Group

Kriti Agarwal (2016084)

Manas Malhotra (2016087)
Bhavya Gaur (2016203)
Japanjot Singh (2016215)
Sachin Rathi (2016230)
Shishir Saurabh (2016235)
Siddharth Mertia (2016239)

Logan
Brand Failure
 2 Wheeler Segment Overall Passenger
One of the Largest Accounts for 7.1%
Leader with 81% Vehicle segment -
Industries in the World of Indias GDP
Market Share 13 % Market share
 Passenger Cars + UV
INTRODUCTION

Expected Growth

2.5 M units 6 M UNITS

2005 2020
 2005 2010
Mahindra & Joint Venture
Mahindra ended as it
enters in a 2009 reported a loss
Joint Venture Sales plunged of Rs. 580
with Renault year-on-year crore

2007 2009
Set up its first Recorded
manufacturing losses in the
plant in year ending
Nashik, March 31
Maharashtra
Mahindra and Mahindra entered into Joint venture with
Renault S.A. in 2005 to launch a entry level sedan in 2007
known as Logan

M&M,
Cost effective Supplier Renault

Mahindra and Mahindra and Mahindra Automotive division is the flagship

company of Mahindra Conglomerate
base, Brand name,
Expertise in Indian
market,
Expertise in design,
engineering,

Mahindra Wide Portfolio is SUV, School buses, Light and heavy trucks Innovation, safety
Largest manufacturer of tractors in India Wide distribution base

French automaker company, its alliance with Nissan makes it

Renault S.A. fourth largest automotive group in the world

Leading electric car manufacturing company
Cars in India include Duster, Pulse, Koleos

Mahindra
Renault JV
 Automobiles in India classified into segments
Initial Positioning on the basis of lengths asper SIAM and
ACMA
Repositioning

Entry Level
A3 Segment Entry Level A3
Car Segment Car

On the Basis of Price and Functionality,

Functional
Logan can be classified under the premium
Functional and
economy segment as its price ranges from INR Emotional
4.5 to INR 7.5 Lakhs

Pricing and Value for

Space as Money,
Mileage, Ride
PODs Quality, Trouble
free ownership

Maruti Suzuki
SX4, Dzire,
LOGAN Main Competitors Hyundai Verna,
Tata Indigo
 Came under the higher
Spacious and
tax bracket as compared
comfortable
to its competitors due to
(4247*1740*1534 cmm)
the car length (4.4 m)
Strengths Attracted the higher Weakness
Increased cost due to
middle income class
imports (Engine from
Powerful Engine France)
(1390 cc )
Outdated looks

Expanding segment of
Intense and growing
sedan cars with
competition in the
innovation (CAGR of
market (Maruti,
24.3% for the period
Hyundai)
Opportunitie spanning 2005-09) Threats
Similar products at
s Reduce price by using
same price range with
local materials instead
better features (Swift
of imports or innovate
Dzire )
distribution network.
 Good Strategy ,Poor
Poor Strategy Execution
Positioning Strategy- Logan positioned
as a premium segment A3 car while
Mahindra was known for being tough,
The Strategy,
reliable , economical Poor tie up
Execution
resulting in Failure of the Brand
Matrix
Pricing Strategy-Competitors had much
aggressive price tags as compared to
Logan (4.43-5.32 Petrol, 6.68 Diesel)
which is not exactly a low cost strategy , Poor Strategy, Poor
50% parts imported, increasing the car Execution
price

Product Strategy- Outdated Looks , Not

so appealing features Car Length Price Range Excise Duty Rate
4.24 m car resulting in a Higher
Swift Dzire 3.99 m Ranging from 5.43lk (LXI) to 9.39lk (AMT 8%
duty(20%) while competitors had 4 m ZDI Plus)
cars facing a nominal duty of 8%
TATA 3.98 m Ranging from 4.96lk (eGLS BS IV) to 6.25lk 8%
Indigo (VX CR4 BS4)

Logan 4.24 Ranging from 4.43lk to 6.68lk 20%

 Poor Execution
ECONOMIC
Logan was launched in 2007, just before the crisis of 2008. Due to this, it felt a pinch in customers wallets to buy a high priced car like Logan.

MARKET REASEARCH
There was an aesthetic mismatch with Indians. It failed on modernity and luxury. Moreover, the design was not liked by Indians, which was
a result of inefficient Market Research

CONSUMER PERCEPTION
Post Launch, a research was conducted to gauge the Consumer Perception about Logan as a car. It was found that it performed very
badly in almost all the aspects even in those which were said to be the highlights of the Car

COMMUNICATION
The ads shown in India were far away from reality filled with loud music, nervousness with Hollywood references and ended with
Bollywood music created a mismatch of communication

COMMITMENT
After JV, Renault initiated talks with other auto manufacturers for a small car, This lack of commitment from Renault , M&M preferred to
push the SCORPIO more resulting in limited dealer push for Logan in spite of the strongest distribution network

LIMITED BRANDING
After the initial Launch Campaign , there was precious little branding . Lack of customer pull coupled with lack of retailer push ensured that Logan
never took of in India
 Perception of Mahindra Logan vis-avis Competitors
8
7
6
SCORE GIVEN
5
4
3
2
1
0

PARAMETERS

Suzuki Dzire Suzuki SX4 Hyundai Accent Honda City Tata Indigo Mahindra Logan

Cars Price Mileage Style/Exteriors Spaciousness Availability of Spares/Service Interiors Reliability/Quality Brand Name Availability of Financial Schemes

Average 5.25 5.05 5.37 6.08 5.53 5.75 5.83 5.68 5.20

Median 5.25 5.05 5.50 6.00 5.60 5.80 5.83 5.80 5.20

Mean Deviation Logan -0.75 0.25 -2.17 0.92 -1.23 -1.65 -1.43 -1.68 -0.60

Deviation from Median -0.75 0.25 -2.30 1.00 -1.30 -1.70 -1.43 -1.80 -0.60
 Result of the Poor Strategy and Execution

Target 30,000 2500 Actual Sales

units/Year units/Month 487 units/ Month

Sales Plunge
71%year on year 490 Crore Loss in
2009
2009

Further 60.3% 580 Crore

Drop in sales consolidated losses Erosion of Equity Venture
compared to and Impairment of Value Dissolved in 2010
Assets
previous Year
Logan It was not only a Car that failed
Marketing Research Failed
Marketing Execution Failed
What better could have been done

Indian-ization of LOGAN
How DO We Say Indianisation Could Have Worked

What Renault conducted In-depth Buying Behavior FG Study on a set

of 30 Families Across India over 2 months.
Renault
Spent time with them to understand what they liked and what
Did For they didnt in their vehicle.
Duster

Decided to implement 41 changes to the Duster which they

were selling in Europe

Changed the Exteriors (Added Chrome) & Interior (Dual Tone)

Tuned Engine In Paris with Indian Diesel for efficiency.
Re-engineered the car to implement Rear Vent AC and other
detailing.
Key With High Involvement such as Cars, It
Learnings
is Very Imp. to Study your Market and
Its Preferences In-Detail

What Succeeded In one country may

not succeed in other.

Cultural Difference Plays a Huge Role.

Think twice before selling too many

cars (which you claim to be a compact
luxury Sedan) to a dial-a-cab Company.