Tata Ace Serving An Ace

28,547 views

Published on

19 Comments
28 Likes
Statistics
Notes
No Downloads
Views
Total views
28,547
On SlideShare
0
From Embeds
0
Number of Embeds
56
Actions
Shares
0
Downloads
0
Comments
19
Likes
28
Embeds 0
No embeds

No notes for slide
  • It’s difficult to get spare parts of ape truck – low in serviceGood resale value
  • Ray of hope - Improving rural access by launching the PradhanMantri Gram SadakYojana (Prime Minister’s Rural Roads Program) – 10th 5 yr plan
  • Tata Ace Serving An Ace

    1. 1. We begin with a story!!<br /><ul><li> Name: RavindraSalukhe
    2. 2. Sells vegetables and fruits
    3. 3. Upmarket Cuffe Parade in </li></ul> South Mumbai<br /><ul><li> A shop area of 1.5X2.2 sq. mtrs.
    4. 4. Borrowed Rs 1 lakh from his</li></ul> brother & balance from ICICI<br /><ul><li> Pays an EMI of Rs 6,500</li></ul>The reason: his mobile grocery unit, a TATA ACE, earns him a monthly income much higher than his EMI payout.<br />Source: Business Standard Article : Serving a ‘super’ ace 05.11.2009<br />
    5. 5. SERVING AN ‘ACE’<br />MARKETING-II: CASE PRESENTATION<br />
    6. 6. Agenda<br />LCV Segment & Road Infrastructure (India)<br />TATA Motors<br />Gap Analysis & Market Research<br />Existing Competition<br />STP<br />New Product Design<br />4Ps<br />Servicing Mix<br />CRM<br />Launch & Response<br />Branding<br />The Way Ahead<br />
    7. 7. “TATA ACEbears testament to the company’s efforts to identifynew categories & develop logistic solutions that will improve the lives of the people.”<br />Ravi Kant, Vice Chairman, Tata Motors <br />Source: THE HINDU: Making Inroads Serving a ‘super’ ace 06.05.2005<br />
    8. 8. WINNER OF BBC ‘TOP GEAR DESIGN OF THE YEAR 2006’ AWARD<br />
    9. 9. Redefining the adjectives!<br />
    10. 10. LCV<br />SEGMENT <br />
    11. 11. Segment Overview<br /><ul><li>Structure of Indian CV Segment
    12. 12. Classified on Gross vehicle weight (GVW)
    13. 13. GCW<7.5tonnes – LCV
    14. 14. Goods 77% + passenger carriers 23%
    15. 15. 45% LCV + 55% M/HCV</li></ul>Source: SIAM & ICRA CV Sector Report April 2009<br />
    16. 16. Demand Drivers<br /><ul><li>GDP/IIP & Freight Outlook- High degree of correlation
    17. 17. Fuel price- PBIT rises 3.5% for a 1% decline in fuel prices
    18. 18. Policy initiatives
    19. 19. Discouraging the use of old, polluting and uneconomical vehicles.
    20. 20. Supreme Court ban on overloading, Leading to incremental volumes in the last 2 yrs
    21. 21. Scrapping vehicles >15 years old; Potentially unleash a huge replacement demand.
    22. 22. Replacement cycle- Declining from about 12 years to nearly 7 years now. The proportion of trucks under five years of age rose from about 34% in FY02 to nearly 45% in FY06
    23. 23. Indian Railways Freight Services- Vis-à-vis the railways, the share of road transport currently stands at about 65%.
    24. 24. Easy availability of finance at low interest rate</li></ul>Source: DBS Cholamandalam Securities Ltd.<br />
    25. 25. LCV Segment Overview : FY08<br />
    26. 26. PEST Analysis<br />Economic<br />
    27. 27. PEST Analysis<br />
    28. 28. Road<br />Infrastructure<br />
    29. 29. Facts & Figures<br /><ul><li>3.32 million kms road, 2% Highways, 12% of this 2% four lane
    30. 30. Traffic in cities, entry barriers/ timing barriers for heavy vehicles
    31. 31. Poor rural road connectivity
    32. 32. Ban of 3-wheelers on flyovers due to slower speeds & safety considerations
    33. 33. Golden Quadrilateral Project
    34. 34. PradhanMantriGraminSadakYojana</li></li></ul><li>TATAMOTORS<br />
    35. 35. TATA MOTORS<br />Mr. Ratan Tata<br />Mr. Ravi Kant<br />Mr. GirishWagh<br />PEOPLE BEHIND “ACE”<br />TATA MOTORS’ ACHIEVEMENTS<br />
    36. 36. Product Range<br />
    37. 37. FINANCIALS<br />
    38. 38. TATA Motors-Financials for FY 09<br /><ul><li>Basic Earning Per Share (EPS) decreased to Rs. 22.70 as compared to Rs. 52.64 last year for Ordinary Shares.</li></li></ul><li>GAP ANALYSIS<br />
    39. 39. The idea of a vehicle called Ace: GAP analysis<br />Market Situation<br /><ul><li>Government plans of road network expansion.
    40. 40. Higher GDP growth positively correlated with truck penetration.
    41. 41. High probability of increased demand in LCV segment.</li></ul>Company Situation<br /><ul><li>Tata product portfolio lacked greater than 45tons and sub 2 ton vehicles.
    42. 42. Scope of enhancing the market share was there</li></li></ul><li>GAP Analysis<br />
    43. 43. GAP Analysis: Value Net Model<br />Customers: Balanced perspective and ROI sensitive customers would buy the product<br />Suppliers: TATA could utilize its existing supplier base<br />Competitors: There was no competition in the identified product segment<br />Complementors: The Government road network improvement schemes and high GDP growth rate of the country<br />SOURCE: 12manage.com<br />
    44. 44. GAP Analysis: Company strategy<br />Basis of Strategy<br /><ul><li>Value Net Model</li></ul>Strategy Adopted<br /><ul><li>New Product Development</li></ul>Company Decision<br /><ul><li>AddTata Ace, “The Last Mile” distribution vehicle to the Product Portfolio</li></li></ul><li>ANSOFF Matrix<br />
    45. 45. MARKETRESEARCH<br />
    46. 46. Market Research Objectives<br />
    47. 47. Collection of Information<br />Sampling plan: Ajudgmental sampling technique was used <br />Contact method: Personal interview<br />Data: <br />Primary datawas used<br />Research Instrument:<br />Questionnaires<br />4000 truck and three wheeler drivers were interviewed!<br />
    48. 48. Information analysis and findings<br />There was market for a vehicle that offered the price, fuel efficiency, and maneuverability of a three wheeler but with the safety, durability, additional payload, and comfort of a four-wheeled truck.<br />Customers also viewed four wheelers as a higher-status vehicle.<br />Customers wanted a product that would travel across the length and breadth of the country and would withstand overloading.<br />People wanted a vehicle with a feel good factor for the driver.<br />In order to convert the prospective consumers into potential consumers the price had to be below 2lacs. <br />45% of the Ace’s customer base would come from people planning to purchase three wheelers, 15% from potential pickup and light-commercial-vehicle purchasers, and 40% from first-time commercial-vehicle purchasers.<br />
    49. 49. Decision making<br />
    50. 50. Existing<br />Competition<br />
    51. 51. Competition<br />Commercial Vehicle Sector<br />
    52. 52. Players in 3 wheeled vehicles<br />
    53. 53. Players in 4 wheeled vehicles<br />
    54. 54. SEGMENTATION<br />
    55. 55. Functional Market Segmentation<br />
    56. 56. CUSTOMER MARKET SEGMENTATION<br />Customer Market Segmentation was done within the functional market segments<br />
    57. 57. Customer Market Segmentation<br />
    58. 58. Customer Market Segmentation<br />
    59. 59. TARGETING<br />
    60. 60. Targeting<br />
    61. 61. Positioning<br />
    62. 62. Positioning<br />Safaltakinayisawari – jo do lakhzindagibadalchukahai – aapkachotahathi<br /><ul><li>Positioned as ChotaHathi
    63. 63. A symbol of power
    64. 64. A symbol of ‘mini’ product
    65. 65. A symbol of reliability</li></li></ul><li>Positioning<br />A PRODUCT <br />FOR<br />ALL YOUR NEEDS<br />Boy rushing to school<br />Off to work in Tata ACE<br />Wife seeing husband off for the day<br />To school in Tata ACE<br />
    66. 66. Positioning Statements<br />
    67. 67. Competitive Positioning<br />Savings<br />Savings<br />Force Motors Minidor<br />Bajaj GC Max<br />Bajaj GC Max<br />M & M Champion<br />M & M Champion<br />Tata ACE<br />Tata ACE<br />M & M Maxx<br />Piaggio Ape Truck<br />Piaggio Ape Truck<br />Tata SFC 407<br />Eicher 10.xx<br />Eicher 10.xx<br />Swaraj Mazda Cosmo<br />Swaraj Mazda Cosmo<br />Performance<br />Style & Comfort<br />Performance<br />Style & Comfort<br />Piaggio Ape Truck<br />Tata ACE<br />Tata ACE<br />Tata SFC 407<br />M & M Maxx<br />Service<br />Service<br />
    68. 68. PRODUCT<br />DESIGN<br />
    69. 69. Designing the ACE<br /> ENHANCING OVERLOADING CAPACITY<br /><ul><li> Per unit cost of transportation perceived as a much </li></ul> desired quality. Acceleration not of much importance<br /><ul><li> Overloading stress points identified using CAD
    70. 70. Higher strength steel used only there to come out with</li></ul> low cost yet durable product.<br /><ul><li> Semi-monocoque frame</li></li></ul><li>Designing the ACE<br />ENGINE SELECTION<br /><ul><li> Customer preference – Diesel engine and 1 engine </li></ul> option ruled out due to NVH targets<br /><ul><li> Foreign made 4 cylinder engine would double cost and HP
    71. 71. Indica model based 2 cylinder engine reduced costs
    72. 72. Rotary fuel injection pump met emissions standard and</li></ul> avoided use of electronic system<br />
    73. 73. Designing the ACE<br />SAFETY AND COMFORT<br /><ul><li> In spite of strict cost target, M1/N1 standard</li></ul> adhered to .<br /><ul><li> Customers were not for Semi forward engine
    74. 74. Flat faced model adhered to which gave it a large </li></ul>commercial vehicle look and better space <br /> utilization.<br /><ul><li> Full frontal crash requirement</li></li></ul><li>Product<br />
    75. 75. PRODUCT- TATA ACE<br /> “At the heart of any great brand lies a great product”<br />BBC Top Gear’s Annual “Best commercial vehicle design” Award winner -2006<br />
    76. 76. Product Specifications<br />SPECIFICATIONS<br />
    77. 77. Product Features<br />
    78. 78. Tata Ace differentiation - Versatility<br /><ul><li>Ideal for both City and rural areas.
    79. 79. 12” tyres give higher ground clearance and</li></ul>higher loading capacity<br /><ul><li> Rigid front axle for Indian conditions & a turning radius of 8.6m
    80. 80. The truck-like strength of the front and rear leaf spring </li></ul> suspensions provide a smooth riding experience<br /><ul><li>Usages range from vegetable vendors to cargo pickup to </li></ul> passenger transport.<br />
    81. 81. Tata Ace differentiation - Savings<br /><ul><li>Comfortable conditions for the driver allow the ACE to</li></ul> travel over 500 kms a day<br /><ul><li> Electronic start and stop increases mileage by 6-10 </li></ul>Kmpl.<br /><ul><li>Flat, large loading area gives a fantastic opportunity to</li></ul> earn higher business revenue <br /><ul><li> Low operating costs and highly reliable – an</li></ul> altogether safe investment for small time <br /> businessmen<br />Ample load space with three side panels<br />
    82. 82. Tata Ace differentiation - Safety<br /><ul><li> M1/N1 safety norms for frontal crash, roof crush etc
    83. 83. Seat belts & bright halogen bulbs Headlamps
    84. 84. High performance by front disc brakes & rear drum brakes
    85. 85. Large windscreen, large rear-view mirror and the large rear window
    86. 86. Easily accessible hazard warning switch for emergency
    87. 87. The frontal windshield was pasted to the steel window frame to add </li></ul>structural strength<br />
    88. 88. Tata Ace differentiation - Comfort<br /><ul><li> Sheet metal cab with doors, roof lining, floor mat </li></ul>protect from rain, heat and cold<br /><ul><li> Control pedals, gear shift and parking brake </li></ul>ergonomically positioned for comfort<br /><ul><li> Higher door opening angle and low floor height for</li></ul>easy boarding <br /><ul><li> Sun visor for protection from direct glare</li></li></ul><li>Tata Ace differentiation - Performance<br /><ul><li>700cc engine delivers a power of 16 HP @ 3200 rpm
    89. 89. Torque of 3.8 m kg @ 2000 rpm
    90. 90. Soft cushion seats and back support
    91. 91. Meets BS II and BS III standards
    92. 92. Lowest loading height of 675 mm, heavy loads can be conveniently placed in the load body
    93. 93. The 4-forward synchromesh +1 gear box gives smooth shifting</li></li></ul><li>Tata Ace differentiation - Style<br /><ul><li> Styled dashboard with tray, digital clock, radio fitment provision, utility</li></ul> tray and clearly visible instrument cluster<br /><ul><li> Smooth external finish - exquisite look
    94. 94. Flat faced large commercial vehicle look.
    95. 95. Lockable glove-box for keeping valuable documents
    96. 96. A spare wheel attached to the lockable swing frame at the rear</li></li></ul><li>Tata Ace variants<br />
    97. 97. ACE : Product Life Cycle<br />
    98. 98. Target Segment for TATA Magic<br />
    99. 99. Tata Ace Magic<br /><ul><li> A frills-free, affordable transportation</li></ul>solution for rural commuter<br /><ul><li> Passenger version of Tata Ace
    100. 100. Customer insight -ACE being used for </li></ul> passenger transportation<br /><ul><li>Separate marketing strategy adopted
    101. 101. Transport 4 to 7 passengers + baggage
    102. 102. Tubular construction, Rexene windows</li></li></ul><li>Pricing<br />
    103. 103. ACE Pricing<br />Pricing Objective<br /><ul><li>Product- Quality Leadership
    104. 104. Perceived Quality higher than competing 3-wheelers
    105. 105. Priced just beyond the max price of 3-wheelers at Rs. 200000
    106. 106. A premium on the price of three wheelers</li></li></ul><li>ACE Pricing<br /><ul><li>Determining Demand
    107. 107. Total Cost of Ownership less in the long run than three wheelers
    108. 108. Estimating Costs
    109. 109. Increasing Variable cost percentage of total costs
    110. 110. Target Costing method used to produce the whole product before at a predetermined cost</li></ul>Quantity Demanded<br />Price (Rs.)<br />
    111. 111. ACE Pricing<br /><ul><li>Analyzing competitors costs, prices and offers
    112. 112. Competitors sold at a lesser price than the target price of ACE
    113. 113. The value package of Ace was however higher than the competitors
    114. 114. Pricing Method
    115. 115. Value pricing
    116. 116. The Final Price
    117. 117. Priced at Rs. 225000
    118. 118. Priced at a premium of 12.5% over the maximum price of three wheelers in the market</li></li></ul><li>VARIANT Pricing Strategy<br /><ul><li>Tata Super Ace
    119. 119. Is priced at Rs. 355000
    120. 120. Significant premium on the normal price of ACE
    121. 121. Increase in the value offering
    122. 122. Load Capacity of 1 ton
    123. 123. Increased driver comforts
    124. 124. Increased power at 70bhp
    125. 125. Tata Ace Magic
    126. 126. Passenger variant priced at Rs. 260000
    127. 127. Costlier than autos used for road transport
    128. 128. Priced higher than Maruti Omni van</li></li></ul><li>Place<br />
    129. 129. Inbound <br />Logistics<br />Marketing<br />Service<br />Outbound <br />Logistics<br />Value Chain : TATA Motors<br />Transporters, Convoy Drivers Association<br />Dealer Network, Marketing Research Firms, Vehicle Financing<br />SAP , VCM<br />Operations<br />SAP , CRM - DMS<br />Suppliers , Contractors<br />Regional Warehouses, Dealer Workshops, Distributors, TASS<br />Strategic Alliances<br />71<br />
    130. 130. Supplier Network : ACE<br /><ul><li> Outsource most of the parts
    131. 131. Convert fixed cost to variable cost
    132. 132. Wage rates of TATA motors double of suppliers
    133. 133. Aggregate Outsourcing
    134. 134. Procurement of sub-assemblies rather than individual parts
    135. 135. Concurrent Designing
    136. 136. Suppliers involved at design & development Stage
    137. 137. e-Sourcing
    138. 138. Requirement based e-bidding from prequalified suppliers
    139. 139. Parts Commonisation
    140. 140. Cost reduction due to bulk purchases
    141. 141. Supplier Commonisation
    142. 142. Use of existing supplier base</li></ul>81.5%Outsourced, 20% Reduction in cost<br />
    143. 143. Distribution Network : Hub & Spoke Model<br /><ul><li> 3S to IS Approach
    144. 144. A sales outlet every 40 to 50kilometers
    145. 145. ‘Only Sales’ stores compared to traditional ‘Sales, Services & Spares’
    146. 146. Existing dealerships acted as hubs and set up 1S dealerships
    147. 147. Each dealer set up 15 to 20 1S stores
    148. 148. 300 new distribution points set up in 3 months
    149. 149. Location close to target market
    150. 150. Plant located in Pune at the time of launch
    151. 151. Target Markets : Southern & Western Regions</li></ul>3S<br />1S<br />1S<br />1S<br />1S<br />1S<br />
    152. 152. PROMOTION<br />
    153. 153. The Target Audience<br /><ul><li>Three Wheeler Owners
    154. 154. Owners of trucks
    155. 155. Trucking Fleet Owners
    156. 156. First time LCV purchasers</li></li></ul><li>Communication Objective<br /><ul><li>Good Brand awareness of the umbrella brand, TATA
    157. 157. To communicate the benefits of the product, ACE
    158. 158. To develop a positive brand attitude among the target customer group
    159. 159. To translate the positive brand attitude into sales</li></li></ul><li>Design the Communications<br />Message Strategy<br /><ul><li>Dealers were educated in the benefits of Ace versus the competition
    160. 160. The core message was created around new opportunities that Ace would provide its customers
    161. 161. The dissatisfied three wheeler owners were targeted with the message of “feeling good about your job”
    162. 162. India’s first Mini Truck
    163. 163. Use of local languages for communication</li></ul>Creative Strategy<br /><ul><li>Tata - a trusted source of information
    164. 164. No other endorsers were used
    165. 165. Informational appeal of the product i.e. the load capacity, power etc.
    166. 166. Emotional benefits of the product i.e. better social status</li></ul>Message<br />
    167. 167. Communication Channels<br />
    168. 168. Marketing Communication Budget<br /><ul><li>Tata Motors did not have enough money to spend on the advertising budget
    169. 169. Affordable method was used in the launch phase to decide the advertising budget</li></li></ul><li>SERVICING MIX<br />
    170. 170. 3 Ps of service<br /><ul><li>Free training to rural mechanics
    171. 171. Free tool set and signboard
    172. 172. Provision of spare parts and lubricants to mechanics and customers
    173. 173. Necessary help in case of major accident</li></ul>Process<br /><ul><li>Dedicated dealers
    174. 174. Well trained mechanics</li></ul>People<br /><ul><li>“SUVIDHA”
    175. 175. Mobile workshops
    176. 176. Service outlet every</li></ul> 40- 50 km<br />Physical Evidence<br />
    177. 177. CRM<br />
    178. 178. CRM : Giving TATA an edge<br /><ul><li> Why CRM?
    179. 179. Low rating in Sales Satisfaction
    180. 180. Needed a centralized customer database
    181. 181. Respond promptly to customer requests
    182. 182. Required better feedback on product quality
    183. 183. Effective measurement of campaigns
    184. 184. CRM Implementation
    185. 185. CRM-DMS (Dealer Management System)
    186. 186. Launched in 2003
    187. 187. Now supports 15000 users
    188. 188. Covers 1000 locations
    189. 189. Real time customer data
    190. 190. Purchase Cycle Intimacy
    191. 191. Individual Ownership Experience</li></ul>JD Power SSI Scores<br />Source: www.jdpower.com/corporate/india/ <br /> www.tata.com/company/releases/inside.aspx?artid=6nnOgmCs8lc=<br />
    192. 192. CRM : Giving TATA ACE an edge<br />
    193. 193. LAUNCH<br />&<br />RESPONSE<br />
    194. 194. Launch & Response<br /><ul><li>Launch
    195. 195. Launched in May 2005
    196. 196. Major 3-wheeler users in south & west
    197. 197. Priced at Rs. 225,000
    198. 198. Pune production facility close to target market
    199. 199. 25% of the country covered for initial launch
    200. 200. Response
    201. 201. Exceeded Tata Motors’s expectations
    202. 202. Sold its annual production target of 30,000 vehicles in less than a year
    203. 203. Increase sales by 13.1%
    204. 204. Market share increased by 13.6% points
    205. 205. Contributed 15 % companies volume in 1st year
    206. 206. 54% First time buyers, 33% Previously owned 3-wheelers, 30% owned LCV</li></li></ul><li><ul><li>ACE sold 90000 units in FY08
    207. 207. Rolled out 1,00,000th ACEwithin</li></ul> 22 months of launch<br /><ul><li> ACE 26%YoY growth rate FY09
    208. 208. MAGIC37%YoY growth rate FY09
    209. 209. Has 90% market share against </li></ul> competitive launches from Piaggio<br /> & Force Motors<br />BCG Matrix<br />Source: TATA Motors Business Review 2008<br />
    210. 210. SWOT Analysis<br /><ul><li> Strong brand name of TATA
    211. 211. First mover advantage
    212. 212. Good Consumer relationship
    213. 213. Continuous innovation
    214. 214. Good logistic management
    215. 215. Provision of finance to buyers
    216. 216. Higher cost
    217. 217. After sales service
    218. 218. Complaints on gear shifting
    219. 219. Rural market
    220. 220. Export Segment
    221. 221. High growth rate of LCV segment
    222. 222. Further fragmentation of market
    223. 223. Increased competition
    224. 224. Creation of a new segment by </li></ul> Mahindra & Mahindra’s GIO<br />
    225. 225. Branding<br />
    226. 226. ACE : Making of a Brand<br />LEADING EDGE INDICATOR<br />FOR FUTURE MARKET SHARE <br />& PROFITABILITY<br />Source: The Blake Project: Brand Equity Measurement – Brand Insistence Model<br />
    227. 227. ACE : Making of a Brand<br /><ul><li> Umbrella Branding : The TATA Legacy
    228. 228. ‘Pride of India’
    229. 229. Emotional attachment
    230. 230. Trustworthy
    231. 231. TATA Motors brand – taking a hit (2001)
    232. 232. Arrogant
    233. 233. Slow to respond to customer needs
    234. 234. Unreliable products
    235. 235. Research
    236. 236. Demand for scaled down version of TATA</li></ul> 407 truck<br /><ul><li> Good brand image in LCV segment</li></ul>Source: JD Power Customer Satisfaction Ranking 2001<br />
    237. 237. ACE : Leveraging the Brand…<br /><ul><li> Making ‘MAGIC’
    238. 238. Launch of ACE MAGIC in June’07
    239. 239. Variants
    240. 240. Super ‘ACE’ 1 tonner
    241. 241. Multiple engine variants
    242. 242. Gasoline & CNG
    243. 243. Accessory-production opportunities
    244. 244. Dumper attachment , Water tanker , Elevated platform
    245. 245. Green & Global : ACE Electric Variant (EV)
    246. 246. Joint development with Global Electric Motorcars
    247. 247. To be retailed in US market by Chrysler Corp.
    248. 248. 250 units US postal department</li></ul>Source: http://www.vicky.in/straightfrmtheheart/chrysler-to-sell-tata-ace-electric-in-us-2/<br />
    249. 249. EXPORTFOCUS<br />
    250. 250. Exports<br /><ul><li> Emerging markets similar to India
    251. 251. Emerging markets more developed than India
    252. 252. Developed Markets
    253. 253. Countries for Expansion
    254. 254. Sri Lanka
    255. 255. Nepal (Specially for hilly terrains)
    256. 256. Bangladesh (CNG Variant)
    257. 257. Electric version for US market
    258. 258. South Korea
    259. 259. Africa
    260. 260. Gulf Countries</li></li></ul><li>RURAL<br />FOCUS<br />
    261. 261. Rural markets – a huge potential<br />&quot;It has always been our desire to anticipate demand and develop products to meet that need. We perceived that there would be a growing demand for a safe, reliable and versatile 4-wheel very light commercial vehicle for carrying goods and people. It would facilitate inter-city transport and extensively connect town and villages in rural India. I believe the Tata Ace will deliver excellent value to its owners and operators.&quot; <br /><ul><li>56% of the National Income
    262. 262. 64% of the Total Expenditure
    263. 263. Predicted to be Rs. 16 Trillion by 2012-13
    264. 264. Needed for transporting agricultural yields
    265. 265. To deliver small lots of CPGs</li></li></ul><li>Roads in Indian villages<br /><ul><li>65% of country’s freight traffic through roads
    266. 266. 40% of villages(825000) have no access to all</li></ul> weather roads<br /><ul><li> Poor quality
    267. 267. Access cut off during rains
    268. 268. Under funded road maintenance
    269. 269. Northern and North-eastern states - poorly </li></ul> linked to the country’s major economic centres<br />
    270. 270. Rural India – Road transportation<br />Common modes of transport in villages -<br /><ul><li>Bullock carts
    271. 271. Human labour
    272. 272. Three wheelers</li></ul>Disadvantages –<br /><ul><li> Longer lead times
    273. 273. Shrinkage
    274. 274. Poor transportation – Longer cash conversion cycle
    275. 275. Hinder a high standard of living</li></li></ul><li>Tata Ace - Rural markets focus<br />Demand for<br /><ul><li> Small trucks delivering on full truck load basis
    276. 276. Cost effective transport for last mile delivery in supply chain
    277. 277. Safe transport for low income group
    278. 278. Emotional quotient</li></ul>Benefits offered<br /><ul><li>Training of rural mechanics free of cost
    279. 279. Free tool set and display at garage
    280. 280. Mobile Workshop</li></ul>Introduced Ace Magic targeted at rural population<br />“If I drove a four wheeler, I would receive better marriage proposals in my village.”<br />
    281. 281. The Way Ahead…<br />
    282. 282. Stepping Stone for Nano<br /><ul><li>Involving customers in product development
    283. 283. Strict cost constraints
    284. 284. Market Research </li></ul>“Systematise and institutionalise the cost down efforts during the design and development phase to make the product more cost competitive.” ~ GirishWagh<br />
    285. 285. New Competition<br /><ul><li>Mahindra is working on a mass-market cargo and passenger vehicle
    286. 286. The Rajkot-based Atul Auto Ltd new launch
    287. 287. Hyundai Motor Corporation, Korea, plans to set up a LCV manufacturing plant in India. Though Hyundai denied it may launch it LCV porter.
    288. 288. Bajaj Auto working on a 4-wheeled goods carrier
    289. 289. Other major players such as TVS, Hindustan Motors, Ashok Leyland and Suzuki are seriously mulling their foray in to this segment.</li></li></ul><li>PIAGGIO APE – ‘APE’ING the ACE Success?<br /><ul><li>Offers 20 kplcompared to 14 kpl offered by Tata Ace
    290. 290. 6 speed gear box as opposed to 5 speed gear box of Tata Ace
    291. 291. Better design and styling
    292. 292. Maximum gradeability of 17 to woo hill station commuters
    293. 293. Lower turning radius – 7.7 m
    294. 294. High ground clearance of 185 mm
    295. 295. Aggressive price tag of Rs 215,000
    296. 296. 1 year , 36000 km warranty
    297. 297. 8 free services</li></li></ul><li><ul><li>New manufacturing facility in Uttarkhand250000 units
    298. 298. Industry specific incentives, free land & tax benefits
    299. 299. Entry into US market
    300. 300. After market accessories opportunities (attachments etc.)
    301. 301. Concentrate on after sales services to make competitive </li></ul> advantage sustainable (like extended warranty)<br /><ul><li> Focus on MAGIC design to make it appealing to a broader</li></ul> section <br />The Way Ahead….<br />
    302. 302. THANK YOU<br />

    ×