RESEARCH REPORT ON “A Study of marketing strategy and
analysis of Scorpio M_hawk”
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE POST GRADUATE DIPLOMA IN MANAGEMENT
IIMT PROFESSIONAL COLLEGE, MAWANA ROAD, GANGA NAGAR, MEERUT, UTTAR PRADESH, INDIA
SUBMITTED TO SUBMITTED BY
Dr P.K AGRAWAL SUBHASH KUMAR
DIRECTOR PGDM-IV SEM ROLL NO-M07052
This is to certify that Mr. Subhash Kumar student of Post Graduate Diploma in Management, IIMT professional college, Meerut has undergone project in Marketing Division. The research topic was “A Brief Study of Marketing Strategy and Analysis of SCORPIO (m-HAWK) by Mahindra and Mahindra ltd in Bihar.
We wish him all the best in their future Endeavour.
Shailesh Mishra General Manager Exec. (Scorpio)
Abhishek Singh Sr. Sales
Manager (HR & EDP.)
I express sincere thanks to Prof. Dr N.S RANA and Prof. Dr AMIT KANSAL, our research Guide to have given us the opportunity to work on such a challenging research. We also would like to thank him and Mr. ABHISHEK SINGH (Sr. Sales Manager, Sonali Auto Ltd.) for providing their expert guidance and help, without which it would not have been possible to accomplish the project successfully. Their timely directions & advice at every stage of the project has facilitated in bringing the project in the present form.
Last but not the least we would also like to thank the team of Service Managers who took time off to share insights about their experiences while dealing with different clients. This helped us immensely to understand the psyche of the customers as been perceived by the Relationship Managers. We just hope that the recommendations and suggestions presented by us are considered seriously.
CONTENTS PAGE NO.
1. INTRODUCTION OF MAHINDRA & MAHINDRA 2. M&M Board of Members 3. PRODUCT PORTFOLIO 4. Making of Mahindra Scorpio 5. Mahindra Scorpio Launched in Brazil 6. Scorpio Contents 7. SCORPIO(m-HAWK) & FEATURES n VARIANTS a) Scorpio Growth Rate b) EURO Norms c) Rules Follow for TURBINE ENGINE d) CRUMPLE ZONE e) Dealers Location in Bihar f) Scorpio Profiling 8. SUV Compare Chart 9. CONCEPT OF SALES
10. 11. 12. 13. 14. 15. 16. 17. 18.
SEGMENTATION DEALER NETWORK IN BIHAR ORGANISATIONAL STRUCTURE AT DEALERSHIP PROSPECT GENERATION J.D.POWER Ranking SCORPIO BRAND BUILDING EXERCISE CORPORATE SOCIAL RESPONSIBILITIES CONCLUSION BIBLIOGRAPHY
Today’s business dynamics is very fast; environment is changing. To understand the changing market behaviour the company has to do a systematic study. A research work is a scientific and systematic study intended to catch the nerves of the problem or issue with the application of management concept and skills. I was assign to understand the online trading product and consumer attitude towards online and offline services.
This report has been complied preliminary in partial fulfilment of the requirement for the award of the post graduate diploma in management secondary to share the practical knowledge
and experience gained of at a result of continued association with company’s branch. Apart from theoretical concept of the topic, I have included the findings and suggestions are also included.
The Mahindra Group ---An Overview 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) 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)
Information Technology (Tech Mahindra, Bristlecone) and Infrastructure Development
(Mahindra GESCO, Club Mahindra Holidays, Mahindra World City).
Two Group companies Mahindra Finance and Tech Mahindra made their debut on the courses in 2006 in line with the commitment that each of the business segments would have flagship companies that will be listed.
The Group employees over 40,000 people and has eight – of the art manufacturing facilities in the India M&M has made strategic acquisition of plants in China and the United Kingdom , and has three assembly plants in USA M&M has entered into partnerships with international companies like RENAULT SA, FRANCE, NISSAN, and International Truck and engine corporation, USA.
M&M’s products are being exported to the USA .Russia and several other countries in Africa, Asia Europe and Latin America. Its global subsidiaries include Mahindra Europe Srl. Based Italy, Mahindra USA Inc. Mahindra South Africa and Mahindra.
(China) Tractor Co. Ltd
Over the years, the Mahindra has transformed itself into a group that has leadership position in all the sectors it operates and has a growing global footprint. FORBES has ranked the Mahindra group in its Top 200 list of the world’s most reputable companies and in the Top 10 list of Most Reputable Indian Companies.
M&M (Automotive Sector) History M&M’s association with the automobile business dates back to 1945. The Company was incorporated in 1945 and was originally formed to manufacture utility vehicles for the Indian market, initially by importing and assembling WILLYS JEEP KITS. The manufacture of utility vehicles commenced in 1954 in
collaboration with WILLYS Overland Corporation and its successors, Kaiser Jeep Corporation and American Motor Corporation (now part of Daimler Chrysler group). The Company commenced manufacturing Light Commercial Vehicles (LCV) in 1965. The Company has recently entered the three-wheeler market.
Over the year, the Mahindra brand of vehicles has come to represent high quality, ruggedness, durability, reliability, easy maintenance and operational economy. These are the qualities that have endeared the vehicle to individuals as well as institutions like the Indian armed forces. M&M is the leader in the MUV business in the country since inception.
M&M has comprehensive manufacturing facilities with high level of vertical integration. M&M’s automotive division has five manufacturing plants, three in the state of MAHARASHTRA and one in ANDHRA PRADESH. In Maharashtra, its plant in Mumbai and Nasik manufacture multi-utility vehicles, and engines are produced at the Igatpuri plant. Light Commercial Vehicles are manufactured at the company’s plant in Zaheerabaad in Andhra Pradesh and three-wheelers in Haridwar.
Our Mumbai and Nasik plants with the R&D facility at NASIK are ISO/TS 16949 certified. The Mumbai plant has also been recommended for the TPM excellence award. Our engine plant at Igatpuri has QS 9000 certification. Our LCV & three wheeler plant at Zaheerabad have ISO 9001:1994. Both of these plants are also working towards TS 16949 certification. Our plants in Mumbai and Igatpuri are also ISO: 14001 certified.
M&M has a strong Research & Development set-up, with over 300 engineers in the automotive division. The Company’s
technical prowess is proven by negligible import content in our vehicle and by the design and development of a totally from ground upward, new contemporary SUV –Scorpio. The division’s marketing efforts are supported by a network of more than 275 dealers across the country, which are managed by 20 sales offices. Additionally, the division has a national network of authorised service stations and stockist to meet customer needs for serving and spare parts.
Having conquered a substantial portion of India’s semi-urban and rural markets, the division has in recent year’s secured significant success in urban regions following the introduction of premium MUVs like Bolero and Scorpio. Scorpio is M&M’s first indigenously developed SPORTS UTILITY VEHICLES – an off road vehicle with car like comforts. The Scorpio was launched in June, 2002 and has been universally acclaimed. It was declared to be the “Car of the Year “by CNBC Auto car, BBC Wheels and Business Standard Monitoring.
M&M’s automotive division also exports its products to several countries like- Africa, Asia and European & Latin American Countries. The Group recently made a milestone entry into the passenger car segment with Logan, a product of its JV with Renault SA.
M&M Core Purpose
Indians are second to known in the world, the founders of the nation and M&M Company passionately believed this. We will prove them right by believing in ourselves and by making Mahindra & Mahindra Ltd. known worldwide for the QUALITY, DURABILITY and Reliability of its products and services.
M&M Core Values
M&M core values influenced by our past, tempered by our present and are designed to shape our future. They are an amalgam of what we have been, what we are and what we want to be. These values are compass that will guide our actions, both personal and corporate. They are:Good Corporate Citizenship:As in the past, we will continue to seek long term success that is in alignment with our country’s need. We will do this without compromising on ethical business standards. Professionalism:We have always sought the best people and given them the freedom as well as opportunity to grow. We will continue to do
so. We will support innovation and well reasoned risk – taking, but demand of performance will be its first priority. Customer first:We exist and prosper only because of our customers. We will respond to their changing needs and expectations speedily, courteously and effectively. Quality focus:Quality is the key to delivering money to our customers. We will make quality a driving value in our work, in our products and in our interactions with others. We will do it “first time right”. Dignity of the Individual:We value individual dignity, uphold the right to express disagreement and respect the time and efforts of others. Through our actions we nurture fairness, trust and transparency.
Board of members
Our Group > the Management > Board of Directors The Board of Directors of the Company has, as its members, eminent persons from Industry, Finance, Investment and other branches of business, who bring diverse experience and expertise to the Board. The Company's current Board of Directors is as follows: NAME DESIGNATION 1. Mr. Keshub Mahindra 2. Mr. Anand G. Mahindra Vice Chairman and Managing Director 3. Deepak Shantilal Parekh ,Director 4. Nadir Burjorji Godrej, Director 5. M. M. Murugappan ,Director 6. Bharat Narotam Doshi Executive Director & Group Chief Financial Officer (Group CFO) 7. Arun Kumar Nanda ,Executive Director & Secretary Chairman
8. Narayanan Vaghul ,Director 9. Dr. Ashok Sekhar Ganguly, Director 10. R. K. Kulkarni Director 11. Anupam Pradip Puri, Director 12. Thomas Mathew T. Nominee of LIC
Mr. Keshub Mahindra – Chairman
Mr. Keshub Mahindra, Chairman of Mahindra & Mahindra Limited, is a B.Sc. graduate from Wharton, University of Pennsylvania, USA. After joining the Company in 1947, he became the Chairman in 1963. For over five decades, his continuous involvement has enabled the Mahindra Group to reach where it is today.
He is a well-known philanthropist who redefined corporate governance by effectively channelizing funds into the social sector. He has contributed immensely to the cause of building ethical corporations in India and is currently part of numerous prestigious organisations and committees. He was also appointed by the Government of India to serve on a number of Committees including the Sachar Commission on Company Law & MRTP, Central Advisory Council of Industries etc. Today, he is an icon, an inspiring business leader and a distinguished corporate citizen that everyone looks up to.
Mr. Keshub Mahindra is on the Board of
Directors of the following organisations: • Chairman of Mahindra Holdings & Finance Limited, Mahindra Ugine Steel Company Limited
• Board of Governors of Mahindra United World College of India
• Vice Chairman of Housing Development Finance Corporation Limited
• Director in Bombay Burmah Trading Corporation Limited, Bombay Dyeing & Manufacturing Company Limited, Kema Services (International) Private Limited, United World Colleges International (UK) Limited, Rodal Investments Private Limited and Pratham-India Education Initiative.
Mahindra & Mahindra is known for its in utility vehicles, commercial vehicles & personal vehicles. In order to clearly differentiate the segment in which Mahindra is playing, the company has divided all its products into 3- different channels. I Channel 1 personal -SUV Channel 2 prosper –UV 3. Channel 3 MIL –LCV
Channel 1 – Personal: - This segments categories for personal use or family use Scorpio & Logan are in Channel 1 Different Variant Scorpio AC) M2Di (more mileage diesel engine PS, LX (PS, PW, AC Trittabled Staring) DX (LX +Rear Wiper, Black Cladding, Fog lamp) SLX (DX+MP3, Self Colour Cladding, Alarm System)
V-Series Cruise Control, Sensor, Audio
VLS (SLX + Alloy Wheel+ m-Hawk Engine, Tyre- tonics’, Intellipark, Rain Sensor, Light Control on steering, Immobiliser) VLX (SLX + VLS)
GL (AC) GLE (AC PS) GLX (1.4) GLX (1.6) GLS (AC, PS PW, CL, Remote Locking, Mp3, Fog lamp,
Air bags) DLE (AC, PS) DLX (AC, PS, PW, CL) DLS (DLX + GLS) Note: - (GL, GLE, GLX, GLS) were Petrol model. (DLE, DLX, DLS) were Diesel model. CHANNEL 2: Prosper: - This segment categorized for commercial purpose. Hard Top, Soft Top, Pick-up, 3-wheelers are in Channel- 2 Soft Tops: Hard Tops: Commander Savari Maxx Festara Maxx Passenger
DI DIZ (AC, Suspension) SLE (AC, Suspension PS) SLX (AC, PW, CL, MP3)
Maxx Pick-up Maxx Maxi Truck Bolero Pick-up --Normal Flat Bed Single Cabin Double Cabin.
3-wheelers: - Mahindra champion Alfa Mahindra Champion –Pick-up passenger (3+1), (6+1) CHANNEL-3:-“MIL”:-- This segment Categories for LCV (Light Commercial Vehicles) Mahindra & Mahindra gone in collaboration with International Truck Ltd.No.1 Truck company in USA having the production of almost 1.5 Lacs of Trucks Per annum. The new firm is known as MIL (Mahindra International Ltd.) Mahindra DI 3200 Mahindra Load king Load Career a) 6T HSD (High Side Desk) b) 6T FSD (Fixed Side Desk) c) 4T HSD d) 4T FSD e) LWB 6T Load King Super (6T) CAB & CHASSIS Vikrant (9+1, 12+1, 14+1)
Passenger & School Bus. Tourister 17 Str. School & Passenger 25 Str. School & Passenger 34 Str. School & Passenger 42 Str. School & Passenger AmbulanceDelivery Van T. 17 Str. Platform
MAKING OF MAHINDRA SCORPIO
Prior to the mid-nineties, M&M was an automobile assembly plant. The company used to manufacture WILLYS JEEPS and its minor modified versions (modification carried out in India). In 1996, the company planned to enter the SUV segment with an all new product which can complete even in foreign markets. Since M&M didn’t have the know-how of making a new age product, they devised a whole new concept among Indian auto companies. For their growth, the company roped in new executives such as DR.PAWAN GOENKA and ALAN DURANTE who have worked in this industry in western countries. The company broke the rule that says automakers must design, engineers and test their own vehicles spending millions of dollars in the process. The new Mahindra Scorpio SUV had all of its major systems designed directly by suppliers with the
only inputs from Mahindra being specifications and program cost.
Design & engineering locations were also chosen by suppliers. The parts were also later to be assembled in a Mahindra (as Mahindra is a well know brand among Indian in the MUV segment).the company built a brand –new vehicle with virtually 100 percent supplier involvement from concept to reality for $120 million, including improvements to the plant. The product took 5 years to materialise from a concept to the final product.
In April 2006, the company launched an upgraded Scorpiodubbing it the ‘ALL –NEW’ Scorpio. The car has 43 new features, most of which are aesthetic including new front bumpers, a new tail-light cluster and an air scoop on the bonnet. Yet, there are some crucial engineering changes as well, including a new rear suspension which was jointly developed with Lotus in the UK.
The Mahindra Scorpio is sold across the world in countries such as:-
India Italy France Spain Portugal Turkey
Sri Lanka Nepal Bangladesh Egypt Russia Malaysia South Africa Chile:-The Scorpio Pick-up is the first passenger vehicle of the Mahindra brand to be offered in Chile, and both were presented to the press the night of July 25th 2007
Mahindra Scorpio SUV & Pick-Up range launched in Brazil
Mahindra & Mahindra (M&M), India’s leading automotive brand with a growing global presence, today announced the launch of the Mahindra Scorpio SUV and its Pik-Up range (Single and Double cab) in Brazil, in partnership with Bramont-Montadora Industrial e Comercial de Veiculos Ltda. A special state-of-the-art facility has been set up to assemble the vehicles with an annual capacity of 5,000. Body assembly will be undertaken by Usiparts, a Usiminas System company, while the chassis, suspension and engine (power-train) will be assembled by Bramont at its plant in Manaus (AM). Speaking at the eve of launch, Mr. Pravin Shah, Executive Vice President, International Operations, said “Mahindra has carved a distinct niche for itself in markets across the globe with its unique combination of rugged utility and style. The Brazilian economy and automotive industry is highly evolved and has strategic
importance for Mahindra. This is the first assembly facility in South America for the Mahindra Scorpio platform and helps consolidate our presence in the Mercosur region. Our partner Bramont has a professionally managed network of dealers which will ensure our success in the competitive Brazilian market. Elaborating on Bramont’s association with M&M to launch the Scorpio in Brazil, Mr. Eduardo de Castro, Chairman, Bramont said, “It is an honour for us to represent Mahindra in the fifth largest market in the world. Launching the Mahindra Scorpio in the Brazilian market is in tune with our objective of offering the customer world-class vehicles. We believe that the Mahindra Scorpio offers a strong value proposition that will make it a preferred vehicle in this market.” The models introduced in the Brazilian market are powered by the 2.6 litre Mahindra Common Rail engine that delivers 110 hp. The models are available with 4X2 and 4X4 electronic shift on the fly and the engine conforms to Euro III emission norms. From 2009, Mahindra vehicles will be offered with a Euro IV compliant engine. "We intend to provide the market with vehicles incorporating quality and technology of an international standard, offering customers a strong value for money proposition, Given the company’s strong track record, Mahindra vehicles will be able to compete successfully in the Brazilian 4x4 diesel utility segment. “ said Mr. Jose Francisco de Oliveira Neto, General Manager of Bramont.” Since its launch, the Mahindra Scorpio has not only emerged as the leader in the UV (Utility Vehicle) segment in India but has also won widespread industry acclaim. It has also won several prestigious awards from the automotive media, including the CNBC Autocar Car of the Year Award, BBC Wheels Best SUV of the Year and Best Car of the Year awards and the BS Motoring Car of the Year Award. Mahindra & Mahindra has been growing in stature as an international automotive major. Today, M&M has a global footprint with presence in major markets including South Asia, Middle East , Europe where Mahindra Scorpio is known as Mahindra Goa , Africa and in South America, where it is present in Chile and Uruguay. Over the past year, the Scorpio has been successfully launched in several markets, including Australia, Turkey and Ghana. Earlier this month, Mahindra launched the Scorpio SUV in Egypt, marking the commencement of its first assembly operations outside India. As part of its growing global footprint, one of India's favourite SUV is poised to take on the most challenging market, the USA, in 2009
The product training includes understanding the functions and knowing the physical location of the following parts (same as I had at Scorpio m-Hawk during induction)....
In the engine I carefully studied the location & functions of the following parts: 1) Cylinder & Cylinder head 2) Fuel Injection Pump & Injector 3) Fuel Filter & Air filter 4) Turbo Charger & Intercooler 5) Radiator & Water Pump
6) Coolant recovery tank & Thermostat
In Driveline the following things were located and studied: 1) Clutch 2) Gear Box 3) Propeller Shaft 4) Differential
In running system the following parts were located and studied: 1) Brakes (both Drum & Disc) 2) Suspension (both Independent & Rigid)
After the Product Training My following doubts got cleared-
The basic function of TURBO charger is to provide more air at higher pressure to the engine for better combustion. Thus to improve power ratio and better envision. Note:-Turbo charger is nothing to do with recycling to used/exhaust gases.
Difference between Independent and Rigid Suspension
In Rigid Suspension both the wheels in an axel are connected by a rigid beam or a tube. Road irregularities encountered by one wheels partially passed on to the other wheel. In Independent Suspension, each wheel is mounted separately. Road irregularities encountered by one wheel are absorbed by that wheel only. (Note:-Studied Scorpio m-hawk Training module and then saw the parts in practical in the Workshop.)
In 2000 Company adopted a new logo. In 2002 Scorpio was launched. Scorpio look is better and it is spacious and luxurious. Scorpio engine has one of the highest BHP/litre amongst all diesel vehicles sold in India. Scorpio m-HAWK engine is 100 kg less than all CRDe. It has one of the highest BHP/Litre amongst all diesel vehicles sold in India. Scorpio has the best 0-60 kmph
& 0-100 kmph figures and highest top speed and rapid acceleration. In 2003 Scorpio received national award for R&D. In 2004 Scorpio launched in Latin America, Middle East and South Africa. M&M launched CRDe in Scorpio in 2005(1st Indian Auto Manufacture).and Car of the year. In 2006 Scorpio Hybrid was unveiled at Delhi Auto Expo. All new Scorpio with 43 new Features, Scorpio crossed 1 lakh production mark, and Global Launch of Scorpio Pick-up in South Africa. Scorpio position in Car plus Category with the Tag line “Nothing else will do”. Scorpio marched in to (Kenya) M7M set up centralised call centre for customer centricity in 2007 and Scorpio V-series launched Nov. 30 2007.Scorpio was the highest selling SUV in year 2007
Minds must be ready ... Not only to take
opportunity... But to make them...”
MAHINDRA SCORPIO m-HAWK:m-Hawk engine is 100kg less than CRDe. It is made up of ALLUMINIUM ALLOY. m-hawk Engine oil Capacity=6.5 litre CRDe =6 litre m-Hawk has =2.2 (2200cc)cubic capacity =120bhp (break horse power) =4*28.6 torque* Torque=force*radial displacement. To give more power and to move crump.
TURBO CHARGER:It is started from 2002. Variable Turbo Charger runs through exhaust gas. According to the combustion it takes/sucks oxygen/air.
For Turbo Engine following things should be followed for the betterment of engine: After starting and turning off engine, let it works on low RPS at least for 1 minute. In CDRe only Maximile Supreme Oil should be added. Power Steering Oil should be changed per 80000 km or once in a year. Gear box and Differential oil changing time... SCORPIO-15000km ,CRDe-20000km
There are two types of engine:1. COMPRESS IGNITION (CI) 2. SPARK IGNITION (SI) compress the air combustion of fuel. at COMPRESS IGNITION is to high temperature for the
Mahindra’s vehicles are having Compress Ignition which is best one.
MARUTI SUZUKI is having SPARK IGNITION
EURO:It is a rule for POLLUTION, invented by BUCHI in 1919(Germany). Pollution Control developed in EUROPE. In INDIA it is called as BHARAT stage - 1 - 2 – 3
To reduce NOX (Nitrogen Oxide) which is a very harmful gas not only for Human Being but also for the Environment.
AIM: It includes TURBO ENGINE. Though all vehicles are having Turbo Engines.
-It is a device to suck the air in its inlet manipole for better combustion.
-It maintains less noise, less emission, better power.
-Turbo Engine fulfils the EURO-2 norms.
EURO-1:It has CATALATIC Convertor. It is a filter which is connected with exhaust fan to stop NOX.
EURO-2:It has CATALATIC Recirculation) Convertor + EGR (Exhaust in its Gas
Here 10-20% smokes again maniphole, to dead oxygen.
We know very well that at 1200-1800 C in Temperature – NOX produced. And if it is in 800-1000 C we can stop NOX to its minimum level which will produce less pollution.
EURO-3:It has CATALATIC Convertor + EGR +INTERCOOLER
These all three EURO helps the environment to be less polluted. And it is a mandatory for all Automobiles Companies to strictly follow the EURO Norms.
No AIRBAGS...As a Alternative
Crumple Zone is present in both sides of bonnet, in left and right side...
It stops at last end of bonnet when it dashed directly from front.
It won’t hurt a person sitting at driver’s seat and beside him.
HANDLE is connected with long rod which won’t hurt driver when it dashed directly because after dashing, the rod immediately breaks in between and fell down without hurting the person who is driving.
SUVs COMPARE CHART
CONCEPT of SALE
3-Types of Salesman:•
The Begger:- Please bye my product Sir, (Typically door to door Salesman).
Potato Seller: - Tell him the price & the variants. Let the customers decide. The Sales Consultant: - Probes, Listens to the customer’s requirement & intelligently suggest his product as a better solution.
The Sales Consultant:A good sales consultant never sells automobiles as the beggar or as the potato seller? • Because for most people an Automobiles as the beggar or as the Potato Seller? • Because happy customer come back to buy from you & refers other customers. • Because a professional sales consultant always makes the best impression. Here a question arise that, what a sales consultant does? • A sales consultant focuses on the entire purchase experience • Qualities to the Customers • Build & Execute his story based on the qualities • Offer a test drive • Finally discusses variants & prices
A market segment consists of a group of customers who shares a similar set of needs & wants. Thus we distinguished between car buyers who are primarily seeking low cost basic transportation, those seeking driving skills & performance. We must be careful not to confuse a segment & a sector. A car company might say that it will target young, middle income car buyers. The problem is that young, middle-income car buyers will differ about what they want in a car, some will want a low cost car, other will want an expensive car. Young middleincome car buyers are a sector, not a segment. The marketers doesn’t create the segments, the marketers task is to identify the segments and decide which one (s) to target. Segment marketing offers key benefits over mass marketing. The company can presumably better design, price, disclose & deliver the product or services to satisfy the target market. The company also can fine – tune the marketing programme & activities to better reflect competitors marketing. However, even a segment is partly a fiction, in that not everyone wants exactly the same thing. Market segment can be defined in many different ways, one way to crave up the market to identify preference segments. Suppose ice-cream buyers asked how much they value sweetness & creaminess as to product attributes. Three different patterns can emerge:1.
Homogeneous Preference—A market where all the consumers have roughly the same preference. The market shows no natural segments. We would predict the existing brands would be similar & cluster around the middle of the scale in both sweetness & creaminess. Diffused Preference—Consumers indicating that consumer vary greatly in their preference. The first brand to enter the market is likely to position itself to the most people. A second competitor could locate need to the first
brand and fight for the market share or it could locate in a corner to attract a customer group that would not satisfied with the centre brand. There are several brands in the market, they are likely top position themselves throughout the space and show real difference to match difference in consumer preference. Cluster Preference-- The market might reveal district preference cluster called natural market segments. The first firm in this market has three options. It might position in the centre hoping you to appeal all groups. It might position in the largest market segments (concentrated market). It might developed several brands each positioned in a different segment. If the first firm developed into only one brand, competitors would enter & introduce brands in the other segments.
HOW SEGMENTATION DONE? 1. Geographic 2. Demographic 3. Psychographic
1.Geographic:- a) Region :- Pacific, mountain west, North central, West South central, South Atlantic etc. B) City or Metro City: - 5000, 20000, 50000, 1lac, 5lacs, 40 lacs or over c) Density: - Urban, Sub urban, Rural d) Climate: - Northern& Southern Planet 2) Demographic: - a) Age: - 6-12, 12-18, 18-25, 25-30, 50----b) Family Size: - 1-2, 2-4, 5-------c) Family life cycle: - Young, Single, Married, Youngest, Child under Six d) Gender Wise: - Male, Female e) Income: - 5000-10000, 10000-25000,
f) Occupation: - Professional & technical, Farmer, Student 3) Psychographic: - a) Life style: - Straight, Swinger, Long hair b) Personality: - Compulsive, gregarious, Authoritarian
WHY SEGMENTATION? 1) To utilize marketing response effectively, we use segment concept 2) Maximum output, we ensure by this concept in marketing
Dealers Network in BIHAR Since the Scorpio was targeted at an Urban Client it needed a strong distribution presence in Metros’ & Urban areas. Hence, the distribution channel has to focus on providing an appealing experience for modern car buyers. In BIHAR company has categorized three phase:
PHASE 1:- In phase 1, the dealership which is authorized for the Scorpio is only SONALI AUTOS, located at Patna. • Infrastructure • Service Centre PHASE 2:- Priyadarshani Motors is categorized as the second authorized Scorpio dealership which is going to be open in few months. Dealership is under construction at Saguna More, Patna
PHASE 3:- The Company is planning to give authorization of Scorpio to two dealership• Brajesh Automobiles-PURNEA • Shree R.C. Enterprises-MOTIHARI
Organizational Structure at Dealership
In dealership, works are divided into different groups. So that they can achieve their target in a very easy process, for that they form a structure which is as follow:CEO (Chief Executive Officer)
GM (General Manager)
F.Sc. ICRE (Field Sales Cons) Cust .Relation Exe)
S.Sc. (Showroom Sales Cons) (Ingenious
F.S.C:• To generate enquiry from field • Motivate the Customer • Finally sale the project
To greet customer in the showroom. • Find information about the product. • S.S.C. also as a F.S.C.differntly only I.Sc work in field & S.Sc work in the showroom.
I.C.R.E.:- (Ingenious Customer Relation Executive) • Work as Tele- caller • 3rd day & 30th day call to customer for collecting the information about the condition of the Vehicle. • To wish the Customer on their Anniversary & Birthday.
PROSPECT GENERATION:There are three types of call that should be in place in a dealership for prospect generation:1) Cold Calls 2) Follow-up Calls 3) Market development Calls Cold Call “Meeting a customer, who can be a prospective buyer of vehicles? He has yet not shown his purchase intention. The data may or may or may not be available at the dealership.” This refers to an activity where the FSC while covering his regular territory
Personally meets prospective buyers who could be......... • First Time Buyer • Existing Vehicle Owner going for second purchase • Replacement Buyer Basic of Cold Calls Based on the Demography of his territory, an FSC physically visits Institution e.g.: a) Profession (e.g. Doctors, Engineers, Lawyers) b) Income group Individuals (e.g. > 5 lacs p.a.) c) Age Group etc. Based on the Potential available, as FSC physically visits Institutions e.g.: 1. Schools 2. Poultry Farms 4. Distributors & Shop Keepers 5. Travel agents or Courier Services 6. Traders 7. Service Providers 8. Missionaries 9. Tour Operators 10.Hospital 11.Transport Operators 12.Hotels 13.Call Centres 14.Charitable Trusts 15.Small Industries 16.Corporate Houses 17.Dairy Farms 18.Govt. Department These Cold Calls should be focussed on the requirement of vehicle specific to the sector concerned.
It is recommended that based on monthly retail target, the Cold call target should be calculated.
Follow –up Call
“Meeting a customer, who has already shown his intent to purchase a vehicle? The customer data is available at the dealership.”
FSCs will fill up / update CDIF
(Hard Copy) Why making follow up visit on a prospect. The same will be updated in the software on his return from the tour. During a ‘Follow up Call’, an FSC will be visiting prospects personally and not through telephone.
‘Follow up Call’ target will be based on the number of Leads in hand or carried forwarded from the previous month and also the number of leads to generated during the month the travel plan for an FSC will be based on the status of total Lead-in hand (Hot Warm & Cold). Also the frequency of visit to prospects will be high for Hot 7 Warm Leads and relatively lesser for cold Leads.
As stated above, number of ‘Follow up Calls’ will be based on visiting “Hot Leads” at least weekly, “Warm Leads” at least for nightly and “Cold Leads” once in month.
Enquiry likely to be matured within 15 days...
Enquiry likely to be matured within 60 days.
Enquiry likely to be matured beyond 60 days.
Market Development Call “The call may lead to meeting up party, who may not buy vehicles for himself. Yet he can influence of vehicle (s) in his area of influence / control” This refers to an FSC visiting:
1) 2) 3) 4) 5) 6) 7) 8) 9)
Banks NBFCs Office Bearers Unions Govt. Departments Opinion Maker. Local Mechanics/ Garages Surveyors DSA/DMA etc and also doing something different to capture customer’s Mind Share/ expansion of the Industry.
What should be the focus? For effective working and easy achievement of sale target all 3 types of calling should be focussed but to know where is our dealership lagging proper review of “Ingenious Sales Format” along with discussion of sales executives concerned should be done PHASE 2: Activity
Demo: - It is an activity through which we give information about the product, price, etc. by explaining the points to the customer or either in their door step or in the dealership. Road Show: - It is an activity in which the vehicle or vehicles in a group taken to the particular spots for give demo. Loan Mela: - It is an activity which is done by Bank or Private Finance to give loan to the customer on the spot for any purpose.
Phase 3: - Advertisement
Advertisement is the most important part of enquiry generation. Through advertisement most of the people get aware about the product. Advertisement is done through News Papers, Hoarding, Media, etc. This is more expensive of generate enquiry. One should optimise in order to make the business profitable.
For E.g.:- When Alfa Passenger came into the market, we know through the Advertisement, that Alfa Passenger is going to be launched.
JD POWER Ranking:It is a worldwide automobile organisation which will take survey every year for all automobile companies on the basis of CSI & SSI. It is an individual organisation worldwide.
CSI:-Customer Satisfaction Index (in Workshop) SSI: Sale Satisfaction Index (In Sales)
These all includes 16-parameters
In India Mahindra & Mahindra is at 3rd position. Worldwide Mahindra & Mahindra is at 10th position.
CORPORATE SOCIAL RESPONSIBILITIES
Finally all in all it was a great learning experience with SONALI AUTOS Ltd. an authorized dealer of MAHINDRA- SCORPIO (M&M) at Patna (BIHAR). The practical work which I had will definitely have a great impact on shaping my careers in future. The incredible pool of information which I could share of the sales marketing, consumer behaviour and etc. the different practical marketing approaches followed will always help to my cause.
Bibliography BOOKS: PHILIP KOTLERRAJAN SAXENAMARKETING MANAGEMENT MARKETING MANAGEMENT
INTERNET AND WEBSITES: www.mahindra&mahindra.com