Mahindra launched Project Scorpio in the 1990s to enter the SUV market and compete with global players. Some key aspects of Project Scorpio included developing a new product to create a new market segment, having a customer-focused design process, using a young and lean team, and focusing on low project costs and intensive testing. The Scorpio was successfully launched and became a best-selling SUV for Mahindra, capturing a significant market share. This case study demonstrates how Mahindra was able to develop and launch an innovative new product to expand into new market segments and strengthen its position against competitors through Project Scorpio.

1. CASE STUDY OF MAHINDRA
Presented By:
Deepa shah vig
Vinni badola
Mukul Singh Pundir
Aarzoo Dua
Diksha
Ishaan

2. FACTS OF THE CASE
1) 1942 Hindustan motor was setup and 1945 premium automobile was set up in India
2) Imports were liberalized
3) Growth in supply of cars in Indian Market
4) Foreign manufacture of cars have 70% localized manufacture parts
5) Many MNC has started exporting Components made in India to there other plants across the world
6) 1991 Indian automobile was open for foreign manufacturer of cars
7) new models fiat,santro,lancer,ford ikon were launched in emerging market of India
8) In 2002,100% FDI in automobile sector, remove capital investment for fresh entrance
9) 3 million car produce in 1999 rose to 5 million in 2002
10) 90.2% share by economy segment and rest by luxury segment

3. ABOUT MAHINDRA
1) 1990 M&M was losing market share against global players in Indian market
2) M&M share from largely from rural to semi-urban market
3) M&M was not seen as model and technological advance
4) They decided to launch a new product with following objectives
a) create a new segment and retain market domination
b) differentiating offering
c) To optimize project cost
d) Develop strong presence in urban market with range of product with value for money
e) To compete with global players it started the “PROJECT SCORPIO”

4. PROJECT SCORPIO
1) Unique process IDAM( Integrated design and manufacturing)-A product development process to
deliver world class, zero defect product
2) Customer focus from thought to finish
3) A cross functional,co located young lead team
4) Lowest project cost
5) Intensive testing
6) All new manufacturing setup
7) Entire value chain starting and ending with the customers. This ensure that product is design
around the customers and not vice versa.

5. MILESTONE OF THE PRODUCT
Global alliance
Customer Focus
Young lean Learn
Low project Cost
Intensive testing
Manufacturing setup

6. MARKETING STRATEGY OF SCORPIO
1st year of launch
1) To capture 22% of premium hard top market in 9 months
2) To sell 12,000 Scorpio in 9 months
Within 3 year of launch
1) To capture 45% of premium hard top market
2) To sell 24,000 units
3) To make Mahindra emerge as a true urban player

7. Q&A
Q1 Is Scorpio a new product or line of extension????
Answer: Yes, Scorpio is a new product development
a) As before the launch of Scorpio M&M image was big barrier
b) Before Scorpio, there was no SUV car of Mahindra so it was new product for them
c) created a new segment and retain market domination.
Q2 Evaluate the management decision to launch Scorpio??
Answer: The main decision that management took was to launch Scorpio was that to create a new segment of
product .To fulfill the basic psyche of Indian customer who wanted value for money and develop strong
presence in urban market with product that can compete with existing global player in same market.
It was found that semi luxurious cars segment was growing rapidly at rate of 42.9% so this compel M&M to
launch a differentiated product in same category to compete existing players and offer value to the money for
customers.

8. • Q3: What is your opinion of Scorpio as a brand name and its positioning in India????
Answer: Scorpio as a brand, dynamic looks, powerful presence and semi luxurious SUV which has rapidly
grown in the segment of customers seeks to thrill and drive SUV at affordable price and value for money. It
had develop its presence as a strong and reputed SUV in the Indian market over the years with increasing
number of satisfy customers.
POSITIONING IN INDIA:
“To position the vehicle as a rare combination of luxury and brute force”
This positioning, in a way, combines the value propositions of Toyota Qualis as a “family car” and Tata Safari
as a “rugged vehicle” and yet it is distinct from the others in the competitive set. Another advantage of this
option is that this option is clearly different from “ruggedness” yet not too far from it so it fits in with the
positioning of Mahindra in the minds of the consumers and yet gives Scorpio an identity which is different from
that of Mahindra since the luxury element is added to the mix

9. • Q4 Take another automobile company in today’s competitive scenario and what can they learn from
project Scorpio???
Answer: The company that can learn from project Scorpio is MAURTI SUZUKI, like “PROJECT
SCORPIO” it can stretch upwards by introducing new product line that is SUV’S by innovation in term of
technology and they can introduce there first product in SUV segment deriving from project Scorpio in
Indian context

10. STRENGTHS
1) Good performance for long distances
2) Powerful player in the taxi/rental segment
3) Good presence in the rural areas
4) Excellent branding and advertising, and low after
sales service cost
5) Maintenance cost is low as compared to other
companies
WEAKNESS
1) Limited international market
2) Mahindra lacks in premium customer service
3) No visibility in hatchback segment
OPPURTUNITIES
1) Developing hybrid and fuel efficient cars
2) Rising rural demands
3) Newer innovations
4) Increasing purchasing power of customers
5) Manufacturing cars in the hatchback and also in
sedan segment
THREATS
1) Intense competition.
2) Government regulations and policies for automobile.
3) Increasing fuel prices
4) Rising Input Costs
5) Competition for public transport
SWOT

11. MAHINDRA
DESIGNERS
FOR THE LOVE OF
CREATIVITY
A ONE STOP SHOP FOR DESIGNER INTERIORS

12. WHY MAHINDRA DESIGNERS?
• We give personalized furniture products
• A designer range at affordable price
• Best quality furniture
• Updated designer fittings
• A 3D pre purchase view
• Superb after sales services
• Selective options for new customers
• Easy online selections
• Special designer catalogues
• A designer experience
• A recognized brand name and goodwill

13. YES, WE ARE DIFFERENT..!!

14. BCG ANALYSIS
Low
Line of
3rd
High
Low
High
Line
of
10%
MARKET SHARE
IR
30% I GI N GI= GODREJ
INTERIO(23%)
N=NILKAMAL(32%
)
I= IKEA(7.7%)

15. LINKS USED
• MARKET SHARE OF GODREJ INTERIO IS 23% 2015
• http://brandequity.economictimes.indiatimes.com/news/business-of-brands/godrej-interio-to-shell-out-
rs-300-cr-in-domestic-market/49583471
• GROWTH RATE OF FURNITURE INDUSTRY IS 30% 2015
• http://www.indiawood.com/market_scenario.html
• MARKET SHARE OF NILKAMAL IS 32%
• http://economictimes.indiatimes.com/markets/stocks/news/improving-margins-may-earn-nilkamal-re-
rating/articleshow/54775660.cms
• MARKET SHARE OF IKEA IS 7.7%
• http://www.ikea.com/gb/en/this-is-ikea/newsroom/press-release/ikea-continues-to-grow-in-the-uk/

16. LINE STRETCHING
• Bedroom
• Desking
• Study room
• Modular
• Marriage Décor Package
• Dining room
• Living room
• Storage
• Mattress
• Home accessories
• Seating
• Kitchen
Mahindra Designs

17. LAUNCH STRATEGIES
• Tie up with top two interior designers
• Give the employment opportunities to the final year interior designer students – Price cutting strategy
• National TV advertisement mainly in the prime hours
• 3D virtual planner – customers can visualize the furniture and fittings at their home
• Mobile application – Where the customers can click the picture of their home and our expert designers
team will give a picture of their home with our interiors
• Online customer service – We will active a chat option and provide a small form where the website
guest can fill the contact details and requirements
• The block game – we can provide a mobile game where the user can design the home décor according
to the pieces of pictures given
• The festive deals – Diwali, Holi, Christmas etc..
• Pre festival online offers
• Special discounts for the online buyers – directly from the company’s website
• Warrantee facility till 2 years – Free** Conditions apply
• Tie ups with Builders and real estate – They can choose the design

18. • Non Branded local
furniture stores
• Lack of brand
awareness
• Acute competition
• Growing nuclear
family trends
• Increase in
company
revenues
• Capturing another
product line of
market
• A lot of Research
& Development
required
• Lack of
innovation
• Online
competitors
• Mature market
• Discovery product
line
• Variety vs. Idea
• Strong brand
recognition &
goodwill
Strengths
Weaknes
s
Threats
Opportun
ities