CASE STUDY OF MAHINDRA

Presented By:Deepa shah vigVinni badolaMukul Singh PundirAarzoo DuaDikshaIshaan

FACTS OF THE CASE

1) 1942 Hindustan motor was setup and 1945 premium automobile was set up in India2) Imports were liberalized 3) Growth in supply of cars in Indian Market4) Foreign manufacture of cars have 70% localized manufacture parts5) Many MNC has started exporting Components made in India to there other plants across the world6) 1991 Indian automobile was open for foreign manufacturer of cars7) new models fiat,santro,lancer,ford ikon were launched in emerging market of India8) In 2002,100% FDI in automobile sector, remove capital investment for fresh entrance9) 3 million car produce in 1999 rose to 5 million in 200210) 90.2% share by economy segment and rest by luxury segment

ABOUT MAHINDRA

1) 1990 M&M was losing market share against global players in Indian market2) M&M share from largely from rural to semi-urban market3) M&M was not seen as model and technological advance4) They decided to launch a new product with following objectives a) create a new segment and retain market domination b) differentiating offering c) To optimize project cost d) Develop strong presence in urban market with range of product with value for money e) To compete with global players it started the “PROJECT SCORPIO”

PROJECT SCORPIO

1) Unique process IDAM( Integrated design and manufacturing)-A product development process to deliver world class, zero defect product

2) Customer focus from thought to finish

3) A cross functional,co located young lead team

4) Lowest project cost

5) Intensive testing

6) All new manufacturing setup

7) Entire value chain starting and ending with the customers. This ensure that product is design around the customers and not vice versa.

MILESTONE OF THE PRODUCT

Global alliance

Customer Focus

Young lean Learn

Low project Cost

Intensive testing

Manufacturing setup

MARKETING STRATEGY OF SCORPIO

1st year of launch1) To capture 22% of premium hard top market in 9 months2) To sell 12,000 Scorpio in 9 months

Within 3 year of launch 1) To capture 45% of premium hard top market 2) To sell 24,000 units 3) To make Mahindra emerge as a true urban player

Q&A

Q1 Is Scorpio a new product or line of extension????Answer: Yes, Scorpio is a new product development a) As before the launch of Scorpio M&M image was big barrier b) Before Scorpio, there was no SUV car of Mahindra so it was new product for them c) created a new segment and retain market domination.

Q2 Evaluate the management decision to launch Scorpio??

Answer: The main decision that management took was to launch Scorpio was that to create a new segment of product .To fulfill the basic psyche of Indian customer who wanted value for money and develop strong presence in urban market with product that can compete with existing global player in same market.

It was found that semi luxurious cars segment was growing rapidly at rate of 42.9% so this compel M&M to launch a differentiated product in same category to compete existing players and offer value to the money for customers.

• Q3: What is your opinion of Scorpio as a brand name and its positioning in India????

Answer: Scorpio as a brand, dynamic looks, powerful presence and semi luxurious SUV which has rapidly grown in the segment of customers seeks to thrill and drive SUV at affordable price and value for money. It had develop its presence as a strong and reputed SUV in the Indian market over the years with increasing number of satisfy customers.

POSITIONING IN INDIA:“To position the vehicle as a rare combination of luxury and brute force”

This positioning, in a way, combines the value propositions of Toyota Qualis as a “family car” and Tata Safari as a “rugged vehicle” and yet it is distinct from the others in the competitive set. Another advantage of this option is that this option is clearly different from “ruggedness” yet not too far from it so it fits in with the positioning of Mahindra in the minds of the consumers and yet gives Scorpio an identity which is different from that of Mahindra since the luxury element is added to the mix

• Q4 Take another automobile company in today’s competitive scenario and what can they learn from project Scorpio???

Answer: The company that can learn from project Scorpio is MAURTI SUZUKI, like “PROJECT SCORPIO” it can stretch upwards by introducing new product line that is SUV’S by innovation in term of technology and they can introduce there first product in SUV segment deriving from project Scorpio in Indian context

STRENGTHS

1) Good performance for long distances2) Powerful player in the taxi/rental segment3) Good presence in the rural areas4) Excellent branding and advertising, and low after sales service cost5) Maintenance cost is low as compared to other companies

WEAKNESS

1) Limited international market2) Mahindra lacks in premium customer service3) No visibility in hatchback segment

OPPURTUNITIES

1) Developing hybrid and fuel efficient cars2) Rising rural demands3) Newer innovations4) Increasing purchasing power of customers5) Manufacturing cars in the hatchback and

also in sedan segment

THREATS

1) Intense competition. 2) Government regulations and policies for automobile.3) Increasing fuel prices4) Rising Input Costs5) Competition for public transport

SWOT

MAHINDRA DESIGNERSFOR THE LOVE OF

CREATIVITY

A ONE STOP SHOP FOR DESIGNER INTERIORS

WHY MAHINDRA DESIGNERS?• We give personalized furniture products• A designer range at affordable price• Best quality furniture• Updated designer fittings• A 3D pre purchase view• Superb after sales services• Selective options for new customers• Easy online selections• Special designer catalogues• A designer experience• A recognized brand name and goodwill

YES, WE ARE DIFFERENT..!!

BCG ANALYSIS

Low Line of 3rd High

Low

High

Line of

10%

MARKET SHARE

IR

30% I GI N GI= GODREJ INTERIO(23%)N=NILKAMAL(32%)I= IKEA(7.7%)

LINKS USED

• MARKET SHARE OF GODREJ INTERIO IS 23% 2015• http://brandequity.economictimes.indiatimes.com/news/business-of-brands/godrej-interio

-to-shell-out-rs-300-cr-in-domestic-market/49583471 • GROWTH RATE OF FURNITURE INDUSTRY IS 30% 2015• http://www.indiawood.com/market_scenario.html

• MARKET SHARE OF NILKAMAL IS 32%• http://economictimes.indiatimes.com/markets/stocks/news/improving-margins-may-earn-

nilkamal-re-rating/articleshow/54775660.cms• MARKET SHARE OF IKEA IS 7.7% • http://www.ikea.com/gb/en/this-is-ikea/newsroom/press-release/ikea-continues-to-grow-in

-the-uk/ 

LINE STRETCHING

• Bedroom• Desking• Study room• Modular• Marriage Décor Package• Dining room• Living room• Storage • Mattress• Home accessories• Seating• Kitchen

Mahindra Designs

LAUNCH STRATEGIES • Tie up with top two interior designers• Give the employment opportunities to the final year interior designer students – Price

cutting strategy• National TV advertisement mainly in the prime hours• 3D virtual planner – customers can visualize the furniture and fittings at their home• Mobile application – Where the customers can click the picture of their home and our expert

designers team will give a picture of their home with our interiors• Online customer service – We will active a chat option and provide a small form where the

website guest can fill the contact details and requirements• The block game – we can provide a mobile game where the user can design the home

décor according to the pieces of pictures given• The festive deals – Diwali, Holi, Christmas etc..• Pre festival online offers• Special discounts for the online buyers – directly from the company’s website• Warrantee facility till 2 years – Free** Conditions apply• Tie ups with Builders and real estate – They can choose the design

• Non Branded local furniture stores

• Lack of brand awareness

• Acute competition

• Growing nuclear family trends

• Increase in company revenues

• Capturing another product line of market

• A lot of Research & Development required

• Lack of innovation

• Online competitors

• Mature market

• Discovery product line• Variety vs. Idea• Strong brand

recognition & goodwill

Strengths

Weakness

ThreatsOpportunities