• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Mahindra scorpio nikhil ingale

Mahindra scorpio nikhil ingale






Total Views
Views on SlideShare
Embed Views



1 Embed 3

http://www.linkedin.com 3



Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

    Mahindra scorpio nikhil ingale Mahindra scorpio nikhil ingale Presentation Transcript

    • ByNikhil Ingale 1
    • 2
    •  Today most international car manufacturers have entered the Indian market. As it one of the fastest growing economies in the world. As India provides excellent global technologies, most international Car manufacturers can access these through joint ventures with India. 3
    • India is a 2nd largest two wheeler manufacturer in the world.India is the 2nd largest Tractor Manufacturer in the world.India is the 5th largest commercial vehicle manufacturer in the world.India is the 3rd largest car market in Asia. 4
    • MarutiHyundaiTataFordHindustan MotorsMahindra and Mahindra 5
    • Mahindra & Mahindra : Product range includes: Jeep Scorpio Marshal etc.Tata : Product range includes: Tata Safari Tata Sierra Tata SumToyota: Product range includes: Toyota Qualis 6
    • A study conducted to understand the UV customer by advertising agency ‘Interface Communication’ revealed the following criterion of consumer buying process:-Customer preferred big size as it stands for status.Consumers seek latest technology.Consumers wants the sheer thrill and passion of driving an SUV at affordable prices. 7
    • Mahindra & Mahindra Limited (M&M) is a major automobile company in India. It is the flagship company of the Mahindra Group. It was set up in 1945 to make general-purpose utility vehicles for the Indian market.The company has recently started a separate Sector, Mahindra Systems and Automotive Technologies (MSAT) in order to focus on developing components as well as offering engineering services. 8
    • In late 1990’s Mahindra, a leader in the UV segment, was fast witnessing loss of market share. Global players were entering the Auto market and aggressively launching products.The Mahindra image was a big barrier as well. Though it had positives as rugged, tough, reliable, economical vehicle. The negative parameter were: Uncomfortable, rough, not easy to drive, rural imagery, down market, fuddy-duddy etc. 9
    • When the Mahindra started to lose its market share because of previous mentioned problems they decided to launch a product with the following objectives:To create a new segment and retain market domination.To differentiate offering (vis-a-vis MNCs)- i.e. to provide an excellent value proposition to the customer.To optimize project costs. 10
    • Providing the low cost transportation range to rural & semi-urban market.Develop the strong presence in urban market with VFM product.To compete with global players & make his presence in urban market M&M embarked on project Scorpio. 11
    • For MNC competition it did not have deep pockets.The project cost had to by optimized.Product should give VFM.Product should be very affordable.Product was needing innovation & thinking out of the box. 12
    • A unique process called IDAM (integrated design & manufacturing).Best in worlds tie ups but in-house executions.Customer focus from thought to finish.A cross-functional, co-located, young, lean team. 13
    •  Lowest project cost Intensive testing All new manufacturing set up It is easer to make what you can sale then to sale what you have made. Guide line of the force of the IDAM (Mumbai) 14
    • Every aspect of product developmentDesign & developmentTesting & validationManufacturingVendor development & marketing 15
    •  M&M tied up with the best in the world in their respective areas in auto industries. As:- Seats & interiors Lear, USA Paint shop Durr, Germany Tester of final assembly Fori Automation, USA Body shop Wooshin, Korea Dies Fuji, Japan Press shop Fukui, Japan Global Alliances For The Best Petrol engines Renault A.C. BHER, Germany Suspension Samlip, Korea Exteriors Visteon, USA 16
    • Trapped the consumer requirementMapped the market potential of the various vehicle categories.Visited to market & met the customerThe customer requirement were converted into product specification.Customer inputs were taken at every stage. 17
    •  Built a brand new vehicle with 100%supplier involvement The cost of the project was $120 million Many multi-nationals were coming in Many has a talk with M&M but in the end decided to move forward alone - SUV’s Now M&M had to decide about their products Did not had any expertise to do a brand new product 18
    •  Two options left with M&M M&M had a very little experience in PD Risky decision After performing market research, styling and features for the new Scorpio started taking shape But M&M realized tough job – PD , hiring people , train them Only option – leverage the strength of suppliers available in India involved in PD 19
    • Went in search of suppliersLucas EngineeringM&M got IDAM process and soon developed its MPDSMahindra, its 120 people and engineers were responsible for the initial styling,body engg., chassis and frame design and the vehicle integration – Everything else was turned over to suppliers 20
    •  For interiors – Lear Cost were also kept low because M&M struck to their original parameters for the project and didn’t change specifications or content Over three years many automakers were having different designs – Scorpio design changed a little Mahindra stayed hand-off in the project and allowed suppliers to use their expertise, even if it meant using unproven process 21
    • A world class manufacturing set up was spread over 120 acres.Its capacity was 40,000 units annual on a 2 shift basis.It was stabilized in Nashik with a investment of USD 120 million.Infrastructure wise three new state of art line were developed for production. 22
    • First year of launch To capture the 22% of the premium hard top market in 9 months (fev.03) To sale 12000 Scorpio To increase Mahindra unaided brand recall score by 22 points (defined by brand track study score) To make Scorpio brand recall score to achieve 50 points. 23
    • With in three years of launch To capture 45% of the premium hard top market To sell 24000 units in Feb. 04 To make Mahindra emerge as a true urban playerStrategic branding approach Scorpio didn’t take the traditional UV image It needed to be seen like car to appeal car buyer 24
    • It gives car like driving pleasure & the space, fuel efficiency, power style, luxury & comfort like a car.It provides the status of a Pajero (international SUV) at the price of mid size car.It offered superior technology, dynamic looks, car like product and value for money.Car plusParent brand relation 25
    • Brand endorsementAdvertisement & promotion strategyMedia strategy Dynamic & high impact launch High visibility Push brand image even by the media vehicle 26
    • Branding impact through PR Mass media Direct marketing Events Customer Relationship Management 27
    •  Competition with  Accent  Ikon  Corsa  Esteem  Qualis  Safari  Sumo It have to adopt the penetrative pricing strategy. So It had adopted Rs.5-7 Lacs 28
    • Serve less markets but serve them wellPhased launch Mumbai, Bangalore, Delhi & Chennai With in four months---20 cities With in a year---50 citiesShowroom experienceInfrastructure 29
    • Volumes and Market Shares: Scorpio achieved its targets on market share and achieved a volume of 12,000 vehicles in the first 9 months of its launch.Image: Scorpio advertising had a very high recall for the mahindra brand as well as for the product. Apart from this, advertising actually positioned scorpio as a powerful vehicle with a sporty look. 30
    • Well respected manufacturersTechnologically advancedSuitable for city drivingGreat to driveMakes VFM vehiclesProud to ownMakes good quality vehicles 31
    • Scorpio managed to pull out customers from the C segment of vehicles.The strategy delivered with more and more small and mid-size car buyers choosing the Scorpio over the other. 32
    • The Scorpio was awarded various from various bodies. M&M has more than 39% of market share in hard tops, sold 11,800 Scorpios in the first 9 months of operation and due to this campaign, Mahindra image improved. 33