TATA INDICA

The Making of The

Small Car
TATA INDICA
 GROUP-7

GROUP MEMBERS:-

• Arun Kumar 03(B)

• Ashok Sarkar 06(B)
• Roopesh Srivastava 38(B)
• Shomik Ghosh 43(B)
• Shubrajit Pathak 44(B)
• Vishal Srivastava 58(B)
 TATA INDICA

“Telco’s Indica not only has a new plant

and a new set of people manning the
plant,but also new manufacturing
philosophies,new systems and new
processes in place,as its get ready to
take on its competition in the
millennium to come”
History of Telco

• Originally belonged to Peninsular Locomotive Company.

• It was established in Tatanagar, Jamshedpur in 1923.
• In 1954,collaboration with Dimler-Benz to manufacture
automotive vehicles.
• In 1960, company name was changed to Tata Engineering &
Locomotive company Ltd.
• In 1961 Telco produced its first crane in collaboration with
M/s Pawling & Harnischfeger(P&H).
• In 1966,it acquired Investa Machine Tools Co and set a
machine tool division at Pune.
 Continued________
• The first commercial vehicle was produced in 1977.
• In 1983,Telco started producing heavy commercial
vehicles.
• In 1986,rolled out its first commercial vehicle --TATA 407
• In 1991 Tata Sierra &Tata Estate started its assembly and
training plant at Lucknow(U.P.) .
• The product range included passenger cars,heavy
commercial vehicles,trucks and buses.
 Continued_________
• By the late 1990s Telco had emerged as a leading name in
commercial vehicles,passenger vehicles,construction
equipment, metal cutting and grinding machines,industrial
shutters,high quality steel,alloy casting and other related
products.
• In 2000,commercial vehicles accounted for 94% of its
gross revenues,vehicle spare parts accounted for 5% and
hire purchase income ,1%.
Story of INDICA
• In 1990 Ratan Tata thought of developing a small car .
• In1995,Telco announced that it planned to build a car
which would be priced closed to the Maruti 800,shaped
like the Zen,and spacious as an ambassador.
• Telco outsourced 80% of the components ,from 200 odd
vendors.
• A car could be built in 48 months with an investment of
Rs127.5 billion, Indica was built in 31 months on a budget
of Rs 17 billion .
 SEGMENTATION
 GEOGRAPHIC :
o Region: All over India
o City Or Urban : Urban, Sub Urban.

 DEMOGRAPHIC :
o Age : 30+ years.
o Income : Rs.25000+ per month.
o Family : 3 to 4 members.
o Occupation : Service men, Executives
o Social Class : Upper middle
 Continued__________

 BEHAVIORAL :
o Behavioral Occasion: Special Occasion
o Usage Rate : Light to Medium User.
o Benefits : Economy,Quality,Speed
o Loyalty Status : Medium
o Readiness Stage : Informed,Interested,Intending to buy
o User status: Non User and First Time User
 Target Audience
• To target middle aged non user and first
time user of urban and semi urban area
earning more than Rs25,000 per month
and believe in efficiency and quality
within a given budget.
 POSITIONING

• Attribute Positioning

• Better fuel efficiency at a competitive

price
 Outsourcing of components
COMPONENTS SUPPLIER

5 Door hatchback. I.D.E.A, Italy.

Engine . Institut Francais du Petrol,

France.
Assembly Line. Nissan’s Plant, Australia.

Presses. Marcedes Benz.

Piston and Piston India Pistons.

rings.
 Continued-----------
Electrical components and Lucas- TVS
Fuel injection system.
Steering System. Rane TRW Steering
System.
Clutch facing and rear Sundaram Brake
(drum) brake lining. Linings.
Seating System. Tata- Johnson
Controls.
Radiators. Tata- Toyo

Rear view mirrors Tata-Ficosa

 Continued-----------
Front and rear bumper, Tata-Auto Plastics.
dash board, inside trims.

Air conditioning kits. Subros Ltd.

Window Screens and Asahi Glass.

windows.
Fuel Lines. Imperial Auto.

Differential Assemblies. Sona Kyo Steering.

Sheet metal items JBM Tools.

 PRODUCT LIFE CYCLE
It is now in growth stage.

BRANDING
Umbrella Branding
 Customer Delivered Value
o Monetary Cost : High
o Time Cost : Medium
o Energy Cost : Medium
o Psychic Cost : High

o Service Value : Medium

o Image Value : Medium
o Product Value : Medium.
o Personnel Value : Medium.
VALUE CHAIN ANALYSIS
Primary Activities
PROCUREMENT
Support Activities

TECHNOLOGY
INBOUND
LOGISTIC OPERA-
TIONS

CUSTOMER
SERVICE CUSTOMER HUMAN
RESOURCE
MANAGEM-
OUTBOUND ENT
MARKETING LOGISTIC
&
SALES

FIRM INFRASTRUCTURE
 Critical Success Factor
• Full Control of Inbound Logistic

 BUYING BEHAVIOUR

• Complex Buying Behaviour

 PRODUCT HEIARACHY
• Need Family -- Transportation
• Product Family--Vehicle
• Product Class -- Car
• Product Line -- Small Car
• Product Type -- Fuel Efficient small car
• Item -- Indica
 Product Level
• Core Benefit --Transportation
• Basic Product --Metallic body with an
engine and mounted on wheels and
axles
• Expected Product --Fuel Efficient
• Augmented Product -- Design
 PRICING STRATEGY
Low Medium High

High

Medium Value
Stretegy Medium
Quality

Low

Price
 Setting Price Policy

Product Demand Vendor Zen LX Going rate 3.55Lac

quality curve Wise Santro Xing pricing
leadership Cost
Customer Marketing Channel
Manufacturer

Distributors (19)

Authorised retail outlets (1000)

Customer

2-Level channel
 COMBINED NETWORK
• Tata Motors and Fiat India share dealer
network.
THANK YOU