The document discusses the Indian automobile industry and Mahindra & Mahindra's Scorpio SUV. It notes that India is a top manufacturer of vehicles globally. To compete with international manufacturers entering India, M&M launched the Scorpio SUV in 2002 using a unique integrated design and manufacturing approach with supplier involvement. This low-cost approach helped make the Scorpio affordable yet technologically advanced. It was a major success, exceeding sales targets and improving M&M's brand image. The Scorpio helped M&M gain a large share of the premium SUV market in India.

1. By
Nikhil Ingale
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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.
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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.
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5. Maruti
Hyundai
Tata
Ford
Hindustan Motors
Mahindra and Mahindra
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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)
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15. Every aspect of product development
Design & development
Testing & validation
Manufacturing
Vendor development & marketing
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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
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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.
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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
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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
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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
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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
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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.
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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.
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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
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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
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26. Brand endorsement
Advertisement & promotion strategy
Media strategy
Dynamic & high impact launch
High visibility
Push brand image even by the media vehicle
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27. Branding impact through
PR
Mass media
Direct marketing
Events
Customer Relationship Management
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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
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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
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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.
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31. Well respected manufacturers
Technologically advanced
Suitable for city driving
Great to drive
Makes VFM vehicles
Proud to own
Makes good quality vehicles
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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.
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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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