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.

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)

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