1. Presented by:
Dr. Gaveshna
Dr. Manpreet
Dr. pallavi
Shivani goel
Rahul Raj
Tarun kumar arora

2. Introduction:Mahindra and Mahindra
 A major automobile company in India
 Flagship company of Mahindra group

3. The Mahindra Group is a $ 4.5 billion *
conglomerate is a leading manufacturer of
multi-utility vehicles with significant presence in
key sectors like farm
equipments, infrastructures, information
technology and financial services.
The Group has leading presence in many key
sectors:-
1)Automotive (Mahindra& Mahindra LTD.)
2)Farm equipment (Mahindra Tractors)

4. 3) Mahindra trade and Financial Services (Mahindra Inter
trade Mahindra &Mahindra Financial Services Ltd
4) Mahindra Systems and Automotive Technologies
(Mahindra Engineering Services, Mahindra Ugine )
5) Information Technology (Tech Mahindra,
Bristlecone) and Infrastructure Development
(Mahindra GESCO, Club Mahindra Holidays,
Mahindra World City).

5. Is Scorpio a new product or an
example of line extension?

6.  Product line – A group of products
within a product class that are closely
related because they :
• Perform a similar function
• Are sold to the same customer groups
• Are marketed through the same outlets
or channels
• Fall within given price ranges

7. Product development- two types
 New products range from new-to-the-world
products that create an entirely new market
at one end, to
 minor improvements or revisions of existing
product at the other.

8. Yes ,SCORPIO is a new product
development.
 As before the launch of Scorpio, Mahindra &
Mahindra image was a big barrier.
 It only covers semi-urban and rural markets
in India.
 In 1990‟s the company was experiencing
loss of share.

9. Objectives of this new
product development
 To create a new segment and retain
market domination
 To differentiate offering i.e. to provide an
excellent value proposition to the
customer
 To become a significant global player in
the chosen product category
 To optimize project cost

10. Deriving forces which leads
to the new product
development
 India enjoys a distinct cost advantage
with respect to auto-ancillary
manufacturing capabilities.(Indian labor
cost is only around 8-9% of sales)
 MUV as a % of the overall passenger
car market was just 16% in 2001.
 Consumers want to consume premium
imagery at prices affordable to them.

11.  Untapped niche: Mahindra was lacking
in products that catered to the modern
urban consumer needs.
 The market was moving from traditional
multi utility ,non-luxurious vehicles to
luxurious vehicles.

12. To achieve these purposes, the
company started the product
development process termed IDAM-
Integrated Design And Manufacturing.

13.  The company „Mahindra &Mahindra‟
launched the new vehicle successfully in
2002 under the brand name..
SCORPIO

14. Urban market was showing more potential
for vehicle sales and UVs were gaining
higher acceptability in urban areas
International UVs were entering the
market and competition was getting tougher
The market was moving from traditional
multi utility , non luxurious vehicles to
luxurious vehicle …….

15. From consumer perspective
 customer preferred big size as its
stands for status .
 Consumer seeks latest technology
 Customer wants the sheer thrill and
passion of driving an SUV but at
affordable price

16. From context of Mahindra
 Mahindra (in late 1990s) a leader in UV
segment was losing their market share .
 Global player were entering in the
market and aggressively launching
products
 Mahindra share of business was largely
from semi urban and rural market of
India

17.  Mahindra sales come from institutional
sales army , police , military groups
 They had wide product port folio but
was lacking in product that catered to
modern urban consumer needs
 The market where Mahindra was strong
were stagnating …..

18. Mahindra image………..
 Mahindra image was a big barrier there
brand were not seen as modern and
technological advance .
 there image was uncomfortable , rough
, not easy to drive ,

19. So management decided to launch
scorpio with a following objectives
 to create a new segment and retain market
domination .
 To differentiate offering that is to provide an
excellent value proposition to customer .
 To optimize project cost .

20.  There was no SUV in the country that
the masses could buy .
 So based on consumer research
Mahindra found to make SUV‟s a mass
concept in India seen as comfortable
, easy to drive , and imaginary
comparable to international brand.

21.  So to make Mahindra and Mahindra
known world wide for the quality
, durability , and reliability , of its product
and services and to dominate in the
niche UV market they decided to launch
scorpio .

22. POSTIONING OF
SCORPIO
 Scorpio as a powerful vehicle with a
sporty look among the premium car
consumers
 Luxury of car , thrill of SUV
 Make good quality vehicles
 Create to drive
 Proud to own

23. RATIONAL BENEFITS – world class vehicle ,good looks
, car like comfort , great value
VALUE BENEFITS – ownership experience of
thrill, excitement ,power relational benefits
RELATIONAL BENEFITS – young , modern , premium
,city companion/extension of lifestyle
BRAND PROMISE – luxury of a car , thrill of an SUV

24. Advertising and promotion strategy
 “Nothing else will do”
 Scorpion king
 Media coverage on IDAM approach
, people behind Scorpio world class
technology etc

25. CREATE SOCIAL
RESPONSIBILITY
SCORPIO EVENTS

29. 2002:Scorpio STD
and DX:

30. 2003:The new scorpio

31. 2004:Scorpio Slx

32. 2005:Scorpio Crde

33. 2006:43 new features

34. 2007:VLX

35. 2007:LX

36. 2008:Scorpio automatic

37. 2009:The new ICONIC Scorpio

38. 201O Mahindra interior

39. 2011 SCORPIO LX 4×4

40. ANOTHER AUTOMOBILE
COMPANY THAT COULD
LEARN FROM “PROJECT
SCORPIO

41. CHALLENGES FACED BY “PROJECT
SCORPIO”
 Positive but unfavorable brand
Image .
 Negative parameters
* Uncomfortable and rough.
* Not easy to drive and
* Rural imagery.

42. STRATEGIES ADOPTED
 Proper market research
 ADOPTED UNIQUE PROCESS i.e.
IDAM
 Strong positioning
 Competitive price advantage .

43. AUTOMOBILE COMPANY THAT COULD
LEARN FROM “PROJECT SCORPIO” IS
MARUTI SUZUKI

44. WHY MARUTI SUZUKI ??
 Both Mahindra & Mahindra and Maruti
Suzuki have positive brand image but
unfavorable to cater luxury segment.
 Like “Project Scorpio” Maruti Suzuki can
stretch upward by introducing new product
line i.e. SUV‟s.
 Innovation in terms of technology .
 Educating customer about novel concept of
their SUV‟s by choosing right media mix
and promotion activities.

45. CURRENT STATUS

47. Domestic Market Share for 2010-
11
 Passenger Vehicles 16.25
 Commercial Vehicles 4.36
 Three Wheelers 3.39
 Two Wheelers 76.00