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Case study analysis: ‘SCORPIO’ from Mahindra
Developing Brand Identity
Company Analysis
Mahindra& Mahindra (M&M) was established in 1945. It was converted into a
public limited company in 1948. Manufacturing activities started in 1954 in
collaboration with Willy’s Overland Corporation. Production of Light commercial
Vehicles (LCV) started in 1965. Four Manufacturing Plants: 3 in Maharashtra
(Mumbai, Nasik, Igatpuri), 1 in Andhra Pradesh.
It acquired International Tractor Company of India in 1977.
Tractor Brand Mahindra was established in 1982 Under the flagship company,
there were two main sectors:
1) Automotive sector (utility vehicles, LCV’s, three wheelers)
2) The farm equipment Sector (Tractors and other farm implements)
The net worth of the company in 2003 was Rs.15.7 billion
Rationalizing Brand portfolio Pre-Case study scenario:
• Mahindra was in jeep production – first utility vehicle. It imported
and assembled willy’s jeep.
• It also manufactured three wheelers – pickup, goods carrier and
produced hard top and soft top three wheelers. Currently Mahindra
has the ‘Mahindra Champion’ and the ‘Mahindra Alfa’ in its three
wheeler segment.
• Hence it focused primarily on the rural areas. So when it decided to
enter the city market, it rationalized its brand portfolio which is
specified below.
• Redesigning existing Brand ARMADA to Mahindra Bolero in Aug
2000 by changing aesthetics, physical features and creature
comforts, thus entering city market.Brand promise: ‘luxurious
toughness’Emotional Benefit: ‘break free
• Marshal launched as MaXX offering more space (stage carriage
vehicles, economic contract carriage, pick up vehicles).
• Invader was launched next which targeted at the young rich,
especially in rural areas priced at 0.38 million.
• Camper was also launched which was a Multi utility
vehicle(MUV) priced at 0.4 million.
• These realignments were highly appreciated by the targeted
audiences and had high recall. As is evident from the adjoining
graph, the fact that Bolero resulted in achieving a high opinion
even though it was a new rollout points to the fact that M&M
was successful in its portfolio restructuring.
• Mahindra and Mahindra(M&M) launched their new sports utility vehicle
“Scorpio” in Aug, 2002. During the first year, 12000 vehicles were sold,
which rose to 24000 in the next year. In 2003, Scorpio was rated as the
most successful new brand in the country.
• Project ‘Scorpio’ Objective:
• World class, zero defect, trouble free product. Brand element: Likeability
feature (Scorpio), which signified stinging the competition with a superior
market offer.
• Tagline: Nothing else will do Product development process was
termed as IDAM (Integrated design and manufacturing). The
multifunctional project team consisted of people from different
functional departments such as design and development, testing and
validation, marketing, manufacturing, and supplier development, etc. The
project group was further divided into 19cross-functional teams which
ensured quick decisions with built in checks and balances.
Brand positioning
• Market dynamics: The Indian automotive market was
showing a shift towards the trend of ‘poaching’ of C-
class or luxury segments by the evolving UV segments.
• Also the semi luxurious car segment (B) was rapidly
growing at the rate of 43% in 2001 and the luxury car
segment was maintaining a growth of about 14%.
Category A declined from 55% in 1999 to about 34% in
2001.
• Hence, if the new vehicle appealed to Category C and
category B buyers, then it would result in higher sales
Promise of the brand: ‘LUXURY OF A CAR. THRILL OF AN SUV’
Pricing decisions: Base version: 0.55 million
Fully Loaded version: 0.6 million (lesser than leading SUV by
75,000)
Brand identity
Retailing and service experience:
150 dealer showrooms, but in rural and semi urban areas.
No ‘up market’ appearance.
Sales and service processes which were followed were largely
functional.
Hence, it was decided to ‘Redesign and revamp the dealer
network’:
a) Uniform customer experience across all touch points.
b) professional inputs of a reputed architect.
c) imageries of movement, technology and ‘sportiness’.
d) Showroom design: Reception area, Display area, customer
discussion room, lounge.
e) Exclusive sales people: appropriate manners, pleasing
appearance, adequate sophistication.
2 phase launch:
First Phase: main metro cities
Second Phase: another 20 cities – in 4 months
• 50 towns – in a year
Brand building initiatives for multiple
audiences:
• Targeted audiences: Male, Female, Young, Families
• Male:
• a) Sportiness in showrooms
• b) Technology and urban touch
• c) Thrill of an SUV
• Female:
• a) Comfortability
• b) Ads depicted woman driving the car
• c) Spacious and luxurious
• d) Positioning around ‘Car’
• Young:
• a) Sportiness and technology oriented
• b) Thrill of an SUV, dominance
• c) National Campaign and Targeted coverage
• Families:
• a) Safety, reliability and trust in ‘Mahindra’
• b) Customer relationship management
• c) Comfortability and spacious for the family
Communication Strategy:
• The responsibility for planning and executing communication strategy was
entrusted to
• Interface Communications, a reputed advertisement and communication
strategy situated near
• the main manufacturing facility and hence promised better coordination.
• The strategy adopted the positioning along the theme – “Luxury of a car,
thrill of an SUV”.
• The advertisement specifications for television and print medium:
First objective: Dual advantages of luxury and thrill of SUV.
Second objective: premium imagery of SUV in the city context.
Third objective: Hero has to be the product.
Fourth objective: Similar look and feel across tv ads and print mediums.
Television: emotional benefits, international imagery
Print medium: functional benefits
The Scorpio launch advertisements were aired on August 15, the
independence day of India
so as to have a positive rub off of patriotism and Indianness and also it
was a national holiday
so increased visibility.
• Safe driving campaign:
• In order to promote safe driving, 17 Indian automotive journalists drove
Scorpio across 29
• states in India travelling a distance of nearly 15,000 kilometres.
• Scorpio Speedster:
• The company, in association with ESPN and Timex, sponsored the
‘Scorpio speedster’
• competition for identifying the fastest Indian cricket bowler
Customer relationship management:
• Objective: to build a customer database and use it for
favorable word of mouth publicity and provide superior
customer experience. Subsequently, to increase the
lifetime value for the customers.
• Buyers had to fill a detailed form to become member of
‘Top Gear Club’ – response rate (45%).
• To improve the response rate, the company tied up with
KC Mahindra trust that does charitable work‘Nanhi Kali’
for the education of poor girls. It donated Rs.50 for every
‘Top Gear club’ form fill up (75% response rate).
Relationship Management program:
2 calls – 7 days from purchase; 30 days from
purchase
Special offers (Twice a year)
2 newsletters annually
Birthday and anniversary cards for buyers
Future Initiatives
•a) Brand Community: Building a brand
community of the buyers of Scorpio
encouraging them to go on cavalcades
throughout the country on every anniversary of
Scorpio or special national events to build a
loyal customer base.
•For eg, On the first anniversary of the scorpio
launch, a cavalcade from Kandiveli to Nasik,
actively participated in by 75 customers was
organized.
•b) Brand revitalization: Making it more youth
centric and adventurous. The launch of
TUV300 in September 2015 is a big step at
making the SUV nimbler, shorter and stiffer.
•Focusing on the adventure and off-roading
capabilities of the product. In the ‘static and
drive’ clinic, it was found that the younger age
group showed a propensity to pay a higher
price for the vehicle than the older age group

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scorpio case study.pptx

  • 1.
  • 2. Case study analysis: ‘SCORPIO’ from Mahindra Developing Brand Identity Company Analysis Mahindra& Mahindra (M&M) was established in 1945. It was converted into a public limited company in 1948. Manufacturing activities started in 1954 in collaboration with Willy’s Overland Corporation. Production of Light commercial Vehicles (LCV) started in 1965. Four Manufacturing Plants: 3 in Maharashtra (Mumbai, Nasik, Igatpuri), 1 in Andhra Pradesh. It acquired International Tractor Company of India in 1977. Tractor Brand Mahindra was established in 1982 Under the flagship company, there were two main sectors: 1) Automotive sector (utility vehicles, LCV’s, three wheelers) 2) The farm equipment Sector (Tractors and other farm implements) The net worth of the company in 2003 was Rs.15.7 billion
  • 3. Rationalizing Brand portfolio Pre-Case study scenario: • Mahindra was in jeep production – first utility vehicle. It imported and assembled willy’s jeep. • It also manufactured three wheelers – pickup, goods carrier and produced hard top and soft top three wheelers. Currently Mahindra has the ‘Mahindra Champion’ and the ‘Mahindra Alfa’ in its three wheeler segment. • Hence it focused primarily on the rural areas. So when it decided to enter the city market, it rationalized its brand portfolio which is specified below. • Redesigning existing Brand ARMADA to Mahindra Bolero in Aug 2000 by changing aesthetics, physical features and creature comforts, thus entering city market.Brand promise: ‘luxurious toughness’Emotional Benefit: ‘break free
  • 4. • Marshal launched as MaXX offering more space (stage carriage vehicles, economic contract carriage, pick up vehicles). • Invader was launched next which targeted at the young rich, especially in rural areas priced at 0.38 million. • Camper was also launched which was a Multi utility vehicle(MUV) priced at 0.4 million. • These realignments were highly appreciated by the targeted audiences and had high recall. As is evident from the adjoining graph, the fact that Bolero resulted in achieving a high opinion even though it was a new rollout points to the fact that M&M was successful in its portfolio restructuring.
  • 5. • Mahindra and Mahindra(M&M) launched their new sports utility vehicle “Scorpio” in Aug, 2002. During the first year, 12000 vehicles were sold, which rose to 24000 in the next year. In 2003, Scorpio was rated as the most successful new brand in the country. • Project ‘Scorpio’ Objective: • World class, zero defect, trouble free product. Brand element: Likeability feature (Scorpio), which signified stinging the competition with a superior market offer. • Tagline: Nothing else will do Product development process was termed as IDAM (Integrated design and manufacturing). The multifunctional project team consisted of people from different functional departments such as design and development, testing and validation, marketing, manufacturing, and supplier development, etc. The project group was further divided into 19cross-functional teams which ensured quick decisions with built in checks and balances.
  • 6. Brand positioning • Market dynamics: The Indian automotive market was showing a shift towards the trend of ‘poaching’ of C- class or luxury segments by the evolving UV segments. • Also the semi luxurious car segment (B) was rapidly growing at the rate of 43% in 2001 and the luxury car segment was maintaining a growth of about 14%. Category A declined from 55% in 1999 to about 34% in 2001. • Hence, if the new vehicle appealed to Category C and category B buyers, then it would result in higher sales
  • 7. Promise of the brand: ‘LUXURY OF A CAR. THRILL OF AN SUV’ Pricing decisions: Base version: 0.55 million Fully Loaded version: 0.6 million (lesser than leading SUV by 75,000) Brand identity Retailing and service experience: 150 dealer showrooms, but in rural and semi urban areas. No ‘up market’ appearance. Sales and service processes which were followed were largely functional.
  • 8. Hence, it was decided to ‘Redesign and revamp the dealer network’: a) Uniform customer experience across all touch points. b) professional inputs of a reputed architect. c) imageries of movement, technology and ‘sportiness’. d) Showroom design: Reception area, Display area, customer discussion room, lounge. e) Exclusive sales people: appropriate manners, pleasing appearance, adequate sophistication. 2 phase launch: First Phase: main metro cities Second Phase: another 20 cities – in 4 months • 50 towns – in a year
  • 9. Brand building initiatives for multiple audiences: • Targeted audiences: Male, Female, Young, Families • Male: • a) Sportiness in showrooms • b) Technology and urban touch • c) Thrill of an SUV • Female: • a) Comfortability • b) Ads depicted woman driving the car • c) Spacious and luxurious • d) Positioning around ‘Car’
  • 10. • Young: • a) Sportiness and technology oriented • b) Thrill of an SUV, dominance • c) National Campaign and Targeted coverage • Families: • a) Safety, reliability and trust in ‘Mahindra’ • b) Customer relationship management • c) Comfortability and spacious for the family
  • 11. Communication Strategy: • The responsibility for planning and executing communication strategy was entrusted to • Interface Communications, a reputed advertisement and communication strategy situated near • the main manufacturing facility and hence promised better coordination. • The strategy adopted the positioning along the theme – “Luxury of a car, thrill of an SUV”. • The advertisement specifications for television and print medium: First objective: Dual advantages of luxury and thrill of SUV. Second objective: premium imagery of SUV in the city context. Third objective: Hero has to be the product. Fourth objective: Similar look and feel across tv ads and print mediums.
  • 12. Television: emotional benefits, international imagery Print medium: functional benefits The Scorpio launch advertisements were aired on August 15, the independence day of India so as to have a positive rub off of patriotism and Indianness and also it was a national holiday so increased visibility. • Safe driving campaign: • In order to promote safe driving, 17 Indian automotive journalists drove Scorpio across 29 • states in India travelling a distance of nearly 15,000 kilometres. • Scorpio Speedster: • The company, in association with ESPN and Timex, sponsored the ‘Scorpio speedster’ • competition for identifying the fastest Indian cricket bowler
  • 13. Customer relationship management: • Objective: to build a customer database and use it for favorable word of mouth publicity and provide superior customer experience. Subsequently, to increase the lifetime value for the customers. • Buyers had to fill a detailed form to become member of ‘Top Gear Club’ – response rate (45%). • To improve the response rate, the company tied up with KC Mahindra trust that does charitable work‘Nanhi Kali’ for the education of poor girls. It donated Rs.50 for every ‘Top Gear club’ form fill up (75% response rate).
  • 14. Relationship Management program: 2 calls – 7 days from purchase; 30 days from purchase Special offers (Twice a year) 2 newsletters annually Birthday and anniversary cards for buyers
  • 15. Future Initiatives •a) Brand Community: Building a brand community of the buyers of Scorpio encouraging them to go on cavalcades throughout the country on every anniversary of Scorpio or special national events to build a loyal customer base. •For eg, On the first anniversary of the scorpio launch, a cavalcade from Kandiveli to Nasik, actively participated in by 75 customers was organized.
  • 16. •b) Brand revitalization: Making it more youth centric and adventurous. The launch of TUV300 in September 2015 is a big step at making the SUV nimbler, shorter and stiffer. •Focusing on the adventure and off-roading capabilities of the product. In the ‘static and drive’ clinic, it was found that the younger age group showed a propensity to pay a higher price for the vehicle than the older age group