Scorpio from Mahindra: Geared up for Success

Gagandeep SinghUndavalli ShivaKhushboo Verma

Presented by:-

Introduction

• In 1945, started as Mahindra & Mohammed as a Steel Company in Mumbai.

• In 1947, name changed to Mahindra & Mahindra.

• Brought iconic Willy’s Jeep onto Indian roads.

• Today, it operate in 18 key industries, namely – Aerospace, Consulting Services, Energy,

Financial Services, Information Technology, etc.

• Acquired Kinetic motors in August 2008, RECC in May 2012 and Ssangyong in

February 2011.

• Mahindra is the market leader in the SUV segment.

• Scorpio is one of the most successful car of Mahindra.

• Scorpio was launched in 2002

• First BS4 car in India.

• Over 4.5 lakh Scorpio are on Indian roads.

• The Brand Trust Report ranked M&M as India's 10th most trusted brand in its India

study 2014 survey.

• Decreasing Market share

• Decreased Share prices

• Overcoming Negative Parameters

• Competition from Tata and Toyota

Problems in the Case

SWOT Analysis

Strength:-

• M&M is a strong brand in the automotive industry

• Constantly bring new products according to the market requirements like XUV500 to keep in pace with the needs of the customers

• Known for producing quality and economical products

• Large market share in farm equipment industry

• Has out-performed the Indian automotive industry in past few years.

Weakness:-• Still way behind Maruti

Suzuki, Hyundai in PVs sector

• Dependent on growth of economy

• Not known for having luxurious cars instead known for having sturdy cars

• Dependence on government policies

• Failed partnership with Renault (LOGAN)

Opportunities:-• Expand oversees through

various alliances• Growth in rural economy

should be tapped through increase in sale of tractors

• Introducing new innovation like hybrid cars etc.

Threats:-• Entry of foreign players.• The ever increasing fuel

prices and over all inflation could slow down sales

• Diversification in various sectors can lead to loosing focus from core Business

• Highly competitive automotive industry

• Ever changing customer preference

Marketing Mix

Product:- • Thar• E2o• Verito• Bolero• Quanto

• Xylo• Scorpio• Xuv500• Rexton

Price:-

PriceModel

5.0-7.7 LacThar

E2oVerito

Bolero

Quanto

Xylo

ScorpioXUV500

Rexton

6.3-8.1 Lac

6.4-8.3 Lac

7.7-11.4 Lac

7.9-13.5 Lac

11.2-15.1 Lac

19.8-23.2 Lac

6.0-6.8 Lac

6.7-8.1 Lac

• Mahindra has an expansive reach of 300 dealerships with 614 touch points across 240

cities.

• A total of 1,300 up-country outlets in 900 towns/semi-urban and rural areas across the

country.

Place:-

• Advertising through newspaper

• Through television

• Online(mail)

Promotion:-

• Xuv500• Scorpio

RELATIVE MARKET SHARE

MA

RK

ET

GR

OW

TH

RA

TE

• Xylo• Thar

STAR

CASH COW DOG

?

BCG Matrix

High

Hig

h

Low

Low

• Bolero • Jeep

• The robust design of Scorpio was the main attention of Indian buyer toward the vehicle

• Use of latest technology

• The affordable pricing was the greatest advantages

• The powerful engine, good seating capacity, the overall look, the independent front

suspension was the other reason for the popularity of this vehicle

Reasons for Success

• To create new segment and retain market domination

• To differentiate its offering

• To become a global player in the chosen product strategy

Solution to the Problems

• Cost management initiatives.

• Start a car service business.

• Creating awareness about Scorpio in us.

• Reva E2 should be made available in other parts of country.

• Mahindra should implement good customer management strategy.

• Launching Hybrid cars.

Suggestions

• Scorpio has proved as a Milestone for M&M and the Indian Automobile Industry.

• It has given a unique place to M&M in Indian market because it was innovated with

high quality, reliability, flexibility, Style , driving comfort etc. In short it offered a

customized product.

• Hence, again Operation's components: Time, quality & technology made A Success

story.

Conclusion

• Is Scorpio a new product or an example of line extension? Explain.

• Evaluate the management decision to launch Scorpio.

• What is your opinion of Scorpio as a brand name and its positioning in India.

• Take another automobile company in today’s competitive scenario and what can they

learn from ‘Project Scorpio’?

Questions