Marketing Strategy Adopted by Mahindra Scorpio
Marketing Strategy Adopted by Mahindra Scorpio
Marketing Strategy Adopted by Mahindra Scorpio
ON
SUBMITTED BY:
SUBMITTED TO:
MANUJ SINGH
FACULTY OF MANAGEMENT
DECLARATION
I hereby declare that the project entitled MARKETING STRATEGIES WITH SPECIAL
REFERENCE TO MAHINDRA SCORPIO submitted in partial fulfilment of the requirement
for the degree of MBA to GRAPHIC ERA UNIVERSITY, at Dehradun is my original work and
not submitted for award if any other degree/ diploma or similar title or prize.
DATE:
. 2016
MANUJ SINGH
MBA (2015-17)
PLACE: Dehradun
ACKNOWLEDGEMENT
This report has been made possible with the cooperation of many persons
whom I wish to express my gratitude and appreciation. I am very grateful to the
people who supported me to transform the report in the materialistic form.
I am thankful to Dr. SANJEEV ARORA faculty management at
GRAPHIC ERA UNIVERSITY, Dehradun for his gratitude during my project
and giving me full co-operation and also valuable information and guidance,
without which it would not be possible for me to complete the manuscript.
I would also like to thanks the librarian and staff members of GRAPHIC
ERA UNIVERSITY, Dehradun for providing me the required books in this field
and my friends who were always there to assist me at odd hours also.
MANUJ SINGH
EXECUTIVE SUMMARY
Mahindra & Mahindra (M&M), the market leader in multi-utility vehicles in India. The company
started manufacturing commercial vehicles in 1945. M&M is the leader by far in commercial
vehicle and the second largest in the passenger vehicle market. The company is the worlds sixth
largest medium and heavy commercial vehicle manufacturing.
Mahindra is best known for utility vehicles and tractors in India, Its automotive division, the
company's oldest unit (founded in 1945), makes jeeps and three-wheelers (not passenger "auto
rickshaws," but utilitarian delivery and flatbed incarnations). M&M's farm equipment sector,
formed in 1963 during India's green revolution, manufactures tractors and industrial engines.
M&M also produces military vehicles. The company has facilities located throughout India.
The survey involved gathering wide information about the company, its products, customer
satisfaction and impact of various competitive firms on the company.
From the information collected, various aspects were identified where the company needs to
focus more to improve the efficiency of marketing team of Mahindra Automotive.
The research was conducted through collection of primary and secondary data. Secondary data
was collected through visiting various web sites, automobile magazines and other reliable
sources. Primary data was collected through a well-framed questionnaire, of which later a
detailed analysis was done using various statistical I.T. tools like MS Word and MS Excel.
On the basis, the secondary data analysis and the extensive analysis of the primary data,
interpretations were drawn for the questions and conclusion is drawn. Certain suggestions are
also drawn from the analysis to help.
Mahindra Automotive to increase its market share in commercial passenger segment and MPVs.
The main research that followed is to know MARKETING STRATEGIES WITH SPECIAL
REFERENCE TO MAHINDRA SCORPIO, a new SUV recently launched by Mahindra.
Due to the limited resources and time constraints, the study was conducted within the area
Dehradun city.
INDEX
COMPANY PROFILE
10
12
MILESTONES of M&M
16
PRODUCT PROFILE
18
BOLERO VARIANTS
19
INTRODUCTION TO STRATEGY
30
RESEARCH METHODOLOGY
52
59
FINDING
70
RECOMMENDATION
72
CONCLUSION
74
BIBLIOGRAPHY
76
ANNEXURES
78
QUESTIONNAIRE
79
The multi-brand car workshop chain Mahindra First Choice Services, a wholly-owned subsidiary
of the diversified Mahindra & Mahindra Limited, has announced plans to rapidly expand its
chain of workshops from 42 to 100 by March 2015.
The chain inaugurated its first Franchisee Owned Franchisee Operated (FOFO) workshop in
Kurnool town today.
YVS Vijay Kumar, Chief Executive Officer of Mahindra First Choice Services, said, We see
great potential for the multi-brand car servicing market in the country. This has prompted us to
further strengthen our presence. Our business model for franchisees has received a strong
response.
MFCS is targeting over 100 Franchisee Owned and Franchisee Operated workshops by March
2015. Of this, 20 workshops are expected to come up in Telangana and Andhra Pradesh, he said.
For a car service provider, a strong supply chain for spares and technical training are two most
essential elements. With 42 existing workshops and over 2,00,000 cars serviced, MFCS believes
that it has a strong proposition for the franchisees. The company offers a simplified business
model in multi-brand car servicing with a robust supply chain for spare parts through its cluster
warehouse.
Each cluster warehouse supplies parts as per the daily requirements of Franchisee Owned and
Franchisee Operated and Company Owned and Company Operated centres, thereby reducing the
need to maintain huge inventories at workshops.
Mahindra First Choice Wheels Ltd. (Sale & Purchase of used Cars)
COMPANY PROFILE
HISTORY OF MAHINDRA & MAHINDRA AUTOMOTIVE
Mahindra & Mahindra (M&M) was established in 1945 as Mahindra & Mohammed. Later on,
after the partition of India, one of the partners - Ghulam Mohammad - returned to Pakistan,
where he became Finance Minister. As a result, the company was renamed to Mahindra &
Mahindra in 1948.
M&M started its operation as a manufacturer of general-purpose utility vehicles. It assembled
CKD jeeps in 1949. Over the passing years, the company expanded its business and started
manufacturing light commercial vehicles (LCVs) and agricultural tractors.
Apart from agricultural tractors and LCVs, Mahindra & Mahindra also showed its dexterity in
manufacturing army vehicles. Soon, it started its operations abroad, through its plants set up in
China, the United Kingdom and the USA.
M&M partnered with companies prominent in the international market, including Renault SA,
International Truck and Engine Corporation, USA, in order to mark its global presence. M&M
also started exporting its products to several countries across the world. Subsequently, it set up
its branches including Mahindra Europe Srl (based in Italy), Mahindra USA Inc., Mahindra
South Africa and Mahindra (China) Tractor Co. Ltd.
At the same time, M&M managed to be the largest manufacturer of tractors in India, by holding
leadership in the market of the country, for around 25 years. The company is an old hand in
designing, developing, manufacturing and marketing tractors as well as farm implements. It
made its entry to the passenger car segment in India, with the manufacture of Logan (mid-size
sedan) in April 2007, under the Mahindra Renault collaboration.
Soon after the considerable success of Logan, M&M started launching a wide range of LCVs and
three wheelers as well as SUVs including Scorpio and Bolero. In the present time, Bolero has
gained immense popularity in India. It is one of the most opted vehicles in its class.
MAHINDRA SCORPIO
Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports
Utility Vehicle in India in 2002.
This SUV has redefined the expectations for the design of SUVs with its sturdy looks and
powerful performance, the sophisticated interior design adds to the further glory to the
appearance.
MAHINDRA BOLERO
Mahindra Bolero is one of the most successful and popular utility
vehicle of the Mahindra and Mahindra Group. The car is robust in
appearance and it has been elegantly designed, keeping in mind the
conditions of the Indian roads.
Mahindra Bolero is also among the best fuel-efficient cars of India as the manufacturer has
equipped it with a 2500 cc diesel engine with5- speed transmission.
MAHINDRA XYLO
Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle (MUV) Xylo in
India on January 13, 2009. The car boasts of having all the luxurious features that are seen in
todays sedans, with the ample space of a utility vehicle. Xylo's muscular stance contributes to its
commanding road presence. Fully packed with the latest features, the MUV is sure to impress
Indian consumers and provide a stiff competition to the other vehicles within its class.
o The Most Inspiring Corporate Leader of the Year Award by NDTV Profit
o The NDTV Profit Car & Bike Award 2007 for Automobile Man of the Year.
Mr. Anand Mahindra was also nominated as a Member of the Council of the Executive
Committee of the National Sports Development Fund (NSDF) of the Govt. of India. He was
featured in the list of 50 Most Influential Indians in Business Weeks edition dated August 13,
2007
recognize organizations and individuals who have embraced change, encouraged constructive
challenges and demonstrated entrepreneurial skills in the corporate world.
MILESTONES of M&M
MILESTONES OF MAHINDRA AND MAHINDRA
YEAR ACHIEVEMENTS
1947 In October, the first batch of 75 Utility Vehicles (UVs) imported in CKD
condition from Willys overland Export Corporation.
1949 Lease of 11,071 Sq. yards at Mazagaon from British India Steam
navigation. The first Willys Overland Jeep built in India at the Assembly Plant ,
Mazagaon, Bombay (now Mumbai).
1954 Manufacture of Vehicles undertaken in collaboration with Kaiser Jeep
Corporation and American Motors Corporation.
1962 Indigenous content of Jeep goes up to 70 per cent. To centralise
manufacturing operations, 137 acres of land purchased at Kandivli.
1965 FC 150 Petrol Trucks introduced.
1967 Two wheelers drive Utility Vehicles introduced. The 101" wheel base and
Metal Body UVs introduced. Indigenous content goes up by 97 per cent.
1969 The start of vehicles export. Export of total 1200 UVs along with spare
parts to Yugoslavia. Exported also to Ceylon, Singapore, Philippines and
Indonesia.
1970 The contracts to export of 3304 vehicles, mainly to Yugoslavia and
Indonesia concluded.
1974 Maxi miller campaign launched for the conservation of fuel. CJ 4A was
introduced with new transmission and axle ratio. Collaboration agreement with
Jeep corporation (subsidiary of AMC, Detroit).
1979 The Government of India approves in principle, technical collaboration
with Peugeot (France) for the manufacture of XDP 4.90 Diesel Engine.
1981 The Nasik Trucks Assembly Plant and Peugeot Engine Assembly Plant at
Ghatkopar inaugurated. NC 665 DP Mini Truck rolls out from Nasik Assembly
Line.
1983 FJ 460 model was introduced with 4-speed gearbox. Engine plant at
Igatpuri formally inaugurated by Mr. Jean Boillot, President of Automobiles
Peugeot of France for the manufacture of 25,000 Peugeot and Petrol engines.
1985 The New Mahindra Vehicle-MM 540 was launched in Bombay. NC 640
DP with 4 speed gearbox and Mahindra MM 440 was introduced.
1986 CJ 640 DP Vehicle introduced.
1987 MM 540 DP metal Body Wagonette introduced.
1988 M&M signed a MoU with Hyderabad Allwyn Nissan Limited to form
Mahindra Nissan Allwyn Ltd., as its associate company with LCV operations in
Andhra Pradesh.
1989 The CJ 340 DP model was introduced. M&M and Peugeot announced
their tie up for the manufacture of Peugeot 504 pickup truck, BA 10 gearboxes
and latest XD 3 diesel engines. M&M acquired automotive pressing unit at
Kanhe, from Guest Keen Williams Ltd.
1991 Introduced CJ 500 DI model with MDI 2500 A direct injection diesel
engines. M&M bags order to export 10,000 CKD kits. Commander range of
models: 650 DI, 750 DP/HT were also launched with tremendous market
response.
1993 The Mahindra Armada was launched
1995 Mahindra Nissan Allwyn Ltd. (MNAL) was merged with M&M and
Zaheerabad LCV operations becoming part of Automotive Sector. FJ series of
LCVs were shifted from Nasik to Zaheerabad. Igatpuri Engine Plant received ISO
9002 certificate.
1996 The new LCV model Cabking DI 3150 & Mahindra Classic vehicles were
launched. New Commander 5 Door Hard Top introduced.
1997 Commercial production of the Ford Escort commenced at Nasik Plant.
License & Technical Assistance Agreement signed with Mitsubishi Motors
Corporation for Manufacture of SL Body at Zaheerabad (Voyager with XD 3 and
BA 10). Kandivli and Nasik plants received ISO 9002 certificate from RW-TUV.
1998 Die shop Inauguration at Nasik Plant 2-8/8/97. Voyager was launched by
the Chairman at Zaheerabad Plant on 12/11/97
PRODUCT PROFILE
BOLERO VARIANTS
Scorpio SLX
Features and Specification
Make
Mahindra
Model
Scorpio
Variant
SLX
Body Type
SUV
No. of Doors
Fuel Efficiency:
City Mileage
Highway Mileage
9.4 kmpl
12.4 kmpl
Fuel Capacity
60 liters
Fuel Type
Diesel
Fuel Grade
Engine Parameters:
Displacement
2523cc
Bore
Stroke
Cylinder Configuration
4 inline
Compression Ratio
No. of Valves
Aspiration
Fuel System
Turbo Charged
DI
Horse Power
63.12@3200 ps@rpm
Torque
180@1440 Nm@rpm
Power Steering
Yes
Front Suspension
Rear Suspension
Leaf spring
Dimensions:
Length
4056 mm
Height
1880 mm
Width
1660 mm
Wheel Base
2680 mm
Clearance
200 mm
Krebs Weight
Drive Train
Type
Manual
Gears
Drive Line
RWD
Comforts Features
AM / FM Radio
Present
Scorpio SLE
Feature and Specification
Make
Mahindra
Model
Scorpio
Variant
SLE
Body Type
SUV
Number of Doors
Fuel Efficiency:
City Mileage
Highway Mileage
9.5 kmpl
13.2 kmpl
Fuel Capacity
60 liters
Fuel Type
Diesel
Fuel Grade
Engine Parameters:
Displacement
2523cc
Bore
Stroke
Cylinder Configuration
4 inline
Compression Ratio
No. of Valves
Aspiration
Fuel System
Turbo Charged
DI
Horse Power
63.12@3200 ps@rpm
Torque
180@1440 Nm@rpm
Power Steering
Yes
Front Suspension
Rear Suspension
Dimensions:
Length
4056 mm
Height
1880 mm
Width
1660 mm
Wheel Base
2680 mm
Clearance
180 mm
Krebs weight
Gross weight
Drive Train
Type
Manual
Gears
Drive Line
RWD
Comfort Features
Air-Conditioning
Yes
Except Air conditioning, no other comfort features are present in the Scorpio SLE.
Same as SLX no safety features are present in the Scorpio SLE.
Scorpio DIZ
Feature and Specification
Make
Mahindra
Model
Scorpio
Variant
DIZ
Body Type
SUV
Number of Doors
Fuel Efficiency:
City Mileage
Highway Mileage
9.5 kmpl
13.2 kmpl
Fuel Capacity
60 liters
Fuel Type
Diesel
Fuel Grade
Engine Parameters:
Displacement
2523cc
Bore
Stroke
Cylinder Configuration
4 inline
Compression Ratio
No. of Valves
Aspiration
Fuel System
DI
Horse Power
63.12@3200 ps@rpm
Torque
137.5@2000-2500 Nm@rpm
Power Steering
Yes
Front Suspension
Rear Suspension
Dimensions:
Length
4056 mm
Height
1880 mm
Width
1815 mm
Wheel Base
2680 mm
Clearance
200 mm
Boot
Krebs weight
Gross weight
5.4 kg
Drive Train
Type
Manual
Gears
Drive Line
RWD
SCORPIO DI
Feature and Specification
Make
Mahindra
Model
Scorpio
Variant
DI
Body Type
SUV
Number of Doors
Fuel Efficiency:
City Mileage
10.7 kmpl
Highway Mileage
12.9 kmpl
Fuel Capacity
60 liters
Fuel Type
Diesel
Engine Parameters:
Displacement
2523cc
Bore
Stroke
Cylinder Configuration
No. of Valves
Aspiration
Fuel System
4 inline
8
Turbo Charged
DI
Horse Power
63.08@3200 ps@rpm
Torque
180@1440 Nm@rpm
Power Steering
No
Front Suspension
Rear Suspension
Leaf springs
Dimensions:
Length
4260 mm
Height
1810 mm
Width
1815 mm
Wheel Base
2680 mm
Clearance
183 mm
Krebs weight
Drive Train
Type
Manual
Gears
Drive Line
RWD
Comfort Features
Air-Conditioning
Yes
Except Air conditioning, no other comfort features are present in the Bolero SLE.
Same as SLX no safety features are present in the Bolero SLE.
Commanding Presence:
Premier motors as a centralised air-conditioned showroom of its kind in Uttarakhand, spread
gracefully and decorated elegantly over an impressive 2500 sq.ft at Dehradun, Being equipped
with affable front office staff and adept professional technicians, Provide a perfect of quality
Service and Reliability.
Space Friendly:
The interiors are aimed at making you feel completely at ease, In luxury. Because for us the
customer is king, one who deserves a regal offering. The setting is apt for times when you need
to switch into a relaxed state of mind.
Attention to Details:
We provide genius spare parts and accessories to ensure exceptional performance. Every single
aspect related to your vehicle is taken care of at our premises.
Models:
Mahindra & Mahindra has been launching various type of MUVs and cars from the year of 1945,
keeping in mind the quality, design, driving, comfort, fuel efficiency, and service and resale
value. These from a formidable force that gives our customers the pride and the joy of value
forever. What drives M&M is
Commitment
Leadership
Any an eye for appropriate technology.
Since 1945, when M&M first began manufacturing MUVs & LCVs, M&M have been engaged
in a single-minded endeavour to bring you cars that only state-of-the-art, but are also some f the
most environment-friendly vehicles in this world-a reflection of our commitment and care, for
better environment.
At the heart of every M&M is a unique engineering and an optimal mix of power and economy.
All this is supported by M&M nation wide dealership network and automated workshop that
provide excellent after sale service
The company has constantly exploring new opportunity to define the shape to tomorrows
driving technology.
Promotional Activities:
The promotional activities adopted by premier motors are
a. Test Driving
b. Free Driving
c. Hoarding
d. Discounts
e. Advertisement in Newspaper and magazines
f.
Gift Schemes
g. Free Services
h. Mileage Contents
Promotional expenses have been borne by both Dehradun premier motors and M&M, shares in
advertisement cost.
Service Offered:
Six Service and paid service after sale of Cars.
INTRODUCTION TO STRATEGY
M&M- MARKETING STRATEGY FOR SCORPIO.
Introduction:
Today most international car manufacturers have entered the Indian market. India is the second
largest two wheeler manufacturer in the world an also the second largest tractor manufacturer. It
is also the 5th largest commercial vehicle manufacturer and 3rd largest car market.
Mahindra & Mahindra Limited is a major automobile company in India. It was setup
in 1945 to make general purpose utility vehicles for Indian market. The company has started a
separate sector, Mahindra Systems and Automotive technologies (MSAT) in order to focus on
developing components as well as offering engineering services. Now, branched out into
manufacturing of agricultural tractors, and also light commercial vehicles. The company
constantly manufactures its range of vehicles, whilst researching and developing new products.
The more diversified parts of the business have been spun-off as separate business entities, and
activities organized under various business groups. These groups now cover a wide range of
markets: automotive, farm equipment, financial services, infrastructure and development, IT and
automotive components. M&M's automotive division is in the business of manufacturing and
marketing utility vehicles and LCVs. It has a market share in excess of 50% in this segment and
manufactures the Scorpio SUV range.
Situation Analysis:
Utility vehicles are rapidly capturing the market due to its multifarious use.
Utility vehicles are found in two kinds: - SUV or Sports Utility Vehicles and MUV or Multi
Utility Vehicles. Its spacious interior and sturdy exterior have made this vehicle one of the fastest
selling vehicles of India. This is multi use vehicle to accommodate many passengers in one
vehicle, especially while going for a long trip with a big family or with a folk of friends. Sporty
attributes of this vehicle is not negligible when mentioning about its use. To name few SUV
manufacturers of India- Fiat India, Ford Motors, Force Motors, General Motors, Hyundai
Motors, Hindustan Motors, Mahindra & Mahindra, Porsche, Tata Motors, Toyota motors etc.
Though the SUV market is very small, Anand Mahindra, Vice- Chairman and
Managing Director, Mahindra & Mahindra says, "The very reason the SUV segment is small is
because there are very few offerings in the segment. The Scorpio is going to help grow the
segment in India." Mahindra saw that Indias pot-holed roads, difficult terrain and great distances
often held up as the countrys disadvantages were actually great strengths for an SUV
maker. Improvement in road networks and reduction of excise taxation encouraged sales of cars
among the young population. They choose to enter the market when there was very little product
development and when all the suppliers were hungry for business.
Customers: A study conducted to understand the UV customer by an advertising agency
Interface communication revealed the following criteria for customer buying process:
Competitors:
In late 1990s Mahindra, a leader in UV segment was fast witnessing loss of market
share. Global players were entering the auto market and aggressively launching products. The
Mahindra image was a barrier as well. Though it had positives as rugged, tough, reliable,
economical vehicle. The negative parameters were that it was uncomfortable, rough, not easy,
rural imaginary, down market etc.
Hence they decided to launch a product with the following objectives:
Providing low cost transportation rate to rural and semi urban market.
M&M products, such as the Scorpio and its smaller cousin Bolero, are now competing
effectively with foreign competition at home. The automotive division, which makes utility
vehicles (UVs) and SUVs, now contributes 61 per cent to M&Ms revenues. Of the 288,601
UV/SUVs sold in India in the year up to March 2008, 148,761 or 51.6 per cent were M&M
vehicles and 39,935 of these were Scorpios.
STP analysis:
M&M has established it self in many divisions such as the automotive sector, Farm equipment
sector ,IT sector etc.M&M has fashioned a three-pronged strategy for the automotive sector
passenger cars, commercial vehicles and utility vehicles. The Mahindra Groups Automotive
Sector is in the business of manufacturing and marketing utility vehicles and light commercial
vehicles, including three-wheelers. It is the market leader in utility vehicles in India since
inception, and currently accounts for about half of Indias market for utility vehicles. Although
created in 1994 following an organizational restructuring, the Automotive Sector can trace its
antecedents back to 1954. The iconic jeep that led American G.I.s to victory in World War II is
the very same vehicle that drove the Mahindra Group to success in the Automotive Sector.
Mahindra & Mahindra Limited, the flagship company of the Group, was set up as a franchise for
assembling general purpose utility vehicles from Willys, USA. Over the years, the Group has
developed a large product portfolio catering to a diverse customer base spanning rural and semiurban customers, defence requirements and luxurious urban utility vehicles. In 2002, it launched
the indigenously engineered world-class sports utility vehicle-Scorpio, which bridges the gap
between style and adventure, luxury and ruggedness, and performance and economy
Scorpio belonged to the SUV. M&M further believes that the target segment and
pricing for the Scorpio will ensure that it is not only competing with other utility vehicles in the
segment, but also with the mid-size car segment (priced in the Rs 5-7 lakh range), which includes
the likes of the Ford Ikon, the Opel Astra, and even cars such as the Fiat Palio (the upper-end
model). Although, M&M remains a leader in the domestic UV segment, it has been steadily
losing market share to the likes of Tata Engineering (with the Sumo and Safari) and Toyota (with
Qualis) over the past few years. Further, there is more competition coming up in the segment
with the likes of Suzuki (with Grand Vitara) and Hyundai (with its Terracan) among others set to
enter the market this year. However, M&M is confident that the Scorpio's value-for-money
proposition will make it score vis--vis the competition. While both the Terracan and Vitara are
expected to be priced in the Rs 13-18 lakh range, the Scorpio is priced even lowe than its current
competition.Its target customers were life style oriented customers. The value proposition stated
the vehicle that provides luxury and comfort of a car and, adventure and thrill of a SUV. The
launch also marks a paradigm shift in the company's strategy in terms of design, spends, as well
as focus. n fact, the very development of the product has been a success in its own right. It took
M&M Rs 600 crore, six years, a small team of 120 people and 74 prototypes to finally launch the
indigenously developed Scorpio. The company has also sourced the best of available technology
from across the globe - ranging from the likes of Renault (for the petrol engine), Visteon, BEHR,
Meritor and so on. When Scorpio hit the streets, it arrived as an SUV with a `car plus' package.
Two-and-a-half years later, it has caused a paradigm shift 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.)
We believed that we had a shot at being a niche global player in SUVs, says
Mahindra, who recently bid against Tata Motors to buy Jaguar and Land Rover. Mahindra saw
that Indias pot-holed roads, difficult terrain and great distances often held up as the countrys
disadvantages were actually great strengths for an SUV maker. If a vehicle could go in India,
it could go anywhere, he says. We made go-anywhere vehicles for the army. It was a
readymade global positioning.
According to automobile manufacturers' data, the premium utility vehicle segment
grew at approximately 14 per cent up to June 2002. Unlike for its competitors in the UV
category, people who wished to purchase a C class car would also consider a Scorpio," says
Hormazd Sorabjee, Editor, Autocar India. Cut to market expansion of premium utility vehicles
against `C' class cars. Out of the total number of premium utility vehicles and `C' segment cars
put together, premium UVs accounted for about 21 per cent during the year 2000. The figure
touched 49 per cent this year. The Scorpio launch did play a significant role in driving the UV
market up. This to me is the ultimate measure of success - the ability of a company to drive the
growth of markets. Marketing gurus suggest that the positioning of Scorpio was also very bold
and innovative.
The easiest temptation for M&M would have been to position Scorpio as a `better-looking SUV'
or `a rugged, yet good-looking SUV' in sync with its tough vehicle pedigree. But this would have
made Scorpio a prisoner of the category, and it would have had to compete with other players in
the category. This also would have restricted the growth of the category by itself.
"The `car plus' approach is indeed very innovative and bold. Bold, because it goes against the
existing frames of reference of customers and hence the need to create new frames of reference,"
elaborates Koshy.
The new frame of reference also had a distinct brand strategy associated with it. It all started in
1997, when M&M set up Project Scorpio in quest for new markets. As much was written about
the project, the brand name Scorpio had built enough equity. Internal research showed that
Scorpio featured in the top two suggested names.
Since the name was reasonably accepted, the company plumped for `Scorpio from Mahindra'.
"Those were the years when there was instability in the automobile sector, especially after the
Daewoo fallout. `Scorpio from Mahindra' was the shadow endorsement strategy used to endorse
stability in these times," explains Rajesh Jejurikar, Executive Vice-President (Marketing &
Sales), Automotive Sector, M&M Ltd.Earlier, M&M did not have the right to use the name
Scorpio as it was originally a Ford brand name for a sedan. The company, however, got approval
from the latter to use the name, except in certain European markets. Says Jejurikar, "The product
will cut across all geographical segments. We are targeting it at both the urban as well as rural
consumer. The Scorpio will be positioned as a value product targeted at the young, demanding
male."
Marketing implementation:
Product:
The design moment of the Scorpio was also the defining moment for M&M as a company and
brand. It changed the way M&M saw itself in the mirror overnight. It was a classic case of a
product defining a strategy instead of the other way around. The Scorpio inspired M&M to
embrace new strategies that would transform the company from a mere tractor and soft-top
vehicle maker into a brand-conscious yuppie of the corporate world. Today, the gently greying
Mahindra, who once wanted to make films, not automobiles, has proved adept at steering his
over Rs 10,000-crore Company through this change. Between July 2003 and January 2004, the
brand was subjected to new product developments. Quieter engines were introduced after
adopting the chain drive engine system. The seats were improved, and the new two-toned look
was developed. Recently, Scorpio installed a Common Rail Diesel engine to meet the BS III auto
emission norms
As the product development took off, a phased communication strategy was plotted for the
brand. During the first phase, the need to deal with issues such as lifestyle imagery was identified
by the Mumbai-based advertising agency Interface Communications. As a result, the television
commercials depicted the product and a pan-global imagery, even as the print advertisements
focused on functional benefits. So one got to see copies like `Car you walk into, and not crawl
into' across newspapers.
"In phase two, we did not change the television campaign, but our print creative were centered
on communicating new product developments," says Jejurikar. Mahindra claims that the new
Scorpio is built around customer's needs. 45 months of market research and a few customer
outreach programs later, they seem to be on the right track. The legroom complaints have been
taken care of with middle row seats that slide. They've also got new vents up front on the dash
that I couldn't really figure out and angular aircon vents at the rear, so the third row isn't left out.
If you're not satisfied with it, don't sweat, as you can also fit a split air conditioner like the one
you find in other big SUVs at any Mahindra dealership.
The third phase of communication was released in July 2004 when the automotive giant focused
on the `car plus' statement. What followed was a series of advertisements focusing on people and
lifestyle rather than the product.
Brand:
A recent brand equity study conducted by IMRB International ranked the Scorpio in the highestlevel of its construct, the `Olympic' category. An Olympic brand is one that is "well-known, wellloved and has a large core following. The results are based on a research conducted by IMRB
using Millward Brown's Brand dynamics model, an internationally recognized brand equity
measurement tool.Mr Vivek Nayer, Vice-President - Marketing, Automotive Sector, M&M, said,
"Scorpio is the only four-wheeler in its class in India to have achieved this, which speaks
volumes of the customers' faith in the brand.
Pricing:
It adopted a penetrative pricing strategy. Its competition with accent, ikon, Qualis, Tata sumo.
The second is the pricing strategy. M&M's aggressive pricing strategy appears to hinge on the
promise of viable volumes for the Scorpio in the initial period. Pricing for the Scorpio will
ensure that it is not only competing with other utility vehicles in the segment, but also with the
mid-size car segment (priced in the Rs 5-7 lakh range), which includes the likes of the Ford
Ikon, the Opel Astra, and even cars such as the Fiat Palio (the upper-end model).
The pricing strategy of Scorpio was definitely penetrative, especially when it lured the C
segment buyers, and caught the fancy of the B segment buyers. The ability of any company to
play the price game is a function of cost competitiveness, explains IIM's Koshy. In this specific
case, lower price needs to be looked at as `invitation' price for the basic version while there are
others who buy these kind of vehicles seeking a fully loaded version. The Mumbai ex-showroom
prices vary from Rs 6.52 lakh to Rs 7.01 lakh.M&M is not betting on playing the price game in
this market. I think that the company is certainly into the image game. Price therefore is more a
tactical element and not a strategic vehicle," elaborates Koshy. The pricing could be on higher
range because at the time of launch, people were willing and able to obtain loans, increasing
acceptability of using financing to purchase vehicles.
Promotion:
Prior to Scorpios launch, the team held a press-driven event in June 2002 to sell the positives of
the car to auto experts and journalists. The event created publicity for the functional elements of
the car and its attractive price point, leaving the television advertisements to sell the yuppie
image.
"All Scorpio advertisements show the vehicle in urban settings driven many times by women
conveying the message of "ease of driving." Unlike competitors' advertising strategy, no imagery
of off-road settings and `wilderness' or `break-free' connotations were depicted," says IIM's
Koshy.Other international majors are battle scarred in other markets. All of them have
capabilities to compete with the best anywhere. But what Scorpio did was alert all of them that
nothing but the best will do in the Indian market too. "Is it not interesting that the tag line of
Scorpio TV ads says `nothing else will do'
For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote the
new avatar of Scorpio. Created by Interface Communications, the mass media campaign includes
a series of press advertisements and a television commercial. As for the rationale behind the
relaunch of Scorpio, says Mahindra & Mahindra Ltd executive vice-president (marketing &
sales) Rajesh Jejurikar: After conducting an extensive market research (with AC Nielson), we
upgraded our existing model with new features. However, the positioning of the brand will
remain the same so the ad line will continue to be the sameNothing Else Will Do.
The company plans to focus on press ads to highlight the new features and improved fuel
efficiency of the upgraded version of Scorpio. To support mass media advertising, well be
hosting road shows and ground promos. Till now we have sold over 20,000 Scorpios since we
launched this brand. With this improved version, we will phase out the old brand, he adds.
In addition, Mahindra & Mahindra has recently launched a nationwide talent search programme
titled Scorpio Speedster With Timex in 10 cities across the country. Through this initiative, the
company plans to strengthen Scorpios brand positioning of being a youthful and sporty SUV,
says Mr. Jejurikar. Among other initiatives the company plans to increase the vehicle's appeal
includes the Top Gear Club (which will offer a whole range of value-added services for Scorpio
consumers). M&M has also started a toll-free `Scorpioline' to deal with customer queries
regarding the vehicle. Further, the company has launched dealer up gradation programs, in which
the showrooms (which will showcase the Scorpio) have been redesigned and given a trendy look.
Says a company official, "The M&M showrooms across India now share the Scorpio's brand
personality - sporty and technologically advanced. We plan to set new service paradigms through
our dealer network."
Place:
The dealership roll-out will be conducted in three phases. In the primary phase, approximately 45
dealerships will be covered. The Scorpio predecessor, Bolero, (which had earlier replaced the
Armada) will not be discontinued. However, it is with the Scorpio that M&M hopes to find a
foothold in the export markets.
The company will be rolling out the Scorpio in two phases outside India. Says Pawan Goenka,
Executive Vice-President, Product Development, "In the first phase, we will be looking to roll
out in markets such as Indonesia, Russia, South Africa. We are expecting approximately 15 per
cent of the sales for Scorpio to come from overseas."
According to company officials, M&M will be following a different strategy in each of these
countries based on local conditions. Says a company official, "There can even be the possibility
that the Mahindra brand name may not be used for marketing the vehicle in certain countries
depending on the market characteristics. The focus will be on selling the vehicle." Meanwhile,
the company feels the Scorpio will attract the price conscious consumer even in these highly
competitive markets. M&M has already inked a tie-up with the Sun Group in Russia, and is in
talks for similar tie-ups in Indonesia and Malaysia. Says Jejurikar, "The UV market overseas is
huge. For instance, in Indonesia it forms 80 per cent of the entire market, while the Asia average
is about 40 per cent. In India, the figure currently stands at about 15 per cent." Distribution
strategy was to serve fewer markets but to serve them all. It had a phased launch, showroom exp
and infrastructure.
The Scorpio would continue to sell for many more years even though new vehicles bearing the
Mahindra brand may unseat it from its lofty perch. But none of them are likely to be an avatar
that would consume the company the way the Scorpio did. NEW DELHI, Enthused by the
growing popularity of its latest offering Scorpio in the metros, M&M is preparing to drive the
sports utility vehicle to the semi-urban towns.The firm has already chalked out marketing plans
for these smaller towns, where the Scorpio is slated to sting competition by October this year. It
is also readying plans to introduce more variants on the Scorpio, V-P (automotive sector) Rajesh
Jejurikar said. We will look at feeding these markets with only the diesel version...We will start
with Alwar and Aligarh in the north, Hubli and Trichi in the south and Raipur in the west. Then,
we
will
gradually
expand
reach
into
these
towns,
Jejurikar
said.
With the rains having started in some parts, we can move ahead with debuting the Scorpio in
these towns, he added. The firm has targeted to introduce the Scorpio in around 45 towns by
December this year. However, there are no immediate plans to introduce a soft-top version of the
vehicle in these markets. Soft-top vehicles are in high demand in the semi-urban and rural towns,
where vehicles of the size of Scorpio are generally used for transport purposes. Other options
include a pick-up version for overseas.
Creating value, Extracting value and Sustaining value:
Value for money was their main criteria to serve the customers. But more than anything, the
company is banking on the Scorpio to bring about a change in image and perception about the
company. Often dubbed as a company which makes sturdy vehicles for the rural markets, the
Scorpio could give M&M a new lease of life. The launch also marks a paradigm shift in the
company's strategy in terms of design, spends, as well as focus. Scorpio has topped the charts of
both customers and non-customers. While the TNS Automotive Customer Satisfaction voted
Scorpio as the best SUV after Toyota Qualis, the Indicus Customer Study registered the
perception of the brand among people at large.
Mahindra claims that the new Scorpio is built around customer's needs. 45 months of market
research and a few customer outreach programmes later, they seem to be on the right track. The
legroom complaints have been taken care of with middle row seats that slide. They've also got
new vents up front on the dash that I couldn't really figure out and angular aircon vents at the
rear, so the third row isn't left out. Its with high-tech features, great looks, great mileage in its
class, good interiors.
According to Delhi-based Indicus Consumer Tracker, an independent brand-tracking firm, its
study conducted in January this year revealed that 3.8 per cent of the 3,690 sample size recalled
the Scorpio ad while 2.2 per cent recalled the brand, and 1.8 per cent switched to the brand. The
figures seem diminutive, but when extrapolated on to a larger universe of product categories,
they tell a different story.
Sales too have been zooming, says the company. According to brand-wise data, the
company claims to be matching sales of most C segment cars, even outselling some of them. In
the last six months, M&M sold 14,389 Scorpios, against a total C segment sales of 79,346,
according to company data.M&M is also attempting innovative strategies on the digital turf, and
is currently eyeing gaming as a means to promote the brand. So, the client-agency team is toying
with the idea of game called `turbanator' for the mobile gaming fraternity.
Scorpio achieved its targets on market share and achieved volumes of 12000 vehicles sale in the
first 9 months of its launch. Scorpio advertising had a very high recall for the Mahindra brand as
well as product.Advertizing also positioned Scorpio as a powerful vehicle with a sporty look.74
vehicles were built only for testing. They used simultaneous testing and examining process. The
product was put through NOVA-C(New overall vehicle audit-customer) system to measure the
overall quality of the production process. A world class manufacturing setup was spread over 120
acres with a capacity of 40,000 units annual on a shift basis. It was more flexible in terms of
partners. The company looked east instead of west for cheaper components and allowed
customers to choose their own collaborators.
To reduce costs, Goenka contracted manufacturing to companies that had technology but had
never been given the chance to prove it. For instance, South Korean suspension maker Samlip
had never designed the full suspension system for a vehicle but M&M entrusted it with that task.
Another South Korean company, Wooshin Systems, that had also never done a full body shop
design, did the body jigs and fixtures. But such moves stood M&M in good stead. Its once-small
suppliers have become global players and M&M has found itself possessing a world-class supply
chain.
Technologically advanced
Proud to own.
The revenue of company increased about 37% in a year and the PBIT about 47%.Their share
prices also increased .The overall positive opinion about Mahindra increased by 18% among
SUV owners and 11% among all car owners.
Sustainability:
Mahindra have been practicing Alternative thinking across various disciplines.
Brand enhancement.
Raiding America:
Mahindra is now obsessed with taking both his rugged off-roaders to global markets.
This ambitious plan includes entering the most competitive auto market in the world, the US.
Starting next year, M&M will ride into the US market on the back of a multi-million-dollar
marketing plan and aim to entice 10,000 Americans into overlooking competition from the likes
of Hondas CRV and pay about $25,000 apiece for its Scorpios. It will mark the first time an
Indian vehicle will lock horns with the heavyweights of the auto industry in the worlds
toughest arena.
SUVs have advantages in safety, cargo space and power that Americans demand. The chief virtue
of the automobile is the personal independence it gives the owner--a car can go anywhere roads
go and some places they don't, with a speed unimaginable in the pre-automobile era. Its
secondary virtue is protection--from the elements and from collision. In both a car and an SUV,
passengers are protected by the vehicle's structure from the wind and rain. But in a collision, the
SUV simply provides more protection than a smaller car does. Larger cars better protect the
people in them--that's why your father wanted you to get a huge, boxy old car when you were
sixteen instead of a little Mustang--so that you would live through your first accident. Protection
is a big advantage. Americans are not very easy customers. When Nissan wanted to enter the US
market in 1958, it set itself the target of selling just 500-1,000 vehicles in the first year. It sold
83. At least one Chrysler vehicle and a Ford model have failed because they did not have enough
cup holders!
Goenka says the company has set itself a target of selling 10,000 vehicles in the US in 2009
and they will all have holders in the front and back that can hold large cups, laughs Arun Jaura,
who has just been elevated as the chief technology officer of the group. Jaura, who built the Ford
Escape hybrid in Detroit, is busy rolling out hybrid vehicles for M&M now. Mahindra has not
decided on the exact launch date for its SUVs in the US, but it is rumoured that the vehicles will
debut by January next.
America is the largest automobile market in the world with annual sales of 13 million units. It is
expected that the Mahindras US foray would have be significant due to the growing importance
of small and fuel-efficient cars among American car buyers.
Mahindras top selling SUV in India is the Mahindra Scorpio. This SUV is available in several
versions, including single and dual cab pickup versions. The engines available on the Scorpio in
India are not the smoothest running or the most powerful. But it is unlikely Mahindra would
tackle the US markets with the same engines and transmissions which are adequate for India.
Automotive News Chappell believes US consumers would be hesitant about buying an unknown
vehicle made in India. It took Americans 25 years to accept that the Japanese really knew how
to build cars, he says. Even Hyundai is still trying to convince shoppers that its cars are
reliable and well built. But M&M is not a completely unknown brand in the US because the
company sells tractors there. It has sold about 10,000 tractors in the US and sales are growing at
about 25 per cent annually. But in reality, the Mahindra identity is as familiar to American car
buyers as aloo palak is to a cowboy, Chappell says.
Mahindras days studying filmmaking at Harvard gave him an understanding of the American
psyche. To connect with American buyers, M&M is likely to badge its American pickups with a
true-blue American name that invokes the great outdoors Mahindra Appalachian.
Cracking America will be tougher than selling vehicles in Africa, Mahindra admits. So hes
roped in a partner who knows how to fight tough battles. John Perez, the auto maverick who
owns Global Vehicles and has brought a variety of autos from around the world to the US, will
be the importer for Scorpios in the US. Perez has already declared that he hopes to sell about
45,000 Scorpios in 2009, which would give M&M revenues of $1 billion in the US alone. To
achieve this, Perez says, he will sign on 300 Scorpio dealers. That makes the math of his
challenge appear easy each of the 300 dealers will only need to sell three vehicles per week to
give Perez and Mahindra sales of 45,000 Scorpios.
If true, M&M would become the first Indian auto company to launch passenger vehicles in the
US under its won brand. The company already assembles and markets tractors in the US under
its own label.M&M has appointed Global Vehicles USA as its distributor in US, according to the
report. The distributor is currently scouting for dealers across key states. Global Vehicles is also
the distributor of Mahindra tractors.
The fact that M&M is planning a US entry indicates that the next upgrade for the Scorpio would
have substantial improvements in terms of engine and transmission, safety features and handling.
M&M is reportedly working on an upgraded engine for the Scorpio, which would be launched
some time next year.
M&M is understood to be working on a major design makeover for the Scorpio. The model has
not seen a major upgrade, except for the recent cosmetic uplift, since launch many years
back.M&M is also talking to a couple of assemblers in Ohio and other states to assemble
knocked-down kits of their vehicles. Though this would raise costs, the company would net two
benefits. It would sidestep the 25 per cent chicken tax levied on imports. More importantly,
local assembly would help overcome the average Americans resistance to foreign brands, lesson
German and Japanese automakers have learned.
Also United States has the stringent emission norms in the world, infact all the major
manufacturers of diesel passenger vehicles except Mercedes-Benz have withdrawn from the
United States market because of difficulties in meeting stricter standards for the 2007 model
year. Mahindra & Mahindra hopes by producing fuel efficient, T2B5 emission compliable
vehicles with a low price point it can attract buyers for its Scorpio and other pick-ups.
Another interesting take Mahindra would have for the US market is that its SUVs are fuel
efficient. For one, the Scorpios they would export would be diesel, and they are not as big, or as
powerful as any of the run of the mill SUVs in the US. So, the strategy would be to sell them as
fuel efficient vehicles. With the new 2.2L engine and 6-speed automatic transmission Mahindra
will claim 39mpg(miles-per-gallon) as its fuel efficiency for the Scorpio.
M&M will also spend $50 million (Rs 200 crore) to upgrade the Scorpio for the US market as
the Indian version will not meet safety norms or customer needs. For one, the company is
working on Project W408, which is fitting the Scorpio with a reconfigured version of the
powerful mHawk engine, a second-generation 2.2-litre common-rail system M&M developed
entirely in India. This is important as Mahindra expects the Scorpios fuel-efficient and lowemission engine to win over customers who feel guilty about driving gas-guzzling automobiles,
yet want the size and performance of an SUV. Fuel efficiency is more of an issue than its been
in the past, says Rebecca Lindland, research director of automotive group at Global Insight, an
independent research firm. But its not the only issue, nor is price. Consumers still monitor
safety ratings, reliability, comfort and convenience even more than gas mileage.
They would offer US consumers multiple Scorpio variants a single-cab pick-up, a double-cab
pick-up and the full-size SUV. Each will have new seats, a new four-channel ABS, dual-stage
airbags, lots of electronics and everything will be T2B5 compliant, he says. T2B5 or Tier 2 Bin
5, is the American emissions standard that automobiles have to follow. Perez has said all vehicles
would come with a four-year, 60,000-km warranty. On paper, all this would give M&M a
credible position in the mid-size SUV market where the company wants to position itself as a
value-for-money alternative. But it will take a lot more to actually get US consumers to want to
have a vehicle wearing the M&M badge parked in their driveways, next to their neighbours
Toyotas and Fords.
Apart from the automatic transmission, the American Scorpio will have the fully loaded and will
be all the necessary features of international standard High- end features includes a four-channel
anti-lock brake systems (ABS), occupants safety system, new lumber seats and air bags, fourwheel drive with electronic shift and a electronic vehicle stability system to be introduced in the
Scorpios US variant. Mahindra is also developing a new communication and navigation system
for the SUV, to be fully customized for the US. These equipments will make Scorpio to meet
stringent safety norms and satisfy the more demanding American customer.Besides these
emission standards, the vehicle has to comply with the Federal Motor Vehicle Safety Standards
(FMVSS). According to the National Highway Traffic Safety Administration Web site (
www.nhtsa.dot.gov), these would include 29 standards on Crash Avoidance like standards for
rear view mirror, control and displays, theft protection, etc; Crash Worthiness standards (16) for
occupant crash protection, seat belt assemblies, roof crush resistance etc; Post Crash standards
like fuel system integrity, flammability of interior materials, etc.
There are other regulations that govern FMVSS like manufacturer identification, vehicle
identification number, etc.The FMVSS standard is a self-certification process and therefore the
onus is on the original equipment manufacturer to comply with them, said Dr Jaura.These
standards just make the car viable to sell in the market, but in order to meet market demands and
make it a lucrative proposition in the worlds most competitive market, the company has
identified diesel-run vehicles (backed with 4-year, 60,000 mile warranty) as their forte in the
gasoline driven SUV and light truck market.
However, the company has to undergo various modifications to its present generation of Scorpio
models. Curiously, the largest financial risk M&M could face in the US is litigation and recalls.
American safety laws are demanding and even small faults can result in high-cost product
recalls. P.N. Shah says the company is aware of the complexities of the market and is prepared
for it.
M&Ms SUVs would face stiff competition from Toyotas RAV4 and Hondas CR-V.
Competition, but this would be especially aggressive in this recession year, when cars sales are
expected to fall 6 per cent, according to US analysts.As in Africa, it is M&Ms US dealers who
will hold the key to the companys success. If dealers feel they are being rewarded by selling a
car, they will overcome great obstacles to continue selling it.Mahindra wants his vehicles to
compete with the best because he believes it would help the company improve its abilities and
class. Having to cater to the most demanding customers automatically raises the bar. It would
force M&M to become truly global, a process that began when the engine of the first Scorpio
turned over.In many ways, the US entry will also be the champion vehicles last lap. Though
M&M is counting on its trailblazing Scorpio to lead the way into the US, it is also preparing for
life after the ageing winner. The company is spending Rs 500 crore-600 crore to develop a
monocoque SUV for the US market. Codenamed W201, the vehicle will be powered by the
mHawk engine, albeit in a completely redesigned and reconfigured form. It will hit the US
market in the next couple of years.
While many Indian companies make the mistake of falling in love with their products while
shying away from investing in soft elements such as advertising, Mahindra will spend as much
Rs 200 crore ($50 million) on promoting his US vehicle as he will spend on developing it.
Global Vehicles has hired the iconoclastic advertising firm Strawberry Frog to position its
vehicles. Our objective is to launch a car in the US in a way that has never been done before,
Scott Goodson, founder and chief executive of Strawberry Frog told the media on the sidelines of
Goafest, an international advertising conference. We are going to launch it in a way that people
are going to say Holy wow! That is cool!
enthusiast who are very much associated with Royal Enfield, Americans are extremely loyal to
their SUV makers. When Toyota and Honda entered the American market they faced stiff
opposition. They employed lot of Americans and invested a lot in America. Intact, they projected
them as American producers and circumvent the natural opposition to foreign makers from the
American patriotism. Mahindra & Mahindra has to follow its forerunners if it wishes to be
serious player in the American market.
Also, many of the yardsticks are different unlike Indian customers who are price conscious,
American customers cannot be lured only by the low price point. They look for the quality,
quality problems will keep the customer off the product and poor quality even can destroy the
brand. Earlier Hyundai and nowadays even the mighty Toyota is facing lot of problems in the
quality front. Also, unlike other international manufacturers Mahindra do not have multiple
products for United States (at least as of now) it has to solely depend on its Scorpio. Hence
Mahindra has to work hard to keep the number of defects to a minimum before it launches the
first Indian product in America. Mahindra wants to be the next Land Rover.
Finally, Mahindra has effectively planned for its US entry concentrating on all the elements
needed for its global launch.It has done a lot of market research on its entry in US and also
upgraded the Scorpio as needed by the American customers it will definitely prove to be
successful in the US market.
To know the customer perception about features, low maintenance cost and looks of
Scorpio.
To know the customer satisfaction about the safety and comfort provided by Scorpio.
To provide suggestions, in improving the marketing strategies and the company sales and
profitability .
To know the marketing strategy towards the after sales service offers by M&M.
RESEARCH METHODOLOGY
Research Methodology
A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendations and ultimate actions. The research process provides a
systematic, planned approach to the research project and ensures that all aspects of the research
project are consistent with each other.
Research studies evolve through a series of steps, each representing the answer to a key question.
INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of
evaluation and revaluation of primary and secondary research. The techniques and concepts used
during primary research in order to arrive at findings; which are also dealt with and lead to a
logical deduction towards the analysis and results.
RESEARCH DESIGN
I propose to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be
further taken up in the next stage of exploratory research. This stage shall help me to restrict and
select only the important question and issue, which inhabit growth and segmentation in the
industry.
The various tasks that I have undertaken in the research design process are :
Defining the information need
Design the exploratory, descriptive and causal research.
RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysis
It has a logical and hierarchical ordering:
Determination of information research problem.
Development of appropriate research design.
Execution of research design.
Communication of results.
Each step is viewed as a separate process that includes a combination of task , step and specific
procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and
ongoing.
EXPLORATORY RESEARCH
The method I used for exploratory research was
Primary Data
Secondary data
PRIMARY DATA
New data gathered to help solve the problem at hand. As compared to secondary data which is
previously gathered data. An example is information gathered by a questionnaire. Qualitative or
quantitative data that are newly collected in the course of research, Consists of original
information that comes from people and includes information gathered from surveys, focus
groups, independent observations and test results. Data gathered by the researcher in the act of
conducting research. This is contrasted to secondary data, which entails the use of data gathered
by someone other than the researcher information that is obtained directly from first-hand
sources by means of surveys, observation or experimentation.
Primary data is basically collected by getting questionnaire filled by the respondents.
SECONDARY DATA
Information that already exists somewhere, having been collected for another purpose. Sources
include census reports, trade publications, and subscription services. There are two types of
secondary data: internal and external secondary data. Information compiled inside or outside the
organization for some purpose other than the current investigation Researching information,
which has already been published? Market information compiled for purposes other than the
current research effort; it can be internal data, such as existing sales-tracking information, or it
can be research conducted by someone else, such as a market research company or the U.S.
government.
Secondary source of data used consists of books and websites
My proposal is to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be
further taken up in the next stage of exploratory research.
DESCRIPTIVE RESEARCH
STEPS in the descriptive research:
Statement of the problem
Identification of information needed to solve the problem
Selection or development of instruments for gathering the information
Identification of target population and determination of sampling Plan.
Design of procedure for information collection
Collection of information
Analysis of information
Generalizations and/or predictions
DATA COLLECTION
Data collection took place with the help of filling of questionnaires. The questionnaire method
has come to the more widely used and economical means of data collection. The common factor
in all varieties of the questionnaire method is this reliance on verbal responses to questions,
written or oral. I found it essential to make sure the questionnaire was easy to read and
understand to all spectrums of people in the sample. It was also important as researcher to
respect the samples time and energy hence the questionnaire was designed in such a way, that its
administration would not exceed 4-5 mins. These questionnaires were personally administered.
The first hand information was collected by making the people fill the questionnaires. The
primary data collected by directly interacting with the people. The respondents were contacted at
shopping malls, markets, places that were near to showrooms of the consumer durable products
etc. The data was collected by interacting with 200 respondents who filled the questionnaires
and gave me the required necessary information. The respondents consisted of housewives,
students, businessmen, professionals etc. the required information was collected by directly
interacting with these respondents.
investigation. The audience defined in age, background, ability, and preferences, among other
things, for which a given course of instruction is intended.
I have selected the sample trough Simple random Sampling
SAMPLE SIZE:
This involves figuring out how many samples one need.
The numbers of samples you need are affected by the following factors:
Project goals
SAMPLE SIZE
I have targeted 150people in the age group above 21 years for the purpose of the research. The
target population influences the sample size. The target population represents the Dehradun
regions. . The people were from different professional backgrounds.
The details of our sample are explained in chapter named primary research where the divisions
are explained in demographics section.
Sampling error
We have taken the sample size of 150, which cannot determine the buying behavior of the total
population. The sample has been drawn from only National Capital Region.
Research Design
Research design is a conceptual structure within which research was conducted. A research
design is the detailed blueprint used to guide a research study towards its objective. It is a series
of advanced decision taken together comprising a master plan or a model for conducting the
research in consonance with the research objectives. Research design is needed because it
facilitates the smooth sailing of the various research operations, thereby making research as
efficient as possible yielding maximum information with the minimum effort, time and money.
However, Mahindra and Mahindra Automobile showrooms are located in other places i.e.
locally and even in the neighboring states. Only opinion of respondents of Dehradun city
was consider for finding out the opinions of respondents.
Dissatisfied
78%
22%
Source: Questionnaire
Figure:1
22
satisfied
dissatisfied
78
Interpretation 1:
The sample drawn on probability basis shows that 78% of the customers were satisfied with
Scorpio variant and only 22% were not satisfied with Scorpio variant.
Observation:
Most of the respondents approached were satisfied with Scorpio
Factor
No. of Respondent
Percentage
Features
18
12%
Low Maintenance
51
34%
Comfort
27
18%
Style
24
16%
30
20%
Source: Questionnaire
Figure:2
12
20
Features
low maintenance
16
comfort
style
18
Interpretation 2: The sample drawn on the probability basis clearly shows that 34%
(51respondents) are the opinion that low maintenance is the satisfaction factor Scorpio and 20 %(
30 respondents) of them who view After Sales Service as a vital factor for customer satisfaction.
Followed by Comfort which corresponds to 18 %( 27 respondents), Style with 16%(respondents)
and only 12%(18 respondents) of them view that feature of Bolero as satisfaction factor.
Observation:
Majority of the respondent are of the idea that low maintenance of the top most feature
contributing to customer satisfaction followed by after sales services comfort style and features
As such, Mahindra should focus on the aspects, which will enhance the customer satisfaction and
thus the market share
Table No: 3 Customer opinions towards fuel consumption.
Factor
Percentage
Extremely Satisfied
27%
Satisfied
49%
Neutral
17%
Dissatisfied
7%
Total
100%
Source: Questionnaire
Figure: 3
7%
27%
17%
More Satisfied
Satisfied
49%
Dissatisfied
Interpretation 3: 100% of the respondents 49% of the respondents approached were satisfied
with the fuel consumption of the Scorpio. Followed by 27% was extremely satisfied, 17% are
neutral and rest of the 7% is more dissatisfied with fuel consumption of Scorpio.
Observation: As majority of the respondents are satisfied with the fuel consumption of
Mahindra Scorpio, the company should maintain the same standard and it is suggested to come
up with suitable measure to reduce the negative opinion among the consumer who are of the
opinion that the fuel consumption is a dissatisfying factor.
Table No: 4 Customer opinions toward Safety and Comfort.
Factor
Percentage
Extremely Satisfied
23%
Satisfied
47%
20%
Dissatisfied
10%
Total
100%
Source: Questionnaire
10%
23%
20%
Extremely Satisfied
Satisfied
Neutral
Dissatisfied
47%
Figure: 4
Interpretation 4: 100% of the respondents 47% of the respondents approached were satisfied
with the safety and comfort feature of the Scorpio. Followed by 27% was extremely satisfied,
17% are neutral and rest of the 7% was dissatisfied with safety and comfort feature of Scorpio.
Observation: As majority of the respondents are satisfied with the safety and comfort feature of
Mahindra Scorpio, the company should maintain the same standard and it is suggested to come
up with suitable measure to reduce the negative opinion among the consumer who are of the
opinion that the fuel consumption is a dissatisfying factor.
Table No: 5 Customer opinions toward Design.
Factor
Percentage
Extremely Satisfied
20%
Satisfied
40%
Neutral
27%
Dissatisfied
13%
Total
100%
Source: Questionnaire
Figure: 5
13%
27%
Extremely Satisfied
Satisfied
20%
Neutral
Dissatisfied
40%
Interpretation 5: 100% of respondents 40% of the respondents approached were satisfied with
the Design of the Scorpio. 20% were more satisfied, 27% of them neutral and 13% are
dissatisfied with the design of the Scorpio.
Observation: As majority of the respondents are satisfied with the design of Mahindra Scorpio,
the company should maintain the same standard and it is suggested to come up with suitable
measure to reduce the negative opinion among the consumer who are of the opinion that the fuel
consumption is a dissatisfying factor.
Table No: 6 Customer opinions toward space availability in Mahindra Bolero.
Factor
Percentage
More Satisfied
27%
Satisfied
53%
17%
Dissatisfied
3%
Total
100%
Source: Questionnaire
Figure: 6
3%
17%
27%
Extremely Satisfied
Satisfied
Neutral
Dissatisfied
53%
Interpretation 6: The sample drawn on the probability basis shows that out of 100% of
respondents 53% of the respondents approached were satisfied with the space availability of the
Scorpio. 27% were more satisfied, 17% of neither satisfied and dissatisfied and 3% are
dissatisfied with the space availability of the Scorpio.
Observation: As 80% of the respondents are happy with the space availability of the Mahindra
Bolero vehicle, it can be conducted that the company has undertaken proper R&D in this aspect.
The 20% of the respondents who have answered negatively may be comparing with the vehicle
in the same category launched very recently.
Table No: 7 Marketing Strategy toward Maintenance of Mahindra Bolero.
Factor
Percentage
Extremely Satisfied
23%
Satisfied
51%
Neutral
21%
Dissatisfied
5%
Total
100%
Source: Questionnaire
Figure:7
5%
23%
21%
Extremely Satisfied
Satisfied
Neutral
Dissatisfied
51%
Interpretation 7: The sample drawn on the probability basis shows that out of 100% of
respondents 51% of the respondents approached were satisfied with the maintenance of the
Scorpio. 23% were extremely satisfied, 21% of neutral and 5% are dissatisfied with the
maintenance.
Observation: Though majority of the customer are satisfied that the maintenance cost of
Mahindra Scorpio is less, around 20% are not satisfied which may be because of comparison of
Scorpio with the newly launched competing brands coming with even lower maintenance cost.
No. Of Respondent
Aware
120
80%
Unaware
30
20%
Total
150
100%
Source: Questionnaire
Figure: 8
20%
Aware
Unaware
80%
Interpretation 8: Out of 100% of respondents, 80% of the respondents approached were aware
of the power steering present in some variant of Scorpio and 20% were not aware of the power
steering present in some variant of Scorpio.
Observation: Most of the respondents approached were aware of power steering system
introduced in some variants of Scorpio.
Table No: 9 Customer perceptions about Scorpio
Very Good
20%
Source: Questionnaire
Figure: 9
Good
47%
Average
21%
Bad
12%
Very Bad
-
12%
20%
21%
Very Good
Good
Average
Bad
47%
Interpretation 9: The sample drawn on the probability basis shows that out of 100% of
respondents 47% of the respondents gave Good response to Scorpio. 20% gave Very Good
response, 21% gave Average response and 12% gave bad response to Scorpio.
Observation: As 67% of the respondents are satisfied that they are happy with Scorpio, it
satisfies that the customer satisfaction levels are very high. If the company were to identify the
pitfalls in their product and undertake remedial measure, thus it will lead to more good word of
mouth publicity.
FINDING
FINDINGS
Based on the data gathered by administrating schedules to customers the following observations
are made.
1.
2.
3.
4.
5.
6.
1.
RECOMMENDATION
Recommendation
CONCLUSION
CONCLUSIONS
Mahindra Scorpio has a very good market share in the state of U.k. for the SUV
segment.
The company is offering good services, which is reflected on the satisfaction of
the customer.
Majority of the customer are satisfied with the design of the vehicle.
BIBLIOGRAPHY
Bibliography
www.mahindrascorpio.co.in
www.automobile.com
ANNEXURES
QUESTIONNAIRE
1) Customer profile
1. Name
2. Occupationc
3. Age
4. Income
5. Address:1) Are you a satisfied with Mahindra Scorpio?
a.
Yes
b.
No
Low Maintenance
c.
Looks
d.
Satisfied
c.
Neutral
d.
Dissatisfied
Extremely Satisfied
b.
Satisfied
c.
Neutral
d.
Dissatisfied
Satisfied
c.
d.
Dissatisfied
Extremely Satisfied
b.
Satisfied
c.
Neutral
d.
Dissatisfied
No