehicle?

Users
89% 34% hired owned 66%

FMCG
11% HIRED OWNED

FMCD
6% HIRED 94% OWNED

In the survey we have meeted that 66% of the customers who have owned the commercial vehicles and 34% of the customers are those who hired the commercial vehicles from the vendors. If we see the FMCG sector 89% consumers has owned there commercial vehicle but in FMCD sector the owned commercial vehicle is just 6% and hired commercial vehicle is 94% i.e. the growth opportunities in this sector very much higher.

2. If owned or hired which commercial vehicle are you using?

Users
7% 9% 21% 63% Tata zip piaggio Ape mahindra alfa bajaj GC

Currently the market share of piaggio is higher than the other commercial vehicle market players. Tata Ace zip has very less market share of 7% only. So the company have the growth opportunities.

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Positioning of Tata Motors in Captive and Semi captive market

3. Purpose of using your commercial vehicle?

Purpose of using commercial vehicle


11% 42% 47%

For rent Own use Both

The purpose of using the commercial vehicle for own use is 47% and for rent is 42 % So the total captive market share is around 89% and semi captive market share is only 11% . So, the companies have great opportunities in captive market.

4. It is your own decision or influenced by others?

It is your own decision or influenced by :

33%

24%

friends and relatives

brand name
Additional benefits 18% Advertisement and others OWN 13%

12%

The 66% of the purchasing decision has been influenced by the promotional modes like friends and relatives, brand name, advertisement, additional benefits and others.

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Positioning of Tata Motors in Captive and Semi captive market

5. Why you have preferred this SCV, the benefit behind taking this SCV?

The main benefit behind taking a SCV vehicle


2% 7% 17% low maintenance cost high mileage safety comfort and style 74%

A customer buying decision is highly depends on the Low maintenance cost of a SCV vehicle. As the Ace Zip has a very low maintenance cost so it will be attractive to the customers. 6. If you are not satisfied with your SCV. Why?

If not benefited Why?

17% High maintenance cost 8% 56% 19% Low mileage No comfort and Style No safety

The customers are not fully satisfied with their SCV due to high maintenance cost of SCV. As the ACE zip has low maintenance cost , so the company has to promote this benefits more.

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Positioning of Tata Motors in Captive and Semi captive market

7. How many trips you will do in one day?

Trips you will do in one day


3% 8% 1-2 trips/day 3-5 trips/day 6-7trips/day 32% 57% 8-10trips/day

Majorly people will do 1-2 trips per day and 40% of the customers will do 3 to 10 trips per day. In every condition ACE zip will be idol for many trips and generate higher revenue, so more you trip more you gain. 8. Is the pricing affects your buying decision?

Is the pricing of vehicle affects your buying decision ?


4%

10% stongly agree

22% 64%

midly agree neither agree or disagree midly disagree

From this survey we got to know that pricing is the important decision during buying of any SCV.

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Positioning of Tata Motors in Captive and Semi captive market

9. You have taken your SCV on :-

Buyed SCV on :

25% EMI Cash 75%

Most of the customers has buyed their SCV on EMI. So better EMI or finance options will attract to the customers and people can preferred more ACE zip over the other market players.

10. When it come to lesser payload (500-650) category which comes first in your mind?

Which SCV in 0.5tonne comes first in mind ?


7% 10% 15% 68%

Piaggio Mahindra Tata Others

In SCV market piaggio dominance we can see in this SCVmarket. People first choice is piaggio.

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Positioning of Tata Motors in Captive and Semi captive market

11. Would you prefer a SCV which matches your social status?

Preferred vehicle matches social status

22% 48%

Yes No Can't say

30%

Today the customers are more social status conscious regarding their commercial vehicle also. They prefer that vehicle which matches their social status. So in this case Tata Ace zip can push itself more towards brand image.

12. Is the loading capacity and volume is important criteria in selecting a SCV?

Important criteria in selecting a SCV is volume and load capacity.


2% Strongly agree Midly agree Neither agree or disagree 76%

22%

As the 76% of the customers are strongly agreed with that the loading capacity and volume is the important criteria for selecting a SCV.

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Positioning of Tata Motors in Captive and Semi captive market

13. Which engine you will prefer more?

Engine You Preferred

35%

Powerful engine with more cost Moderate engine with low cost 65%

Most of the persons preferred powerful engine with more cost as the ace zip engine is very much powerful as compare to the other SCV.

14. Would you prefer a higher ground clearance SCV :-

Preferred higher ground clearence

10% Srongly agree 38% 33% midly agree neither agree or disagree midly disagree

19%

Around more than 50% of the peoples are agreed that they will higher ground clearance SCV. Currently in the market Ace zip has the highest ground clearance.

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Positioning of Tata Motors in Captive and Semi captive market

15. Are you satisfied with the frequency of oil change :-

Frequency of the oil change


tata

mahindra

piaggio

fully satisfied partially satisfied unsatisfied

piaggio 30 44 28

mahindra 24 50 26

tata 68 20 12

From the graph we got to know that Tata owned vehicles have fully satisfied customers is maximum as compare to other SCV market players in the commercial vehicles industry. 16. Which type of steering would you prefer :-

Steering you preferred

Mechanical-rack and pinion(circular steering) 36% 36% Handle bar type

Any type 28%

From the survey we got to know that the customers preferred the circular type steering more that is an added advantage over other SCV because ace zip only has circular steering.

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Positioning of Tata Motors in Captive and Semi captive market

17. Is the drivers comfort is very much important aspect in selection of SCV :-

Drivers comfort is important aspect


midly disagreed neither agreed or disagreed midly agreed strongly agreed strongly agreed owners(drivers) owners(non-drivers) 44 77 midly agreed 28 20 neither agreed or disagreed 16 3 midly disagreed 12 0

There are two type of owners first is the owners who itself is a owner and other who are non drivers, so in the case of driver as a owner they will see comfort as a important aspect they wanted a feel good factor while driving. 18. Would you prefer a SCV with good mileage and power :-

Need a SCV with good mileage and power


12% 14%

stongly agreed midly agreed neither agreed or disagreed 74%

The customers needed a SCV which has good mileage and power which will generate a high revenue. As the ace zip has a high power due to high cc engine provides great power and mileage.

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Positioning of Tata Motors in Captive and Semi captive market

19. Is the water cooled engine is better than air cooled engine :

Water cooled engine better is than air cooled engine


10% 13%

strongly agreed midly agreed neithet agreed or disagreed 54% midly disagreed

23%

The customer has preferred water cooled engine more than the air cooled engine and ace zip has water cooled engine so customers will prefer more in future. 20. Is the exteriors and interiors is important aspect in selection of SCV :SCV exteriors and cabin interiors are important aspect

strongly agreed owners(drivers) owners(non drivers) 59 35

midly agreed 24 20

neither agreed or disagreed 10 25

midly disagreed 7 20

In case of owners as well as driver SCV exterior and interior is important aspect in their buying decision because it matches there social status.

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Positioning of Tata Motors in Captive and Semi captive market

21. Are you aware about Tata ace zip?

Awareness regarding Zip

10% 30%

Fully aware

partially aware
unaware
60%

The aware regarding ace zip is very less around 10% customers only fully aware regarding Ace zip. 22. Is the price of SCV affects your buying decision :-

PRICE

14% 44% 20%

STRONGLY AGREED MIDLY AGREED NEITHER AGREED OR DISAGREED

22%

MIDLY DISAGREED

More than 70% of the customers said that Price affects their buying decision. On the price of SCV they will decide whether they have to take a SCV or not.

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Positioning of Tata Motors in Captive and Semi captive market

23. Is the price of Ace zip is reasonable for you :-

PRICE of ace zip reasonable

13% 29% STRONGLY AGREED MIDLY AGREED NEITHER AGREED OR DISAGREED 37% 21% MIDLY DISAGREED

As the customers are not fully aware regarding ace zip properly they think that the price of ace zip is quite high. 24. Does the new features of Tata ace zip(like better clutch, bigger radial tyres, adjustable drivers seat, digital instrument panel, stylish exterior and interior) motivates you :-

New Features of zip motivates you


8% 12% Strongly agreed

Midly Agreed
58% Neither Agreed or Disagreed Midly Disagreed

22%

The ace zip new features attract the customers and motivate them to buy this new Ace zip. So company should aware about these features more.

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Positioning of Tata Motors in Captive and Semi captive market

25. Is the after sales service affects your buying decision :-

Is the after sales service affects your buying decision 5% 3% strongly agree midly agree neither or disagree 92%

This is the major portion where customers buying decision affects i.e. after sales service if the companys after sales service is good than it can attract customers easily.

26. Would you prefer company customized SCV rather than doing it on workshops :-

Prefer customized SCV


11% 11% strongly agreed midly agreed 19% 59% neither agreed or disagreed midly disagreed

Customers would prefer more if company will provide SCV according to their needs and want.

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Positioning of Tata Motors in Captive and Semi captive market

27. Are you interested in taking Ace zip for future purpose :-

Are you interested in taking Zip in near future purpose

12%

18%

interested interested but not in near future Not interested

70%

From the survey we got to know that many customers are interested in taking a Ace Zip.

28. Tata respond to the customers

Respond to customers

30%

Satisfied Unsatisfied
70%

From the survey we got to know that tata respond to the customers is very unsatisfied among the peoples

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Positioning of Tata Motors in Captive and Semi captive market

29. Customer relationship with the companys

Customer relation

Axis Title

reach to customer mahindra piggaio tata 5 3.4 2

respond to customer 4.5 3.2 2.5

From the survey we got to know that the piaggio has the best customer relation and the tata has the least rank in the customer relation 30. Tata after sales service

Tata after Sales service


4%

38%

satisfied partially satisfied dissatisfied

58%

Tata after sales service is also not so good above 50% of the persons are unsatisfied with the Tata after sales service

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Findings
i. There was market for a vehicle that offered price, fuel efficiency and maneuverability of a three wheeler but with the safety, durability, additional payload, higher revenue and comfort of a four wheeled truck . 56% Customers are looking for a social status and they viewed four wheelers as a higherstatus vehicle. Customer wanted a product that would travel across the length and breadth of the country and would withstand overloading. People wanted a vehicle with a feel good factor for the driver. In order to convert the prospective consumers into potential consumers the price had to below 2lacs 55 % of the ACE customer base would come from people have 3wheeler or planning to purchase 3wheelers. While buying a commercial vehicle customer majorly preference or see low maintainance cost and high mileage in a vehicle. 65% of the TATA customers are unsatisfied with the after sales service. 75% of the customer have taken their vehicle on EMI 70% of the customers will do 2-3 trips in a day. 90% of the customers are partially aware or unaware regarding TATA ACE Zip. 59 % of the customers strongly agreed that they would buy company customized vehicle rather than doing it on workshops. Tata respond to the customers is unsatisfied among the customers.

ii.

iii.

iv. v.

vi.

vii.

viii. ix. x. xi. xii.

xiii.

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Positioning of Tata Motors in Captive and Semi captive market

Recommendations
1. For awareness regarding zip :Do the Road shows like- Trip with Zip By this programe TATA motors should get to the targeted customers FTUs, Captive, Semi-Captive. A set of improvements that needed that should be targeted four key areas : Customer segmentation and engagement needed. Dealer network optimization. Sales pipeline management. Sales process enhancement. 2. As the 85% of the customers are motivated on the basis of operating and revenue cost Aware about the Low operating cost and high revenue cost . 3. Long lasting vehicle (generally person mindset that have a life of 5 to7 years). 4. Positioned a zip as a opportunity for self employment 5. Advertised zip as a Zabardast Indian Pehchan .(ZIP) 6. As the zip means nothing So you can relate it as a nothing is impossible . 7. As the Ace zip is newly launched vehicle it should offer schemes like more servicing or some extra benefits(like discount offer). So that the people will get more attracted towards the vehicle. 8. Positioned it as a cost per transportation is less it means you have as many trips as you can but the maintenance cost and operating cost will be low against the three wheeler. So that More you trip lesser you pay 9. Differentiate with Ace in a category i.e. Ace and Zip are made for two different segment. 10. Slow brake problem should be resolved. 11. Service issues and spare parts unavailability issues should be cleared. 12. As the Tata Ace has a market share of 69% So, it has a strong base and hold in the market so that base should be targeted or utilized first for the sale of Ace zip.

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

Bibliography:
1. Kotler Philip, Marketing Management, analysis, planning implementation and control, Prentice Hall of India Publishing, New Delhi. 2. Business Research Methods By Donald R Cooper, Pamela S Schindler.

3. Consumer Behavior By Hawkins (Tata McGraw Hills)

Regional college of Management, Bhubaneswar

Positioning of Tata Motors in Captive and Semi captive market

3WH VS TATA ACE ZIP VS TATA ACE


Piaggio Ape 3wh Tata Ace Zip Tata Ace

Payload Ex-showroom price Availability of finanace

500kg 1,69,000 High

600kg 2,15,000 Moderate

750kg 3,39,000 High

Downpayment Interest rates RTO Loan tenure Insurance Downpayment+ins+RTO Emi Overloading Trustworthiness Resale value

20% 10.9% 10,750 3 years 6897 62,547 4000-5000 Upto 800kg High Moderate

15-20% 15-20% 26,500 3 years 16800 75,500 6200-7000 Upto 900kg Moderate Moderate

10% 15% 26,500 3 years 18585 78,985 8500-9500 Upto 1500kg Very high High

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Positioning of Tata Motors in Captive and Semi captive market

Regional college of Management, Bhubaneswar