1

MAkkL1ING LAN CN MAnINDkA SCCkIC

Submitted by
kLLS (098A128)

A PR0}FCT RFP0RT

Submitted in partial fulfillment of
the requirements for the
TFRH PAPFR
Under the guidance of
Dr CLLMLN1 SUDnAkAk M8A Mh|| hD
AssoclaLe rofessor
School of ManagemenL

%eclared as a deemed Lo be unlverslLy under sec 3 of Lhe uCC AcL 1936)

karunya nagar ColmbaLore641 114

NCVLM8Lk 2009


CLk1IIICA1L

1hls ls Lo cerLlfy LhaL Lhe ro[ecL enLlLled 'Market|ng |an Cn Mah|ndra Scorp|o' submlLLed
by Mr kees (keg No 098A128) for Lhe Lerm aper ln MasLer of 8uslness AdmlnlsLraLlon Lo Lhe
karunya unlverslLy karunya nagar ColmbaLore 641 114 ls a record of 8onaflde work carrled ouL
by hlm durlng Lhe perlod 9


Dr SAMULL CSLn Dr CLLMLN1 SUDnAnAk
%AdmlnlsLraLlve CoordlnaLor) %aculLy Culde)


lace
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CerLlfled LhaL Lhe candldaLe was examlned by us ln Lhe ro[ecL work and vlvavoce LxamlnaLlon
held on _______________________ aL karunya unlverslLy karunya nagar ColmbaLore 641 114



3

ACkNCWLLDGLMLN1


We glve all Lhe glory Lo our LCkD GCD AlmlghLy for guldlng and belng wlLh us and helplng us
compleLe Lhls pro[ecL successfully

We Lhank our Chancellor Dr au| Dh|nakaran for hls consLanL prayer and supporL We also
Lhank Lhe vlceChancellor Dr au| Appasamy and Lhe 8eglsLrar Dr Anne Mary Iernandez for her
supporL

We Lhank Lhe lrecLor of Lhe School of ManagemenL Dr S Samue| oseph We are also
Lhankful Lo our menLor for Lhe guldance he gave for our pro[ecL

We are lndebLed Lo our ro[ecL Culde and Class advlsor Dr C|ement Sudhakar M8A
Mh|| hD for hls valuable guldance and lnLeresL LhroughouL Lhls pro[ecL

lnally we Lhank our beloved arents hearLlly for Lhelr consLanL supporL prayer and
encouragemenL We also Lhank our Ir|ends for Lhelr supporL and encouragemenL


4

bout 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).

Employees 16,000 plus

Website Mahindra.com

Mahindra & Mahindra Limited is part oI the Mahindra Group, an automotive, Iarm
equipment, Iinancial services, trade and logistics, automotive components, aIter-market, IT
and inIrastructure conglomerate. The company was set up in 1945 as Mahindra &
Mohammed. Later, aIter the partition oI India, Ghulam Muhammad returned to Pakistan and
became that nation's Iirst Iinance minister. Hence, the name was changed Irom Mahindra &
Mohammed to Mahindra & Mahindra in 1948.
Initially set up to manuIacture general-purpose utility vehicles, Mahindra & Mahindra
(M&M) was Iirst known Ior assembly under licence oI the iconic Willys Jeep in India. The
company later branched out into manuIacture oI light commercial vehicles (LCVs) and
agricultural tractors, rapidly growing Irom being a manuIacturer oI army vehicles and tractors
to an automobile major with a growing global market. At present, M&M is the leader in the
utility vehicle (UV) segment in India with its Ilagship UV, the Scorpio (known as the
Mahindra Goa in Italy).
M&M is India's largest SUV maker.
Business
Mahindra & Mahindra grew Irom being a maker oI army vehicles to a major automobile and
tractor manuIacturer. It has acquired plants in China and the United Kingdom, and has three
assembly plants in the USA. M&M has partnerships with international companies like
Renault SA, France and International Truck and Engine Corporation, USA.
3

M&M has a global presence
|
and its products are exported to several countries. Its global
subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc., Mahindra
South AIrica and Mahindra (China) Tractor Co. Ltd.
M&M is one oI the leading tractor brands in the world. It is also the largest manuIacturer oI
tractors in India with sustained market leadership oI over 25 years. It designs, develops,
manuIactures and markets tractors as well as Iarm implements. Mahindra Tractors(China)
Co. Ltd. manuIactures tractors Ior the growing Chinese market and is a hub Ior tractor
exports to the USA and other nations. M&M has a 100 subsidiary, Mahindra USA, which
assembles products Ior the American market.
M&M made its entry into the passenger car segment with the Logan in April 2007 under the
Mahindra Renault joint venture. M&M will make its maiden entry into the heavy trucks
segment with Mahindra Navistar, the joint venture with International Truck, USA.
M&M's automotive division makes a wide range oI vehicles including MUVs, LCVs and
three wheelers. It oIIers over 20 models including new generation multi-utility vehicles like
the Scorpio and the Bolero.
At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an
aggressive product expansion program that would see the launch oI several new platIorms
and vehicles over the next three years, including an entry-level SUV designed to seat Iive
passengers and powered by a small turbodiesel engine. True to their word, Mahindra &
Mahindra launched the Mahindra Xylo in January 2009, and as oI June 2009, the Xylo has
sold over 15000 models.
Also in early 2008, Mahindra commenced its Iirst overseas CKD operations with the launch
oI the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was
soon Iollowed by assembly Iacilities in Brazil. Vehicles assembled at the plant in Bramont,
Manaus, include Scorpio Pik Ups in single and double cab pick-up body styles as well as
SUVs.
The US based Reputation Institute recently ranked Mahindra among the top 10 Indian
companies in its 'Global 200: The World's Best Corporate Reputations' list.
Mahindra is currently gearing up to sell the Scorpio SUV and pickup starting in the Fall oI
2009 in North America, through an independent distributor, Global Vehicles USA, based in
Alpharetta, Georgia. Mahindrahas announced it will import pickup trucks Irom India in
knockdown kit (CKD) Iorm to circumvent the Chicken tax. CKDs are complete vehicles that
will be assembled in the U.S. Irom kits oI parts shipped in crates.
ards
1. Bombay Chamber Good Corporate Citizen Award Ior 2006-07
2. Businessworld FICCI-SEDF Corporate Social Responsibility Award 2007
3. Deming Prize
6

4. Japan Quality Medal in 2007
Models
O Mahindra Bolero
4 Mahindra Bolero Camper
4 Mahindra Bolero Inspira
4 Mahindra Bolero Stinger Concept
O Mahindra Scorpio
4 Mahindra Scorpio Getaway
4 Mahindra Scorpio First
O Mahindra Xylo
O Mahindra Legend
O Mahindra MM550 XD
O Mahindra-Renault Logan (in cooperation with Renault)
O Mahindra Axe
O Mahindra Major
4 Mahindra Souvenir Concept
O Mahindra Commander
O Mahindra Grand Vitara
O Mahindra DI
O Mahindra Cab Chassis
ore Business ctivities
O Automotive
O Farm Equipment
O Systech
O Financial Services
O InIormation Technology
O InIrastructure Development
O AIter-Market
O Two-wheelers
O Mahindra Partners Division
O Specialty Services
Commun|ty In|t|at|ves
O Mahindra United World College oI India
O Mahindra United, a Iootball club based in Mumbai, Maharashtra
O Mahindra Foundation
O K. C. Mahindra Education Trust: Nanhi Kali




bout Mahindra Scorpio
The Mahindra Scorpio is an SUV manuIactured by Mahindra & Mahindra Limited, the
Ilagship company oI the $6.3 billion Mahindra Group. It was the Iirst SUV Irom the company
built Ior the global market. The Scorpio has been successIully accepted in international
markets across the globe, and will shortly be launched in the US.
The Scorpio was conceptualized and designed by the in-house integrated design and
manuIacturing (IDAM) team oI M&M. The car has been the recipient oI three prestigious
awards - the "Car oI the Year" award Irom Business Standard Motoring, the "Best SUV oI
the Year" by BBC World Wheels and the "Best Car oI the Year" award, again, Irom BBC
World Wheels.
The making of the Mahindra Scorpio
Prior to the mid-nineties, Mahindra & Mahindra was an automobile assembly company. The
company manuIactured Willys Jeeps and its minor modiIied versions (modiIications carried
out in India). In 1996, the company planned to enter the SUV segment with a new product
which could compete globally. Since M & M didn't have the technical know-how to make a
new age product, they devised a whole new concept among Indian auto companies. Roping in
new executives such as Dr. Pawan Goenka and Alan Durante who had worked in the auto
industry in western countries, the company broke the rule that says automakers must design,
engineer and test their own vehicles (spending millions oI dollars in the process). The new
Mahindra Scorpio SUV had all oI its major systems designed directly by suppliers with the
only input Irom Mahindra being design, perIormance speciIications and program cost. Design
and engineering oI systems was done by suppliers, as was testing, validation and materials
selection. Sourcing and engineering locations were also chosen by suppliers. The parts were
later assembled in a Mahindra plant under the Mahindra Badge (as Mahindra is a well known
brand in India in the MUV segment). Using this method the company was able to build a
Irom scratch a new vehicle with virtually 100 percent supplier involvement Irom concept to
reality Ior $120 million, including improvements to the plant. The project took 5 years to
move Irom concept to Iinal product.
In April 2006, the company launched an upgraded Scorpio dubbing it the 'All-New'
Scorpio. In June 2007, Mahindra launched a pick-up version in India known as the Scorpio
Getaway.Recently, M & M has launched a Iace liIted version oI the model.
Exports
The Mahindra Scorpio is sold across the world in countries such as:
O India
O Italy
O France
O Spain
O Turkey


O Sri Lanka
O Nepal
O Bangladesh
O Egypt
O Russia
O Malaysia
O South AIrica
O Qatar
O Brazil
O Chile: The Scorpio Pick Up is the Iirst passenger vehicle oI the Mahindra brand to be
oIIered in Chile, and both were presented to the press the night oI July 25, 2007.
In Western Europe, so as not to conIuse the vehicle with a previous Ford vehicle oI the same
name, it is called the Mahindra Goa.
Safety
A new Mahindra Pick-Up model being introduced to Australia mid-09 will have additional
saIety Ieatures to the current model, such as ABS Brakes and Airbags which should elevate
its rating to a minimum oI 3 stars Irom the current 2 star ANCAP rating.
Future
Soon aIter the success oI the Scorpio, Mahindra launched an upgraded Scorpio with plush
seats and rear centre arm rest, dual tone exterior colour and various minor changes.
At the Auto Expo 2006, Delhi, Mahindra showcased their Iuture plans on the Scorpio model
by showcasing a Hybrid Scorpio with CRDe engine and a Scorpio based on a pick-up truck.
The Hybrid, the Iirst such vehicle developed in India was developed by Arun Jaura, a Iormer
Ford employee. His senior, Dr. Pawan Goenka, a Iormer GM engineer currently heads
Mahindra's automotive division and looks aIter the overall Scorpio project.
In November 2007, Mahindra launched a teaser campaign Ior their new Scorpio Model, the
mHawk on their oIIicial website.
On April 14, 2008, Mahindra revealed a concept oI a diesel-electric hybrid version oI their
Scorpio SUV at the 2008 SAE World Congress.
21st Sep 2008 Mahindra launched their latest Scorpio with 6 speed automatic transmission
gears.
Mahindra has Ior a while had plans on exporting to the United States, possibly with a diesel-
electric hybrid. In 2006 it entered into an agreement with Global Vehicles USA to import and
distribute Mahindra vehicles. It now plans to release a modiIied Pick-up version oI the
Scorpio (currently unnamed due to copyright issues with the Ford Scorpio) in the US by the
end oI 2009. This vehicle is projected to cost in the low $20,000s.
9

First year of launch
O 8Scorpio to capture 22 per cent oI the premium hard top market in F03 (9 months)
O Sell 12000 Scorpios in F03 (9 months)
O Mahindra unaided brand recall score to increase by 22 pts (deIined in terms oI Brand
Track study scores)
O Scorpio brand recall score to achieve 50 points (in W4)
nd generation
SpeciIications: 120 horsepower
6-speed auto
O Wheelbase: 105.5 in (2,680 mm)
O Length: 176.9 in (4,493 mm)
O Width: 71.5 in (1,816 mm)
O Height: 77.8 in (1,976 mm)
O Base curb weight: 3,850 lb (1,750 kg) (CG estimate)
ithin three years of launch
O Scorpio to capture 45 per cent oI the premium hard top market
O Scorpio to sell 24,000 units in F04
O Mahindra to emerge as a true urban player
vervie Mahindra Scorpio's:
Make Mahindra
Model Scorpio
Variant 2.6 LX 9-seater
Body Type SUV
Number of doors 5
Fuel EIIiciency
ity Mileage 9.4 kmpl
Highay Mileage 13.9 kmpl
Fuel apacity 60 litre
Fuel Type Diesel
Fuel Grade -


1

Engine Parameters

isplacement 2609 cc
Bore 94 mm
Stroke 94 mm
ylinder onfiguration 4-inline
Valve Gear peration Pushrod
ompression Ratio 18.5:1
No. f Valves 8
spiration Turbo-charged
Fuel System CRDi
Horse Poer 1153800 psrpm
Torque 277.522200 Nmrpm

Steering and Suspension

Steering Type Rack and pinion, power assist
Poer Steering Yes
Front Suspension 2WD Independent, Coil Spring,Anti Roll Bar
Rear Suspension Multilink, Coil Spring

imensions

Length 4495 mm
Height 1975 mm
idth 1817 mm
heelbase 2680 mm
learance 180 mm


11

ST nalysis
Strength
O India's Iirst BS IV Car.
O Revolutionary Micro-Hybrid Technology.
O PowerIul mHawk Diesel Engine.
eakness
O EIIortless Acceleration.
O Fire Retardant Upholstery.
O Excellent Driving Experience.
Threats
O Automatic Transmission only on Top-End Variant.
pportunities
Mahindra vehicles have gone on display to auto enthusiasts around the world,
participating in prestigious automobile shows in Paris, Rome, Bologna, Johannesburg
and So Paulo.
STP nalysis
Segment
A BRAND is a thought, and launching brands can be a great growth strategy Ior any
corporate. But, it takes two to tango. A brand Iounded on a good idea needs to be built with
an ever-evolving gameplan. A case in point is the launch oI the sports utility vehicle (SUV),
Scorpio, by Mahindra & Mahindra (M&M).
When Scorpio hit the streets, it arrived as an SUV with a `car plus' package. Two-and-a-halI
years later, it has caused a paradigm shiIt in its category. Equipped with a savvy marketing
strategy, the brand has not only grown the SUV market, but almost touched base with the `C'
class cars segment (Rs 5 lakh and upwards.)
According to automobile manuIacturers' data, the premium utility vehicle segment grew at
approximately 14 per cent up to June 2002.
With the launch oI Scorpio, the growth rate Irom July 2002 to March 2003 rose to about 51
per cent. Between April 2003 and March 2004, the segment grew by 33 per cent.
Positioning
1

attract a lot oI cross-over customers. Unlike Ior its competitors in the UV category, people
who wished to purchase a C class car would also consider a Scorpio," says Hormazd
Sorabjee, Editor, :9ocar India.
Cut to market expansion oI premium utility vehicles against `C' class cars. Out oI the total
number oI premium utility vehicles and `C' segment cars put together, premium UVs
accounted Ior about 21 per cent during the year 2000. The Iigure touched 49 per cent this
year.
"The Scorpio launch did play a signiIicant role in driving the UV market up. This to me is the
ultimate measure oI success - the ability oI a company to drive the growth oI markets,"
remarks Abraham Koshy, ProIessor oI Marketing, Indian Institute oI Management,
Ahmedabad.
Marketing gurus suggest that the positioning oI Scorpio was also very bold and innovative.
Mahindra Scorpio Pick Up secures third position in T2 category oI Rally dos Sertoes in
Brazil
Target
The track monitors `high value' consumers, and registers those who are in the SEC A and B
categories, while 67 per cent oI the sample size is Irom the top eight metros; the rest Irom the
next 50-60 towns across India.
Sales too has been zooming, says the company. According to brand-wise data, the company
claims to be matching sales oI most C segment cars, even outselling some oI them. In the last
six months, M&M sold 14,389 Scorpios, against a total C segment sales oI 79,346, according
to company data.


PEST nalysis
Political
O Taxation Policy
O Government Policy
Social
O Give good quality to their customers
O Providing oIIers to its retailer and customers
13

O Providing liIe style product
O Change the customer attitudes and opinions
Economy
O Launch low cost car in rural areas
O Launch economy related brand
O Launch power Iull car in the market so customers make good image in their mind

Technological
O Provide new innovative product to their customers
O Provide the compete ting technology
O Provide new technology to their worker


14

Market Mix

The soIt tops sales, which were Mahindra`s strength, were stagnating. Hard top vehicles like
Sumo and Qualis were garnering market share. The urban market was showing more
potential Ior vehicle sales and UVs were gaining higher acceptability in urban cities. The
competition was getting tougher with international UVs entering the market. And also
operating in the urban market meant competing with cars.
The market was moving Irom traditional multi utility, non-luxurious vehicles to luxurious
vehicles. M&M had launched Bolero in 2000 to cater to this newly emerging segment.
However, to add to the category`s woes, it declined at the rate oI 3.1 percent in year 2001
over year 2000. UVs as a percentage oI the overall passenger car market was just 16 per cent
in 2001. This simply meant that Ior attaining the volumes, Scorpio needed to look beyond
UVs in terms oI competitive Iramework to decide on a marketing strategy.

ompetitive

The conventional UV market was too small in size. The UV market in urban markets was
even smaller a percentage. The trend was that the UVs operating in the urban market were
eating into the car share, primarily the cars which operated in the same price bracket. Qualis
was taking market away Irom midsize cars. With these Iacts in place the whole oI automobile
market was studied in details.

In the arena oI cars, A-segment cars, which have been the leaders in terms oI volumes and
grew at the rate oI 55.2 percent in the year 1999, were having a reduced growth rate oI 34.2
13

percent in the year 2001. It was Iound that the Iastest growing segment (growing at the rate oI
42.9 per cent) in year 2001 was semi luxurious cars or B segment cars. And the luxurious car
segment i.e. C segment cars were also growing at a healthy rate oI 14.2 percent in that year.
However, super premium cars termed as segment D and E cars, were not growing at such
healthy rates and did not oIIer volume in terms oI number oI cars sold.
It was imperative Ior Scorpio to look beyond UVs. Apart Irom appealing to a typically UV
buyer, it was also necessary to appeal to a wider target audience - prospective car buyers
belonging to 5 lakh and 5 lakh segment. The midsize car market (C class) which was in the
Rs. Five to Seven lakh price bracket had grown in F`00 at 36 per cent and in F`01 at 22 per
cent, and small luxury car segment (B class) which was up to Five lakh segment was also
showing a healthy growth.

Analysis showed that the volumes in the automobile industry were coming Irom B and C
segment cars. This meant that the mid size car market was the competitive arena Ior Scorpio
Ior it to attain the volume growth and market share it was looking Ior. It was decided that the
oIIer had to appeal to segment C buyer and should be aspirational Ior segment B buyers.
ThereIore, an analysis oI the oIIers oI all the segment C cars and the relevant UVs was done.
The table below summarises the analysis:

Interpretations: All the vehicle are Ieature packed within a price range oI Rs. 6-8 Lakhs. All
oI them, including UVs, are with a proposition oI luxury and comIort, with no diIIerentiation.
Implication: With this analysis it came out clearly that the positioning oI Scorpio has to be
such that it should communicate that the vehicle is better than any oI these cars and is a better
buy in terms oI money.
onsumer

Having deIined the competitive Iramework, the next task undertaken was that oI analyzing
the consumer. Consumer segments oI B and C category car buyers were analyzed in terms oI
their expectations Irom a car, their perceptions about cars and their relationship. Proprietary
techniques oI research, oI the advertising agency InterIace Communications, like Mind &
Mood, ICON and VIP were used to understand this consumer. The Iindings were:
Size matters-
O big size stands Ior status
O Consumers seek latest technology
O Imagery but at aIIordable price
O The sheer thrill and passion oI driving an SUV
O Power oI the vehicle makes a statement
O But along with the others, luxury was a very important parameter
O International vehicles deIine imagery
16

O SUVs like Pajero, Land Cruiser and Prado are seen as urban vehicles Ior the rich and
Iamous
O Consumers aspire to own these vehicles as the imagery oI these vehicles has become
very desirable
The Key Consumer Insight that emerged Irom all the consumer analysis and which
was used Ior strategy development was 'Consumers want to consume premium
imagery at prices aIIordable to them
ompany
The Mahindra Scorpio is an SUV manuIactured by Mahindra & Mahindra Limited, the
Ilagship company oI the $6.3 billion Mahindra Group. It was the Iirst SUV Irom the company
built Ior the global market. The Scorpio has been successIully accepted in international
markets across the globe, and will shortly be launched in the US.
The Scorpio was conceptualized and designed by the in-house integrated design and
manuIacturing (IDAM) team oI M&M. The car has been the recipient oI three prestigious
awards - the "Car oI the Year" award Irom Business Standard Motoring, the "Best SUV oI
the Year" by BBC World Wheels and the "Best Car oI the Year" award, again, Irom BBC
World Wheels.
ontext
SUVs in India have a tough terrain to navigate given that competition means a traIIic jam oI
car brands on the road. It`s in this context that a SUV brand like Scorpio deserves mention. It
had its glorious era, but it doesnt match with the new age and new look suvs oI the modern
times. Tavera, Innova, Tuscan, Endeavour and to some extent Scorpio rank much better in
looks.Scoprio may loose somewhat in comIort, but saIari seems overall out oI context. OII
course, these are my personal views.
ollaborator
Deliver value through integration, collaboration and synergy within the Mahindra group.
"We have been an advocate oI technology as a pivotal pillar on our journey towards enabling
business excellence," said Mr. Arvind Tawde, Senior Vice- President and CIO, Mahindra &
Mahindra, "We cherish the continuing evolution oI this long-standing relationship; together
we hope to take this relationship to newer heights oI collaboration and co-innovation."
This agreement extends SAP's position as a leader in providing comprehensive enterprise
soItware Ior the automotive and manuIacturing industries. The ability to rapidly integrate
new operations resulting Irom mergers and acquisitions, shiIt supplies due to changing
demand and collaborate across a business network oI partners is vital to companies as they
strive Ior market share and greater proIitability in the industry.

1

Place
Mahindra & Mahindra has emerged as a well-known tractor brand in the US. It is now
planning to launch the Scorpio in the US sports utility vehicle market.
Mahindra Automobiles have a strong and growing presence in international markets
Yugoslavia,
Bangladesh
Sri Lanka
Australia
Uruguay
South AIrica in 2004 (Mahindra South AIrica)
Europe in 2005 (Mahindra Europe)
Mahindra vehicles have gone on display to auto enthusiasts around the world,
participating in prestigious automobile shows in Paris, Rome, Bologna, Johannesburg
and So Paulo.
In 2006 Mahindra announced that it would be the Iirst Indian automobile
manuIacturer to enter the world`s most demanding and critical market USA.
Price

MODEL PRICE (in INR)**
LX 735500
M2DI 691100
SLE 834500
SLX-4WD 972100
VLX BS3 2WD 938700
VLX BS3 2WD-Air Bag 958000
1

VLX BS3 4WD 1015100
VLX BS3 4WD-Air Bag 1034400
*Note : Any other levies or taxes iI applicable are extra.
For exact prices, please contact our dealerships.
Prices are applicable within the speciIied city limits only.
All prices are subject to change, and Mahindra Scorpio reserves the right to modiIy the prices
at its discretion at any point in time.
Promotion
The creative strategy was to drive home the Car Plus` positioning Iorward. There was a need
to leverage on product strengths. And a need to establish car plus story. Hence the product
was to be the hero in all communications
The tone and manner was to help associate the brand with the modern and urban liIestyle.
The TVCs as well as the press still-shots were shot in Australia to provide an international
city Ieel. This brought in the international, premium, up-market association Ior the brand.
Product
O Mahindra Scorpio
4 Mahindra Scorpio Getaway
4 Mahindra Scorpio First
Model
O LX
O M2DI
O SLE
O SLX-4WD
O VLX BS3 2WD
O VLX BS3 2WD-Air Bag
O VLX BS3 4WD
VLX BS3 4WD-Air Bag

19



Market summary

The conventional SUV market was too small in size. The SUV market in urban markets was
even smaller a percentage. The trend was that the SUVs operating in the urban market were
eating into the car share, primarily the cars which operated in the same price bracket. Qualis
was taking market away Irom midsize cars. Mahindra vehicles have gone on display to auto
enthusiasts around the world, participating in prestigious automobile shows in Paris, Rome,
Bologna, Johannesburg and So Paulo. In 2006 Mahindra announced that it would be the Iirst
Indian automobile manuIacturer to enter the world`s most demanding and critical market
USA. The tone and manner was to help associate the brand with the modern and urban
liIestyle. The TVCs as well as the press still-shots were shot in Australia to provide an
international city Ieel. This brought in the international, premium, up-market association Ior
the brand. Since the Scorpio was targeted at an urban clientele it needed a stronger
distribution presence in Metros and urban areas. Hence, the distribution channel had to Iocus
on providing an appealing experience Ior modern car buyers and on oIIering international
standards oI auto retail.
evelopment
Made survey and collect customer preIerence and perception Ior designee and Ieature
Introduction oI quality Iunction development (qId) process
Create the benchmark according to word class suva`s
O Big size
O Latest technology
O AIIordable size
O Have thrill and passion in driving
O Have luxury
O International vehicles deIine image
riticism
Some companies said that Mahindra & Mahindra did not have the capacity to provide
vehicles in house
No crash testing
Mahindra & Mahindra did not re-designed its product
Technology


Collapsible steering column & split intrusion beams
Crash protecting crumple zones and child locks
Fire resistant upholstery
Voice assist system, vehicle security system & remote locking/unlocking
Tubeless tyres
Poly coated grand deck
STYLE
Bonnet scoop
Air extractor
Two tone interiors
Sporty decal
Full wheel caps
MFRT
Tilt able steering
Full Iabric seats
Individual armrests on 1st row seats
Heating, ventilation & AC with rear vents
ORVM manual remocon & swivel interior lamp
NVENIENE
Power steering
Power windows
Spaces Ior storage on centre bezel, IP & console
Mobile charging Iacility Ior the Iront and middle row seats
Intelligent Iront wipers
Follow me home' lamps
Theatre style interior illumination
Illuminated key ring
Side step
Head lamp levelling switch
Front Iog lamps
SETING
5 Seater

1

Brand Strategy - Parent brand relationship defining

A study oI international brand names was done and a classiIication oI brand names oI
midsize cars and SUVs was done into groups. International brand naming trends and
strategies were analysed. New names were generated. These brand names were researched
massively Iirst by qualitative techniques and then by quantitative techniques.
The name that emerged as most popular, and which was also the most liked name internally
at Mahindra was SCORPIO.
Brand Endorsement Strategy

The relation between Scorpio and the mother brand Mahindra was also deliberated upon. The
strategy chosen Ior Brand Endorsement was - Scorpio Irom Mahindra - shadow endorsement,
one which does not shout 'Mahindra.
The Mahindra brand image was not modern and young. There was a need to create a strong
distinct modern brand. Hence Mahindra as a Masterbrand could not contribute towards
enhancing the Value Proposition. Yet Mahindra had to provide source reassurance. Also the
distribution would be through Mahindra dealerships. Hence it became a shadow endorser.
dvertising and Promotions Strategy

The creative strategy was to drive home the Car Plus` positioning Iorward. There was a need
to leverage on product strengths. And a need to establish car plus story. Hence the product
was to be the hero in all communications
The tone and manner was to help associate the brand with the modern and urban liIestyle.
The TVCs as well as the press still-shots were shot in Australia to provide an international
city Ieel. This brought in the international, premium, up-market association Ior the brand.
Media Strategy
O Role oI Media
O Dramatic and high impact launch
O High visibility
O Push brand image even by the media vehicle



Building impact through multiple-media
O PR, Mass Media, Direct Marketing, Events
Public Relations

Pre-launch excitement and buzz was created by a Iull blown PR program. Media coverage on
the IDAM process, the people behind the Scorpio, the obsession, the world class technology,
etc set the tone Ior the hyped up launch. PR was also the Iirst tool used Ior launching the
Scorpio. The coverage oI the launch was massive. It got Iour cover stories
Mass Media

While the media targets would be achieved through the right selection oI the media mix, the
Scorpio media posture was to ensure that Scorpio was present on the decided media but with
a diIIerence.` Scorpio would use media innovations to create diIIerentiation on the traditional
media and do things in a bigger and better` manner.
ustomer Relationship Management (RM)

CRM as a tool was used to create positive word-oI-mouth, to monitor customer experiences
and generate reIerrals. A series oI CRM activities were implemented with regular direct
communication, events and customer research. The CRM plan included a welcome Pack on
Iilling up Scorpio Club (Top Gear) Iorm, satisIaction surveys, Events, Festive oIIers,
Rewards Program, etc.
Pricing Strategy: to be a premium brand yet having universal appeal

Scorpio was to compete with the midsize cars like Hyundai Accent, Ford Ikon, Opel Corsa,
Maruti Suzuki Esteem on the one side and UVs like Toyota Qualis, Tata SaIari and the Tata
Sumo on the other. Scorpio adopted the penetrative pricing strategy positioned in the
psychological price barrier oI Rs. 5 -7 Lakhs.
istribution Strategy - Serve less markets at a time but serve them ell

Since the Scorpio was targetted at an urban clientele it needed a stronger ditribution presence
in Metros and urban areas. Hence, the distribution channel had to Iocus on providing an
appealing experience Ior modern car buyers and on oIIering international standards oI auto
retail.

3

Strategic Branding pproach -
Identifying the need gap and occupying it

There existed a gap that wasn`t tapped. There was no SUV in the country that the masses
could buy. To make SUVs a mass concept in India - UVs needed to be seen as comIortable,
easy-Ior-city driving and should have imagery comparable to international brands.
ThereIore, as a strategy it was decided that Scorpio would not take the traditional UV
imagery oI tough, oII-roading and 4x4. A 4x4 approach would be a very niche category and
would not generate numbers. To appeal to a car buyer, the Scorpio needed to be seen as a car
that oIIers much more.

A Scorpio had to be seen as providing car-like driving pleasure and at the same time
providing the edge over cars in space, power, style, Iuel eIIiciency, luxury and comIort. In
short, to provide status oI a Pajero (international SUV) at the price oI midsize car
The Scorpio product package oIIered - Superior technology, Dynamic Looks, Car-like
product and great value Ior the price Value Proposition Ior Scorpio:

To capture the identiIied need -gap, the value proposition oI Scorpio was deIined as -
ar plus`

Rational beneIits: World class vehicle, good looks, car like comIort, great value
Emotional beneIits: Ownership experience oI thrill, excitement and power
Relational beneIits: Young modern, premium, city companion / extension oI liIestyle.
Brand Promise: Luxury oI a car. Thrill oI an SUV`
This brand positioning addresses the key consumer Insight and the product delivers the
promise. The position is also a unique proposition, which will help the brand have a distinct
image in the consumers` mind.
Baseline - ~Nothing Else ill do

The baseline captures the essence oI the brand, which is superiority and uncompromising
attitude. It also summarises the spirit behind the making oI the Scorpio.
Phased Launch

The Scorpio was launched in a phased manner - Iirst in Metros Mumbai, Delhi, Bangalore,
Chennai. Twenty cities were included over a period oI 4 months and within a year 50 cities
were covered. This ensured attention to main markets and to ensure that initial production oI
4

the vehicle could match demand. Dealerships were revamped prior to launch in a particular
city.
Shoroom Experience

The showroom revamp was centred around the intention to provide a uniIorm customer
experience at all the touch points and to provide the customer with a unique 'experience and
not just a 'product. ThereIore the back oIIice would remain outside the customer`s line oI
vision because the customer would be concerned with the product and not with the
paperwork.
Infrastructure

Thirty-Iive showrooms across the country were redone entirely with the same look and
identity and a decor built around movement, technology and sportiness. The theme Iocussed
on giving the customer a memorable experience.
Response - The strategy delivered

Volumes and Market Shares: Scorpio achieved its targets on market share and achieved a
volume oI 12000 vehicles in the Iirst 9 months oI its launch.
Image: Scorpio advertising had a very high recall Ior the Mahindra brand (Exhibit 3) as well
as Ior the product (Exhibit 4). Apart Irom this, advertising actually positioned Scorpio as a
powerIul vehicle with a sporty look, solidly built with good cargo capacity amongst the
premium car consumers and sports utility vehicle consumers.
Overall response to the Scorpio was stupendous. The product was well received across the
country and got rave reviews across media. More importantly the product and the strategy
delivered in terms oI the various objectives set beIore launch. FootIalls in the showrooms had
been massive and demand had Iar exceeded supply oI vehicles with a waiting period oI three
months.
Impact on Mahindra Image:
The saliency oI Mahindra increased considerably. Mahindra enjoyed stronger recall as a
manuIacturer oI personal vehicles and stronger customer perceptions on the Iollowing
attributes
O Well-respected manuIacturers
O Technologically advanced
O Suitable Ior city driving
O Great to drive
O Makes VFM vehicles
O Proud to own
3

O Makes good quality vehicles
Scorpio Brand Recall

In the SUV/MUV segment, Scorpio has the second-largest awareness and has emerged as a
strong brand in the C & sub-C car segment, however as compared to Qualis, it needed higher
recall. Scorpio advertising had been able to create a good impression on appearance and
styling oI the vehicle.
Scorpio buyer profile

Scorpio managed to pull out customers Irom the C segment oI vehicles. The product,
communication and the retail experience oI the Scorpio passed the stringent test oI luxury car
buyers and the buyer proIile was exactly as per the target proIile. The strategy delivered with
more and more small and midsize car buyers choosing the Scorpio over the others.
ards

The Scorpio was awarded various awards Irom various bodies
Mahindra achieved the objectives it set out to achieve. M&M has more than 39 per cent oI
market share in hard tops, sold 11800 Scorpio in Iirst nine months oI operation and due to
this campaign, Mahindra image improved.
Scorpio Impact on M&M

Scorpio was launched on June 19, 2002. At that time Mahindra was losing market share and
the share prices were also at an all time low at around Rs. 100. The Mahindra share oI
business was largely Irom the semi-urban and rural market oI India and the markets where
Mahindra was strong were stagnating.
With the launch oI Scorpio, things started looking up Ior Mahindra. There was an
improvement in the bottom line as well as the return to the shareholder. The revenue Ior
M&M Auto Sector increased Irom Rs. 1827 Cr. in F 02 to Rs. 2511 Cr. in F 03, a growth oI
37 per cent. The proIits beIore Interest and Tax (PBIT) too zoomed up Irom Rs. 102 Cr. in F
02 to Rs. 147 Cr. in F 03, an increase oI 43 per cent. In F04 the scenario has Iurther
improved. The halI-yearly results show a growth oI 54 per cent in revenue and 218 per cent
increase in PBIT. The share prices have outperIormed the Sensex and Share prices have
zoomed Irom Rs. 100 to Rs. 400 by December 03.
As regards Mahindra image in the customers mind, the post launch study conducted gave the
Iollowing improvements (Brand track Study - Nov 2002 - IMRB):
O The Mahindra saliency scores improved by 27 points among MUV/ SUV owners and
by 29 points among all car-owners.
6

O The overall positive opinion about Mahindra also moved up by 18per cent among
MUV/ SUV owners and by 11per cent among all car owners.
O Mahindra Scorpio has Iared excellently in overall opinion as against its key
competitors.
Future irections - orld class product goes global

Having done well in the domestic market, Mahindra and Mahindra is now moving Iorward on
its path to become a global niche player. i.e, it is stretching its activities in Ioreign markets.
The company is in the process oI negotiating joint ventures in markets like Spain, Italy, South
AIrica, Indonesia, Russia, Equador Ior marketing oI Scorpio.

Mahindra Scorpio`
Activity: Banners, Shoshkele & Direct Mailer
Objective: To generate test drive leads and Branding
Est. Spends: Rs. 15 lacs
Mahindra Scorpio on ET
The Scorpio ~2nd Anniversary promotion campaign Banner and Pop Under





Mahindra on Economic Times
Scorpio Shoshkele on ET on 5-04-06 Total Spend is 5 Lakhs for 1 Month



Mahindra on Indiatimes
Scorpio Mouse ver Banners

9

Mahindra Innovations


ne-Year Total Return:
65.6

Site: www.mahindra.com
3

8a|ance sheet

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's Iund
Equity share capital 272.62 239.07 238.03 233.40 116.01
Share application money - - - - -
PreIerence share capital - - - - -
Reserves & surplus 4,959.26 4,098.53 3,302.01 2,662.14 1,881.93
Loan funds
Secured loans 981.00 617.26 106.65 216.68 336.82
Unsecured loans 3,071.76 1,969.80 1,529.35 666.71 715.80
Total 9,284.64 6,924.66 5,176.05 3,778.92 3,050.56
Uses of funds
Fixed assets
Gross block 4,893.89 3,552.64 3,180.57 2,859.25 2,676.51
Less : revaluation reserve 12.09 12.47 12.86 13.33 14.32
Less : accumulated depreciation 2,326.29 1,841.68 1,639.12 1,510.27 1,335.56
Net block 2,555.51 1,698.49 1,528.59 1,335.65 1,326.63
Capital work-in-progress 646.73 649.94 329.72 205.46 133.93
Investments 5,786.41 4,215.06 2,237.46 1,669.09 1,189.79
Net current assets
Current assets, loans & advances 5,081.20 3,816.41 3,916.94 2,805.04 2,356.41
Less : current liabilities & provisions 4,797.76 3,468.77 2,854.20 2,254.37 1,980.58
Total net current assets 283.44 347.64 1,062.74 550.66 375.83
Miscellaneous expenses not written 12.55 13.53 17.55 18.05 24.38
Total 9,284.64 6,924.66 5,176.05 3,778.92 3,050.56
Notes:
Book value oI unquoted investments 4,305.50 1,429.16 1,515.23 1,419.01 1,047.67
Market value oI quoted investments 3,218.81 7,669.90 10,285.25 2,030.85 240.83
Contingent liabilities 1,220.39 985.35 1,008.27 946.36 758.14
Number oI equity sharesoutstanding (Lacs) 2726.16 2390.73 2380.33 2334.00 1116.48
Profit and Loss ccount

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Income

Operating income 13,125.98 11,310.37 9,921.34 8,136.59 6,594.69
31


Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Expenses

Material consumed 9,365.00 7,814.71 6,930.76 5,782.01 4,655.24
ManuIacturing expenses 174.05 164.68 134.00 111.90 100.65
Personnel expenses 1,024.61 853.65 666.15 551.78 464.25
Selling expenses 575.34 804.51 635.10 458.32 369.72
Adminstrative expenses 937.56 561.66 466.22 387.57 317.79
Expenses capitalised -42.83 -46.49 -47.10 -26.53 -31.84
Cost oI sales 12,033.73 10,152.72 8,785.12 7,265.04 5,875.81
Operating proIit 1,092.25 1,157.65 1,136.22 871.54 718.88
Other recurring income 305.98 364.05 404.87 195.82 186.46
Adjusted PBDIT 1,398.23 1,521.70 1,541.09 1,067.36 905.34
Financial expenses 134.12 87.59 19.80 26.96 30.24
Depreciation 291.51 238.66 209.59 200.01 184.05
Other write oIIs - 0.59 0.33 0.28 0.15
Adjusted PBT 972.60 1,194.86 1,311.37 840.12 690.89
Tax charges 199.69 303.40 350.10 242.40 201.50
Adjusted PAT 772.91 891.46 961.28 597.72 489.39
Non recurring items 63.87 211.91 126.30 259.38 23.28
Other non cash adjustments 4.07 - -19.19 - -
Reported net proIit 840.85 1,103.37 1,068.39 857.10 512.67
Earnigs beIore appropriation 3,807.00 3,228.45 2,544.13 1,853.50 1,255.52
Equity dividend 278.83 282.61 282.23 243.97 150.81
PreIerence dividend - - - - -
Dividend tax 33.23 38.48 42.50 34.22 21.15
Retained earnings 3,494.94 2,907.36 2,219.40 1,575.31 1,083.55
ash Flo Statement
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
ProIit beIore tax 1,026.20 1,241.57 1,315.69 889.49 700.62
Net cashIlow-operating activity 1,631.30 825.83 1,168.95 686.90 379.21
Net cash used in investing activity -1,941.00 -2,075.08 -950.39 -502.66 -174.30
Netcash used in Iin. Activity 696.91 811.34 418.08 -89.78 192.45
Net inc/dec in cash and equivlnt 387.21 -437.91 636.64 94.47 397.36
Cash and equivalnt begin oI year 1,174.62 1,361.79 725.15 630.69 233.33
Cash and equivalnt end oI year 1,561.83 923.88 1,361.79 725.15 630.69
3


onclusion:
Thus Scorpio` has proved as a Milestone Ior Mahindra & Mahindra and the Indian
Automobile Industry. It has given a unique place to Mahindra & Mahindra in Indian market
because; it was innovated with High quality, Reliability, Flexibility, Style, Driving ComIort...
etc. In short it oIIered a customized product. Hence, again Operation`s components: Time,
quality& technology made a success story.

Reference:

1. hLLp//wwwslldeshareneL/vlvekSharma/scorplofrommahlndra
2. hLLp//economlcLlmeslndlaLlmescom/eaLures/8randLqulLy/WhaLmakesMMsScorploas
hlghesLselllngSuvbrand/arLlcleshow/4939cms
3. hLLp//bloggaadlcom/blog43Mahlndra_Scorplo_A1_8evlew
4. hLLp//wwwmouLhshuLcom/revlew/Mahlndra_Scorplo311hLml
5. hLLp//auLosmaxabouLcom/cvld36/mahlndra_scorplo_m_hawk_aspx