TATA ACE : FUELLING INDIANS’ ATMANIRBHAR DREAMS

BACKGROUND

Since its launch in 2005, Tata Ace from Tata Motors has earned the reputation of an iconic vehicle,
where it pioneered the small commercial vehicle (SCV) category in the country. The company
recognized their SCV customers’ aspirations to become their own bosses and engineered Ace Gold
to become the ‘Entrepreneurship Vehicle’. The company claims that since its inception, Tata Ace has
been the trusted partner of more than 23 lakh entrepreneurs and is the single largest commercial
vehicle brand in the country.

In its latest campaign, which rolled out recently, Tata Ace Gold pays tribute to India’s business
owners and showcases the opportunities for the youth of India in the last-mile delivery segment. The
campaign embodies Ace’s spirit of self-employment and entrepreneurship with an inspiring message
of taking charge of one’s future. The campaign features Bollywood actor and Tata Motors’
commercial vehicle segment brand ambassador, Akshay Kumar, and banks on ‘Aatmanirbharta’
sentiment

Building on the brand proposition of ‘Kaamyabi, Kal, Aaj Aur Kal’, the film is set against the backdrop
of a difficult economic situation and growing unemployment among the youth, further encouraging
the youngsters of India to work hard and look for opportunities as entrepreneurs. Establishing Ace
Gold as the first step in the journey to success, the film features young and prosperous logistics
business owner, Vijay, who traces his success back to his first Ace Gold. He passes on a stirring
message to the new generation, who are underqualified in a highly competitive corporate
environment and feel left behind. The film ends with Vijay attributing his accomplishments to Tata
Ace Gold, a reliable partner in his journey.

LEGACY OF TATA ACE SINCE ITS LAUNCH IN 2005

The crux of the group was to give it back to society and launch it for the society. The purpose is to
provide many masses with livelihood, especially to the middle class of our country. Bringing a four-
wheeler on a cost of three-wheeler was because people in our country deserved it. Providing an
advanced product by replacing the 1970’s technology was basically to liberate a common man from
driving three-wheelers without any comfort or safety, where they can carry extra load, protect
themselves and to pull up their status (respect in the society). The primary objective was not to
make profit for the business, but to provide comfort at affordable prices.

WHAT WERE THE CHALLENGES FACED AT THE TIME OF LAUNCH?

The challenge during that period was to target the group of audience (mass of India), who have the
potential and willingness to secure their future and convince them to buy the product by choosing
Tata Ace as their occupation.

People who are school dropouts or haven’t been able to complete their education due to different
reasons, end up being a security guard, plumber, delivery man, etc. Even with ample number of
choices, Tata Ace gave them the opportunity to be self-employed and purchase their own vehicle at
an affordable price without waiting for their monthly increments and bonuses. An occupation,
where one can be self-reliant by just making the down payment and starting their own business.

ZEROING IN ON A TARGET SEGMENT

Having the largest population is a serious concern for India. Of the youth of India below the age of 30
years, 70-80% are school/ college dropouts. Thus, the largest and the youngest population in the
world and lack of schooling, became the target segment to convince the unemployed masses, which
are growing year-on-year and are entering the market with an enthusiasm of “Now I have to do
something”. It could be because of peer pressure, family responsibilities or much more which made
them a potential segment for Tata Ace, which could help build their future. Aspirations in life can be
met by Tata Ace. Not being schooled or trained properly for jobs should not stop you from earning
and having a good livelihood.

And that was the segment which we wanted to tackle in the fresh commercials that we launched.

BRAND POSITIONING AS A MARKET LEADER

The launch of Tata Ace provided a four-wheeler without any compromise in terms of looks,
appearance, style, comfort or performance and at the same had the price point of three-wheelers. It
took us 6 years to come out with a product like Ace with a fair budget, which was the beauty of it.

In terms of safety, stability as well as respect, Tata Ace became affordable for a huge mass of India
and continues to create employment opportunities for thousands. As PM Modi once said, ‘education
or job limitations should not stop you from being an entrepreneur’.

The vehicle has been aptly engineered for maximizing revenues by ensuring more trips, superior load
carrying capability and a quicker turnaround time, meeting requirements of both rural and urban
transportation.

FIRST AND SECOND WAVE OF THE PANDEMIC COMPELLED THE COMPANY TO SET FRESH OPERATIONAL
BENCHMARKS

Looking at the COVID-19 situation, the unemployment scenario is only becoming worse day by day
due to organizations that are removing their employees on short notice, Not only Tata Motors, but
all the companies have to set up fresh operational benchmarks and have reworked on the strategies
to keep the engagement high and continuing with their set of audiences.

Everything has shifted to digital, for internal sales, marketing team and others. This is what is now
going to be the future for all the organizations, and everyone is prepared for the same.

DISCUSSION QUESTIONS

1) What were the challenges faced by Tata during the launch?

2) How did Tata go about its Segmentation, targeting and positioning of Tata Ace in rural?
3) How has Tata Motors influenced the 4As of rural marketing?