Considers the strategy and experience of Tata Motors, India's leading commercial truck maker, as it developed a new small commercial vehicle, the Tata Ace. Positioned as a replacement for the three-wheelers that predominated as small commercial vehicles in India, the Ace create a new product category and enabled Tata Motors to access a new market segment. The company adopted tailored approaches to product design, distribution, marketing, service, and sourcing for the vehicle. After successfully targeting the niche, considers how Tata Motors might grow its presence in the segment with new models, enter new regional markets, export to developing or developed countries, and face new competition.

Segmentation>Market serving vehicles carrying low load

TargetingTarhget marklet included:POeple planning tp purchase 3 wheelersPotential pickup and LCV purchanses(15%)First time commercial vehicle purchasers(40%)

POsitioningINdia's first mini truckSmall is big'stbility and trust of big truckEconomic liberatioFeel good abotyu the job'Transportation at last mile

Pricingperceived quality higher than the competing 3 wheelerspriced just bwyond the max price of 3-wheelersthoughcompetitors sold at lesser price than the target price of tata ace, the value package of ace was however higher than that of competitors>value pricing

Place>Location close to target marketP{lan located in Pune at time of launchTarget markets: siouthern and western regions

Promotion>Target audience: # wheeler owners, owners of trucks, trucling fleet owners, first time LCV purchasersINformational appeal of the products i.e the load capacity, power, etc used>economical benefits of the product i;e better social status>Dealers were educated in the benefits of Ace vs the competition

Product>Product features- versatility, savings, style, performance,confort, safetyversatility>Idfeal for both city and rural>12' tyre design - higher ground clearance and higer loading capacity>usage ranges from vegetable vendors to cargo pickup to passenger transport

Savings>Comfortable conditions for the driverallow the ace to travel over 500 kms a dayelectronic start and stop increse mileage by 6-10 percentlower operating costs and highly reliable - an altogether safe investment for small time businessmen

Safety>Easily accessible hazard warning switch for emergency'HIgh performance byu fron

t disc brakes and rear drum brakes, structural strength

Comfort>lowest loading height of 675 mm, heavy loads can be conveniently placed in load body

Style>Flat faced large commercial vehicle lookSmooth external finish - exquisite look', styled dashboard

=================================Tata Motors decided to develop Ace, after a study it conducted found that customers wanted a last mile distribution vehicle8 that had low maintenance costs, higher driver safety, and better driving comfort. In line with these customer requirements, Tata Motors developed and launched Ace, which became a success in the market.Experts opined that the main reason for the success of Ace was that customers were given a product that looked and performed better than the existing alternatives.

Various value enhancers such as car-like features in the drivers cabin, attractive finishing, etc. helped improve the value perceived by customers...One reason was that Ace was a four-wheeler vehicle and had to compete with three-wheelers, which were priced much lower than it.