Considers the strategy and experience of Tata Motors, India's leading commercial

truck maker, as it developed a new small commercial vehicle, the Tata Ace. Posi
tioned as a replacement for the three-wheelers that predominated as small comme
r cial vehicles in India, the Ace create a new product category and enabled Tata
M otors to access a new market segment. The company adopted tailored approaches
to product design, distribution, marketing, service, and sourcing for the vehic
le. After successfully targeting the niche, considers how Tata Motors might grow
it s presence in the segment with new models, enter new regional markets, expor
t to developing or developed countries, and face new competition. Segmentation >
Market serving vehicles carrying low load Targeting Tarhget marklet included: PO
eple planning tp purchase 3 wheelers Potential pickup and LCV purchanses(15%) Fi
rst time commercial vehicle purchasers(40%) POsitioning INdia's first mini truck
Small is big'stbility and trust of big truck Economic liberatio Feel good aboty
u the job 'Transportation at last mile Pricing perceived quality higher than the
competing 3 wheelers priced just bwyond the max price of 3-wheelers thoughcompe
titors sold at lesser price than the target price of tata ace, the va lue packag
e of ace was however higher than that of competitors >value pricing Place >Locat
ion close to target market P{lan located in Pune at time of launch Target market
s: siouthern and western regions Promotion >Target audience: # wheeler owners, o
wners of trucks, trucling fleet owners, fir st time LCV purchasers INformational
appeal of the products i.e the load capacity, power, etc used >economical benef
its of the product i;e better social status >Dealers were educated in the benefi
ts of Ace vs the competition Product >Product features- versatility, savings, st
yle, performance,confort, safety versatility >Idfeal for both city and rural >12
' tyre design - higher ground clearance and higer loading capacity >usage ranges
from vegetable vendors to cargo pickup to passenger transport Savings >Comforta
ble conditions for the driverallow the ace to travel over 500 kms a day electron
ic start and stop increse mileage by 6-10 percent lower operating costs and high
ly reliable - an altogether safe investment for sm all time businessmen Safety >
Easily accessible hazard warning switch for emergency'HIgh performance byu fron

t disc brakes and rear drum brakes, structural strength Comfort >lowest loading
height of 675 mm, heavy loads can be conveniently placed in load body Style >Fla
t faced large commercial vehicle look Smooth external finish - exquisite look',
styled dashboard ================================= Tata Motors decided to develo
p Ace, after a study it conducted found that custom ers wanted a last mile distr
ibution vehicle8 that had low maintenance costs, hig her driver safety, and bett
er driving comfort. In line with these customer requi rements, Tata Motors devel
oped and launched Ace, which became a success in the m arket. Experts opined tha
t the main reason for the success of Ace was that customers we re given a produc
t that looked and performed better than the existing alternativ es. Various valu
e enhancers such as car-like features in the drivers cabin, attracti ve finishin
g, etc. helped improve the value perceived by customers... One reason was that A
ce was a four-wheeler vehicle and had to compete with three -wheelers, which wer
e priced much lower than it.