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
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 .
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.