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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Household products
limited

Concept development and

testing
A toilet soap in high price segment
that contain jasmine fragrance
Made from pure vegetable oil
against animal fats

BRAND MAP

Product development
Task given to R&D to develop
jasmine fragrance perfume
2 out of 6 developed were finalized
based on better impact than
competitor
Based on panel survey of 3 panel
with women 18-35 years age final
product was finalized

Market testing
Testing the products in market which was
responsive like indore and not responsive
like Hyderabad
Run test for the period of 9-12 months
Launch planned with launch conference
attended by sales manager, supervisor
and sales man. For the market selected
Display contest in retail shops to achieve
high visibility and slides in cinema

Commercialization
Company was late entrant in the
market
Company would go nationally based on
performance in test market
Targeted traditional customer with high
income (above 15000rs per month

Company should go nationally

Market stratergy
1st part
Target customer with income level above Rs 30000
Target jaimala customer in responsive states as
company cannot gain market share
Igh growth should be preference against profit in
initial phase
2nd part
Pricing should be kept same
To capture market initiallyintroductory offer should
be given

Market stratergy
3rd part
In long term after initial discount
company should focus more on
advertising

Interpretation from exhibits

After initial offer company was able to push itself
better in responsive state in 2 months 200% more
market share than jaimala and gradually it tapered
off
Penetration was high in Indore in both income group
as compared to Hyderabad in A income group
during last 6 months of testing
Even cumulative penetration shows the same
pattern
Sehra gained its market share mostly from low
priced offering and was able to gain share from
jaimala in second period

Exhibit 1
500

Initial increase in the sales

is due to introductory
discount period offer, where
many schemes were given
to consumers.

400
300
200
100
0

Hyderabad
Indore

25143
25204
25263
25324
25112
25173
25235
25294

Market Share By Retail Shop Audit

Sehra vs. Jaimala (Exhibit 2)

18
16
14
12
10
8
6
4
2
0

Sehra
Jaimala

Month by Month Analysis of % of households buying Sehra and

Jaimala
( Exhibit 4)

20
15
10

10
8
6
4

I.C. A- Income above

10,000

I.C. B- Income between

5,000 and 10,000

Market Share as measured on consumer panel, by value

(Exhibit 5)

8
7
6
5
4
3
2
1
0

FOR HYDERABAD

5
4
3
2
1
0

FOR INDORE

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.

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Market Share and Market Potential

Potential Markets:
SUV segment

C-segment

Global Markets (geographic)

16

Growth Rate of Passenger Vehicles in Indian Market

Category

2003-04

Passenger
Vehicles

989,560

Growth

36.81%

2004-05

2005-06

2006-07

2007-08

2008-09

1,209,876 1,309,300 1,545,223 1,777,583

22.26%

8.22%

18.02%

15.04%

1,838,69
3.44%

Comparative Growth Rates

M&M
Segment

Industry

M&M

Market Share

Q409

Growth

Q409

Q408

Growth

Q409

Q408

UVs

76,280

-10.90%

48,088

42,999

11.80%

63.0%

50.2%

Cars Csegment

74,571

11.20%

2567

8120

-68.40%

3.40%

12.1%

Source: SIAM and Industry Data

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Market Potential
EXISITING
PRODUCTS
MARKET PENETRATION
EXISITING
MARKETS

Semi urban
Potential C-Segment
Untapped SUV
Segment
MARKET DEVELOPMENT

NEW
MARKETS

NEW
PRODUCTS
PRODUCT
DEVELOPMENT
Scorpio Hybrid
Scorpio Caravan

DIVERSIFICATION

Rural
Global

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Geographic Share
Positioned across all geographical segments targeting both the urban as
well as rural consumer
Country wise geographic reach
Asia Pacific

Europe

Americas

Africa and Middle

East

Indonesia

United Kingdom

Uruguay

Egypt

Australia

Italy

Brazil

South Africa

Malaysia

France

United States

Qatar

Sri Lanka

Spain

Chile

Bangladesh

Turkey

Nepal
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Value Proposition
Styling,
International
Looks, Power Car
Like Comfort

Brand Identity Prism Scorpio

Powerful, in
control,
Sophisticated

Physique
Styling,
Internationa
l Looks,
Power Car
Like
Comfort

Relationship

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

Persona

Culture

Living life at
ones own
terms

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

Product extension
Product
Extension

Product Offering

Price

Scorpio LX

Base model

INR 7 L

scorpio SLE

Base model with added features like voice

assist, Anti lock braking system (ABS), Fog
lamps and two toned upholstery

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.

INR 9.5 L

scorpio VLX
Automatic

The VLX model with automatic gear box.

Targeted towards the urbane as well as women
drivers

INR 10 L

scorpio Getaway

Pickup version aimed at adventure and

weekend drives

INR 8.6 L
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Product Life Cycle

Introductory

Growth

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.

Maturity

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

Ford Ikon
TATA Safari

Hyundai
Accent
Honda City

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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SWOT ANALYSIS
Threats

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

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

Scorpio

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

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

Major Competitors
TATA Safari
Strengths
1) Spacious
interiors
2) Greater comfort
factor
3) Height
adjustable
drivers seat
4) Ride Quality
5) Both diesel and
petrol variants
6) Affordable
Range

Weaknesses
1) High
maintenance
cost
2) Costly spare
parts
3) Less stylish as
compared to
Scorpio and
Innova

Toyota Innova
Strengths

Weaknesses

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)

Mileage
City
(Kmpl)

Mileage
Overall
(Kmpl)

Fuel Tank
Capacity
(Liters)

Max
Speed
(Km/hr)

Seating
Capacity

Scorpio

12.7

9.8

10.4

60

149

Tata
Safari

13.3

8.6

11

65

139.5

Toyota
Innova

12.8

10.2

11.4

55

148.5

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.
29

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 30

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_r
efresh/index.asp
www.mouthshut.com

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