Group 2 B042 Akanksha Kaul B032 Akhila S B002 Kartikay Sharma B052 Parag Gupta B012 Satyansh Bhatnagar B062 Tushar Khera B022 Vaibhav

Group 2
B042 Akanksha Kaul

B032 Akhila S
B002 Kartikay Sharma
B052 Parag Gupta
B012 Satyansh Bhatnagar
B062 Tushar Khera
B022 Vaibhav
Future Outlook: Domestic Market
Existing & Upcoming National Highway Development Projects
Priority NHDP Phase Length(km) Status Approval Completion Target
1 Phase I 5,846 km Complete December 2000 December 2006

2 Phase II 7,300 km Award in progress December 2003 December 2009
3 Phase III A 4,000 km Already identified March 2005 December 2009
4 Phase V 6,500 km 5700 km of GQ + 800 November 2005 December 2012
km to be identified
5 Phase III B 6,000 km Already identified March 2006 December 2012
Considering these upcoming road infrastructure development projects, and foreseeing an increase in the
demand of the LCVs, the suggestions are as follows :
 Based on the future highway projects, the demand for the last mile commute can be catered by Tata Ace
all across the country. However cities around Northern and Eastern India has highest prospects.
 Maximize the production capacity of plants in Lucknow, Jamshedpur and Pune
 A new production facility in Orissa/West Bengal for their close proximity to industrial ports. Facility can
be used to meet the increasing demand for LCVs as well as for exports to countries in South East Asia .
Future Outlook: Export Market

Based on the per capita GDP and road density:
 Leverage the existing assembly facility in Bangladesh , joint venture with
Marco polo in Brazil and the company subsidiary ,Hispano Carrocera in
Spain to expand the reach in the respective markets.
 New facility near a eastern coast along with the Daewoo acquisition can
help cater to demand in South East Asia and East Asia.
 Setting up of a distribution/assembly channel in south Africa to check the
viability of Tata Ace. Accordingly, can expand to other emerging developing
nations like Nigeria, Zimbabwe, Mauritius
Maintain Low Price-
First mover advantages and superior features-  Use aggregate outsourcing
 Enhanced Overload capacity  Increase 1s distribution centre network
 A perfect fit for both urban and rural areas  Introduction of new cheaper finance schemes
 Less per unit cost of transportation
 Flat faced model-Commercial vehicle look and better
space Innovation-
 M1/N1 standards adhered to  Introduction of new engine
variants(petrol.diesel,CNG)
 Introduction of varied load capacity trucks in
roster
Cost Advantages and Finance Benefits-  Working on future technologies like Electric
 Ace costs 50% less than any other four-wheeled vehicles.
commercial vehicle
 Loans easily available by third party for five year Expansion-
terms  New production facility
 Cost comparable to three wheelers  Expansion near ports to support export business
 Diversification into other segments like minibus and
carrier vehicle to increase customer base
Superior Customer service
 SUVIDHA mobile workshops at regular distances Customer Analysis and Service-
 Free tools and training to rural mechanics  Improving CRM DMS system to better understand
 Use of CRM DMS system to analyse customer customer behaviour and streamline the process
 Introduction of new offers like extended warranty and
customer service for long term client retention.
Promotional Offers
 Truck trade shows Possible future competitors-
 Festival offers and promotions.  Quargo (Piaggio)
 Exchange policy on old trucks  Bajaj
 Mahindra
 Hyundai
Why should Tata launch Ace as passenger variant?
In the early 2000s, Tata had the image of being a truck manufacturer with poor after sales service of
its passenger vehicles coupled with a reputation of being arrogant and offering unreliable products
indicating a need of a dependable tried and tested passenger variant of Ace. The competition
against Omni would be a tough one but Ace’s brand value and reliability in the rural as well as semi-
urban areas will help Tata to give a tough fight to Omni.
In the FY2007, 65350 units of Omni were sold as compared to 58500 units of Ace indicating a strong
customer preference and a perfect market for Ace to enter into due to lack of many players.
Introduction Strategy Disruption in Maruti’s Share post launch of

Indica and Matiz
 Indica  Indica V2  Indigo: Similar to the case of
Indica, Ace should be launched in various variants as
compared to the single variant Omni. 29% Maruti 800
 Input and technology sharing with other Tata 35% Maruti Zen
passenger vehicles. Tata Indica
 In order to compete against Omni, Ace should have Hyundai Santro
the following features: 4% Daewoo Matiz
 Increased engine HP from 11 to 30BHP 11%
Others
 Diesel, petrol, EV, and CNG pre-fitted variant 7%
14%
options
 Sliding doors
Tata Indica and Daewoo Matiz gave a tough fight to Maruti 800 &
 Similar pricing as that of Omni Zen, in the first year of their introduction to Indian markets.
1. Play around with the specs of Ace (0-2yrs) 1. EV variant of Ace for export market (after 2-5yrs) 1. Minibus (establish base, release around 2010)
 Decrease TAT by adding workforce and increasing  Release the model in South Africa, where (long term priority)
automation. we have a well-established market. Target  CNG
 Release 3 variants – small, medium, large. the higher income markets to analyze  Leverage Marcopolo tie-up
 For small and medium variants – same target market, success of the model.  Play on the unavailability of good quality
increase driver comfort, increase capacity at increments of  Release the model in US/UK, depending on buses
250kg, enhance engine to carry extra load, increase the success in SA.  3 segments – Govt, private (schools, tours
stability for extra load capacity. 2. EV variant of Indica (LMV) for export. (after 2- and travels), upcoming govt projects
5yrs)
 For large – target a niche market for highway transport,  Anticipate introduction of Metro Projects,
 Launch in 2008.
load of 1500kg, enhanced engine, better stability, almost minibus can be used as a connectivity
 Eye USA & UK markets since their global
like a mini truck. channel between metro and other travel
share In EV Markets is the highest.
 Practice regional marketing, zone wise marketing to channels
increase sales in east and west regions.  Look at export markets for minibus
2. Introduction of Ace CNG (0-2yrs)
 Take leverage of the growing CNG market of 2007.
 We will create new engines that will be compatible with the
new hydrogen mixed CNG, that will save overall cost of
consumers and environmentally friendly.
Some synergies the new products can derive from Ace –

 Releasing new products in response to developments taking place in Indian road and transportation industry. Quick response to market changes, less turn-around time.
 Use of existing technology and parts for cost effectiveness.
 Use of simple technology for easy repair in the field (for commercial vehicles)
 By the customers, for the customers. Understanding the needs of the customers – meeting not just monetary but also emotional needs.
 One thing that stands out with TATA Ace is its km/l of fuel. It was a major selling factor for commercial vehicles. Finding that one need for the private vehicles market will be a game changer.
GROUP 2

Group 2 B042 Akanksha Kaul B032 Akhila S B002 Kartikay Sharma B052 Parag Gupta B012 Satyansh Bhatnagar B062 Tushar Khera B022 Vaibhav

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Group 2

B042 Akanksha Kaul

1 Phase I 5,846 km Complete December 2000 December 2006

Future Outlook: Export Market

Introduction Strategy Disruption in Maruti’s Share post launch of

Some synergies the new products can derive from Ace –

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