Tata Zest
Tata Zest
Tata Zest
Brand Management
Karan Yadav
Nikhil Gupta
Radhika Koolwal
Shadab Ashfaq
Shobhit Lohia
Vasundhara Chauhan
Contents
TATA Group ................................................................................................................................ 2
Tata Engineering [Tata Motors] ................................................................................................. 3
Timeline Tata Passenger Car ............................................................................................... 4
Tata Zest ..................................................................................................................................... 4
Advanced Features that are previously absent in Tata passenger vehicles .......................... 5
Issues with Tata Motors ............................................................................................................. 6
Branding Strategy of Tata .......................................................................................................... 6
Zest STP ................................................................................................................................... 8
Target Market ............................................................................................................................ 8
Demographic Segmentation .................................................................................................. 8
Geographic Segmentation...................................................................................................... 9
Brand Positioning ....................................................................................................................... 9
Frame of Reference ................................................................................................................ 9
Reverse Positioning .............................................................................................................. 10
Brand Identity Prism - Zest ...................................................................................................... 12
Brand Association of Tata Zest ................................................................................................ 12
Conclusion ............................................................................................................................ 14
Brand Strategy of Tata Zest ..................................................................................................... 16
Recommendations ................................................................................................................... 17
Brand Communication Strategy - Current ........................................................................... 17
Brand Communication Strategy (After Brand Audit) ........................................................... 19
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TATA Group
Tata Group is an Indian conglomerate which was founded in 1868 by Jamsed Ji Tata,
currently company is headquartered in Mumbai. Tata group has operations in more than 80
countries and on every continent of world. Tata group is expanded into seven business
sectors:
Communications and information technology
Engineering
Materials
Services
Energy
Consumer products
Chemicals
These seven groups are further divided into over 100 operating companies, out of which 32
companies are listed. Market capitalization of 32 listed companies is more than USD 141.41
Billion. Only 42% Tatas revenue originated from India.
Communications and information technology
Important Companies Tata Consultancy Services, Tata Tele Services, CMC, NELCO
Engineering
Important Companies - Tata Motors, Tata Cummins, Tata Marcopolo
Materials
Important Companies Tata Steels, Tayo Rolls
Services
Important Companies Tata Airs, Taj Hotels, Ginger Hotels, Vistara
Energy
Important Companies Tata Power, Tata Projects
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Consumer products
Important Companies Tata Salt, Titan Industries, Tata Coffee
Chemicals
Important Companies Brunner Mond, Tata Chemicals
In 1954, Tata in collaboration with Daimler-Benz AG produced its first commercial vehicle.
After liberalization of economy, Tata Motors entered into passenger vehicle segment with
the launch of the Tata Sierra. In 1998, Tata launched Indias first fully indigenous passenger
car, the Indica, and in 2008 it lauched Tata Nano, the world's most affordable car.
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Tata Zest
Zest is a new compact sedan launched by Tata Motors on 12 th Aug 2014. Tata Zest launched
in hatchback version also i.e. Tata Bolt. It will use the same platform and engine that are
already being used in by Indica and Manza.
Tata zest is available in 8 variants:
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4. Automatic ACs
Automatic FATC ensures that cabin temperature is controlled. ACs have touch
screen.
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Tata follows same strategy in marketing of communication & IT services i.e. Tata Sky, Tata
Docomo, Tata Teleservices
Product Brand Strategy
Consumer products especially related to Luxury or aspiring products are marketed as own
brand like watches, jewelry, luxury cars. These brands do not endorse or carry name of Tata.
Watches Titan
Jewelry Tanishq
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Zest STP
Target Market
While addressing a press conference, Mr Ranjit Yadav (President, Passenger Vehicles
Business Unit, Tata Motors), mentioned that Zest has been designed and introduced as a
compact sedan targeting young professionals. As the name suggests, the all-new Zest
exudes excitement and energy and is designed to give the driver total control of his vehicle.
The segmentation of the target market can be done in two ways:
Demographic Segmentation
Tata Zest is looking forward to target young professionals belonging to the following
consumer groups:
1. SINGLE I
This group consists of young unmarried individuals. They are beginning to develop financial
portfolios such as life insurance, savings, etc. and assets like home, car, etc.
2. YOUNG COUPLES (no children)
This group spends heavily on theatre tickets, expensive clothes, luxury vacations, restaurant
meals, and alcoholic beverages. They can afford nice cars, stylish apartments, and highquality home appliances.
3. FULL NEST I(Young married with children of age less than 6 years)
The addition of first child to a family creates many changes in lifestyle and consumption.
New purchases in the areas of baby clothes, furniture, food, and health care products occur
in this stage. Lifestyles are also greatly altered. Preference is given to comfort and hence
compact sedans attract them the most.
4. FULL NEST II (Children of age more than 6 years)
Families with children siz and older are the primary consumers of lessons of all types, dental
care, soft drinks, pre-sweetened cereals, and a wide variety of snack foods. Greater
demands for space create a need for larger homes as well as cars.
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Geographic Segmentation
Tata Motors targets Indias largest growing auto market, i.e., NCR. NCR compact sedan
market grew by 47% in FY 2014, while industry declined1. With thirteen newly revamped
showrooms and over 250 new frontline sales team, Tata Motors announced NCR as one of
the most important market for its new car, Zest. The Company announced its first 100
customers at a special event, held in New Delhi.
Also the recent law by Delhi government to ban all vehicles older than 15 years in Delhi will
remove approximately 30 lakh vehicles from the reads. This development will further boost
the demand for automobiles in NCR2.
Brand Positioning
The segment in which the Tata Zest steps in to play the game is one, which is a very hotly
contested category in the Indian car market and also of course one of the fastest growing as
well. It has been positioned as a MASSTIGE which is an aspirational cum practical category
for young couples, the gee-whiz young upstarts stepping out in life, the practicality-oriented
and also those who think a sub-four metre sedan is kosher.
Frame of Reference
Tata Zest has been competing in the compact sedan market which is currently one of the
fastest growing categories in Indian automobile market. Here, Tata Zest is targeting young
professionals falling in the consumer groups of Single, Young Couples, Full Nest 1 and Full
Nest 2.
Zest will be competing with well-established players like Maruti Suzuki Swift Dzire, Honda
Amaze, Hyundai Xcent, Mahindra Logan, Skoda Rapid and Nissan Sunny. In order to position
Tata Zest as a superior car from its competition, Tata Motors has built Zest around its three
fundamental pillars which are:
Source: http://www.concordemotors.com/newsnevents/details/12
Source: http://www.dnaindia.com/india/report-national-green-tribunal-verdict-over-29-lakh-vehicles-set-to-go-off-city-roads-in-delhi2039664
2
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DESIGNEXT
DRIVENEXT
CONNECTNEXT
All-new, next-generation
HARMAN Infotainment
System
New MapmyIndia next
generation navigation &
location based services
State-of-the-art 5-inch
touchscreen to access
music, video and more
First-in-class integrated
HVAC with enhanced HMI
for controls and
experience touchscreen
access.
Advanced Bluetooth, voice
recognition, text to speech
and phone-enabled
navigation
Reverse Positioning
As we can see from the above stated three pillars, Tata Motors is trying to strip away
attributes consumers expect in a mature compact sedan car and adding some surprising
new ones. Indigo helped Tata to venture into the compact sedan category. Because of
extensive adoption of Indigo by cab companies, it was perceived as a Taxi by the customers.
Through this positioning strategy, Tata Motors can change the perception of the Tata as a
Taxi car manufacturer and shift its compact sedan offerings backward from maturity into
the growth phase.
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Point of Difference
Tata Zest brings in many first-in-segment features with it.
Tata Zest is only car in the segment to come with an AMT in a diesel vehicle. The
petrol Zest is the first in class to get a turbo charged petrol engine in the form of
1.2T, delivering best in class power and acceleration
The Zest brings Tatas new design language, which was previewed with Pixel concept
in 2011 and MegaPixel in 2012, to production. The Zest comes loaded with several
first-in-class features such as LED tail lamps, daytime running lights etc.
The Zest petrol is the top-end XT trim. It is differentiated from the Zest diesel AMT
XMA variant by LED daytime running lights and 8-spoke alloy wheels. The bootlid
carries the Revotron badge and visual differences go only this far.
The Zest petrol gets a ground clearance of 175 mm (165 mm for the diesel AMT) and
the car will weigh between 1,115-1,135 kg.
There are many other features which are different in Zest as compared to other car
makers such as Honda amaze, Swift Dezire and Hyundai Accent
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Advertising
Word of Mouth
Product Quality
Competitors offerings
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In order to accurately measure the brand association of Tata Zest, maps were created from
the point of view of both the general public as well as the employees. Thus, responses were
collected from both the employees of Tata Motors as well as the customers on the following
parameters:
Trustable
Sustainable
Consistency
Inspirational
Uniqueness
Appealing
Credibility
Credibility,
Sustainable,
Trustable &
Consistency
Inspirational &
uniqueness
Appealing
classified
into
three
Tata Employees
ANALYSIS
Consistency
& credibility
Inspirational
& appealing
opinion
the
employees
and
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respondents. An agreement is a good sign for Tata Motors in the case of the brand coming
out as trustable and sustainable. The two groups agreed on the brands being appealing and
placed it in the least associated region. Uniqueness was considered to have a direct
association in the mind of Tata customers but that was not the case with the employees.
Credibility and consistency were the attributes which were directly related to the
performance of Tata Zest.
Figure 2: Brand Association map with Tata Zest customers
Conclusion
The map shows that Tata has been able to successfully associate with its customers on a lot
of attributes that it feels are closely associated with its product. However, on certain
parameters like appealing and inspirational the car has not been able to have a strong
association. In fact even the employees map shows that Tata has not focused much on this
aspect of the Tata Zest brand. Thus, Tata Zest brand should increase its focus of the appeal
factor and strongly associate with it even if it leads to certain changes in the product.
Apart from this, in order to increase its association, Tata Zest has successfully leverage on
the brand equity of Tata motors brand as all the ads promote Tata Zest as a car from Tata
Motor Company. Tata has also promoted its new Revotron engine through different blogs
and articles by mentioning the use of JLR technology and skills in order to come out with a
performance oriented engine and other world class features in the car. Lastly, Tata has also
used Narayan Karthekyan to promote the car with its unique features and new engine. Tata
has also brought in 5 new patents through Tata Zest.
Zest Associations
Tata Zest with Bollywood
The company launched the Zestful Bollywood Pilgrimage on 4th June 2014 through a
Facebook Application and has been able to reach out to 1.1 million people, across the
country. The participants were asked to identify five iconic Bollywood locations featured in
movies, which led them through a virtual pilgrimage. At the end of the pilgrimage the
participants were asked to create a Bollywood scene featuring the Zest as the lead star. The
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initiative is a strong bid to lay down the foundation for the Zest as Tata has a lot banking on
it.
Tata Zest with HarmanTata Motors brand new cars launched in Europe at the Geneva Motor Show 2014, will
feature next generation infotainment system designed and built by HARMAN. After two
years of intense develop-ment driven from the HARMAN R&D centers in Bangalore and
Pune, supported by the global centers in Shanghai & Germany, HARMAN is proud to present
a made-for-India Infotainment system that takes in-car connectivity to the next level.
ZEST, that look to redefine the passenger car market with new design aesthetics, segmentdefining drive experience and high-tech Infotainment system. HARMANs infotainment
system reflects TATAs ConnectNextprin-ciple, a paradigm shift in the human-machine
interface and in how end-users connect with their cars and to the outside world.
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Generic Branding no brand strategy and is used for small percentage of sales
Thus, Tata Zest follows an umbrella Strategy where it leverages on the brand equity of
Tata Motors brand.
Brand Vision Tata Zest aims to be a luxurious, performance oriented and value for
money compact sedan.
Brand Communication The brand values and attributes are communicated through
digital, print, TV and on ground medium. The company has used innovative ways to
communicate the customers about the new Tata Zest brand which have been discussed
under brand communication strategy.
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The innovative features and looks also show the young appeal that the car has and Tata
Zests focus on the young consumers who are willing to buy a slightly expensive product if it
offers better features. Similarly, in order to target women, the car is also promoted on TV
soaps so that it is purchased by working women and also homer markers who now have an
importantly role to play while decide which car to buy are influenced by it.
Thus Brand strategy of Tata Zest, is to play on the fact that is has a superior product as
promote it under Tata brand as a car with functional benefits and value for money.
Recommendations
Brand Communication Strategy - Current
Tata Motors associates with IIFA for the ZEST for Stardom contest
After unveiling the new ZEST at the recently held Auto Expo, Tata Motors announced its new
association with IIFA, for the Zest for Stardom contest. Through this contest, the
automobile brand offered its customers an exclusive opportunity to share the stage with
Ranveer Singh at IIFA 2014, scheduled to be held at Tampa Bay (USA).
Through this association, both brands proposed to bring forth their respective stars
Ranveer Singh for IIFA and the ZEST sedan for Tata Motors. The online entries for this
customer engagement program went live on Feb. 26.
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The partnership with IIFA offers us a unique way to bring the best customer experiences, as
they created a new platform and launched new initiatives that allowed the customers to
engage with next-generation stars. Zest for Stardom contest gave fans of Indian cinema the
once-in-a-lifetime opportunity, to shake a leg with the stars and live their dream on the IIFA
stage. This created a huge uproar in terms of participation from the customers, giving brand
Zest an edge in the initial launching days of the car.
change its brand perception by aggressively focusing on new products and bettering
service.
Going by Tuesday's innovation, the company seems all set to grab eyeballs with its
communication. While the car has been generating mostly positive reviews from Autocar,
MotorBeam.com, TopGear India, Gaadi.com, ZigWheels, CarDekho, The Financial Express,
Overdrive, Deccan Chronicle, Yahoo india, NDTV, Autoportal, CarBlogIndia and Malayala
Manorama, the campaign too had social media sit up and take note.
Through the day, tweets and posts kept the brand buzzing. Netizens lauded both the idea
and the execution of the ad, with some even tweeting about the test drive experience that
was handled well by the showroom staff.
Brand Communication Strategy (After Brand Audit)
Revive the brand: The brand has not lost its cache despite many customers thinking that it
is a taxi segment car, and so do not want to own one. But the brand has to be brought back
to its former glory, and thats not easy. Tata currently does not really have a marquee that it
can do a little song-and-dance about. The Zest has not quite got the markets abuzz but then
Tata has several products lined up. It has got to get its customer-connect back in an
increasingly cut-throat market.
Take good care of sales and aftermarket: Good aftermarket and sales can do the trick to
spread the good word about a brand. And Tata has not scored top marks here. All talk about
lifecycle ownership but few walk the talk. Tata will have to take good care of this and they
could replicate some of what Maruti does in this department, perhaps, it could work like
magic.
Take a hard look at the Nano: The Nano promised much but didnt quite deliver. It has
even been said that the Nano should be withdrawn. Now its been positioned a smart city
car but will that help, its not easy to say. New players such as Renault are entering the
segment and will offer cars that give a lot more than the Nano.
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Energise the troops: Successful brands create a buzz that draws in and refreshes talent, a
scarce commodity in our times. Working for a brand that is seen as prestigious, helps.
Employees are all brand ambassadors for a company, and that helps.
Look for synergies with CVs, new markets: Tata Motors have a cache in the real Bharat.
While most companies are looking to tap the Tier 1 and Tier 2 India, one hasnt seen that
kind of efforts from Tata, but nows the time
Services to the Zest customer: offer 3-year free breakdown services across the country and
3-year zero payment car service in order to revive the Tata brand
Communication: Promote the car as a separate brand to avoid umbrella branding and
create a unique identity. Club the communication with a celebrity pitching to make a
connect with the audiences
Zest Community: Form a zest online page where all the zest customers can interact and post
their experiences, share their stories. Launch a Mobile App for the same. Launch
competitions to allow the user to customize their own zest and provide exciting rewards
Health facilities: Club the buying of the car with facilities like medical and health insurance
for the buyer which will add to the brand
Social Media Marketing: Update the website continuously with news and offers on the
brand. Provide testimonials online from from Autocar, MotorBeam.com, TopGear India,
Gaadi.com, ZigWheels, CarDekho, The Financial Express, Overdrive, Deccan Chronicle, Yahoo
india, NDTV etc. These reviews will create a positive sentiment for the brand and influence
the user to make a purchase.
Run online campaigns to invite Zest stories, twitter campaigns with hashtag #Zestyourlife to
make it viral and create awareness. Blogger meets to promote bloggers to write reviews for
zest to influence their followers
Road Shows: Participate in various road shows to promote the brand and create awareness
Social marketing: Engage in one of the social causes and promote that social cause powered
by Zest which provides a lot of free publicity
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B2B marketing: Form tie ups with companies to roll out offers for their officials on the
purchase of Zest. Run special campaigns, contests, games for the company employees to
create more engagement. Provide free test drives for them to get a first hand experience.
Invest in training the staff and dealers: Staff and dealers play a major role in influencing the
customer while making a buying decision, Also good customer service always helps in
retaining the customers.
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