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A Sip Report Submitted By: MR. GAURAV P. KOSHTI (M.B.A.-I) Under the guidance of: (MR. RAJENDRA SHIRALEKAR)
Submitted to: The HOD Department of Business Administration & Management Sant Gadge Baba Amravati University, Amravati
(2009-10)
CONTENTS
1. PROFILE OF THE COMPANY Name Location Historical background Products Number of departments Number of employees Human resource policies Information about marketing Vision and mission
2. SUBJECT TAKEN FOR SIP Introduction Making of Mahindra scorpio Product training Mahindra scorpio mhawk Objectives Methodology conclusion
ACKNOWLEDGEMENT
I take this as an opportunity to express my regards to Mr.Vishal ghute (Workshop Manager) who helped me to undertake this project. It was a great experience to have practical knowledge, which would not have been possible without his help.
I obliged to Mr. Rajendra Shiralekar (Team Leader) & Miss. Preeti Malao (Showroom Consultant) for providing me support and help whenever I needed.
They gave me the opportunity to attend the various training program and seminar which are held in Amravati for giving the product knowledge and market knowledge.
I am deeply grateful to each one who helped me directly or indirectly in completion of this project.
Location:
Unnati Motors: Amravati Branch
Navathe Plot, Opposite Khamgaon Urban Bank, Badnera Road, Amravati Phone: 0721 2510780
Unnati Motors also operates at Yavatmal, Wardha and Wani through its modern branch network.
Micropark Logistics Private Limited is in the business of DISTRIBUTION, WAREHOUSING and C & F Agencies. Micropark is one of the pioneer operators in the field of Supply Chain Management in Central India.
Micropark as an organization works for achieving the highest level of customer satisfaction on a continuous basis. Customer Orientation is core to all the processes involved in area of its operation. Due to its process driven approach Micropark Group is one of the first organizations in Central India to receive ISO 9000:2001 certification across its sister concerns. The groups entry in the field of supply chain management started with one of its sister concern M/S Mehadia & Sons being appointed as the C & F agents for M/S SMITHKLINE BEECHAM in the year 1984. Since then Micropark as a group has grown into a Logistic Solution provider for around 20 companies of high repute in Pharmaceutical, Automobile, Consumer durables & FMCG sectors.
PRODUCTS
Mahindra & Mahindra is known for its in utility vehicles, commercial vehicles & personal vehicles. In order to clearly differentiate the segment in which Mahindra is playing, the company has divided all its products into 3- different channels. 1. Channel 1 personal -SUV 2 .Channel 2 prosper UV 3. Channel 3MIL LCV Channel 1 Personal: - This segments categories for personal Use or family use Scorpio & Logan are in Channel 1 Different Variant ScorpioM2Di (more mileage diesel engine PS, LX (PS, PW, AC Trittabled S DX (LX +Rear Wiper, Black Cladding, Fog lamp) SLX (DX+MP3, Self Color Cladding, Alarm System) V-Series VLS (SLX + Alloy Wheel+ m-Hawk Engine, Cruise Control, Tyre- tonics, Intellipark, Rain Sensor, Light Sensor, Audio Control on steering, Immobilizer) VLX (SLX + VLS) Logan -GL (AC) GLE (AC PS) GLX (1.4) GLX (1.6) GLS (AC, PS PW, CL, Remote Locking, Mp3, Fog lamp, Air bags) DLE (AC, PS) DLX (AC, PS, PW, CL) DLS (DLX + GLS) Note: - (GL, GLE, GLX, GLS) were Petrol model. (DLE, DLX, DLS) were Diesel model. CHANNEL 2: Prosper: - This segment categorized for Commercial purpose. Hard Top, Soft Top, Pick-up, 3-wheelers are in Channel- 2 Soft Tops: Commander Hard Tops: -Savari Maxx Festara Maxx Passenger
Bolero: DI DIZ (AC, Suspension) SLE (AC, Suspension PS) SLX (AC, PW, CL, MP3) Pick-up:-Maxx Pick-up Maxx Maxi Truck Flat Bed Single Cabin Double Cabin 3-wheelers: Mahindra champion Alfa Mahindra Champion Pick-up passenger (3+1), (6+1) CHANNEL-3:-MIL:-- This segment Categories for LCV (Light Commercial Vehicles) Mahindra & Mahindra gone in collaboration with International Truck Ltd.No.1 Truck. Company in USA having the production of almost 1.5 Lacs of Trucks Per annum. The new firm is known asMIL (Mahindra International Ltd.) Mahindra DI 3200 Mahindra Load king Load Career a) 6T HSD (High Side Desk) b)6T FSD (Fixed Side Desk) c) 4T HSD d) 4T FSD e) LWB 6T Load King Super (6T) CAB & CHASSIS Vikrant (9+1, 12+1, 14+1) Passenger & School Bus Tourister 17 Str. School & Passenger 25 Str. School & Passenger 34 Str. School & Passenger 42 Str. School & Passenger AmbulanceT. 17 Str. Delivery VanPlatform
CAR MODELS Mahindra Bolero Mahindra Bolero Camper Mahindra Bolero Inspira Mahindra Bolero Stinger Concept Mahindra Scorpio Mahindra Scorpio Getaway Mahindra Scorpio First Mahindra Xylo Mahindra Legend Mahindra MM550 XD Mahindra-Renault Logan (in cooperation with Renault) Mahindra Axe Mahindra Major Mahindra Souvenir Concept Mahindra Commander Mahindra Grand Vitara Mahindra DI Mahindra Cab Chassis
Number of departments:
M&M automotive have various departments: Human Resource Department Finance department Marketing department Production department
UNNATI MOTORS at Amravati branch having departments: Human Resource Department Finance department Sales and Marketing Department Technical Repairing Shop
Number of employees:
M&M employees around 11,600 people. There are 30 employees are working in unnati motors Amravati branch, divided in various departments.
HR POLICIES:
The HR Policy aims to enable executives to reach their full potential through appropriate placement / assignment, supported by education and training. This will help them contribute fully to the success of the Mahindra Group's businesses and sustained profitable growth. Thrust areas of Training & Development Initiatives 1. Customer-centric Corporation 2. Global Managers Programme after identification of talent pool 3. Leadership and leading change 4. People Management - Coaching & Mentoring - Managing Conflicts, Team Working 5. Innovation 6. Strategy 7. Technology Orientation 8. Leadership Communication Programme for Executives 9. Multi-functional General Management Programmes. 10. Marketing for Non-Marketing functions. 11.Finance for Non-Finance functions 12. 'The Mahindra Way' - A Manager's Induction Programme into the Mahindra Group. Shadow Boards The Mahindra Group follows a unique practice called Shadow Boards to help anticipate change, and throw out outmoded ways of thinking and working. This practice ensures that young high potential managers are more involved in the planning process of the Company. Their mandate is to discuss and give recommendations on major issues, both strategic and operational, and identify critical success factors. Shadow Boards impact our work in the following ways:
Voice out-of-box views of Generation Next Challenge established modes of thinking Offer new perspectives and insights
The Mahindra Group offers a number of High Value Leadership Lifecycle Programmes for leadership development at key transition points for Managers. 'Bodhivriksha' (a place of enlightenment), is a world-class, in-house Management Development Centre that has been set up to promote business values and leadership skills at Nashik. High Value Programmes There are a number of programs at the corporate level for high potential talent. The two that deserve particular mention are as follows: 1. Global Managers Programme Programme Objective: To provide insights into understanding globalization and its impact on industry To appreciate the nuances of International Trade and Finance To give a perspective on International Marketing, Branding and Strategic Planning To understand the importance of cross-cultural sensitivity Key Programme Content: International Marketing & Strategic Selling Customer Relationship Management Cross-cultural Sensitivity - Cultural Nuances in China, South Africa, USA, Europe and Middle East Four T's: Training, Transfer, Teams and Travel Global Marketplace: Implications for domestic/global marketing strategies/projects Scenario Planning Nuances of Legal and Contract Issues 2. Customer-centric Corporation Programme Objective: To help understand consumer preferences, perception and behavior To set frameworks for new product development To help understand brand equity To create unique value for the targeted customer Key Programme Content: Understanding customer expectations Capturing the voice of customers of the Mahindra Group - Benchmarking studies, J. D. Power, CSI etc.
Setting frameworks for new product development Positioning for competitive advantage Creating value for competitive advantage Co-creating value through experience 'Bodhi Vriksha' - Mahindra Management Development Centre The potential for learning is limitless. This is the spirit of Bodhi Vriksha, the Mahindra Management Development Centre. Established in 1999, this residential training facility for the Mahindra Group's management staff aims to promote business values and leadership skills. This is in keeping with the Group's belief that systems and practices must be upgraded constantly to keep pace with the dynamic business environment.
Vision:
To create a fully collaborative environment in which suppliers can deliver exactly what the company needs, when it needs it, and at a competitive cost.
Mission:
To create India's largest automobile and automobile-related products distribution network by providing dealers and customers with the largest choice of unique world-class products and services.
We don't have a group-wide mission statement. Our Core Purpose is what makes all of us want to get up and come to work in the morning.' - Anand G. Mahindra
Introduction:
While doing SIP in unnati motors for Mahindra and Mahindra automotive, I decided to study of marketing strategy and depth analysis of the Mahindra scorpio mHAWK. Mahindra mHAWK is the advanced model of Mahindra scorpio. Mahindra scorpio is best SUV (sports utility vehicle) by mahindra. In 2002 Scorpio was launched. Scorpio look is better and it is spacious and luxurious, which after launched shows consistent increased growth in selling and is more accepted by the customers.
India Italy France Spain Portugal Turkey Sri Lanka Nepal Bangladesh Egypt Russia Malaysia South Africa Chile:-The Scorpio Pick-up is the first passenger vehicle of the Mahindra brand to be offered in Chile, and both were presented to the press the night of July 25th 2007 Mahindra Scorpio SUV & Pick-Up range launched in Brazil
Product training
The product training includes understanding the functions and knowing the physical location of the following parts (same as I had at Scorpio m-Hawk during induction).... ENGINE In the engine I carefully studied the location & functions of the following parts: 1) Cylinder & Cylinder head 2) Fuel Injection Pump & Injector 3) Fuel Filter & Air filter 4) Turbo Charger & Intercooler 5) Radiator & Water Pump 6) Coolant recovery tank & Thermostat DRIVELINE In Driveline the following things were located and studied: 1) Clutch 2) Gear Box 3) Propeller Shaft 4) Differential RUNNING SYSTEM
In running system the following parts were located and studied: 1) Brakes (both Drum & Disc) 2) Suspension (both Independent & Rigid) After the Product Training My following doubts got clearedTurbo Charger The basic function of TURBO charger is to provide more air at higher pressure to the engine for better combustion. Thus to improve power ratio and better envision. Note:-Turbo charger is nothing to do with recycling to used/exhaust gases.
SCORPIO
In 2000 Company adopted a new logo. In 2002 Scorpio was launched. Scorpio look is better and it is spacious and luxurious. Scorpio engine has one of the highest BHP/litre amongst all diesel vehicles sold in India. Scorpio m-HAWK engine is 100 kg less than all CRDe. It has one of the highest BHP/Litre amongst all diesel vehicles sold in India. Scorpio has the best 0-60 kmph & 0-100 kmph figures and highest top speed and rapid acceleration. In 2003 Scorpio received national award for R&D. In 2004 Scorpio launched in Latin America, Middle East and South Africa. M&M launched CRDe in Scorpio in 2005(1st Indian Auto Manufacture).and Car of the year. In 2006 Scorpio Hybrid was unveiled at Delhi Auto Expo. All new Scorpio with 43 new Features, Scorpio crossed 1 lakh production mark, and Global Launch of Scorpio Pick-up in South Africa. Scorpio position in Car plus Category with the Tag line Nothing else will do. Scorpio marched in to (Kenya) M7M set up centralised call centre for customer centricity in 2007 and Scorpio V-series launched Nov. 30 2007.Scorpio was the highest selling SUV in year 2007. Overview Mahindra Scorpio: FUEL EFFICIENCY City Mileage -Highway Mileage -Fuel Capacity -Fuel Type ENGINE PARAMETERS Displacement-Bore-Stroke -Cylinder Configuration -Valve Gear Operation -Compression Ratio -No. Of Valves -Aspiration -Fuel System -Horse Power -Torque -DIMENSIONS Length -Height -Width -Wheelbase -4495 mm 1975 mm 1817 mm 2680 mm
9.4 kmpl 13.9 kmpl 60 litre Diesel 2609 cc 94 mm 94 mm 4-inline Pushrod 18.5:1 8 Turbo-charged CRDi 115@3800 ps@rpm 277.52@2200 Nm@rpm
m-Hawk engine is 100kg less than CRDe. It is made up of ALLUMINIUM ALLOY. m-hawk Engine oil Capacity=6.5 litre CRDe =6 litre m-Hawk has =2.2 (2200cc)cubic capacity =120bhp (break horse power) =4*28.6 torque* Torque=force*radial displacement. To give more power and to move crump
For Turbo Engine following things should be followed for the betterment of engine:* After starting and turning off engine, let it works on low RPS at least for 1 minute. * In CDRe only Maximile Supreme Oil should be added. * Power Steering Oil should be changed per 80000 km or once in a year. * Gear box and Differential oil changing time... SCORPIO-15000km ,CRDe-20000km There are two types of engine:1. COMPRESS IGNITION (CI) 2. SPARK IGNITION (SI)
OBJECTIVES:
To create a new segment. Finding potential customers. To provide an excellent value preposition to the customer. Increase the desire of customers to buy the product. To promote the product.
METHEDOLOGY:
MARKETING STRATEGIES First and foremost, they tried to provide a status of Pajero in Scorpio at affordable price. In another intelligent step, shadow endorsement was done which doesnt shout Mahindra. Advertising, Public Relation, Mass medianothing was left to make brand popular. Scorpio adopted penetrative pricing strategy positioned between 5-7 lakhs. As they were targeting urban areas, stronger distribution channels were needed. Scorpio was launched in phase manner i.e. first in metros and then other cities were covered so as to ensure the attention towards main market first.
SEGMENT MARKETING
A market segment consists of a group of customers who shares a similar set of needs & wants. Thus we distinguished between car buyers who are primarily seeking low cost basic transportation, those seeking driving skills & performance. We must be careful not to confuse a segment & a sector. A car company might say that it will target young, middle income car buyers. The problem is that young, middle-income car buyers will differ about what they want in a car, some will want a low cost car, other will want an expensive car. Young middle-income car buyers are a sector, not a segment. The marketers doesnt create the segments, the marketers task is to identify the segments and decide which one (s) to target. Segment marketing offers key benefits over mass marketing. The company can presumably better design, price, disclose & deliver the product or services to satisfy the target market. The company also can fine tune the marketing programme & activities to better reflect competitors marketing. However, even a segment is partly a fiction, in that not everyone wants exactly the same thing. Market segment can be defined in many different ways, one way to crave up the market to identify preference segments. Suppose ice-cream buyers asked how much they value sweetness & creaminess as to product attributes. Three different patterns can emerge:1. Homogeneous Preference A market where all the consumers have roughly the same preference. The market shows no natural segments. We would predict the existing brands would be similar & cluster around the middle of the scale in both sweetness & creaminess. 2.Diffused Preference Consumers indicating that consumer vary greatly in their preference. The first brand to enter the market is likely to position itself to the most people. A second competitor could locate need to the first brand and fight for the market share or it could locate in a corner to attract a customer group that would not satisfied with the centre brand. There are several brands in the market, they are likely top position themselves throughout the space and show real difference to match difference in consumer preference. 3.Cluster Preference The market might reveal district preference cluster called natural market segments. The first firm in this market has three options. It might position in the centre hoping you to appeal all groups. It might position in the largest market segments (concentrated market). It might developed several brands each positioned in a different segment. If the first firm developed into only one brand, competitors would enter & introduce brands in the other segments.
WHY SEGMENTATION?
1) To utilize marketing response effectively, we use segment concept 2) Maximum output, we ensure by this concept in marketing
PROSPECT GENERATION: There are three types of call that should be in place in a dealership for prospect generation:1) Cold Calls 2) Follow-up Calls 3) Market development Calls Cold Call Meeting a customer, who can be a prospective buyer of vehicles? He has yet not shown his purchase intention. The data may or may or may not be available at the dealership. This refers to an activity where the FSC while covering his regular territory Personally meets prospective buyers who could be......... First Time Buyer Existing Vehicle Owner going for second purchase
Replacement Buyer Basic of Cold Calls Based on the Demography of his territory, an FSC physically visits Institution e.g.: a) Profession (e.g. Doctors, Engineers, Lawyers) b) Income group Individuals (e.g. > 5 lacs p.a.) c) Age Group etc. Based on the Potential available, as FSC physically visits Institutions e.g.: 1. Schools 2. Poultry Farms 4. Distributors & Shop Keepers 5. Travel agents or Courier Services 6. Traders 7. Service Providers 8. Missionaries 9. Tour Operators 10. Hospital 11.Transport Operators 12.Hotels 13.Call Centers 14.Charitable Trusts 15.Small Industries 16.Corporate Houses
17.Dairy Farms 18.Govt. Department These Cold Calls should be focused on the requirement of vehicle Specific to the sector concerned. It is recommended that based on monthly retail target, the Cold call target Should be calculated Follow up Call Meeting a customer, who has already shown his intent to purchase a Vehicle? The customer data is available at the dealership. FSCs will fill up / update CDIF (Hard Copy) Why making follow up visit on a prospect. The same will be updated in the software on his return from the tour. During a Follow up Call, an FSC will be visiting prospects personally and not through telephone. Follow up Call target will be based on the number of Leads in hand or carried forwarded from the previous month and also the number of leads to generated during the month the travel plan for an FSC will be based on the status of total Lead-in hand (Hot Warm & Cold). Also the frequency of visit to prospects will be high for Hot 7 Warm Leads and relatively lesser for cold Leads As stated above, number of Follow up Calls will be based on visiting Hot Leads at least weekly, Warm Leads at least for nightly and Cold Leads once in month Hot Leads: Enquiry likely to be matured within 15 days. Warm Leads: Enquiry likely to be matured within 60 days. Cold Leads: Enquiry likely to be matured beyond 60 days. Market Development Call The call may lead to meeting up party, who may not buy vehicles for himself. Yet he can influence of vehicle (s) in his area of influence / control This refers to an FSC visiting 1) Banks 2) NBFCs 3) Office Bearers 4) Unions 5) Govt. Departments 6) Opinion Maker 7) Local Mechanics/ Garages 8) Surveyors 9) DSA/DMA etc and also doing something different to capture customers Mind Share/ expansion of the Industry. What should be the focus? For effective working and easy achievement of sale target all 3 types of calling should be focused but to know where is our dealership lagging proper review of Ingenious Sales Format along with discussion of sales executives concerned should be done
Activity Demo: - It is an activity through which we give information about the product, price, etc. by explaining the points to the customer or either in their door step or in the dealership. Road Show: - It is an activity in which the vehicle or vehicles in a group taken to the particular spots for give demo. Loan Mela: - It is an activity which is done by Bank or Private Finance to give loan to the customer on the spot for any purpose. Advertisement Advertisement is the most important part of enquiry generation. Through advertisement most of the people get aware about the product. Advertisement is done through News Papers, Hoarding, Media, etc. This is more expensive of generate enquiry. One should optimise in order to make the business profitable. For E.g.:- When Alfa Passenger came into the market, we know through the Advertisement, that Alfa Passenger is going to be launched.
Conclusion
Finally all in all it was a great learning experience with UNNATI MOTORS Ltd. an authorized dealer of MAHINDRA at Amravati. The practical work which I had will definitely have a great impact on shaping my careers in future. The incredible pool of information which I could share of the sales marketing, consumer behavior etc. the different practical marketing approaches followed will always help to my cause.