tata indica xeta

7/28/2019 tata indica xeta

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PIYOOSH BAJORIA



ARPITA DAGA MANAN SHAH

MANGESH JOSHI

PIYOOSH BAJORIA MAYANK PARASHAR

PRESENTED BY:

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TATA PRODUCTS

2004 2005

2006

2007

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Tata Sierra- first indigenous car- 1991

Tata Estate- 1992

Tata Indica- 1998 Indica V2 Petrol -2001

Diesel version succeeded but petrol variant failed?Indica’s” big and powerful image” not cohesive in the

fuel efficient small car segment Indica V2 Xeta Petrol – jan 2006

Xeta GLX variant – Nov 2006

Flashback

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Competing in the Indian Small Car Market

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Preemptive move to fight competition- MUL , HMIL

Also to change Indica’s brand image

Pre-emptive Defense Detect potential attacks and attack the enemies first

Let it be known how it will retaliate Product or brand proliferation is a form of pre-emptive

defense

Xeta (Xeta acronym for- extra efficiency torque advantage)

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Introduction To The Case Study TATA motors limited is the market leader in commerical

vehicles in India and one of the major players in thepassenger vehicles segment.

In Jan 2006, the company launched the indica V2 Xetapetrol car as a refurbished version of the indica V2 petrolMPFI.

Xeta was to bought the customer specifically by renderingbetter fuel efficiency at a competitive price.

Through Xeta, the company intended to create a uniquebrand identity in the customer’s mind for the petrol

variant of indica.

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Immediately after the launch of Xeta in January 2006, thepassenger car business unit of Tata motors reported agrowth of 15%.

The indica brand grew by 18.7% which was attributedmainly to the launch of Xeta.

This success also coincided with the growingattractiveness of India as a global hub for small cars.

The entry of Tata motors immediate rivals like MUL andHMIL into the diesel segment of the small car market wasalso expected to pose strong challenge for TATA.

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Continued…

The Xeta was developed by Tata Motors as a pre-emptive move to fightcompetition, mainly from MUL and HMIL in the passenger carsegment.

The Xeta's "eXtra Efficiency Torque Advantage" according to thecompany, was proffered as an answer to the market demand for fuel-efficiency at a competitive price.

Tata Motors intended to create a unique brand identity in the mind

of the customer for the petrol variant of Indica.

Xeta had the potential to change Indica's image as a diesel car brand. Xeta's success coincided with the growing attractiveness of India as aglobal hub for small cars.

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Some of the companies which planned to launch small carsin India in and after 2007 were General Motors India (GM),Fiat, Toyota Motors, Honda Motor Co., Skoda India, andRenault.

The entry of MUL and HMIL in the diesel segment of thesmall car market was expected to pose a strong challenge toTata Motors which had the leadership position in thissegment.

Continued…

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Reasons For Entering Small car

market…

Both Partners working

Nuclear Family

Move Fast In Traffic

Easy To Park

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VISION To develop TATA into a world class Indian carbrand for innovative and superior value vehicles.

o World class in:-

Product appeal and styling - clean, contemporary lines andshapes

Interior space and passenger comfort,

Quality and reliability.

Superior value in offering

Lowest ownership cost

Relevant cost effective technology

More content at same price point as competition.PIYOOSH BAJORIA



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Promotional Strategies

Media used:

Television

Print

Internet Television campaign: “You Gotta BeDumb”.

“Win a Xeta Everyday” offer as a part of its “4mn Smiles offer”.

Tata Motor finance Ltd. – customized financing options to

potential customers. Various schemes offered by various banks in alliance with Tata

Motors.

Extended warranty plans

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http://c/Documents%20and%20Settings/08bshyd0291/My%20Documents/Brand_ppt_TATA%20INDICA%20Xeta/Must%20be%20True.flv

http://c/Documents%20and%20Settings/08bshyd0291/My%20Documents/Brand_ppt_TATA%20INDICA%20Xeta/Indica%20Print%20ads.pptx

http://c/Documents%20and%20Settings/08bshyd0291/My%20Documents/Brand_ppt_TATA%20INDICA%20Xeta/homepage.JPG

http://c/Documents%20and%20Settings/08bshyd0291/My%20Documents/Brand_ppt_TATA%20INDICA%20Xeta/Dumd%20da%20Dumb.flv


















http://c/Documents%20and%20Settings/08bshyd0291/My%20Documents/Brand_ppt_TATA%20INDICA%20Xeta/homepage.JPG



http://c/Documents%20and%20Settings/08bshyd0291/My%20Documents/Brand_ppt_TATA%20INDICA%20Xeta/Must%20be%20True.flv



STRATEGIES ADOPTED PROMOTIONAL STRATEGIES

1. Television ADs:- “Not a liar”

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http://localhost/var/www/apps/conversion/tmp/scratch_6/get_video.MP4

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2. Print media ADS

Continued….

Electronic media ADS

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3. Internet

Continued….

They believed that the biggest potential of the medium is in the area

of "social media" applications -- user generated content, viral,contests and word of mouth, for instance. The Xeta Shootout Contestis an attempt to leverage this social media aspect of the web

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Continued…. Car was targeted at young buyers, so the

campaign was completely online. The campaign goes like this : -

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Competition

GM

Fiat

Toyota Motors Honda motor

Skoda

Renault

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Customer-based Brand Equity Pyramid

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

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Brand Judgment - high because of brand TATA

Brand feelings- security, comfort

• Safety(anti submarine seats, child safety locks,

provision for rear fog lamps) Brand resonance?

Brand Imagery- Target segment – customers seeking value for money – Independent segment(behavioral

segmentation) POD- Cost / value equation

CBBE Model Dimensions

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Issue #1 : Origin

Was Xeta actually needed ?

Is Tata Motor’s strategy of extension a step in the rightdirection ?

What is the rationale behind the development of thelaunch of Indica V2 Xeta Petrol ?

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TATA Indica v2 XETA

Same product in a different form.

Market Penetration : Tata Indica Product Development:Indica V2, Indica V2 Petrol MPFI,

Indica Xeta, Indica V2 Xeta

Market Development : Launch of Indica internationally in UK &European markets.

Diversification : Nothing yet.

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Why Brand Extension ??



Why Brand Extension..??

A Strategy Perspective

TATA Motors Growth Strategy.

TATA Passenger car Business Unit Vision & Mission

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Why Brand Extension.. ???

A Business & Consumer Perspective Improve Brand Image.

A brand image of a petrol car which would offer “more car per car”

Reduced risk perceived by the customersCustomers accept extensions from well known products better than new.

Competitive Strategy To serve the target customer more efficiently and differentiate itself in the

market place.

A tactical weapon to take on the competition in the small

car market.Fuel efficiency + comfort space + price sensitivity = Xeta

Avoid cost of learning from a new Brand - Learning Curve

TataMotor’s lack of experience with petrol cars in retrospect to other players.

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Why a Petrol Car ? The satisfy the target audience of the small segment car.

Better mileage

Fuel efficiency

Price – Diesel Vs Petrol.

Low fuel price Vs High Maintenance cost.

Quality Vs Quantity.

Long term Vs Short Term.

Diesel cars have low resale value.

Major share of the small car market rests with the petrolcar.

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What aspects of marketing did Tata Motors have toconcentrate on in establishing Xeta in the petrol smallcar segment ?

What were the steps taken ?

Results – Success or Failure ?

What were the pros & cons of the steps taken by the

company in this regard ?

Issue #2 : Existence

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Product & Pricing

Indica V2 Xeta Petrol

“Xeta” – acronym for eXtra Efficiency Torque Advantage.

Indian market sensitive to both price and fuelefficiency.

So, fuel efficient (an average mileage of 14 kmpl) and

sub-Rs. 3,00,000 car was offered. Immediate competitors – MUL’s Alto and HMIL’s

Santro Xing.

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Engine capacity reduced to 1396 cc.

Modifications to reduce fuel consumption and enablebetter gearing and pick-up.

Less frequent gear change and lower driver fatigue esp.in city-driving conditions.

Improvements made in NVH.

One of the best torques offered in hatchback segment.

Product & Pricing

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Product & Pricing :-

1. Technological advancements 2. Brand ambassadors

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http://localhost/var/www/apps/conversion/tmp/scratch_6/flash/indica.swf

http://localhost/var/www/apps/conversion/tmp/scratch_6/flash/indica.swf



Pricing :

1.Tata Motors had launched a new range of the Indica V2 Xeta witha 1.2-litre engine option at an introductory limited perioddiscount of Rs25,000. and also various bank loans so that eventhe common man can afford it.

2.The range is available in four models— GV, GVE, GVS and GVG

and comes with maximum power of 65.3 PS @ 5,000-5,200 rpmand maximum torque of 10.2 kgm @ 2,600 rpm.

3.Tata Motors' sales and distribution network in India consisted of 720 dealer outlets which were supported by eight regionaloffices, 28 regional sales offices and 38 sub-regional offices.Most of the dealers were exclusive dealers.

4.The company had a presence at over 2,000 locations in India,including after-sales and vehicle servicing outlets...

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Retail Network Support

720 dealer outlets, 8 regional offices, 28 regional salesoffices and 38 sub-regional offices.

Most of the dealers were exclusive dealers.

Company had a presence over 2,000 locations in Indiaincluding after-sales and vehicle servicing outlets.

Network of service centers on highways and a toll free

customer assistance centre provided 24-hr on-roadmaintenance to vehicle owners.

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PROS CONS

Created a brand identity

different from existing Indicacars

Fuel-efficiency, comfort,space and price sensitivity: allin one.

Loyal customer following of

MUL and HMIL: Stiff Competition.

Customer feedback was notalways positive.

Pros & Cons of steps taken by the

company

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CONCLUSION

TATA Indica V2 XETA was a great success since they adopted these marketing strategies .

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indica v2 indica v2

XETA

2007

2006

Indica V2 XETA sales, at

1,00,300 units in April-December 2006 , grew at theabove-industry-average rateof 35.8 per cent. The 2007Indica V2 Xeta range comesat Rs 2.55-3.49 lakhs.

PIYOOSH BAJORIA