IMC

Concept, Function and Tools

Car Market Overview

Segm ent shares
Grow th rates
00-01 01-02 02-0303-0400-01 01-02 02-03
CAGR

Scorpio

Segment A

30.6%

29.5%

26.5%

-26.1%

-3.2%

Segment B

37.9%

41.0%

42.4%

-1.3%

8.6%

4.7%

Segment C

10.5%

9.1%

10.6%

32.6% -12.6%

18.3%

Segment C+

3.4%

2.8%

2.7%

-4.6% -17.1%

-3.1%

Segment D

0.1%

0.8%

1.7%

13.6%

12.8%

10.0%

Entry SUV

4.0%

4.0%

6.2% 353.4%

0.1%

57.2%

SUV

0.0%
693.5

0.0%
695.5

0.0%
705.1

0.3%

1.4%

UV

Total

Evolved consumers
The expectations on comforts
Denition of luxury
Wanted thrill of an SUV, but the comforts of
a car
At the same time was savvy in terms of price-
value equation

-8.9%

16.2% 828.7% 115.1%

-17.2%

-7.9%

-5.9% -20.9%

Competition
Saw themselves as a car vs. UV
manufacturers
Divided market on the basis of car
segments
A,B,C,Detc.

Scorpio Launch Challenges

Unrealistic objectives
1200 vehicles a month
Category leader Safari was selling 250 vehicles a
month

Mahindra Baggage
Product is Ready Looked like a tank!

Scorpio Communication strategy

Call itself a CAR
Connotes the comforts, luxury and imagery
associated with it

Give international look & feel

Keep it within the city
Scorpio to dominate Mahindra
Bring up the imagery of Mahindra

Product design
The spare wheel at the bottom
Seats
Hand rests at the doors
Music system as part of the original equipent

Even helped the overall growth

of C
segment & entry SUV

Result for Scorpio

Sales of more than 2500 vehicles per month
One month waiting period in a highly
competitive market
Various awards in CAR category
Ees award for advertising
Created a whole new category &
terminology in Indian four wheeler market

Segm ent shares

00-01 01-02 02-03

03-04

Segment A

38.1%

30.6%

29.5%

26.5%

24.3% -26.1%

Segment B

35.4%

37.9%

41.0%

42.4%

40.3%

-1.3%

8.6%

4.7% 23.7%

6.7%

Segment C

7.3%

10.5%

9.1%

10.6%

12.2%

32.6% -12.6%

18.3% 49.7%

15.5%

Segment C+

3.3%

3.4%

2.8%

2.7%

3.4%

-4.6% -17.1%

-3.1% 65.7%

4.9%

Segment D

0.1%

0.1%

0.8%

1.7%

2.4%

16.2% 828.7% 115.1% 84.8% 112.1%

99-00

UV

Grow th rates
01-02 02-03 03-04

00-01

-3.2%

CAGR

-8.9% 19.3%

-4.9%

15.1%

13.6%

12.8%

10.0%

10.7% -17.2%

Entry SUV

0.8%

4.0%

4.0%

6.2%

6.5% 353.4%

0.1%

57.2% 37.2%

57.8%

SUV

0.0%

0.0%
693.5

0.0%
695.5

0.0%
705.1

0.3%
918.3

0.3%

1.4% 30.2%

4.1%

Total

753.1

-7.9%

-5.9% -20.9% 39.8%

-2.9%

Relevant
Not Relevant

Oered Value

Role of Promotion in Marketing

Focus on
Improving Value

Focus on
Promo7on

Focus on
Marke7ng
Strategy &
En7re marke7ng
Mix

Focus on Oer
Product, Price

Not Relevant

The brands can exist only if they

communicate.

Great brands have a gift of speech

Relevant

Perceived Value

Marketing Communication Mix

IMC Tools
Marketing Communications Mix

Advertising
Print and broadcast ads
Packaging-outer
Packaging inserts
Motion pictures
Brochures and booklets
Posters and leaets
Directories
Reprints of ads
Billboards
Display signs
Point-of- purchase displays
Audiovisual material
Symbols and logos
Videotapes

SP
Contests, games,
sweepstakes, lotteries
Premiums and gifts
Sampling
Fairs and trade shows
Exhibits
Demonstrations
Coupons
Rebates
Low-interest nancing
Entertainment
Trade-in allowances
Continuity programs
Tie-ins

PR
Press kits
Speeches
Seminars
Annual reports
Charitable donations
Sponsorships
Publications
Lobbying
Identity media
Company magazine
events
Product placements
WoM

PS
Sales presentations

Sales meetings

Leave-Behinds/
Collaterals

Samples

Fairs and trade
shows

DM
Catalogs
Mailings
Telemarketing
Electronic shopping
TV shopping
Fax mail
E-mail
SMS

Key denitions

Need to Classify

Advertising: paid form of non-personal presntation/ promotion

Situation

Sales Promotion: Short-term incentives to encourage trial/

Consumer Buying Behavior

of ideas, goods or services by an identied sponsor.

purchase

Public Relations & Publicity: Promote/ protect Brands image in

an indirect way

Personal Selling: F2F interaction with one/more prospective

buyers.

Direct Marketing: Use of interactive media to communicate

directly or solicit direct response from specic customers and

prospets

Product/ Market
Consumer Prior Knowledge, Motivations, Information
Processing ability
Consumer Response Cognitive, Aective, Behavioural

Communication
Modality (sight, sound, text/ iconic, associative, persuasive,
Interactive)
Executional ability (Informational/ emotional)

Choice Criteria of Elements of

Communication Mix
Element

Characteristics

Ad

-
-
-
-
-
-
-

Public approval
Standardized Offer
Dramatization
Non-inrusive
Repeat messages
Interactive
Cultivation/
Objection Handling
- Response
- Demonstration
- Attention
- Incentive
- Invitation to buy
Now/More
- High Credibility
- Approval, Hype
- Catch Ad avoiders
- Customized
- Interactive
- Response oriented

PS

SP
PR
DM

Cost

Measur-
ability

Image
Action Credibility Targeting Control
building oriented
over
ability
message