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SCORPIO FROM MAHINDRA

Geared Up For Success

Presented By : Group 3 Section E

Achal Dugar
Mayank Sinha
Shimona Siwatch
Priyansh Acharya
Chinmaya Ranjan Ray
What we will learn in this
case???

• How a new product development is initiated ??

• What are the ingredients needed for a


successful PRODUCT LAUNCH ??

• How value preposition can be strengthened


through strategic branding ??
Why INDIA is a HOT target for
international car manufacturers
• Cost of Labor is very low .

• 100 % FDI for automobile


industry.

• Presence of customers for


every kind of car segment
i.e. from economy segment to
luxury segment.
Major Players in Utility Vehicle

SHARE IN PERCENTAGE (02-03)

18 MARUTI
55 HYUNDAI
TATA
13 FORD
8 6 OTHERS
WHAT A CONSUMER WANTS IN
Utility Vehicle
• Customer preferred big sizes as it stands for
status.

• Consumers seeks latest technology.

• Customer wants to drive an SUV (Sports


Utility Vehicle) but at an affordable price.

• Luxury is the top most priority.


An STP Analysis Before The
Launch Of Scorpio [ANOTHER STP IS DONE AT 14TH SLIDE]

• They Segmented the market into


RURAL and the SEMI URBAN.

• They found most of the sales from


Army, Police, Paramilitary forces etc.

• They were positioned as a tough,


reliable and economic vehicles but not
technologically advanced.
As their market share starts
declining, management came with
following objectives…

• To create a new segment .

• To provide an excellent value preposition


to the customer.

• To optimize project costs.


• Based on the consumer research Mahindra
found that there still exists an untapped
market i.e. of SUV’s {Sports Utility Vehicle}
…….

• And from there, success story of SCORPIO


started with the vision :-
To be a global niche player and to continue
the domination of UV market.
Problems Faced During The
Project Scorpio

• To develop the presence in urban market


without losing the dominance in rural
market.
• The project cost has to be optimized as
they don’t had the deep pockets as other
MNC’s had.
• To develop a product which is affordable
and provides greater value.
Product Development Process Of
Scorpio
• IDAM {Integrated Design and
Manufacturing } process was used to
develop a zero-defect, trouble free product.

• Supplies were from the outside but the


product was Indian.

• Project cost was $120 m. Only one fifth of


the cost that MNC incurs.
Product Development Process Of
Scorpio
• Scorpio was tested and re-tested again
and again till every component has the
right combination and form.

• New manufacturing facility was set up in


Nashik to ensure quality product at the
end of the line.
MARKETING STRATEGIES OF
MAHINDRA
• 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 doesn’t
shout Mahindra.
• Advertising, Public Relation, Mass
media…nothing was left to make brand
popular.
MARKETING STRATEGIES OF
MAHINDRA
• Scorpio adopted penetrative pricing strategy
positioned between 5-7 lakhs.

• As they were targetting 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.
STP Analysis After The Launch Of
SCORPIO
• Segmented the market between rural, semi urban
and the new one “URBAN”.

• Targeted the luxury car buyers & upper middle


modern car buyers as the price were kept as low as
between 5 to 7 lacs.

• Positioned Scorpio as a powerful vehicle with a


sporty look among the premium car consumers
Objectives Set For the Scorpio
• To make Mahindra emerge as a true urban
player.

• To capture 22 % of premium market in first


year and 45% within 3 years.
PORTER’S FIVE FORCES
ANALYSIS
Threat from Buyers LOW / Favorable Getting SUV at such an
affordable price

Threat from Suppliers HIGH / Unfavorable Car is manufactured


through global alliance
of companies each
company handling
different sets of areas
Threat from LOW / Favorable No presence of SUV’s
Competitors at this price

Threat from New HIGH/ Unfavorable Govt. has approved 100 %


FDI and minimum capital
Entrant investment for new entrant
has been removed

Threat from Substitutes Moderate / Moderately Presence of MUV,


favorable Sports bikes etc
The SCORPIO Impact on M&M
• Revenue of Mahindra increased from Rs
1827cr. to Rs. 2511cr. with better returns
to their share holders.

• Profit also zoomed up from Rs. 102 cr. to


147 cr. in FY 03.
THANK YOU