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A SUMMER INTERNSHIP REPORT
ON
MARKETING STRATEGIES WITH SPECIAL
REFERENCE TO MAHINDRA SCORPIO
GRAPHIC ERA UNIVERSITY
DEHRADUN
SUBMITTED FOR PARTIAL FULFILMENT OF
MASTER OF BUSINESS ADMINISTRATION
(MARKETING)
(2015-17)
SUBMITTED TO:
Dr. SANJEEV ARORA
FACULTY OF MANAGEMENT
Graphic Era University
SUBMITTED BY:
MANUJ SINGH
MBA 2ND YEAR MARKETING
Graphic Era University
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DECLARATION
I hereby declare that the project entitled “MARKETING STRATEGIES WITH SPECIAL
REFERENCE TO MAHINDRA SCORPIO” submitted in partial fulfilment of the requirement
for the degree of MBA to GRAPHIC ERA UNIVERSITY, at Dehradun is my original work and
not submitted for award if any other degree/ diploma or similar title or prize.
DATE: ……. 2016 MANUJ SINGH
MBA (2015-17)
PLACE: Dehradun
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ACKNOWLEDGEMENT
This report has been made possible with the cooperation of many persons
whom I wish to express my gratitude and appreciation. I am very grateful to the
people who supported me to transform the report in the materialistic form.
I am thankful to Dr. SANJEEVARORAfaculty management at GRAPHIC
ERA UNIVERSITY, Dehradun for his gratitude during my project and giving me
full co-operation and also valuable information and guidance, without which it
would not be possible for me to complete the manuscript.
I would also like to thanks the librarian and staff members of GRAPHIC
ERA UNIVERSITY, Dehradun for providing me the required books in this field
and my friends who were always there to assist me at odd hours also.
MANUJ SINGH
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EXECUTIVE SUMMARY
Mahindra & Mahindra (M&M), the market leader in multi-utility vehicles in India. The company
started manufacturing commercial vehicles in 1945. M&M is the leader by far in commercial
vehicle and the second largest in the passenger vehicle market. The company is the world’s sixth
largest medium and heavy commercial vehicle manufacturing.
Mahindra is best known for utility vehicles and tractors in India, Its automotive division, the
company's oldest unit (founded in 1945), makes jeeps and three-wheelers (not passenger "auto
rickshaws," but utilitarian delivery and flatbed incarnations). M&M's farm equipment sector,
formed in 1963 during India's green revolution, manufactures tractors and industrial engines.
M&M also produces military vehicles. The company has facilities located throughout India.
The survey involved gathering wide information about the company, its products, customer
satisfaction and impact of various competitive firms on the company.
From the information collected, various aspects were identified where the company needs to focus
more to improve the efficiency of marketing team of Mahindra Automotive.
The research was conducted through collection of primary and secondary data. Secondary data
was collected through visiting various web sites, automobile magazines and other reliable sources.
Primary data was collected through a well-framed questionnaire, of which later a detailed analysis
was done using various statistical I.T. tools like MS Word and MS Excel.
On the basis, the secondary data analysis and the extensive analysis of the primary data,
interpretations were drawn for the questions and conclusion is drawn. Certain suggestions are also
drawn from the analysis to help.
Mahindra Automotive to increase its market share in commercial passenger segment and MPVs.
The main research that followed is to know “MARKETING STRATEGIES WITH SPECIAL
REFERENCE TO MAHINDRA SCORPIO”, a new SUV recently launched by Mahindra. Due
to the limited resources and time constraints, the study was conducted within the area Dehradun
city.
5INDEX
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ABOUT MAHINDRA FIRST CHOICE 7
COMPANY PROFILE 10
MILSTONE, AWARDS AND ACCOLADES 12
MILESTONES of M&M 16
PRODUCT PROFILE 18
BOLERO VARIANTS 20
INTRODUCTION TO STRATEGY 32
RESEARCH METHODOLOGY 53
DATA ANALYSIS & INTERPRETATION 60
FINDING 70
RECOMMENDATION 72
CONCLUSION 74
BIBLIOGRAPHY 76
ANNEXURES 78
QUESTIONNAIRE 79
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ABOUT MAHINDRA FIRST CHOICE
Mahindra First Choice Wheels is the country’s preferred used car mart and is India’s only
organised multi-brand player, with 500+ outlets in 270+ cities in India.
The company plans to expand this number to 1800 outlets by the year 2020. This implies that
customers will soon be able to choose from a wide range of certified used cars throughout India,
including the metros and tier-2 towns and cities.
MAHINDRA GROUP
Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 to
bring the iconic Willys Jeep onto Indian roads. Over the years, we’ve diversified into many new
businesses in order to better meet the needs of our customers. We follow a unique business model
of creating empowered companies that enjoy the best entrepreneurial independence and Group-
wide synergies. This principle has led our growth into a US $16.5 billion multinational group with
more than 180,000 employees in over 100 countries across the globe.
Today, our operations span 18 key industries that form the foundation of every modern economy:
aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting
services, defence, energy, farm equipment, finance and insurance, industrial equipment,
information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers.
Our federated structure enables each business to chart its own future and simultaneously leverage
synergies across the entire Group’s competencies. In this way, the diversity of our expertise allows
us to bring our customers the best in many fields.
Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only
tractor company worldwide to be bestowed this honour. It also holds the distinction of being the
only tractor company worldwide to win the Deming Prize. The US based Reputation Institute
ranked Mahindra among the top 10.
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Mahindra First Choice Services to expand chain of workshops
The multi-brand car workshop chain Mahindra First Choice Services, a wholly-owned subsidiary
of the diversified Mahindra & Mahindra Limited, has announced plans to rapidly expand its chain
of workshops from 42 to 100 by March 2015.
The chain inaugurated its first Franchisee Owned Franchisee Operated (FOFO) workshop in
Kurnool town today.
YVS Vijay Kumar, Chief Executive Officer of Mahindra First Choice Services, said, “We see
great potential for the multi-brand car servicing market in the country. This has prompted us to
further strengthen our presence. Our business model for franchisees has received a strong
response.”
MFCS is targeting over 100 Franchisee Owned and Franchisee Operated workshops by March
2015. Of this, 20 workshops are expected to come up in Telangana and Andhra Pradesh, he said.
For a car service provider, a strong supply chain for spares and technical training are two most
essential elements. With 42 existing workshops and over 2,00,000 cars serviced, MFCS believes
that it has a strong proposition for the franchisees. The company offers a simplified business model
in multi-brand car servicing with a robust supply chain for spare parts through its cluster
warehouse.
Each cluster warehouse supplies parts as per the daily requirements of Franchisee Owned and
Franchisee Operated and Company Owned and Company Operated centres, thereby reducing the
need to maintain huge inventories at workshops.
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AFTER MARKET SECTOR
Mahindra & Mahindra has added a new business vertical - After-Market Sector for taking care of
the growing population of vehicles in India (6 million cars currently, expected to grow to 17
million by 2015). There is vast untapped potential in the after-market space, covering multi-brand
used vehicles, servicing and spares which support this business ecosystem. This will create in the
organized sector, a business ecosystem which replicates the existing ecosystem for new vehicles.
The Business Units in the After-Market Sector includes:
 Mahindra First Choice Wheels Ltd. (Sale & Purchase of used Cars)
 Mahindra First Choice Services Ltd. (Multi-brand Service Chain)
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COMPANY PROFILE
HISTORY
OF
MAHINDRA & MAHINDRA AUTOMOTIVE
Mahindra & Mahindra (M&M) was established in 1945 as Mahindra & Mohammed. Later on,
after the partition of India, one of the partners - Ghulam Mohammad - returned to Pakistan, where
he became Finance Minister. As a result, the company was renamed to Mahindra & Mahindra in
1948.
M&M started its operation as a manufacturer of general-purpose utility vehicles. It assembled
CKD jeeps in 1949. Over the passing years, the company expanded its business and started
manufacturing light commercial vehicles (LCVs) and agricultural tractors.
Apart from agricultural tractors and LCVs, Mahindra & Mahindra also showed its dexterity in
manufacturing army vehicles. Soon, it started its operations abroad, through its plants set up in
China, the United Kingdom and the USA.
M&M partnered with companies prominent in the international market, including Renault SA,
International Truck and Engine Corporation, USA, in order to mark its global presence. M&M
also started exporting its products to several countries across the world. Subsequently, it set up its
branches including Mahindra Europe Srl (based in Italy), Mahindra USA Inc., Mahindra South
Africa and Mahindra (China) Tractor Co. Ltd.
At the same time, M&M managed to be the largest manufacturer of tractors in India, by holding
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leadership in the market of the country, for around 25 years. The company is an old hand in
designing, developing, manufacturing and marketing tractors as well as farm implements. It made
its entry to the passenger car segment in India, with the manufacture of Logan (mid-size sedan) in
April 2007, under the Mahindra Renault collaboration.
Soon after the considerable success of Logan, M&M started launching a wide range of LCVs and
three wheelers as well as SUVs including Scorpio and Bolero. In the present time, Bolero has
gained immense popularity in India. It is one of the most opted vehicles in its class.
MAHINDRASCORPIO
Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle
in India in 2002.
This SUV has redefined the expectations for the design of SUVs with its sturdy looks and powerful
performance, the sophisticated interior design adds to the further glory to the appearance.
MAHINDRABOLERO
Mahindra Bolero is one of the most successful and popular utility vehicle of the
Mahindra and Mahindra Group. The car is robust in appearance and it has been
elegantly designed, keeping in mind the conditions of the Indian roads.
Mahindra Bolero is also among the best fuel-efficient cars of India as the manufacturer has
equipped it with a 2500 cc diesel engine with5- speed transmission.
MAHINDRARENAULT LOGAN
Much awaited Mahindra-Renault Logan has been launched in India. This compact sedan is a
spacious, practical and affordable vehicle. The outlook of Logan is impressive and the basic
version is a value for money, however the top-end versions are a bit high on price. The prominent
feature of this car is its performance, interiors and economy.
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MAHINDRAXYLO
Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle (MUV) “Xylo” in India
on January 13, 2009. The car boasts of having all the luxurious features that are seen in today’s
sedans, with the ample space of a utility vehicle. Xylo's muscular stance contributes to its
commanding road presence. Fully packed with the latest features, the MUV is sure to impress
Indian consumers and provide a stiff competition to the other vehicles within its class.
Performance OfMahindra XYLO
Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel engine, which
generates a power of 112bhp @ 3800 rpm and a peak torque of 24 kgm @ 1800-3000 rpm. The
powerful engine is developed on the NEF CRDe platform and is mated to 5-gears manual
transmission. The car accelerates from rest to 60 km/h in just 5.8 seconds.
MILSTONE, AWARDS AND ACCOLADES
M&M’s 61st year was studded with a number of noteworthy achievements,
prestigious prizes and glittering awards.
DUAL HONOURS FOR CHAIRMAN MR.KESHUBMAHINDRA
Chairman, Mr. Keshub Mahindra was awarded the “Business Visionary Award 2006” instituted
by the National Institute of Industrial Engineering (NITIE), Mumbai.
Chairman, Mr. Keshub Mahindra was also awarded the prestigious IBS Kolkata Lifetime
Achievement Award for his ‘unparalleled contribution to industrial growth and social and
economic development of the community’.
The Institute of Chartered Financial Analysts of India’s (ICFAI) India Business School (IBS)
presented it, Kolkata, at the Strategy Summit 2007, held in Kolkata.
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SLEW OF HONOURS FOR MR.ANAND MAHINDRA
Mr. Anand Mahindra, VC & MD, Mahindra Group, received a number of prestigious awards in
2006-07, including:
o The prestigious CNBC Asia Business Leader of the Year Award for the Year 2006 as well as
the CNBC TV India “Business Leader of the Year Award”.
o The ‘CEO of the Year’ award at the India Brand Summit 2006 co-sponsored by Business
Standard and ITM Business School in association with Times Now and DNA newspaper.
o The LMA Entrepreneur of the Year 2006 award, instituted by the Ludhiana Management
Association (LMA).
o The Most Inspiring Corporate Leader of the Year’ Award by NDTV Profit
o The NDTV Profit – Car & Bike Award 2007 for Automobile Man of the Year.
Mr. Anand Mahindra was also nominated as a Member of the Council of the Executive
Committee of the National Sports Development Fund (NSDF) of the Govt. of India. He was
featured in the list of 50 Most Influential Indians in Business Week’s edition dated August 13,
2007
HIGHEST CRISILRATINGFOR M&M
M&M has received the highest Governance & Value Creation rating, CRISIL GVC Level - I from
CRISIL for the ability to create value for all stakeholders, while adopting sound corporate
governance practices.
DUN & BRADSTREET AMERICAN EXPRESSCORPORATE AWARDS 2006
Mahindra & Mahindra was rated as the leading Indian company in the Automobile - Tractors sector
in the ‘Dun & Bradstreet – American Express Corporate Awards 2006’. The Automobile Sector
comprises of three categories – Passenger Vehicles, Commercial Vehicles and Tractors.
These awards recognize the virtues of size and growth in the awards methodology. M&M ranked
No. 1 in these two segments in the premier Dun & Bradstreet India publication, India’s Top 500
Companies 2006.
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MAHINDRARECEIVES AMITYHR EXCELLENCE AWARD
Mahindra & Mahindra was honored with the Amity HR Excellence Award at the Fourth Amity
Global HR Summit 2007 held at the Amity International Business School, Noida. The Amity HR
Excellence Award recognized Mahindra as one the most admired companies across the global on
account of its innovative strategies for Human Resources Management and Development.
GLOBAL HR EXCELLENCE AWARDFOR M&M
Mahindra & Mahindra won the Global HR Excellence Award for Innovative HR practices
(Manufacturing Sector), in the Asia Pacific HRM Congress, held in Mumbai. These awards
recognize organizations and individuals who have embraced change, encouraged constructive
challenges and demonstrated entrepreneurial skills in the corporate world.
M&M WINS BOMBAY CHAMBER GOOD CORPORATE CITIZEN AWARD
2006-07
M&M was presented with the coveted Bombay Chamber Good Corporate Citizen Award 2006-07
at a glittering ceremony held to celebrate the Chamber’s 172nd Foundation Day on September 21,
2007. Mr. Bharat Doshi, Executive Director, M&M Ltd. and Mr. Rajeev Dubey, Member of the
Group Management Board and Chairman, Mahindra & Mahindra CSR Council, received the
award on behalf of the company.
This Award recognizes and honors conspicuous achievement by corporate organizations by way
of service to the civic community, in addition to outstanding operational performance. It takes into
account several parameters, including Business Performance, Corporate Interests, Employee
Welfare, Customer and Stakeholder Satisfaction and Social Investment.
GOLDEN PEACOCK AWARD FOR EXCELLENCE IN CORPORATE
GOVERNANCE
Mahindra & Mahindra won the coveted Golden Peacock Award for Excellence in Corporate
Governance 2006. This award validates the company’s ‘Best-in-Class’ corporate governance
practices and reflects its transparent and ethical dealings with stakeholders across the entire value
chain. It recognizes the Management’s commitment to the highest standards of corporate conduct
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and its commitment to Corporate Social Responsibility as a distinct activity that helps build
commendable social values and adds to the ethical fiber of the organization.
BEST AUTOMOTIVE MANUFACTURING SUPPLYCHAIN EXCELLENCE
AWARD
Mahindra & Mahindra has been awarded as the organization with the “Best Automotive
Manufacturing Supply Chain Excellence”. The awards were presented by India Times
Mindscape (Times of India Group) along with the Business India Group at the Express, Logistics
& Supply Chain Awards held in Mumbai on September 28, 2007. A. C. Neilson is accredited with
the research for the award nominees and winners.
HIGH RANKINGS FOR MAHINDRA
M&M was ranked second in the prestigious e Most Trusted Car Company in India study conducted
by TNS. M&M scored 127 points, just seven points below the top ranking company, according to
a TNS communiqué.
➢ M&M was ranked 14th in The Economic Times prestigious ‘ET 500’ list of top achieving
companies in India. The company has moved up four ranks from last year. To quote from
the ‘ET 500’ write-up: “M&M’s ‘art-to-part’ strategy of diversification into the auto parts
value chain and its plans for new platforms for utility vehicles and joint venture with
Renault for Logan have led to a gain in ranks.”
➢ M&M was ranked 22nd in Business India’s annual survey of the country’s top companies
- Super 100
➢ M&M was ranked 31st in Business Today’s annual survey of India’s most valuable
companies.
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MILESTONES of M&M
MILESTONES OF MAHINDRA AND MAHINDRA
YEAR ACHIEVEMENTS
 1947 In October, the first batch of 75 Utility Vehicles (UVs) imported in CKD
condition from Willys overland Export Corporation.
 1949 Lease of 11,071 Sq. yards at Mazagaon from British India Steam
navigation. The first Willys Overland Jeep built in India at the Assembly Plant ,
Mazagaon, Bombay (now Mumbai).
 1954 Manufacture of Vehicles undertaken in collaboration with Kaiser Jeep
Corporation and American Motors Corporation.
 1962 Indigenous content of Jeep goes up to 70 per cent. To centralise
manufacturing operations, 137 acres of land purchased at Kandivli.
 1965 FC 150 Petrol Trucks introduced.
 1967 Two wheelers drive Utility Vehicles introduced. The 101" wheel base and
Metal Body UVs introduced. Indigenous content goes up by 97 per cent.
 1969 The start of vehicles export. Export of total 1200 UVs along with spare parts
to Yugoslavia. Exported also to Ceylon, Singapore, Philippines and Indonesia.
 1970 The contracts to export of 3304 vehicles, mainly to Yugoslavia and
Indonesia concluded.
 1974 Maxi miller campaign launched for the conservation of fuel. CJ 4A was
introduced with new transmission and axle ratio. Collaboration agreement with
Jeep corporation (subsidiary of AMC, Detroit).
 1979 The Government of India approves in principle, technical collaboration with
Peugeot (France) for the manufacture of XDP 4.90 Diesel Engine.
 1981 The Nasik Trucks Assembly Plant and Peugeot Engine Assembly Plant at
Ghatkopar inaugurated. NC 665 DP Mini Truck rolls out from Nasik Assembly
Line.
 1983 FJ 460 model was introduced with 4-speed gearbox. Engine plant at Igatpuri
formally inaugurated by Mr. Jean Boillot, President of Automobiles Peugeot of
France for the manufacture of 25,000 Peugeot and Petrol engines.
 1985 The New Mahindra Vehicle-MM 540 was launched in Bombay. NC 640
DP with 4 speed gearbox and Mahindra MM 440 was introduced.
 1986 CJ 640 DP Vehicle introduced.
 1987 MM 540 DP metal Body Wagonette introduced.
 1988 M&M signed a MoU with Hyderabad Allwyn Nissan Limited to form
Mahindra Nissan Allwyn Ltd., as its associate company with LCV operations in
Andhra Pradesh.
 1989 The CJ 340 DP model was introduced. M&M and Peugeot announced their
tie up for the manufacture of Peugeot 504 pickup truck, BA 10 gearboxes and latest
XD 3 diesel engines. M&M acquired automotive pressing unit at Kanhe, from
Guest Keen Williams Ltd.
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 1991 Introduced CJ 500 DI model with MDI 2500 A direct injection diesel
engines. M&M bags order to export 10,000 CKD kits. Commander range of
models: 650 DI, 750 DP/HT were also launched with tremendous market response.
 1993 The Mahindra Armada was launched
 1995 Mahindra Nissan Allwyn Ltd. (MNAL) was merged with M&M and
Zaheerabad LCV operations becoming part of Automotive Sector. FJ series of
LCVs were shifted from Nasik to Zaheerabad. Igatpuri Engine Plant received ISO
9002 certificate.
 1996 The new LCV model Cabking DI 3150 & Mahindra Classic vehicles were
launched. New Commander 5 Door Hard Top introduced.
 1997 Commercial production of the Ford Escort commenced at Nasik Plant.
License & Technical Assistance Agreement signed with Mitsubishi Motors
Corporation for Manufacture of SL Body at Zaheerabad (Voyager with XD 3 and
BA 10). Kandivli and Nasik plants received ISO 9002 certificate from RW-TUV.
 1998 Die shop Inauguration at Nasik Plant 2-8/8/97. Voyager was launched by
the Chairman at Zaheerabad Plant on 12/11/97
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PRODUCT PROFILE
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BOLERO VARIANTS
Scorpio SLX
Features and Specification
Make Mahindra
Model Scorpio
Variant SLX
Body Type SUV
No. of Doors 5
Fuel Efficiency:
City Mileage 9.4 kmpl
Highway Mileage 12.4 kmpl
Fuel Capacity 60 liters
Fuel Type Diesel
Fuel Grade -
Engine Parameters:
Displacement 2523cc
Bore -
Stroke -
Cylinder Configuration 4 inline
Valve Gear Operation -
Compression Ratio -
No. of Valves 8
Aspiration Turbo Charged
Fuel System DI
Horse Power 63.12@3200 ps@rpm
Torque 180@1440 Nm@rpm
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Steering and Suspension
Steering Type Rack and pinion, power assist
Power Steering Yes
Front Suspension Independent with coil spring
Rear Suspension Leaf spring
Dimensions:
Length 4056 mm
Height 1880 mm
Width 1660 mm
Wheel Base 2680 mm
Clearance 200 mm
Front Head Room Min: 60mm Max: 60mm
Rear Head Room Min: 60mm Max: 60mm
Rear Leg Room Min: 74mm Max: 94mm
Krebs Weight Min: 1615kg Max: 1615 kg
Drive Train
Type Manual
Gears 5
Drive Line RWD
Comforts Features
AM / FM Radio Present
Except AM / FM radio there is no other comfort is provided.
Safety: There is no safety feature included in Bolero SLX including antitheft system etc.
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Scorpio SLE
Feature and Specification
Make Mahindra
Model Scorpio
Variant SLE
Body Type SUV
Number of Doors 5
Fuel Efficiency:
City Mileage 9.5 kmpl
Highway Mileage 13.2 kmpl
Fuel Capacity 60 liters
Fuel Type Diesel
Fuel Grade -
Engine Parameters:
Displacement 2523cc
Bore -
Stroke -
Cylinder Configuration 4 inline
Valve Gear Operation -
Compression Ratio -
No. of Valves 8
Aspiration Turbo Charged
Fuel System DI
Horse Power 63.12@3200 ps@rpm
Torque 180@1440 Nm@rpm
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Steering and Suspension
Steering Type Rack and pinion, power assist
Power Steering Yes
Front Suspension Independent with coil spring
Rear Suspension Parabolic Leaf spring
Dimensions:
Length 4056 mm
Height 1880 mm
Width 1660 mm
Wheel Base 2680 mm
Clearance 180 mm
Krebs weight Min: 1615kg Max: 1615 kg
Gross weight -
Drive Train
Type Manual
Gears 5
Drive Line RWD
Comfort Features
Air-Conditioning Yes
Except Air conditioning, no other comfort features are present in the Scorpio SLE.
Same as SLX no safety features are present in the Scorpio SLE.
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Scorpio DIZ
Feature and Specification
Make Mahindra
Model Scorpio
Variant DIZ
Body Type SUV
Number of Doors 5
Fuel Efficiency:
City Mileage 9.5 kmpl
Highway Mileage 13.2 kmpl
Fuel Capacity 60 liters
Fuel Type Diesel
Fuel Grade -
Engine Parameters:
Displacement 2523cc
Bore -
Stroke -
Cylinder Configuration 4 inline
Valve Gear Operation -
Compression Ratio -
No. of Valves 8
Aspiration -
Fuel System DI
Horse Power 63.12@3200 ps@rpm
Torque 137.5@2000-2500 Nm@rpm
Steering and Suspension
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Steering Type Rack and pinion, power assist
Power Steering Yes
Front Suspension Independent with coil spring & anti roll
bar
Rear Suspension Parabolic Leaf springs
Dimensions:
Length 4056 mm
Height 1880 mm
Width 1815 mm
Wheel Base 2680 mm
Clearance 200 mm
Boot -
Krebs weight Min: 1615kg Max: 1615 kg
Gross weight 5.4 kg
Drive Train
Type Manual
Gears 5
Drive Line RWD
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SCORPIO DI
Feature and Specification
Make Mahindra
Model Scorpio
Variant DI
Body Type SUV
Number of Doors 5
Fuel Efficiency:
City Mileage 10.7 kmpl
Highway Mileage 12.9 kmpl
Fuel Capacity 60 liters
Fuel Type Diesel
Engine Parameters:
Displacement 2523cc
Bore -
Stroke -
Cylinder Configuration 4 inline
No. of Valves 8
Aspiration Turbo Charged
Fuel System DI
Horse Power 63.08@3200 ps@rpm
Torque 180@1440 Nm@rpm
Steering and Suspension
28
Steering Type Rack and pinion, power assist
Power Steering No
Front Suspension Independent with coil spring
Rear Suspension Leaf springs
Dimensions:
Length 4260 mm
Height 1810 mm
Width 1815 mm
Wheel Base 2680 mm
Clearance 183 mm
Front Head Room Min: 60mm Max: 60mm
Rear Head Room Min: 60mm Max: 60mm
Rear Leg Room Min: 74mm Max: 94mm
Krebs weight Min: 1615kg Max: 1615 kg
Drive Train
Type Manual
Gears 5
Drive Line RWD
Comfort Features
Air-Conditioning Yes
Except Air conditioning, no other comfort features are present in the Bolero SLE.
Same as SLX no safety features are present in the Bolero SLE.
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Dehradun Premier motors (PVT) LTD.
Our Distinction:
This is one of the largest authorised dealers for Mahindra & Mahindra in Uttarakhand
Partners in Progress:
We are the preferred partners of M&M automotive, chiefly due to our successful sales record and
quality. Our facilities have remained unsurpassed, as we strive everyday to better our self.
Commanding Presence:
Premier motors as a centralised air-conditioned showroom of its kind in Uttarakhand, spread
gracefully and decorated elegantly over an impressive 2500 sq.ft at Dehradun, Being equipped
with affable front office staff and adept professional technicians, Provide a perfect of quality
Service and Reliability.
Space Friendly:
The interiors are aimed at making you feel completely at ease, In luxury. Because for us the
customer is king, one who deserves a regal offering. The setting is apt for times when you need to
switch into a relaxed state of mind.
Technologyto Stay Ahead:
We are equipped with the latest technological advancement in the industry, in order to give the
best of services when it matters. Not just to be part of, But to build the future, is our motto.
Ambience the Exude Relaxation:
Ours is one of the few service centres to be equipped with a fully-fledged customer-waiting lounge.
A part from a television and pool table, it had a wed kiosk to keep u connected all the time.
Service with Commitment:
Our dedicated team of mechanical specialty offers expert treatment for your vehicle. We ensure
consistency in performance each time, without fail.
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Attention to Details:
We provide genius spare parts and accessories to ensure exceptional performance. Every single
aspect related to your vehicle is taken care of at our premises.
Dealing Made Convenient:
It is a part of our commitment policy to give advantage to the customer at every juncture. We offer
assistance of every kind at our premises itself, which makes it a one stop facility.
Expert Guidance at Every Step:
Our sales team gives utmost priority to your satisfaction. When you need help to make the right
choice, it is ensured that the result is beyond your expectations. Thus making it a point that you
get the best in both luxury and comfort always.
Models:
Mahindra & Mahindra has been launching various type of MUVs and cars from the year of 1945,
keeping in mind the quality, design, driving, comfort, fuel efficiency, and service and resale value.
These from a formidable force that gives our customers the pride and the joy of value forever.
What drives M&M is
➢ Commitment
➢ Leadership
➢ Any an eye for appropriate technology.
Since 1945, when M&M first began manufacturing MUVs & LCVs, M&M have been engaged in
a single-minded endeavour to bring you cars that only state-of-the-art, but are also some f the most
environment-friendly vehicles in this world-a reflection of our commitment and care, for better
environment.
At the heart of every M&M is a unique engineering and an optimal mix of power and economy.
All this is supported by M&M nation – wide dealership network and automated workshop that
provide excellent after sale service
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The company has constantly exploring new opportunity to define the shape to tomorrow’s driving
technology.
Promotional Activities:
The promotional activities adopted by premier motors are
a. Test Driving
b. Free Driving
c. Hoarding
d. Discounts
e. Advertisement in Newspaper and magazines
f. Gift Schemes
g. Free Services
h. Mileage Contents
Promotional expenses have been borne by both Dehradun premier motors and M&M, shares in
advertisement cost.
Service Offered:
Six Service and paid service after sale of Cars.
Free checkups campaigns
Finance through bank
Demonstration for new products
Acceptance of warranty claims
Working Time in Dehradun premier motors :
Working hours in premier motors are 12 hours per day starting from 9:30 am to 9:30pm with one-
hour break for lunch and 15 minutes for evening tea and coffee.
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INTRODUCTION TO STRATEGY
M&M- MARKETING STRATEGY FOR SCORPIO.
Introduction:
Today most international car manufacturers have entered the Indian market. India is the second
largest two wheeler manufacturer in the world an also the second largest tractor manufacturer. It
is also the 5th largest commercial vehicle manufacturer and 3rd largest car market.
Mahindra & Mahindra Limited is a major automobile company in India. It was setup
in 1945 to make general purpose utility vehicles for Indian market. The company has started a
separate sector, Mahindra Systems and Automotive technologies (MSAT) in order to focus on
developing components as well as offering engineering services. Now, branched out into
manufacturing of agricultural tractors, and also light commercial vehicles. The company
constantly manufactures its range of vehicles, whilst researching and developing new products.
The more diversified parts of the business have been spun-off as separate business entities, and
activities organized under various business groups. These groups now cover a wide range of
markets: automotive, farm equipment, financial services, infrastructure and development, IT and
automotive components. M&M's automotive division is in the business of manufacturing and
marketing utility vehicles and LCVs. It has a market share in excess of 50% in this segment and
manufactures the Scorpio SUV range.
SituationAnalysis:
Utility vehicles are rapidly capturing the market due to its multifarious use. Utility
vehicles are found in two kinds: - SUV or Sports Utility Vehicles and MUV or Multi Utility
Vehicles. Its spacious interior and sturdy exterior have made this vehicle one of the fastest selling
vehicles of India. This is multi use vehicle to accommodate many passengers in one vehicle,
especially while going for a long trip with a big family or with a folk of friends. Sporty attributes
of this vehicle is not negligible when mentioning about its use. To name few SUV manufacturers
of India- Fiat India, Ford Motors, Force Motors, General Motors, Hyundai Motors, Hindustan
Motors, Mahindra & Mahindra, Porsche, Tata Motors, Toyota motors etc.
Though the SUV market is very small, Anand Mahindra, Vice- Chairman and
Managing Director, Mahindra & Mahindra says, "The very reason the SUV segment is small is
because there are very few offerings in the segment. The Scorpio is going to help grow the segment
33
in India." Mahindra saw that India’s pot-holed roads, difficult terrain and great distances — often
held up as the country’s disadvantages — were actually great strengths for an SUV maker.
Improvement in road networks and reduction of excise taxation encouraged sales of cars among
the young population. They choose to enter the market when there was very little product
development and when all the suppliers were hungry for business.
Customers: A study conducted to understand the UV customer by an advertising agency
‘Interface communication’ revealed the following criteria for customer buying process:-
 Customers preferred bid size as it stands for status.
 They seek latest technology
Competitors:
There has been an increasing demand for UVs with
18% growth .In 2004, Toyota was the major player
in the SUV segment, with sales of 31,898 units of its
Qualis Local players included Tata’s Sumo and
Safari and then the M&M’s bolero and Scorpio.GM
launched its Chevy Tavera, an SUV that competed
directly with Scorpio with sales of 2700 units in three
months.
Context:
In late 1990s Mahindra, a leader in 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 barrier as well. Though it had positives as rugged, tough, reliable,
economical vehicle. The negative parameters were that it was uncomfortable, rough, not easy, rural
imaginary, down market etc.
Hence they decided to launch a product with the following objectives:
 To create new segment and retain market domination.
 To differentiate offering my providing an excellent value proposition.
 To optimise project costs.
 Providing low cost transportation rate to rural and semi urban market.
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 To develop strong presence in urban market with VFM product.
 To compete with global players.
M&M products, such as the Scorpio and its smaller cousin Bolero, are now competing effectively
with foreign competition at home. The automotive division, which makes utility vehicles (UVs)
and SUVs, now contributes 61 per cent to M&M’s revenues. Of the 288,601 UV/SUVs sold in
India in the year up to March 2008, 148,761 or 51.6 per cent were M&M vehicles and 39,935 of
these were Scorpios.
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STP analysis:
M&M has established it self in many divisions such as the automotive sector, Farm equipment
sector ,IT sector etc.M&M has fashioned a three-pronged strategy for the automotive sector —
passenger cars, commercial vehicles and utility vehicles. The Mahindra Group’s Automotive
Sector is in the business of manufacturing and marketing utility vehicles and light commercial
vehicles, including three-wheelers. It is the market leader in utility vehicles in India since
inception, and currently accounts for about half of India’s market for utility vehicles. Although
created in 1994 following an organizational restructuring, the Automotive Sector can trace its
antecedents back to 1954. The iconic jeep that led American G.I.s to victory in World War II is
the very same vehicle that drove the Mahindra Group to success in the Automotive Sector.
Mahindra & Mahindra Limited, the flagship company of the Group, was set up as a franchise for
assembling general purpose utility vehicles from Willys, USA. Over the years, the Group has
developed a large product portfolio catering to a diverse customer base spanning rural and semi-
urban customers, defence requirements and luxurious urban utility vehicles. In 2002, it launched
the indigenously engineered world-class sports utility vehicle-Scorpio, which bridges the gap
between style and adventure, luxury and ruggedness, and performance and economy
Scorpio belonged to the SUV. M&M further believes that the target segment and
pricing for the Scorpio will ensure that it is not only competing with other utility vehicles in the
segment, but also with the mid-size car segment (priced in the Rs 5-7 lakh range), which includes
the likes of the Ford Ikon, the Opel Astra, and even cars such as the Fiat Palio (the upper-end
model). Although, M&M remains a leader in the domestic UV segment, it has been steadily losing
36
market share to the likes of Tata Engineering (with the Sumo and Safari) and Toyota (with Qualis)
over the past few years. Further, there is more competition coming up in the segment with the likes
of Suzuki (with Grand Vitara) and Hyundai (with its Terracan) among others set to enter the market
this year. However, M&M is confident that the Scorpio's value-for-money proposition will make
it score vis-à-vis the competition. While both the Terracan and Vitara are expected to be priced in
the Rs 13-18 lakh range, the Scorpio is priced even lowe than its current competition.Its target
customers were life style oriented customers. The value proposition stated ‘the vehicle that
provides luxury and comfort of a car and, adventure and thrill of a SUV.’ The launch also marks
a paradigm shift in the company's strategy in terms of design, spends, as well as focus. n fact, the
very development of the product has been a success in its own right. It took M&M Rs 600 crore,
six years, a small team of 120 people and 74 prototypes to finally launch the indigenously
developed Scorpio. The company has also sourced the best of available technology from across
the globe - ranging from the likes of Renault (for the petrol engine), Visteon, BEHR, Meritor and
so on. When Scorpio hit the streets, it arrived as an SUV with a `car plus' package. Two-and-a-
half years later, it has caused a paradigm shift in its category. Equipped with a savvy marketing
strategy, the brand has not only grown the SUV market, but almost touched base with the `C' class
cars segment (Rs 5 lakh and upwards.)
“We believed that we had a shot at being a niche global player in SUVs,’’ says Mahindra,
who recently bid against Tata Motors to buy Jaguar and Land Rover. Mahindra saw that India’s
pot-holed roads, difficult terrain and great distances — often held up as the country’s
disadvantages — were actually great strengths for an SUV maker. “If a vehicle could go in India,
it could go anywhere,” he says. “We made go-anywhere vehicles for the army. It was a readymade
global positioning.”
According to automobile manufacturers' data, the premium utility vehicle segment grew
at approximately 14 per cent up to June 2002. Unlike for its competitors in the UV category, people
who wished to purchase a C class car would also consider a Scorpio," says Hormazd Sorabjee,
Editor, Autocar India. Cut to market expansion of premium utility vehicles against `C' class cars.
Out of the total number of premium utility vehicles and `C' segment cars put together, premium
UVs accounted for about 21 per cent during the year 2000. The figure touched 49 per cent this
year. The Scorpio launch did play a significant role in driving the UV market up. This to me is the
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ultimate measure of success - the ability of a company to drive the growth of markets. Marketing
gurus suggest that the positioning of Scorpio was also very bold and innovative.
The easiest temptation for M&M would have been to position Scorpio as a `better-looking SUV'
or `a rugged, yet good-looking SUV' in sync with its tough vehicle pedigree. But this would have
made Scorpio a prisoner of the category, and it would have had to compete with other players in
the category. This also would have restricted the growth of the category by itself.
"The `car plus' approach is indeed very innovative and bold. Bold, because it goes against the
existing frames of reference of customers and hence the need to create new frames of reference,"
elaborates Koshy.
The new frame of reference also had a distinct brand strategy associated with it. It all started in
1997, when M&M set up Project Scorpio in quest for new markets. As much was written about
the project, the brand name Scorpio had built enough equity. Internal research showed that Scorpio
featured in the top two suggested names.
Since the name was reasonably accepted, the company plumped for `Scorpio from Mahindra'.
"Those were the years when there was instability in the automobile sector, especially after the
Daewoo fallout. `Scorpio from Mahindra' was the shadow endorsement strategy used to endorse
stability in these times," explains Rajesh Jejurikar, Executive Vice-President (Marketing & Sales),
Automotive Sector, M&M Ltd.Earlier, M&M did not have the right to use the name Scorpio as it
was originally a Ford brand name for a sedan. The company, however, got approval from the latter
to use the name, except in certain European markets. Says Jejurikar, "The product will cut across
all geographical segments. We are targeting it at both the urban as well as rural consumer. The
Scorpio will be positioned as a value product targeted at the young, demanding male."
Marketing implementation:
Product:
The design moment of the Scorpio was also the defining moment for M&M as a company and
brand. It changed the way M&M saw itself in the mirror — overnight. It was a classic case of a
product defining a strategy instead of the other way around. The Scorpio inspired M&M to
embrace new strategies that would transform the company from a mere tractor and soft-top vehicle
maker into a brand-conscious yuppie of the corporate world. Today, the gently greying Mahindra,
who once wanted to make films, not automobiles, has proved adept at steering his over Rs 10,000-
crore Company through this change. Between July 2003 and January 2004, the brand was
38
subjected to new product developments. Quieter engines were introduced after adopting the chain
drive engine system. The seats were improved, and the new two-toned look was developed.
Recently, Scorpio installed a Common Rail Diesel engine to meet the BS III auto emission norms
As the product development took off, a phased communication strategy was plotted for the brand.
During the first phase, the need to deal with issues such as lifestyle imagery was identified by the
Mumbai-based advertising agency Interface Communications. As a result, the television
commercials depicted the product and a pan-global imagery, even as the print advertisements
focused on functional benefits. So one got to see copies like `Car you walk into, and not crawl into'
across newspapers.
"In phase two, we did not change the television campaign, but our print creative were centered on
communicating new product developments," says Jejurikar. Mahindra claims that the new Scorpio
is built around customer's needs. 45 months of market research and a few customer outreach
programs later, they seem to be on the right track. The legroom complaints have been taken care
of with middle row seats that slide. They've also got new vents up front on the dash that I couldn't
really figure out and angular aircon vents at the rear, so the third row isn't left out. If you're not
satisfied with it, don't sweat, as you can also fit a split air conditioner like the one you find in other
big SUVs at any Mahindra dealership.
The third phase of communication was released in July 2004 when the automotive giant focused
on the `car plus' statement. What followed was a series of advertisements focusing on people and
lifestyle rather than the product.
Brand:
A recent brand equity study conducted by IMRB International ranked the Scorpio in the highest-
level of its construct, the `Olympic' category. An Olympic brand is one that is "well-known, well-
loved and has a large core following”. The results are based on a research conducted by IMRB
using Millward Brown's Brand dynamics model, an internationally recognized brand equity
measurement tool.Mr Vivek Nayer, Vice-President - Marketing, Automotive Sector, M&M, said,
"Scorpio is the only four-wheeler in its class in India to have achieved this, which speaks volumes
of the customers' faith in the brand.
Pricing:
It adopted a penetrative pricing strategy. Its competition with accent, ikon, Qualis, Tata sumo.
The second is the pricing strategy. M&M's aggressive pricing strategy appears to hinge on the
39
promise of viable volumes for the Scorpio in the initial period. Pricing for the Scorpio will ensure
that it is not only competing with other utility vehicles in the segment, but also with the mid-size
car segment (priced in the Rs 5-7 lakh range), which includes the likes of the Ford Ikon, the Opel
Astra, and even cars such as the Fiat Palio (the upper-end model).
The pricing strategy of Scorpio was definitely penetrative, especially when it lured the C segment
buyers, and caught the fancy of the B segment buyers. The ability of any company to play the price
game is a function of cost competitiveness, explains IIM's Koshy. In this specific case, lower price
needs to be looked at as `invitation' price for the basic version while there are others who buy these
kind of vehicles seeking a fully loaded version. The Mumbai ex-showroom prices vary from Rs
6.52 lakh to Rs 7.01 lakh.”M&M is not betting on playing the price game in this market. I think
that the company is certainly into the image game. Price therefore is more a tactical element and
not a strategic vehicle," elaborates Koshy. The pricing could be on higher range because at the
time of launch, people were willing and able to obtain loans, increasing acceptability of using
financing to purchase vehicles.
Promotion:
Prior to Scorpios launch, the team held a press-driven event in June 2002 to sell the positives of
the car to auto experts and journalists. The event created publicity for the functional elements of
the car and its attractive price point, leaving the television advertisements to sell the yuppie image.
"All Scorpio advertisements show the vehicle in urban settings driven many times by women
conveying the message of "ease of driving." Unlike competitors' advertising strategy, no imagery
of off-road settings and `wilderness' or `break-free' connotations were depicted," says IIM's
Koshy.Other international majors are battle scarred in other markets. All of them have capabilities
to compete with the best anywhere. But what Scorpio did was alert all of them that nothing but the
best will do in the Indian market too. "Is it not interesting that the tag line of Scorpio TV ads says
`nothing else will do'
For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote the
new avatar of Scorpio. Created by Interface Communications, the mass media campaign includes
a series of press advertisements and a television commercial. As for the rationale behind the
relaunch of Scorpio, says Mahindra & Mahindra Ltd executive vice-president (marketing & sales)
Rajesh Jejurikar: “After conducting an extensive market research (with AC Nielson), we upgraded
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our existing model with new features. However, the positioning of the brand will remain the same
so the ad line will continue to be the same—‘Nothing Else Will Do.’”
The company plans to focus on press ads to highlight the new features and improved fuel efficiency
of the upgraded version of Scorpio. “To support mass media advertising, we’ll be hosting road
shows and ground promos. Till now we have sold over 20,000 Scorpios since we launched this
brand. With this improved version, we will phase out the old brand,” he adds.
In addition, Mahindra & Mahindra has recently launched a nationwide talent search programme
titled ‘Scorpio Speedster With Timex’ in 10 cities across the country. Through this initiative, the
company plans to strengthen Scorpio’s brand positioning of being a youthful and sporty SUV, says
Mr. Jejurikar. Among other initiatives the company plans to increase the vehicle's appeal includes
the Top Gear Club (which will offer a whole range of value-added services for Scorpio consumers).
M&M has also started a toll-free `Scorpioline' to deal with customer queries regarding the vehicle.
Further, the company has launched dealer up gradation programs, in which the showrooms (which
will showcase the Scorpio) have been redesigned and given a trendy look. Says a company official,
"The M&M showrooms across India now share the Scorpio's brand personality - sporty and
technologically advanced. We plan to set new service paradigms through our dealer network."
Place:
The dealership roll-out will be conducted in three phases. In the primary phase, approximately 45
dealerships will be covered.” The Scorpio predecessor, Bolero, (which had earlier replaced the
Armada) will not be discontinued. However, it is with the Scorpio that M&M hopes to find a
foothold in the export markets.
The company will be rolling out the Scorpio in two phases outside India. Says Pawan Goenka,
Executive Vice-President, Product Development, "In the first phase, we will be looking to roll out
in markets such as Indonesia, Russia, South Africa. We are expecting approximately 15 per cent
of the sales for Scorpio to come from overseas."
According to company officials, M&M will be following a different strategy in each of these
countries based on local conditions. Says a company official, "There can even be the possibility
that the Mahindra brand name may not be used for marketing the vehicle in certain countries
depending on the market characteristics. The focus will be on selling the vehicle." Meanwhile, the
company feels the Scorpio will attract the price conscious consumer even in these highly
competitive markets. M&M has already inked a tie-up with the Sun Group in Russia, and is in
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talks for similar tie-ups in Indonesia and Malaysia. Says Jejurikar, "The UV market overseas is
huge. For instance, in Indonesia it forms 80 per cent of the entire market, while the Asia average
is about 40 per cent. In India, the figure currently stands at about 15 per cent." Distribution strategy
was to serve fewer markets but to serve them all. It had a phased launch, showroom exp and
infrastructure.
The Scorpio would continue to sell for many more years even though new vehicles bearing the
Mahindra brand may unseat it from its lofty perch. But none of them are likely to be an avatar that
would consume the company the way the Scorpio did. NEW DELHI, Enthused by the growing
popularity of its latest offering Scorpio in the metros, M&M is preparing to drive the sports utility
vehicle to the semi-urban towns.The firm has already chalked out marketing plans for these smaller
towns, where the Scorpio is slated to sting competition by October this year. It is also readying
plans to introduce more variants on the Scorpio, V-P (automotive sector) Rajesh Jejurikar said.
“We will look at feeding these markets with only the diesel version...We will start with Alwar and
Aligarh in the north, Hubli and Trichi in the south and Raipur in the west. Then, we will gradually
expand reach into these towns,” Jejurikar said.
“With the rains having started in some parts, we can move ahead with debuting the Scorpio in
these towns,” he added. The firm has targeted to introduce the Scorpio in around 45 towns by
December this year. However, there are no immediate plans to introduce a soft-top version of the
vehicle in these markets. Soft-top vehicles are in high demand in the semi-urban and rural towns,
where vehicles of the size of Scorpio are generally used for transport purposes. Other options
include a pick-up version for overseas.
Creating value,Extracting valueandSustaining value:
‘Value for money’ was their main criteria to serve the customers. But more than anything, the
company is banking on the Scorpio to bring about a change in image and perception about the
company. Often dubbed as a company which makes sturdy vehicles for the rural markets, the
Scorpio could give M&M a new lease of life. The launch also marks a paradigm shift in the
company's strategy in terms of design, spends, as well as focus. Scorpio has topped the charts of
both customers and non-customers. While the TNS Automotive Customer Satisfaction voted
Scorpio as the best SUV after Toyota Qualis, the Indicus Customer Study registered the perception
of the brand among people at large.
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Mahindra claims that the new Scorpio is built around customer's needs. 45 months of market
research and a few customer outreach programmes later, they seem to be on the right track. The
legroom complaints have been taken care of with middle row seats that slide. They've also got new
vents up front on the dash that I couldn't really figure out and angular aircon vents at the rear, so
the third row isn't left out. It’s with high-tech features, great looks, great mileage in its class, good
interiors.
According to Delhi-based Indicus Consumer Tracker, an independent brand-tracking firm, its
study conducted in January this year revealed that 3.8 per cent of the 3,690 sample size recalled
the Scorpio ad while 2.2 per cent recalled the brand, and 1.8 per cent switched to the brand. The
figures seem diminutive, but when extrapolated on to a larger universe of product categories, they
tell a different story.
In terms of total number of units sold in the passenger vehicles segment, SUV
holds a very small mind share, and yet Mahindra Scorpio is the only SUV brand that garners both
brand and ad recall across the sample size. "Scorpio is among the only three main car sub-brands
whose ad and brand recalls are higher than the master brands The track monitors `high value'
43
consumers, and registers those who are in the SEC A and B categories, while 67 per cent of the
sample size is from the top eight metros; the rest from the next 50-60 towns across India.
Sales too have been zooming, says the company. According to brand-wise data, the
company claims to be matching sales of most C segment cars, even outselling some of them. In
the last six months, M&M sold 14,389 Scorpios, against a total C segment sales of 79,346,
according to company data.M&M is also attempting innovative strategies on the digital turf, and
is currently eyeing gaming as a means to promote the brand. So, the client-agency team is toying
with the idea of game called `turbanator' for the mobile gaming fraternity.
Scorpio achieved its targets on market share and achieved volumes of 12000 vehicles sale in the
first 9 months of its launch. Scorpio advertising had a very high recall for the Mahindra brand as
well as product.Advertizing also positioned Scorpio as a powerful vehicle with a sporty look.74
vehicles were built only for testing. They used simultaneous testing and examining process. The
product was put through NOVA-C(New overall vehicle audit-customer) system to measure the
overall quality of the production process. A world class manufacturing setup was spread over 120
acres with a capacity of 40,000 units annual on a shift basis. It was more flexible in terms of
partners. The company looked east instead of west for cheaper components and allowed customers
to choose their own collaborators.
To reduce costs, Goenka contracted manufacturing to companies that had technology but had never
been given the chance to prove it. For instance, South Korean suspension maker Samlip had never
designed the full suspension system for a vehicle but M&M entrusted it with that task. Another
South Korean company, Wooshin Systems, that had also never done a full body shop design, did
44
the body jigs and fixtures. But such moves stood M&M in good stead. Its once-small suppliers
have become global players and M&M has found itself possessing a world-class supply chain.
The impact on Mahindra image:
o Well respected manufacturers
o Technologically advanced
o Suitable for city driving
o Makes VALUE FOR MONEY vehicles.
o Proud to own.
The revenue of company increased about 37% in a year and the PBIT about 47%.Their share prices
also increased .The overall positive opinion about Mahindra increased by 18% among SUV owners
and 11% among all car owners.
Sustainability:
 Mahindra have been practicing Alternative thinking across various disciplines.
 Customer relationship management
 Introduction of green technology.
 Brand enhancement.
 Meeting global challenges of climate change
45
 Nurturing human resources in addition to profit.
 Becoming dependable neighbors.
Raiding America:
Mahindra is now obsessed with taking both his rugged off-roaders to global markets.
This ambitious plan includes entering the most competitive auto market in the world, the US.
Starting next year, M&M will ride into the US market on the back of a multi-million-dollar
marketing plan and aim to entice 10,000 Americans into overlooking competition from the likes
of Honda’s CRV and pay about $25,000 apiece for its Scorpios. It will mark the first time an
‘Indian’ vehicle will lock horns with the heavyweights of the auto industry in the world’s toughest
arena.
SUVs have advantages in safety, cargo space and power that Americans demand. The chief virtue
of the automobile is the personal independence it gives the owner--a car can go anywhere roads
go and some places they don't, with a speed unimaginable in the pre-automobile era. Its secondary
virtue is protection--from the elements and from collision. In both a car and an SUV, passengers
are protected by the vehicle's structure from the wind and rain. But in a collision, the SUV simply
provides more protection than a smaller car does. Larger cars better protect the people in them--
that's why your father wanted you to get a huge, boxy old car when you were sixteen instead of a
little Mustang--so that you would live through your first accident. Protection is a big advantage.
Americans are not very easy customers. When Nissan wanted to enter the US market in 1958, it
set itself the target of selling just 500-1,000 vehicles in the first year. It sold 83. At least one
Chrysler vehicle and a Ford model have failed because they did not have enough cup holders!
Goenka says the company has set itself a target of selling 10,000 vehicles in the US in 2009 —
and they will all have “holders in the front and back that can hold large cups”, laughs Arun Jaura,
who has just been elevated as the chief technology officer of the group. Jaura, who built the Ford
Escape hybrid in Detroit, is busy rolling out hybrid vehicles for M&M now. Mahindra has not
decided on the exact launch date for its SUVs in the US, but it is rumoured that the vehicles will
debut by January next.
America is the largest automobile market in the world with annual sales of 13 million units. It is
expected that the Mahindras’ US foray would have be significant due to the growing importance
of small and fuel-efficient cars among American car buyers.
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Mahindra’s top selling SUV in India is the Mahindra Scorpio. This SUV is available in several
versions, including single and dual cab pickup versions. The engines available on the Scorpio in
India are not the smoothest running or the most powerful. But it is unlikely Mahindra would tackle
the US markets with the same engines and transmissions which are adequate for India.
Automotive News’ Chappell believes US consumers would be hesitant about buying an unknown
vehicle made in India. “It took Americans 25 years to accept that the Japanese really knew how to
build cars,’’ he says. “Even Hyundai is still trying to convince shoppers that its cars are reliable
and well built.” But M&M is not a completely unknown brand in the US because the company
sells tractors there. It has sold about 10,000 tractors in the US and sales are growing at about 25
per cent annually. But in reality, “the Mahindra identity is as familiar to American car buyers as
aloo palak is to a cowboy”, Chappell says.
Mahindra’s days studying filmmaking at Harvard gave him an understanding of the American
psyche. To connect with American buyers, M&M is likely to badge its American pickups with a
true-blue American name that invokes the ‘great outdoors’ — Mahindra Appalachian.
Cracking America will be tougher than selling vehicles in Africa, Mahindra admits. So he’s roped
in a partner who knows how to fight tough battles. John Perez, the auto maverick who owns Global
Vehicles and has brought a variety of autos from around the world to the US, will be the importer
for Scorpios in the US. Perez has already declared that he hopes to sell about 45,000 Scorpios in
2009, which would give M&M revenues of $1 billion in the US alone. To achieve this, Perez says,
he will sign on 300 Scorpio dealers. That makes the math of his challenge appear easy — each of
the 300 dealers will only need to sell three vehicles per week to give Perez and Mahindra sales of
45,000 Scorpios.
If true, M&M would become the first Indian auto company to launch passenger vehicles in the US
under its won brand. The company already assembles and markets tractors in the US under its own
label.M&M has appointed Global Vehicles USA as its distributor in US, according to the report.
The distributor is currently scouting for dealers across key states. Global Vehicles is also the
distributor of Mahindra tractors.
The fact that M&M is planning a US entry indicates that the next upgrade for the Scorpio would
have substantial improvements in terms of engine and transmission, safety features and handling.
M&M is reportedly working on an upgraded engine for the Scorpio, which would be launched
some time next year.
47
M&M is understood to be working on a major design makeover for the Scorpio. The model has
not seen a major upgrade, except for the recent cosmetic uplift, since launch many years
back.M&M is also talking to a couple of assemblers in Ohio and other states to assemble knocked-
down kits of their vehicles. Though this would raise costs, the company would net two benefits. It
would sidestep the 25 per cent ‘chicken tax’ levied on imports. More importantly, local assembly
would help overcome the average American’s resistance to foreign brands, lesson German and
Japanese automakers have learned.
Also United States has the stringent emission norms in the world, infact all the major
manufacturers of diesel passenger vehicles except Mercedes-Benz have withdrawn from the
United States market because of difficulties in meeting stricter standards for the 2007 model year.
Mahindra & Mahindra hopes by producing fuel efficient, T2B5 emission compliable vehicles with
a low price point it can attract buyers for its Scorpio and other pick-ups.
Another interesting take Mahindra would have for the US market is that its SUVs are fuel efficient.
For one, the Scorpios they would export would be diesel, and they are not as big, or as powerful
as any of the run of the mill SUVs in the US. So, the strategy would be to sell them as fuel efficient
vehicles. With the new 2.2L engine and 6-speed automatic transmission Mahindra will claim
39mpg(miles-per-gallon) as its fuel efficiency for the Scorpio.
M&M will also spend $50 million (Rs 200 crore) to upgrade the Scorpio for the US market as the
Indian version will not meet safety norms or customer needs. For one, the company is working on
Project W408, which is fitting the Scorpio with a reconfigured version of the powerful mHawk
engine, a second-generation 2.2-litre common-rail system M&M developed entirely in India. This
is important as Mahindra expects the Scorpio’s fuel-efficient and low-emission engine to win over
customers who feel guilty about driving gas-guzzling automobiles, yet want the size and
performance of an SUV. “Fuel efficiency is more of an issue than it’s been in the past,’’ says
Rebecca Lindland, research director of automotive group at Global Insight, an independent
research firm. “But it’s not the only issue, nor is price. Consumers still monitor safety ratings,
reliability, comfort and convenience even more than gas mileage.”
They would offer US consumers multiple Scorpio variants — a single-cab pick-up, a double-cab
pick-up and the full-size SUV. Each will “have new seats, a new four-channel ABS, dual-stage
airbags, lots of electronics and everything will be T2B5 compliant”, he says. T2B5 or Tier 2 Bin
5, is the American emissions standard that automobiles have to follow. Perez has said all vehicles
48
would come with a four-year, 60,000-km warranty. On paper, all this would give M&M a credible
position in the mid-size SUV market where the company wants to position itself as a value-for-
money alternative. But it will take a lot more to actually get US consumers to want to have a
vehicle wearing the M&M badge parked in their driveways, next to their neighbours’ Toyotas and
Fords.
Apart from the automatic transmission, the American Scorpio will have the fully loaded and will
be all the necessary features of international standard High- end features includes a four-channel
anti-lock brake systems (ABS), occupants safety system, new lumber seats and air bags, four-
wheel drive with electronic shift and a electronic vehicle stability system to be introduced in the
Scorpio’s US variant. Mahindra is also developing a new communication and navigation system
for the SUV, to be fully customized for the US. These equipments will make Scorpio to meet
stringent safety norms and satisfy the more demanding American customer.Besides these emission
standards, the vehicle has to comply with the Federal Motor Vehicle Safety Standards (FMVSS).
According to the National Highway Traffic Safety Administration Web site ( www.nhtsa.dot.gov),
these would include 29 standards on ‘Crash Avoidance’ like standards for rear view mirror, control
and displays, theft protection, etc; ‘Crash Worthiness’ standards (16) for occupant crash protection,
seat belt assemblies, roof crush resistance etc; ‘Post Crash’ standards like fuel system integrity,
flammability of interior materials, etc.
There are other regulations that govern FMVSS like manufacturer identification, vehicle
identification number, etc.The FMVSS standard is a self-certification process and therefore the
onus is on the original equipment manufacturer to comply with them, said Dr Jaura.These
standards just make the car viable to sell in the market, but in order to meet market demands and
make it a lucrative proposition in the world’s most competitive market, the company has identified
diesel-run vehicles (backed with 4-year, 60,000 mile warranty) as their forte in the gasoline driven
SUV and light truck market.
However, the company has to undergo various modifications to its present generation of Scorpio
models. Curiously, the largest financial risk M&M could face in the US is litigation and recalls.
American safety laws are demanding and even small faults can result in high-cost product recalls.
P.N. Shah says the company is aware of the complexities of the market and is prepared for it.
M&M’s SUVs would face stiff competition from Toyota’s RAV4 and Honda’s CR-V.
Competition, but this would be especially aggressive in this recession year, when cars sales are
49
expected to fall 6 per cent, according to US analysts.As in Africa, it is M&M’s US dealers who
will hold the key to the company’s success. “If dealers feel they are being rewarded by selling a
car, they will overcome great obstacles to continue selling it.”Mahindra wants his vehicles to
compete with the best because he believes it would help the company improve its abilities and
class. Having to cater to the most demanding customers automatically raises the bar. It would force
M&M to become truly global, a process that began when the engine of the first Scorpio turned
over.In many ways, the US entry will also be the champion vehicle’s last lap. Though M&M is
counting on its trailblazing Scorpio to lead the way into the US, it is also preparing for life after
the ageing winner. The company is spending Rs 500 crore-600 crore to develop a monocoque SUV
for the US market. Codenamed W201, the vehicle will be powered by the mHawk engine, albeit
in a completely redesigned and reconfigured form. It will hit the US market in the next couple of
years.
Marketing and target audience:
Mahindra is targeting a niche market, price conscious (prices at the pump too) and “green”
customers. Also, people who have bought Mahindra tractors and Indians in the U.S. According to
Business week Mahindra and Mahindra will follow a unconventional marketing campaign for the
U.S. market. “It will spend only about $20 million on marketing in 2009, less than 10% of what
Toyota spent to launch the Tundra pickup. Almost none of this money is expected to be devoted
to television or glossy print ads. Instead, it will purchase carefully selected search terms and banner
ads on Web sites popular with its target consumers. These links will steer potential buyers to
detailed information about Mahindra’s trucks.”
Unlike Chinese manufacturers which settled impossible targets but even failed to make an off the
mark. Mahindra has set modest goals for its first few years. “Half of the global sales in S.U.V.’s
and pickups is in the United States and we want to capture at least a fraction of that to start with,”
said Pawan Goenka, president of the automotive division of Mahindra & Mahindra. Mahindra is
planning to sell just 18,000 of scorpios in the 2nd six months of 2009, followed by 45,000 in 2010.
While many Indian companies make the mistake of falling in love with their products while shying
away from investing in ‘soft’ elements such as advertising, Mahindra will spend as much — Rs
200 crore ($50 million) — on promoting his US vehicle as he will spend on developing it. Global
50
Vehicles has hired the iconoclastic advertising firm Strawberry Frog to position its vehicles. “Our
objective is to launch a car in the US in a way that has never been done before,’’ Scott Goodson,
founder and chief executive of Strawberry Frog told the media on the sidelines of Goafest, an
international advertising conference. “We are going to launch it in a way that people are going to
say ‘Holy wow! That is cool!’
Price and the strategy:
Mahindra will ship its SUV as a CBU from India, but the pickup trucks will be assembled there.
They will be assembled at one of three plant sites Global is scouting in the Southeast. Though it
will be CBU Mahindra will price the Scorpio SUV and the pick-ups aggressively. Mahindra’s 2-
door single-cab pickup truck will be offered in the low $20,000 range and its 4-door truck and 5-
door SUV, which seats seven, will be in the mid-$20,000 range. A high-end version of the 4-door
truck will be in the high $20,000 range. It also uses a penetrating pricing scheme in order to
discourage competition and attract many customers.These prices are very competitive when other
fully loaded SUV prices are hovering in the range of $40,000 - $50000. All the vehicles will have
bumper to bumper warranty for 60000miles / 4years. Similar to hard core Indian bike enthusiast
who are very much associated with Royal Enfield, Americans are extremely loyal to their SUV
makers. When Toyota and Honda entered the American market they faced stiff opposition. They
employed lot of Americans and invested a lot in America. Intact, they projected them as American
producers and circumvent the natural opposition to foreign makers from the American patriotism.
Mahindra & Mahindra has to follow its forerunners if it wishes to be serious player in the American
market.
Also, many of the yardsticks are different unlike Indian customers who are price conscious,
American customers cannot be lured only by the low price point. They look for the quality, quality
problems will keep the customer off the product and poor quality even can destroy the brand.
Earlier Hyundai and nowadays even the mighty Toyota is facing lot of problems in the quality
front. Also, unlike other international manufacturers Mahindra do not have multiple products for
United States (at least as of now) it has to solely depend on its Scorpio. Hence Mahindra has to
work hard to keep the number of defects to a minimum before it launches the first Indian product
in America. Mahindra wants to be the next Land Rover.
51
Finally, Mahindra has effectively planned for its US entry concentrating on all the elements needed
for its global launch.It has done a lot of market research on its entry in US and also upgraded the
Scorpio as needed by the American customers it will definitely prove to be successful in the US
market.
52
OBJECTIVES OF THE STUDY
The study has been under taken to analyze the marketing strategy towards all variant of Mahindra
SCORPIO in Dehradun with a special reference to the M&M motors, the other objectives are:
➢ To gather information about Marketing Strategy toward Scorpio in the geographic region
of Dehradun
➢ To know the customer perception about features, low maintenance cost and looks of
Scorpio.
➢ To know the customer satisfaction about the safety and comfort provided by Scorpio.
➢ To provide suggestions, in improving the marketing strategies and the company sales and
profitability .
➢ To know the marketing strategy towards the after sales service offers by M&M.
53
RESEARCH METHODOLOGY
ResearchMethodology
A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendations and ultimate actions. The research process provides a
systematic, planned approach to the research project and ensures that all aspects of the research
project are consistent with each other.
Research studies evolve through a series of steps, each representing the answer to a key question.
INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of evaluation
and revaluation of primary and secondary research. The techniques and concepts used during
primary research in order to arrive at findings; which are also dealt with and lead to a logical
deduction towards the analysis and results.
RESEARCH DESIGN
I propose to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which certain
issues shall be selected, which I feel remain unanswered or liable to change, this shall be further
taken up in the next stage of exploratory research. This stage shall help me to restrict and select
only the important question and issue, which inhabit growth and segmentation in the industry.
The various tasks that I have undertaken in the research design process are :
❑ Defining the information need
❑ Design the exploratory, descriptive and causal research.
RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysis
54
It has a logical and hierarchical ordering:
✓ Determination of information research problem.
✓ Development of appropriate research design.
✓ Execution of research design.
✓ Communication of results.
Each step is viewed as a separate process that includes a combination of task , step and specific
procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and
ongoing.
EXPLORATORY RESEARCH
The method I used for exploratory research was
❑ Primary Data
❑ Secondary data
PRIMARY DATA
New data gathered to help solve the problem at hand. As compared to secondary data which is
previously gathered data. An example is information gathered by a questionnaire. Qualitative or
quantitative data that are newly collected in the course of research, Consists of original information
that comes from people and includes information gathered from surveys, focus groups,
independent observations and test results. Data gathered by the researcher in the act of conducting
research. This is contrasted to secondary data, which entails the use of data gathered by someone
other than the researcher information that is obtained directly from first-hand sources by means of
surveys, observation or experimentation.
Primary data is basically collected by getting questionnaire filled by the respondents.
SECONDARY DATA
Information that already exists somewhere, having been collected for another purpose. Sources
include census reports, trade publications, and subscription services. There are two types of
55
secondary data: internal and external secondary data. Information compiled inside or outside the
organization for some purpose other than the current investigation Researching information, which
has already been published? Market information compiled for purposes other than the current
research effort; it can be internal data, such as existing sales-tracking information, or it can be
research conducted by someone else, such as a market research company or the U.S. government.
Secondary source of data used consists of books and websites
My proposal is to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which certain
issues shall be selected, which I feel remain unanswered or liable to change, this shall be further
taken up in the next stage of exploratory research.
DESCRIPTIVE RESEARCH
STEPS in the descriptive research:
Statement of the problem
➢ Identification of information needed to solve the problem
➢ Selection or development of instruments for gathering the information
➢ Identification of target population and determination of sampling Plan.
➢ Design of procedure for information collection
➢ Collection of information
➢ Analysis of information
➢ Generalizations and/or predictions
DATA COLLECTION
Data collection took place with the help of filling of questionnaires. The questionnaire method has
come to the more widely used and economical means of data collection. The common factor in all
varieties of the questionnaire method is this reliance on verbal responses to questions, written or
oral. I found it essential to make sure the questionnaire was easy to read and understand to all
spectrums of people in the sample. It was also important as researcher to respect the samples time
56
and energy hence the questionnaire was designed in such a way, that its administration would not
exceed 4-5 mins. These questionnaires were personally administered.
The first hand information was collected by making the people fill the questionnaires. The primary
data collected by directly interacting with the people. The respondents were contacted at shopping
malls, markets, places that were near to showrooms of the consumer durable products etc. The
data was collected by interacting with 200 respondents who filled the questionnaires and gave me
the required necessary information. The respondents consisted of housewives, students,
businessmen, professionals etc. the required information was collected by directly interacting with
these respondents.
DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE
TARGET POPULATION
It is a description of the characteristics of that group of people from whom a course is intended.
It attempts to describe them as they are rather than as the describer would like them to be. Also
called the audience the audience to be served by our project includes key demographic information
(i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will be
either all or a subset of potential users, such as adolescents, women, rural residents, or the residents
of a particular geographic area. Topic areas: Governance, Accountability and Evaluation,
Operations Management and Leadership. A population to be reached through some action or
intervention; may refer to groups with specific demographic or geographic characteristics. The
group of people you are trying to reach with a particular strategy or activity. The target population
is the population I want to make conclude an ideal situation; the sampling frames to matches the
target population. A specific resource set that is the object or target of investigation. The audience
defined in age, background, ability, and preferences, among other things, for which a given course
of instruction is intended.
I have selected the sample trough Simple random Sampling
SAMPLE SIZE:
This involves figuring out how many samples one need.
57
The numbers of samples you need are affected by the following factors:
 Project goals
 How you plan to analyze your data
 How variable your data are or are likely to be
 How precisely you want to measure change or trend
 The number of years over which you want to detect a trend
 How many times a year you will sample each point
 How much money and manpower you have
SAMPLE SIZE
I have targeted 150people in the age group above 21 years for the purpose of the research. The
target population influences the sample size. The target population represents the Dehradun
regions. . The people were from different professional backgrounds.
The details of our sample are explained in chapter named primary research where the divisions are
explained in demographics section.
ERRORS IN THE STUDY
Interviewer error
There is interviewer bias in the questionnaire method. Open-ended questions can be biased by the
interviewer’s views or probing, as interviewers are guiding the respondent while the questionnaire
is being filled out. The attitudes the interviewer revels to the respondent during the interview can
greatly affect their level of interest and willingness to answer openly. As interviewers, probing and
clarifications maximize respondent understanding and yield complete answers, these advantages
are offset by the problems of prestige seeking, social desirability and courtesy biases.
58
Questionnaire error
The questionnaire designing has to careful so that only required data is concisely reveled and there
is no redundant data generated. The questions have to be worded carefully so that the questions
are not loaded and does not lead to a bias in the respondents mind
Respondent error
The respondents selected to be interviewed were not always available and willing to co operate
also in most cases the respondents were found to not have the knowledge, opinion, attitudes or
facts required additionally uninformed response errors and response styles also led to survey error.
Sampling error
We have taken the sample size of 150, which cannot determine the buying behavior of the total
population. The sample has been drawn from only National Capital Region.
Research Design
Research design is a conceptual structure within which research was conducted. A research design
is the detailed blueprint used to guide a research study towards its objective. It is a series of
advanced decision taken together comprising a master plan or a model for conducting the research
in consonance with the research objectives. Research design is needed because it facilitates the
smooth sailing of the various research operations, thereby making research as efficient as possible
yielding maximum information with the minimum effort, time and money.
Scope and the Limitation of the study
➢ The scope of study is limited to the respondents are selected from in and around Dehradun,
U.k
59
.
➢ The project is carried out for the period of 45 days only.
➢ Measurement of Marketing strategies is complex subjects, which uses non-objectives
method, which is not reliable.
➢ The sample unit was also 150 respondents.
➢ However, Mahindra and Mahindra Automobile showrooms are located in other places i.e.
locally and even in the neighboring states. Only opinion of respondents of Dehradun city
was consider for finding out the opinions of respondents.
60
DATA ANALYSIS &
INTERPRETATION
61
DATA ANALYSIS & INTERPRETATION
Satisfied Dissatisfied
78% 22%
Table No. 1 Marketing Strategy towards Mahindra Scorpio
Source: Questionnaire
Figure:1
Interpretation 1:
The sample drawn on probability basis shows that 78% of the customers were satisfied with
Scorpio variant and only 22% were not satisfied with Scorpio variant.
Observation:
Most of the respondents approached were satisfied with Scorpio
Table No: 2 Factors affecting marketing strategy towards Scorpio
78
22
satisfied
dissatisfied
62
Factor No. of Respondent Percentage
Features 18 12%
Low Maintenance 51 34%
Comfort 27 18%
Style 24 16%
After Sales Service 30 20%
Source: Questionnaire
Figure:2
Interpretation 2: The sample drawn on the probability basis clearly shows that 34%
(51respondents) are the opinion that low maintenance is the satisfaction factor Scorpio and 20 %(
30 respondents) of them who view After Sales Service as a vital factor for customer satisfaction.
Followed by Comfort which corresponds to 18 %( 27 respondents), Style with 16%(respondents)
and only 12%(18 respondents) of them view that feature of Bolero as satisfaction factor.
Observation:
Majority of the respondent are of the idea that low maintenance of the top most feature
contributing to customer satisfaction followed by after sales services comfort style and features
12
34
18
16
20
Features
low maintenance
comfort
style
after sales service
63
As such, Mahindra should focus on the aspects, which will enhance the customer satisfaction and
thus the market share
Table No: 3 Customer opinions towards fuel consumption.
Factor Percentage
Extremely Satisfied 27%
Satisfied 49%
Neutral 17%
Dissatisfied 7%
Total 100%
Source: Questionnaire
Figure: 3
Interpretation 3: 100% of the respondents 49% of the respondents approached were satisfied
with the fuel consumption of the Scorpio. Followed by 27% was extremely satisfied, 17% are
neutral and rest of the 7% is more dissatisfied with fuel consumption of Scorpio.
Observation: As majority of the respondents are satisfied with the fuel consumption of Mahindra
Scorpio, the company should maintain the same standard and it is suggested to come up with
27%
49%
17%
7%
Consumer Opinions toward Fuel
Consumption
More Satisfied
Satisfied
Not Satisfied & Dissatisfied
Dissatisfied
64
suitable measure to reduce the negative opinion among the consumer who are of the opinion that
the fuel consumption is a dissatisfying factor.
Table No: 4 Customer opinions toward Safety and Comfort.
Factor Percentage
Extremely Satisfied 23%
Satisfied 47%
Neither Satisfied & Dissatisfied 20%
Dissatisfied 10%
Total 100%
Source: Questionnaire
Figure: 4
Interpretation 4: 100% of the respondents 47% of the respondents approached were satisfied
with the safety and comfort feature of the Scorpio. Followed by 27% was extremely satisfied, 17%
are neutral and rest of the 7% was dissatisfied with safety and comfort feature of Scorpio.
Observation: As majority of the respondents are satisfied with the safety and comfort feature of
Mahindra Scorpio, the company should maintain the same standard and it is suggested to come up
23%
47%
20%
10%
Customer Opinions toward
Safety and Comfort
Extremely Satisfied
Satisfied
Neutral
Dissatisfied
65
with suitable measure to reduce the negative opinion among the consumer who are of the opinion
that the fuel consumption is a dissatisfying factor.
Table No: 5 Customer opinions toward Design.
Factor Percentage
Extremely Satisfied 20%
Satisfied 40%
Neutral 27%
Dissatisfied 13%
Total 100%
Source: Questionnaire
Figure: 5
Interpretation 5: 100% of respondents 40% of the respondents approached were satisfied with
the Design of the Scorpio. 20% were more satisfied, 27% of them neutral and 13% are dissatisfied
with the design of the Scorpio.
Observation: As majority of the respondents are satisfied with the design of Mahindra Scorpio,
the company should maintain the same standard and it is suggested to come up with suitable
measure to reduce the negative opinion among the consumer who are of the opinion that the fuel
consumption is a dissatisfying factor.
20%
40%
27%
13%
Customer Opinions Toward
Design
Extremely Satisfied
Satisfied
Neutral
Dissatisfied
66
Table No: 6 Customer opinions toward space availability in Mahindra Bolero.
Factor Percentage
More Satisfied 27%
Satisfied 53%
Neither Satisfied & Dissatisfied 17%
Dissatisfied 3%
Total 100%
Source: Questionnaire
Figure: 6
Interpretation 6: The sample drawn on the probability basis shows that out of 100% of
respondents 53% of the respondents approached were satisfied with the space availability of the
Scorpio. 27% were more satisfied, 17% of neither satisfied and dissatisfied and 3% are dissatisfied
with the space availability of the Scorpio.
Observation: As 80% of the respondents are happy with the space availability of the Mahindra
Bolero vehicle, it can be conducted that the company has undertaken proper R&D in this aspect.
27%
53%
17%
3%
Customer Opinions Toward
Space Availability
Extremely Satisfied
Satisfied
Neutral
Dissatisfied
67
The 20% of the respondents who have answered negatively may be comparing with the vehicle in
the same category launched very recently.
Table No: 7 Marketing Strategy toward Maintenance of Mahindra Bolero.
Factor Percentage
Extremely Satisfied 23%
Satisfied 51%
Neutral 21%
Dissatisfied 5%
Total 100%
Source: Questionnaire
Figure:7
Interpretation 7: The sample drawn on the probability basis shows that out of 100% of
respondents 51% of the respondents approached were satisfied with the maintenance of the
Scorpio. 23% were extremely satisfied, 21% of neutral and 5% are dissatisfied with the
maintenance.
23%
51%
21%
5%
Marketing Opinions Toward
Maintenance
Extremely Satisfied
Satisfied
Neutral
Dissatisfied
68
Observation: Though majority of the customer are satisfied that the maintenance cost of Mahindra
Scorpio is less, around 20% are not satisfied which may be because of comparison of Scorpio with
the newly launched competing brands coming with even lower maintenance cost.
Table No: 8 Customer awareness about power steering.
Option No. Of Respondent No. Of Respondents (%)
Aware 120 80%
Unaware 30 20%
Total 150 100%
Source: Questionnaire
Figure: 8
Interpretation 8: Out of 100% of respondents, 80% of the respondents approached were aware
of the power steering present in some variant of Scorpio and 20% were not aware of the power
steering present in some variant of Scorpio.
80%
20%
Customer Awareness
About Power Steering
Aware
Unaware
69
Observation: Most of the respondents approached were aware of power steering system
introduced in some variants of Scorpio.
Table No: 9 Customer perceptions about Scorpio
Very Good Good Average Bad Very Bad
20% 47% 21% 12% -
Source: Questionnaire
Figure: 9
Interpretation 9: The sample drawn on the probability basis shows that out of 100% of
respondents 47% of the respondents gave Good response to Scorpio. 20% gave Very Good
response, 21% gave Average response and 12% gave bad response to Scorpio.
Observation: As 67% of the respondents are satisfied that they are happy with Scorpio, it satisfies
that the customer satisfaction levels are very high. If the company were to identify the pitfalls in
their product and undertake remedial measure, thus it will lead to more good word of mouth
publicity.
20%
47%
21%
12%
Customer Perception
About Scorpio
Very Good
Good
Average
Bad
70
FINDING
71
FINDINGS
Based on the data gathered by administrating schedules to customers the following observations
are made.
1. Mahindra Scorpio has excellent percentage of customer satisfaction according to the
data shown in table 1 of the data analysis and Interpretation topic.
2. Most of the people are satisfied with its low maintenance cost and after sales service
provided by Mahindra Scopio.
3. Based on the fuel consumption, most of the people are satisfied with it.
4. Based on Safety and Comfort, Design, Space, Maintenance most of the people are
satisfied with it.
5. Large numbers of Scorpio user are aware of its power steering.
6. If we took the satisfaction level of people toward Scorpio, it becomes good.
7. Its features and style satisfy most of the people.
72
RECOMMENDATION
73
Recommendation
Mahindra Company has to implement good customer relationship management
strategy that enhances Marketing Strategies level.
The companycan for the undertake R&Dto improve the existing feature which field
help increase in the Marketing Strategies.
The company should promote about the entire feature offered by it.
As majority ofthe customer give opinion that they are satisfied is the factor, services
and design ofthe product ofthecompany should taken not only maintain the existing
standard but also enhance them.
74
CONCLUSION
75
CONCLUSIONS
Mahindra Scorpio has a very good market share in the state of U.k. for the
SUV segment.
The company is offering good services, which is reflected on the satisfaction
of the customer.
Majority of the customer are satisfied with the design of the vehicle.
76
BIBLIOGRAPHY
77
Bibliography
➢ Philip Kotler 12th
edition Marketing Management
➢ www.mahindrascorpio.co.in
➢ www.automobile.com
➢ Data from Mahindra and Mahindra Dehradun premier motors
dealer from Dehradun city.
78
ANNEXURES
79
QUESTIONNAIRE
1) Customer profile
1. Name
2. Occupationc
3. Age
4. Income
5. Address:-
1) Are you a satisfied with Mahindra Scorpio?
a. Yes
b. No
2) If “Yes” Which factor you consider is satisfies you most?
a. Feature
b. Low Maintenance
c. Looks
d. After Sales Service
3) Are you satisfy with the fuel consumption of Scorpio?
a. Extremely Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
4) Are you satisfied with the Safety and Comfort of ?
a. Extremely Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
5) Are you satisfied with the Design?
a. Extremely Satisfied
b. Satisfied
80
c. Neutral
d. Dissatisfied
6) Are you satisfied with space available in Scorpio?
a. Extremely Satisfied
b. Satisfied
c. Nor Satisfied & Dissatisfied
d. Dissatisfied
7) Are you satisfied with Maintenance cost?
a. Extremely Satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
8) Are you aware about power steering present in Scorpio?
a. Yes
b. No
9) Your general perception about Scorpio.
a. Very Good
b. Good
c. Average
d. Bad
10) Do you want to give any suggestion about any change in the Scorpio?

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MBA marketing (summer internship report)

  • 1. 1 A SUMMER INTERNSHIP REPORT ON MARKETING STRATEGIES WITH SPECIAL REFERENCE TO MAHINDRA SCORPIO GRAPHIC ERA UNIVERSITY DEHRADUN SUBMITTED FOR PARTIAL FULFILMENT OF MASTER OF BUSINESS ADMINISTRATION (MARKETING) (2015-17) SUBMITTED TO: Dr. SANJEEV ARORA FACULTY OF MANAGEMENT Graphic Era University SUBMITTED BY: MANUJ SINGH MBA 2ND YEAR MARKETING Graphic Era University
  • 2. 2 DECLARATION I hereby declare that the project entitled “MARKETING STRATEGIES WITH SPECIAL REFERENCE TO MAHINDRA SCORPIO” submitted in partial fulfilment of the requirement for the degree of MBA to GRAPHIC ERA UNIVERSITY, at Dehradun is my original work and not submitted for award if any other degree/ diploma or similar title or prize. DATE: ……. 2016 MANUJ SINGH MBA (2015-17) PLACE: Dehradun
  • 3. 3 ACKNOWLEDGEMENT This report has been made possible with the cooperation of many persons whom I wish to express my gratitude and appreciation. I am very grateful to the people who supported me to transform the report in the materialistic form. I am thankful to Dr. SANJEEVARORAfaculty management at GRAPHIC ERA UNIVERSITY, Dehradun for his gratitude during my project and giving me full co-operation and also valuable information and guidance, without which it would not be possible for me to complete the manuscript. I would also like to thanks the librarian and staff members of GRAPHIC ERA UNIVERSITY, Dehradun for providing me the required books in this field and my friends who were always there to assist me at odd hours also. MANUJ SINGH
  • 4. 4 EXECUTIVE SUMMARY Mahindra & Mahindra (M&M), the market leader in multi-utility vehicles in India. The company started manufacturing commercial vehicles in 1945. M&M is the leader by far in commercial vehicle and the second largest in the passenger vehicle market. The company is the world’s sixth largest medium and heavy commercial vehicle manufacturing. Mahindra is best known for utility vehicles and tractors in India, Its automotive division, the company's oldest unit (founded in 1945), makes jeeps and three-wheelers (not passenger "auto rickshaws," but utilitarian delivery and flatbed incarnations). M&M's farm equipment sector, formed in 1963 during India's green revolution, manufactures tractors and industrial engines. M&M also produces military vehicles. The company has facilities located throughout India. The survey involved gathering wide information about the company, its products, customer satisfaction and impact of various competitive firms on the company. From the information collected, various aspects were identified where the company needs to focus more to improve the efficiency of marketing team of Mahindra Automotive. The research was conducted through collection of primary and secondary data. Secondary data was collected through visiting various web sites, automobile magazines and other reliable sources. Primary data was collected through a well-framed questionnaire, of which later a detailed analysis was done using various statistical I.T. tools like MS Word and MS Excel. On the basis, the secondary data analysis and the extensive analysis of the primary data, interpretations were drawn for the questions and conclusion is drawn. Certain suggestions are also drawn from the analysis to help. Mahindra Automotive to increase its market share in commercial passenger segment and MPVs. The main research that followed is to know “MARKETING STRATEGIES WITH SPECIAL REFERENCE TO MAHINDRA SCORPIO”, a new SUV recently launched by Mahindra. Due to the limited resources and time constraints, the study was conducted within the area Dehradun city.
  • 6. 6 ABOUT MAHINDRA FIRST CHOICE 7 COMPANY PROFILE 10 MILSTONE, AWARDS AND ACCOLADES 12 MILESTONES of M&M 16 PRODUCT PROFILE 18 BOLERO VARIANTS 20 INTRODUCTION TO STRATEGY 32 RESEARCH METHODOLOGY 53 DATA ANALYSIS & INTERPRETATION 60 FINDING 70 RECOMMENDATION 72 CONCLUSION 74 BIBLIOGRAPHY 76 ANNEXURES 78 QUESTIONNAIRE 79
  • 7. 7 ABOUT MAHINDRA FIRST CHOICE Mahindra First Choice Wheels is the country’s preferred used car mart and is India’s only organised multi-brand player, with 500+ outlets in 270+ cities in India. The company plans to expand this number to 1800 outlets by the year 2020. This implies that customers will soon be able to choose from a wide range of certified used cars throughout India, including the metros and tier-2 towns and cities. MAHINDRA GROUP Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, we’ve diversified into many new businesses in order to better meet the needs of our customers. We follow a unique business model of creating empowered companies that enjoy the best entrepreneurial independence and Group- wide synergies. This principle has led our growth into a US $16.5 billion multinational group with more than 180,000 employees in over 100 countries across the globe. Today, our operations span 18 key industries that form the foundation of every modern economy: aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defence, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. Our federated structure enables each business to chart its own future and simultaneously leverage synergies across the entire Group’s competencies. In this way, the diversity of our expertise allows us to bring our customers the best in many fields. Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only tractor company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. The US based Reputation Institute ranked Mahindra among the top 10.
  • 8. 8 Mahindra First Choice Services to expand chain of workshops The multi-brand car workshop chain Mahindra First Choice Services, a wholly-owned subsidiary of the diversified Mahindra & Mahindra Limited, has announced plans to rapidly expand its chain of workshops from 42 to 100 by March 2015. The chain inaugurated its first Franchisee Owned Franchisee Operated (FOFO) workshop in Kurnool town today. YVS Vijay Kumar, Chief Executive Officer of Mahindra First Choice Services, said, “We see great potential for the multi-brand car servicing market in the country. This has prompted us to further strengthen our presence. Our business model for franchisees has received a strong response.” MFCS is targeting over 100 Franchisee Owned and Franchisee Operated workshops by March 2015. Of this, 20 workshops are expected to come up in Telangana and Andhra Pradesh, he said. For a car service provider, a strong supply chain for spares and technical training are two most essential elements. With 42 existing workshops and over 2,00,000 cars serviced, MFCS believes that it has a strong proposition for the franchisees. The company offers a simplified business model in multi-brand car servicing with a robust supply chain for spare parts through its cluster warehouse. Each cluster warehouse supplies parts as per the daily requirements of Franchisee Owned and Franchisee Operated and Company Owned and Company Operated centres, thereby reducing the need to maintain huge inventories at workshops.
  • 9. 9 AFTER MARKET SECTOR Mahindra & Mahindra has added a new business vertical - After-Market Sector for taking care of the growing population of vehicles in India (6 million cars currently, expected to grow to 17 million by 2015). There is vast untapped potential in the after-market space, covering multi-brand used vehicles, servicing and spares which support this business ecosystem. This will create in the organized sector, a business ecosystem which replicates the existing ecosystem for new vehicles. The Business Units in the After-Market Sector includes:  Mahindra First Choice Wheels Ltd. (Sale & Purchase of used Cars)  Mahindra First Choice Services Ltd. (Multi-brand Service Chain)
  • 10. 10 COMPANY PROFILE HISTORY OF MAHINDRA & MAHINDRA AUTOMOTIVE Mahindra & Mahindra (M&M) was established in 1945 as Mahindra & Mohammed. Later on, after the partition of India, one of the partners - Ghulam Mohammad - returned to Pakistan, where he became Finance Minister. As a result, the company was renamed to Mahindra & Mahindra in 1948. M&M started its operation as a manufacturer of general-purpose utility vehicles. It assembled CKD jeeps in 1949. Over the passing years, the company expanded its business and started manufacturing light commercial vehicles (LCVs) and agricultural tractors. Apart from agricultural tractors and LCVs, Mahindra & Mahindra also showed its dexterity in manufacturing army vehicles. Soon, it started its operations abroad, through its plants set up in China, the United Kingdom and the USA. M&M partnered with companies prominent in the international market, including Renault SA, International Truck and Engine Corporation, USA, in order to mark its global presence. M&M also started exporting its products to several countries across the world. Subsequently, it set up its branches including Mahindra Europe Srl (based in Italy), Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd. At the same time, M&M managed to be the largest manufacturer of tractors in India, by holding
  • 11. 11 leadership in the market of the country, for around 25 years. The company is an old hand in designing, developing, manufacturing and marketing tractors as well as farm implements. It made its entry to the passenger car segment in India, with the manufacture of Logan (mid-size sedan) in April 2007, under the Mahindra Renault collaboration. Soon after the considerable success of Logan, M&M started launching a wide range of LCVs and three wheelers as well as SUVs including Scorpio and Bolero. In the present time, Bolero has gained immense popularity in India. It is one of the most opted vehicles in its class. MAHINDRASCORPIO Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle in India in 2002. This SUV has redefined the expectations for the design of SUVs with its sturdy looks and powerful performance, the sophisticated interior design adds to the further glory to the appearance. MAHINDRABOLERO Mahindra Bolero is one of the most successful and popular utility vehicle of the Mahindra and Mahindra Group. The car is robust in appearance and it has been elegantly designed, keeping in mind the conditions of the Indian roads. Mahindra Bolero is also among the best fuel-efficient cars of India as the manufacturer has equipped it with a 2500 cc diesel engine with5- speed transmission. MAHINDRARENAULT LOGAN Much awaited Mahindra-Renault Logan has been launched in India. This compact sedan is a spacious, practical and affordable vehicle. The outlook of Logan is impressive and the basic version is a value for money, however the top-end versions are a bit high on price. The prominent feature of this car is its performance, interiors and economy.
  • 12. 12 MAHINDRAXYLO Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle (MUV) “Xylo” in India on January 13, 2009. The car boasts of having all the luxurious features that are seen in today’s sedans, with the ample space of a utility vehicle. Xylo's muscular stance contributes to its commanding road presence. Fully packed with the latest features, the MUV is sure to impress Indian consumers and provide a stiff competition to the other vehicles within its class. Performance OfMahindra XYLO Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel engine, which generates a power of 112bhp @ 3800 rpm and a peak torque of 24 kgm @ 1800-3000 rpm. The powerful engine is developed on the NEF CRDe platform and is mated to 5-gears manual transmission. The car accelerates from rest to 60 km/h in just 5.8 seconds. MILSTONE, AWARDS AND ACCOLADES M&M’s 61st year was studded with a number of noteworthy achievements, prestigious prizes and glittering awards. DUAL HONOURS FOR CHAIRMAN MR.KESHUBMAHINDRA Chairman, Mr. Keshub Mahindra was awarded the “Business Visionary Award 2006” instituted by the National Institute of Industrial Engineering (NITIE), Mumbai. Chairman, Mr. Keshub Mahindra was also awarded the prestigious IBS Kolkata Lifetime Achievement Award for his ‘unparalleled contribution to industrial growth and social and economic development of the community’. The Institute of Chartered Financial Analysts of India’s (ICFAI) India Business School (IBS) presented it, Kolkata, at the Strategy Summit 2007, held in Kolkata.
  • 13. 13 SLEW OF HONOURS FOR MR.ANAND MAHINDRA Mr. Anand Mahindra, VC & MD, Mahindra Group, received a number of prestigious awards in 2006-07, including: o The prestigious CNBC Asia Business Leader of the Year Award for the Year 2006 as well as the CNBC TV India “Business Leader of the Year Award”. o The ‘CEO of the Year’ award at the India Brand Summit 2006 co-sponsored by Business Standard and ITM Business School in association with Times Now and DNA newspaper. o The LMA Entrepreneur of the Year 2006 award, instituted by the Ludhiana Management Association (LMA). o The Most Inspiring Corporate Leader of the Year’ Award by NDTV Profit o The NDTV Profit – Car & Bike Award 2007 for Automobile Man of the Year. Mr. Anand Mahindra was also nominated as a Member of the Council of the Executive Committee of the National Sports Development Fund (NSDF) of the Govt. of India. He was featured in the list of 50 Most Influential Indians in Business Week’s edition dated August 13, 2007 HIGHEST CRISILRATINGFOR M&M M&M has received the highest Governance & Value Creation rating, CRISIL GVC Level - I from CRISIL for the ability to create value for all stakeholders, while adopting sound corporate governance practices. DUN & BRADSTREET AMERICAN EXPRESSCORPORATE AWARDS 2006 Mahindra & Mahindra was rated as the leading Indian company in the Automobile - Tractors sector in the ‘Dun & Bradstreet – American Express Corporate Awards 2006’. The Automobile Sector comprises of three categories – Passenger Vehicles, Commercial Vehicles and Tractors. These awards recognize the virtues of size and growth in the awards methodology. M&M ranked No. 1 in these two segments in the premier Dun & Bradstreet India publication, India’s Top 500 Companies 2006.
  • 14. 14 MAHINDRARECEIVES AMITYHR EXCELLENCE AWARD Mahindra & Mahindra was honored with the Amity HR Excellence Award at the Fourth Amity Global HR Summit 2007 held at the Amity International Business School, Noida. The Amity HR Excellence Award recognized Mahindra as one the most admired companies across the global on account of its innovative strategies for Human Resources Management and Development. GLOBAL HR EXCELLENCE AWARDFOR M&M Mahindra & Mahindra won the Global HR Excellence Award for Innovative HR practices (Manufacturing Sector), in the Asia Pacific HRM Congress, held in Mumbai. These awards recognize organizations and individuals who have embraced change, encouraged constructive challenges and demonstrated entrepreneurial skills in the corporate world. M&M WINS BOMBAY CHAMBER GOOD CORPORATE CITIZEN AWARD 2006-07 M&M was presented with the coveted Bombay Chamber Good Corporate Citizen Award 2006-07 at a glittering ceremony held to celebrate the Chamber’s 172nd Foundation Day on September 21, 2007. Mr. Bharat Doshi, Executive Director, M&M Ltd. and Mr. Rajeev Dubey, Member of the Group Management Board and Chairman, Mahindra & Mahindra CSR Council, received the award on behalf of the company. This Award recognizes and honors conspicuous achievement by corporate organizations by way of service to the civic community, in addition to outstanding operational performance. It takes into account several parameters, including Business Performance, Corporate Interests, Employee Welfare, Customer and Stakeholder Satisfaction and Social Investment. GOLDEN PEACOCK AWARD FOR EXCELLENCE IN CORPORATE GOVERNANCE Mahindra & Mahindra won the coveted Golden Peacock Award for Excellence in Corporate Governance 2006. This award validates the company’s ‘Best-in-Class’ corporate governance practices and reflects its transparent and ethical dealings with stakeholders across the entire value chain. It recognizes the Management’s commitment to the highest standards of corporate conduct
  • 15. 15 and its commitment to Corporate Social Responsibility as a distinct activity that helps build commendable social values and adds to the ethical fiber of the organization. BEST AUTOMOTIVE MANUFACTURING SUPPLYCHAIN EXCELLENCE AWARD Mahindra & Mahindra has been awarded as the organization with the “Best Automotive Manufacturing Supply Chain Excellence”. The awards were presented by India Times Mindscape (Times of India Group) along with the Business India Group at the Express, Logistics & Supply Chain Awards held in Mumbai on September 28, 2007. A. C. Neilson is accredited with the research for the award nominees and winners. HIGH RANKINGS FOR MAHINDRA M&M was ranked second in the prestigious e Most Trusted Car Company in India study conducted by TNS. M&M scored 127 points, just seven points below the top ranking company, according to a TNS communiqué. ➢ M&M was ranked 14th in The Economic Times prestigious ‘ET 500’ list of top achieving companies in India. The company has moved up four ranks from last year. To quote from the ‘ET 500’ write-up: “M&M’s ‘art-to-part’ strategy of diversification into the auto parts value chain and its plans for new platforms for utility vehicles and joint venture with Renault for Logan have led to a gain in ranks.” ➢ M&M was ranked 22nd in Business India’s annual survey of the country’s top companies - Super 100 ➢ M&M was ranked 31st in Business Today’s annual survey of India’s most valuable companies.
  • 16. 16 MILESTONES of M&M MILESTONES OF MAHINDRA AND MAHINDRA YEAR ACHIEVEMENTS  1947 In October, the first batch of 75 Utility Vehicles (UVs) imported in CKD condition from Willys overland Export Corporation.  1949 Lease of 11,071 Sq. yards at Mazagaon from British India Steam navigation. The first Willys Overland Jeep built in India at the Assembly Plant , Mazagaon, Bombay (now Mumbai).  1954 Manufacture of Vehicles undertaken in collaboration with Kaiser Jeep Corporation and American Motors Corporation.  1962 Indigenous content of Jeep goes up to 70 per cent. To centralise manufacturing operations, 137 acres of land purchased at Kandivli.  1965 FC 150 Petrol Trucks introduced.  1967 Two wheelers drive Utility Vehicles introduced. The 101" wheel base and Metal Body UVs introduced. Indigenous content goes up by 97 per cent.  1969 The start of vehicles export. Export of total 1200 UVs along with spare parts to Yugoslavia. Exported also to Ceylon, Singapore, Philippines and Indonesia.  1970 The contracts to export of 3304 vehicles, mainly to Yugoslavia and Indonesia concluded.  1974 Maxi miller campaign launched for the conservation of fuel. CJ 4A was introduced with new transmission and axle ratio. Collaboration agreement with Jeep corporation (subsidiary of AMC, Detroit).  1979 The Government of India approves in principle, technical collaboration with Peugeot (France) for the manufacture of XDP 4.90 Diesel Engine.  1981 The Nasik Trucks Assembly Plant and Peugeot Engine Assembly Plant at Ghatkopar inaugurated. NC 665 DP Mini Truck rolls out from Nasik Assembly Line.  1983 FJ 460 model was introduced with 4-speed gearbox. Engine plant at Igatpuri formally inaugurated by Mr. Jean Boillot, President of Automobiles Peugeot of France for the manufacture of 25,000 Peugeot and Petrol engines.  1985 The New Mahindra Vehicle-MM 540 was launched in Bombay. NC 640 DP with 4 speed gearbox and Mahindra MM 440 was introduced.  1986 CJ 640 DP Vehicle introduced.  1987 MM 540 DP metal Body Wagonette introduced.  1988 M&M signed a MoU with Hyderabad Allwyn Nissan Limited to form Mahindra Nissan Allwyn Ltd., as its associate company with LCV operations in Andhra Pradesh.  1989 The CJ 340 DP model was introduced. M&M and Peugeot announced their tie up for the manufacture of Peugeot 504 pickup truck, BA 10 gearboxes and latest XD 3 diesel engines. M&M acquired automotive pressing unit at Kanhe, from Guest Keen Williams Ltd.
  • 17. 17  1991 Introduced CJ 500 DI model with MDI 2500 A direct injection diesel engines. M&M bags order to export 10,000 CKD kits. Commander range of models: 650 DI, 750 DP/HT were also launched with tremendous market response.  1993 The Mahindra Armada was launched  1995 Mahindra Nissan Allwyn Ltd. (MNAL) was merged with M&M and Zaheerabad LCV operations becoming part of Automotive Sector. FJ series of LCVs were shifted from Nasik to Zaheerabad. Igatpuri Engine Plant received ISO 9002 certificate.  1996 The new LCV model Cabking DI 3150 & Mahindra Classic vehicles were launched. New Commander 5 Door Hard Top introduced.  1997 Commercial production of the Ford Escort commenced at Nasik Plant. License & Technical Assistance Agreement signed with Mitsubishi Motors Corporation for Manufacture of SL Body at Zaheerabad (Voyager with XD 3 and BA 10). Kandivli and Nasik plants received ISO 9002 certificate from RW-TUV.  1998 Die shop Inauguration at Nasik Plant 2-8/8/97. Voyager was launched by the Chairman at Zaheerabad Plant on 12/11/97
  • 19. 19
  • 20. 20 BOLERO VARIANTS Scorpio SLX Features and Specification Make Mahindra Model Scorpio Variant SLX Body Type SUV No. of Doors 5 Fuel Efficiency: City Mileage 9.4 kmpl Highway Mileage 12.4 kmpl Fuel Capacity 60 liters Fuel Type Diesel Fuel Grade - Engine Parameters: Displacement 2523cc Bore - Stroke - Cylinder Configuration 4 inline Valve Gear Operation - Compression Ratio - No. of Valves 8 Aspiration Turbo Charged Fuel System DI Horse Power 63.12@3200 ps@rpm Torque 180@1440 Nm@rpm
  • 21. 21 Steering and Suspension Steering Type Rack and pinion, power assist Power Steering Yes Front Suspension Independent with coil spring Rear Suspension Leaf spring Dimensions: Length 4056 mm Height 1880 mm Width 1660 mm Wheel Base 2680 mm Clearance 200 mm Front Head Room Min: 60mm Max: 60mm Rear Head Room Min: 60mm Max: 60mm Rear Leg Room Min: 74mm Max: 94mm Krebs Weight Min: 1615kg Max: 1615 kg Drive Train Type Manual Gears 5 Drive Line RWD Comforts Features AM / FM Radio Present Except AM / FM radio there is no other comfort is provided. Safety: There is no safety feature included in Bolero SLX including antitheft system etc.
  • 22. 22 Scorpio SLE Feature and Specification Make Mahindra Model Scorpio Variant SLE Body Type SUV Number of Doors 5 Fuel Efficiency: City Mileage 9.5 kmpl Highway Mileage 13.2 kmpl Fuel Capacity 60 liters Fuel Type Diesel Fuel Grade - Engine Parameters: Displacement 2523cc Bore - Stroke - Cylinder Configuration 4 inline Valve Gear Operation - Compression Ratio - No. of Valves 8 Aspiration Turbo Charged Fuel System DI Horse Power 63.12@3200 ps@rpm Torque 180@1440 Nm@rpm
  • 23. 23 Steering and Suspension Steering Type Rack and pinion, power assist Power Steering Yes Front Suspension Independent with coil spring Rear Suspension Parabolic Leaf spring Dimensions: Length 4056 mm Height 1880 mm Width 1660 mm Wheel Base 2680 mm Clearance 180 mm Krebs weight Min: 1615kg Max: 1615 kg Gross weight - Drive Train Type Manual Gears 5 Drive Line RWD Comfort Features Air-Conditioning Yes Except Air conditioning, no other comfort features are present in the Scorpio SLE. Same as SLX no safety features are present in the Scorpio SLE.
  • 24. 24
  • 25. 25 Scorpio DIZ Feature and Specification Make Mahindra Model Scorpio Variant DIZ Body Type SUV Number of Doors 5 Fuel Efficiency: City Mileage 9.5 kmpl Highway Mileage 13.2 kmpl Fuel Capacity 60 liters Fuel Type Diesel Fuel Grade - Engine Parameters: Displacement 2523cc Bore - Stroke - Cylinder Configuration 4 inline Valve Gear Operation - Compression Ratio - No. of Valves 8 Aspiration - Fuel System DI Horse Power 63.12@3200 ps@rpm Torque 137.5@2000-2500 Nm@rpm Steering and Suspension
  • 26. 26 Steering Type Rack and pinion, power assist Power Steering Yes Front Suspension Independent with coil spring & anti roll bar Rear Suspension Parabolic Leaf springs Dimensions: Length 4056 mm Height 1880 mm Width 1815 mm Wheel Base 2680 mm Clearance 200 mm Boot - Krebs weight Min: 1615kg Max: 1615 kg Gross weight 5.4 kg Drive Train Type Manual Gears 5 Drive Line RWD
  • 27. 27 SCORPIO DI Feature and Specification Make Mahindra Model Scorpio Variant DI Body Type SUV Number of Doors 5 Fuel Efficiency: City Mileage 10.7 kmpl Highway Mileage 12.9 kmpl Fuel Capacity 60 liters Fuel Type Diesel Engine Parameters: Displacement 2523cc Bore - Stroke - Cylinder Configuration 4 inline No. of Valves 8 Aspiration Turbo Charged Fuel System DI Horse Power 63.08@3200 ps@rpm Torque 180@1440 Nm@rpm Steering and Suspension
  • 28. 28 Steering Type Rack and pinion, power assist Power Steering No Front Suspension Independent with coil spring Rear Suspension Leaf springs Dimensions: Length 4260 mm Height 1810 mm Width 1815 mm Wheel Base 2680 mm Clearance 183 mm Front Head Room Min: 60mm Max: 60mm Rear Head Room Min: 60mm Max: 60mm Rear Leg Room Min: 74mm Max: 94mm Krebs weight Min: 1615kg Max: 1615 kg Drive Train Type Manual Gears 5 Drive Line RWD Comfort Features Air-Conditioning Yes Except Air conditioning, no other comfort features are present in the Bolero SLE. Same as SLX no safety features are present in the Bolero SLE.
  • 29. 29 Dehradun Premier motors (PVT) LTD. Our Distinction: This is one of the largest authorised dealers for Mahindra & Mahindra in Uttarakhand Partners in Progress: We are the preferred partners of M&M automotive, chiefly due to our successful sales record and quality. Our facilities have remained unsurpassed, as we strive everyday to better our self. Commanding Presence: Premier motors as a centralised air-conditioned showroom of its kind in Uttarakhand, spread gracefully and decorated elegantly over an impressive 2500 sq.ft at Dehradun, Being equipped with affable front office staff and adept professional technicians, Provide a perfect of quality Service and Reliability. Space Friendly: The interiors are aimed at making you feel completely at ease, In luxury. Because for us the customer is king, one who deserves a regal offering. The setting is apt for times when you need to switch into a relaxed state of mind. Technologyto Stay Ahead: We are equipped with the latest technological advancement in the industry, in order to give the best of services when it matters. Not just to be part of, But to build the future, is our motto. Ambience the Exude Relaxation: Ours is one of the few service centres to be equipped with a fully-fledged customer-waiting lounge. A part from a television and pool table, it had a wed kiosk to keep u connected all the time. Service with Commitment: Our dedicated team of mechanical specialty offers expert treatment for your vehicle. We ensure consistency in performance each time, without fail.
  • 30. 30 Attention to Details: We provide genius spare parts and accessories to ensure exceptional performance. Every single aspect related to your vehicle is taken care of at our premises. Dealing Made Convenient: It is a part of our commitment policy to give advantage to the customer at every juncture. We offer assistance of every kind at our premises itself, which makes it a one stop facility. Expert Guidance at Every Step: Our sales team gives utmost priority to your satisfaction. When you need help to make the right choice, it is ensured that the result is beyond your expectations. Thus making it a point that you get the best in both luxury and comfort always. Models: Mahindra & Mahindra has been launching various type of MUVs and cars from the year of 1945, keeping in mind the quality, design, driving, comfort, fuel efficiency, and service and resale value. These from a formidable force that gives our customers the pride and the joy of value forever. What drives M&M is ➢ Commitment ➢ Leadership ➢ Any an eye for appropriate technology. Since 1945, when M&M first began manufacturing MUVs & LCVs, M&M have been engaged in a single-minded endeavour to bring you cars that only state-of-the-art, but are also some f the most environment-friendly vehicles in this world-a reflection of our commitment and care, for better environment. At the heart of every M&M is a unique engineering and an optimal mix of power and economy. All this is supported by M&M nation – wide dealership network and automated workshop that provide excellent after sale service
  • 31. 31 The company has constantly exploring new opportunity to define the shape to tomorrow’s driving technology. Promotional Activities: The promotional activities adopted by premier motors are a. Test Driving b. Free Driving c. Hoarding d. Discounts e. Advertisement in Newspaper and magazines f. Gift Schemes g. Free Services h. Mileage Contents Promotional expenses have been borne by both Dehradun premier motors and M&M, shares in advertisement cost. Service Offered: Six Service and paid service after sale of Cars. Free checkups campaigns Finance through bank Demonstration for new products Acceptance of warranty claims Working Time in Dehradun premier motors : Working hours in premier motors are 12 hours per day starting from 9:30 am to 9:30pm with one- hour break for lunch and 15 minutes for evening tea and coffee.
  • 32. 32 INTRODUCTION TO STRATEGY M&M- MARKETING STRATEGY FOR SCORPIO. Introduction: Today most international car manufacturers have entered the Indian market. India is the second largest two wheeler manufacturer in the world an also the second largest tractor manufacturer. It is also the 5th largest commercial vehicle manufacturer and 3rd largest car market. Mahindra & Mahindra Limited is a major automobile company in India. It was setup in 1945 to make general purpose utility vehicles for Indian market. The company has started a separate sector, Mahindra Systems and Automotive technologies (MSAT) in order to focus on developing components as well as offering engineering services. Now, branched out into manufacturing of agricultural tractors, and also light commercial vehicles. The company constantly manufactures its range of vehicles, whilst researching and developing new products. The more diversified parts of the business have been spun-off as separate business entities, and activities organized under various business groups. These groups now cover a wide range of markets: automotive, farm equipment, financial services, infrastructure and development, IT and automotive components. M&M's automotive division is in the business of manufacturing and marketing utility vehicles and LCVs. It has a market share in excess of 50% in this segment and manufactures the Scorpio SUV range. SituationAnalysis: Utility vehicles are rapidly capturing the market due to its multifarious use. Utility vehicles are found in two kinds: - SUV or Sports Utility Vehicles and MUV or Multi Utility Vehicles. Its spacious interior and sturdy exterior have made this vehicle one of the fastest selling vehicles of India. This is multi use vehicle to accommodate many passengers in one vehicle, especially while going for a long trip with a big family or with a folk of friends. Sporty attributes of this vehicle is not negligible when mentioning about its use. To name few SUV manufacturers of India- Fiat India, Ford Motors, Force Motors, General Motors, Hyundai Motors, Hindustan Motors, Mahindra & Mahindra, Porsche, Tata Motors, Toyota motors etc. Though the SUV market is very small, Anand Mahindra, Vice- Chairman and Managing Director, Mahindra & Mahindra says, "The very reason the SUV segment is small is because there are very few offerings in the segment. The Scorpio is going to help grow the segment
  • 33. 33 in India." Mahindra saw that India’s pot-holed roads, difficult terrain and great distances — often held up as the country’s disadvantages — were actually great strengths for an SUV maker. Improvement in road networks and reduction of excise taxation encouraged sales of cars among the young population. They choose to enter the market when there was very little product development and when all the suppliers were hungry for business. Customers: A study conducted to understand the UV customer by an advertising agency ‘Interface communication’ revealed the following criteria for customer buying process:-  Customers preferred bid size as it stands for status.  They seek latest technology Competitors: There has been an increasing demand for UVs with 18% growth .In 2004, Toyota was the major player in the SUV segment, with sales of 31,898 units of its Qualis Local players included Tata’s Sumo and Safari and then the M&M’s bolero and Scorpio.GM launched its Chevy Tavera, an SUV that competed directly with Scorpio with sales of 2700 units in three months. Context: In late 1990s Mahindra, a leader in 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 barrier as well. Though it had positives as rugged, tough, reliable, economical vehicle. The negative parameters were that it was uncomfortable, rough, not easy, rural imaginary, down market etc. Hence they decided to launch a product with the following objectives:  To create new segment and retain market domination.  To differentiate offering my providing an excellent value proposition.  To optimise project costs.  Providing low cost transportation rate to rural and semi urban market.
  • 34. 34  To develop strong presence in urban market with VFM product.  To compete with global players. M&M products, such as the Scorpio and its smaller cousin Bolero, are now competing effectively with foreign competition at home. The automotive division, which makes utility vehicles (UVs) and SUVs, now contributes 61 per cent to M&M’s revenues. Of the 288,601 UV/SUVs sold in India in the year up to March 2008, 148,761 or 51.6 per cent were M&M vehicles and 39,935 of these were Scorpios.
  • 35. 35 STP analysis: M&M has established it self in many divisions such as the automotive sector, Farm equipment sector ,IT sector etc.M&M has fashioned a three-pronged strategy for the automotive sector — passenger cars, commercial vehicles and utility vehicles. The Mahindra Group’s Automotive Sector is in the business of manufacturing and marketing utility vehicles and light commercial vehicles, including three-wheelers. It is the market leader in utility vehicles in India since inception, and currently accounts for about half of India’s market for utility vehicles. Although created in 1994 following an organizational restructuring, the Automotive Sector can trace its antecedents back to 1954. The iconic jeep that led American G.I.s to victory in World War II is the very same vehicle that drove the Mahindra Group to success in the Automotive Sector. Mahindra & Mahindra Limited, the flagship company of the Group, was set up as a franchise for assembling general purpose utility vehicles from Willys, USA. Over the years, the Group has developed a large product portfolio catering to a diverse customer base spanning rural and semi- urban customers, defence requirements and luxurious urban utility vehicles. In 2002, it launched the indigenously engineered world-class sports utility vehicle-Scorpio, which bridges the gap between style and adventure, luxury and ruggedness, and performance and economy Scorpio belonged to the SUV. M&M further believes that the target segment and pricing for the Scorpio will ensure that it is not only competing with other utility vehicles in the segment, but also with the mid-size car segment (priced in the Rs 5-7 lakh range), which includes the likes of the Ford Ikon, the Opel Astra, and even cars such as the Fiat Palio (the upper-end model). Although, M&M remains a leader in the domestic UV segment, it has been steadily losing
  • 36. 36 market share to the likes of Tata Engineering (with the Sumo and Safari) and Toyota (with Qualis) over the past few years. Further, there is more competition coming up in the segment with the likes of Suzuki (with Grand Vitara) and Hyundai (with its Terracan) among others set to enter the market this year. However, M&M is confident that the Scorpio's value-for-money proposition will make it score vis-à-vis the competition. While both the Terracan and Vitara are expected to be priced in the Rs 13-18 lakh range, the Scorpio is priced even lowe than its current competition.Its target customers were life style oriented customers. The value proposition stated ‘the vehicle that provides luxury and comfort of a car and, adventure and thrill of a SUV.’ The launch also marks a paradigm shift in the company's strategy in terms of design, spends, as well as focus. n fact, the very development of the product has been a success in its own right. It took M&M Rs 600 crore, six years, a small team of 120 people and 74 prototypes to finally launch the indigenously developed Scorpio. The company has also sourced the best of available technology from across the globe - ranging from the likes of Renault (for the petrol engine), Visteon, BEHR, Meritor and so on. When Scorpio hit the streets, it arrived as an SUV with a `car plus' package. Two-and-a- half years later, it has caused a paradigm shift in its category. Equipped with a savvy marketing strategy, the brand has not only grown the SUV market, but almost touched base with the `C' class cars segment (Rs 5 lakh and upwards.) “We believed that we had a shot at being a niche global player in SUVs,’’ says Mahindra, who recently bid against Tata Motors to buy Jaguar and Land Rover. Mahindra saw that India’s pot-holed roads, difficult terrain and great distances — often held up as the country’s disadvantages — were actually great strengths for an SUV maker. “If a vehicle could go in India, it could go anywhere,” he says. “We made go-anywhere vehicles for the army. It was a readymade global positioning.” According to automobile manufacturers' data, the premium utility vehicle segment grew at approximately 14 per cent up to June 2002. Unlike for its competitors in the UV category, people who wished to purchase a C class car would also consider a Scorpio," says Hormazd Sorabjee, Editor, Autocar India. Cut to market expansion of premium utility vehicles against `C' class cars. Out of the total number of premium utility vehicles and `C' segment cars put together, premium UVs accounted for about 21 per cent during the year 2000. The figure touched 49 per cent this year. The Scorpio launch did play a significant role in driving the UV market up. This to me is the
  • 37. 37 ultimate measure of success - the ability of a company to drive the growth of markets. Marketing gurus suggest that the positioning of Scorpio was also very bold and innovative. The easiest temptation for M&M would have been to position Scorpio as a `better-looking SUV' or `a rugged, yet good-looking SUV' in sync with its tough vehicle pedigree. But this would have made Scorpio a prisoner of the category, and it would have had to compete with other players in the category. This also would have restricted the growth of the category by itself. "The `car plus' approach is indeed very innovative and bold. Bold, because it goes against the existing frames of reference of customers and hence the need to create new frames of reference," elaborates Koshy. The new frame of reference also had a distinct brand strategy associated with it. It all started in 1997, when M&M set up Project Scorpio in quest for new markets. As much was written about the project, the brand name Scorpio had built enough equity. Internal research showed that Scorpio featured in the top two suggested names. Since the name was reasonably accepted, the company plumped for `Scorpio from Mahindra'. "Those were the years when there was instability in the automobile sector, especially after the Daewoo fallout. `Scorpio from Mahindra' was the shadow endorsement strategy used to endorse stability in these times," explains Rajesh Jejurikar, Executive Vice-President (Marketing & Sales), Automotive Sector, M&M Ltd.Earlier, M&M did not have the right to use the name Scorpio as it was originally a Ford brand name for a sedan. The company, however, got approval from the latter to use the name, except in certain European markets. Says Jejurikar, "The product will cut across all geographical segments. We are targeting it at both the urban as well as rural consumer. The Scorpio will be positioned as a value product targeted at the young, demanding male." Marketing implementation: Product: The design moment of the Scorpio was also the defining moment for M&M as a company and brand. It changed the way M&M saw itself in the mirror — overnight. It was a classic case of a product defining a strategy instead of the other way around. The Scorpio inspired M&M to embrace new strategies that would transform the company from a mere tractor and soft-top vehicle maker into a brand-conscious yuppie of the corporate world. Today, the gently greying Mahindra, who once wanted to make films, not automobiles, has proved adept at steering his over Rs 10,000- crore Company through this change. Between July 2003 and January 2004, the brand was
  • 38. 38 subjected to new product developments. Quieter engines were introduced after adopting the chain drive engine system. The seats were improved, and the new two-toned look was developed. Recently, Scorpio installed a Common Rail Diesel engine to meet the BS III auto emission norms As the product development took off, a phased communication strategy was plotted for the brand. During the first phase, the need to deal with issues such as lifestyle imagery was identified by the Mumbai-based advertising agency Interface Communications. As a result, the television commercials depicted the product and a pan-global imagery, even as the print advertisements focused on functional benefits. So one got to see copies like `Car you walk into, and not crawl into' across newspapers. "In phase two, we did not change the television campaign, but our print creative were centered on communicating new product developments," says Jejurikar. Mahindra claims that the new Scorpio is built around customer's needs. 45 months of market research and a few customer outreach programs later, they seem to be on the right track. The legroom complaints have been taken care of with middle row seats that slide. They've also got new vents up front on the dash that I couldn't really figure out and angular aircon vents at the rear, so the third row isn't left out. If you're not satisfied with it, don't sweat, as you can also fit a split air conditioner like the one you find in other big SUVs at any Mahindra dealership. The third phase of communication was released in July 2004 when the automotive giant focused on the `car plus' statement. What followed was a series of advertisements focusing on people and lifestyle rather than the product. Brand: A recent brand equity study conducted by IMRB International ranked the Scorpio in the highest- level of its construct, the `Olympic' category. An Olympic brand is one that is "well-known, well- loved and has a large core following”. The results are based on a research conducted by IMRB using Millward Brown's Brand dynamics model, an internationally recognized brand equity measurement tool.Mr Vivek Nayer, Vice-President - Marketing, Automotive Sector, M&M, said, "Scorpio is the only four-wheeler in its class in India to have achieved this, which speaks volumes of the customers' faith in the brand. Pricing: It adopted a penetrative pricing strategy. Its competition with accent, ikon, Qualis, Tata sumo. The second is the pricing strategy. M&M's aggressive pricing strategy appears to hinge on the
  • 39. 39 promise of viable volumes for the Scorpio in the initial period. Pricing for the Scorpio will ensure that it is not only competing with other utility vehicles in the segment, but also with the mid-size car segment (priced in the Rs 5-7 lakh range), which includes the likes of the Ford Ikon, the Opel Astra, and even cars such as the Fiat Palio (the upper-end model). The pricing strategy of Scorpio was definitely penetrative, especially when it lured the C segment buyers, and caught the fancy of the B segment buyers. The ability of any company to play the price game is a function of cost competitiveness, explains IIM's Koshy. In this specific case, lower price needs to be looked at as `invitation' price for the basic version while there are others who buy these kind of vehicles seeking a fully loaded version. The Mumbai ex-showroom prices vary from Rs 6.52 lakh to Rs 7.01 lakh.”M&M is not betting on playing the price game in this market. I think that the company is certainly into the image game. Price therefore is more a tactical element and not a strategic vehicle," elaborates Koshy. The pricing could be on higher range because at the time of launch, people were willing and able to obtain loans, increasing acceptability of using financing to purchase vehicles. Promotion: Prior to Scorpios launch, the team held a press-driven event in June 2002 to sell the positives of the car to auto experts and journalists. The event created publicity for the functional elements of the car and its attractive price point, leaving the television advertisements to sell the yuppie image. "All Scorpio advertisements show the vehicle in urban settings driven many times by women conveying the message of "ease of driving." Unlike competitors' advertising strategy, no imagery of off-road settings and `wilderness' or `break-free' connotations were depicted," says IIM's Koshy.Other international majors are battle scarred in other markets. All of them have capabilities to compete with the best anywhere. But what Scorpio did was alert all of them that nothing but the best will do in the Indian market too. "Is it not interesting that the tag line of Scorpio TV ads says `nothing else will do' For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote the new avatar of Scorpio. Created by Interface Communications, the mass media campaign includes a series of press advertisements and a television commercial. As for the rationale behind the relaunch of Scorpio, says Mahindra & Mahindra Ltd executive vice-president (marketing & sales) Rajesh Jejurikar: “After conducting an extensive market research (with AC Nielson), we upgraded
  • 40. 40 our existing model with new features. However, the positioning of the brand will remain the same so the ad line will continue to be the same—‘Nothing Else Will Do.’” The company plans to focus on press ads to highlight the new features and improved fuel efficiency of the upgraded version of Scorpio. “To support mass media advertising, we’ll be hosting road shows and ground promos. Till now we have sold over 20,000 Scorpios since we launched this brand. With this improved version, we will phase out the old brand,” he adds. In addition, Mahindra & Mahindra has recently launched a nationwide talent search programme titled ‘Scorpio Speedster With Timex’ in 10 cities across the country. Through this initiative, the company plans to strengthen Scorpio’s brand positioning of being a youthful and sporty SUV, says Mr. Jejurikar. Among other initiatives the company plans to increase the vehicle's appeal includes the Top Gear Club (which will offer a whole range of value-added services for Scorpio consumers). M&M has also started a toll-free `Scorpioline' to deal with customer queries regarding the vehicle. Further, the company has launched dealer up gradation programs, in which the showrooms (which will showcase the Scorpio) have been redesigned and given a trendy look. Says a company official, "The M&M showrooms across India now share the Scorpio's brand personality - sporty and technologically advanced. We plan to set new service paradigms through our dealer network." Place: The dealership roll-out will be conducted in three phases. In the primary phase, approximately 45 dealerships will be covered.” The Scorpio predecessor, Bolero, (which had earlier replaced the Armada) will not be discontinued. However, it is with the Scorpio that M&M hopes to find a foothold in the export markets. The company will be rolling out the Scorpio in two phases outside India. Says Pawan Goenka, Executive Vice-President, Product Development, "In the first phase, we will be looking to roll out in markets such as Indonesia, Russia, South Africa. We are expecting approximately 15 per cent of the sales for Scorpio to come from overseas." According to company officials, M&M will be following a different strategy in each of these countries based on local conditions. Says a company official, "There can even be the possibility that the Mahindra brand name may not be used for marketing the vehicle in certain countries depending on the market characteristics. The focus will be on selling the vehicle." Meanwhile, the company feels the Scorpio will attract the price conscious consumer even in these highly competitive markets. M&M has already inked a tie-up with the Sun Group in Russia, and is in
  • 41. 41 talks for similar tie-ups in Indonesia and Malaysia. Says Jejurikar, "The UV market overseas is huge. For instance, in Indonesia it forms 80 per cent of the entire market, while the Asia average is about 40 per cent. In India, the figure currently stands at about 15 per cent." Distribution strategy was to serve fewer markets but to serve them all. It had a phased launch, showroom exp and infrastructure. The Scorpio would continue to sell for many more years even though new vehicles bearing the Mahindra brand may unseat it from its lofty perch. But none of them are likely to be an avatar that would consume the company the way the Scorpio did. NEW DELHI, Enthused by the growing popularity of its latest offering Scorpio in the metros, M&M is preparing to drive the sports utility vehicle to the semi-urban towns.The firm has already chalked out marketing plans for these smaller towns, where the Scorpio is slated to sting competition by October this year. It is also readying plans to introduce more variants on the Scorpio, V-P (automotive sector) Rajesh Jejurikar said. “We will look at feeding these markets with only the diesel version...We will start with Alwar and Aligarh in the north, Hubli and Trichi in the south and Raipur in the west. Then, we will gradually expand reach into these towns,” Jejurikar said. “With the rains having started in some parts, we can move ahead with debuting the Scorpio in these towns,” he added. The firm has targeted to introduce the Scorpio in around 45 towns by December this year. However, there are no immediate plans to introduce a soft-top version of the vehicle in these markets. Soft-top vehicles are in high demand in the semi-urban and rural towns, where vehicles of the size of Scorpio are generally used for transport purposes. Other options include a pick-up version for overseas. Creating value,Extracting valueandSustaining value: ‘Value for money’ was their main criteria to serve the customers. But more than anything, the company is banking on the Scorpio to bring about a change in image and perception about the company. Often dubbed as a company which makes sturdy vehicles for the rural markets, the Scorpio could give M&M a new lease of life. The launch also marks a paradigm shift in the company's strategy in terms of design, spends, as well as focus. Scorpio has topped the charts of both customers and non-customers. While the TNS Automotive Customer Satisfaction voted Scorpio as the best SUV after Toyota Qualis, the Indicus Customer Study registered the perception of the brand among people at large.
  • 42. 42 Mahindra claims that the new Scorpio is built around customer's needs. 45 months of market research and a few customer outreach programmes later, they seem to be on the right track. The legroom complaints have been taken care of with middle row seats that slide. They've also got new vents up front on the dash that I couldn't really figure out and angular aircon vents at the rear, so the third row isn't left out. It’s with high-tech features, great looks, great mileage in its class, good interiors. According to Delhi-based Indicus Consumer Tracker, an independent brand-tracking firm, its study conducted in January this year revealed that 3.8 per cent of the 3,690 sample size recalled the Scorpio ad while 2.2 per cent recalled the brand, and 1.8 per cent switched to the brand. The figures seem diminutive, but when extrapolated on to a larger universe of product categories, they tell a different story. In terms of total number of units sold in the passenger vehicles segment, SUV holds a very small mind share, and yet Mahindra Scorpio is the only SUV brand that garners both brand and ad recall across the sample size. "Scorpio is among the only three main car sub-brands whose ad and brand recalls are higher than the master brands The track monitors `high value'
  • 43. 43 consumers, and registers those who are in the SEC A and B categories, while 67 per cent of the sample size is from the top eight metros; the rest from the next 50-60 towns across India. Sales too have been zooming, says the company. According to brand-wise data, the company claims to be matching sales of most C segment cars, even outselling some of them. In the last six months, M&M sold 14,389 Scorpios, against a total C segment sales of 79,346, according to company data.M&M is also attempting innovative strategies on the digital turf, and is currently eyeing gaming as a means to promote the brand. So, the client-agency team is toying with the idea of game called `turbanator' for the mobile gaming fraternity. Scorpio achieved its targets on market share and achieved volumes of 12000 vehicles sale in the first 9 months of its launch. Scorpio advertising had a very high recall for the Mahindra brand as well as product.Advertizing also positioned Scorpio as a powerful vehicle with a sporty look.74 vehicles were built only for testing. They used simultaneous testing and examining process. The product was put through NOVA-C(New overall vehicle audit-customer) system to measure the overall quality of the production process. A world class manufacturing setup was spread over 120 acres with a capacity of 40,000 units annual on a shift basis. It was more flexible in terms of partners. The company looked east instead of west for cheaper components and allowed customers to choose their own collaborators. To reduce costs, Goenka contracted manufacturing to companies that had technology but had never been given the chance to prove it. For instance, South Korean suspension maker Samlip had never designed the full suspension system for a vehicle but M&M entrusted it with that task. Another South Korean company, Wooshin Systems, that had also never done a full body shop design, did
  • 44. 44 the body jigs and fixtures. But such moves stood M&M in good stead. Its once-small suppliers have become global players and M&M has found itself possessing a world-class supply chain. The impact on Mahindra image: o Well respected manufacturers o Technologically advanced o Suitable for city driving o Makes VALUE FOR MONEY vehicles. o Proud to own. The revenue of company increased about 37% in a year and the PBIT about 47%.Their share prices also increased .The overall positive opinion about Mahindra increased by 18% among SUV owners and 11% among all car owners. Sustainability:  Mahindra have been practicing Alternative thinking across various disciplines.  Customer relationship management  Introduction of green technology.  Brand enhancement.  Meeting global challenges of climate change
  • 45. 45  Nurturing human resources in addition to profit.  Becoming dependable neighbors. Raiding America: Mahindra is now obsessed with taking both his rugged off-roaders to global markets. This ambitious plan includes entering the most competitive auto market in the world, the US. Starting next year, M&M will ride into the US market on the back of a multi-million-dollar marketing plan and aim to entice 10,000 Americans into overlooking competition from the likes of Honda’s CRV and pay about $25,000 apiece for its Scorpios. It will mark the first time an ‘Indian’ vehicle will lock horns with the heavyweights of the auto industry in the world’s toughest arena. SUVs have advantages in safety, cargo space and power that Americans demand. The chief virtue of the automobile is the personal independence it gives the owner--a car can go anywhere roads go and some places they don't, with a speed unimaginable in the pre-automobile era. Its secondary virtue is protection--from the elements and from collision. In both a car and an SUV, passengers are protected by the vehicle's structure from the wind and rain. But in a collision, the SUV simply provides more protection than a smaller car does. Larger cars better protect the people in them-- that's why your father wanted you to get a huge, boxy old car when you were sixteen instead of a little Mustang--so that you would live through your first accident. Protection is a big advantage. Americans are not very easy customers. When Nissan wanted to enter the US market in 1958, it set itself the target of selling just 500-1,000 vehicles in the first year. It sold 83. At least one Chrysler vehicle and a Ford model have failed because they did not have enough cup holders! Goenka says the company has set itself a target of selling 10,000 vehicles in the US in 2009 — and they will all have “holders in the front and back that can hold large cups”, laughs Arun Jaura, who has just been elevated as the chief technology officer of the group. Jaura, who built the Ford Escape hybrid in Detroit, is busy rolling out hybrid vehicles for M&M now. Mahindra has not decided on the exact launch date for its SUVs in the US, but it is rumoured that the vehicles will debut by January next. America is the largest automobile market in the world with annual sales of 13 million units. It is expected that the Mahindras’ US foray would have be significant due to the growing importance of small and fuel-efficient cars among American car buyers.
  • 46. 46 Mahindra’s top selling SUV in India is the Mahindra Scorpio. This SUV is available in several versions, including single and dual cab pickup versions. The engines available on the Scorpio in India are not the smoothest running or the most powerful. But it is unlikely Mahindra would tackle the US markets with the same engines and transmissions which are adequate for India. Automotive News’ Chappell believes US consumers would be hesitant about buying an unknown vehicle made in India. “It took Americans 25 years to accept that the Japanese really knew how to build cars,’’ he says. “Even Hyundai is still trying to convince shoppers that its cars are reliable and well built.” But M&M is not a completely unknown brand in the US because the company sells tractors there. It has sold about 10,000 tractors in the US and sales are growing at about 25 per cent annually. But in reality, “the Mahindra identity is as familiar to American car buyers as aloo palak is to a cowboy”, Chappell says. Mahindra’s days studying filmmaking at Harvard gave him an understanding of the American psyche. To connect with American buyers, M&M is likely to badge its American pickups with a true-blue American name that invokes the ‘great outdoors’ — Mahindra Appalachian. Cracking America will be tougher than selling vehicles in Africa, Mahindra admits. So he’s roped in a partner who knows how to fight tough battles. John Perez, the auto maverick who owns Global Vehicles and has brought a variety of autos from around the world to the US, will be the importer for Scorpios in the US. Perez has already declared that he hopes to sell about 45,000 Scorpios in 2009, which would give M&M revenues of $1 billion in the US alone. To achieve this, Perez says, he will sign on 300 Scorpio dealers. That makes the math of his challenge appear easy — each of the 300 dealers will only need to sell three vehicles per week to give Perez and Mahindra sales of 45,000 Scorpios. If true, M&M would become the first Indian auto company to launch passenger vehicles in the US under its won brand. The company already assembles and markets tractors in the US under its own label.M&M has appointed Global Vehicles USA as its distributor in US, according to the report. The distributor is currently scouting for dealers across key states. Global Vehicles is also the distributor of Mahindra tractors. The fact that M&M is planning a US entry indicates that the next upgrade for the Scorpio would have substantial improvements in terms of engine and transmission, safety features and handling. M&M is reportedly working on an upgraded engine for the Scorpio, which would be launched some time next year.
  • 47. 47 M&M is understood to be working on a major design makeover for the Scorpio. The model has not seen a major upgrade, except for the recent cosmetic uplift, since launch many years back.M&M is also talking to a couple of assemblers in Ohio and other states to assemble knocked- down kits of their vehicles. Though this would raise costs, the company would net two benefits. It would sidestep the 25 per cent ‘chicken tax’ levied on imports. More importantly, local assembly would help overcome the average American’s resistance to foreign brands, lesson German and Japanese automakers have learned. Also United States has the stringent emission norms in the world, infact all the major manufacturers of diesel passenger vehicles except Mercedes-Benz have withdrawn from the United States market because of difficulties in meeting stricter standards for the 2007 model year. Mahindra & Mahindra hopes by producing fuel efficient, T2B5 emission compliable vehicles with a low price point it can attract buyers for its Scorpio and other pick-ups. Another interesting take Mahindra would have for the US market is that its SUVs are fuel efficient. For one, the Scorpios they would export would be diesel, and they are not as big, or as powerful as any of the run of the mill SUVs in the US. So, the strategy would be to sell them as fuel efficient vehicles. With the new 2.2L engine and 6-speed automatic transmission Mahindra will claim 39mpg(miles-per-gallon) as its fuel efficiency for the Scorpio. M&M will also spend $50 million (Rs 200 crore) to upgrade the Scorpio for the US market as the Indian version will not meet safety norms or customer needs. For one, the company is working on Project W408, which is fitting the Scorpio with a reconfigured version of the powerful mHawk engine, a second-generation 2.2-litre common-rail system M&M developed entirely in India. This is important as Mahindra expects the Scorpio’s fuel-efficient and low-emission engine to win over customers who feel guilty about driving gas-guzzling automobiles, yet want the size and performance of an SUV. “Fuel efficiency is more of an issue than it’s been in the past,’’ says Rebecca Lindland, research director of automotive group at Global Insight, an independent research firm. “But it’s not the only issue, nor is price. Consumers still monitor safety ratings, reliability, comfort and convenience even more than gas mileage.” They would offer US consumers multiple Scorpio variants — a single-cab pick-up, a double-cab pick-up and the full-size SUV. Each will “have new seats, a new four-channel ABS, dual-stage airbags, lots of electronics and everything will be T2B5 compliant”, he says. T2B5 or Tier 2 Bin 5, is the American emissions standard that automobiles have to follow. Perez has said all vehicles
  • 48. 48 would come with a four-year, 60,000-km warranty. On paper, all this would give M&M a credible position in the mid-size SUV market where the company wants to position itself as a value-for- money alternative. But it will take a lot more to actually get US consumers to want to have a vehicle wearing the M&M badge parked in their driveways, next to their neighbours’ Toyotas and Fords. Apart from the automatic transmission, the American Scorpio will have the fully loaded and will be all the necessary features of international standard High- end features includes a four-channel anti-lock brake systems (ABS), occupants safety system, new lumber seats and air bags, four- wheel drive with electronic shift and a electronic vehicle stability system to be introduced in the Scorpio’s US variant. Mahindra is also developing a new communication and navigation system for the SUV, to be fully customized for the US. These equipments will make Scorpio to meet stringent safety norms and satisfy the more demanding American customer.Besides these emission standards, the vehicle has to comply with the Federal Motor Vehicle Safety Standards (FMVSS). According to the National Highway Traffic Safety Administration Web site ( www.nhtsa.dot.gov), these would include 29 standards on ‘Crash Avoidance’ like standards for rear view mirror, control and displays, theft protection, etc; ‘Crash Worthiness’ standards (16) for occupant crash protection, seat belt assemblies, roof crush resistance etc; ‘Post Crash’ standards like fuel system integrity, flammability of interior materials, etc. There are other regulations that govern FMVSS like manufacturer identification, vehicle identification number, etc.The FMVSS standard is a self-certification process and therefore the onus is on the original equipment manufacturer to comply with them, said Dr Jaura.These standards just make the car viable to sell in the market, but in order to meet market demands and make it a lucrative proposition in the world’s most competitive market, the company has identified diesel-run vehicles (backed with 4-year, 60,000 mile warranty) as their forte in the gasoline driven SUV and light truck market. However, the company has to undergo various modifications to its present generation of Scorpio models. Curiously, the largest financial risk M&M could face in the US is litigation and recalls. American safety laws are demanding and even small faults can result in high-cost product recalls. P.N. Shah says the company is aware of the complexities of the market and is prepared for it. M&M’s SUVs would face stiff competition from Toyota’s RAV4 and Honda’s CR-V. Competition, but this would be especially aggressive in this recession year, when cars sales are
  • 49. 49 expected to fall 6 per cent, according to US analysts.As in Africa, it is M&M’s US dealers who will hold the key to the company’s success. “If dealers feel they are being rewarded by selling a car, they will overcome great obstacles to continue selling it.”Mahindra wants his vehicles to compete with the best because he believes it would help the company improve its abilities and class. Having to cater to the most demanding customers automatically raises the bar. It would force M&M to become truly global, a process that began when the engine of the first Scorpio turned over.In many ways, the US entry will also be the champion vehicle’s last lap. Though M&M is counting on its trailblazing Scorpio to lead the way into the US, it is also preparing for life after the ageing winner. The company is spending Rs 500 crore-600 crore to develop a monocoque SUV for the US market. Codenamed W201, the vehicle will be powered by the mHawk engine, albeit in a completely redesigned and reconfigured form. It will hit the US market in the next couple of years. Marketing and target audience: Mahindra is targeting a niche market, price conscious (prices at the pump too) and “green” customers. Also, people who have bought Mahindra tractors and Indians in the U.S. According to Business week Mahindra and Mahindra will follow a unconventional marketing campaign for the U.S. market. “It will spend only about $20 million on marketing in 2009, less than 10% of what Toyota spent to launch the Tundra pickup. Almost none of this money is expected to be devoted to television or glossy print ads. Instead, it will purchase carefully selected search terms and banner ads on Web sites popular with its target consumers. These links will steer potential buyers to detailed information about Mahindra’s trucks.” Unlike Chinese manufacturers which settled impossible targets but even failed to make an off the mark. Mahindra has set modest goals for its first few years. “Half of the global sales in S.U.V.’s and pickups is in the United States and we want to capture at least a fraction of that to start with,” said Pawan Goenka, president of the automotive division of Mahindra & Mahindra. Mahindra is planning to sell just 18,000 of scorpios in the 2nd six months of 2009, followed by 45,000 in 2010. While many Indian companies make the mistake of falling in love with their products while shying away from investing in ‘soft’ elements such as advertising, Mahindra will spend as much — Rs 200 crore ($50 million) — on promoting his US vehicle as he will spend on developing it. Global
  • 50. 50 Vehicles has hired the iconoclastic advertising firm Strawberry Frog to position its vehicles. “Our objective is to launch a car in the US in a way that has never been done before,’’ Scott Goodson, founder and chief executive of Strawberry Frog told the media on the sidelines of Goafest, an international advertising conference. “We are going to launch it in a way that people are going to say ‘Holy wow! That is cool!’ Price and the strategy: Mahindra will ship its SUV as a CBU from India, but the pickup trucks will be assembled there. They will be assembled at one of three plant sites Global is scouting in the Southeast. Though it will be CBU Mahindra will price the Scorpio SUV and the pick-ups aggressively. Mahindra’s 2- door single-cab pickup truck will be offered in the low $20,000 range and its 4-door truck and 5- door SUV, which seats seven, will be in the mid-$20,000 range. A high-end version of the 4-door truck will be in the high $20,000 range. It also uses a penetrating pricing scheme in order to discourage competition and attract many customers.These prices are very competitive when other fully loaded SUV prices are hovering in the range of $40,000 - $50000. All the vehicles will have bumper to bumper warranty for 60000miles / 4years. Similar to hard core Indian bike enthusiast who are very much associated with Royal Enfield, Americans are extremely loyal to their SUV makers. When Toyota and Honda entered the American market they faced stiff opposition. They employed lot of Americans and invested a lot in America. Intact, they projected them as American producers and circumvent the natural opposition to foreign makers from the American patriotism. Mahindra & Mahindra has to follow its forerunners if it wishes to be serious player in the American market. Also, many of the yardsticks are different unlike Indian customers who are price conscious, American customers cannot be lured only by the low price point. They look for the quality, quality problems will keep the customer off the product and poor quality even can destroy the brand. Earlier Hyundai and nowadays even the mighty Toyota is facing lot of problems in the quality front. Also, unlike other international manufacturers Mahindra do not have multiple products for United States (at least as of now) it has to solely depend on its Scorpio. Hence Mahindra has to work hard to keep the number of defects to a minimum before it launches the first Indian product in America. Mahindra wants to be the next Land Rover.
  • 51. 51 Finally, Mahindra has effectively planned for its US entry concentrating on all the elements needed for its global launch.It has done a lot of market research on its entry in US and also upgraded the Scorpio as needed by the American customers it will definitely prove to be successful in the US market.
  • 52. 52 OBJECTIVES OF THE STUDY The study has been under taken to analyze the marketing strategy towards all variant of Mahindra SCORPIO in Dehradun with a special reference to the M&M motors, the other objectives are: ➢ To gather information about Marketing Strategy toward Scorpio in the geographic region of Dehradun ➢ To know the customer perception about features, low maintenance cost and looks of Scorpio. ➢ To know the customer satisfaction about the safety and comfort provided by Scorpio. ➢ To provide suggestions, in improving the marketing strategies and the company sales and profitability . ➢ To know the marketing strategy towards the after sales service offers by M&M.
  • 53. 53 RESEARCH METHODOLOGY ResearchMethodology A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question. INTRODUCTION This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results. RESEARCH DESIGN I propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. The various tasks that I have undertaken in the research design process are : ❑ Defining the information need ❑ Design the exploratory, descriptive and causal research. RESEARCH PROCESS The research process has four distinct yet interrelated steps for research analysis
  • 54. 54 It has a logical and hierarchical ordering: ✓ Determination of information research problem. ✓ Development of appropriate research design. ✓ Execution of research design. ✓ Communication of results. Each step is viewed as a separate process that includes a combination of task , step and specific procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing. EXPLORATORY RESEARCH The method I used for exploratory research was ❑ Primary Data ❑ Secondary data PRIMARY DATA New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research, Consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observations and test results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data, which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. Primary data is basically collected by getting questionnaire filled by the respondents. SECONDARY DATA Information that already exists somewhere, having been collected for another purpose. Sources include census reports, trade publications, and subscription services. There are two types of
  • 55. 55 secondary data: internal and external secondary data. Information compiled inside or outside the organization for some purpose other than the current investigation Researching information, which has already been published? Market information compiled for purposes other than the current research effort; it can be internal data, such as existing sales-tracking information, or it can be research conducted by someone else, such as a market research company or the U.S. government. Secondary source of data used consists of books and websites My proposal is to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. DESCRIPTIVE RESEARCH STEPS in the descriptive research: Statement of the problem ➢ Identification of information needed to solve the problem ➢ Selection or development of instruments for gathering the information ➢ Identification of target population and determination of sampling Plan. ➢ Design of procedure for information collection ➢ Collection of information ➢ Analysis of information ➢ Generalizations and/or predictions DATA COLLECTION Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time
  • 56. 56 and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 mins. These questionnaires were personally administered. The first hand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. The respondents were contacted at shopping malls, markets, places that were near to showrooms of the consumer durable products etc. The data was collected by interacting with 200 respondents who filled the questionnaires and gave me the required necessary information. The respondents consisted of housewives, students, businessmen, professionals etc. the required information was collected by directly interacting with these respondents. DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE TARGET POPULATION It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will be either all or a subset of potential users, such as adolescents, women, rural residents, or the residents of a particular geographic area. Topic areas: Governance, Accountability and Evaluation, Operations Management and Leadership. A population to be reached through some action or intervention; may refer to groups with specific demographic or geographic characteristics. The group of people you are trying to reach with a particular strategy or activity. The target population is the population I want to make conclude an ideal situation; the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough Simple random Sampling SAMPLE SIZE: This involves figuring out how many samples one need.
  • 57. 57 The numbers of samples you need are affected by the following factors:  Project goals  How you plan to analyze your data  How variable your data are or are likely to be  How precisely you want to measure change or trend  The number of years over which you want to detect a trend  How many times a year you will sample each point  How much money and manpower you have SAMPLE SIZE I have targeted 150people in the age group above 21 years for the purpose of the research. The target population influences the sample size. The target population represents the Dehradun regions. . The people were from different professional backgrounds. The details of our sample are explained in chapter named primary research where the divisions are explained in demographics section. ERRORS IN THE STUDY Interviewer error There is interviewer bias in the questionnaire method. Open-ended questions can be biased by the interviewer’s views or probing, as interviewers are guiding the respondent while the questionnaire is being filled out. The attitudes the interviewer revels to the respondent during the interview can greatly affect their level of interest and willingness to answer openly. As interviewers, probing and clarifications maximize respondent understanding and yield complete answers, these advantages are offset by the problems of prestige seeking, social desirability and courtesy biases.
  • 58. 58 Questionnaire error The questionnaire designing has to careful so that only required data is concisely reveled and there is no redundant data generated. The questions have to be worded carefully so that the questions are not loaded and does not lead to a bias in the respondents mind Respondent error The respondents selected to be interviewed were not always available and willing to co operate also in most cases the respondents were found to not have the knowledge, opinion, attitudes or facts required additionally uninformed response errors and response styles also led to survey error. Sampling error We have taken the sample size of 150, which cannot determine the buying behavior of the total population. The sample has been drawn from only National Capital Region. Research Design Research design is a conceptual structure within which research was conducted. A research design is the detailed blueprint used to guide a research study towards its objective. It is a series of advanced decision taken together comprising a master plan or a model for conducting the research in consonance with the research objectives. Research design is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximum information with the minimum effort, time and money. Scope and the Limitation of the study ➢ The scope of study is limited to the respondents are selected from in and around Dehradun, U.k
  • 59. 59 . ➢ The project is carried out for the period of 45 days only. ➢ Measurement of Marketing strategies is complex subjects, which uses non-objectives method, which is not reliable. ➢ The sample unit was also 150 respondents. ➢ However, Mahindra and Mahindra Automobile showrooms are located in other places i.e. locally and even in the neighboring states. Only opinion of respondents of Dehradun city was consider for finding out the opinions of respondents.
  • 61. 61 DATA ANALYSIS & INTERPRETATION Satisfied Dissatisfied 78% 22% Table No. 1 Marketing Strategy towards Mahindra Scorpio Source: Questionnaire Figure:1 Interpretation 1: The sample drawn on probability basis shows that 78% of the customers were satisfied with Scorpio variant and only 22% were not satisfied with Scorpio variant. Observation: Most of the respondents approached were satisfied with Scorpio Table No: 2 Factors affecting marketing strategy towards Scorpio 78 22 satisfied dissatisfied
  • 62. 62 Factor No. of Respondent Percentage Features 18 12% Low Maintenance 51 34% Comfort 27 18% Style 24 16% After Sales Service 30 20% Source: Questionnaire Figure:2 Interpretation 2: The sample drawn on the probability basis clearly shows that 34% (51respondents) are the opinion that low maintenance is the satisfaction factor Scorpio and 20 %( 30 respondents) of them who view After Sales Service as a vital factor for customer satisfaction. Followed by Comfort which corresponds to 18 %( 27 respondents), Style with 16%(respondents) and only 12%(18 respondents) of them view that feature of Bolero as satisfaction factor. Observation: Majority of the respondent are of the idea that low maintenance of the top most feature contributing to customer satisfaction followed by after sales services comfort style and features 12 34 18 16 20 Features low maintenance comfort style after sales service
  • 63. 63 As such, Mahindra should focus on the aspects, which will enhance the customer satisfaction and thus the market share Table No: 3 Customer opinions towards fuel consumption. Factor Percentage Extremely Satisfied 27% Satisfied 49% Neutral 17% Dissatisfied 7% Total 100% Source: Questionnaire Figure: 3 Interpretation 3: 100% of the respondents 49% of the respondents approached were satisfied with the fuel consumption of the Scorpio. Followed by 27% was extremely satisfied, 17% are neutral and rest of the 7% is more dissatisfied with fuel consumption of Scorpio. Observation: As majority of the respondents are satisfied with the fuel consumption of Mahindra Scorpio, the company should maintain the same standard and it is suggested to come up with 27% 49% 17% 7% Consumer Opinions toward Fuel Consumption More Satisfied Satisfied Not Satisfied & Dissatisfied Dissatisfied
  • 64. 64 suitable measure to reduce the negative opinion among the consumer who are of the opinion that the fuel consumption is a dissatisfying factor. Table No: 4 Customer opinions toward Safety and Comfort. Factor Percentage Extremely Satisfied 23% Satisfied 47% Neither Satisfied & Dissatisfied 20% Dissatisfied 10% Total 100% Source: Questionnaire Figure: 4 Interpretation 4: 100% of the respondents 47% of the respondents approached were satisfied with the safety and comfort feature of the Scorpio. Followed by 27% was extremely satisfied, 17% are neutral and rest of the 7% was dissatisfied with safety and comfort feature of Scorpio. Observation: As majority of the respondents are satisfied with the safety and comfort feature of Mahindra Scorpio, the company should maintain the same standard and it is suggested to come up 23% 47% 20% 10% Customer Opinions toward Safety and Comfort Extremely Satisfied Satisfied Neutral Dissatisfied
  • 65. 65 with suitable measure to reduce the negative opinion among the consumer who are of the opinion that the fuel consumption is a dissatisfying factor. Table No: 5 Customer opinions toward Design. Factor Percentage Extremely Satisfied 20% Satisfied 40% Neutral 27% Dissatisfied 13% Total 100% Source: Questionnaire Figure: 5 Interpretation 5: 100% of respondents 40% of the respondents approached were satisfied with the Design of the Scorpio. 20% were more satisfied, 27% of them neutral and 13% are dissatisfied with the design of the Scorpio. Observation: As majority of the respondents are satisfied with the design of Mahindra Scorpio, the company should maintain the same standard and it is suggested to come up with suitable measure to reduce the negative opinion among the consumer who are of the opinion that the fuel consumption is a dissatisfying factor. 20% 40% 27% 13% Customer Opinions Toward Design Extremely Satisfied Satisfied Neutral Dissatisfied
  • 66. 66 Table No: 6 Customer opinions toward space availability in Mahindra Bolero. Factor Percentage More Satisfied 27% Satisfied 53% Neither Satisfied & Dissatisfied 17% Dissatisfied 3% Total 100% Source: Questionnaire Figure: 6 Interpretation 6: The sample drawn on the probability basis shows that out of 100% of respondents 53% of the respondents approached were satisfied with the space availability of the Scorpio. 27% were more satisfied, 17% of neither satisfied and dissatisfied and 3% are dissatisfied with the space availability of the Scorpio. Observation: As 80% of the respondents are happy with the space availability of the Mahindra Bolero vehicle, it can be conducted that the company has undertaken proper R&D in this aspect. 27% 53% 17% 3% Customer Opinions Toward Space Availability Extremely Satisfied Satisfied Neutral Dissatisfied
  • 67. 67 The 20% of the respondents who have answered negatively may be comparing with the vehicle in the same category launched very recently. Table No: 7 Marketing Strategy toward Maintenance of Mahindra Bolero. Factor Percentage Extremely Satisfied 23% Satisfied 51% Neutral 21% Dissatisfied 5% Total 100% Source: Questionnaire Figure:7 Interpretation 7: The sample drawn on the probability basis shows that out of 100% of respondents 51% of the respondents approached were satisfied with the maintenance of the Scorpio. 23% were extremely satisfied, 21% of neutral and 5% are dissatisfied with the maintenance. 23% 51% 21% 5% Marketing Opinions Toward Maintenance Extremely Satisfied Satisfied Neutral Dissatisfied
  • 68. 68 Observation: Though majority of the customer are satisfied that the maintenance cost of Mahindra Scorpio is less, around 20% are not satisfied which may be because of comparison of Scorpio with the newly launched competing brands coming with even lower maintenance cost. Table No: 8 Customer awareness about power steering. Option No. Of Respondent No. Of Respondents (%) Aware 120 80% Unaware 30 20% Total 150 100% Source: Questionnaire Figure: 8 Interpretation 8: Out of 100% of respondents, 80% of the respondents approached were aware of the power steering present in some variant of Scorpio and 20% were not aware of the power steering present in some variant of Scorpio. 80% 20% Customer Awareness About Power Steering Aware Unaware
  • 69. 69 Observation: Most of the respondents approached were aware of power steering system introduced in some variants of Scorpio. Table No: 9 Customer perceptions about Scorpio Very Good Good Average Bad Very Bad 20% 47% 21% 12% - Source: Questionnaire Figure: 9 Interpretation 9: The sample drawn on the probability basis shows that out of 100% of respondents 47% of the respondents gave Good response to Scorpio. 20% gave Very Good response, 21% gave Average response and 12% gave bad response to Scorpio. Observation: As 67% of the respondents are satisfied that they are happy with Scorpio, it satisfies that the customer satisfaction levels are very high. If the company were to identify the pitfalls in their product and undertake remedial measure, thus it will lead to more good word of mouth publicity. 20% 47% 21% 12% Customer Perception About Scorpio Very Good Good Average Bad
  • 71. 71 FINDINGS Based on the data gathered by administrating schedules to customers the following observations are made. 1. Mahindra Scorpio has excellent percentage of customer satisfaction according to the data shown in table 1 of the data analysis and Interpretation topic. 2. Most of the people are satisfied with its low maintenance cost and after sales service provided by Mahindra Scopio. 3. Based on the fuel consumption, most of the people are satisfied with it. 4. Based on Safety and Comfort, Design, Space, Maintenance most of the people are satisfied with it. 5. Large numbers of Scorpio user are aware of its power steering. 6. If we took the satisfaction level of people toward Scorpio, it becomes good. 7. Its features and style satisfy most of the people.
  • 73. 73 Recommendation Mahindra Company has to implement good customer relationship management strategy that enhances Marketing Strategies level. The companycan for the undertake R&Dto improve the existing feature which field help increase in the Marketing Strategies. The company should promote about the entire feature offered by it. As majority ofthe customer give opinion that they are satisfied is the factor, services and design ofthe product ofthecompany should taken not only maintain the existing standard but also enhance them.
  • 75. 75 CONCLUSIONS Mahindra Scorpio has a very good market share in the state of U.k. for the SUV segment. The company is offering good services, which is reflected on the satisfaction of the customer. Majority of the customer are satisfied with the design of the vehicle.
  • 77. 77 Bibliography ➢ Philip Kotler 12th edition Marketing Management ➢ www.mahindrascorpio.co.in ➢ www.automobile.com ➢ Data from Mahindra and Mahindra Dehradun premier motors dealer from Dehradun city.
  • 79. 79 QUESTIONNAIRE 1) Customer profile 1. Name 2. Occupationc 3. Age 4. Income 5. Address:- 1) Are you a satisfied with Mahindra Scorpio? a. Yes b. No 2) If “Yes” Which factor you consider is satisfies you most? a. Feature b. Low Maintenance c. Looks d. After Sales Service 3) Are you satisfy with the fuel consumption of Scorpio? a. Extremely Satisfied b. Satisfied c. Neutral d. Dissatisfied 4) Are you satisfied with the Safety and Comfort of ? a. Extremely Satisfied b. Satisfied c. Neutral d. Dissatisfied 5) Are you satisfied with the Design? a. Extremely Satisfied b. Satisfied
  • 80. 80 c. Neutral d. Dissatisfied 6) Are you satisfied with space available in Scorpio? a. Extremely Satisfied b. Satisfied c. Nor Satisfied & Dissatisfied d. Dissatisfied 7) Are you satisfied with Maintenance cost? a. Extremely Satisfied b. Satisfied c. Neutral d. Dissatisfied 8) Are you aware about power steering present in Scorpio? a. Yes b. No 9) Your general perception about Scorpio. a. Very Good b. Good c. Average d. Bad 10) Do you want to give any suggestion about any change in the Scorpio?