Tata Ace Case Study

Tata Ace Case Study Solution

3110 WordsAug 27th, 201313 Pages

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…show more content…

* E.g-Trucks, Buses.

While M&HCV industry is experiencing decrease in sales, demand for LCVs is increasing. This segment has exhibited a consistent growth rate of over 20% in the past 5 years.

* This can be attributed to the fact that there was a gap in the requirements of the customers and what was actually available in the market. * This is especially true in the case of last mile transportation sector which the LCV segment primarily caters to. * Thus, there is more demand for LCVs in rural and small town markets in India where the roads are narrower and it is almost impossible to use M/HCV for transportation. * Off late due to the growth of better highway systems between major cities and secondary road networks has resulted in a rise in demand for LCVs * With the construction of an all-weather tertiary road network connecting rural towns, demand for LCV is on the rise. * LCVs are cheaper in price and many people can afford it. * LCVs are economical to run therefore it is preferred choice for First Time Users as it gives attractive earning opportunities.

Thus, we can conclude that LCV industry will grow in near future and demand for LCVs will keep on increasing. Thus, it makes sense to target LCV industry for long term survival.
3. What was the key insight Tata Motors executive got from the extensive market & consumer research exercise they conducted

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Case Details:


Case Code: MKTG139
Case Length: 20 Pages
Period: 2001-2006
Organization: Tata Motors Limited
Pub Date: 2006
Teaching Note: Yes
Countries: India
Industry: Auto & Ancillaries
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges




This case is about the development of 'Tata Ace (Ace), a mini truck introduced by Tata Motors Ltd. (Tata Motors), Indias largest automobile company, in 2005. The case describes how Tata Motors developed this vehicle using their in-house expertise. Tata Motors decided to develop Ace, after a market study it conducted found that customers wanted a last mile distribution vehicle that had low maintenance costs, higher driver safety, and better driving comfort. Ace created a completely new market segment and became a huge success in the Indian market. The case also discusses about the nature of competition in the Light Commercial Vehicle and the three-wheeler cargo vehicle segment in India and the impact of the success of Ace on the players operating in these segments.


» Understand the aspects related to the new product development process in the Indian Light Commercial Vehicles (LCV) segment of the Indian automobile industry.
» Understand the impact of Tata Ace on the three wheeler cargo vehicle/ very light commercial vehicle market segment in India.


1) The 'Ace' Delivers ,
2) Background Note ,
3) Project Cub,
4) Serving an 'Ace' ,
5) The 'Ace' Effect,
6) The Competition,
7) Outlook,
8) Exhibit

Key Words:

Tata Motors Limited, Tata Ace, Light Commercial Vehicle (LCV), Indian Automobile Industry, Last Mile Distribution, New Product Development (NPD), Three-Wheeler Cargo Vehicles, Market Research, Segmentation, Targeting and Positioning, Goods Transportation, Product Management, Pricing, First Mover Advantage, Bajaj Auto Limited, Mahindra & Mahindra (M&M)

Tata Motors: Serving an 'Ace' for Success - Intro >>

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