scorpio from mahindra
TRANSCRIPT
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SCORPIO FROM MAHINDRAGeared Up For Success
Presented By : Group 3 Section E
Achal DugarMayank Sinha
Shimona SiwatchPriyansh Acharya
Chinmaya Ranjan Ray
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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 ??
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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.
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Major Players in Utility Vehicle
SHARE IN PERCENTAGE (02-03)
5518
1368
MARUTIHYUNDAITATAFORDOTHERS
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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.
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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.
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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.
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• 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.
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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.
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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.
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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.
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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.
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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.
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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
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Objectives Set For the ScorpioObjectives Set For the Scorpio
• To make Mahindra emerge as a true To make Mahindra emerge as a true urban player.urban player.
• To capture 22 % of premium market in To capture 22 % of premium market in first year and 45% within 3 years.first year and 45% within 3 years.
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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 Competitors
LOW / Favorable No presence of SUV’s at this price
Threat from New Entrant
HIGH/ Unfavorable Govt. has approved 100 % FDI and minimum capital investment for new entrant has been removed
Threat from Substitutes
Moderate / Moderately favorable
Presence of MUV, Sports bikes etc
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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.
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THANK YOU
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