scorpio pm

7/31/2019 Scorpio PM

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PROJECT SCORPIO

Indias First IndigenousSUV


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Indian Market

UV market share was 18%

Car Market was 82%

Always car dominant market

But M&M was dominating in UV segment


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Strengths of Mahindra

Dominant in the UV market.

Known as tough, rugged, reliable &most suitable for

terrain

Had a huge market share in rural and semi urbanmarket


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Strategy to look at urban customers

Project Scorpio team was formed.

With average age of 27.

Customer needs were identified.

Benchmarking with world class SUVs.

Buying factors were analyzed.


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Customer expectations of B & C segment

Size and good looks.

Latest technology.

Affordable price.

Thrill and passion in driving.

Power of vehicle.

Luxury.


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Pre-launch strategy

All dealership looks were upgraded.

Training of sales and service personal at thedealership.

Sufficient test drive vehicles were made available atdealerships.

Separate launch programs for press, vendors, dealersand staff.

Based on market segments different versions weredesigned.


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Development

Scorpio development did not stop at launch

Re-launch of improved Scorpio

Mighty muscular Scorpio with M-Hawk engine.


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Market Share of UV segment

Late 1990s- Once a market leader , now witnessing loss.Now facing global competition


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The Scorpio Project

New plant setup in Nasik spread over 120 acres

Capacity 40,000 units annually on a 2 shift basis

Set up cost - 120 million USD

Infrastructure wise three new state of the art line weredeveloped for production

A unique process called IDAM was taken up

Best in the world tie ups were done but in houseexecutions.


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IDAM was foundation ofMPDS

Dynamic Mfg system-Allowed the manufacturer toproduce what customerswanted.

Flexible manufacturingallowed large number ofproduct mix

Idea- easier to make what youcan sell than to sell what youmade

Aimed to streamlined deliveryof world class zero defectproduct

Entire system was automated

Ensure Final product of highquality

Integrated Design And Manufacturing(IDAM)


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Strategy

Competition with Accent , Corsa, Ikon, Esteem

Qualis, Safari, Sumo

Had to Adopt penetrative pricing stratergy

SUV- Priced between Rs.5-7 Lacs

Phased LaunchMumbai, Bangalore, Delhi & Chennai

Within 4 months -- 20 cities

Within a year -- 50 cities


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Scorpio Impact on M&M

Scorpio launched on June 19th,2002.Mahindra was losing market share- share priceRs100 .

Launch of Scorpio, things started looking different

37% increase in revenue- from Rs. 1827 cr in 2002to Rs. 2511 cr in 2003

Increase in profit -47 % Share prices in 2003 Rs 400

Recd many awards


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Suppliers

M&M chose worlds top suppliers: Fukui, Fuji,Wooshin, Durr, Lear, Visteon, Bridgestone etc.

Suppliers did not play just an ancillary role

A manufacturing rarity

Innovative sourcing system to lower the cost

M&M played the role of an integrator


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Product Development Process

Cross-functioning method

Made sure there is zero manufacturing difficulties

Project teams asked customers wanted Cost targets with best quality achieved

Extensive testing and re-testing made Indias firstSUV unique

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