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FUNDAMENTALS OF

MANAGEMENTPROJE
CT

Presented By:
ShiviKundra50158

Shreya Banerjee 50160

SumitPratapSingh 50176

VayamSood50187

BBS 1E
ACKNOWLEDGEMENT

We thank Mrs.PoonamVerma, Principal,


ShaheedSukhdev College of Business Studies, who has
given us an opportunity to undertake this work as a
part of our curriculum.

Our sincere thanks to Mr.Ameet Sao, our subject


teacher, for his valuable guidance and continuous
encouragement throughout this project.

We would also like to thank our Librarian Mrs.Vimlesh


Sharma, for guiding us towards the right sources of
information.

Lastly we would like to thank our parents and friends


for their constant support throughout the project.
AUTOMOTIVE
SECTOR OF
MAHINDRA
AND
MAHINDRA
OBJECTIVE
 To find out the present status of the
automotive sector of Mahindra and
Mahindra.

 To study the Product Line Mix of


Mahindra and Mahindra, focusing
on the Four Wheelers.

 To conduct an Environment
Scanning and Market Research.

 To enhance our analytical skills in


the field of practicalapplication of
Marketing.
CONTENT
1] History
2] Automotive sector
A)Introduction of four wheelers segment
B)Introduction of two wheelers segment
C)Various four & two wheelers models in indian
market
3] Acquisitions , mergers & relation in
with rest of the market.
A)Mahindra& Mahindra and Renault together forming
Mahindra Renault (merger)
B)Mahindra& Mahindra buys into Reva motors
C)MahindraReva
D)Mahindra& Mahindra – Renault relationship]
E)Changes in price of products and policies helps
dominating market
F)Innovative ideas leading in production of betterly
modified and advanced products of already existing
product
4] Organisation structure
5] Organisation
A)Product family
B)list of four and two wheeler models
C)Marketing mix
D)Core business activities of Mahindra & Mahindra
6] Infrastructure
7] Physical Evidence
8] Corporate social responsibility (CSR)
9] Corporate relationship management
(CRM)
10] Competitors in the market
11] Process
A)Distribution channels
12] Evolution , growth and expansion
13] Market research
A)The various environments study and
their importance
14] Marketing mix
15] Financial statement in form of
balance sheet
A)Various strategies essential to adopt to cope up with
“stiff & cut throat competition”
16] Analysis
17] Conclusion
EVOLUTION OF THE MAHINDRA
AND MAHINDRA
Few groups can identify as closely with India's destiny and industrial progress
as the Mahindra Group.

The birth of Mahindra & Mahindra began when K.C. Mahindra visited the
United States of America as Chairman of the India Supply Mission. He met
Barney Roos, inventor of the rugged 'general purpose vehicle' or Jeep and had a
flash of inspiration: wouldn't a vehicle that had proved its invincibility on the
battlefields of World War II be ideal for India's rugged terrain and its kutcha
rural roads? Swift action followed thought. The Mahindra brothers joined hands
with a distinguished gentleman called Ghulam Mohammad. And, on 2nd,
October 1945, Mahindra & Mohammad was set up as a franchise for
assembling jeeps from Willys, USA. Two years later, India became an
independent nation and Mahindra & Mohammad changed its name to
Mahindra & Mahindra.

Since then, Mahindra & Mahindra has grown steadily in size and stature and
evolved into a Group that occupies a premier position in almost all key sectors
of the Indian economy.

The Flagship Sector


Following a structural reorganization of the Mahindra Group, six Strategic
Business Units were created, namely: Automotive, Farm Equipment,
Infrastructure, Trade & Financial Services, Information Technology and
Systech.

The Automotive Sector has emerged as one of the leading arms of the
Mahindra Group. It is in the business of manufacturing and marketing utility
vehicles and light commercial vehicles, including three wheelers.

Being a market leader in utility vehicles in India since inception, Mahindra


currently accounts for about half of India's market for utility vehicles.
Over the years, the Group has developed a large product portfolio catering to a
diverse customer base spanning rural and semi-urban 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 (declared to be the ‘Car of the Year' by CNBC Autocar, BBC Wheels
and Business Standard Motoring) is the Automotive Sector's current
flagshipvehicle. Mahindra has many more products that have made it popular
with individuals and institutions in India and the world.

AUTOMOTIVE SECTOR
The Mahindra Group’s Automotive Sector is in  
the business of manufacturing and marketing
utility vehicles and light commercial vehicles,
including three-wheelers.The Automotive
Sector has emerged as one of the leading arms
of the Mahindra Group. It is in the business of
manufacturing and marketing utility vehicles
and light commercial vehicles, including three
wheelers
 
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 SectorThe Automotive Sector has emerged as one of the
leading arms of the Mahindra Group. It is in the business of manufacturing
and marketing utility vehicles and light commercial vehicles, including
three wheelers.
 
Over the years, the Group has developed a large
product portfolio catering to a diverse customer
base spanning rural and semi-urban customers,
defence requirements and luxurious urban utility
vehicles. In 2002, it launched the indigenously
engineered world-class sports utility vehicle-
Scorpio.
 
The Group exports its products to several countries in Europe, Africa,
South America, South Asia and the Middle East.
 
The Automotive Sector continues to be a leader in the utility vehicle
segment with a diverse portfolio that includes mass transport as well as new
generation vehicles like Scorpio, Bolero and the recently launched Xylo.
 
Mahindra & Mahindra’s foray into the three wheeler segment with Alpha
and Champion has also made it a leader in its category.
 
 
Mahindra Renault (MRPL) announced the launch of Logan, India’s first
wide body car, sporting a host of class-defying features at an aggressive
price. The Logan redefines its segment in terms of spaciousness as well as
performance, technology with the latest generation dci common rail engine.
It has been designed for the Indian market incorporating a contemporary
styling and design.
 
Mahindra Navistar Automotives Ltd. (MNAL), a joint venture between
Mahindra & Mahindra Limited and International Truck and Engine
Corporation, will manufacture trucks and buses for India and export
markets. It will also provide component to International Truck and Engine
Corporation sourcing and engineering services.
 
Mahindra Navistar (MNEPL) a second joint venture agreement with
Mahindra & Mahindra, Ltd. focuses on producing diesel engines for
Medium and heavy Commercial vehicles in India.MNEPL’s advanced
diesel engines will power the full line of trucks and buses produced by
MNAL.
PRODUCT LINE MIX

Two wheelersFour wheelers


-Flyte -Xylo

-Rodeo -Scorpio

-Duro -Logan
-Bolero

-Gio
PRODUCT LINE MIX

FOUR WHEELERS
(info)

 SCORPIO

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

Rational benefits: World class vehicle, good looks, car like comfort, great value
Emotional benefits: Ownership experience of thrill, excitement and power Relational
benefits: Young modern, premium, city companion / extension of lifestyle.

 Xylo
The Mahindra XYLO is perhaps the most complete car  
with luxury comforts to enter the Indian market with
everything that today’s sedans offer and much more.

It is the first vehicle in the country which has been completely engineered around the
customer. The XYLO offers an extraordinary level of luxurious comfort at a very cost-
effective price for prospective sedan buyers. The famed Mahindra DNA of 'tough & rugged'
meets an unprecedented level of sophistication and luxurious comfort in the XYLO. The
XYLO is the ‘Great Indian Traveling Machine’ and will redefine the future of road travel in
India.
 
Technology, style, space, luxury & comfort make the XYLO an apt choice for sedan buyers.
 
The XYLO boasts a wide array of unique features:
• Flat Bed front seats
• Digital Drive Assist System (DDAS)
• Foldable flight trays
• Surround cool dual ACs
• Captain Seats

 Logan
Logan was launched in India in 2007 with the concept to challenge the “priceValue”
equation existing in the midsize car category. Soon it became one of the most
successful car in the midsize category and now is synonymous to comfort and
performance. The Logan drives in loads of refinement in comfort, style and
technology. Built around the Renault’s famous Space Optimization Design, it
redefines space and luxury. With the widest backseat, maximum legroom and 3
separate headrests, it makes sure even the third passenger enjoys the drive as much.
Logan is one of the safest drives on the road. It’s geared to protect you with a
honeycomb dashboard and the front unit that’s designed to resist even a head-on
impact.

Key Milestone:
Launched the limited edition “Logan Edge” in Aug’08 to offer exclusivity and

refinement to its customers.
Launched the “New Collection Logan” in Oct’08 to enhance the image and appeal of

the car.
• Launched the “Logan Edge Connect”, an extension of the Logan Edge in Mar’09.
• Introduced Logan CNG in Delhi.
The new “But Why” campaign launched in 2008 won the NDTV Car and Bike Best

Integrated Campaign of the Year 2008.
• The first export order was shipped to South Africa and Mauritius in 2008.
• Inaugurated the first dealership in Nepal in Aug’08.

 BOLERO
gio

TWO WHEELERS
The Mahindra Group's foray into the two-wheeler
segment began with the acquisition of the business assets
of Kinetic Motor Company Ltd. (KMCL) extending
Mahindra's heritage and pedigree into the two wheeler
space. The Two Wheeler Sector of Mahindra designs and
markets a full range of scooters and motorcycles for the
Indian
and global markets. Thus, establishing a robust and end-to-end two-wheeler business in
every segment of the industry. The company has a state-of-the-art manufacturing
facility at Pithampur, near Indore in Madhya Pradesh. The plant, products and processes
are ISO 9001 certified from DNV.
 
Mahindra & Mahindra's stringent quality standards, which are a part of its consumer
centric approach, will be reflected in all its products. The company uses the design and
engineering services of its affiliates including the Italy based Engines Engineering. This
ensures product development work that delivers technologically superior products with
latest styling to its valued costumers. Engines Engineering offers specialized services in
the area of motorcycle & scooter design and development. Some of the names
associated with Engines Engineering include Ferrari, Ducati, Honda, and Yahama. The
motorcycles developed by Engines Engineering have indeed made a mark in the Moto
GP Circles.
 
Mahindra also has a partnership with Taiwan'sSanyangIndustry Company Limited
(SYM). A US $ 1 billion automobile giant, SYM is a leading manufacturer of two-
wheelers, including scooters, motorcycles and ATVs. SYM has a complete, advanced
research and design facility that develops products from concept upto production. The
association with SYM translates into cutting edge technology and best products from
Mahindra.
 
Backed by the Mahindra Group’s strong R&Dsupport,
Mahindra Two Wheelers plans to market a range of
scooters, value engineered motorcycles and high-end
motorcycles for the Indian and global markets. Within
the overall two-wheeler strategy for Mahindra Two
Wheelers the product profile will range from top end  
motorcycles to entry level bikes. The range will also
have a variety of scooters fulfilling different needs. In
keeping with this strategy, Mahindra introduced the
Flyte as its first two-wheeler offering across all markets
in India in April 2009.
 
 
 

 Mahindra Rodeo
The perfect choice for the young urban male, the Mahindra Rodeo is a high
performance, feature-packed scooter with a distinctly macho demeanour.

A robust 125 cc engine offers 8.0 bhp of power, making it one of the most powerful
vehicles in its class. Excellent pick up and smooth acceleration ensures agility even in
 
dense traffic and low maintenance costs.

 MAHINDRA DURO
With its stylish good looks and powerful 125 cc engine, the Mahindra Duro not only
caters to the transportation needs of the entire family but is also the best value for
money product in its category as it provides the customer with the highest value per unit
of engine cc.

 Mahindra Flyte
In 2009, Mahindra kick-started its two-wheeler foray with the introduction
of the Flyte as its first product offering across India. With its innovative
features backed with power-packed performance and contemporary styling,
Flyte is an ideal product offering for its target audience - the Youth.

DOMESTIC OPERATIONS
The Automotive Sector is the market leader in utility vehicles in India since
inception and currently accounts for about half of India’s market for utility
vehicles with a product portfolio that ranges from rugged, mass-transport utility
vehicles to personal segment sports utility vehicles like the Scorpio.

Mahindra has recently launched the Xylo, perhaps the most complete car with
luxury comforts to enter the Indian market with everything that today’s sedans
offer and much more.
While the world-class Scorpio (declared to be the ‘Car of the Year’ by CNBC
Autocar, BBC Wheels and Business Standard Motoring) is the Automotive
Sector’s current flagship, it has many more products that have made it popular
with individuals and institutions in India and the world.  The Automotive Sector
of the Mahindra Group is currently present in the multi-utility vehicle, light
commercial vehicle and three-wheeler segments. Now, with its joint ventures, it
will have a presence in the passenger car and the medium and heavy
commercial vehicle segments too.

MERGERS AND AQUISATIONS

Mahindra Acquires Majority Stake InReva –


Renames It As Mahindra REVA Electric Vehicle
Company

There has been talks of Mahindra And Mahindraplanning to to acquire the RevaElectric Car
Company of India. The planning has been executed and Mahindra has released an official
press release about the acquisition of a majority stake in Reva Electric Car Company India.
The new company will now be renamed as Mahindra RevaElectric Vehicle Company.
The highlights of this deal are :

 Mahindra to have 55.2% equity in REVA Electric Car Company (REVA).


 Company to be renamed Mahindra REVA Electric Vehicle Company (Mahindra
REVA)
 Mahindra REVA to leverage Mahindra’s vehicle development expertise
 Mahindra REVA electric technology to be deployed in Mahindra vehicles
 Dr PawanGoenka elected Chairman of the newly constituted board

MAHINDRA AND MAHINDRA


ACQUISITION OVER SSYANGYONG [a
south korean motor company]
(M&M) is in the last leg to complete its acquisition of South Korean sports utility vehicle (SUV)
maker, Ssangyong Motors . It has roped in South Korea’s largest legal firm Bae Kim & Lee to draft the
final share purchase agreement to firm up the deal. The company plans to sign the final agreement
by the second week of November.

The acquisition would help M&M launch South Korean company’s flagship SUV models —
Rexton II and Korando C — into the Indian market. M&M spokesperson said: “We have a
confidentiality clause and cannot comment on these issues.”

M&M and Ssangyong officials are meeting in Seoul next week to discuss the “bid adjustment price”
based on details emerging from due-diligence. “The final price can vary a bit,” said an investment
banker close to the negotiation. Analyst tracking the industry said it is expected to be in the price
band of $500-550 million. Top executives from M&M, including its automotive division head Pawan
Goenka, are expected to be present when the final agreement is signed in Seoul next month.

“The faster culmination of the process would give M&M an edge in launching new products in India,
currently world’s second-fastest growing automotive market,” Deepesh Rathore, MD at market
research firm IHS Automotive said. The company has developed an all new platform the C200 SUV,
which will be the first monocoque chassis produced by the company. M&M is also in the process of
picking internal candidates who will work with the Korean management.

Mahindra and Renault- Joint Venture


The automobile groups Mahindra & Mahindra and Renault have decided to join forces to produce
and commercialise Logan, developed by Renault, in the Indian market in 2007. The two groups
concluded a framework agreement for setting up a joint venture in India with Mahindra retaining a
51 per cent share and Renault 49 per cent. The JV will be called Mahindra Renault Ltd. The estimated
project amount will be 125 million euros.
The project provides for the production of Logan from the first half of 2007 in a world-class
Mahindra & Mahindra facility. The capacity of the factory for Logan will be 50,000 cars per year. The
state-of-the-art factory will offer a stamping shop, a paint shop with a top quality pretreatment and
an assembly line specific for Logan. The quality of Indian parts manufacturers and the presence of a
number of international suppliers in India will allow a rate of localisation of 50 per cent from the
beginning of the project.
A right hand drive version of Logan will be developed by Renault in partnership with Mahindra to
meet the needs of Indian and other right-hand drive markets. Logan will be marketed under
the brand of Mahindra Renault. Mahindra & Mahindra will use its extensive dealer network to
distribute the Logan in India. With a population of more than 1 billion inhabitants, India has
experienced strong economic growth, passing 8% in 2004. The automobile market progressed by
68% between 1998 and 2003, reaching 1,040,000 vehicles in 2004 with a marked preference for
small and medium segment cars (A,B & C).
With this agreement, Mahindra & Mahindra, the fourth largest Indian vehicle maker and a specialist
in utility vehicles (SUV, Pick-up…) will extend its range to passenger cars, a particularly lively market
segment in India. Market leader in India for SUVs, with market share of 49% in 2004 in UV segment,
it hopes to establish its presence in the car market. Present in diverse sectors of the Indian economy,
(telecommunications, information technology, agricultural material, financial services), the
Mahindra & Mahindra group is strengthening its automobile arm.Announcing the new venture, Mr.
Anand Mahindra, Vice Chairman and Managing Director, Mahindra & Mahindra Ltd, said: "The
objective of setting up the joint venture company is to bring Logan, the popular global car, into India.

For Renault, entering the Indian market, where European manufacturers, except for Fiat and Skoda,
have little presence, constitutes a major step in its international development. Including India, Logan
will be produced in six countries along with the projects already launched or decided: Romania,
Russia, Morocco, Colombia and Iran. "I am happy with this agreement which allows Renault to
establish a long-term partnership with Mahindra & Mahindra. This project registers with our
strategy of international development in new car markets", said Louis Schweitzer, Chairman and CEO
of Renault. The US $ 2.5 billion Mahindra Group is the market leader in multi-utility vehicles and
tractors in India. With over 55 years of manufacturing experience, the Mahindra group has built a
strong base in technology, engineering, marketing and distribution. It also has a significant presence
in key sectors of the Indian economy. These include trade and financial services (Mahindra
Intertrade, Mahindra & Mahindra Financial Services Ltd.), automotive components, information
technology & telecom (Mahindra British Telecom), and infrastructure development (Mahindra
GESCO, Mahindra Holidays & Resorts India Ltd.).
Renault is an international automobile group acquiring a global dimension from its alliance with
Nissan, the acquisition of the Romanian carmaker Dacia and the South Korean Samsung Motors.
Renault pursues a strategy of profitable growth thanks to a high quality, innovative range of vehicles
and services. For almost 50 years, Renault has made safety a company value, and today offers the
safest range of cars with seven "5 star" cars tested by Euro-NCAP. Employing 131,000 people around
the world, Renault sold 2,490,000 vehicles in 2004 and realized a turnover of 40.7 billion euros for a
net profit of 3.5 billion euros

Mahindra Renault Joint Venture Ends!


Mahindra & Mahindra and Renault on Friday said they have restructured their
joint venture for making the sedan Logan in India, following which the Indian
firm will buy out its French partner for an undisclosed sum.

M&M will buy out Renault’s 49 per cent stake in Mahindra Renault Pvt Ltd,
thus becoming a 100 per cent subsidiary, the two companies said in a joint
statement.

Renault will continue to support M&M and Logan through a licence agreement
and supply key components, including engine and transmission, the statement
said.

Renault in India, Solo

Renault, keeping to its words has splashed adverts in Major Newspapers today asking for
Dealers for its New Innings in India as an Individual Car maker. Renault and Mahindra had
decided to end their 3 year old partnership and amicably decided to go separate ways.
Mahindra, surprisingly got to keep the Logan.

With the Logan’s ‘So-called’ failure will, may be, be behind Renault when they set foot with
atleast 5 new launches in the next 2 years to come by. It sure wont be any short of exciting
for any automobile lover looking at the lineup Renault has worldwide.

The Models we are sure to see before others would be Renault-Samsung’s Fluence and The
RenaultKoleos.

M&M, Renault Back Together! Logan to be a Small


car!
After months of trouble, French carmaker Renault and homegrown Mahindra & Mahindra
(M&M ) are all set to resolve their differences and announce a new restructured plan for their
joint venture.The revamp will see the Logan sedan being repositioned as a small car shorter
in length,with a compact petrol engine.

The two companies,which had joined hands to sell the no-frills Logan, had been at
loggerheads after the model failed to take off and became a lossmaking venture for
both.Renault and Mahindra were not impressed by the poor show of the model Renaults first
in India and M&Ms solo in the passenger car segment and appeared to have engaged in a
blame-game for the failure.  Against the original projection of selling 50,000 units
annually,the model is selling only 5,000 units per annum.

Now,Logan will continue to be manufactured at M&Ms plant at Nasik and the Indian utility
vehicle major will be retained for selling the car through select outlets of its dealer network.
The Logan will now be positioned in line with the small car definition of the Indian
government,attracting a lower excise duty of 10%,against 22% at present,which in turn will
lead to lower price.Forthis,the companies will reduce its overall length below 4 metres and
bring down the petrol engine capacity to under 1200cc,against the current sizes of 1400cc and
1600cc.The diesel engine car,that is strapped with a 1500cc engine,will continue.

This was M&Ms long-pending demand as it felt that the car can do much better in India if it
is repositioned as a small car.Renault,on the other hand,had been reluctant to tweak the
Logans specifications in only one market.

Shortened Dacia Logan in Pictures -

(PRODUCT LINE MIX FINISH)


Alliances
Now, with its joint ventures, the Automotive Sector
will have a presence in the passenger car and the
medium and heavy commercial vehicle segments too.
Mahindra's a JV with French automakers Renault, has seen them launch the spacious sedan,
Logan. With its class-defying features at an aggressive price, it has already managed to make
its mark in the Indian passenger carmarket.

A partnership with International Trucks, will now see Mahindra manufacturing trucks and
buses for sale in IndiaandExportmarkets.

TheWayAhead
With continual upgrades, product innovations and fruitful alliances, Mahindra has ensured a
regular churn-out of good quality, reliable and value for money products to establish an
impressive stable of vehicles.

Having aggressively established itself in the domestic utility vehicle market, Mahindra
Automotive is all set on a global roadmap to conquer the international arena.

ORGANISATION STRUCTURE
Mahindra & Mahindra Limited (M&M) is the flagship company of US $ 2.59
billion Mahindra Group (F04 - US$ 1.96 billion, which has a significant
presence in key sectors of the Indian economy. A consistently high performer,
M&M is one of the most respected companies in the country.

Set up in 1945 to make general-purpose utility vehicles for the Indian market,
M&M soon branched out into manufacturing agricultural tractors and light
commercial vehicles (LCVs). The company later expanded its operations from
automobiles and tractors to secure a significant presence in many more
important sectors.

M&M has two main operating divisions - Automotive Division manufactures


utility vehicles, light commercial vehicles and three wheelers. Tractor (Farm
Equipment) Division makes agricultural tractors and implements that are used
in conjunction with tractors, and has also ventured into manufacturing of
industrial engines. Tractor Division has won the coveted Deming Application
Prize 2003, making it the only tractor manufacturing company in the world to
secure this prize. The Company has recently entered into a JV with Renault of
France for the manufacture of a mid-sized sedan, the Logan, and with
International Truck & Engine Corporation, USA, for manufacture of trucks and
buses in India.

Implementation of SAP APO (Advance Planner and


Optimizer) for Automotive Sector
Implemented SAP APO at Farm Equipment Sector in F04, and rolled-out at
Automotive Sector in F06. SCM processes are streamlined using SAP APO.
Forecasting, planning, and decision support has been facilitated through on
PPDS (Production Planning Demand Scheduling) & SNP (Supply Network
Planning) modules. APO-DP (Demand Planning) facilitated collaborative
planning between dealers and sales offices.

Infrastructure
Thirty-five showrooms across the country were redone entirely with the same
look and identity and a décor built around movement, technology and
sportiness. The theme focused on giving the customer a memorable experience.
The showroom revamp was centered on the intention to provide a uniform
customer experience at all the touch points and to provide the customer with a
unique “experience” and not just a “product”. Therefore the back office would
remain outside the customer’s line of vision because the customer would be
concerned with the product and not with the paperwork.

PHYSICAL EVIDENCE

The Physical Evidence is created by displaying physically the product. Along


with that creating an atmosphere for the customers where in they feel the
presence of product. Toyota creates a powerful physical evidence for its
customers through its Showrooms, Hoardings, Logo etc. All the showrooms are
designed on a common platform. The interiors of all the showrooms across
India are the same. The designs for the same are created by a team of
Professionals in this field. The designs are prepared very carefully keeping into
consideration various factors such as customers’ tastes and preferences, likes
and dislikes etc. You will always find a Toyota showroom having the Toyota
Bill Board outside with white base and red foreground. This creates a physical
presence and people can feel the product.

CORPORATE SOCIAL RESPONSIBILTY [CSR]


Corporate Social Responsibility has always been an integral part of the
Mahindra Group's vision and the cornerstone of our Core Value of Good
Corporate Citizenship.
- Keshub Mahindra, Chairman
 

The Mahindra Group defines Corporate Social Responsibility as making


socially responsible products, engaging in socially responsible employee
relations and making a commitment to the community around it. At the
Mahindra Group, Corporate Social Responsibility is not just a duty; it's a way of
life.

In 2005, the Group celebrated its 60th anniversary by renewing its commitment
to Corporate Social Responsibility. It pledged to dedicate 1% of its profit (after
tax), on a continuous basis towards Corporate Social Responsibility. A unique
kind of ESOPs - Employee Social Options was launched to enable Mahindra
employees to involve themselves in socially responsible activities of their
choice. The Group also announced a special gift: to provide free cochlear
implants to 60 profoundly hearing-impaired, under-privileged children.

In addition to giving impetus to the Nanhi Kali project for the girl child and the
Mahindra All India Talent Scholarship for the economically disadvantaged, the
Mahindra Group is planning to set up two Mahindra Pride Schools. These
schools will offer a variety of courses, with an emphasis on employability,
including training for Information Technology, Retail, Automotive Engineering
etc. They will provide new skills and capabilities to the weaker sections of
society, particularly the scheduled castes and scheduled tribe youth. While these
projects are already underway, plans for more social initiatives are on the anvil.
CUSTOMERRELATIONSHIPMANAGEMENT [CRM]
It is essential for Auto OEMs to keep in close contact with the end consumers,
build brand loyalty and provide total customer experience. Implementation of
centrally hosted Mahindra Dealer Management System (DMS) covers -
Marketing, Pre-sales, Sales, Services, Spares, Warranty, Dealer Financials,
Analytics, CRM and Business Intelligence. The pilot involving 50+ dealer
locations initiated last year is in the final phase of implementation, to be
followed by roll-out across Mahindra Dealer Community. Appropriate
infrastructure including dealer connectivity is being established.

Implementation of SAP DMS-CRM has provided an additional opportunity to


ensure process standardization and compliance across all dealers of M&M.
Enhanced the ability to integrate a change more easily across the entire dealer
chain. Facilitated better customer information management, end-customer
database, along with seamless integration with back-end SAP systems.

DEALING WITH THE COMPETITION

PROCESS
The various processes involved in getting available the product from the manufacturer to the
end consumer are to be efficiently performed by the company. The processes start when the
customer is contacted by the Sales Personnel of the Dealership or the customer contacts the
Dealership if he is interested to buy a Corolla. The data regarding the various customers can
be had from various sources of data available through different agencies which specialize in
providing data. After the call is made, an appointment is fixed. The Sales Executive prepares
for the meet. He collects all the possible information which would be needed for the meeting
i.e. data about thecustomer, details about the car, maximum permissible discount structure,
finance

options, delivery terms, free accessories which will be provided to the customer.

The sales personnel will find out that what is the present vehicle used by the customer, his
present buying power, satisfaction level, seriousness in buying etc. Along with that he will
also find out his exact needs, desired level of satisfaction, lifestyle patterns etc. Sales
personnel also ask certain questions through which he comes to know about the various
factors he wants to know. He asks both open as well as closed ended questions. With the help
of these questions, he can come to know the various reasons due to which he is buying that
car. These can be Performance, Safety, Comfort, Driving Pleasure, Appearance etc.

These processes either lead to completion of sales call or sometimes unfortunately


leads to unsuccessful sales call which could not be competed.

MARKET RESEARCH
Market research often refers to either primary or secondary research. Secondary research
involves a company using information compiled from various sources, which is about a new
or existing product.. Primary market research involves qualitative research (such as focus
groups or one-on-one interviews) and quantitative research (such as surveys) as well as field
tests or observations conducted for or tailored specifically to that product. Primary research,
which is also called field research or original research, is useful for finding new information
and getting customers' views on products.

Having defined the competitive framework, the next task undertaken was that of
analyzing the consumer. Consumer segments of B and C category car buyers were
analyzed in terms of their expectations from a car, their perceptions about cars and
their relationship. Proprietary techniques of research, of the advertising agency
Interface Communications, like Mind & Mood, ICON and VIP were used to
understand this consumer. The findings were:
* Size matters- big size stands for status
* Consumers seek latest technology
* Imagery but at affordable prices
* The sheer thrill and passion of driving an SUV
* Power of the vehicle makes a statement
* But along with the others, luxury was a very important parameter
* International vehicles define imagery
SUVs like Pajero, Land Cruiser and Prado are seen as urban vehicles for the rich and
famous consumers aspire to own these vehicles as the imagery of these vehicles has
become very desirable.
“Consumers want to consume premium imagery at prices affordable to them”

The Marketing Environment


Marketing environment consists of the actors and forces outside marketing that affect
marketing management’s ability to build and maintain successful relationships with target
customers. The marketing environment offers both opportunities and threats. The
environment continues to change rapidly. The marketing environment is made up of Micro-
environment and Macro-environment.
The Micro environment consists of the actors close to the company that affect its ability to
serve its customers. These actors are: the company, suppliers, marketing intermediaries,
customer markets, competitors and publics.

The Macro environment consists of the larger societal forces that affect the
microenvironment. These forces are: demographic, economic, natural, technological, political
and cultural forces.
GM STUXX

THE DEMOGRAPHIC ENVIRONMENT


The demographic position will be on the United States. Since, the target market is for the
middle class; it will provide a boost for the 32% of the total population. This product will
produce a superior value to customers who always value the brand. Also, it will keep the
popularity of the product at their trend. In this case, more and more customers will be able to
keep this product if it satisfies their condition. Additionally, the middle class group will be
loyal to this product brand and as generation goes by; this product will be there forever. On
the other hand, this product is also designed for students, and working class people. This is
due to the fancy and environmental design

Students will be so grateful to have fancy car while the working class group will tend
to afford such an affordable environmental car design.

ENVIRONMENT SCANNING
THE NATURAL ENVIRONMENT
This product is basically designed to reduce the carbon emission from fuels and help to
preserve our environment. It is very important to design such car to help decrease the rate of
carbon dioxide from the air and provide a better condition to tackle global warming. This car
will provide a boost to the natural environment because it is safer and has an image to be
friendlier to the environment itself. In this case, more and more people will tend to buy such
car to protect the environment by reducing the carbon emission to the air.
THE ECONOMICAL ENVIRONMENT
The world is facing a shortage of fuel and it has become an economical crisis to
everycountry. This is evidence as the price of fuel is increasing and the probability of the
price of a barrel to increase at any day is very high. Therefore, this product will help
customers to save money because it consumes less fuel. The fuel consumption is one of the
best criteria based on this product. On the other hand, customers will be able to satisfy with
this kind of product because it is not too expensive and everybody has the privilege to afford
one. This product will satisfy the superior value of all different customers since it has a very
good design to solve to fuel shortage, less expensive, and can be affordable to anyone.

THE TECHNOLOGICAL ENVIRONMENT


The fastest growing of information technology helps this product to be at its best. Its design is
basically provided with the help of information technology. Looking at its design, this
product benefits a lot from the technological sectors. This proves that thisproduct is
favourable to the environment. Also, this product can be modified or even upgraded to the
standard where it will be suitable at any environmental condition. The Information
technology is very effective in letting this product to be very efficient. In this case, it helps
customers to satisfy this kind of product in this technological environment.

THE SOCIAL AND CULTURAL ENVIRONMENT


It is believed that protecting the environment is a great concern. Therefore, this product is
purposely designed to be environmentally friendly. As a result, most people in the United
States and elsewhere are willing to offer such kind of product to save the environment. If
more and more people are keen to buy such kind of product then the environment would be
safe at any cost. Consequently, people will be more supportive to save what is best for the
communities and the environment.

AUTOMOTIVE

MARKETING MIX
A Marketing mix is the division of groups to make a particular product by pricing,
product,branding, place, and quality. Although some Day1 marketers have added other P's,
such as personnel, packaging and physical evidence, the fundamentals of marketing typically
identifies the four P's of the marketing mix as referring to:

"Marketing Mix" is set of correlated tools that work together to achieve company's
objectives, they are: product, price, promotion, place.
The set of controllable tactical marketing tools, product, price,place and promotion -
that the firm blends to produce the response it wants in the target market:

Product- A tangible object or an intangible service that is mass produced


ormanufactured on a large scale with a specific volume of units. Intangible products are often
service based like the tourism industry & the hotel industry. Typical examples of a mass
produced tangible object are the motor car and the disposable razor. A less obvious but
ubiquitous mass produced service is a computer operating system.

Price– The price is the amount a customer pays for the product. It is
determined by a number of factors including market share, competition, material costs,
product identity and the customer's perceived value of the product. The business may
increase or decrease the price of product if other stores have the same product.

Place– Place represents the location where a product can be purchased. It is often referred
to as the distribution channel. It can include any physical store as well as virtual stores on the
Internet.

Promotion– Promotion represents all of the communications that a marketermay use


in the marketplace. Promotion has four distinct elements - advertising, public relations, word
of mouth and point of sale. A certain amount of crossover occurs when promotion uses the
four principal elements together, which is common in film promotion. Advertising covers any
communication that is paid for, from television and cinema commercials, radio and Internet
adverts through print media and billboards. One of the most notable means of promotion
today is the Promotional Product, as in useful items distributed to targeted audiences with no
obligation attached. This category has grown each year for the past decade while most other
forms have suffered. It is the only form of advertising that targets all five senses and has the
recipient thanking the giver. Public relations are where the communication is not directly paid
for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade
fairs and events. Word of mouth is any apparently informal communication about the product
by ordinary individuals, satisfied customers or people specifically engaged to create word of
mouth momentum.
(Make growth chart out of this)
BALANCE SHEET
(Rscrore)

Balance sheet
  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds
Owner's fund

Equity share capital 282.95 272.62 239.07 238.03 233.40

Share application money 8.01 - - - -

Preference share capital - - - - -

Reserves & surplus 7,527.60 4,959.26 4,098.53 3,302.01 2,662.14

Loan funds
Secured loans 602.45 981.00 617.26 106.65 216.68
  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Unsecured loans 2,277.70 3,071.76 1,969.80 1,529.35 666.71

Total 10,698.71 9,284.64 6,924.66 5,176.05 3,778.92

Uses of funds
Fixed assets

Gross block 4,866.18 4,653.66 3,552.64 3,180.57 2,859.25

Less : revaluation reserve 11.67 12.09 12.47 12.86 13.33

Less : accumulated depreciation 2,537.77 2,326.29 1,841.68 1,639.12 1,510.27

Net block 2,316.74 2,315.28 1,698.49 1,528.59 1,335.65

Capital work-in-progress 1,374.31 886.96 649.94 329.72 205.46

Investments 6,398.02 5,786.41 4,215.06 2,237.46 1,669.09

Net current assets


Current assets, loans & advances 6,224.56 5,081.20 3,816.41 3,916.94 2,805.04

Less : current liabilities & provisions 5,619.04 4,797.76 3,468.77 2,854.20 2,254.37

Total net current assets 605.52 283.44 347.64 1,062.74 550.66

Miscellaneous expenses not written 4.12 12.55 13.53 17.55 18.05

Total 10,698.71 9,284.64 6,924.66 5,176.05 3,778.92

Notes:
Book value of unquoted investments 4,806.15 4,305.50 1,429.16 1,515.23 1,419.01

Market value of quoted investments 12,216.75 3,218.81 7,669.90 10,285.25 2,030.85

Contingent liabilities 2,020.79 1,220.39 985.35 1,008.27 946.36

Number of equity sharesoutstanding (Lacs) 5659.08 2726.16 2390.73 2380.33 2334.00

GRAPH INDICATING GROWTH


STRATEGIES
GENERAL ATTACK STRATEGY
FRONTAL ATTACK: the attacker matches its opponent’s product,
advertising, price and
Distribution

Pricing Strategy: to be a premium brand yet having universal


appeal.Scorpio was to compete with the midsize cars like Hyundai Accent, Ford
Ikon, Opel Corsa, Maruti Suzuki Esteem on the one side and UVs like Toyota
Quails, Tata Safari and the Tata Sumo on the other. Scorpio adopted the
penetrative pricing strategy positioned in the psychological price barrier of Rs. 5
-7 Lakhs.

Media Strategy
*Dramatic and high impact launch

* High visibility

* Push brand image even by the media vehicle


Building impact through multiple-media

* PR, Mass Media, Direct Marketing, Events


Suggestions
1] They need to expand their bussiness activities and globalize themselves , preferably in
in joint venture.

2] In india change their image of making rugged vehicles to more sophesticated and be
in direct competition with the likes of suzuki, honda , toyota.

3] Open more showrooms espacially in city and expand customer database.

4] Bringout new models and in accordance to the new technologyand be competitive


with bringing.

5] Doing well with its expansion process , need to continue and open more showrooms .
6] Get back into a venture with renault as it is a global brand and can provide the
gateway mahindra needs.

7] Get modely in all price ranges .

8] Basic profitability of the work is good – expansion is the word of the hour.

TWO WHEELERS
1] Promote , advertise their models very strongly to give them a jump start in an
already very competitive market.

2] Provide more equipment at lower price in order to compete with the likes of hero
honda and bajaj.

3] The flagship model rodeo should be made as a global product as it has the ingredients
to take on the best of the street bikes in the world.

4] Open new two wheelers showrooms having more customer involvements .

5] This should be done thinking of it as along time investment as the benefits will be
drawn after few years which will be taken for the brand to get established.

FOUR WHEELERS
1] The models need to be updated and the latest state of the art technology should be
brought in.

2] The rugged MUV’s should be seperated from the main line of new sophesticated
machines.

3] Pricing models in hotchbach and expensivesector category.

4]Get technological advantage by setting into a deal with renault as engine supplier.

LOGAN
1] Cut costs to be the best value for money caste.

2] The car lacks finesse and looks which needs to be taken care of.

3] Give it a new start with proper advertising and compaigning of the product.

4] Provide attractive offers to customers like free services and insurance.

SCORPIO
1] The flagship model needs a devloped more upgaded look.

2] The tagline suits the overall image of the car.

3] This model has been handled well and needs to continuously be done so.

BOLERO
1] Change the image of it being a rugged , village and town people’s carrier.

2] The car as a whole needs a facelift.

3] More new advanced featursare required.

4] The price can be raised by providers all the above mentioned features as it will be
better value for money than Tavera and Sumo.

XYLO
1] Cannot compete with Innova due to lack of refinement and technology.

2] Needs a more macho look.

3] USP – space comfort which should be maintained.

4] The chart can be raised to get into direct competition with innova but better drive.

CONCLUSIO
N
1] The Automotive Sector has emerged as one of the leading arms of the
Mahindra Group as the flagship sector .

2] Over the years, the Group has developed a large product portfolio catering to
a diverse customer base spanning rural and semi-urban customers, defence
requirements and luxurious urban utility vehicles .

3] Foray into the three wheeler segment with Alpha and Champion has

also made it a leader in its category.

4] Exporting products to several countries in Europe, Africa, South America,


South Asia and the Middle East leading globally powerful bonds.

5] Generation of for wheelers vehicles like Scorpio, Bolero and the recently launched Xylo
are main models of the company while the world-class Scorpio (declared to be the ‘Car of
the Year’ by CNBC Autocar, BBC Wheels and Business Standard Motoring) is the
Automotive Sector’s current flagship.

6] Mahindra's heritage and pedigree extended with the acquisition of the business assets of
Kinetic Motor Company Ltd. (KMCL) into the two wheeler space.

7] Product development work is ensured with latest styling to its valued costumers as
names associated with Engines Engineering include Ferrari, Ducati, Honda, and Yahama and
engines engineering offers specialized services in the area of motorcycle & scooter design
and development.

8] Mahindra Rodeo is the flagship model in two wheeler sector giving stiff competition to
its competitors’s models in the market while other models Duro and Flyte also there
satisfying customers completely.

9] Mahindra and Mahindra performing well in automotive sector also shown keen interest
while overtaking some major companies over the world , thus also helping in expansion of
business and increase in varied

number of assets.

10] Aquisitions over Reva motors and Ssyangyong motor company resulted in making more
powerful company globally. The acquisition would help M&M launch South Korean company’s
flagship SUV models — Rexton II and Korando C — into the Indian market.

11] Mahindra – Renault joint venture made Mahindra & Mahindra, the fourth largest Indian vehicle
maker and a specialist in utility vehicles (SUV, Pick-up…).

12] The customer research conducted in India on Logan has indicated an excellent response. The
market is excited about the world’s best value C-segment car being launched in India".

13] Internationally Mahindra and Mahindra is trying to enter in various productions


maximising customer satisfaction needs proved by a partnership formed with International
Trucks.This will now manufacture trucks and buses for sale in India and Expor tmarkets.
Mahindra Navistar (MNEPL) another joint venture agreement with Mahindra & Mahindra,
Ltd. focuses on producing diesel engines for Medium and heavy Commercial vehicles in
India.

14] With continual upgrades, product innovations and fruitful alliances, Mahindra has
ensured a regular churn-out of good quality, reliable and value for money products to
establish an impressive stable of vehicles.
Having aggressively established itself in the domestic utility vehicle market, Mahindra
Automotive is all set on a global roadmap to conquer the international arena.

15] 1% of its profit (after tax) dedicated, on a continuous basis towards Corporate Social
Responsibility , ESOPs - Employee Social Options was launched to enable Mahindra
employees to involve themselves in socially responsible activities of their choice , to provide
free cochlear implants to 60 profoundly hearing-impaired, under-privileged children , etc. like
social work being practiced regularly by the firm indicates its fine Corporate Social
Responsilbilities. Also this helps in forming a good characteristics image on the peoples
mind.

16] Facilitated better customer information management, end-customer database, along with
seamless integration with back-end SAP systems and many other as well forms a very well
Customer Relationship Managementof M&M company.

17] Keen Market Research covering market environment as well as demographic


environment helps Mahindra and Mahindra to understand the nerves of market. This all help
in targeting different age group people needs as well as over the other firms strategies help in
better conduction of sales.

18] Mahindra and Mahindra very attentively does Environment Scanning while keeping in
mind regarding various enviroments like natural , economical , technological , social and
cultural .

19] Company's objectives are achieved by perfectly made "Marketing Mix" with a set of
correlated tools: product, price, promotion, place.

20] Mahindra and Mahindra has consistently performing very well can be proved by its
increasing revenue over the subsequently last few years.

21] Firm’s strategies like pricing strategy , media strategy , frontal attack has always been
preparing it to overcome and forcast different future uncertainties.

22] All this tells that a consistently high performer, M&M is one of the most respected
companies in the country.
BIBLIOGRAP
HY
\Wikipedia

Mahindra and mahindra official side

Autodrive magazine

BBC News site

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