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A

Report
On
MAHINDRA Scorpio

Submitted To
Ms.Renuka Garg
SUBMITTED BY
SUSHANT PATIL
MARKETING MANAGEMENT
Department Of Business And Industrial Management
Semester 2, Section B.
2009-2011.
ABOUT Mahindra & Mahindra COMPANY
The history of Mahindra & Mahindra during World War II, when two- brothers, Mr.
J.C. Mahindra and Mr.K.C.Mahindra envisioned a much greater role for themselves
in the building and growth of independent India. Mr.J.C.Mahinra was then the adv
isor to the Government of India and was the first Indian to become the Iron & St
eel Controller of India.
Mr. K.C.Mahindra was then the head of the Indian supply mission
to Washington, USA. The Mahindra brothers left their flourishing career to becom
e entrepreneurs gave shape to their vision and created an organization to be str
ong pillar in the building and growth of industrial India. The two brothers and
Mr. Gulam Mohammed went on to become Pakistans first Finance minister in 1947 a
nd later on its Governor General.
Mahindra and Mohammed Ltd.was changed on January 13, 1948 to M&M Ltd. M&M was in
corporated on October 2, 1945 as a Pvt. Ltd. Company under the Indian Companies
Act,1913 and was converted into a Public Ltd company on June,1955.
M&M Ltd is the flagship company of US $ 2.59 billion Mahindra group, which has t
he significant presence in key sector of the Indian economy. A consistently high
performer, M&M is one of the most respected companies in the country.
M&M Ltd initially set up to manufacture general-purpose utility vehicles, Mahind
ra & Mahindra was first known for assembly under licence of the iconic Willys Je
ep in India. The company later branched out into manufacture of light commercial
vehicles and agricultural tractors, rapidly growing from being a manufacturer o
f army vehicles and tractors to an automobile major with a growing global market
. At present, M&M is the leader in the utility vehicle segment in India with its
flagship UV, the Scorpio (known as the Mahindra Goa in Italy).
M&M is India s largest SUV maker.

ABOUT M&M Business


Mahindra & Mahindra grew from being a maker of army vehicles to a major automobi
le and tractor manufacturer. It has acquired plants in China and the United King
dom, and has three assembly plants in the USA. M&M has partnerships with interna
tional companies like Renault SA, France and International Truck and Engine Corp
oration, USA.M&M has a global presence[ and its products are exported to several
countries. Its global subsidiaries include Mahindra Europe Srl. based in Italy,
Mahindra USA Inc., Mahindra South Africa and Mahindra (China) Tractor Co. Ltd.
M&M is one of the leading tractor brands in the world. It is also the largest ma
nufacturer of tractors in India with sustained market leadership of over 25 year
s. It designs, develops, manufactures and markets tractors as well as farm imple
ments. Mahindra Tractors Co. Ltd. manufactures tractors for the growing Chinese
market and is a hub for tractor exports to the USA and other nations. M&M has a
100% subsidiary, Mahindra USA, which assembles products for the American market
.
M&M made its entry into the passenger car segment with the Logan in April 2007 u
nder the Mahindra Renault joint venture. M&M will make its maiden entry into the
heavy trucks segment with Mahindra Navistar, the joint venture with Internation
al Truck, USA. M&M s automotive division makes a wide range of vehicles includin
g MUVs, LCVs and three wheelers. It offers over 20 models including new generati
on multi-utility vehicles like the Scorpio and the Bolero.
At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an
aggressive product expansion program that would see the launch of several new p
latforms and vehicles over the next three years, including an entry-level SUV de
signed to seat five passengers and powered by a small turbo diesel engine. True
to their word, Mahindra & Mahindra launched the Mahindra Xylo in January 2009,
and as of June 2009, the Xylo has sold over 15000 models.
Also in early 2008, Mahindra commenced its first overseas CKD operations with th
e launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto
Group. This was soon followed by assembly facilities in Brazil. Vehicles assemb
led at the plant in Bramont, Manaus, include Scorpio Pik Ups in single and doubl
e cab pick-up body styles as well as SUVs.
The US based Reputation Institute recently ranked Mahindra among the top 10 Indi
an companies in its Global 200: The World s Best Corporate Reputations list. M
ahindra is currently gearing up to sell the Scorpio SUV and pickup starting in t
he Fall of 2009 in North America, through an independent distributor, Global Veh
icles USA, based in Alpharetta, Georgia.
CAR MODELS
Mahindra Bolero
o Mahindra Bolero Camper
o Mahindra Bolero Inspira
o Mahindra Bolero Stinger Concept
Mahindra Scorpio
o Mahindra Scorpio Getaway
o Mahindra Scorpio First
Mahindra Xylo
Mahindra Legend
Mahindra MM550 XD
Mahindra-Renault Logan (in cooperation with Renault)
Mahindra Axe
Mahindra Major
o Mahindra Souvenir Concept
Mahindra Commander
Mahindra Grand Vitara
Mahindra DI
Mahindra Cab Chassis
Core Business Activities
Automotive
Farm Equipment
Systech
Financial Services
Information Technology
Infrastructure Development
After-Market
Two-wheelers
Mahindra Partners Division
Specialty Services

ABOUT MAHINDRA SCORPIO


The Mahindra Scorpio is an SUV manufactured by M&M Ltd, the flagship company of
the $6.3 billion Group. It was the first SUV from the company built for the glob
al 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 an
d manufacturing 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 SU
V of the Year" by BBC World Wheels and the "Best Car of the Year" award, again,
from BBC World Wheels.
The making of the Mahindra Scorpio
Prior to the mid-nineties, Mahindra & Mahindra was an automobile assembly compan
y. The company manufactured Willys Jeeps and its minor modified versions. In 199
6, the company planned to enter the SUV segment with a new product which could c
ompete globally. Since M & M didn t have the technical know-how to make a new ag
e product, they devised a whole new concept among Indian auto companies. Roping
in new executives such as Dr. Pawan Goenka and Alan Durante who had worked in th
e auto industry in western countries, the company broke the rule that says autom
akers must design, engineer and test their own vehicles. The new Mahindra Scorpi
o SUV had all of its major systems designed directly by suppliers with the only
input from Mahindra being design, performance specifications and program cost. D
esign and engineering of systems was done by suppliers, as was testing, validati
on and materials selection. Sourcing and engineering locations were also chosen
by suppliers. The parts were later assembled in a Mahindra plant under the Mahin
dra Badge. Using this method the company was able to build a from scratch a new
vehicle with virtually 100 percent supplier involvement from concept to reality
for $120 million, including improvements to the plant. The project took 5 years
to move from concept to final product.
In April 2006, the company launched an upgraded Scorpio dubbing it the All-Ne
w Scorpio. In June 2007, Mahindra launched a pick-up version in India known as
the Scorpio Getaway. Recently, M & M has launched a face lifted version of the m
odel.
Overview Mahindra Scorpio s:
FUEL EFFICIENCY
City Mileage 9.4 kmpl
Highway Mileage 13.9 kmpl
Fuel Capacity 60 litre
Fuel Type Diesel
ENGINE PARAMETERS
Displacement 2609 cc
Bore 94 mm
Stroke 94 mm
Cylinder Configuration 4-inline
Valve Gear Operation Pushrod
Compression Ratio 18.5:1
No. Of Valves 8
Aspiration Turbo-charged
Fuel System CRDi
Horse Power 115@3800 ps@rpm
Torque 277.52@2200 Nm@rpm
DIMENSIONS
Length 4495 mm
Height 1975 mm
Width 1817 mm
Wheelbase 2680 mm
Clearance 180 mm
SWOT ANALYSIS
STP ANALYSIS
SEGMENT
A BRAND is a thought, and launching brands can be a great growth strategy for an
y corporate. But, it takes two to tango. A brand founded on a good idea needs to
be built with an ever-evolving gameplan. A case in point is the launch of the s
ports utility vehicle (SUV), Scorpio, by Mahindra & Mahindra (M&M).
When Scorpio hit the streets, it arrived as an SUV with a `car plus package. Tw
o-and-a-half years later, it has caused a paradigm shift in its category. Equipp
ed with a savvy marketing strategy, the brand has not only grown the SUV market,
but almost touched base with the `C class cars segment
According to automobile manufacturers data, the premium utility vehicle segment
grew at approximately 14 per cent up to June 2002. With the launch of Scorpio,
the growth rate from July 2002 to March 2003 rose to about 51 per cent. Between
April 2003 and March 2004, the segment grew by 33 per cent.
POSITIONING
Attract a lot of cross-over customers. Unlike for its competitors in the UV cate
gory, people who wished to purchase a C class car would also consider a Scorpio,
" says Hormazd Sorabjee, Editor, and Autocar India. "The Scorpio launch did play
a significant role in driving the UV market up. This to me is the ultimate meas
ure of success - the ability of a company to drive the growth of markets," remar
k Abraham Koshy, Professor of Marketing, Indian Institute of Management, and Ahm
edabad. Marketing gurus suggest that the positioning of Scorpio was also very bo
ld and innovative. Mahindra Scorpio Pick Up secures third position in T2 categor
y of Rally dos Sertoes in Brazil
TARGET
The track monitors `high value consumers, and registers those who are in the SE
C A and B categories, while 67 per cent of the sample size is from the top eight
metros; the rest from the next 50-60 towns across India. Sales too have been zo
oming, says the company. According to brand-wise data, the company claims to be
matching sales of most C segment cars, even outselling some of them. In the last
six months, M&M sold 14,389 Scorpios, against a total C segment sale of 79,346,
according to company data.
PEST ANALYSIS
POLITICAL
Taxation Policy
Government Policy
SOCIAL
Give good quality to their customers
Providing offers to its retailer and customers
ECONOMY
Launch low cost car in rural areas
Launch economy related brand
TECHNOLOGICAL
Provide new innovative product to their customers
Provide the compete ting technology
Market MIX
The soft tops sales, which were Mahindras strength, were stagnating.
Hard top vehicles like Sumo and Qualis were garnering market share. The urban ma
rket was showing more potential for vehicle sales and UVs were gaining higher ac
ceptability in urban cities. The competition was getting tougher with internatio
nal UVs entering the market.
The market was moving from traditional multi utility, non-luxurious veh
icles to luxurious vehicles. M&M had launched Bolero in 2000 to cater to this ne
wly emerging segment. However, to add to the categorys woes, it declined at the
rate of 3.1 percent in year 2001 over year 2000. UV as a percentage of the over
all passenger car market was just 16 per cent in 2001. This simply meant that fo
r attaining the volumes, Scorpio needed to look beyond UVs in terms of competiti
ve framework to decide on a marketing strategy.

FOUR P OF MARKETING MIX

PRICE
MODEL PRICE (in INR)**
LX 735500
M2DI 691100
SLE 834500
SLX-4WD 972100
VLX BS3 2WD 938700
VLX BS3 2WD-Air Bag 958000
VLX BS3 4WD 1015100
VLX BS3 4WD-Air Bag 1034400
*Note: Any other levies or taxes if applicable are extra.
For exact prices, please contact our dealerships.
Prices are applicable within the specified city limits only.
All prices are subject to change, and Mahindra Scorpio reserves the right to mod
ify the prices at its discretion at any point in time.
PLACE
Mahindra & Mahindra has emerged as a well-known tractor brand in the US. It is n
ow planning to launch the Scorpio in the US sports utility vehicle market.
Mahindra Automobiles have a strong and growing presence in international
markets
Yugoslavia,
Bangladesh
Sri Lanka
Australia
Uruguay
South Africa in 2004 (Mahindra South Africa)
Europe in 2005 (Mahindra Europe)
Mahindra vehicles have gone on display to auto enthusiasts around the wo
rld, participating in prestigious automobile shows in Paris, Rome, Bologna, Joha
nnesburg and So Paulo.
In 2006 Mahindra announced that it would be the first Indian automobile
manufacturer to enter the worlds most demanding and critical market USA.
Promotion
The creative strategy was to drive home the Car Plus positioning forwar
d. There was a need to leverage on product strengths. And a need to establish ca
r plus story. Hence the product was to be the hero in all communications
The tone and manner was to help associate the brand with the modern and u
rban lifestyle. The TVCs as well as the press still-shots were shot in Australia
to provide an international city feel. This brought in the international, premi
um, up-market association for the brand.

PRODUCT
Mahindra Scorpio
o Mahindra Scorpio Getaway
o Mahindra Scorpio First
Model
LX
M2DI
SLE
SLX-4WD
VLX BS3 2WD
VLX BS3 2WD-Air Bag
VLX BS3 4WD
VLX BS3 4WD-Air Bag
DEVELOPMENT
Made survey and collect customer preference and perception for designee
and feature
Introduction of quality function development (qfd) process
Create the benchmark according to word class suvas
Big size
Latest technology
Affordable size
Have thrill and passion in driving
Have luxury
International vehicles define image
CRITICISM
Some companies said that Mahindra & Mahindra did not have the capacity t
o provide vehicles in house
No crash testing
Mahindra & Mahindra did not re-designed its product
TECHNOLOGY
Collapsible steering column & split intrusion beams
Crash protecting crumple zones and child locks
Fire resistant upholstery
Voice assist system, vehicle security system & remote locking/unlocking
Tubeless tyres
Poly coated grand deck
STYLE
Bonnet scoop
Air extractor
Two tone interiors
Sporty decal
Full wheel caps
COMFORT
Tilt able steering
Full fabric seats
Individual armrests on 1st row seats
Heating, ventilation & AC with rear vents
ORVM manual remocon & swivel interior lamp
CONVENIENCE
Power steering
Power windows
Spaces for storage on centre bezel, IP & console
Mobile charging facility for the front and middle row seats
Intelligent front wipers
Follow me home lamps
Theatre style interior illumination
Illuminated key ring
Side step
Head lamp leveling switch
Front fog lamps
SEATING
5 Seater

SCORPIO IMPACT ON M&M


Scorpio was launched on June 19, 2002. At that time Mahindra was losing market s
hare and the share prices were also at an all time low at around Rs. 100.
With the launch of Scorpio, things started looking up for Mahindra. There was an
improvement in the bottom line as well as the return to the shareholder. The re
venue for M&M Auto Sector increased from Rs. 1827 Cr. in F 02 to Rs. 2511 Cr. in
F 03, a growth of 37 per cent. The profits before Interest and Tax (PBIT) too z
oomed up from Rs. 102 Cr. in F 02 to Rs. 147 Cr. in F 03, an increase of 43 per
cent. In F04 the scenario has further improved. The half-yearly results show a g
rowth of 54 per cent in revenue and 218 per cent increase in PBIT. The share pri
ces have outperformed the Sensex and Share prices have zoomed from Rs. 100 to Rs
. 400 by December-03.
As regards Mahindra image in the customers mind, the post launch study conducted
gave the following improvements (Brand track Study - Nov 2002 - IMRB):
The Mahindra saliency scores improved by 27 points among MUV/ SUV owners
and by 29 points among all car-owners.
The overall positive opinion about Mahindra also moved up by 18per cent
among MUV/ SUV owners and by 11per cent among all car owners.
Mahindra Scorpio has fared excellently in overall opinion as against its
key competitors.
Future Directions - World class product goes global
Having done well in the domestic market, Mahindra and Mahindra is now moving for
ward on its path to become a global niche player. i.e, it is stretching its acti
vities in foreign markets. The company is in the process of negotiating joint ve
ntures in markets like Spain, Italy, South Africa, Indonesia, Russia, and Equado
r for marketing of Scorpio.
Mahindra Scorpio
Activity: Banners, Shoshkele & Direct Mailer
Objective: To generate test drive leads and Branding
Est. Spends: Rs. 15 + lacs
Nothing Else Will do
Bibliography
http://www.mahindra.com/ourbusinesses/automobile-manufacturer.html
http://www.priceindia.net/car/mahindra-scorpio-price-lx-sle-vlx-at-car-price-ind
ia/
http://www.scribd.com/doc/21509782/Scorpio-Brand-2007
http://www.scribd.com/doc/24993561/Scorpio-From-Mahindra