ABOUT THE SEGMENTATION TARGETTING AND POSITIONING OF TATA ACE

1. “SMALL”
IS
“BIG”.
TATA ACE

2. INTRODUCTION
•Launched In May, 2005
•Inspired from highly successful Japanese mini truck kei truck
(introduced in 1977) and Korean Kia Bonga(1980)
•Tata ace is powered by a small and efficient 16bhp
700cc diesel engine.
•Suitable for both rural and urban areas.
•Tata ace set the trend as countries first
High performance, low maintenance
Safe and reliable mini-truck
Sporty car-like features to ensure comfort in riding and handling.

3. 4 P’s
Being 4 wheeler; gives higher-status
 Safer than 3-wheeler and comfortable.
 Capacity of carry the load up to 1500 kegs.
 Cost of Rs.6.70 to transport 1 ton a distance of 1 km.
 3-wheelers were not allowed on express highways additional
advantages of being 4-wheeler.
 Easily travel in rural areas.
 Innovative 2-cylinder diesel engine which can give
speed up to 100kms/hr.
Product

4. Core benefit –
Light commercial Vehicle.
Basic product- 4 Wheeler.
Expected product - Safer,
Powerful and Convenience
with low maintenance.
Augmented product- High
Status and 30%extra
Overload.
Potential product – run on
LPG, CNG and with A.C
Cabin.
Levels of Product

5. •The Company targeted Customer who were willing to pay higher price for
extra value provided to them and also Vehicle is designed to reduced the
operating cost.
•The number of components used was kept low, the assembly line was made
short and around 80% of TATA ACE component were outsourced.
Tata ACE was a winning concept with 4 Wheeler Functionality and Price
close to that of 3 Wheelers.
Price

6.  Availability of the product at right place and at right time.
 City, Small Town, Villages and Urban belts in India.
 Distribution Network- Hub and SPOKE Model.
 Existing dealership acted as Hub and Set up 15 dealership.
 Each dealer Set-up 15-20 Ace Store.
 “Only Sales” Stores Compared to traditional “Sales and Service ”
 A Sales Outlet every 40-50 Kilometers all over India.
Place

7. Communication Channels:
Print Media- The “Chota Hathi” Advertisement.
Public Relations – Generated a lot of Positive Press in the Launch Period and also by
gaining International Awards.
Sales Promotions – An Initial discount of Rs 4000 was given on Ace. Financial Services
provided to further increase the purchase incentives.
Television – 1st LCV Brand used extensive ad on T.V. Ads Communicating new
opportunities that Ace Present.
Promotion

8. Segmentation
Geographic segmentation:
1.Rural areas-Rural villages with population of over 10000.
2.Urban areas-Semi-urban areas, small towns with population between 20000-
50000.
Demographic segmentation:
 Age- 20 to 34, 35 to 49 years.
 Gender-male.
 SEC- R1, R2 and R3.
 Occupation-
•Truck owners
•First time LCV purchasers
•Farmers
•Small trade

9. Psychographic segmentation:
Science of using psychology and demographics to better understand consumers.
Byers are classified on the basis of personality traits, values and lifestyle.
Behavioral segmentation:
Benefits- 4wheeler benefits i.e. comfort,style,safety.
User status-1st time 4 wheeler users and existing 3-wheeler users etc.

10. Targeting
Selective specialization:
M1 M2 M3
P1
P2
P3
M1: New 3-wheeler
planners (45%).
M2:Potentional pick-up
& LCV purchasers(15%).
M3:First time LCV
purchasers(40%).

11. POSITIONING
Positioning statements:
India's first mini-truck.
“Small is Big”.
Stability & trust of big truck.
Economic liberation.
 Feel good about job(Satisfaction).
Transportation at the Last mile.

12. POP Tata ace Piaggio (ape) M&M (maxximo)
Segmentation Segmentation for
Rural & semi-
urban areas
Segmentation for
Rural & semi-
urban areas
Segmentation for
Rural & semi-
urban areas
Features Provide comfort,
safety, low cost
Provide comfort,
safety, minimum
cost
Provide comfort,
safety,
affordable cost
Fuel Type Diesel Diesel Diesel
Point of Parity

13. POD Tata ace Piaggio (ape) M&M
(maximo)
Types LCV 4-wheeler 3-wheeler LCV 4-wheeler
Price Close to 2 to
2.8 lakh
Close to 1.9
lakh
Close to 3 to
3.8 lakh
Power 16 HP@ 3200
RPM
12.67KW
@3600 RPM
18.4KW
@3600 RPM
Fuel Tank
Capacity
28 Lt. 30 Lt. 33 Lt.
Launch All Over India All Over India Region Wise
Point of Difference

14. PRODUCT LIFE CYCLE

15. TATA ACE LINE EXTENTION

16. BRAND EXTENTION

17. Point of differentiation
STYLE
PERFORMANCE
VERSATILITY
SAFETY
SAVING
COMFORT

19. “BIG THINGS COME IN
SMALL PACKAGES”
NAMES ROLL NO.
Gaurav Singh Gaur 03
Ankush Kharbanda 17
Sidhant Nagi 19
Aditya Goswami 25
Vishal Sapra 26
Thanks