Case Study Analysis - Scorpio

Name: Subhadip Chakraborty
Roll no: 150103179

Section C
Case study analysis: SCORPIO from Mahindra
Developing Brand Identity
Company Analysis
Mahindra & Mahindra (M&M) was established in 1945. It was converted into a public
limited company in 1948.
Manufacturing activities started in 1954 in collaboration with Willys Overland Corporation.
Production of Light commercial Vehicles (LCV) started in 1965.
Four Manufacturing Plants: 3 in Maharashtra (Mumbai, Nasik, Igatpuri), 1 in Andhra
Pradesh.
It acquired International Tractor Company of India in 1977.
Tractor Brand Mahindra was established in 1982
Under the flagship company, there were two main sectors:
1) Automotive sector (utility vehicles, LCVs, three wheelers)
2) The farm equipment Sector (Tractors and other farm implements)
The net worth of the company in 2003 was Rs.15.7 billion
Rationalizing Brand portfolio
Pre-Case study scenario:
Mahindra was in jeep production first utility vehicle. It imported and assembled willys
jeep.
It also manufactured three wheelers pickup, goods carrier and produced hard top and soft
top three wheelers. Currently Mahindra has the Mahindra Champion and the Mahindra
Alfa in its three wheeler segment.
Hence it focused primarily on the rural areas. So when it decided to enter the city market, it
rationalized its brand portfolio which is specified below.
Redesigning existing Brand ARMADA to Mahindra Bolero in Aug 2000 by changing
aesthetics, physical features and creature comforts, thus entering city market.
Brand promise: luxurious toughness
Emotional Benefit: break free
Marshal launched as MaXX offering more space (stage carriage vehicles, economic contract
carriage, pick up vehicles).
Invader was launched next which targeted at the young rich, especially in rural areas priced at
0.38 million.
Camper was also launched which was a Multi utility vehicle(MUV) priced at 0.4 million.
These realignments were highly appreciated by the targeted audiences and had high recall. As
is evident from the adjoining graph, the fact that Bolero resulted in achieving a high opinion
even though it was a new rollout points to the fact that M&M was successful in its portfolio
restructuring.

Roll no: 150103179
Section C
AVERAGE RATING ON OVERALL OPINION
Average Rating
Armada Grand
Marshal
Armada
Tata Safari
Bolero
Toyota Qualis
Tata Sumo
0
Average Rating
Mahindra and Mahindra(M&M) launched their new sports utility vehicle Scorpio in Aug,
2002. During the first year, 12000 vehicles were sold, which rose to 24000 in the next year. In
2003, Scorpio was rated as the most successful new brand in the country.
Project Scorpio
Objective: World class, zero defect, trouble free product.
Brand element: Likeability feature (Scorpio), which signified stinging the competition with a
superior market offer.
Tagline: Nothing else will do
Product development process was termed as IDAM (Integrated design and manufacturing).
The multifunctional project team consisted of people from different functional departments
such as design and development, testing and validation, marketing, manufacturing, and
supplier development, etc. The project group was further divided into 19 cross-functional
teams which ensured quick decisions with built in checks and balances.
Brand positioning
Market dynamics: The Indian automotive market was showing a shift towards the trend of
poaching of C-class or luxury segments by the evolving UV segments. Also the semi
luxurious car segment (B) was rapidly growing at the rate of 43% in 2001 and the luxury car
segment was maintaining a growth of about 14%. Category A declined from 55% in 1999 to
about 34% in 2001. Hence if the new vehicle appealed to Category C and category B buyers,
then it would result in higher sales.

Roll no: 150103179
Section C
CAGR FOR VEHICLE SEGMENTS IN 2001
Growth Rate
Growth Rate
Static Drive Clinic for positioning:

Sample: People belonging to the age group of 21 to 60 yrs who owned a small or mid sized
car or the leading competing brand of SUV. Should be first hand owners and be driving their
vehicles at least once in a fortnight.
The product received excellent ratings in both static and drive phase.
STATIC
Sturdy
Exterior fit
Interior
styling
Comfort
Overall
interior fit
and finish
DRIVE
Power
Pick up
Quietness
of the
vehicle
Ease of
gear
shifting
Smoothne
ss of

Roll no: 150103179
Section C
Category C and D were target buyers.
Promise of the brand: LUXURY OF A CAR. THRILL OF AN SUV
Pricing decisions: Base version: 0.55 million
Fully Loaded version: 0.6 million
(lesser than leading SUV by 75,000)
Brand identity
Retailing and service experience:
150 dealer showrooms, but in rural and semi urban areas.
No up market appearance.
Sales and service processes which were followed were largely functional.
Hence, it was decided to Redesign and revamp the dealer network:
a)
b)
c)
d)
Uniform customer experience across all touch points.

professional inputs of a reputed architect.
imageries of movement, technology and sportiness.
Showroom design: Reception area, Display area, customer
discussion room, lounge.
e) Exclusive sales people: appropriate manners, pleasing appearance,
adequate sophistication.
f) 2 phase launch: First Phase: main metro cities
Second Phase: another 20 cities in 4 months
50 towns in a year
Brand building initiatives for multiple audiences:
Targeted audiences: Male, Female, Young, Families
Male:
a) Sportiness in showrooms
b) Technology and urban touch
c) Thrill of an SUV
Female:
a) Comfortability
b) Ads depicted woman driving the car
c) Spacious and luxurious
d) Positioning around Car
Young:
a) Sportiness and technology oriented
b) Thrill of an SUV, dominance
c) National Campaign and Targeted coverage

Roll no: 150103179
Section C
Families:
a) Safety, reliability and trust in Mahindra
b) Customer relationship management
c) Comfortability and spacious for the family.
Brand Identity Prism
PHYSIQUE
PERSONA
Styling, international
looks, powerful car
like comfort
Powerful, in-control,
sophisticated
RELATIONSHIP
USER IMAGE
Extension of lifestyle
Successful, new economy,

self made people
CULTURE
Living life at own
terms
SCORPIO
SELF IMAGE
Expects best from life,
nothing else will do
Communication Strategy:
The responsibility for planning and executing communication strategy was entrusted to
Interface Communications, a reputed advertisement and communication strategy situated near
the main manufacturing facility and hence promised better coordination.
The strategy adopted the positioning along the theme Luxury of a car, thrill of an SUV.
The advertisement specifications for television and print medium:
First objective: Dual advantages of luxury and thrill of SUV.
Second objective: premium imagery of SUV in the city context.
Third objective: Hero has to be the product.
Fourth objective: Similar look and feel across tv ads and print mediums.
Television: emotional benefits, international imagery
Print medium: functional benefits

Roll no: 150103179
Section C
The scorpio launch advertisements were aired on August 15, the independence day of India
so as to have a positive rub off of patriotism and Indianness and also it was a national holiday
so increased visibility.
In total the entire decibel message of scorpio was provided by (in one year):
Quantity
250
200
150
100
50
Television Sponsorships
Full page Advertisments
Magazine insertions
Quantity
Safe driving campaign:

In order to promote safe driving, 17 Indian automotive journalists drove Scorpio across 29
states in India travelling a distance of nearly 15,000 kilometres.
Scorpio Speedster:
The company, in association with ESPN and Timex, sponsored the scorpio speedster
competition for identifying the fastest Indian cricket bowler.
Customer relationship management:

Objective: to build a customer database and use it for favourable word of mouth publicity and
provide superior customer experience. Subsequently, to increase the lifetime value for the
customers.
Buyers had to fill a detailed form to become member of Top Gear Club response rate
(45%).

Roll no: 150103179
Section C
To improve the response rate, the company tied up with KC Mahindra trust that does
charitable work Nanhi Kali for the education of poor girls. It donated Rs.50 for every Top
Gear club form fill up (75% response rate).
Relationship Management program:
2 calls 7 days from purchase; 30 days from purchase
Special offers (Twice a year)
2 newsletters annually
Birthday and anniversary cards for buyers
Future Initiatives
a) Brand Community: Building a brand community of the buyers of
Scorpio encouraging them to go on cavalcades throughout the
country on every anniversary of Scorpio or special national events
to build a loyal customer base. For eg, On the first anniversary of
the scorpio launch, a cavalcade from Kandiveli to Nasik, actively
participated in by 75 customers was organized.
b) Brand revitalization: Making it more youth centric and adventurous.
The launch of TUV300 in September 2015 is a big step at making
the SUV nimbler, shorter and stiffer. Focusing on the adventure and
off-roading capabilities of the product. In the static and drive clinic,
it was found that the younger age group showed a propensity to pay
a higher price for the vehicle than the older age group.
References:
http://www.zigwheels.com/news-features/news/mahindra-tuv300-top-6-features/22962/

Roll no: 150103179
Section C

Case Study Analysis - Scorpio

Uploaded by

Copyright:

Available Formats

Case Study Analysis - Scorpio

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Case Study Analysis - Scorpio

Uploaded by

Copyright:

Available Formats

Name: Subhadip Chakraborty

Roll no: 150103179

Name: Subhadip Chakraborty

Name: Subhadip Chakraborty

Static Drive Clinic for positioning:

Name: Subhadip Chakraborty

Uniform customer experience across all touch points.

Name: Subhadip Chakraborty

Brand Identity Prism

Successful, new economy,

Name: Subhadip Chakraborty

Full page Advertisments

Safe driving campaign:

Customer relationship management:

Name: Subhadip Chakraborty

Name: Subhadip Chakraborty

You might also like