Tata Indica V2 Xeta: Competing in the Indian Small Car Market
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Case Details:
Case Code : MKTG177
Case Length : 28 Pages
Period : 2006 - 2007
Pub Date : 2007
Teaching Note : Available
Organization : Tata Motors Limited
Industry : Automobile
Countries : India
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Excerpts
Indica: More Car Per Car
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In December 1998, Tata Motors launched the first indigenously developed compact
car, the Indica. The model was displayed at the Auto Expo'98 . To underline the
"Made in India" image, the Tata Motors stall at the exposition had models and
organizers dressed in Indian attire. At the inauguration function, which was
attended by the then Union Industry Minister Murasoli Maran , hundreds of
children waved the Indian flag. The Indica project was named Project Mint (short
for Mini Telco), when it was commissioned. This car was partly designed and
developed by Tata Motors, the original design being that of the French car
manufacturer Peugeot...
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Enter The Xeta!
For the Indica, although the diesel-engined version continued to ring the cash
registers, the sales of the petrol variant failed to gather momentum in
spite of the engine having seen refinements since it was commissioned.
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This, analysts said, could possibly be attributed to two factors: Tata Motors'
lack of experience with petrol cars compared to other small-car
manufacturers with established credentials in this segment, and the fact
that the 'big and powerful' tag is not necessarily a positive attribute for
a petrol car in the extremely fuel-efficiency conscious small-car segment...
Product and Pricing - Extra Efficiency Advantage
Tata Motors strove to improve and refine its product continuously but
customer feedback was not always positive in all respects. The Indica V2
Petrol's 1.4 litre engine had become a handicap as it was the biggest in
the small car segment. Also, it shared the same block as its diesel
counterpart, making it inherently heavy... |
Promotional Strategies
Xeta was promoted through various media: television, print, and the Internet.
The television campaign 'You Gotta Be Dumb' was conceptualized by FCB Ulka. M G
Parameswaran, Executive Director, FCB Ulka, said, "The creative team looking
after Indica had a leap idea, that not looking at Xeta is like refusing to have
a good time with four lovely women. When you see an advertisement like the
Indica Xeta, you instantly remember the scene from Dumb and Dumber and it's this
that the advertisers are aiming for. Now every time you think of Dumb and
Dumber, you'll be thinking of the Indica Xeta as well."...
Excerpts
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