SlideShare a Scribd company logo
1 of 2
Download to read offline
Case Study: TATA ACE
The resounding success of Tata Ace, a mini-truck with an engine capacity of less than one ton launched by Tata
Motors in 2005, was due to a deep understanding of the market needs and customer requirements. The company
realized that with the booming Indian economy there would be a demand for large multi-axle trucks which could
transport materials more efficiently. At the same time, this would also necessitate a demand for smaller vehicles on
feeder routes for the hub-and-spoke type of arrangement. This would require smaller vehicles, which are capable
of navigating through the narrow roads and by-lanes of cities, small towns, and villages, to service the feeder
routes. At that time, the market for transporting small loads over short distances had been cornered by the threewheeler majors like Bajaj and Piaggio. In order to compete effectively with the three-wheeler majors who
dominated the market for small payload vehicles, the company needed to offer a better solution to the customers.
The solution was in the market, and that is where the engineers went—to talk to the transporters, the small traders,
and the farmers—to understand their needs and requirements.
Discussions with potential customers and a detailed market research indicated that there was indeed a need for a
vehicle for transporting sub one ton loads over small distances. Customers wanted a last mile distribution vehicle
that had low maintenance costs, higher driver safety, and better driving comfort. What came out more strongly was
the social status that small traders, transporters and farmers associated with a four-wheeler “truck.” Accordingly, it
was decided that the vehicle should be positioned as a Tata truck in mini size with a competitive price tag while
maintaining high quality standards. Pricing was a crucial issue as the vehicle had to be priced in comparison to the
three- wheelers, and therefore the cost had to be reduced. This was achieved through a combination of using and
modifying parts already developed for other vehicles in the Tata stable, and outsourcing, which constituted as
much as 82 percent of the product.
As the commercial-vehicle owners were concerned with the turnaround time of the vehicle for the next trip and the
loading capacity, Tata Ace was designed to achieve top speeds of about 8-14 kph higher than that of the other
three-wheelers, and also a cargo bed bigger than the existing three-wheelers. Thus, Tata Ace was fitted with a
700cc engine capable of delivering 16bhp, suitable for both rural and urban use, with the ability of carrying a
variety of payloads, and with the agility to navigate narrow by-lanes owing to its lower turning radius. The sporty
car-like features were modelled to ensure comfort in ride and handling while differentiating the vehicle from the
three-wheelers. The sleek appearance as well as the positioning as a truck in mini size reinforced the social prestige
aspect.
The vehicle was advertised using the symbol of a baby elephant with the tag line “small is big”. It was launched
with a 15 to 20 percent higher price tag than that of a comparable model of three-wheeler. As the vehicle operated
only within a limited radius, the service points had to be closer to the vehicles’ operating routes. For this purpose,
the company augmented the service network by training automobile garages that were branded as Tata-certified
service points.
Within 22 months of the launch of the vehicle, the company rolled out the 1,00,000th Ace, surpassing its own
optimistic estimates by a huge margin. Besides the Indian market, Tata Ace was also launched in the international
markets of Sri Lanka and Nepal.

Questions for Discussion
Q1. Henry Ford said that customers could get cars of any color as long as it was black, while Tata Motors went to
customers before designing Ace and asked them about the price and features that they wanted. Compare and
contrast between these two approaches.
Q2. Identify two activities done by Tata Motors while applying Marketing concept for developing Ace.
Q3. What are the different types of benefits or gratifications that consumers can draw from a product or a service?
Discuss with respect to the case.
Tata case

More Related Content

What's hot

The tata ace section s3 - group 4
The tata ace   section s3 - group 4The tata ace   section s3 - group 4
The tata ace section s3 - group 4Arjun Choudhry
 
Tata Indica The making of the Small car
Tata Indica The making of the Small carTata Indica The making of the Small car
Tata Indica The making of the Small carsush0888
 
Knowledge Management in TATA Motors
Knowledge Management in TATA MotorsKnowledge Management in TATA Motors
Knowledge Management in TATA MotorsAnirudha Bhaduri
 
Con project on eicher motors by vinay khatri.doc main main
Con project on eicher motors  by vinay khatri.doc  main mainCon project on eicher motors  by vinay khatri.doc  main main
Con project on eicher motors by vinay khatri.doc main mainVinay Jeengar
 
BCBEM final presentation- TATA Motors
BCBEM final presentation- TATA MotorsBCBEM final presentation- TATA Motors
BCBEM final presentation- TATA MotorsSiddharth Dhamija
 
Tata Ace Zip production milestone - Press Release
Tata Ace Zip production milestone - Press ReleaseTata Ace Zip production milestone - Press Release
Tata Ace Zip production milestone - Press ReleaseRushLane
 
Revival of TATA Nano || Case Study of TATA Nano
Revival of TATA Nano || Case Study of TATA NanoRevival of TATA Nano || Case Study of TATA Nano
Revival of TATA Nano || Case Study of TATA NanoSushil Prasad Sharma
 
tata nano vs maruti market strategy
tata nano vs maruti market strategytata nano vs maruti market strategy
tata nano vs maruti market strategynarenderkajal6
 
Tata nano vs maruti 800
Tata nano vs maruti 800Tata nano vs maruti 800
Tata nano vs maruti 800Japjeev Kohli
 

What's hot (20)

Corporate Presentation -2011
Corporate Presentation -2011Corporate Presentation -2011
Corporate Presentation -2011
 
Tata ace
Tata aceTata ace
Tata ace
 
The tata ace section s3 - group 4
The tata ace   section s3 - group 4The tata ace   section s3 - group 4
The tata ace section s3 - group 4
 
Tata Indica The making of the Small car
Tata Indica The making of the Small carTata Indica The making of the Small car
Tata Indica The making of the Small car
 
Tata Indica
Tata IndicaTata Indica
Tata Indica
 
Tata Ppt Ver2
Tata Ppt Ver2Tata Ppt Ver2
Tata Ppt Ver2
 
Indica
IndicaIndica
Indica
 
Tata Indica
Tata IndicaTata Indica
Tata Indica
 
Tata indica
Tata indicaTata indica
Tata indica
 
Tata Indica
Tata IndicaTata Indica
Tata Indica
 
Knowledge Management in TATA Motors
Knowledge Management in TATA MotorsKnowledge Management in TATA Motors
Knowledge Management in TATA Motors
 
Tata motors 1
Tata motors 1Tata motors 1
Tata motors 1
 
Tata Motors
Tata MotorsTata Motors
Tata Motors
 
Tata motors
Tata motorsTata motors
Tata motors
 
Con project on eicher motors by vinay khatri.doc main main
Con project on eicher motors  by vinay khatri.doc  main mainCon project on eicher motors  by vinay khatri.doc  main main
Con project on eicher motors by vinay khatri.doc main main
 
BCBEM final presentation- TATA Motors
BCBEM final presentation- TATA MotorsBCBEM final presentation- TATA Motors
BCBEM final presentation- TATA Motors
 
Tata Ace Zip production milestone - Press Release
Tata Ace Zip production milestone - Press ReleaseTata Ace Zip production milestone - Press Release
Tata Ace Zip production milestone - Press Release
 
Revival of TATA Nano || Case Study of TATA Nano
Revival of TATA Nano || Case Study of TATA NanoRevival of TATA Nano || Case Study of TATA Nano
Revival of TATA Nano || Case Study of TATA Nano
 
tata nano vs maruti market strategy
tata nano vs maruti market strategytata nano vs maruti market strategy
tata nano vs maruti market strategy
 
Tata nano vs maruti 800
Tata nano vs maruti 800Tata nano vs maruti 800
Tata nano vs maruti 800
 

Similar to Tata case

Nano a dream car for the poor
Nano   a dream car for the poorNano   a dream car for the poor
Nano a dream car for the poorAdvait Bhobe
 
CRM in Automotive industry-TATAmotors
CRM in Automotive industry-TATAmotorsCRM in Automotive industry-TATAmotors
CRM in Automotive industry-TATAmotorsPradeep Singh
 
Successful brand Unsuccessful brand
Successful brand Unsuccessful brandSuccessful brand Unsuccessful brand
Successful brand Unsuccessful brandAshish prashar
 
Industrial analysis of TATA Motors
Industrial analysis of TATA MotorsIndustrial analysis of TATA Motors
Industrial analysis of TATA MotorsJeril Peter
 
Tata Motors (Nano Failure).pptx
Tata Motors (Nano Failure).pptxTata Motors (Nano Failure).pptx
Tata Motors (Nano Failure).pptxPulkitChoudhary14
 
How Tata Yodha Pickup Helps You Tackle Growing Diesel Prices | Tata Pickup Tr...
How Tata Yodha Pickup Helps You Tackle Growing Diesel Prices | Tata Pickup Tr...How Tata Yodha Pickup Helps You Tackle Growing Diesel Prices | Tata Pickup Tr...
How Tata Yodha Pickup Helps You Tackle Growing Diesel Prices | Tata Pickup Tr...TataPickup1
 
Case study on TATO NANO-VATION
Case study on TATO NANO-VATIONCase study on TATO NANO-VATION
Case study on TATO NANO-VATIONNarasimha c
 
Profitability of tata motors ltd.
Profitability of tata motors ltd.Profitability of tata motors ltd.
Profitability of tata motors ltd.Aman Khera
 
114 Huma Nazneen.pdf
114 Huma Nazneen.pdf114 Huma Nazneen.pdf
114 Huma Nazneen.pdfpunambanra78
 
Ultra low cost car
Ultra low cost car  Ultra low cost car
Ultra low cost car CALM-SUTRA
 
after sales sarvice
after sales sarviceafter sales sarvice
after sales sarviceRohit Katagi
 
Tata motors final project on consumer satisfaction.
Tata motors final project on consumer satisfaction.Tata motors final project on consumer satisfaction.
Tata motors final project on consumer satisfaction.Joydip Roy
 
automobile industry
automobile industryautomobile industry
automobile industryRaj Gupta
 

Similar to Tata case (20)

Nano a dream car for the poor
Nano   a dream car for the poorNano   a dream car for the poor
Nano a dream car for the poor
 
CRM in Automotive industry-TATAmotors
CRM in Automotive industry-TATAmotorsCRM in Automotive industry-TATAmotors
CRM in Automotive industry-TATAmotors
 
Marketing Strategy
Marketing StrategyMarketing Strategy
Marketing Strategy
 
Successful brand Unsuccessful brand
Successful brand Unsuccessful brandSuccessful brand Unsuccessful brand
Successful brand Unsuccessful brand
 
Industrial analysis of TATA Motors
Industrial analysis of TATA MotorsIndustrial analysis of TATA Motors
Industrial analysis of TATA Motors
 
Tata Motors (Nano Failure).pptx
Tata Motors (Nano Failure).pptxTata Motors (Nano Failure).pptx
Tata Motors (Nano Failure).pptx
 
How Tata Yodha Pickup Helps You Tackle Growing Diesel Prices | Tata Pickup Tr...
How Tata Yodha Pickup Helps You Tackle Growing Diesel Prices | Tata Pickup Tr...How Tata Yodha Pickup Helps You Tackle Growing Diesel Prices | Tata Pickup Tr...
How Tata Yodha Pickup Helps You Tackle Growing Diesel Prices | Tata Pickup Tr...
 
Case study on TATO NANO-VATION
Case study on TATO NANO-VATIONCase study on TATO NANO-VATION
Case study on TATO NANO-VATION
 
Profitability of tata motors ltd.
Profitability of tata motors ltd.Profitability of tata motors ltd.
Profitability of tata motors ltd.
 
Tata nano
Tata nanoTata nano
Tata nano
 
114 Huma Nazneen.pdf
114 Huma Nazneen.pdf114 Huma Nazneen.pdf
114 Huma Nazneen.pdf
 
STP OF TATA ACE
STP OF TATA ACESTP OF TATA ACE
STP OF TATA ACE
 
Tata Nano
Tata NanoTata Nano
Tata Nano
 
Mkt mini project
Mkt  mini projectMkt  mini project
Mkt mini project
 
Rural marketing
Rural marketingRural marketing
Rural marketing
 
Ultra low cost car
Ultra low cost car  Ultra low cost car
Ultra low cost car
 
after sales sarvice
after sales sarviceafter sales sarvice
after sales sarvice
 
Tata motors final project on consumer satisfaction.
Tata motors final project on consumer satisfaction.Tata motors final project on consumer satisfaction.
Tata motors final project on consumer satisfaction.
 
automobile industry
automobile industryautomobile industry
automobile industry
 
Tata motors
Tata motorsTata motors
Tata motors
 

More from Sumit Malhotra (20)

Types of retailing done
Types of retailing doneTypes of retailing done
Types of retailing done
 
Retail communications done
Retail communications doneRetail communications done
Retail communications done
 
Retail
RetailRetail
Retail
 
Retail buying behaviour
Retail buying behaviourRetail buying behaviour
Retail buying behaviour
 
Merchandising
MerchandisingMerchandising
Merchandising
 
What does retailer do
What does retailer doWhat does retailer do
What does retailer do
 
Banking tools
Banking toolsBanking tools
Banking tools
 
Introduction to indian banking
Introduction to indian bankingIntroduction to indian banking
Introduction to indian banking
 
Debt recovery
Debt recoveryDebt recovery
Debt recovery
 
Bank
BankBank
Bank
 
Project cycle
Project cycleProject cycle
Project cycle
 
Intro to ventures
Intro to venturesIntro to ventures
Intro to ventures
 
Dmaic model
Dmaic modelDmaic model
Dmaic model
 
99 % syndrome
99 % syndrome99 % syndrome
99 % syndrome
 
Resistant to change 2 copy (1)
Resistant to change 2   copy (1)Resistant to change 2   copy (1)
Resistant to change 2 copy (1)
 
Location decision
Location decisionLocation decision
Location decision
 
Jit and lean operations
Jit and lean operationsJit and lean operations
Jit and lean operations
 
Introduction to pom
Introduction to pomIntroduction to pom
Introduction to pom
 
Product design
Product designProduct design
Product design
 
Viral
ViralViral
Viral
 

Recently uploaded

Protein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxProtein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxvidhisharma994099
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfMohonDas
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17Celine George
 
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17Celine George
 
Over the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxOver the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxraviapr7
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapitolTechU
 
KARNAADA.pptx made by - saransh dwivedi ( SD ) - SHALAKYA TANTRA - ENT - 4...
KARNAADA.pptx  made by -  saransh dwivedi ( SD ) -  SHALAKYA TANTRA - ENT - 4...KARNAADA.pptx  made by -  saransh dwivedi ( SD ) -  SHALAKYA TANTRA - ENT - 4...
KARNAADA.pptx made by - saransh dwivedi ( SD ) - SHALAKYA TANTRA - ENT - 4...M56BOOKSTORE PRODUCT/SERVICE
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...CaraSkikne1
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
Optical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxOptical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxPurva Nikam
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.EnglishCEIPdeSigeiro
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptxmary850239
 
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...Dr. Asif Anas
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsEugene Lysak
 

Recently uploaded (20)

Protein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptxProtein Structure - threading Protein modelling pptx
Protein Structure - threading Protein modelling pptx
 
Department of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdfDepartment of Health Compounder Question ‍Solution 2022.pdf
Department of Health Compounder Question ‍Solution 2022.pdf
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17
 
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....Riddhi Kevadiya. WILLIAM SHAKESPEARE....
Riddhi Kevadiya. WILLIAM SHAKESPEARE....
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17
 
Over the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptxOver the counter (OTC)- Sale, rational use.pptx
Over the counter (OTC)- Sale, rational use.pptx
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptx
 
KARNAADA.pptx made by - saransh dwivedi ( SD ) - SHALAKYA TANTRA - ENT - 4...
KARNAADA.pptx  made by -  saransh dwivedi ( SD ) -  SHALAKYA TANTRA - ENT - 4...KARNAADA.pptx  made by -  saransh dwivedi ( SD ) -  SHALAKYA TANTRA - ENT - 4...
KARNAADA.pptx made by - saransh dwivedi ( SD ) - SHALAKYA TANTRA - ENT - 4...
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
Optical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptxOptical Fibre and It's Applications.pptx
Optical Fibre and It's Applications.pptx
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptx
 
Finals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quizFinals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quiz
 
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
Unveiling the Intricacies of Leishmania donovani: Structure, Life Cycle, Path...
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George Wells
 

Tata case

  • 1. Case Study: TATA ACE The resounding success of Tata Ace, a mini-truck with an engine capacity of less than one ton launched by Tata Motors in 2005, was due to a deep understanding of the market needs and customer requirements. The company realized that with the booming Indian economy there would be a demand for large multi-axle trucks which could transport materials more efficiently. At the same time, this would also necessitate a demand for smaller vehicles on feeder routes for the hub-and-spoke type of arrangement. This would require smaller vehicles, which are capable of navigating through the narrow roads and by-lanes of cities, small towns, and villages, to service the feeder routes. At that time, the market for transporting small loads over short distances had been cornered by the threewheeler majors like Bajaj and Piaggio. In order to compete effectively with the three-wheeler majors who dominated the market for small payload vehicles, the company needed to offer a better solution to the customers. The solution was in the market, and that is where the engineers went—to talk to the transporters, the small traders, and the farmers—to understand their needs and requirements. Discussions with potential customers and a detailed market research indicated that there was indeed a need for a vehicle for transporting sub one ton loads over small distances. Customers wanted a last mile distribution vehicle that had low maintenance costs, higher driver safety, and better driving comfort. What came out more strongly was the social status that small traders, transporters and farmers associated with a four-wheeler “truck.” Accordingly, it was decided that the vehicle should be positioned as a Tata truck in mini size with a competitive price tag while maintaining high quality standards. Pricing was a crucial issue as the vehicle had to be priced in comparison to the three- wheelers, and therefore the cost had to be reduced. This was achieved through a combination of using and modifying parts already developed for other vehicles in the Tata stable, and outsourcing, which constituted as much as 82 percent of the product. As the commercial-vehicle owners were concerned with the turnaround time of the vehicle for the next trip and the loading capacity, Tata Ace was designed to achieve top speeds of about 8-14 kph higher than that of the other three-wheelers, and also a cargo bed bigger than the existing three-wheelers. Thus, Tata Ace was fitted with a 700cc engine capable of delivering 16bhp, suitable for both rural and urban use, with the ability of carrying a variety of payloads, and with the agility to navigate narrow by-lanes owing to its lower turning radius. The sporty car-like features were modelled to ensure comfort in ride and handling while differentiating the vehicle from the three-wheelers. The sleek appearance as well as the positioning as a truck in mini size reinforced the social prestige aspect. The vehicle was advertised using the symbol of a baby elephant with the tag line “small is big”. It was launched with a 15 to 20 percent higher price tag than that of a comparable model of three-wheeler. As the vehicle operated only within a limited radius, the service points had to be closer to the vehicles’ operating routes. For this purpose, the company augmented the service network by training automobile garages that were branded as Tata-certified service points. Within 22 months of the launch of the vehicle, the company rolled out the 1,00,000th Ace, surpassing its own optimistic estimates by a huge margin. Besides the Indian market, Tata Ace was also launched in the international markets of Sri Lanka and Nepal. Questions for Discussion Q1. Henry Ford said that customers could get cars of any color as long as it was black, while Tata Motors went to customers before designing Ace and asked them about the price and features that they wanted. Compare and contrast between these two approaches. Q2. Identify two activities done by Tata Motors while applying Marketing concept for developing Ace. Q3. What are the different types of benefits or gratifications that consumers can draw from a product or a service? Discuss with respect to the case.