TATA ACE RURAL MARKET STP

1. Presentation
on
TATA MOTORS Company
GROUP 1.
Aanchal Saxena
Aditi Gupta
Ankit Kumar Singh
Prasoon Pallav
Sameer Khan
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2. Overview of Automobile Industry
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The Indian Auto industry is one of the largest in the world.
The automobiles sector is compartmentalized in four different sectors which are as follows:
 Two-wheelers which comprise of mopeds, scooters, motorcycles and electric two-wheelers
 Passenger Vehicles which include passenger cars, utility vehicles and multi-purpose vehicles
 Commercial Vehicles that are light and medium-heavy vehicles
 Three Wheelers that are passenger carriers and goods carriers.
Market Size
The sales of PVs, CVs and 2Ws grew by 9.17 per cent, 3.03 per cent and 8.29 per cent
respectively, during the period April-January 2017.

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4. COMPANY PROFILE (TATA MOTORS)
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Tata Motors Limited, a USD 42 billion Organization, is a leading global
automobile manufacturer.
It is the world's fifth largest truck manufacturer and fourth largest bus
manufacturer.
Presence in 182 countries across the world
In 2008, Launched World’s cheapest car – TATA NANO

5. ENTRY TO THE RURAL MARKET & PRODUCTS
OFFERED
 Influence shopkeeper
 Making a wise decision
 Tax exemptions
ZEST
INDICA
ACE
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6. TATA ACE VARIENTS OFFERED FOR RURAL MARKET
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7. Companies Research on Rural Consumers
It has research and development centers in Pune, Jamshedpur, Lucknow, (India)
A research done by Tata Family in 2004, came to know that the most preferred choice of
small businessman and farmers was small commercial vehicle in 4 wheelers.
The preferred Payload was less than 1 tonnes.
 In November 2008, Tata Motors launched a rural programme, NEEV and tied up
with Indian Oil Corp. Ltd for distribution.
 In 2009, tie-ups with the Indian post office and SBI for financing and distribution.
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TATA ACE, was Launched

8. TATA MOTOR’s Segmentation
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Geographic
 Rural : More than 30,000 Villages with population of over
8000
 Semi Urban : Small Town with population between 20,000 –
50,000Demographic
 Age : 20 to 45
 Gender : Male
 Occupation : Truck Owners, First time LCV purchasers,
Small Traders and Farmers
Behavioral
 4 wheelers benefits : Style and Safety

9. Positioning of TATA ACE in
Rural and Semi- Urban Market
 India’s Mini Truck
 SMALL IS BIG
 Stability And Trust of Big Truck
 CHOTA HATHI 9

10. Targeting of TATA ACE in Rural and
Semi- Urban Market
 People who are planning to purchase 4 wheelers with
a payload of less than 1 tonne. ( 45% )
 Potential LCV purchaser ( 15% )
 First time commercial vehicle purchaser ( 40% )
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11. MARKETING MIX ( 4 P’s for tata ace )
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12. 4 A’s of Rural Marketing
Availability : Availability of the product or service because India’s 6,50,000+ villages are spread over 3.2
million sq km; 700 million Indians may live in rural areas, targeting them is not easy.
Affordability : The second major challenge is to ensure affordability of the product or service. So Ace is
priced within a budget of Rs 5 lakhs, for middle and lower income group.
Acceptability : The next challenge is to gain acceptability for the product or service. So they priced at
Rs 4.31 lakh, the Tata Ace has surpassed the 1.5 million sales mark in ten years.
Awareness : Building awareness is another challenge in rural marketing.
1. Media penetration in rural areas is only about 57%
2. 2 out of 5 Indians are unreached by any media - TV, Press, Radio and Cinema
3. Haats, mandis and melas are opportunities.
4. TATA Ace uses wall writing and radio advertising to drive its growth in rural areas.12

13. Innovation done by TATA Motors
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India’s first turbo-charged multi-point fuel injection (MPFI) petrol engine, the
Revotron1.2T engine, which powers the Zest and the Bolt.
This engine offer an optimum mix of fuel
economy, performance and refinement

14. Innovation for Rural Market
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Capacity of
0.75 tonne.
A combination of power, fuel efficiency,
affordability and superior performance
Compaq Size
Small turning
Radius
TATAACE

15. competitors
Major competitors of TATA ACE
are :-
• Maruti Suzuki Carry Turbo
• Mahindra Maxximo
• Askok Leyland Dost
• Piaggio Porter 600
• Mahindra Jeeto
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16. Success Mantra for Tata Ace
 Targeted the small transporter, poultry owner, vegetables vendor & village
farmer.
 Strong appeal in the rural market where bullock cart & muddy path gave way
to small pickup & tarred roads.
 Positioned itself as a “Chota hathi” which made rural people attract to the
product.
 Tata motors facilitated vehicle financing for purchasing Ace.
 Tata opened around 600 distributorship of Ace in rural market to increase their
market share.
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17. Future plans for Tata Ace
 Launch of ACE microbus
 Tata motors plan to launch two new vehicles every year
till 2020 in LMV segment.
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