Tata Indica V2 Xeta

Competing in the Indian Small Car Market

p


 
   
  p  
   


 !

" 
   
#$ 

 !%
&  #  !!'
&
"  !!
 ()*
+" *"

ð
 ð 
ð ð ð  ð  ð  ð ð

` ne 1,1945: Tata Sons bo ght Tatanagar Shops from GoI and Tata Locomotive and
Engineering company set p.

1954: Telco entered into collaboration with Daimler Benz AG for commercial vehicles.

1961: First export operations to Sri Lanka

1966: Engineering Research Centre (ERC) in P ne.

 ()*
+" *"

ð
 ð 
ð ð ð  ð  ð  ð ð

1977: First commercial vehicle man fact red in P ne.

1986: Prod ction of first light commercial vehicle , Tata 407.

1991: First indigeno s passenger car µTata Sierra¶ la nched.

 ()*
+" *"

ð  ð  ð  ð 

1992: Tata Estate la nched

1993: Entered into a joint vent re with C mmins Engine Co.

1991: `oint vent re with Diamler Benz for man fact ring Mercedes Benz cars.

1998: Indica La nched.

V
( ,**-*#*-

 September 1995 :Ratan Tata envisioned a car with Zen¶s size, The Ambassador¶s
internal dimensions, the price of a Mar ti 800 and r nning cost of Diesel.

 Indica was la nched in 1998.

 Tata Motors s ffered loss of Rs 5 billion in 2001.

 Indica V2 introd ced in `an ary 2001.

V
( ,**-*#*-

 Positioned as µmore car per car¶.

 To appeal to the h man nat re to want more .

 To appeal to Indian c stomers val e conscio sness , price sensitivity and safety.

 Foc sing on the spacio s interiors and affordability.

 Technical hitches , negative market feedback.

V
( ./

 La nched in Feb 2001.

 Promoted on performance, style and great ser experience.

 ³Even more car per car´.

 Ad campaign of ³Yo ¶ll never have to s ffer a small car again´.

 S ccessf l rela nch. S rpassed HMIL as 2nd largest car man fact rer.

 Indica Petrol V2 MPFI introd ced with improved interiors and more power (1400 cc
engine)`.
+*V
( ./

 ew Indica V2 la nched in `an ary 2004.

 Offering a world class experience in comfort, style and drive.

 Indigo¶s engine sed.

 Interiors and exteriors spr ced p.

V
( 012

 Petrol variant of Indica was lagging in sales.

 Lack of experience of Tata motors.

 egative association of µBig and Powerf l tag¶.

 Indica V2 Xeta la nched in `an 2006.

 Aimed for f el efficency and easier drive in city traffic.

 Tata motors wanted its c stomer to snderstand that Xeta was a different offering
then its diesel variants.

 Tata motors wanted to pre-empt competition thro gh Xeta.

 Latter the 1.4 litre heavy engine was changed to make it more f el efficient and
cheaper.
V
( 012

 I J , l I i r r .

 t r t ³ u r r ´.

 ri i u l .

 t r t t r u t ³ u tt u ´ .

 I t r t ri t i r l u t r t it.

 r i l ti i I i .

 lu i l r r t ll fr i t .

 l fI i r r % t i t l u
V
( #("*

-
(*-
"



 Repetition ± Increases the strength of the association and red ces forgetting ±

Thro gh advertisements

 Variations in advertisements to prevent "

"*+"3*
$""
*.
"


 To convey different attrib tes of the same prod ct.

 More car per car.

 More dreams per car.

 More savings per car.

 1&2 V
*4*2##V-2V4*4*
-41&*p152.V4&*V*5V*-21
"*V
(

 &*6*"

 *
"*" *#"*-* "*$ *"*V
(
 º
   



 
 that the Brand Tata and Brand
Indica offers by means of prod ct line extension
 º
   



  that the Brand Indica offers i.e.
size and power, th s creating a POD in the small car segment.
"*V
(

  *( ,**-
"
 *-*1" ("
(
"
 To nderline the ³Made in India´ image Tata Motors stall at A to Expo 98 had
models & organizers dressed in Indian attire
 H ndreds of children waved the Indian flag
  *",*&"

*+
" *+)**
(
 Safety Feat res like impact absorbing b mpers, anti-s bmarine seats
satisfied the safety and sec rity needs
 Feat res like beige interiors, two tone silver central console signified
premi mness by virt e of the selected colo rs, th s satisfying the stat s
needs
 !   

 
  



    Based pon Indica¶s pricing it¶s Target Segment was
one that had mainly it¶s physiological needs satisfied
"*V
(

 
**6**6*V
() "*
*"* 

 *",
 $((
*-*
 **that associates Tata to diesel engines
 
**6*( *6*012*,*
 -*  "

Tata realised that ³big and powerf l´ is not necessarily a positive attrib te in
small car segment where cons mers are sed to f el efficient cars like Mar ti
800
 To derive the maxim m benefits of "
*

"
 $ **6*
#("*
*7"
*a separate brand needed to be created
Ê "*(*+* *$"*" *(*6**(* "8

  *(**  *" 

("*$(,
 They are not able to accept the relatively novel concept of having a small car
that is also powerf l and take a b ying decision for a car which offers these
attrib tes
 They may be relying on advice of peers who have had the experience of
sing the more D("
9*small cars
 Th s their levels of innovativeness and need for niq eness is on the lower
side
"*V
( ./*012,*#"


  "*$" *.

: *.$
:
 .

:,*TV ads and print advertisements
 .$
:,*Print advertisements and website

 5
*V"*#(",*-"*&"*"*#
*
"*V
( ./*012*,*#"


 Orange colo r symbolises power &

affordability.
 Yellow colo r symbolises ca tion &
warmth which is in sync with Xeta¶s
safety feat res

 The red colo red car symbolises

excitement and strength which are
closely related to the ³power´
attrib te.
"*V
( ./*012,*#"


  *D *
"" p* $9*2"

"*( AD LI )
 An example of ( 
"
**that directs the cons mer away from the
negative goal: Acting º

 The ad here 
("*" *(*+ *6*" *
(*$(",*the
act of looking d mb ( nintelligent/irrational)
 D*( **(*9*" *
,*-
"

 *V*6*V 
 This kind of promotion tries to capitalise on the fact that the cons mers¶ ideal
self image wo ld be ³an intelligent or most rational person´ given the fact that
the car is meant for the price sensitive middle class who want more for less
 The rationale behind Indica¶s traditonal D*-*#*-9*tagline is also
similar.
"*V
( ./*012,*p*#
"

 17(
""
 ` stified by the power of the engine
 -"(
 F el efficiency in addition to power: a rare combination
 & 
 Something that a cons mer associates with the Tata Brand in a tomobile
segment
52
* 4