BIG

Nitin Banka
FLOW OF PRESENTATON
Overview
ntroduction
Need and Development of ACE
Key ssues
Functional Strategy
Financial Strategy
Operational Strategy
Marketing Strategy Competitors
Recommendations
STORY OF TATA MOTORS
1945 Tata Engineering and & Locomotive
Company Ltd. (TELCO) was established
1954 Start Manufacturing commercial vehicles
1961 Exporting Trucks
1966 Machine tools division in Pune
1983 Start Producing eavy Commercial
vehicle
1986 Light Commercial Vehicle, TATA 407
Contd.
1994 Launch Multi-utility vehicle,
TATA Sumo
1998 ndia's first Utility Vehicle,
TATA Safari
1998 Launch of ndica
2005 --- Launch of TATA ACE
2008 Launch of TATA NANO
KEY SSUES OF CASE
Was there really a need to introduce TATA Ace?
Was TATA Motors justified in indigenously
developing a new vehicle instead of
buying/licencing technology from already
established vehicle manufacturer
Was Tata ace justified to be launched as a last
mile distribution vehicle?
INNOVATION SUMMARY
Context
Due to pradhan mantri gramin sadak yojana , Road
connectivity is expected to greatly improve in rural areas
t is envisaged that higher tonnages vehicles will be not
allowed in cities
n both the cases, all last mile distributing will be covered
by large vehicles
The exciting production in this category is cumbersome ,
coupled with safety, pollution & comfort etc.. issues
ChaIIenge
Challenge was create 4 wheeler at the cost of 3 wheeler
that would create paradigm shift in movement of goods
The vehicle should be useful in urban as well as rural
area
Vehicle should have good maneuverability to get through
small balances
NNOVATON
Develop a 4 wheeler to cater a gap in the market for
goods haulages vehicles in sub 1 tone
ACE comes at a nominal premium of 3 wheeler has like
car features & runs on diesel.
NNOVATON SCORECARD
Uniqueness
Create a completely new segment ;segment grew by 9%
ACE is the only environment friendly vehicle in this
category
Complies with the 4 wheeler safety norms
Versatility: both in rural & urban
Comfort : Protected cabin & larger wheel
Safety :Only its classes to have crash test
Impact
Reduce pollutants as compared to 3 wheeler from 21 %
to 40%
The product has created a new segment which
contributed 15 % companies volume in 1
st
year
Contd..
Less refueling, more trips
everage
n the first year of its operation vehicle has over shouted
volume by its 200%. The planned payback period
comedown by 100%.
Created a new reference in commercial vehicle segment
LCENSNG TECNOLOGY
Costly Expenditure
Create Competitors
Legal Constraints
Lose Position n The Market
Strategies
Financial
Operational
Marketing
Financial strategy
Lost Cost strategy initiatives
Outsourcing
Manufacturing
Tooling
Marketing
Cost Reduction Direct material cost, Variable
conversion cost, Fixed Cost, interest cost
reduction
Break even point low
Operation strategies
Project CUB!!
eavy truck & last mile distribution vehicle
Features important for customers
E- sourcing
New manufacturing plant at Pantnagar
Various strategies
Value engineering
Operation strategies
ngine modification
DeaIership & service
TATA ACE Bharat Stage and
NGIN
Model : TATA 275 D NA BS- (and BS-)
Type : 4-stroke, naturally aspirated, indirect injection diesel engine Max.
Output : 16 hp @ 3200 rpm Max. Torque : 3.8 mkg @ 2000 rpm
Displacement : 700 cc Special tems : catalytic converter (only in BS )
CUTCH : Single plate dry friction diaphragm type
GAR BOX : GBS 65-4/5.27 Type : Synchromesh (4 forward gears), Sliding
mesh (reverse gear)
STRING: Mechanical, variable ratio (20.5 to 24.5), 380 mm dia
BRAKS Type : Dual circuit hydraulically activated Front : Disc brakes
Rear : Drum brakes (200 mm dia x 30 mm) Parking Brake : Cable operated
mechanical linkages acting on rear wheels
TATA ACE Bharat Stage and
SUSPNSION Type : Parabolic leaf spring suspension at both front and
rear Shock absorber : ydraulic double-acting telescopic type both at front
and rear
HS AND TYRS Tyres 145R12 LT 8PR RADAL U
TANK Capacity 30 liters
PRORMANC Max. Speed : 64 kmph Max. Gradeability : 16% Grade
restartability : 15%
DIMNSIONS 3 22
Overall Length (A) : 3800 Width : 1500 Wheel base (D) : 2100 Overall
height : 1820 Track Front (E) : 1300 Track Rear (F) : 1320 Min Turning
Circle Dia : 8.6 m
IGHTS Max. GVW : 1550 kg Kerb weight : 805 kg Seating capacity :
Driver + 1
Marketing ACE !!
Value proposition
Pricing strategy
Positioning: sub -one ton pay load segment
Distribution:
South ndia
Export
Promotional strategies :
Chota aathi,
Life Ban Jayegi Pyaare
Value enhancers..
Looked and performed better than the
existing alternatives.
Addressed the key concern of
commercial vehicle buyers : Lead &
Load
mpact of ACE on Tata Motors
Leveraged the First Mover's Advantage
Recommendations
Cost down efforts
Focus on quality in process/design
Focus on distribution network
(channel partners)
Learning's
Balance between quality, cost and time.
Stretch targets and motivate the
team to achieve the desired objectives
Set a common goal and a objective
"UESTONS??