The document discusses Mahindra & Mahindra, a major Indian automobile company, and its launch of the new Scorpio vehicle. It aimed to create a new market segment and differentiate its offering by providing excellent value to customers. Facing competition from international brands, it saw potential in the growing urban market and consumer demand for luxury SUVs. The Scorpio was developed using an integrated design process to address Mahindra's lack of modern, urban-focused vehicles and capture this emerging opportunity.

1. Presented by:
Dr. Gaveshna
Dr. Manpreet
Dr. pallavi
Shivani goel
Rahul Raj
Tarun kumar arora

2. Introduction:Mahindra and Mahindra
 A major automobile company in India
 Flagship company of Mahindra group

3. The Mahindra Group is a $ 4.5 billion *
conglomerate is a leading manufacturer of
multi-utility vehicles with significant presence in
key sectors like farm
equipments, infrastructures, information
technology and financial services.
The Group has leading presence in many key
sectors:-
1)Automotive (Mahindra& Mahindra LTD.)
2)Farm equipment (Mahindra Tractors)

4. 3) Mahindra trade and Financial Services (Mahindra Inter
trade Mahindra &Mahindra Financial Services Ltd
4) Mahindra Systems and Automotive Technologies
(Mahindra Engineering Services, Mahindra Ugine )
5) Information Technology (Tech Mahindra,
Bristlecone) and Infrastructure Development
(Mahindra GESCO, Club Mahindra Holidays,
Mahindra World City).

5. Is Scorpio a new product or an
example of line extension?

6.  Product line – A group of products
within a product class that are closely
related because they :
• Perform a similar function
• Are sold to the same customer groups
• Are marketed through the same outlets
or channels
• Fall within given price ranges

7. Product development- two types
 New products range from new-to-the-world
products that create an entirely new market
at one end, to
 minor improvements or revisions of existing
product at the other.

8. Yes ,SCORPIO is a new product
development.
 As before the launch of Scorpio, Mahindra &
Mahindra image was a big barrier.
 It only covers semi-urban and rural markets
in India.
 In 1990‟s the company was experiencing
loss of share.

9. Objectives of this new
product development
 To create a new segment and retain
market domination
 To differentiate offering i.e. to provide an
excellent value proposition to the
customer
 To become a significant global player in
the chosen product category
 To optimize project cost

10. Deriving forces which leads
to the new product
development
 India enjoys a distinct cost advantage
with respect to auto-ancillary
manufacturing capabilities.(Indian labor
cost is only around 8-9% of sales)
 MUV as a % of the overall passenger
car market was just 16% in 2001.
 Consumers want to consume premium
imagery at prices affordable to them.

11.  Untapped niche: Mahindra was lacking
in products that catered to the modern
urban consumer needs.
 The market was moving from traditional
multi utility ,non-luxurious vehicles to
luxurious vehicles.

12. To achieve these purposes, the
company started the product
development process termed IDAM-
Integrated Design And Manufacturing.

13.  The company „Mahindra &Mahindra‟
launched the new vehicle successfully in
2002 under the brand name..
SCORPIO

14. Urban market was showing more potential
for vehicle sales and UVs were gaining
higher acceptability in urban areas
International UVs were entering the
market and competition was getting tougher
The market was moving from traditional
multi utility , non luxurious vehicles to
luxurious vehicle …….

15. From consumer perspective
 customer preferred big size as its
stands for status .
 Consumer seeks latest technology
 Customer wants the sheer thrill and
passion of driving an SUV but at
affordable price

16. From context of Mahindra
 Mahindra (in late 1990s) a leader in UV
segment was losing their market share .
 Global player were entering in the
market and aggressively launching
products
 Mahindra share of business was largely
from semi urban and rural market of
India

17.  Mahindra sales come from institutional
sales army , police , military groups
 They had wide product port folio but
was lacking in product that catered to
modern urban consumer needs
 The market where Mahindra was strong
were stagnating …..

18. Mahindra image………..
 Mahindra image was a big barrier there
brand were not seen as modern and
technological advance .
 there image was uncomfortable , rough
, not easy to drive ,

19. So management decided to launch
scorpio with a following objectives
 to create a new segment and retain market
domination .
 To differentiate offering that is to provide an
excellent value proposition to customer .
 To optimize project cost .

20.  There was no SUV in the country that
the masses could buy .
 So based on consumer research
Mahindra found to make SUV‟s a mass
concept in India seen as comfortable
, easy to drive , and imaginary
comparable to international brand.

21.  So to make Mahindra and Mahindra
known world wide for the quality
, durability , and reliability , of its product
and services and to dominate in the
niche UV market they decided to launch
scorpio .

22. POSTIONING OF
SCORPIO
 Scorpio as a powerful vehicle with a
sporty look among the premium car
consumers
 Luxury of car , thrill of SUV
 Make good quality vehicles
 Create to drive
 Proud to own

23. RATIONAL BENEFITS – world class vehicle ,good looks
, car like comfort , great value
VALUE BENEFITS – ownership experience of
thrill, excitement ,power relational benefits
RELATIONAL BENEFITS – young , modern , premium
,city companion/extension of lifestyle
BRAND PROMISE – luxury of a car , thrill of an SUV

24. Advertising and promotion strategy
 “Nothing else will do”
 Scorpion king
 Media coverage on IDAM approach
, people behind Scorpio world class
technology etc

25. CREATE SOCIAL
RESPONSIBILITY
SCORPIO EVENTS

29. 2002:Scorpio STD
and DX:

30. 2003:The new scorpio

31. 2004:Scorpio Slx

32. 2005:Scorpio Crde

33. 2006:43 new features

34. 2007:VLX

35. 2007:LX

36. 2008:Scorpio automatic

37. 2009:The new ICONIC Scorpio

38. 201O Mahindra interior

39. 2011 SCORPIO LX 4×4

40. ANOTHER AUTOMOBILE
COMPANY THAT COULD
LEARN FROM “PROJECT
SCORPIO

41. CHALLENGES FACED BY “PROJECT
SCORPIO”
 Positive but unfavorable brand
Image .
 Negative parameters
* Uncomfortable and rough.
* Not easy to drive and
* Rural imagery.

42. STRATEGIES ADOPTED
 Proper market research
 ADOPTED UNIQUE PROCESS i.e.
IDAM
 Strong positioning
 Competitive price advantage .

43. AUTOMOBILE COMPANY THAT COULD
LEARN FROM “PROJECT SCORPIO” IS
MARUTI SUZUKI

44. WHY MARUTI SUZUKI ??
 Both Mahindra & Mahindra and Maruti
Suzuki have positive brand image but
unfavorable to cater luxury segment.
 Like “Project Scorpio” Maruti Suzuki can
stretch upward by introducing new product
line i.e. SUV‟s.
 Innovation in terms of technology .
 Educating customer about novel concept of
their SUV‟s by choosing right media mix
and promotion activities.

45. CURRENT STATUS

47. Domestic Market Share for 2010-
11
 Passenger Vehicles 16.25
 Commercial Vehicles 4.36
 Three Wheelers 3.39
 Two Wheelers 76.00