Brand Analysis - Mahindra Scorpio

Introduction
Scorpio launched in 2002 as an SUV with a car plus package the message conveyed the car you would walk into, not crawl into. Increased SUV market size, also touched base with the `C' class cars segment Received a National Award for Research & Development 2003 Car of the Year Award 2003 from Business Standard Motoring, BBC World Wheels and CNBC Auto car Went global in 2003 with its launch in Latin American, Middle East and South African markets In 2006, just 4 years after its launch it crossed the one lakh mark Chosen for the Gondwanaland Expedition-a landmark assignment for the vehicle
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Market Share and Market Potential

Market Share
Currently, Mahindras Scorpio commands a huge market share of 38.5% in the Indian SUV segment.

Market Potential
Indian auto-sales grew by 8.86% (929,596 vehicles) in May 2009, compared to the May 2008 (Source: SIAM). Mahindras UV segment sales in April 2008 stood at 9,809 units as against 7,126 units in April 2007, which translates into a growth of 37.7%. Mahindras exports grew to 295 units during April 2008 from 147 units a year ago.

Market Share and Market Potential

Potential Markets:
SUV segment

C-segment

Global Markets (geographic)

Growth Rate of Passenger Vehicles in Indian Market

Category Passenger Vehicles Growth 2003-04 989,560 36.81% 2004-05 2005-06 2006-07 2007-08 2008-09 1,838,69 3.44%

1,209,876 1,309,300 1,545,223 1,777,583 22.26% 8.22% 18.02% 15.04%

Comparative Growth Rates

M&M Segment Industry Q409 UVs 76,280 Growth -10.90% M&M Q409 48,088 Q408 42,999 Growth 11.80% Market Share Q409 63.0% Q408 50.2%

Cars Csegment

74,571

11.20%

2567

8120

-68.40%

3.40%

12.1%

Source: SIAM and Industry Data

Market Potential
EXISITING PRODUCTS NEW PRODUCTS

MARKET PENETRATION
EXISITING MARKETS Semi urban Potential C-Segment Untapped SUV Segment MARKET DEVELOPMENT NEW MARKETS Rural Global

PRODUCT DEVELOPMENT
Scorpio Hybrid Scorpio Caravan

DIVERSIFICATION

Geographic Share
Positioned across all geographical segments targeting both the urban as well as rural consumer
Country wise geographic reach Asia Pacific Indonesia Australia Malaysia Sri Lanka Europe United Kingdom Italy France Spain Americas Uruguay Brazil United States Chile Africa and Middle East Egypt South Africa Qatar

Bangladesh
Nepal

Turkey

Value Proposition
Brand Identity Prism - Scorpio
Styling, International Looks, Power Car Like Comfort Powerful, in control, Sophisticated

Physique
Styling, International Looks, Power Car Like Comfort

Persona
Living life at ones own terms

Relationship

Culture

User Image
Successful, new economy Businessman, Self Made, Evolved Taste

Self Image
A cut above, Expects the best from Life, Nothing Else8Matters.

Product extension
Product Extension Scorpio LX scorpio SLE Base model Base model with added features like voice assist, Anti lock braking system (ABS), Fog lamps and two toned upholstery Product Offering Price INR 7 L INR 8 L

scorpio VLX

High end gadget stuffed model for tech savvy consumers. Features include tyre-tronics, intellipark, Rain and light sensor, cruise control etc.
The VLX model with automatic gear box. Targeted towards the urbane as well as women drivers Pickup version aimed at adventure and weekend drives

INR 9.5 L

scorpio VLX Automatic scorpio Getaway

INR 10 L

INR 8.6 L
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Product Life Cycle

Introductory Growth Maturity

2004 scorpio SLX launched with two tone exteriors giving it an upmarket look Launched in June 2002. Engine designed in collaboration with AVL, Austria 2005 first Indian car with CRDe (common rail diesel engine). More power and environment friendly 2006 Major changes in scorpio with 43 additional features.

2007 V series ( VX and VLX) and getaway version launched. V series aimed at the luxurious segment 2008 scorpio automatic launched. Aimed at city drivers and female drivers 2009 Minor facelifts. Compliance with BS IV Emission norms
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Product Category
C Segment SUV Class

Utility Vehicle Segment (Mahindra Bolero,TATA Sumo)

Mahindra projected scorpio between the C segment and the Sports utility segment (SUV) and appeals to more of C segment customers. It was not all compared with the utility vehicle segment
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Competitor Analysis
The mid size car(C-segment) market was the competitive arena for Scorpio It had to appeal to segment C buyer and be aspirational for segment B buyers Scorpio perceived Segment C cars as its main competitors even though it was not the other way around. Hyundai Accent, Ford Ikon, Opel Corsa, Maruti Suzuki Esteem on one side whereas Tata Safari and Toyota Innova on other side.

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Threats
1) 2) 3) 4) Other Sedans Indian consumer mentality. Mini SUV segment Second Hand Luxury SUV Market

Strengths
1) 2) 3) 4) Rugged & Tough Reliable Economical Vehicle Well-respected manufacturer 5) Scorpio has the largest top of mind recall in the SUV segment 6) Technologically advanced

Weaknesses
1) Mahindra Image of being uncomfortable, rough, not easy to drive 2) Rural imagery

Scorpio

Opportunities
1) Introduction of new variants to remain the market leader in the segment 2) Growing market for Tough, stylish but affordable cars

TATA Safari
Strengths Weaknesses

Toyota Innova
Strengths Weaknesses

1) Spacious 1) High interiors maintenance 2) Greater comfort cost factor 2) Costly spare 3) Height adjustable parts drivers seat 3) Less stylish as 4) Ride Quality compared to 5) Both diesel and Scorpio and petrol variants Innova 6) Affordable Range

1) Commercial vehicle 1) Higher price. as as well as a family compared to car scorpio and 2) Luxurious and safari comfortable 2) Not meant for 3) Bridged the gap of hilly areas and space and seating rough roads capacity in sedans 3) Tough to get 4) Both diesel and through in traffic petrol variants 5) Less operating cost 6) High resale value

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Comparison on other parameters

Mileage Highway (Kmpl) Scorpio Tata Safari Toyota Innova 12.7 13.3 12.8 Mileage City (Kmpl) 9.8 8.6 10.2 Mileage Overall (Kmpl) 10.4 11 11.4 Fuel Tank Capacity (Liters) 60 65 55 Max Speed (Km/hr) 149 139.5 148.5 Seating Capacity 7 7 8

Toyota Innova is more fuel efficient as compared to Scorpio. Scorpio did not exceed its seating more than 7 to restrict its use as a taxi or a commercial vehicle. With its new powerful engine (mHawk) , Scorpio can attain speed of 60kmph in just5.7 seconds. With its new variants scorpio has been able to maintain its leadership position. First preference for tough drive in hilly areas and troublesome Indian Roads.
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The Consumer- Car Perceptions

Size matters- big size stands for status Consumers seek latest technology The sheer thrill and passion of driving an power packed SUV. But along with the others, luxury was a very important parameter International vehicles define imagery .

Consumers wanted to consume premium imagery at prices affordable to them.

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Identifying the need gap

There was a need to look beyond UVs in terms of competitive framework to attain volumes. Volumes in the automobile industry were coming from B and C segment cars. Thus Mid sized car segment was the arena for Scorpio to attain volume growth and market share. There was no SUV in the country that masses could buy. To make SUVs a mass concept in India- UVs needed to be seen as comfortable, easy for city driving and should have the imagery comparable to international brands.

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Market Strategy
Positioning Car Plus approach was very bold and innovative. Created new frames of reference. Brand Promise Luxury of a car, Thrill of an SUV Nothing else will do-superiority and uncompromising attitude.
.

Endorsement Scorpio from Mahindra, a shadow endorsement. Instability in the automobile sector after Daewoo fallout. Mahindra name used to indicate stability. Pricing Adopted the penetrative pricing strategy positioned with a starting price of Rs. 5 -7 Lakhs. High degree of cost competitiveness. Promotions A phased communication approach. Promotions-PR, Mass Media, Direct Marketing, Events. The television commercials depicted the product and a pan-global imagery , even as the print advertisements focused on functional benefits 18

Strategy
Distribution Strategy
Serve less markets at a time but serve them well

Phased Launch
First in Metros Mumbai, Delhi, Bangalore, Chennai. Twenty cities were included over a period of 4 months 50 cities were covered in a year Unique Customer Experience The showroom revamp was centered around 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.
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Response - The strategy delivered

Volumes and Market Shares: Achieved its volume target of 12000 vehicles in the first 9 months of its launch. Image:

High recall for the Mahindra brand as well as for the product .

Awards Scorpio Impact on M&M Increase in share price Increase in market share Image makeover from a rural player to a national player

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Conclusion
It is a brand built on an ever-evolving game plan.

It is a tale of category creation and a great example of the ability of a company to derive market growth.
The product has gone through stages of continuous innovation and improvement. Scorpio has proved as a Milestone for M&M and the Indian Automobile Industry. Its strategy has been the crux of sustainable growth.

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References
www.gaadi.com www.mahindra.com

http://www.mahindrascorpio.com/scorpio_refresh/i ndex.asp www.mouthshut.com

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