3. INTRODUCTION:
Indian automobile industry
1898-first motorcar rode down to Indian's
roads.
The Hindustan Motors was set up in
1942, & in 1944, Premier Automobile
was established to manufacture
automobiles in India.
Most international car manufacturers
have entered the Indian market, as it one
of the fastest growing economies in the
world.
As India provides excellent global
technologies, most international car
manufacturers can access these through
joint ventures with India.
4. Interesting facts:
India is the 2nd largest two wheeler
manufacturer in the world.
India is the 2nd largest Tractor manufacturer
in the world.
India is the 5th largest commercial vehicle
manufacturer in the world.
India is the 3rd largest car market in Asia.
India‟s largest car-market Maruti Udyog
Ltd(MUL) was privatized in 2002 with Suzuki
Motor Corporation moving into the driving
seat after acquiring a majority stake &
,management controlling the Maruti Suzuki
Joint venture.
5. Major players in the indian
automobile(car) market
Maruti
Hyundai
Tata
Ford
Hindustan motors
Mahindra and Mahindra
6. Mahindra & Mahindra
It is a major automobile co. in India.
It is the flagship co. of the Mahindra
Group.
The company was set up in 1945 in
Ludhiana as Mahindra & Mohammed
by brothers K.C. Mahindra and J.C.
Mahindra and Malik Ghulam
Mohammed.
Purpose- to make general purpose
utility vehicles for the Indian market.
7. Mahindra & Mahindra
It soon expanded into manufacturing
general-purpose utility vehicles, starting
with assembly under licence of the
iconic Willys Jeep in India.
Soon established as the Jeep
manufacturers of India, M&M later
branched out into the manufacture of
light commercial vehicles (LCVs) and
agricultural tractors.
8. Positive & negative facts
Positive:
Rugged, tough, reliable, economical
vehicles.
Negative:
Uncomfortable, rough, not easy –to –
drive, rural imagery, down market,
fuddy duddy, not technologically
advanced.
9. Objectives
When Mahindra started to lose its market
share because of its problems they
decided to launch a product with the
following objectives:
To create a new segment & retain market
domination.
To differentiate offering i.e. to provide an
excellent value proposition to the
customer.
To optimize project costs.
Consumer research-SUV concept-This
marks the beginning of the Scorpio
story(1997)
10. Scorpio
It is a SUV manufactured by Mahindra &
Mahindra Limited.
It was the first SUV from the company built for
the global market. The Scorpio has been
successfully accepted in international markets
across the globe, and will shortly be launched in
the US.
The Scorpio was conceptualized and designed
by the in-house integrated design and
manufacturing (IDAM) team of M&M.
The car has been the recipient of three
prestigious awards: the "Car of the Year" award
from Business Standard Motoring; the "Best SUV
of the Year" by BBC World Wheels; and the "Best
Car of the Year" award, again, from BBC World
Wheels.
24. Place
Phased launch:
Mumbai, Bangalore, Delhi &
Chennai
within 4 months 20 cities
within a year 50 cities
Showroom experience
Infrastructure.
25. Promotion
Advertising strategy:
The Television Communications(TVCs)
as well as the press still-shots were shot
in Australia to provide an international
city feel.
Media strategy:
PR, mass media, direct marketing,
events.
27. QUESTIONS???
Q.1 Is Scorpio a new product or an
example of line extension?
Ans. It is a new product through
Integrated Design And Marketing
(IDAM).
28. Q.2 Evaluate the management decision
to launch Scorpio.
Ans. Category A declined from 55% in
1999 to 34% in 2001, on the other hand,
category B i.e. semi –luxurious was
growing at 44% in 2001.
Category C was maintaining a growth
of 14%.
Category D & E – Super premium cars
, limited in size in volume.
29. Impact on M & M
With the launch of the Scorpio, things started looking up
for Mahindra.
Improvement in the bottom line as well as the return to
the shareholder.
Revenue increased from Rs. 1827 cr. In F02 to Rs.
2511 cr. In F03, a growth of 37%.
The PBIT too zoomed up from Rs.102 cr. in F02 to
Rs.147cr. in F03 , an increase of 47%.
The share prices have outperformed the sensex &
share prices had zoomed from Rs.100 to Rs.400 by
Dec 2003.
The Mahindra saliency score improved by points among
MUV/SUV owners and by points among all car owners.
The overall positive opinion about Mahindra also moved
up by 18% among MUV/SUV owners and by 11%
among all car owners.
30. Q.3 What is your opinion of Scorpio as a
brand name & its positioning in India?
Ans. Scorpio as a brand-Dynamic looks,
outdoor fun companion, power ,
strength, stamina, speed, city –dweller,
sporty
“(Cars will now suffer from low self
esteem”)
Positioning in India- powerful vehicle,
“Luxury of a car and the thrill of an
SUV”.
31. Q.4Take another automobile company in
today‟s competitive scenario and what
can they learn from „Project Scorpio‟.
Ans. Maruti Suzuki-2%
32. Current status of Scorpio
Scorpio new variant Scorpio EX
Rs.41,000 cheaper than Scorpio LX.
Target: young professionals and
college goers in the age group 18–25.
Promotional tools: social medium such
as Facebook.
Scorpio range now starts at Rs.7.21
lakh & extends to Rs.11.89lakh(July
2011).
33. M&M is working now which could be
positioned below the Scorpio(market
buzz is that a new SUV to seat upto 5
occupants & will be powered by sub-2
litre engine.)
M&M hardly any competition in
affordable SUV segment(Scorpio &
Bolero) except Tata Safari(starts from
Rs. 7.90 lacs).
35. Future directions – global
level
First SUV from the company for the
global market.
Across the world in the countries such
as Italy, France, Spain, Turkey, Sri
Lanka,
Russia,Egypt,Nepal,Malaysia,Qatar,
South Africa, Brazil, Chile & will be
shortly launched in US.
