Understand the category, competition and customer with

special focus on automatic transmission. 01

02 Propose a comprehensive marketing plan
to sell 20,000 Hexa/ year.

Draft a marketing strategy along with marketing mix

model to increase the share of automatic transmission 03
with special focus on increasing sale of XMA variant.

Suggest opportunities to improve customer experience at

04 dealerships.

Team SPUTNIK Achyut | Parag | Pooja

In 2017, the SUV sales growth rate was much higher than the growth of the overall passenger vehicles market
SITUATION ANALYSIS

INDUSTRY ANALYSIS SECTOR ANALYSIS COMPETITION ANALYSIS

SUV market Growth Sales Trend of 2017
10000
Passenger vehicle sales (in '000) 9000

MARKET 3,046 3,250 666,171 8000

2,503 2,601 2,790 7000

SIZE 564,552 6000
5000
4000

2013-14 2014-15 2015-16 2016-17 2017-18 E 3000

2000
2016-17 2017-18 (E) 1000
0
25% Sub Segment Share of 1 2 3 4 5 6 7 8 9 10 11 12
MARKET Tata Hexa Mahindra XUV500
SUV COMPOSITION
SUV in FY'18
Premium Toyota Innova Crysta Jeep Compass
Other 5%
Multi Utility
75% 15% Compact UV
- Mahindra XUV 500 positioned as the vehicle that
42% unleashes the spirit of adventure and thrill
South North - Toyota Innova positioned as the spacious and
Midsize
28% 30% 38% luxurious family car
AREA - TATA Hexa has tried to capture both the markets,
WISE East but is "stuck in the middle"
West - JEEP Compass is a new entrant in the same price
DEMAND 11%
31% segment and is giving a tough competition
Compact UV Midsize Multi Utility Premium

| Based on a report by SIAM, “India Automotive Market 2020”, an Assocham report, Case & Team analysis | 2
We have tried to identify the ideal customer profile and the latest trends in the passenger vehicles market

CUSTOMER ANALYSIS

IDEAL CUSTOMER PROFILE TREND ANALYSIS

- Age: 30-45
- Gender: Both (mainly men)
- Income: 12 lacs+
- Size of Family: 1-7
DEMOGRAPHY
UTILITY
- Travel with family
- Adventure and trips
- Status symbol
- Lives in Metro, Tier I and Tier
Increasing digital thrust Increasing women influence
II cities
- 89% customers are in North,
75% of car buyers use internet
South and West India
GEOGRAPHY for research before making the Women today account for up to
purchase 15% of car sales, driven by
PSYCHOGRAPHY education, work, higher spending
- Socially active Social media will influence 40% power and changing lifestyles
- Premium Lifestyle of automobile sales values at $23
- Family-oriented Bn by 2020
- Adventure Seekers

Critical Reviews Suggestions

Growth of age group 30-44
Income wise distribution (%)
(in ‘000)* - Rear seats don’t really fold flat Include:
2% 0.2% 0
- 4X4 option is not available with - Push Button Start
309,081 0.6L - Sunroof in the top model
288,648 11% automatic transmission
246,173 22% 0.9L - 1.2L - steering feels heavy while driving at - 4x4 model with automatic
1.2L - 2.4L slow speed gearbox in the Hexa portfolio
20% - Add Cup Holder Slot
2.4L - 6L
- Only one cup holder is not enough
- No side step is provided
25% 6L - 12L
- Power to weight ratio is less
2011 2018 (Projected) 2021(Projected) 20% 12L +

| Based on indiastat.com, Youth_in_India-2017 report, TATA Hexa reviews & Team analysis | *See Appendix 1 | More insights provided in Appendix 2 | 3
Forecasting the demand for 2018, TATA Hexa might not be able to accomplish its target.
We came out with some recommendations to bridge this gap.
DEMAND ANALYSIS

SUV segment in 2018

TATA might not achieve its target of 20,000 Hexa only on basis of its ORGANIC GROWTH
Vehicles sold in 2017 564,552*
TATA has to target new segment(s) or promote aggressively to achieve its target in 2018
Expected vehicles to
be sold in 2018
666,171
Our team is recommending an approach through which TATA can accomplish its target
Expected Premium/
Multi utility vehicles 133,234
to be sold in 2018 MARKETING MIX

Competitors in 2018

Expected XUV500 to
be sold in 2018
29,289

Expected INNOVA
to be sold in 2018
86,819 Currently targeting
Hexa has an Metro and Tier-1
Hexa is a premium Cities Promote Hexa on
TATA Hexa in 2018 category SUV which attractive starting
price of Rs. 11.99 digital media
rides high on power, TATA should focus on platforms like FB,
Potential market for safety and features lacs (base model)
Hexa in 2018
17,127 Emerging cities to YouTube etc
increase
TATA Hexa might not sell its potential market
20,000 Hexa in 2018 !
| Based on a report on autoportal.com, auto.ndtv.com & Team analysis | *See Appendix 3 | 4
The 1st step to achieve the target of selling 20,000 Hexa is to focus on the EMERGING CITIES (Tier-2).
RECOMMENDATION 1
Target customers Message Channels
Focus on emerging cities to
promote Hexa:
Family-oriented people #Whateverittakes to be with you
The growth of Tier 2,3 and 4
cities will be up from 27% in 3,791,965 8,933 34,996
Page Likes followers subscribers
2016 to 34% in 2025*
People willing to show #Whateverittakes to mark your Digital media channels like TV, Radio
off their position, status presence and print media like newspapers

Rising Affluence
The 5 cities are in top-25 ranks in terms of passenger vehicles purchase in India.
Expenditures in these cities are Chandigarh They have first-class existing infrastructure, and have high-tech projects coming up.**
rising by 14% YoY, while spending
in the Tier-I cities is increasing at Indore Passenger Share of SUVs in Passenger 20%
about 12% YoY. Emerging cities vehicles sold vehicles
Vadodara in 2015-16
SUVs sold in 5 cities in 26081.4
SURAT 29206
Buying pattern of car

Buying 2015-16
LINEAR CHANDIGARH 32322
pattern of Growth rate of SUV market in 18%
INCREASE India
car w.r.t. Surat NAGPUR 24569
annual Nagpur Growth of SUVs in 5 cities in
INDORE 22407 10234
household 2017-18
VADODARA 21903
income Target share of SUV growth
2040-2558
Annual household income TOTAL 130407 (20%-25%)

| Based on a BCG report named “The New Indian” & Team analysis | *See Appendix 4 | ** See Appendix 5 | 5
According to a Google report, Digital media contributed 45.3% of marketing-driven revenue, despite getting just 32.9% of
the budget.
RECOMMENDATION 2

Target customers Message Channels

Adventure seekers
#Whateverittakes to an explore the
unexplored
Promote Hexa on digital 3,791,965 8,933
media platforms #Whateverittakes for comfort of Page Likes followers
Buys SUV for family
my family

#Whateverittakes to achieve success 34,996

Working people
subscribers

Leveraging The Digital Power Getting Returns Digitally OBJECTIVES of the

SOCIAL MEDIA
$3.80
Revenue per next $1 spent*

$3.50
CAMPAIGN

$3.00

$2.60
- Increase in Internet penetration : 35% (2017)

$2.20

$2.10

$1.70
expected to double by 2025 - To create a buzz for TATA

$1.40

$1.30

$1.10
- More than 50% users are of 24 years or less, Hexa
but by 2020 about 65% users will be 25 or
older - To maintain the rapport of
- About 70% of those who have access to the
TRUEVIEW

CINEMA
RADIO

MASTHEADS

TV
PRINT
DISPLAY ADS

NON-GOOGLE

SEARCH ADS
OUT OF HOME
TATA Motors
YOUTUBE

YOUTUBE
GOOGLE
GOOGLE

internet go online to make informed

DISPLAY

purchase decisions - To recruit new buyers

| Based on a BCG report named “The New Indian”& Team analysis | *Thinkwithgoogle – maximizing medium SUV revenue | 6
To achieve the sales target of 20,000 TATA Hexa, we have proposed some online and offline sample campaigns
SAMPLE CAMPAIGNS

Twitter & Facebook Partnership with Google

campaign:
Tag your own
Adventure

Print media/ Radio

promotion

LinkedIn campaign

Association with
Instagram campaign
famous monuments
of the city

YouTube campaign Smart Cities.

| Team analysis | 7
Trends reveal that there is a growing interest amongst buyers to include automatic transmission in their consideration set
AUTOMATIC
TRANSMISSION
SHARE OF
UNITS KEY TRENDS CHALLENGES TATA Hexa in 2017
OVERALL
MARKET (%) SOLD
Preference of Younger Segments Vehicles sold in 2017 13,250*
- Across all ages, 54% of consumers consider
LOWER MILEAGE
4 2013 Automatics for their next purchase Automatic variants
- 61% consumers in age group 26-30 and 58%
29% sold in 2017 3,975
% 98,500 among 31-40 consider Automatic for their
next purchase FIND
COMPLICATED Automatic Vehicles in 2018
5 2014 Interest Across Segments
25% Expected no of
% 125,000 - The shift towards automatics is occurring
for all segments automatic 320,904
- Most car buyers looking at automatic vehicles sold in 2018
EXPENSIVE
variants are in compact SUV/ SUV segments
6 2015
13% Expected share of
23.32%
Willingness to Pay More C-SUV/SUV in 2018
% 165,000 - Across segments, the consumers are
willing to pay the cost premium between UNAWARENESS Expected no of
C-SUV/SUV in 2018 74,835
25,000 - 100,000
2020
11%
11 Ease of Driving TATA Hexa in 2018
- With average driving time going up to DOESN’T SUIT
% 500,000 2 hours a day, consumers are looking INDIAN ROADS
Target market share
forward to buy automatic vehicles.
of Hexa automatic 13.36%
10% in 2018

| Based on a Nielsen Company report: “Automatic for the People” and Team analysis | *See Appendix 6 | 8
To boost the sales of the Automatic variant, it is necessary to effectively communicate the benefits to the customer
RECOMMENDATIONS

MARKETING STRATEGY OPPORTUNITIES FOCUS on XMA

Target Customers WITH THE TIME

Early adopters feel the need to evolve XMA variant is available at a
Age group: 30-45 years
with or before market trends Competi-
Urban customers price difference considerably
Automatic tive lower in comparison to
Women drivers transmission is Pricing competitors
perceived to be
BREAK THE PERCEPTION
superior in
Positioning Create an Integrated Marketing
comparison to Comfort
Communication strategy to overcome the
the manual able
challenges
transmission
Drive
ENHANCED COMFORT Conveys With the average
Car buyers who seek ‘convenience’ over driving time
status
‘cost’ are more willing to purchase an going upto 2
symbol hours a day,
automatic as their next car
XMA variant
No need to keep changing the
Easier to provides much
Pricing FOCUS ON WOMEN DRIVERS use in
gears while accelerating and needed driving
INR 100,000 premium as Safety and convenience is a priority for decelerating in heavy traffic heavy comfort
compared to its manual women drivers traffic
counterparts

| Based on a Nielsen Company report: “Automatic for the People” and team analysis | 9
“The way customers purchase vehicles evolves constantly, and an optimised digital consumer journey is more
important than ever.” CUSTOMER EXPERIENCE

INVOLVE THE Improving Customer DISPLAY

CUSTOMERS DIGITAL
T Experience at CONTENT T
Dealership
H H
A TALENT
MANAGEMENT
DATE A
HEXA
A
N N
K K
INSTALL
KNOWLEDGE
TABLETS
Y ENHANCEMENT
Y
O O
AWARENESS UPDATE
U IMPROVE
SERVICE
OF “SOUL” LOCATION ON
GOOGLE U
EXPERIENCE MAPS

| Team analysis | 10
 APPENDIX 1

Sheet 1

Source: Youth in India report 11

 APPENDIX 2

The habits of affluent Indians:-

 Six in ten affluent households are nuclear families.
 25% affluent households have elders at home.
 More than 50% of the households have more than one earning member.
 90% affluent individuals own a house.
 75% of them have a fully automated washing machine.
 40% affluent individuals have a home theatre and modular kitchen.
 English is their preferred language for newspapers.
 Television is consumed more in regional languages.
 90% affluent individuals watch television and nearly 75% read English dailies.
 More than 60% watch movies outside home.
 More than 50% use Internet at home.
 More than 60% individuals do not read magazines.
 30% affluent individuals visit a parlour or spa once a month.
 80% of affluent individuals go out for meals frequently.
 90% shop at modern retail stores and shopping malls

12
 APPENDIX 3

Sheet 3

13
APPENDIX 4

GROWTH OF EMERGING CITIES (%)

14
 APPENDIX 5

SURAT NAGPUR VADODARA INDORE CHANDIGARH

(GUJARAT) (MAHARSHTRA) (GUJARAT) (M.P.) (HARYANA)
Population (approx. in 45 25 17 22 11
lakhs)
City rank in terms of no 13 17 21 19 12
of passenger vehicles
Existing infrastructure - Host to ONGC, - Firms like Mahindra & - Sardar Sarovar Dam, - SEZ - Sports ground and complex
GAIL, Essar, L&T, Mahindra, Electrolux, etc. - National Expressway 1 - Food park - Well-planned water supply
Cairn India, etc. operating - Apparel park distribution
Proposed projects - Mumbai-Ahmedabad - Nagpur metro - Statue of Unity - 3-corridor metro rail - International airport at
bullet train with a halt - High-speed trains - 6-lane Vadodara-Surat - Indore-Ahmedabad road Mohali
in Surat - Multi-modal highway - Industrial area in - Entrepreneur Development
- Mumbai-Surat tunnel international hub airport - 4-lane Vadodara-Mumbai Khandwa City
road and construction - National Manufacturing expressway - Film City
of modular cargo and Investment Zone
terminal

Other Important aspects - Major hub for - Famous for greenery, - EY’s India Attractiveness - Only city in the nation - Per capita income of
diamonds, textiles, public transport and Survey 2015 found city an to host both (IIM &IIT) Chandigarh is ` 67,370 which
petrol, oil, etc. health care development important emerging city for premier institutions makes the city the richest in
investment India

15
 APPENDIX 6

Sheet 6

16
 APPENDIX 7

RESOURCES

http://overdrive.in/news-cars-auto/features/key-factors-that-influence-car-buying-
decisions-in-india/
https://auto.ndtv.com/news/car-sales-november-2017-automakers-register-positive-
growth-1782279
http://www.zeebiz.com/automobile/news-automatic-transmission-to-account-for-
over-15-of-cars-owned-by-2020-in-india-report-5029
http://www.firstpost.com/investing/five-most-promising-indian-tier-ii-cities-you-
should-invest-in-2796296.html
http://indianexpress.com/article/india/india-others/emerging-trends-tier-ii-iii-cities-
set-to-grow-in-next-phase-of-economic-boom/

17