MAHINDRA SCORPIO

NOTHING ELSE WILL DO

TEAM ARCHANA

INTRODUCTION
Scorpio launched in 2002 as an SUV with a car plus package the message conveyed the car you would walk into, not crawl into. Increased SUV market size, also touched base with the `C' class cars segment Received a National Award for Research & Development 2003

Car of the Year Award 2003 from Business Standard Motoring, BBC World Wheels and
CNBC Auto car Went global in 2003 with its launch in Latin American, Middle East and South African

markets
In 2006, just 4 years after its launch it crossed the one lakh mark Chosen for the Gondwanaland Expedition-a landmark assignment for the vehicle

MARKET POTENTIAL
EXISITING PRODUCTS MARKET PENETRATION EXISITING MARKETS Semi urban Potential C-Segment Untapped SUV Segment MARKET DEVELOPMENT NEW MARKETS Rural Global NEW PRODUCTS PRODUCT DEVELOPMENT Scorpio Hybrid Scorpio Caravan

DIVERSIFICATION

VALUE PROPOSITION
Brand Identity Prism - Scorpio Styling, International Looks, Power Car Like Comfort Physique Persona Living life at ones own terms Powerful, in control, Sophisticated

Styling, International Looks, Power Car Like Comfort

Relationship

Culture

Successful, new economy Businessman, Self Made, Evolved Taste

User Image

Self Image

A cut above, Expects the best from Life, Nothing Else Matters.

SWOT ANALYSIS
Threats
1) 2) 3) 4) Other Sedans Indian consumer mentality. Mini SUV segment Second Hand Luxury SUV Market

Strengths
1) 2) 3) 4) Rugged & Tough Reliable Economical Vehicle Well-respected manufacturer 5) Scorpio has the largest top of mind recall in the SUV segment 6) Technologically advanced

Weaknesses
1) Mahindra Image of being uncomfortable, rough, not easy to drive 2) Rural imagery

Scorpio

Opportunities
1) Introduction of new variants to remain the market leader in the segment 2) Growing market for Tough, stylish but affordable cars

PRODUCT CATEGORY
C Segment SUV Class

Utility Vehicle Segment (Mahindra Bolero,TATA Sumo)

Mahindra projected scorpio between the C segment and the Sports utility segment (SUV) and appeals to more of C segment customers. It was not all compared with the utility vehicle segment

MAJOR COMPETITORS
TATA Safari
Strengths Weaknesses

Toyota Innova
Strengths Weaknesses

1) Spacious 1) High interiors maintenance 2) Greater comfort cost factor 2) Costly spare 3) Height adjustable parts drivers seat 3) Less stylish as 4) Ride Quality compared to 5) Both diesel and Scorpio and petrol variants Innova 6) Affordable Range

1) Commercial vehicle 1) Higher price. as as well as a family compared to car scorpio and 2) Luxurious and safari comfortable 2) Not meant for 3) Bridged the gap of hilly areas and space and seating rough roads capacity in sedans 3) Tough to get 4) Both diesel and through in traffic petrol variants 5) Less operating cost 6) High resale value

CURRENT SCENARIO OF MAHINDRA

Today the product category of SUV segment of Mahindra is known for its

products like XUV500,Mahindra Bolero, Mahindra Quanto, Xylo etc.

The SUV segment of Mahindra was known for Scorpio which was the biggest hit in India as well as in Overseas. Today XUV500 is almost a nearly substitute product for Mahindra Scorpio but not as brand recall product as that of Mahindra Scorpio. A shift in the brand image of Mahindra which was known to produce rugged surfaces car to MUV in the market.

SCORPIO V/S XUV500

Parameters Fuel Type Mileage-City(kmpl) Mileage-Highway(kmpl) Fuel Tank Capacity(litres) Seating Capacity Transmission Type Engine Displacement(cc) Maximum Power Diesel 8.35 11.79 60 8 Automatic 2179 120bhp@4000rpm Scorpio Diesel 12 15.1 70 7 Manual 2179 140bhp@3750rpm XUV500

COMPETITORS PRODUCT IN SUV SEGMENT

1.Mahindra Scorpio v/s Renault Duster: Parameters Interiors Mileage Engine Capacity Price Mahindra Scorpio Outstanding and highly spacious 15.4 Renault Duster Not that spacious as Scorpio 20.46kmpl

290Nm torque and 120bhp 100.5 bhp and 145Nm power. torque. 7.9 to 12.8 lacs 8 to 12.3 lacs

Similarly in compact SUV Mahindra Quanto and Ford EcoSport are competing. In conventional models Mahindra Bolero & Tata Sumo Gold are competing.

REASONS FOR THE EXISTENCE OF JOINT VENTURES

Transaction cost approach Strategic behavior approach

Organizational learning approach

WHY MAHINDRA-RENAULT JOINT VENTURE?

Why Renault? M&M would get all important expertise needed to build mono-coque or unitary construction.. With other European automotive counterparties like Fiat and Skoda had little presence this venture was also seen a major competition to them. M&M had not much presence in Sedan segment i.e. C-segment

Why Mahindra n Mahindra?

Renault was looking for major global expansion; along with India it was also starting its operations in Romania, Russia, Morocco, Colombia and Iran US $ 2.5 billion company was and the market leader in multi-utility vehicles and tractors in India. 55 years of manufacturing experience high network of distributors and suppliers in India efficiently

reputation of providing TATA Motors the platform to harness the automotive growth in India
a trusted brand in India.

LOGAN AGAINST COMPETITION

LOGAN(1.4L) PRICE(Delhi) COMFORT MILAGE(with a/c) LOOKS FEATURES INTERIOR SPACE DRIVEBILITY 4.83 8.5/10 City : 17kmpl 6/10 6/10 8.5/10 8/10 IKON(1.3 Flair) 5.48 7.5/10 City : 12kmpl 5/10 7/10 8/10 7.5/10 ESTEEM(1.3L) 5.37 6.5/10 City : 14kmpl 6/10 6.5/10 7.5/10 7/10 INDIGO(1.2) 5.29 6/10 City : 12kmpl 6.5/10 6/10 6.5/10 7/10 ASSCENT 5.79 7/10 City : 12kmpl 6.5/10 7/10 7.5/10 6.5/10

BUILD QUALITY
Major Pros

8.5/10
New car (resale value would also be higher) Large boot space, seating capacity Fun to drive interiors mostly plastic No power windows, No stereo, No discount Only Black/Beige color in 1.4L

8/10
Plush Beige Interiors Fully Loaded gets power windows, fog lights, stereo, corporate discount) Dated looks Low resale value Rough car

6.5/10
Has been a segment leader for a long time Fuel economy Huge service network Getting old New competition could deplete its presence Not fun to drive

6.5/10
A TATA product Comparatively new car in the segment Competitive pricing Indica with a boot Interior build quality quite poor.

6/10
Service network Comparatively Low Maintenance Costs Comfort Low economy discontinued in Jan 2007.. again started Too old

Major Cons

BIGGEST CONCERNS
The whole value delivery process for the present vehicles sold by M&M is different for passenger cars. Every P in the marketing mix right from colors, interiors, to after sales service, promotion and PR will be different for different types/categories of vehicles sold by M&M.

M&M is having a strong positioning as a low cost vehicle manufacturer where consumers are not very much concerned about Ride quality, Looks, Comfort, and Driving pleasure and rather obsessed with the cost of fuel that goes into running the vehicle.
Therefore, M&M faces this formidable task of changing all this by not only emphasizing the cost of running the vehicle but also the other attributes that consumers look for when buying a passenger car, as mentioned above. That means that the company has to change many aspects of its branding and positioning, which has been its Competitive advantage till recently. Moreover, the Brand Identity prism of Mahindra and Logans product strategy do not strictly match. Low cost and higher benefits of Logan matches with the Brand Identity of M&M but the problem areas are ease of use and ease of buy. User Image: Rural guy, middle class, and institutional, and Physique: tough, economical, jeep looks, all-terrain, diesel, noisy. This image and physique will not go with a passenger car especially with the target segment mentioned.

POSITIONING
Logan should be positioned as an Indian car. Good after sales as Indians are very particular about it.

The focus should be to maximize total customer value, with special attention to Customer Perceived Value.
There are two options available with M&M are i. ii. to increase total customer value, or to decrease total customer cost

The former means augmenting the offers product, service, image, and personnel benefits. The latter calls for reducing the buyers cost, by reducing the price, simplifying ordering, delivery, and after sales service etc., or absorbing some of the buyers risk by way of offering a guarantee.

THANK YOU