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. 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
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. 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. 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. 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. 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. 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. 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. 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. 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. Every aspect of product development
Design & development
Testing & validation
Manufacturing
Vendor development & marketing
15
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Brand endorsement
Advertisement & promotion strategy
Media strategy
Dynamic & high impact launch
High visibility
Push brand image even by the media vehicle
26
27. Branding impact through
PR
Mass media
Direct marketing
Events
Customer Relationship Management
27
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. 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. 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
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. 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.
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