WHO

WILL
BUY
XYLO
MAHINDRA AND MAHINDRA AUTOMOTIVE
SECTOR
WE ARE
GROUP 9
Abhijeet Bhattacharya 01
Avin Kumawat 10
Harsh Gupta 20
Harshita Ahuja 21
Mohd. Tanzeem 34
Tejavath Monika 77
Vinay Pathak 80
Shubham Jain 130

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 ABOUT THE
CASE
• The case is instrumental with the success story of the
powerful SUV of India-MAHINDRA SCORPIO, which
took Mahindra and Mahindra to the leadership position
in Utility Vehicle (UV) space.
• Rajesh Jejurikar who worked upon the marketing
strategy of Scorpio had set high standards for the
marketing team at M&M.
• But after experiencing many good years and fortunes
with SCORPIO, the business was now stagnating.
• Challenge was to grow the segment
• In 2006 along with Senior Vice President and other
team member they were looking at the consumer &
market data to decide on the strategy for XYLO

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ABOUT MAHINDRA
• Mahindra & Mahindra Limited is an Indian
multinational car manufacturing corporation
headquartered in Mumbai.
• One of the largest vehicle manufacturers by
production in India and the largest
manufacturer of tractors in the world.
• It’s a part of the Mahindra Group, an Indian
conglomerate.
• It was ranked 17th on a list of top companies
in India by Fortune India 500 in 2018.

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 MICRO ENVIRONMENT

It comprises of all other organization &

individuals who directly or indirectly affect
the organizations.

Company Mahindra and Mahindra

Suppliers Vendors from India, US, Japan & Germany-BOSCH, NIPPON, SUBROS and
LUMAX.
Marketing
Bookings in a phased manner at 57 select Mahindra dealerships in
Intermediarie
s January and another 44 dealerships from February 2010 were planned.
Level of
Competitio Brand Level Competition
n
Competitors Toyota, Chevrolet, Maruti Suzuki
Production Manufactured at the Nashik Plant, It has initial production cost of around
₹550 Crores
 MACRO ENVIRONMENT

DEMOGRAPHIC ENVIRONMENT
OPPORTUNITY
Population Age Mix- More than 50% of India population is between the age of 20-40
years
Population & 121.43 Crores Population Age Mix- Mahindra XYLO is for
growth (2009) with growth rate young age adults ( 20-40 Years)
of 8.4%
Years 0-14 Years 15-65 Years 65+ Years
Literacy Rate Range of 10 Years
2009 31.30% 63% - 64% 5.05%
Years Rural Urban Combined 2010 30.89% 63.99% 5.11%
2001-2010 59.4% 80.3% 64.83% 2011 30.49% 64.30% 5.21%
2011 & Above 67.8% 84.5% 74.04% 2012 30.25% 64.66% 5.30%
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 MACRO ENVIRONMENT

SOCIAL FACTORS

• OPPORTUNITY
• The changed lifestyle of people has led to increased purchase of automobiles, so
automobile sector have a large customer base to serve.
• Increase in the level of income of consumer as increased the buying power of people.
• GDP of 2009-2010 estimate was around 1.32 Lakh Crore with growth rate of 8.5%
• Average Per Capita Income estimates were ₹46492.
• THREAT
• Indian customers are highly educated and well informed and preferred fuel efficient cars
with low running costs.
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 MACRO ENVIRONMENT

ECONOMIC FACTORS

• OPPORTUNITY
• Government has granted concessions, by reducing the interest rates for export
financing.
• Growth of Indian economy at the rate of 8.4% per annum has had a great influence on
the automotive sector in India, this lead to increase in sales to 15,26,787 units which was
25.10% above than 12,20,475 units of the early fiscal of April- March period.
• THREAT
• Globalization of India economy has led to the participation of several Indian firms with
global players

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 MACRO ENVIRONMENT

TECHNOLOGICAL FACTORS
• OPPORTUNITY
• Mahindra and Mahindra is providing customized solutions and designer cars with new &
advanced technology.
• More emphasis laid on R&D in terms of technology in this sector which has contributed
to innovation.
• With average spend of 1-2% of revenues on R&D by most of the Indian companies
(outside of the pharma sector) Mahindra is investing about 5% which was around
$153.4 million.
• THREAT
• With the development and evolution of alternate fuels, hybrid cars have made entry into
the market.
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 MACRO ENVIRONMENT

POLITICAL FACTORS

• OPPORTUNITY
• In 2002, the government of India formulated an auto policy that aimed at
promoting integrated, enduring and self-sustained growth of the Indian automotive
industry.
• Also the development of alternate energy source vehicles has led Mahindra to
acquire majority stake in REVA electric car co. ltd.
• THREAT
• Approval for foreign equity investment up to 100% in the automotive sector was
allowed and minimum investment criteria disallowed.

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 MACRO ENVIRONMENT

LEGAL FACTORS

• OPPORTUNITY

• Automotive sector has undergone a major change during the last 50 years and
Mahindra and Mahindra has been able to cope up with the same.
• Mahindra group has enabled it to constantly abide by the laws and rules and regulations
of India and the worlds over.

• THREAT

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 MACRO ENVIRONMENT

ECOLOGICAL FACTORS

• THREAT
• The physical infrastructure of country such as bridges and roads affect the use of
automobiles.
• The environment and weather conditions also affect the use of automobiles in the
country.

• OOPPORTUNITY
• The entry of global companies in the Indian environment has led to advancement in the
products and the production process of Mahindra and Mahindra.

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 CONSUMER BEHAVIOUR
SOCIAL FACTORS
• Membership
• Reference

PERSONAL
• Age and Family Life Cycle
FACTORS
• Economic Situation
• Occupation • Personality and Self
Concept

CULTURAL FACTORS

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 SEGMENTATION

1 2 3
DEMOGRAPHIC PSYCHOGRAPHIC BEHAVIOURAL
• Mid Sized/Big Families • Desire for Luxury On the basis of
• Mid Level Income • Sedan Users knowledge and attitude.
Group

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 TARGETING

1 Family Size of up to
9 members.

2
C Segment Sedan
Users

3
Male | Young &
Aspirational(Age 20-40)
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 POSITIONING

• Mahindra & Mahindra used its positioning strategy to appeal the comfort and
space in XYLO and launched the product with ample of boot and leg space, so
that it is comfortable even in the last seat.
• Mahindra used its positioning as ‘Happy Legs’ for the Indian Market and with
unmatched leg space when compared to other cars at the price range also
attracted the sedan users who were looking for luxury and comfort at the
same time.

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 PRODUCT STRATEGY

• M&M felt that the Indian utility vehicle market underperformed so far with just 15 per
cent of car sales in India, whereas the Asian average is 40 per cent.
• M&M considers the combined segments of sedans and utility vehicle its playground
and has entrusted the task of permeating the sedan market to the Xylo.

17 ADD A FOOTER MM.DD.20XX

 PRICING STRATEGY

• Mahindra has used Penetration Pricing Strategy.

• The Xylo's price tag of ₹625,000 (Delhi ex-showroom price of the entry-level) puts it closer to
the mid-size sedan segment than all its rivals.
• There has been a lot of competition in the segment, However meeting the expectation in
terms of value offerings the product has succeeded in capturing the market..
• Initially Mahindra opted for lower marketing price strategy to gain market share in India, later it
also targeted selected countries like South Africa and Colombia and few in southern Asian and
North African Countries.

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 POSITIONING|POINT OF
DIFFERENCE

Point of difference refers to the factors of products or

services that establish differentiation.

• Xylo claims mileage of up to 14 km a litre and is packed with over 50 styling changes.
• It also offers better torque and higher power at 120 Bhp while the Innova offers only 105
Bhp.

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 POSITIONING|POINT OF PARITY

Points of parity are elements that a brand needs in order to be

considered in the eyes of the consumer. This is where a brand may
have similarities to others—leading consumers to believe that brand is
“good enough” to be included in the conversation

CATEGORY |
AUTOMOTIVE

• The price of Mahindra Xylo D2 BS-IV starts at Rs. 9.58 Lakhs.

• The claimed mileage for the Mahindra Xylo is 13.9 kmpl, Chevrolet Tavera is 11.64 kmpl and for
the Toyota Innova [13.7 kmpl.

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 POSITIONING|COMPETITIVE FRAME OF
REFERENCE (CFR)

BRAND LEVEL
o COMPETITORS

• Toyota Innova
• Chevrolet Tavera

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 SUMMARY
• Mahindra XYLO has been a successful MUV
in its segment and brought several features
at good pricing which made it a success in its
segment
• It has recently facelifted the Mahindra XYLO
with new and improved iteration which adds
more value to the already good and popular
MUV.

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THANK YOU!