strategic marketing :scorpio

Group Group membersmembers Kush RupaniKush Rupani

Luve RupaniLuve Rupani Puneet MehtaPuneet Mehta Rajat BhardwajRajat Bhardwaj VikashVikash

Introduction:Mahindra and Introduction:Mahindra and MahindraMahindra

A major automobile company in A major automobile company in indiaindia

Flagship company of Mahindra Flagship company of Mahindra groupgroup

In late 1990s:witnessed fast loss of In late 1990s:witnessed fast loss of market share market share

Strengths & Strengths & weaknessesweaknesses

STRENGTHS-Rugged, Tough , STRENGTHS-Rugged, Tough , Reliable , economical vehicle etcReliable , economical vehicle etc

WEAKNESSES-Uncomfortable , WEAKNESSES-Uncomfortable , Rough , not easy to drive, Rural Rough , not easy to drive, Rural imagery, down market etcimagery, down market etc

Mahindra contextMahindra context

OBJECTIVES:OBJECTIVES: To create a new segment and retain To create a new segment and retain

market dominationmarket domination To differentiate offering-i.e to To differentiate offering-i.e to

provide excellent value proposition provide excellent value proposition to the customerto the customer

To optimize project costTo optimize project cost

Consumer prespective for Consumer prespective for UVUV

Customer preferred big size it Customer preferred big size it stands for statusstands for status

Consumers seek latest technologyConsumers seek latest technology

Thrill and passion of driving a SUV Thrill and passion of driving a SUV at affordable pricesat affordable prices

TO Focus the customerTO Focus the customer

Mapped the market potential of the Mapped the market potential of the various vehicle categoriesvarious vehicle categories

Visited the market and met the Visited the market and met the customerscustomers

Customer requirement was Customer requirement was converted into product specificationsconverted into product specifications

Customer inputs were taken at every Customer inputs were taken at every stagestage

visionvision

A vision to continue the domination A vision to continue the domination of the utility vehicle market in of the utility vehicle market in india;to be a global niche playerindia;to be a global niche player

key achievements of key achievements of processprocess

A unique process called IDAMA unique process called IDAM Best in world tie ups Best in world tie ups Customer focus from thought to Customer focus from thought to

finishfinish A cross functional ,young ,lean teamA cross functional ,young ,lean team Intensive testingIntensive testing All new manufacturing set upAll new manufacturing set up

TOTAL PROJECT COSTTOTAL PROJECT COST

120 MILLION US DOLLARS120 MILLION US DOLLARS This was only 5This was only 5thth that world’s major that world’s major

players have spent on the same players have spent on the same projectproject

74 vehicles were built only for testing74 vehicles were built only for testing The product took 5 years to The product took 5 years to

materialise from a concept to the final materialise from a concept to the final product. product.

"We are extremely proud of the Scorpio and "We are extremely proud of the Scorpio and are sure that it would make both are sure that it would make both customers and car makers think seriously customers and car makers think seriously about the SUV segment. We have about the SUV segment. We have anticipated the potential of the SUV anticipated the potential of the SUV segment and believe that the strong value segment and believe that the strong value proposition the Scorpio offers would make proposition the Scorpio offers would make it a winner."it a winner."

Anand Mahindra, vice chairman and Anand Mahindra, vice chairman and managing director, M&M, in June 2002managing director, M&M, in June 2002

"As a product mix, it is a perfect fit. I "As a product mix, it is a perfect fit. I would rate it seven on a scale of 10."would rate it seven on a scale of 10."

Bijoy Kumar Y, Editor, Business Bijoy Kumar Y, Editor, Business Standard Motoring magazineStandard Motoring magazine

Marketing strategyMarketing strategy

First year launchFirst year launch To capture the 22% of the premium To capture the 22% of the premium

hard top market in 9 monthshard top market in 9 months To sale 12000 scorpio in feb.03To sale 12000 scorpio in feb.03 To make scorpio brand recall score To make scorpio brand recall score

to achieve 50 pointsto achieve 50 points

Within 3 years of launchWithin 3 years of launch

To capture 45 % of the premium hard To capture 45 % of the premium hard toptop

To sell 24000 units in feb.04To sell 24000 units in feb.04

To make mahindra merge as new To make mahindra merge as new urban playerurban player

Strategic branding Strategic branding approachapproach

Scorpio did not take the traditional Scorpio did not take the traditional approachapproach

It needed to be seen like car to appeal It needed to be seen like car to appeal car buyercar buyer

It offered superior It offered superior technology ,dynamicc look,value for technology ,dynamicc look,value for moneymoney

Fuel efficieny,power style,space Fuel efficieny,power style,space luxury,comfort like a carluxury,comfort like a car

Advertising and promotion Advertising and promotion strategystrategy

29 days 29 states29 days 29 states

““Nothing else will do”Nothing else will do”

Scorpion kingScorpion king

Speedster Speedster

Media coverage on IDAM Media coverage on IDAM approach,people behind Scorpio,world approach,people behind Scorpio,world class technology etcclass technology etc

Images were shot in Australia to Images were shot in Australia to provide international feelprovide international feel

CRM plan- Pack on filling up scorpio CRM plan- Pack on filling up scorpio club form, satisfaction surveys, club form, satisfaction surveys, Events, Rewards program etc Events, Rewards program etc

Pricing strategyPricing strategy

Competition with Accent , ikon, Competition with Accent , ikon, corsa, esteem,qualis,saffari,sumo etccorsa, esteem,qualis,saffari,sumo etc

It had to adopt a penetrating pricing It had to adopt a penetrating pricing strategystrategy

So 5-7 lack Rs.So 5-7 lack Rs.

Distribution strategyDistribution strategy

Serve less markets but serve them Serve less markets but serve them wellwell

Phased launchPhased launch

-Mumbai , Banglore , Delhi & -Mumbai , Banglore , Delhi & ChennaiChennai

-within 4 months 20 cities-within 4 months 20 cities

-within a year 50 cities-within a year 50 cities

ResponseResponse

Achieved its target market share & sold Achieved its target market share & sold 9000 in the 19000 in the 1stst 9 months of its launch 9 months of its launch

Advertising positioned Scorpio as a Advertising positioned Scorpio as a powerful vehicle with a sporty lookpowerful vehicle with a sporty look

High recall for scorpio as well as for High recall for scorpio as well as for mahindramahindra

It has edged out most SUVs in the NFO It has edged out most SUVs in the NFO customer satisfaction survey and is customer satisfaction survey and is currently the largest selling SUV in the currently the largest selling SUV in the country country

Scorpio buyer profileScorpio buyer profile

Scorpio managed to pull out Scorpio managed to pull out customers from the C segment of customers from the C segment of vehiclesvehicles

AwardsAwards

Scorpio was awarded various from various Scorpio was awarded various from various bodies such asbodies such as

“ “CAR OF THE YEAR 2003CAR OF THE YEAR 2003””- from Business Standard Motoring, CNBC from Business Standard Motoring, CNBC

AUTOCARAUTOCAR “ “BEST SUV OF THE YEAR” BEST SUV OF THE YEAR”

-BBC World Wheels -BBC World Wheels The Scorpio receive the Best Off roader The Scorpio receive the Best Off roader

vehicle of the year 2009 award vehicle of the year 2009 award

2002:Scorpio 2002:Scorpio STD and DX:STD and DX:

2003:The new 2003:The new scorpioscorpio

2004:Scorpio Slx2004:Scorpio Slx

2005:Scorpio Crde2005:Scorpio Crde

2006:43 new features2006:43 new features

2007:VLX2007:VLX

2007:LX2007:LX

2008:Scorpio automatic2008:Scorpio automatic

2009:The new ICONIC 2009:The new ICONIC ScorpioScorpio

Thank youThank you