Mahindra scorpio nikhil ingale


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Mahindra scorpio nikhil ingale

  1. 1. ByNikhil Ingale 1
  2. 2. 2
  3. 3.  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
  4. 4. 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
  5. 5. MarutiHyundaiTataFordHindustan MotorsMahindra and Mahindra 5
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14.  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
  15. 15. Every aspect of product developmentDesign & developmentTesting & validationManufacturingVendor development & marketing 15
  16. 16.  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
  17. 17. 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
  18. 18.  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
  19. 19.  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
  20. 20. 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
  21. 21.  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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. Brand endorsementAdvertisement & promotion strategyMedia strategy Dynamic & high impact launch High visibility Push brand image even by the media vehicle 26
  27. 27. Branding impact through PR Mass media Direct marketing Events Customer Relationship Management 27
  28. 28.  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
  29. 29. 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
  30. 30. 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
  31. 31. Well respected manufacturersTechnologically advancedSuitable for city drivingGreat to driveMakes VFM vehiclesProud to ownMakes good quality vehicles 31
  32. 32. 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
  33. 33. 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