Tata Motors MindRovers '12 | MICA


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Tata Motors MindRovers '12 | MICA

  1. 1. TATA Motors Mindrovers 2013 The Mango Tree Rohit Rohan | Robin Chopra | Sidharth Uchil Mudra Institute of Communications - Ahmedabad
  2. 2. What are the problems at hand? Image diluted by extensive use of cars for commercial purposes Ambiguous definition of brand positioning Weak brand loyalty Lack of aspirational products in the current portfolio No demarcation between passenger vehicles and commercial vehicles Lack of connect with youth and women
  3. 3. We administered a qualitative questionnaire (Annexure 1) to 30 respondent belonging to varied age groups out of which 15 were females. The results and the inferences of the survey are also attached in Annexure 1 An unstructured exploratory research for individual brands was also conducted in the form of in-depth interviews with 10 respondents belonging to varied demographic and socio economic class. The insights and recommendations of the analysis are based on our primary and secondary research Despite its overreaching success in the B2B market, Tata motors has failed to recognize that the target group for the automobile industry are dominated by feelers and not thinkers. Tata industries have been successful in Decisions in the consumer segment are the B2B segments. However, in the B2C taken based as much on emotional segment, it has had to branch out into factors such as brand, looks and feel as stand alone brands – ex. Tanishq, Taj on features and value for money. etc. And what do we do about it? The aim of this presentation is to offer and emotional connect to the consumer through 3 stages. 2-3years | Eventually rebrand and adopt TMPV existing product line into the new luxury brand one by one. 1-2years | Launch a luxury sub brand positioned at achievement. 0-1 years| Rebranding and repositioning the existing TML. On legacy and heritage.
  4. 4. What is going on in the market? Rapid urbanisation Rising per capita GDP Overall industrial growth • Currently only 21% of the population lives in the urban areas • Given how India is performing, the figures are hoped to touch 35% by 2020 and 40% by 2030 • The per capita GDP of India increased from 1200 USD in 2011 to almost 1330 USD in 2012 • This is further expected cross the 2000 mark by 2015 • Increasing GDP gives increased purchasing power and hence increased demand for cars • Interdependent industries; growth of other industries will trickle to the automobile industry • Since transport is a basic need of every industry, demand for automobiles will rise with every positive change in an industry Car buyers getting younger • Median age of Indians is almost 26 years - much lower than the World’s biggest economies • The car buying age has been on a decline from 39 years in 2000 to 33 years in 2010 Growing middle class • Benefits derivable from middle class still untapped • Transition from the lower class to the middle class converts car into a need from a luxury Thus the projected market growth • Overall automobile production to expand by 9.6 per cent in 2012-13 • Passenger Vehicle Market to sell almost 5mn vehicles by 2017-2018 • Indian Auto Exports will also grow and cross the 17 billion USD mark by 2015-2016.
  5. 5. What is the competition up to? Ford • Expanded its diesel engine production capacity to counter petrol prices • Also has the capacity of producing 2 Lakh cars Isuzu • Planning to build a Greenfield project to target the small commercial vehicle and MUV segments. Renault • Launched SUV ‘Duster’ in petrol and diesel variants to enter the SUV market • Already launched 3 more vehicles this year prior to this M&M MSIL • Enjoyed success with Scorpio earlier • After spending 4 years in the Indian 2 wheeler segment, has launched its research and development (R&D) • Currently the largest player in the Indian automobiles market • Shall merge the group unit “Suzuki Powertrain India Ltd” to combine all the diesel manufacturing facilities are under the same management Also in the market 100% FDI policy has led to a turnover of 12 billion USD in the Indian auto industry No need for licensing and no restriction on import of auto components and efficient manpower are also boons
  6. 6. Individual brand analysis Car Price range Competitors Present Brand Image Intended positioning of Brand in future Nano 1.497 - 2.102 Alto, Spark world's cheapest car, innovative, high fuel economy, art on wheels The car should be positioned as Sporty and Trendy, a swift way to get through the city traffic. With the rising income levels for lower middle class, it should provide a volume based sales boost . Indica Hyundai Eon, i10, Santro, high durability, high fuel economy, low resale The car should continue innovating technically, providing good value Honda Brio, Chevy Beat, Zen 3.277 - 4.901 value, commercial vehicle. Low on class and for money, thus boosting sales for comemrcial purposes. Should be Estilo, Wagon R, Alto, Nissan sophistication positioned as the most fuel efficient car for 1st car buyers Micra Vista Indigo Manza 4.13-6.53 4.80-6.17 6.5-8.8 Swift, Ford Figo, Polo, Brio, Beat, i10, Santro, Fiat Punto, Nissan Micra an improved version of indica made to break the car should become sleeker and contniue upgrading its looks with free of commercial vehicle image. High on newer versions to take on competition effectively along with style quotient and value for money for continuing techincal innovation. It is poised to become tata's flagship personal use passenger car for the next few years. sedan built on the original indica. Most Fabia, Vento, Toyota Etios, inexpensive and affordable sedan. Low on the car should continue innovating technically, providing good value for Nissan Sunny, Mahindra style quotient and high on fuel economy. money, thus boosting sales for comemrcial purposes. Should be Verito Durable, but low resale value. Commercial car positioned as a luxury sedan offering value for money. image Vento, Fiat Linea, Honda City, Toyota Etios, Nissan Sunny, Mahindra Verito Aria 9.95-16.5 Toyota Innova, Mahindra Scorpio, Xylo, XUV Safari 8.3-13.5 Toyota Innova, Mahindra Scorpio, Xylo, XUV continue innovating on robust style quotient to shake off image of affordable and inexpensive sedan delivering commercial vehicle and techincal soundness to boost sales for personal high value for money. High on style quotient, use. The Manza is a masculine image representing a sturdy and strong durable and delivering affordable luxury body. failed because of confused consumer segment. Looks like a blown up version of Manza. Plain, unappealing looks and price considered too high for a 'bigger Manza' (response on questionnaire) Phase out from product line as it will continually struggle for sales and the brand image is now tarnished due to continuous comparisons with other successful crossovers such as Innova and XUV500 tries to connect with consumer on emotional position it strongly as an adventurous and thrilling SUV and leverage platform. Sturdy, durable and good value for on emotional connect in future. money in SUV segment
  7. 7. STAGE I | Rebranding of TML and its communication strategies Target group • age group of 25-50 years • socio economic segment A1, A2, B1, B2 • also be targeted at women The communication should come across in a way that the consumers place their faith in Tata motors as a brand keeping in mind their legacy and track record • This stage will be done within the first year of the rebranding process . It will aim to: • revive the brand • shrug off the ‘taxi’ image of its cars • repositioned using the rich heritage and history of the Tatas • make the brand appear more classy and energetic • make it ready to be youthful and friendly for women The emotions to which the communication must be targeted towards should be reliability and trust • Market needs to be effectively targeted to avoid spillage of one into another and spreading of negativity Tailored for each market based on demographic and psychographic, end usage (B2B, B2C) to produce maximum impact Brand building must be done specifically for the youth
  8. 8. STAGE II | Creation of new sub-brand • • • • • • This stage will be carried out in the second year of the rebranding process Tata motors should add some products in its portfolio that evokes a feeling of aspiration and achievement. The brand image of Tata motors at present is that of a secondary car which is bought only due to their affordability and high fuel efficiency. As per our research, Tata motors cars have been constantly rated low on their looks. Majority of respondents have said that they would rather be seen driving other cars than Tata cars in the same category (refer annexure) Tata needs to take on other brands such as Honda, Volkswagen, Toyota, Chevrolet, etc. in the ultra luxury segment and carve a reputed position for itself in the niche segment of sedans (18 lakh +). Sub-brand-image, identity and vision • • • • • • The brand needs to be positioned such that consumers of a segment one level lower to this segment will aspire to buy it. The first car to be launched should deliver superb luxury, comfort, technical excellence and most importantly a stunning design and looks. We intend to nurture this brand from the nascent stage and make sure it grows in a way so as to ensure that the level of aspiration and class stays central to the brand. The identity of this sub brand will be kept separate from that of Tata motors. This new brand will start by catering to the ultra luxury segment. The first car to be launched under this brand name will be a sedan that will be called Aurum. This sedan will be priced in the segment of 18lacks + and will take on cars such as Honda Accord, Toyota Camry, Hyundai sonata, Volkswagen Jetta etc. this brand will radiate class and sophistication and exclusivity.
  9. 9. Why the change of logos? Modification of the present logo - New logo to refresh brand perception - Proposed future logo for all commercial vehicles - Colour blue added to add stability, sincerity, integrity in the brand connect - The two T’s in the logo modified to make them look sleek - They extend out of the circle to represent ‘taking flight’ - Modifications done on the basis of (unstructured) exploratory research The proposed logo for the sub brand ‘Aurum’ - Designed in gold (to maintain consistency) with the name ‘Aurum’ - Black represents boldness and class - Leaves from the old Tata motors logo retained to add to royal feel - Also to subconsciously connect with the legacy of the Tatas - The new logo will be seen in all new ‘Aurum’ cars - Will radiate the feel of luxury and class - Will add to the proposed aspirational appeal for the cars - Since it is a logo different from that of commercial vehicles, will give a new brand identity to the passenger vehicles
  10. 10. STAGE III | Final brand architecture Present TATA Motors Commercial and passenger vehicles By the end of three years Commercial vehicles AURUM (heavy and light) (new passenger vehicles) Commercial vehicles only Commercial vehicles Existing product lines like Indica, Indigo, Safari etc. Aurum X After rebranding and repositioning Aurum Y Aurum Z
  11. 11. End of presentation Refer the next slides for annexures
  12. 12. Annexure 1 : Questionnaire and responses with respondent profiles to Gauge Brand Value and Image of TATA Motors as a parent Brand and Sub-Brand • Gender: • Males : 15 • Female :15 • Age: • 20-30 : 10 • 30-40 : 8 • 40-50 : 6 • 50+ : 6 • Occupation: (Members belonging to non-earning category are eliminated at this stage) • 4. Rate the following car brands according in your order of preference from 1-8 • Maruti Suzuki (6) • Ford (3) • Chevrolet (4) • Hyundai (7) • Tata (8) • Volkswagen (2) • Honda (1) • Toyota (5)
  13. 13. Annexure 1 : (continued) • Of the following cars in each option, pick the car which you would want to be seen driving: • Tata nano (9)/ maruti alto (21) • Tata indica Vista (17) / Maruti alto (13) • Tata Indica Vista (14) / Hyundai santro (16) • Tata Indigo manza (8) / Volkswagen Vento (22) • Tata Indigo Manza (17) / Volkswagen polo (13) • Tata indigo Manza (16) / Ford Figo (14) • Tata indigo Manza (14) / Maruti Swift (16) • Tata Safari Dicor (18) / Mahindra scorpio (12) • Tata Safari Dicor (10) / Renault Duster (14) (6 did not know about duster) • Tata Aria (10) / Toyota innova (20) • 6. What are the major factors on which your decision to buy a particular car varies/may vary: • Most repeated answers – • Looks | brand image| fuel efficiency | comfort | affordability • 7. If affordability, maintenance and running cost were the deciding factors behind your car- purchase-decision, which of the car would you choose from each pair: • Tata nano (17) / maruti alto (13) • Tata indica (15) / Maruti alto (15) • Tata Indica (14) / Hyundai santro (16) • Tata Indigo manza (17) / Volkswagen Vento (13) • Tata Indigo Manza (18) / Volkswagen polo (12) • Tata indigo Manza (16) / Ford Figo (14) • Tata indigo Manza (13) / Maruti Swift (17) • Tata Safari Dicor (19) / Mahindra scorpio (11) • Tata Safari Dicor (19) / Renault Duster (5) (6 did not know about duster) • Tata Aria (11) / Toyota innova (19)
  14. 14. Annexure 1 : (continued) • Please describe TATA motors in one sentence. • Mention three words that come to your mind when you hear “Products from Tata Motors” • Which particular emotion comes to your mind on mentioning tata motors • Rate the following characteristics on a scale of 1-5 for tata motors’ cars as per your knowledge • • • • • • Technical soundness 2.9 Popularity of vehicles amongst your peers 2.36 Style quotient 3.03 Durability of vehicle 3.1 Resale value 2.1 Price competitiveness 3.66 • 12. Will you recommend a tata car to your friends/ family? yes/no • Yes = 11 • No = 19 • 13. Why?
  15. 15. Annexure 2 : SWOT analysis of TML • BRAND STRENGHTS • • • • • • • Highly trusted brand: Reliability, Durability. Pioneers in Indian automobile technology. Evolved technical expertise via int’l JVs over the years. Perceived as a customer oriented brand. Global presence. Excellent channel partner network and service. Renowned research and development team. • BRAND OPPORTUNITIES • BRAND WEAKNESSES • • • • • • Perception of “Economical Cars”. Limited consumer target base. Limited variants portfolio in individual passenger vehicle offering No emotional connect with consumers. Consumers cars suffering from “taxi” image. No presence in the luxury segment of passenger cars (despite th JLR connection) • BRAND THREATS • A fast growing industry. • New car brands from abroad entering the market. • Wide range of concept cars to choose from. • Perception of Indian automobiles being inferior to foreign counterparts. • Can leverage the JLR and Daewoo connection to enter luxury segment. • Localisation of foreign automobiles. • Rising income of the average Indian consumer. • Growing opportunities for hybrid and electric cars.