INTRODUCTION:Indian automobile industry 1898-first motorcar rode down to Indians roads. The Hindustan Motors was set up in 1942, & in 1944, Premier Automobile was established to manufacture automobiles in India. 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.
Interesting facts: India is the 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. India‟s largest car-market Maruti Udyog Ltd(MUL) was privatized in 2002 with Suzuki Motor Corporation moving into the driving seat after acquiring a majority stake & ,management controlling the Maruti Suzuki Joint venture.
Major players in the indianautomobile(car) market Maruti Hyundai Tata Ford Hindustan motors Mahindra and Mahindra
Mahindra & Mahindra It is a major automobile co. in India. It is the flagship co. of the Mahindra Group. The company was set up in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. Purpose- to make general purpose utility vehicles for the Indian market.
Mahindra & Mahindra It soon expanded into manufacturing general-purpose utility vehicles, starting with assembly under licence of the iconic Willys Jeep in India. Soon established as the Jeep manufacturers of India, M&M later branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors.
Positive & negative factsPositive:Rugged, tough, reliable, economical vehicles.Negative:Uncomfortable, rough, not easy –to – drive, rural imagery, down market, fuddy duddy, not technologically advanced.
ObjectivesWhen Mahindra started to lose its market share because of its problems they decided to launch a product with the following objectives: To create a new segment & retain market domination. To differentiate offering i.e. to provide an excellent value proposition to the customer. To optimize project costs.Consumer research-SUV concept-This marks the beginning of the Scorpio story(1997)
Scorpio It is a SUV manufactured by Mahindra & Mahindra Limited. It was the first SUV from the company built for the global market. The Scorpio has been successfully accepted in international markets across the globe, and will shortly be launched in the US. The Scorpio was conceptualized and designed by the in-house integrated design and manufacturing (IDAM) team of M&M. The car has been the recipient of three prestigious awards: the "Car of the Year" award from Business Standard Motoring; the "Best SUV of the Year" by BBC World Wheels; and the "Best Car of the Year" award, again, from BBC World Wheels.
Place Phased launch: Mumbai, Bangalore, Delhi & Chennai within 4 months 20 cities within a year 50 cities Showroom experience Infrastructure.
Promotion Advertising strategy: The Television Communications(TVCs) as well as the press still-shots were shot in Australia to provide an international city feel. Media strategy: PR, mass media, direct marketing, events.
STPSEGMENTATION: Urban Semi-urban RuralTARGETING: UrbanPOSITIONING:(powerful vehicle)Luxury of a car and the thrill of an SUV.
QUESTIONS???Q.1 Is Scorpio a new product or an example of line extension?Ans. It is a new product through Integrated Design And Marketing (IDAM).
Q.2 Evaluate the management decision to launch Scorpio.Ans. Category A declined from 55% in 1999 to 34% in 2001, on the other hand, category B i.e. semi –luxurious was growing at 44% in 2001. Category C was maintaining a growth of 14%. Category D & E – Super premium cars , limited in size in volume.
Impact on M & M With the launch of the Scorpio, things started looking up for Mahindra. Improvement in the bottom line as well as the return to the shareholder. Revenue increased from Rs. 1827 cr. In F02 to Rs. 2511 cr. In F03, a growth of 37%. The PBIT too zoomed up from Rs.102 cr. in F02 to Rs.147cr. in F03 , an increase of 47%. The share prices have outperformed the sensex & share prices had zoomed from Rs.100 to Rs.400 by Dec 2003. The Mahindra saliency score improved by points among MUV/SUV owners and by points among all car owners. The overall positive opinion about Mahindra also moved up by 18% among MUV/SUV owners and by 11% among all car owners.
Q.3 What is your opinion of Scorpio as a brand name & its positioning in India?Ans. Scorpio as a brand-Dynamic looks, outdoor fun companion, power , strength, stamina, speed, city –dweller, sporty “(Cars will now suffer from low self esteem”) Positioning in India- powerful vehicle, “Luxury of a car and the thrill of an SUV”.
Q.4Take another automobile company in today‟s competitive scenario and what can they learn from „Project Scorpio‟.Ans. Maruti Suzuki-2%
Current status of Scorpio Scorpio new variant Scorpio EX Rs.41,000 cheaper than Scorpio LX. Target: young professionals and college goers in the age group 18–25. Promotional tools: social medium such as Facebook. Scorpio range now starts at Rs.7.21 lakh & extends to Rs.11.89lakh(July 2011).
M&M is working now which could be positioned below the Scorpio(market buzz is that a new SUV to seat upto 5 occupants & will be powered by sub-2 litre engine.) M&M hardly any competition in affordable SUV segment(Scorpio & Bolero) except Tata Safari(starts from Rs. 7.90 lacs).
Future directions – globallevel First SUV from the company for the global market. Across the world in the countries such as Italy, France, Spain, Turkey, Sri Lanka, Russia,Egypt,Nepal,Malaysia,Qatar, South Africa, Brazil, Chile & will be shortly launched in US.