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A. INTRODUCTION:Tata Ace : Small is Big
Brand: Ace Company: Tata Motors Brand Count : 97
TATA Ace is the classic case of marketing success in India. What ever factors that Kotler have spoken about to successfully launch a new product, it is there in this t his product. Ace is Tata's answer to the marketing myopia m yopia of three wheelers. Ace is a .75 ton truck in the t he commercial vehicle segment segment which is dominated by large trucks. It can be called India's first mini truck. Launched Launched in May 2005, Ace has become a blockbuster and is expected to create a huge dent in the three wheeler goods carrier market. Till the launch of Ace, the sub one ton loads were transported by the three wheeler goods carriers. Although the quality and performance of these three wheelers are less than desirable there was still huge demand for these vehicles. It is this market that Ace is trying to capture. It is the transportation at the “last mile" market ma rket that Ace has captured. captured. Ace had all the qualities of a winner. It is cute, the engine is good in terms of mileage mil eage and performance, the comfort factor is very much there and more over it is a Truck and not an Auto. Priced competitively at 2.25 lakh to 2.40 lakh, Ace is a value proposition that no one can refuse. The brand was launched at a point where there was a need for transportation of good speedily and conveniently and in a cost effective manner. The target segments are those who want to upgrade from these three wheelers. wheel ers. The brand Ace has its own limitations. Hence Tata was careful not to overhype the product so that it will "under promise " and " over deliver". Although the product took around Rs180 crores to develop, the brand is giving rich returns for Tata Motors. The company is working overtime to deliver the orders and is looking for expansion of production of Ace. Even Ace is looking at overseas and is exporting to Srilanka and Bangladesh. The success of Ace has opened up a new category in the commercial vehicle market. It is reported that Ace had already captured 65% of the small commercial vehicle segment and is expected to contribute an additional turnover of Rs 2500 crore.It is again a sign that Tata Motors have identified the DNA for marketing success in Indian market.
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Rationale behind ACE brand name ACE means number one, Invincible ACE delivers
High power (16 bhp,700cc), High fuel efficiency (18-20 km/ltrs), Sporty car like interiors, Low noise level on par with passenger car High level of safety ( it meets safety norms like frontal crash,roof crash and rear wall strength ,it also provides seat belts), Robust braking system ( disc and drum brakes )
Since all these features are incorporated in ACE, it becomes numero uno and hence the brand name ACE (please refer features and specifications given below) ACE Features: 1.VERSATILITY The ACE can be conveniently used in cities as well as in rural ar eas. 12” tyres for the first time
in its class give higher ground clearance and higher loading capacity – resulting in better performance on and off the road. The truck-like strength of the front and rear leaf spring suspensions coupled with the shock absorbers provide a smooth ride and great driving comfort. The rigid front axle is designed specially to weather Indian conditions. With a small turning circle of 8.6m, the ACE can be safely and easily navigated, both in narrow village streets and in dense city traffic. 2.. SAVINGS The performance of the engine as well as the comfortable conditions for the driver allow the ACE to travel over 500 kms in a day. Low operating costs and the versatility offered through features like its flat, large loading area and small turning radius, give a fantastic opportunity to earn higher business revenue and higher profits, everyday. All this with big Tata reliability make the ACE the best business partner for one and all 3.STYLE Car-like interiors and numerous accessories allow you to ride in style Engine start and stop with key Styled dashboard with tray, digital clock, radio fitment provision, utility tray and clearly visible instrument cluster Lockable glove-box for keeping valuable documents Easily accessible hazard warning switch for emergency Horn pad on steering wheel Twin wiper for safe driving in rain
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4.PERFORMANCE The 700cc engine delivers a power of 16 HP @ 3200 rpm and a torque of 3.8 mkg @ 2000 rpm. It is also eco-friendly and meets BS II and BS III standards. The water-cooled, twin -cylinder IDI engine has an overhead cam shaft, temperature sensitive cooling-system and rotary fuel injection pump, which together give high fuel efficiency and low-maintenance operation. This also translates to longer life and lesser downtime. With the lowest loading height of 675 mm, heavy loads can be conveniently placed in the load body. The 4-forward synchromesh +1 reverse gear box gives smooth gear shifting. 5.COMFORT Several big and small features have been added to ensure comfort for the occupants, even on long rides. The fully-built sheet metal cab with doors, roof lining, floor mat for hear insulation and trims protect the occupants from rain, heat and cold. The ventillation ducts, winding door glass and rear windows ensure good ventilation and continuous air flow at leg and face level. Seats with soft cushion and back support ensure complete driving comfort. Other Features: -
Sun visor for protection from direct glare
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Car like combi-switch with rotary switches for lamp and wiper control
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Control pedals, gear shift and parking brake ergonomically positioned for maximum comfort and easy access
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Higher door opening angle and low floor height for easy boarding
6.SAFETY Designed and manufactured using high strength steel, the ACE meets all Indian safety norms - a novel feature in this class of vehicles. The ACE meets norms for frontal crash, roof crush, and rear wall strength - assuring the utmost safety of the driver and t he co-driver. Seat belts are also provided for both occupants. High braking performance is given through front disc brakes and rear drum brakes. Driving visibility is excellent through the large windscreen, window glasses, large overhead rear-view mirror and the large rear window. Large-sized, round headlamps with bright halogen bulbs provide excellent lighting for night driving. Reversing is made easy and safer with the help of a 2-box tail lamp with in-built reflector and the bright reverse lamp at the rear.
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Specifications of ACE: TATA ACE ENGINE Model
: TATA 275 IDI NA BS-II (and BS-III)
Type
: 4-stroke, naturally aspirated, indirect injection diesel engine
Max. Output
: 16 hp @ 3200 rpm
Max. Torque
: 3.8 mkg @ 2000 rpm
Displacement
: 700 cc
Special Items
: catalytic converter (only in BS III)
CLUTCH
: Single plate dry friction diaphragm type
GEAR BOX
: GBS 65-4/5.27
Type
: Synchromesh (4 forward gears), Sliding mesh (reverse gear)
STEERING
: Mechanical, variable ratio (20.5 to 24.5), 380 mm dia
BRAKES Type
: Dual circuit hydraulically activated
Front
: Disc brakes
Rear
: Drum brakes (200 mm dia x 30 mm)
Parking Brake : Cable operated mechanical linkages acting on rear wheels SUSPENSIO N Type
: Parabolic leaf spring suspension at both front and rear
Shock absorber
: Hydraulic double-acting telescopic type both at front and rear
WHEELS AND TYRES Tyres
145R12 LT 8PR RADIAL
FUEL TANK
Capacity 30 liters
PERFORMANCE Max. Speed
: 64 kmph
Max. Gradeability
: 16%
Grade
: 15%
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restartability LOAD BODY Type
: Pickup type. Hinged rear tail gate
Loading height
: 675 mm
Load Body (external)
: Length � 2200 mm : Width � 1500 mm : Height � 300 mm
DIMENSION S
All in mm
Overall Length (A)
: 3800
Width
: 1500
Wheel base (D)
: 2100
Overall height : 1820 © Track Front (E)
: 1300
Track Rear (F)
: 1320
Min Turning Circle Dia
: 8.6 m
WEIGHTS Max. GVW
: 1550 kg
Kerb weight
: 805 kg
Seating capacity
: Driver + 1
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B. BRANDING:
Umbrella Branding: The TATA legacy Pride of India Emotional connect Trustworthy
ACE branding:
Good brand image in segment Good brand value
Creating brand insistence: We will answer following questions to know the insistence of Tata ACE 1.Does ACE offers good value for price? Ans:Yes from the all the angles like Feature,economy,power,performace and cost effectiveness ACE offers good value, ratio of benefits to the cost is higher in case of ACE 2.Does ACE connects with people at emotional level?
Ans: From the success of advertising campaigns launched by Tata motors we can say that it connects to the people at emotional level . Above advertisement is an example of it. 3. Do customer consider ACE to be a convenient brand? Ans: Yes 4.Is target customer aware of ACE does it comes first to their minds? Ans: Yes (various studies shows this fact ) 5.Is ACE unique or different to customer Ans: Yes, since Tata Motors created new segment SCV also it is uniquely called Mini Truck
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6.Is ACE Brand extension? Ans: ACE is not a Brand extension it is a Example of creation of new segment and by default it becomes product line extension (Source : JD power consumer satisfaction ranking)
C.
BRAND EQUITY :
Brand Eqity = Brand awreness+ Brand assets + Perceived quality of brand + Brand loyalty + Brand association Brand awareness: From the case it is clear that awareness about the Tata ACE is high Brand asset: Launch of ACE increased Tata Motors sale by 13.7 % it depicts high brand value of ACE Perceived Quality: Sturdy performance of ACE on Indian roads is the Hallmark of ACE Brand Loyalty: Continuously increasing sales of ACE is a testimonial to high Brand loyalty Brand Association: ACE is a Trustworthy brand just like parent TATA brand, it is indication of good brand association Brand Prism: Components of Brand Prism are
Physique Personality Self-image Culture Relationship Reflection
In all the above parameters ACE can be ranked higher, hence ACE has a strong Brand Prism
Product is a body brand is a soul : Tata ACE exemplifies this statement
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D. Conclusions:
1.After numerous research studies conducted by Tata Motors (TM) in India and abroad (China, Thailand, Sri Lanka and Bangladesh ) company found that customer wants last mile distribution vehicle with distinctive features ,in anticipation to this TM launched ACE and created new segment called small commercial vehicle (SCV) segment. 2. TM faced hard times in 2001 (posted a loss of 5 billions) due to poor financial conditions only 1.8 billion was allotted to the development of ACE ,due to this reason and due to availability of talent in India TM decided to develop ACE indigenously. 3. ACE is a example of Product line extension. 4. Launch of ACE caused revolution in TM and it readily grabbed 56 % of market share . 5. ACE brand name was chosen due to its omnipotent features , its association of parent TATA brand was strong. 6. ACE turned out to be superb brand with high brand equity and robust brand prism. 7. Increased market share and revenue of TM (as mentioned in the case) is a testimonial to above statements . E. Recommendation:
1. TM should use Teleweb ( telephone and web) and social media for the ACE advertising. 2. TM should launch more variants with additional features. 3. TM should Improve quality of ACE so as to match with Euro standards it will open avenues for ACE in Europe and South America. 4. TM should look for some M&A or collaboration in Europe and South America to push ACE in these markets.
References: Case study by ICFAI www.tatamotors.com JD Power customer satisfaction ranking
Author: Kalyan Deshpande -16 Expgdm-1011 SIMS PUNE
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