Tata Motors: Serving an 'Ace' for Success

  
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:

Price:
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

Themes

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Abstract:

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.

Issues:

» 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.

Contents:

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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