Scorpio- Developing

brand identity

Definition of UV , SUV and MUV

A utility vehicle is a vehicle, generally motorized, that is designed
to carry out a specific task with more efficacy than a generalpurpose vehicle e.g. military tanks, armored personnel carriers etc.
A sports utility vehicle, or suburban utility vehicle (SUV) (sometimes
called a sports utility wagon), is a vehicle similar to a station
wagon, estate car, or van usually equipped with four-wheel drive for
on-road or off-road ability.
Some SUVs include the towing capacity of a pickup truck with the
passenger-carrying space of a minivan or large sedan
MUVs are larger vehicles which can tackle a wide range of
applications. They typically allow easy conversion between multiple
combinations of passenger and luggage capacity.

Mahindra & Mahindra Ltd.

Established in 1945
Manufacturing activities of automotive division started in 1954
Assembling of Willys Jeep
Production of LCV in 1965
Started 4 manufacturing plants i.e. Nasik, Mumbai, Igatpuri,
Zaheerabad
Acquired International Tractor company of India in 1977
In 2003, the company sold about 87000 vehicles and 47000 tractors
Turnover of Rs 46 Billion and net profit of Rs 1.46 Billion
Net worth of the company Rs 15.7 Billion
Divided into two categories : Automotive sector and Farm equipment
sector

Brand Portfolio
Armada redesigned as Mahindra Bolero :
Brand Promise: luxurious toughness
Emotional benefit: break free

Marshall was modified as MaXX, offering more space

This vehicle was used for commercial purposes

Personal off road vehicle Invader launched

A MUV Camper was launched
Price comparison
Mahindra

Tata

Mahindra Bolero

Rs 4,90,000

Tata Sumo

Rs
5,50,000

Invader

Rs 3,80,000

Tata Safari

Rs
8,50,000

Camper

Rs 4,00,000

Scorpio (Base
variant)

Rs 5,50,000

Scorpio (High

Rs 6,00,000

Pricing should be such

that a customer is able to
get value. The vehicle
should be priced
according to its segment.
High degree of cost
competitiveness from
Mahindra

Need for Project Scorpio

Utility Vehicle constituted 10-12 % of the total vehicle market and 16%
of the total passenger car market
SUV Segment was evolving and constituted a niche market segment
Market dynamics : Success of Toyota Qualis as there was a shift of the
consumers from Category B & C Buyers towards UV products

Average Rating on Overall opinion

CAGR for different Segments 1999

9
8
7
6
5
4
3
2
1
0

50%
40%
30%
20%
10%
0%
Average Rating on Overall opinion

Category A

Category B

Category C

CAGR for different Segments 1999

Market Share of Utility vehicles

Market Share of UV Players from FY97 to FY02
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

M&M

HM

Maruti
FY97

FY98

FY99

Bajaj Tempo with Trax

FY00

FY01

Telco (TATA)

Toyota

FY02

Entry of Toyota Qualis in 2001

Tata Safari was an expensive vehicle in 2001-02
There was a need to provide a Value for Money , Affordable, Car Like SUV to the consumers
Mahindra wanted to come up with a Pro-Active Strategy to beat the competition

Brand Positioning

Mahindras Image was a big

barrier
Positive parameter

Contemporary

Gyps
y
Boler
o

Quali
s

Arma
da
Marsha
ll
Invade
r
Camp
er
Other
s

Scorp
io

Traditional

Safa
ri

Expensive

inexpensive

Scorpio
Projecti
on

Rugged
Tough
Reliable
Economical

Negative parameter

Uncomfortable
Rough
Not easy to drive
Rural imagery
Down Market

Objectives of IDAM
To create a new segment and retain that segment
To differentiate offering by providing customer value proposition product
To offer a differentiated product, the development team of JV Ford Escort was
brought in which gave birth to Luxury of a Car. Thrill of an SUV
Its a learning organization leveraged on past learnings

To optimize project costs

Results:
The project was made in a span of 5 years
The teams average age was 27 years which helped in designing an urban &
stylish product (Youth and Urban aspirations captured in early stage)
19 cross functional teams & total persons were 120
Project cost was 120 million USD (1/5 th of global Automotive players project
cost)
It is easier to make what you can sell, then to sell what you have made
Guideline of the force of the IDAM (Mumbai) (case of Internal branding )

Brand Initiatives analysis

Initiatives

Evaluati
on

Analysis

Vehicle Clinic (Age group 21-60

years)
Owners of small car, mid-size
car and leading competing
brand of SUV

Justified

1. The need to understand whether the Mahindra as a

brand was still perceived in jeep category, rugged
or down market Prod.
2. Consumers were still not very familiar of SUV
concept. They could associate more with car and
jeep features
3. The consumer group also felt the vehicle consisted
of Sumo, Qualis and Safari. This gave them insight
that they need to position their product differently in
consumers mind
4. This Practice is also known as NOVA-C (new overall
vehicle audit-customer)

The Product was branded as

Scorpio

Justified

1. A unique name was given to it to attract the

premium, classy and urban segment of people
2. A Sub-brand name strategy was followed as
Mahindra was already an established player in the
UV Market
3. To provide a High-end prestige brand in the existing

Brand Initiatives analysis

Initiatives

Evaluati
on

Analysis

Retail Experience:
The Showrooms were in rural
and semi-urban locations.
Upgradation of these centers to
give a up-market feeling

Justified

1. Mahindras image was that of rural and down market

image
2. In order to scale up the premium image and upmarket feeling associated with the brand, this was a
necessary step
3. Scorpio would be marketed as an Affordable,
Premium and Car like SUV
4. Sportiness in showrooms to give a vibrant
impression

Uniform customer experience

across all the retail points were
getting the buy-in by the
dealers in investing resources
and adhering to design
standards and showroom audit.

Justified

1.
2.
3.
4.

Part of integrated marketing strategy

Linking internal and external marketing
Bring the brand alive for consumers alike
Value propositions was to provide the target
customers a distinct showroom experience

Brand Initiatives analysis

Initiatives

Evaluati
on

Analysis

Service delivery upgradation.

Potential people were trained to
develop appropriate manners,
pleasing appearance and
sophistication in dealing with
the new types of target
customers of scorpio

Justified

1. Mahindra had a down market and more of traditional

image
2. The brand was a premium one which was targeted at
urban people, Category B & C people
3. To cater to that different segment, at ground level
trained people were required to handle this new
class of customers
4. To establish a unique customer experience for this
niche segment

Scorpio was launched in a

phased manner to ensure that
the retail and service facilities

Justified

1. Mahindras strategy was to start serving less

markets initially but serve them well
2. A cautious approach towards expansion , step-bystep

Communication Strategy
Luxury of a car. Thrill of an
SUV
Television medium: emotional
benefits

Justified

1. Break the perceptual barrier of not for city drive

2. Promote it as a family vehicle which offered luxury
and comfort
3. Communicate SUV type vehicle as a soft product
4. Multiple communication modes to support the high

Brand Initiatives analysis

Initiatives

Evaluati
on

Analysis

TV and Print Ads were shot in

Australia and urban locations.
Ads depicted women driving the
vehicle
Exhibits 3 to 8 are the print Ads

Justified

1. Mahindras marketing strategy tried to convey that

the product is easy to use and appropriate for all
2. The messages in the Ads leveraged on the consumer
psychology of Owners Pride and Neighbors Envy
3. The product was showcased in a big way as a status
symbol and disruptive innovation
4. It was giving direct competition to sedans existing
that time
5. It fell between a passenger car and as SUV

Scorpio launch advertisements

aired on 15Th August,
The independence day of India

Justified

1. Mahindra Leveraged on the PR campaign to highlight

the Indianness of the Product on the right time
2. Designed, Manufactured and Marketed by an Indian
Company and Pride of patriotism was evoked

Brand Initiatives analysis

Initiatives

Evaluati
on

Analysis

1. Cavalcade of 3 Scorpios
Justified
being driven in Mumbai
2. Tie-up with Scorpion King
film
3. Promote safe driving with
Journalists across 29 states in
various cities
4. Scorpio Speedster

1. To create excitement and Brand visibility

2. Responsible campaigns promoting safe driving
enhances brand perception
3. Scorpio Speedster was done to showcased the
enhanced acceleration (100 kmph in 0-15 Secs) and
speed of the vehicle (149 Kmph)

1. Managing Customer
Relationship
2. Telephone calls to customers
3. Top Gear Club formation and
tying it with scheme Nanhi
Kali
4. Exhibit 11 to 15

1. Developing brand communities was an effective step

2. Personalizing Marketing & Permission Marketing were
practiced
3. Helped differentiating customers in terms of their
needs and their value to ones company
4. Helps identifying companys prospects and
customers
5. Enhancement of knowledge about individual needs
and to build stronger relationships

Justified

Brand Initiatives analysis

Initiatives

Evaluati
on

1. Exhibit 16 Shows the growth

of UV Vehicles

Justified

1. Growth of UV vehicles shows that there is market

potential in this segment and its growth will attract
several MNCs

1. Exhibit 17 shows success of

Scorpio

Justified

1. Mahindra got international recognition for developing

Scorpio and the customers felt proud in associating
with this brand

Previous car owners who now own scorpio

Analysis

Distribution of Car Owners

35%
30%
32%

25%
20%

68%

15%
10%
5%
0%

Segment A

Segment B

Segment C

Previous Car Owners

New Owners

Previous car owners who now own scorpio

Mahindra Scorpio was able to generate interest in new customers as well which forms
32% of the customers for Scorpio

Future Directions
Overall all the existing products must go undergo incremental
innovative changes like face-uplifts and technological
advancements
Focus marketing and distributing in International Markets as
the brand already has an international reputation
Work on new project platforms like Sub 4 metre Compact
SUVs for urban and semi-urban populations
This is to counter the new MNCs which would be launching their
models in India
The communication strategy could be Come, Experience, Believe ,
Urban Discoveries, Heads will turn and turn again

Launching of Hybrid cars on Scorpio platforms

Future Directions
Rural Markets are a major contributor to Mahindra Sales
Focus on campaigns to empower them with improved commercial products

Organize off-roading and adventure sports to promote Mahindra brand

Tie-up with Sports events and formula racing events to improve on the
brands visibility
Start leveraging on digital platforms and social media for promotion
and advertisement
Crowdsourcing for future projects and strategies
Focus on a differentiated off-road vehicle for the off road community
enthusiasts
Start customer loyalty programs for Scorpio customers to retain and
attract new customers
Use the Customer relationship Database to understand the needs and
gaps in the strategies and revitalize them.