Marketing Management
Tata Ace Case Study Solution

1. Analyze the Commercial Vehicle Industry at both Global and Indian scenario? Which are the top 5 countries for CV Industry.
Indian Scenario-

Indian Commercial Vehicle industry can be mainly segmented into * LCV and * M&HCV industry.
LCV consist of three wheelers and four wheelers up to 1 ton capacity.
Tata, Bajaj, Mahindra, Force motors and Piaggio are the major players of LCV industry.

M&HCV consist of four wheelers such as medium sized pickups, single axle and multi axle buses and trucks. Tata, Mahindra & Mahindra, Eicher, Volvo and Swaraj Mazda are major the players of M&HCV industry.

Also, two wheelers, passenger cars and SUV’s were also used for freight …show more content…

* Interviewees were looking for a vehicle that offered price, fuel efficiency and maneuverability of a three wheeler but with the safety, durability, additional payload, and comfort of a four-wheeled truck. Ideally, the customer wanted a scaled-down version of Tata’s four-ton 407 truck. * Customers also viewed four wheelers as a higher-status vehicle. * The team realized that in addition to the business case, there was a personal motivation for purchasing this sort of vehicle. * Being a three wheeler driver was not a desirable occupation due to issues regarding safety, low income levels and uncertain hours. * Three-wheeler operators had few options available to them, and even those who were willing to pay more additional features had no better alternatives. * Interviewees were not able or not willing to pay more for the Ace than they would pay for a three wheeler. Above that price the demand would fall off precipitously.
Therefore the potential customers basically had three types of needs: * The stated needs: Customers wanted a last-mile distribution vehicle. * The real needs: It should have low maintenance costs, higher driver safety and better driving comfort. * The unstated needs: Social status the potential customers associated with owning a four wheeler truck.
This helped Tata Motors