Tata Mo­tors shifts fo­cus from value seek­ers to sta­tus seek­ers

The newly launched Tigor marks a turn­ing point in cus­tomer strat­egy

Customer Click - - CUSTOMER STRATEGY - Ravi@glo­cal­in­fo­mart.com

As per the of­fi­cial data of the com­pany in March 2017, Tata Mo­tors pas­sen­ger ve­hi­cles recorded sales at 15,433 nos. in the domestic mar­ket, a growth of 84%, over March 2016, pri­mar­ily driven by con­tin­ued strong de­mand for the Ti­ago. The com­pany has also re­ceived an en­cour­ag­ing re­sponse for its re­cently launched life­style util­ity ve­hi­cle - the Hexa.

The com­pany’s sales from ex­ports was at 5836 nos. in March 2017, a de­cline of 8% com­pared to 6356 ve­hi­cles sold in March 2016. The cu­mu­la­tive sales from ex­ports for the fis­cal was at 64,199 nos., higher by 11%, over 58,035 nos., sold last year.

Mayank Pa­reek, Pres­i­dent, Pas­sen­ger Ve­hi­cles Busi­ness Unit, Tata Mo­tors com­mented on the growth of the com­pany: “The year 2017 is the year of trans­for­ma­tion for us, the over­all in­dus­try is grow­ing at 9%, while Tata Mo­tors is grow­ing at 17%.” He also com­mented on the Ti­ago suc­cess: “Ti­ago has re­ceived 80,000 book­ings, and cur­rently there are more than 50,000 Ti­ago cars on the In­dian roads.”


To make a mark in the pas­sen­ger car seg­ment, Tata Mo­tors has re­cently launched its must awaited stylish car Tigor. With ag­gres­sive pric­ing start­ing at `4.7 lakh (ex-show­room, Delhi), Tata Mo­tors hopes to at­tract buy­ers of both com­pact cars and sedans with the Tigor and have a big­ger play in the 80,000-100,000 units per month com­pact car (hatch­backs and com­pact sedans) mar­ket.

“The Tigor cre­ates a seg­ment of its own as it’s not a typ­i­cal 3-box sedan with a boot added to the hatch,” said Guenter Butschek, MD & CEO of Tata Mo­tors, on the side­lines of the Tigor’s launch.

He con­ceded that Tata Mo­tors has ‘learnt its pric­ing les­sons’ and has priced its new-generation mod­els - Bolt, Hexa and now the Tigor - at­trac­tively. Tata Mo­tors has built a strong pipe­line of new prod­ucts, which come with the IM­PACT de­sign lan­guage and lead­ing tech­nolo­gies to make the new prod­uct line-up an ex­cit­ing propo­si­tion.

The base vari­ant of the Tigor is priced at `4.7 lakh (ex-show­room, Delhi), `65,000 less than the Dzire avail­able at `5.35 lakh. But a closer look at the pric­ing strat­egy adopted by Tata Mo­tors shows that the base vari­ant is priced chiefly to at­tract buy­ers. In the case of Tigor, the pric­ing gap be­tween the base vari­ant and the next vari­ant is un­usu­ally wider - `71,000. When com­pared to other mod­els the gap re­mains the big­gest in the seg­ment, next only to VW Ameo. The rel­e­vant fig­ures for other sim­i­lar cars are `47,000 for Honda Amaze, `50,000 for Ford Figo and `63,500 for Maruti Dzire.

This pric­ing dif­fer­en­tial is im­por­tant be­cause most buy­ers (about 70%) chose the mid­dle or top-end vari­ant after eval­u­at­ing the va­ri­ety of fea­tures on of­fer, even as the ad­ver­tised price of the base vari­ant plays an im­por­tant role in lur­ing buy­ers. Higher-end vari­ants typ­i­cally add on crea­ture com­forts like rear air con­di­tion­ing, charg­ing pods, touch screen, cruise con­trol and safety fea­tures like airbags and ABS.


Tata Mo­tors got good re­sponse form the en­gage­ment mar­ket­ing for HEXA and com­pany is pro­mot­ing same for the Tigor. In­dian cus­tomer thinks a lot be­fore buy­ing the ve­hi­cle - they look at tech­nol­ogy, de­sign, price, com­fort and fea­tures. The tar­get cus­tomer for Tigor is one who is al­ready set­tled in the life, owns a car and want to up­grade it. It is for the cus­tomers who wants a stylish car to make a state­ment in society.

Mayank Pa­reek spoke on the up­grade dilemma among cus­tomers in choos­ing be­tween a large hatch and a small sedan. “The large hatch has got con­tem­po­rary de­sign fea­tures but prac­ti­cal­ity due to the lim­ited space avail­able in the In­dian roads, and the cus­tomer faces park­ing prob­lems. On the other side, small hatch comes with good func­tional space but they lack style. So Tigor fits the best as it comes with fully loaded

fea­tures and it also solves the space prob­lem.”


Tata Mo­tors doesn’t have plans to ap­point the ex­clu­sive deal­er­ships for its per­ineum cars like its com­peti­tor Maruti Suzuki NEXA, there will be one type of deal­er­ship for all the Tata car mod­els.

It has ap­pointed 6000 sales con­sul­tants to cater its new generation prod­ucts like Ti­ago, Hexa and now the Tigor, across 650 sales out­lets in In­dia.

Vivek Sri­vatsa, head of mar­ket­ing for pas­sen­ger cars at Tata Mo­tors spoke on the cus­tomer ex­pe­ri­ence: “We are pro­vid­ing premium feel to the cus­tomers vis­it­ing our show­rooms. We are also pro­vid­ing train­ing to our sales con­sul­tants for our new range of cars.” The com­pany has hinted plans to launch SUV Nexon in the com­ing months, to fur­ther strengthen its grip in the pas­sen­ger car seg­ment.

Guenter Butschek em­pha­sizes that Tigor is not a typ­i­cal 3-box sedan with a boot added to the hatch

Mayank Pa­reek ad­vo­cates Tigor to solve the up­grade dilemma among the so­cially ac­tive cus­tomers

Vivek Sri­vatsa em­pha­sizes pro­vid­ing a premium feel to the cus­tomers vis­it­ing Tata Mo­tors show­rooms

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