SCORPIO

(DEVELOPING A WORLD-CLASS PRODUCT

FOR THE INDIAN MARKET)

Nikesh Gadewar
INTRODUCTION
About Mahindra & Mahindra
Type : Public Company.

Founded: 1945.

Headquarters: Mumbai, India.

Key people: Keshub Mahindra (Chairman),

Anand Mahindra (Vice-Chairman & Managing
Director)
Industry: Automotive,Farm Equipment.
Revenue US$ : 10 billion (2009 H1)
COMPANY’S GOAL (BEFORE GLOBALIZATION)
(1945-1991).

 Dominate utility Vehicle market in india(rural)

 To be a Global Niche player in UV market.

 To be known worldwide for Quality, Durability,

Reliability.
 Retain domestic market leadership with over
50% market share in UV segment.
AUTOMOBILE MARKET
AFTER 1991
Loss of market share
Entry of global players
Aggressive competition
Market of mahindra stagnating(rural
& semi urban).
No product for urban market.
High growth in urban market.
STRATEGIES OF M&M
 To continue to dominant rural and semi-
urban market with range of product for
low cost, mass transportation.
 Develop strong presence in fast growing
urban market with range of products.
PROJECT SCORPIO OBJECTIVE
 To create a new segment and retain market domination
by differentiating its offering vis-à-vis MNCs and
to offer an excellent value proposition.
NEW PRODUCT DEVELOPMENT
PROCESS
 Unique process called IDAM.
 Best in the world tie-ups, but in-house execution

 Customer focus from thought to finish.

 A cross –functional ,co-located ,young ,lean team.

 Lowest project cost

 Intensive testing

 All manufacturing set up .

SCORPIO-HIGHLIGHTS
 India’s First Indigenously Developed SUV
 It Was Launched In June 2002.
 M&M Started Work On Project Scorpio From
1997.
 It Was Designed To Target Urban Market To
Fulfill The Demand Of Passenger Car As Well
As SUV Fans And Having Comfort And
Elegance
 The UV’s Design Fall Between Passenger Car
And SUV Called “Car Plus”
DEVELOPMENT OF
INFRASTRUCTURE
•Set up plant at Nashik at a cost of $120 million and capacity was
40000 units.
• Three new world class lines were set up at the plant of manufacture
component.
• A paint shop ,collaboration with Durr of Germany.
• Company developed integrated design and manufacturing (IDAM)
system.
•Entire system of production was fully automated and company have
well trained workers.
Development of Scorpio
 Made survey and collect customer preference
and perception for designee and feature .
 Introduction of Quality Function
Development(QFD) Process.
 Created a benchmark according to world
class SUV’s
a) Big size
b) Latest technology
c) Affordable Price
d) Have thrill and passion in driving
e) Have Luxury
f) International vehicles define image
 THE TEAM DEVELOPMENT AND
FUNCTION
•The Team Was Having 120 Members Of Average Age 27 Years
Of 19 Teams.
•Apart From Traditional Approach ,They Worked
Crossfunctionaly.
•The Team Had Holistic View.

•Teams Were Made Responsible For Cost , Quality And

Performance.
•Cost Target Was Given To Each Team,called ‘Designed To
Cost’.
TESTING AND VALIDATION
 74 Vehicles Made For Testing .

 Components Were Tested With Its Combination.

 Passed Through Nova-c.

PRICING STRATEGY
 Competition with Accent , ikon, corsa,
esteem,qualis,saffari,sumo etc
 It had to adopt a penetrating pricing strategy

 So 5-7 lack Rs.

DISTRIBUTION STRATEGY

 Serve less markets but serve them well

 Phased launch

-Mumbai , Banglore , Delhi & Chennai

-within 4 months 20 cities
-within a year 50 cities
RESPONSE

 Achieved its target market share & sold 9000 in the 1st 9
months of its launch
 Advertising positioned Scorpio as a powerful vehicle
with a sporty look
 High recall for scorpio as well as for mahindra

 It has edged out most SUVs in the NFO customer

satisfaction survey and is currently the largest selling
SUV in the country
THE MARKETING STRATEGIES

Segment -- SPORT UTILTY VEHICLE

" It targeted individual car buyers in the top-end small car
segment and mid-size car segment, who already owned
cars and were ready to invest in another vehicle
Scorpio was positioned as a UV with great power and style
that offered "the ultimate driving experience, driving thrill,
luxury and comforts of a passenger car along with value
for money. CAR PLUS
 BRANDING

The brand had to compete with the top global brands. A

decision to create
Scorpio as a strong stand alone brand was taken. The brand
name represented the core values desired. Mahindra was
used as a source reassurance (promising reliability, trust
and dependability) Scorpio stood for
modernity, International technology and the attitude of
desiring the best (Nothing else will do)
 SWOT
strength
• Strong brand image
• Outsourcing
• Lower price as compare to other
• Car plus promotion strategy
• World class vehicle
• Global appeal
• Large domestic market
• Attractive pricing.
• Cross functional team.
opportunity
• To grow in B segment .
• growth in urban market.
• Create more products and capture
market.
weakness
• Highly dependent on outsourcing
• Less product portfolio.
• One manufacturing unit .
• They have taken more time to know
market situation.
Threats
• Competition from foreign players &
Indian players.
• Maintenance of low cost
Do you support Mahindra’s decision to enter urban SUV
market?
Yes,
•Because, Growth opportunity was high in Untapped Suv market
in Urban India.
•Its Rural market share was stagnating with entry of global
players.
•It was losing market share.

•It allows firm to compete with global players.

•Presence in urban market.

•Develop Brand image.

CAN M&M SUSTAIN THE GROWTH
ONLY ON THE PEDESTAL OF SCORPIO
No, it must build competitive advantage over others by
Bring Innovation in scorpio brand (delivering superior
value).
Introduce new brands (Increase Product Portfolio).

Parallelly also focus on rural markets.