Presented by: Dr. Gaveshna Dr. Manpreet Dr. pallavi Shivani goel Rahul RajTarun kumar arora
Introduction:Mahindra and Mahindra A major automobile company in India Flagship company of Mahindra group
The Mahindra Group is a $ 4.5 billion * conglomerate is a leading manufacturer of multi-utility vehicles with significant presence in key sectors like farm equipments, infrastructures, information technology and financial services.The Group has leading presence in many key sectors:-1)Automotive (Mahindra& Mahindra LTD.)2)Farm equipment (Mahindra Tractors)
3) Mahindra trade and Financial Services (Mahindra Inter trade Mahindra &Mahindra Financial Services Ltd4) Mahindra Systems and Automotive Technologies (Mahindra Engineering Services, Mahindra Ugine )5) Information Technology (Tech Mahindra,Bristlecone) and Infrastructure Development(Mahindra GESCO, Club Mahindra Holidays,Mahindra World City).
Is Scorpio a new product or anexample of line extension?
Product line – A group of products within a product class that are closely related because they :• Perform a similar function• Are sold to the same customer groups• Are marketed through the same outlets or channels• Fall within given price ranges
Product development- two types New products range from new-to-the-world products that create an entirely new market at one end, to minor improvements or revisions of existing product at the other.
Yes ,SCORPIO is a new product development. As before the launch of Scorpio, Mahindra & Mahindra image was a big barrier. It only covers semi-urban and rural markets in India. In 1990‟s the company was experiencing loss of share.
Objectives of this newproduct development To create a new segment and retain market domination To differentiate offering i.e. to provide an excellent value proposition to the customer To become a significant global player in the chosen product category To optimize project cost
Deriving forces which leadsto the new productdevelopment India enjoys a distinct cost advantage with respect to auto-ancillary manufacturing capabilities.(Indian labor cost is only around 8-9% of sales) MUV as a % of the overall passenger car market was just 16% in 2001. Consumers want to consume premium imagery at prices affordable to them.
Untapped niche: Mahindra was lacking in products that catered to the modern urban consumer needs. The market was moving from traditional multi utility ,non-luxurious vehicles to luxurious vehicles.
To achieve these purposes, thecompany started the productdevelopment process termed IDAM-Integrated Design And Manufacturing.
The company „Mahindra &Mahindra‟ launched the new vehicle successfully in 2002 under the brand name.. SCORPIO
Urban market was showing more potentialfor vehicle sales and UVs were gaininghigher acceptability in urban areasInternational UVs were entering themarket and competition was getting tougherThe market was moving from traditionalmulti utility , non luxurious vehicles toluxurious vehicle …….
From consumer perspective customer preferred big size as its stands for status . Consumer seeks latest technology Customer wants the sheer thrill and passion of driving an SUV but at affordable price
From context of Mahindra Mahindra (in late 1990s) a leader in UV segment was losing their market share . Global player were entering in the market and aggressively launching products Mahindra share of business was largely from semi urban and rural market of India
Mahindra sales come from institutional sales army , police , military groups They had wide product port folio but was lacking in product that catered to modern urban consumer needs The market where Mahindra was strong were stagnating …..
Mahindra image……….. Mahindra image was a big barrier there brand were not seen as modern and technological advance . there image was uncomfortable , rough , not easy to drive ,
So management decided to launchscorpio with a following objectives to create a new segment and retain market domination . To differentiate offering that is to provide an excellent value proposition to customer . To optimize project cost .
There was no SUV in the country that the masses could buy . So based on consumer research Mahindra found to make SUV‟s a mass concept in India seen as comfortable , easy to drive , and imaginary comparable to international brand.
So to make Mahindra and Mahindra known world wide for the quality , durability , and reliability , of its product and services and to dominate in the niche UV market they decided to launch scorpio .
POSTIONING OFSCORPIO Scorpio as a powerful vehicle with a sporty look among the premium car consumers Luxury of car , thrill of SUV Make good quality vehicles Create to drive Proud to own
RATIONAL BENEFITS – world class vehicle ,good looks , car like comfort , great valueVALUE BENEFITS – ownership experience of thrill, excitement ,power relational benefitsRELATIONAL BENEFITS – young , modern , premium ,city companion/extension of lifestyleBRAND PROMISE – luxury of a car , thrill of an SUV
Advertising and promotion strategy “Nothing else will do” Scorpion king Media coverage on IDAM approach , people behind Scorpio world class technology etc
ANOTHER AUTOMOBILECOMPANY THAT COULDLEARN FROM “PROJECTSCORPIO
CHALLENGES FACED BY “PROJECTSCORPIO” Positive but unfavorable brand Image . Negative parameters * Uncomfortable and rough. * Not easy to drive and * Rural imagery.
STRATEGIES ADOPTED Proper market research ADOPTED UNIQUE PROCESS i.e. IDAM Strong positioning Competitive price advantage .
AUTOMOBILE COMPANY THAT COULDLEARN FROM “PROJECT SCORPIO” IS MARUTI SUZUKI
WHY MARUTI SUZUKI ?? Both Mahindra & Mahindra and Maruti Suzuki have positive brand image but unfavorable to cater luxury segment. Like “Project Scorpio” Maruti Suzuki can stretch upward by introducing new product line i.e. SUV‟s. Innovation in terms of technology . Educating customer about novel concept of their SUV‟s by choosing right media mix and promotion activities.