TATA Indica Vista - Marketing Analysis

Mahima(FPM10011) Mukesh(PGP25139) Siva(PGP25140) Rajan(PGP25149) Ravi (PGP25150) Sahil(PGP25151) Samir (PGP25152)

Sipani Dolphin Standard

2000

Maruti 800

Tata sierra Tata safari

Indian market is broadly classified into 9 product segment ranging from mini to Luxury vehicle.

The pie chart clearly show the market share for each product segment.

Four commonly used criteria are used for segmentation, which include:

Differentiation Strategy (also known simply as "Product Differentiation")

Criteria to gauge the viability of a target market Accessible - How a segment can be accessed via Marketing

Communications produced by a firm. Measurable - Can the segment be quantified and its size

determined? Profitable - Can a sufficient return on investment be attained

from a segment's servicing?

Customer habits : Indian Customers are educated, highly discerning and well

informed Preferences for small cars, Small cars are socially acceptable

even among well-off people Preferences for fuel efficient cars with low running costs. Tata

Indica has the lowest running cost per mile

Land rover – For High Income customers

Indica vista – For Middle Income customers

Tata Nano – For Low Income customers

Engine Specifications

1.4 TDI 1.3 Quadrajet 1.2 Safire

Engine Type 475 IDI Turbo1.3L SDE Common, Quadrajet

Diesel engineNew 1.2L, MPFI, Safire Petrol

engine

Power71 PS (52 kW; 70 hp) @ 4500

rpm75 PS (55 kW; 74 hp) @ 4000

rpm65 PS (48 kW; 64 hp) @ 5500

rpm

Fuel Type Diesel Diesel Petrol

PriceRs.2,60,000 to

4,99,000 Rs.4,05,000 to Rs.4,99,000

Rs.3,47,000 to Rs.3,97,000

Three models that caters to all three engines – •Tera•Aqua•Aura

Environmental regulation Tax and duties

Sale tax/VAT Excise Custom

Segment wise market distribution

Mini4%

Compact72%

Mid-size20%

Executive3%

Premium1%

Luxury0%

Segment Distribution

Industry Outlook Recovery in 2009-10 to be aided by lower cost of ownership and

deliveries of Tata Nano Industry margins to improve in 2009-10 with lower raw material costs Long-term demand prospects remain intact, led by small cars Exports to grow at approx. 20-25% Used car industry growth to be driven by rising car ownership, lower

holding period Capacity to touch 3.75 million units by 2010-11

PlayersEstimated Investment in Rs. Billion

Tata-Fiat 40Tata Motors Ltd 30

Mahindra & Mahindra Ltd 40

Honda Siel Cars India Ltd30

Toyota Kirloskar Motors Ltd14

Ford India Ltd 25

International Cars & Motors Ltd 8Volkswagen 35Renault-Nissan 45

9th largest in the world Production of over 2.3 million units 4th largest Asian exporter 79% passenger vehicle market share:

Maruti Suzuki 60% commercial vehicle market share:

Tata Motors Monthly sales exceeded 100,000 units Exports mainly to Asia and Africa, gaining

favor in Europe

No of vehicles / Population < 10% Number of households able to afford cars

projected to double by end of decade High proportion of purchases financed by

credit Highly competitive market, low costs

attractive for assembling Global giants looking to gain footholds Indian players expanding operations

overseas Thriving used cars market

Manufacturer

FY 08 FY 09 % Change Y-O-Y

Market Share %

Maruti Suzuki

711,818 722,184 1.5 52.2

Hyundai Motors India

216,307 244,000 12.8 15.7

Tata Motors 167,058 200,159 19.8 12.9

Honda Siel Cars India

62,802 52,420 -16.5 3.4

Ford India 30,962 27,976 -0.96 1.8

India’s Top 5 Domestic Passenger Vehicles Sales

A systematic attempt to identify and understand key elements of a competitor’s strategy in terms of objectives, strategies, resource allocation and implementation through the marketing mix

Threat ofThreat ofsubstitutessubstitutes

Potentialentrants

Threat ofThreat ofentrantsentrants

Suppliers

BargainingBargaining powerpower

Substitutes

Buyers

BargainingBargaining powerpower

COMPETITIVE RIVALRY

Five forces analysis

The Japanese Quotient - Quality Advantage

Authoritative understanding - Indian psyche

720 degree Customer experience Lowest Cost of Ownership Quality Service Across 1036 Cities

Pricing Strategy – Price to Price-Value Offering One Stop Shop to Customers Creating Different Revenue Streams Product Repositioning Customer Centric Approach Vehicle Services maintenance market Playing on Cost Leadership

Types of customers to be coveredPlanning to buy a compact car – First car

Planning to buy a compact car – Additional/replacement car

Owns VistaOwns a non-Vista compact car

Age: Income: Gender: Education: Number of family members: Number of cars in family: Number of car users in the family: Typical usages of the car: Brand of cars owned by the family members: Brand of car used by customer: Type of customer:

Describe a day in your life? What do you do on a holiday? Describe your ideal day….dream day? What activities do you like/dislike? Describe yourself. What do others think of you? What do you think about life? (exciting,

boring etc.) How often do you go out for a vacation? Describe your college, friends and family? How is your relationship with your friends

and family?

Planning to buy a compact car – First car For what all activities do you plan to use the car? What all things define the word “performance” for

you? What all things define the word “quality” for you? What brands are in your consideration set? Are you aware of Indica Vista? Are you aware of other brands in the market? (If

yes, what brands can you recall) What is the first name that comes to your mind

when discussing automobiles? From where did you get to know about these

cars? How did you go about collecting information?

Describe your purchase decision process till now. Can you recall any advertisement of cars; if yes which

car(s)? Is price the overriding factor in your buying decision? What is your perception regarding the pricing of Indica

Vista? What are the important parameters you think a car should

have? Rate these parameters in order of importance. What, according to you the company could do to help you

after you bought the car? How has been your experience in the buying process with

the company/salesperson? How do you plan to finance the purchase? How do you go about choosing a dealer?

Planning to buy a compact car – Additional/replacement car OR Owns Vista OR Owns a non-Vista compact car Which brand of car do you own? When did you purchase your current car?

(Should be post Vista launch) Are you satisfied with its performance? What all things define the word “performance”

for you? What all things define the word “quality” for

you? Are you aware of Indica Vista?

Are you aware of other brands in the market? (If yes, what brands can you recall)

What is the first name that comes to your mind when discussing automobiles?

From where did you get to know about the car you own?

How did you go about collecting information? Describe your purchase decision process. Which information sources influenced your purchase

decision? Can you recall any advertisement of cars; if yes

which car(s)? Is price the overriding factor in your buying decision? What is your perception regarding the pricing of

Indica Vista?

What are the important parameters you think a car should have?

Rate these parameters in order of importance. Are you happy/ dejected after purchasing your car? What are the reasons for the same? What, according to you the company could do to

help you after you bought the car? How was your experience in the buying process?

(salesperson guidance/help) Did the dealers provide any services after you

bought the car? How was the post-sales experience? How do you plan to finance the purchase? How do you go about choosing a dealer?

Dealer – Institutional buyers Dealer details: (Get the visiting card)

Name of the shop: Address: Area:

Models on display: Promotional schemes: Cars sold per month (Indica Vista and

others): Number of salespersons:

Customer details to be captured post every dealer experience Age: Income: Gender: Education: Number of family members: Number of cars in family: Number of car users in the family: Typical usages of the car:

Requirements from car he/she is planning to buy: Importance of different requirements: What cars are in his/her consideration set? Understanding of technical specifications: Purchase decision process (Role of internet.

Influencers, time taken, advertisements (tv/print/magazines), neutral sources):

First car/Replacement car/Additional car: Good points about current dealership experience: Areas of improvement as per current dealership

experience

Dealership experience How the customer enters the shop?

What all does he/she see while entering? Facial expressions and body language of customer Facial expressions and body language of

salesperson Note down the conversation (verbatim) that

happens between salesperson and customer. (Use a camera or recorder to capture the conversation in a way that it does not interfere with the normal conversation)

Note body language and expressions used by customer and dealer.

Customer language

Level of understanding of customer Pre-decided customer or in-store decision Role played by salesperson in brand choice Criterion used by customer in choosing a

vehicle How does salesperson pitch for cars especially

Indica Vista What all information provided by dealer

captures the attention of customer? Final purchase made Preferred financing mode Assistance provided by dealers in financing

After sales service experience How the customer enters the service center?

What all does he/she see while entering? Facial expressions and body language of customer Facial expressions and body language of salesperson

Note down the conversation (verbatim) that happens between service person/mechanic and customer. (Use a camera or recorder to capture the conversation in a way that it does not interfere with the normal conversation)

Note body language and expressions used by customer and service person/mechanic.

Customer language Level of understanding of customer

When was the car bought? Why this car? Understanding of technical specifications: Purchase decision process (Role of internet.

Influencers, time taken, advertisements (tv/print/magazines), neutral sources):

First car/Replacement car/Additional car: Good points about current service

experience: Areas of improvement as per current

dealership experience:

Test drive experience Which car is he test driving? How did he go about choosing that car for test

drive? What all does customer look for in actual? How does he make himself/herself comfortable? What all does he/she checks? How long does he/she drives? Where does he/she go? What did he/she like and dislike? What all does he murmur or says while driving? At the end of test drive, ask him to rate the

experience on 5:

Ritz Swift Grande Punto Hyundai i20 Honda Jazz Skoda Fabia Aveo U-Va Indica Vista

First thing that comes to your mind when I say Cars Tata Motors Indica Indica Vista Ritz Swift Grande Punto Hyundai i20 Honda Jazz Skoda Fabia Aveo U-Va Quality Performance

Personify these brands Indica Vista Ritz Swift Grande Punto Hyundai i20 Honda Jazz Skoda Fabia Aveo U-Va Sentence completion People who buy <car brands> are ----------

People in age group 50-60 years hold high regards for Tata brand which is one of the reasons they intend to purchase Tata Motors cars.

People recall big newspaper advertisements for cars. Recall value for television advertisements, that are not associated with a celebrity or with a catchy concept such as “Josh” for Ford Ikon, is abysmally low.

Customers in the age group 30-40 years use information on internet through their children who are old enough to browse internet and access information. Hence attempts should be made by the company to attract or influence this teen segment as well.

As opposed to the widespread notion that customers prefer their first car to be compact and subsequently they move onto bigger cars might not hold true always. Customers display the propensity to purchase compact cars even after buying a higher segment car probably owing to more comfort, recommendation by friends or for usage by other family members.

Customers perceive Tata Indica as a Taxi and attempt to juxtapose the same to Tata Indica Vista. Attempts should be made to free Tata Indica Vista from this image as this might inhibit consumers to purchase Tata Indica Vista.

The assumption that young people are more technological savvy as compared to older people might not be true. Older people (50-60 years) were found to be very knowledgeable. One of the reasons might be their experience with owning cars.

Insights from salesforce head’s inputs Vista Dealers are very confident on the Test Drive of the

car. They observed a very high conversion ratio in case of Tata Indica Vista (Test Drivers : Purchasers)

A big number of customers who actually went for buying Indica end up buying Indica Vista as they were getting much more features and added advantages at an incremental price.

In many cases people becomes confused due to the different variants of Indica Vista. The role of salesperson becomes very important to guide them as advertisements provide limited information.

Due to increased fuel price, nowadays mileage has become the most important criterion for a significant customer base.

Availability of finance influences the customers’ decision in many cases. For example, customers who have come to buy Indica having fixed cash in hand, end up buying Indica Vista after getting financial facilities. Introduction of attractive financing packages at final stages of negotiation can result into a sale.

Customers perceive that Tata is only into diesel and not in petrol anymore. This perception leads t lower sale of petrol variants.

Petrol variants are more suitable for customers who drive infrequently. Diesel variants are preferred by customers who drive on a regular or daily basis.

Tata Indica Vista sells more in states like Punjab, where people are relatively taller owing to more leg space in the car.

People in age group 50-60 years sit at the back during test drive. This is because they look for comfort in the car. This may also be attributed to that most if the time they will not be driving the car due to availability of a driver.

The customer came to know about the car variant they are test driving inside the car. This gap in the knowledge leads to an expectation which may or may not be commensurate with the test drive experience. This poses a risk which can be mitigated by informing the customer about the particular variant they would be test driving.

Profiles Area Heads

Planning to buy a compact car

40 years male

Planning to buy a compact car

50-60 years male

Owner of Tata Indica Vista

49 years male Owners of compact car (non-

Indica Vista) 36 years male

Consumer description

Nuclear family, Owned Indica, Used by family, Used locally and for outings

Nuclear family, Already own cars, Used by family, Used locally

Nuclear family, 1st car, Used by self and wife, Used locally and for outings

1. Owner of

Hyundai i20,

2. Nuclear family,

3. 1st car,

4. Used by self

and wife,

5. Used locally

Important parameters

considered in a car Color, Aesthetics

Engine cc, Torque ratio, Power windows, Space, Comfort

Leg space (Tall family members), Mileage, Low maintenance, Ease of handling the car (power steering etc.), Looks, Effective AC

Performance, Comfort, Ride quality, Value for money, Test drive,

Influencers Self Friends, Family

Friends, Children

Friends, Dealer, Family

Information sources

Cars owned by friends/relatives

Word of Mouth, Auto magazines

Word of Mouth, Internet (indirectly through children)

Word of Mouth, Internet

Financing of the purchase

Full Cash payment Auto loan facilitated by dealer

Full cash payment Full cash payment

Test drive experience

Did not take test drive

Backseat Comfort Power windows

-- --

Profiles Area Heads

Tata Indica Vista owners Compact car owner (Non-Indica Vista)

Them as people Consider movies and shopping as a waste of time, Think of Tata as a reputed brand,

Watch movies and do shopping frequently, Mercedes Benz is the aspirational brand, Associate Indica with Diesel,

Their behavior and values

More outings, Calm life, Like spending time with family, Convenience is sought from a car

Travel within the city, Exciting life, Like spending time with family

Their approach to the issue

Self financed, Define performance as Mileage, pickup, smoothness of engine

Self financed, Define performance as mileage, pickup, long trips without problem

Their fears Maintenance cost

Maintenance cost, Aesthetics, Quality of upholstery, Non fading colors

Thank You