A SUMMER INTERNSHIP REPORTON

MARKETING STRATEGIES WITH SPECIAL REF-

ERENCE TO MAHINDRA SCORPIO

GRAPHIC ERA UNIVERSITYDEHRADUN

SUBMITTED FOR PARTIAL FULFILMENT OFMASTER OF BUSINESS ADMINISTRATION

(MARKETING)(2015-17)

SUBMITTED TO:Dr. SANJEEV ARORA

FACULTY OF MANAGEMENT

Graphic Era University

SUBMITTED BY:MANUJ SINGH

MBA 2ND YEAR MARKETING

Graphic Era University

1

DECLARATION

I hereby declare that the project entitled “MARKETING STRATEGIES WITH SPECIAL REF-

ERENCE TO MAHINDRA SCORPIO” submitted in partial fulfilment of the requirement for

the degree of MBA to GRAPHIC ERA UNIVERSITY, at Dehradun is my original work and not

submitted for award if any other degree/ diploma or similar title or prize.

DATE: ……. 2016 MANUJ SINGH

MBA (2015-17)

PLACE: Dehradun

2

ACKNOWLEDGEMENT

This report has been made possible with the cooperation of many persons

whom I wish to express my gratitude and appreciation. I am very grateful to the

people who supported me to transform the report in the materialistic form.

I am thankful to Dr. SANJEEV ARORA faculty management at

GRAPHIC ERA UNIVERSITY, Dehradun for his gratitude during my project

and giving me full co-operation and also valuable information and guidance, with-

out which it would not be possible for me to complete the manuscript.

I would also like to thanks the librarian and staff members of GRAPHIC

ERA UNIVERSITY, Dehradun for providing me the required books in this field

and my friends who were always there to assist me at odd hours also.

MANUJ SINGH

3

EXECUTIVE SUMMARYMahindra & Mahindra (M&M), the market leader in multi-utility vehicles in India. The company

started manufacturing commercial vehicles in 1945. M&M is the leader by far in commercial ve-

hicle and the second largest in the passenger vehicle market. The company is the world’s sixth

largest medium and heavy commercial vehicle manufacturing.

Mahindra is best known for utility vehicles and tractors in India, Its automotive division, the

company's oldest unit (founded in 1945), makes jeeps and three-wheelers (not passenger "auto

rickshaws," but utilitarian delivery and flatbed incarnations). M&M's farm equipment sector,

formed in 1963 during India's green revolution, manufactures tractors and industrial engines.

M&M also produces military vehicles. The company has facilities located throughout India.

The survey involved gathering wide information about the company, its products, customer satis-

faction and impact of various competitive firms on the company.

From the information collected, various aspects were identified where the company needs to fo-

cus more to improve the efficiency of marketing team of Mahindra Automotive.

The research was conducted through collection of primary and secondary data. Secondary data

was collected through visiting various web sites, automobile magazines and other reliable

sources. Primary data was collected through a well-framed questionnaire, of which later a de-

tailed analysis was done using various statistical I.T. tools like MS Word and MS Excel.

On the basis, the secondary data analysis and the extensive analysis of the primary data, interpre-

tations were drawn for the questions and conclusion is drawn. Certain suggestions are also

drawn from the analysis to help.

Mahindra Automotive to increase its market share in commercial passenger segment and MPVs.

The main research that followed is to know “MARKETING STRATEGIES WITH SPECIAL

REFERENCE TO MAHINDRA SCORPIO”, a new SUV recently launched by Mahindra.

Due to the limited resources and time constraints, the study was conducted within the area

Dehradun city.

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5

INDEX

ABOUT MAHINDRA FIRST CHOICE 7COMPANY PROFILE 10MILSTONE, AWARDS AND ACCOLADES 12MILESTONES of M&M 16PRODUCT PROFILE 18BOLERO VARIANTS 19INTRODUCTION TO STRATEGY 30RESEARCH METHODOLOGY 52DATA ANALYSIS & INTERPRETATION 59FINDING 70RECOMMENDATION 72CONCLUSION 74BIBLIOGRAPHY 76ANNEXURES 78QUESTIONNAIRE 79

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ABOUT MAHINDRA FIRST CHOICEMahindra First Choice Wheels is the country’s preferred used car mart and is India’s only organ-

ised multi-brand player, with 500+ outlets in 270+ cities in India.

The company plans to expand this number to 1800 outlets by the year 2020. This implies that

customers will soon be able to choose from a wide range of certified used cars throughout India,

including the metros and tier-2 towns and cities.

MAHINDRA GROUP

Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 to

bring the iconic Willys Jeep onto Indian roads. Over the years, we’ve diversified into many new

businesses in order to better meet the needs of our customers. We follow a unique business

model of creating empowered companies that enjoy the best entrepreneurial independence and

Group-wide synergies. This principle has led our growth into a US $16.5 billion multinational

group with more than 180,000 employees in over 100 countries across the globe.

Today, our operations span 18 key industries that form the foundation of every modern econ-

omy: aerospace, aftermarket, agribusiness, automotive, components, construction equipment,

consulting services, defence, energy, farm equipment, finance and insurance, industrial equip-

ment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheel-

ers.

Our federated structure enables each business to chart its own future and simultaneously leverage

synergies across the entire Group’s competencies. In this way, the diversity of our expertise al-

lows us to bring our customers the best in many fields.

Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only

tractor company worldwide to be bestowed this honour. It also holds the distinction of being the

only tractor company worldwide to win the Deming Prize. The US based Reputation Institute

ranked Mahindra among the top 10.

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Mahindra First Choice Services to expand chain of workshops

The multi-brand car workshop chain Mahindra First Choice Services, a wholly-owned subsidiary

of the diversified Mahindra & Mahindra Limited, has announced plans to rapidly expand its

chain of workshops from 42 to 100 by March 2015.

The chain inaugurated its first Franchisee Owned Franchisee Operated (FOFO) workshop in

Kurnool town today.

YVS Vijay Kumar, Chief Executive Officer of Mahindra First Choice Services, said, “We see

great potential for the multi-brand car servicing market in the country. This has prompted us to

further strengthen our presence. Our business model for franchisees has received a strong re-

sponse.”

MFCS is targeting over 100 Franchisee Owned and Franchisee Operated workshops by March

2015. Of this, 20 workshops are expected to come up in Telangana and Andhra Pradesh, he said.

For a car service provider, a strong supply chain for spares and technical training are two most

essential elements. With 42 existing workshops and over 2,00,000 cars serviced, MFCS believes

that it has a strong proposition for the franchisees. The company offers a simplified business

model in multi-brand car servicing with a robust supply chain for spare parts through its cluster

warehouse.

Each cluster warehouse supplies parts as per the daily requirements of Franchisee Owned and

Franchisee Operated and Company Owned and Company Operated centres, thereby reducing the

need to maintain huge inventories at workshops.

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AFTER MARKET SECTOR

Mahindra & Mahindra has added a new business vertical - After-Market Sector for taking care of

the growing population of vehicles in India (6 million cars currently, expected to grow to 17 mil-

lion by 2015). There is vast untapped potential in the after-market space, covering multi-brand

used vehicles, servicing and spares which support this business ecosystem. This will create in the

organized sector, a business ecosystem which replicates the existing ecosystem for new vehicles.

The Business Units in the After-Market Sector includes:

• Mahindra First Choice Wheels Ltd. (Sale & Purchase of used Cars)

• Mahindra First Choice Services Ltd. (Multi-brand Service Chain)

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COMPANY PROFILE

HISTORY

OF

MAHIN-

DRA &

MAHINDRA AUTOMOTIVE

Mahindra & Mahindra (M&M) was established in 1945 as Mahindra & Mohammed. Later on,

after the partition of India, one of the partners - Ghulam Mohammad - returned to Pakistan,

where he became Finance Minister. As a result, the company was renamed to Mahindra &

Mahindra in 1948.

M&M started its operation as a manufacturer of general-purpose utility vehicles. It assembled

CKD jeeps in 1949. Over the passing years, the company expanded its business and started man-

ufacturing light commercial vehicles (LCVs) and agricultural tractors.

Apart from agricultural tractors and LCVs, Mahindra & Mahindra also showed its dexterity in

manufacturing army vehicles. Soon, it started its operations abroad, through its plants set up in

China, the United Kingdom and the USA.

M&M partnered with companies prominent in the international market, including Renault SA,

International Truck and Engine Corporation, USA, in order to mark its global presence. M&M

also started exporting its products to several countries across the world. Subsequently, it set up

its branches including Mahindra Europe Srl (based in Italy), Mahindra USA Inc., Mahindra

South Africa and Mahindra (China) Tractor Co. Ltd.

At the same time, M&M managed to be the largest manufacturer of tractors in India, by holding

leadership in the market of the country, for around 25 years. The company is an old hand in de-

signing, developing, manufacturing and marketing tractors as well as farm implements. It made

its entry to the passenger car segment in India, with the manufacture of Logan (mid-size sedan)

in April 2007, under the Mahindra Renault collaboration.

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Soon after the considerable success of Logan, M&M started launching a wide range of LCVs and

three wheelers as well as SUVs including Scorpio and Bolero. In the present time, Bolero has

gained immense popularity in India. It is one of the most opted vehicles in its class.

MAHINDRA SCORPIO

Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle

in India in 2002.

This SUV has redefined the expectations for the design of SUVs with its sturdy looks and power-

ful performance, the sophisticated interior design adds to the further glory to the appearance.

MAHINDRA BOLERO

Mahindra Bolero is one of the most successful and popular utility vehicle of the

Mahindra and Mahindra Group. The car is robust in appearance and it has been ele-

gantly designed, keeping in mind the conditions of the Indian roads.

Mahindra Bolero is also among the best fuel-efficient cars of India as the manufacturer has

equipped it with a 2500 cc diesel engine with5- speed transmission.

MAHINDRA RENAULT LOGAN

Much awaited Mahindra-Renault Logan has been launched in India. This compact sedan is a spa-

cious, practical and affordable vehicle. The outlook of Logan is impressive and the basic version

is a value for money, however the top-end versions are a bit high on price. The prominent feature

of this car is its performance, interiors and economy.

MAHINDRA XYLO

Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle (MUV) “Xylo” in In-

dia on January 13, 2009. The car boasts of having all the luxurious features that are seen in to-

day’s sedans, with the ample space of a utility vehicle. Xylo's muscular stance contributes to its

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commanding road presence. Fully packed with the latest features, the MUV is sure to impress In-

dian consumers and provide a stiff competition to the other vehicles within its class.

 

Performance Of Mahindra XYLO

Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel engine, which

generates a power of 112bhp @ 3800 rpm and a peak torque of 24 kgm @ 1800-3000 rpm. The

powerful engine is developed on the NEF CRDe platform and is mated to 5-gears manual trans-

mission. The car accelerates from rest to 60 km/h in just 5.8 seconds.

MILSTONE, AWARDS AND ACCOLADES

M&M’s 61st year was studded with a number of noteworthy achievements, presti-

gious prizes and glittering awards.

DUAL HONOURS FOR CHAIRMAN MR. KESHUB MAHINDRA

Chairman, Mr. Keshub Mahindra was awarded the “Business Visionary Award 2006” insti-

tuted by the National Institute of Industrial Engineering (NITIE), Mumbai.

Chairman, Mr. Keshub Mahindra was also awarded the prestigious IBS Kolkata Lifetime

Achievement Award for his ‘unparalleled contribution to industrial growth and social and eco-

nomic development of the community’.

The Institute of Chartered Financial Analysts of India’s (ICFAI) India Business School (IBS)

presented it, Kolkata, at the Strategy Summit 2007, held in Kolkata.

SLEW OF HONOURS FOR MR. ANAND MAHINDRA

Mr. Anand Mahindra, VC & MD, Mahindra Group, received a number of prestigious awards in

2006-07, including:

o The prestigious CNBC Asia Business Leader of the Year Award for the Year 2006 as well as

the CNBC TV India “Business Leader of the Year Award”.

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o The ‘CEO of the Year’ award at the India Brand Summit 2006 co-sponsored by Business

Standard and ITM Business School in association with Times Now and DNA newspaper.

o The LMA Entrepreneur of the Year 2006 award, instituted by the Ludhiana Management As-

sociation (LMA).

o The Most Inspiring Corporate Leader of the Year’ Award by NDTV Profit

o The NDTV Profit – Car & Bike Award 2007 for Automobile Man of the Year.

Mr. Anand Mahindra was also nominated as a Member of the Council of the Executive Com-

mittee of the National Sports Development Fund (NSDF) of the Govt. of India. He was featured

in the list of 50 Most Influential Indians in Business Week’s edition dated August 13, 2007

HIGHEST CRISIL RATING FOR M&M

M&M has received the highest Governance & Value Creation rating, CRISIL GVC Level - I

from CRISIL for the ability to create value for all stakeholders, while adopting sound corporate

governance practices.

DUN & BRADSTREET AMERICAN EXPRESS CORPORATE AWARDS 2006

Mahindra & Mahindra was rated as the leading Indian company in the Automobile - Tractors

sector in the ‘Dun & Bradstreet – American Express Corporate Awards 2006’. The Automobile

Sector comprises of three categories – Passenger Vehicles, Commercial Vehicles and Tractors.

These awards recognize the virtues of size and growth in the awards methodology. M&M ranked

No. 1 in these two segments in the premier Dun & Bradstreet India publication, India’s Top 500

Companies 2006.

MAHINDRA RECEIVES AMITY HR EXCELLENCE AWARD

Mahindra & Mahindra was honored with the Amity HR Excellence Award at the Fourth Amity

Global HR Summit 2007 held at the Amity International Business School, Noida. The Amity HR

Excellence Award recognized Mahindra as one the most admired companies across the global on

account of its innovative strategies for Human Resources Management and Development.

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GLOBAL HR EXCELLENCE AWARD FOR M&M

Mahindra & Mahindra won the Global HR Excellence Award for Innovative HR practices (Man-

ufacturing Sector), in the Asia Pacific HRM Congress, held in Mumbai. These awards recognize

organizations and individuals who have embraced change, encouraged constructive challenges

and demonstrated entrepreneurial skills in the corporate world.

M&M WINS BOMBAY CHAMBER GOOD CORPORATE CITIZEN AWARD

2006-07

M&M was presented with the coveted Bombay Chamber Good Corporate Citizen Award 2006-

07 at a glittering ceremony held to celebrate the Chamber’s 172nd Foundation Day on September

21, 2007. Mr. Bharat Doshi, Executive Director, M&M Ltd. and Mr. Rajeev Dubey, Member of

the Group Management Board and Chairman, Mahindra & Mahindra CSR Council, received the

award on behalf of the company.

This Award recognizes and honors conspicuous achievement by corporate organizations by way

of service to the civic community, in addition to outstanding operational performance. It takes

into account several parameters, including Business Performance, Corporate Interests, Employee

Welfare, Customer and Stakeholder Satisfaction and Social Investment.

GOLDEN PEACOCK AWARD FOR EXCELLENCE IN CORPORATE

GOVERNANCE

Mahindra & Mahindra won the coveted Golden Peacock Award for Excellence in Corporate

Governance 2006. This award validates the company’s ‘Best-in-Class’ corporate governance

practices and reflects its transparent and ethical dealings with stakeholders across the entire value

chain. It recognizes the Management’s commitment to the highest standards of corporate conduct

and its commitment to Corporate Social Responsibility as a distinct activity that helps build com-

mendable social values and adds to the ethical fiber of the organization.

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BEST AUTOMOTIVE MANUFACTURING SUPPLY CHAIN EXCELLENCE

AWARD

Mahindra & Mahindra has been awarded as the organization with the “Best Automotive

Manufacturing Supply Chain Excellence”. The awards were presented by India Times Mind-

scape (Times of India Group) along with the Business India Group at the Express, Logistics &

Supply Chain Awards held in Mumbai on September 28, 2007. A. C. Neilson is accredited with

the research for the award nominees and winners.

HIGH RANKINGS FOR MAHINDRA

M&M was ranked second in the prestigious e Most Trusted Car Company in India study con-

ducted by TNS. M&M scored 127 points, just seven points below the top ranking company, ac-

cording to a TNS communiqué.

➢ M&M was ranked 14th in The Economic Times prestigious ‘ET 500’ list of top achieving companies in India. The company has moved up four ranks from last year. To quote from the ‘ET 500’ write-up: “M&M’s ‘art-to-part’ strategy of diversification into the auto parts value chain and its plans for new platforms for utility vehicles and joint venture with Re-nault for Logan have led to a gain in ranks.”

➢ M&M was ranked 22nd in Business India’s annual survey of the country’s top companies - Super 100

➢ M&M was ranked 31st in Business Today’s annual survey of India’s most valuable com-panies.

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MILESTONES of M&M

MILESTONES OF MAHINDRA AND MAHINDRA

YEAR ACHIEVEMENTS• 1947 In October, the first batch of 75 Utility Vehicles (UVs) imported in CKD

condition from Willys overland Export Corporation.• 1949 Lease of 11,071 Sq. yards at Mazagaon from British India Steam naviga-

tion. The first Willys Overland Jeep built in India at the Assembly Plant , Maza-gaon, Bombay (now Mumbai).

• 1954 Manufacture of Vehicles undertaken in collaboration with Kaiser Jeep Corporation and American Motors Corporation.

• 1962 Indigenous content of Jeep goes up to 70 per cent. To centralise manufac-turing operations, 137 acres of land purchased at Kandivli.

• 1965 FC 150 Petrol Trucks introduced.• 1967 Two wheelers drive Utility Vehicles introduced. The 101" wheel base and

Metal Body UVs introduced. Indigenous content goes up by 97 per cent.• 1969 The start of vehicles export. Export of total 1200 UVs along with spare

parts to Yugoslavia. Exported also to Ceylon, Singapore, Philippines and Indone-sia.

• 1970 The contracts to export of 3304 vehicles, mainly to Yugoslavia and In-donesia concluded.

• 1974 Maxi miller campaign launched for the conservation of fuel. CJ 4A was introduced with new transmission and axle ratio. Collaboration agreement with Jeep corporation (subsidiary of AMC, Detroit).

• 1979 The Government of India approves in principle, technical collaboration with Peugeot (France) for the manufacture of XDP 4.90 Diesel Engine.

• 1981 The Nasik Trucks Assembly Plant and Peugeot Engine Assembly Plant at Ghatkopar inaugurated. NC 665 DP Mini Truck rolls out from Nasik Assembly Line.

• 1983 FJ 460 model was introduced with 4-speed gearbox. Engine plant at Igat-puri formally inaugurated by Mr. Jean Boillot, President of Automobiles Peugeot of France for the manufacture of 25,000 Peugeot and Petrol engines.

• 1985 The New Mahindra Vehicle-MM 540 was launched in Bombay. NC 640 DP with 4 speed gearbox and Mahindra MM 440 was introduced.

• 1986 CJ 640 DP Vehicle introduced. • 1987 MM 540 DP metal Body Wagonette introduced.• 1988 M&M signed a MoU with Hyderabad Allwyn Nissan Limited to form

Mahindra Nissan Allwyn Ltd., as its associate company with LCV operations in Andhra Pradesh.

• 1989 The CJ 340 DP model was introduced. M&M and Peugeot announced their tie up for the manufacture of Peugeot 504 pickup truck, BA 10 gearboxes

16

and latest XD 3 diesel engines. M&M acquired automotive pressing unit at Kanhe, from Guest Keen Williams Ltd.

• 1991 Introduced CJ 500 DI model with MDI 2500 A direct injection diesel en-gines. M&M bags order to export 10,000 CKD kits. Commander range of mod-els: 650 DI, 750 DP/HT were also launched with tremendous market response.

• 1993 The Mahindra Armada was launched• 1995 Mahindra Nissan Allwyn Ltd. (MNAL) was merged with M&M and Za-

heerabad LCV operations becoming part of Automotive Sector. FJ series of LCVs were shifted from Nasik to Zaheerabad. Igatpuri Engine Plant received ISO 9002 certificate.

• 1996 The new LCV model Cabking DI 3150 & Mahindra Classic vehicles were launched. New Commander 5 Door Hard Top introduced.

• 1997 Commercial production of the Ford Escort commenced at Nasik Plant. Li-cense & Technical Assistance Agreement signed with Mitsubishi Motors Corpo-ration for Manufacture of SL Body at Zaheerabad (Voyager with XD 3 and BA 10). Kandivli and Nasik plants received ISO 9002 certificate from RW-TUV.

• 1998 Die shop Inauguration at Nasik Plant 2-8/8/97. Voyager was launched by the Chairman at Zaheerabad Plant on 12/11/97

17

PROD

UCT PROFILE

18

BOLERO VARIANTS

Scorpio SLXFeatures and Specification

Make Mahindra

Model Scorpio

Variant SLX

Body Type SUV

No. of Doors 5

Fuel Efficiency:

City Mileage 9.4 kmpl

Highway Mileage 12.4 kmpl

Fuel Capacity 60 liters

Fuel Type Diesel

Fuel Grade -

Engine Parameters:

Displacement 2523cc

Bore -

Stroke -

Cylinder Configuration 4 inline

Valve Gear Operation -

Compression Ratio -

No. of Valves 8

Aspiration Turbo Charged

Fuel System DI

Horse Power 63.12@3200 ps@rpm

Torque 180@1440 Nm@rpm

19

Steering and Suspension

Steering Type Rack and pinion, power assist

Power Steering Yes

Front Suspension Independent with coil spring

Rear Suspension Leaf spring

Dimensions:

Length 4056 mm

Height 1880 mm

Width 1660 mm

Wheel Base 2680 mm

Clearance 200 mm

Front Head Room Min: 60mm Max: 60mm

Rear Head Room Min: 60mm Max: 60mm

Rear Leg Room Min: 74mm Max: 94mm

Krebs Weight Min: 1615kg Max: 1615 kg

Drive Train

Type Manual

Gears 5

Drive Line RWD

Comforts Features

AM / FM Radio Present Except AM / FM radio there is no other comfort is provided.

Safety: There is no safety feature included in Bolero SLX including antitheft system etc.

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Scorpio SLEFeature and Specification

Make Mahindra

Model Scorpio

Variant SLE

Body Type SUV

Number of Doors 5

Fuel Efficiency:

City Mileage 9.5 kmpl

Highway Mileage 13.2 kmpl

Fuel Capacity 60 liters

Fuel Type Diesel

Fuel Grade -

Engine Parameters:

Displacement 2523cc

Bore -

Stroke -

Cylinder Configuration 4 inline

Valve Gear Operation -

Compression Ratio -

No. of Valves 8

Aspiration Turbo Charged

Fuel System DI

Horse Power 63.12@3200 ps@rpm

Torque 180@1440 Nm@rpm

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Steering and Suspension

Steering Type Rack and pinion, power assist

Power Steering Yes

Front Suspension Independent with coil spring

Rear Suspension Parabolic Leaf spring

Dimensions:

Length 4056 mm

Height 1880 mm

Width 1660 mm

Wheel Base 2680 mm

Clearance 180 mm

Krebs weight Min: 1615kg Max: 1615 kg

Gross weight -

Drive Train

Type Manual

Gears 5

Drive Line RWD

Comfort Features

Air-Conditioning Yes

Except Air conditioning, no other comfort features are present in the Scorpio SLE.

Same as SLX no safety features are present in the Scorpio SLE.

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Scorpio DIZFeature and Specification

Make Mahindra

Model Scorpio

Variant DIZ

Body Type SUV

Number of Doors 5

Fuel Efficiency:

City Mileage 9.5 kmpl

Highway Mileage 13.2 kmpl

Fuel Capacity 60 liters

Fuel Type Diesel

Fuel Grade -

Engine Parameters:

Displacement 2523cc

Bore -

Stroke -

Cylinder Configuration 4 inline

Valve Gear Operation -

Compression Ratio -

No. of Valves 8

Aspiration -

Fuel System DI

Horse Power 63.12@3200 ps@rpm

Torque 137.5@2000-2500 Nm@rpmSteering and Suspension

Steering Type Rack and pinion, power assist

23

Power Steering Yes

Front Suspension Independent with coil spring & anti roll bar

Rear Suspension Parabolic Leaf springs

Dimensions:

Length 4056 mm

Height 1880 mm

Width 1815 mm

Wheel Base 2680 mm

Clearance 200 mm

Boot -

Krebs weight Min: 1615kg Max: 1615 kg

Gross weight 5.4 kg Drive Train

Type Manual

Gears 5

Drive Line RWD

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SCORPIO DIFeature and Specification

Make Mahindra

Model Scorpio

Variant DI

Body Type SUV

Number of Doors 5

Fuel Efficiency:

City Mileage 10.7 kmpl

Highway Mileage 12.9 kmpl

Fuel Capacity 60 liters

Fuel Type Diesel

Engine Parameters:

Displacement 2523cc

Bore -

Stroke -

Cylinder Configuration 4 inline

No. of Valves 8

Aspiration Turbo Charged

Fuel System DI

Horse Power 63.08@3200 ps@rpm

Torque 180@1440 Nm@rpm

Steering and Suspension

Steering Type Rack and pinion, power assist

25

Power Steering No

Front Suspension Independent with coil spring

Rear Suspension Leaf springs

Dimensions:

Length 4260 mm

Height 1810 mm

Width 1815 mm

Wheel Base 2680 mm

Clearance 183 mm

Front Head Room Min: 60mm Max: 60mm

Rear Head Room Min: 60mm Max: 60mm

Rear Leg Room Min: 74mm Max: 94mm

Krebs weight Min: 1615kg Max: 1615 kg

Drive Train

Type Manual

Gears 5

Drive Line RWD

Comfort Features

Air-Conditioning Yes

Except Air conditioning, no other comfort features are present in the Bolero SLE.

Same as SLX no safety features are present in the Bolero SLE.

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Dehradun Premier motors (PVT) LTD.

Our Distinction:This is one of the largest authorised dealers for Mahindra & Mahindra in Uttarakhand

Partners in Progress: We are the preferred partners of M&M automotive, chiefly due to our successful sales record

and quality. Our facilities have remained unsurpassed, as we strive everyday to better our self.

Commanding Presence: Premier motors as a centralised air-conditioned showroom of its kind in Uttarakhand, spread

gracefully and decorated elegantly over an impressive 2500 sq.ft at Dehradun, Being equipped

with affable front office staff and adept professional technicians, Provide a perfect of quality Ser-

vice and Reliability.

Space Friendly:The interiors are aimed at making you feel completely at ease, In luxury. Because for us the cus-

tomer is king, one who deserves a regal offering. The setting is apt for times when you need to

switch into a relaxed state of mind.

Technology to Stay Ahead: We are equipped with the latest technological advancement in the industry, in order to give the

best of services when it matters. Not just to be part of, But to build the future, is our motto.

Ambience the Exude Relaxation:Ours is one of the few service centres to be equipped with a fully-fledged customer-waiting

lounge. A part from a television and pool table, it had a wed kiosk to keep u connected all the

time.

Service with Commitment:Our dedicated team of mechanical specialty offers expert treatment for your vehicle. We ensure

consistency in performance each time, without fail.

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Attention to Details:We provide genius spare parts and accessories to ensure exceptional performance. Every single

aspect related to your vehicle is taken care of at our premises.

Dealing Made Convenient: It is a part of our commitment policy to give advantage to the customer at every juncture. We of-

fer assistance of every kind at our premises itself, which makes it a one stop facility.

Expert Guidance at Every Step:Our sales team gives utmost priority to your satisfaction. When you need help to make the right

choice, it is ensured that the result is beyond your expectations. Thus making it a point that you

get the best in both luxury and comfort always.

Models:Mahindra & Mahindra has been launching various type of MUVs and cars from the year of 1945,

keeping in mind the quality, design, driving, comfort, fuel efficiency, and service and resale

value. These from a formidable force that gives our customers the pride and the joy of value for-

ever. What drives M&M is

➢ Commitment➢ Leadership ➢ Any an eye for appropriate technology.

Since 1945, when M&M first began manufacturing MUVs & LCVs, M&M have been engaged

in a single-minded endeavour to bring you cars that only state-of-the-art, but are also some f the

most environment-friendly vehicles in this world-a reflection of our commitment and care, for

better environment.

At the heart of every M&M is a unique engineering and an optimal mix of power and economy.

All this is supported by M&M nation – wide dealership network and automated workshop that

provide excellent after sale service

The company has constantly exploring new opportunity to define the shape to tomorrow’s driv-

ing technology.

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Promotional Activities:The promotional activities adopted by premier motors are

a. Test Driving b. Free Drivingc. Hoardingd. Discountse. Advertisement in Newspaper and magazinesf. Gift Schemesg. Free Servicesh. Mileage Contents

Promotional expenses have been borne by both Dehradun premier motors and M&M, shares in

advertisement cost.

Service Offered:Six Service and paid service after sale of Cars.

Free checkups campaignsFinance through bankDemonstration for new productsAcceptance of warranty claims

Working Time in Dehradun premier motors :Working hours in premier motors are 12 hours per day starting from 9:30 am to 9:30pm with

one-hour break for lunch and 15 minutes for evening tea and coffee.

29

INTRODUCTION TO STRATEGY

M&M- MARKETING STRATEGY FOR SCORPIO.

Introduction:Today most international car manufacturers have entered the Indian market. India is the second

largest two wheeler manufacturer in the world an also the second largest tractor manufacturer. It

is also the 5th largest commercial vehicle manufacturer and 3rd largest car market.

Mahindra & Mahindra Limited is a major automobile company in India. It was setup

in 1945 to make general purpose utility vehicles for Indian market. The company has started a

separate sector, Mahindra Systems and Automotive technologies (MSAT) in order to focus on

developing components as well as offering engineering services. Now, branched out into manu-

facturing of agricultural tractors, and also light commercial vehicles. The company constantly

manufactures its range of vehicles, whilst researching and developing new products. The more

diversified parts of the business have been spun-off as separate business entities, and activities

organized under various business groups. These groups now cover a wide range of markets: au-

tomotive, farm equipment, financial services, infrastructure and development, IT and automotive

components. M&M's automotive division is in the business of manufacturing and marketing util-

ity vehicles and LCVs. It has a market share in excess of 50% in this segment and manufactures

the Scorpio SUV range.

Situation Analysis: Utility vehicles are rapidly capturing the market due to its multifarious use. Util-

ity vehicles are found in two kinds: - SUV or Sports Utility Vehicles and MUV or Multi Utility

Vehicles. Its spacious interior and sturdy exterior have made this vehicle one of the fastest sell-

ing vehicles of India. This is multi use vehicle to accommodate many passengers in one vehicle,

especially while going for a long trip with a big family or with a folk of friends. Sporty attributes

of this vehicle is not negligible when mentioning about its use. To name few SUV manufacturers

of India- Fiat India, Ford Motors, Force Motors, General Motors, Hyundai Motors, Hindustan

Motors, Mahindra & Mahindra, Porsche, Tata Motors, Toyota motors etc.

Though the SUV market is very small, Anand Mahindra, Vice- Chairman and Manag-

ing Director, Mahindra & Mahindra says, "The very reason the SUV segment is small is because

30

there are very few offerings in the segment. The Scorpio is going to help grow the segment in In-

dia." Mahindra saw that India’s pot-holed roads, difficult terrain and great distances — often

held up as the country’s disadvantages — were actually great strengths for an SUV maker. Im-

provement in road networks and reduction of excise taxation encouraged sales of cars among the

young population. They choose to enter the market when there was very little product develop-

ment and when all the suppliers were hungry for business.

Customers: A study conducted to understand the UV customer by an advertising agency

‘Interface communication’ revealed the following criteria for customer buying process:-

• Customers preferred bid size as it stands for status.

• They seek latest technology

Competitors:

There has been an increasing demand for UVs

with 18% growth .In 2004, Toyota was the major

player in the SUV segment, with sales of 31,898

units of its Qualis Local players included Tata’s

Sumo and Safari and then the M&M’s bolero and

Scorpio.GM launched its Chevy Tavera, an SUV

that competed directly with Scorpio with sales of

2700 units in three months.

Context: In late 1990s Mahindra, a leader in UV segment was fast witnessing loss of market

share. Global players were entering the auto market and aggressively launching products. The

Mahindra image was a barrier as well. Though it had positives as rugged, tough, reliable, eco-

nomical vehicle. The negative parameters were that it was uncomfortable, rough, not easy, rural

imaginary, down market etc.

Hence they decided to launch a product with the following objectives:

• To create new segment and retain market domination.

• To differentiate offering my providing an excellent value proposition.

• To optimise project costs.

• Providing low cost transportation rate to rural and semi urban market.

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• To develop strong presence in urban market with VFM product.

• To compete with global players.

M&M products, such as the Scorpio and its smaller cousin Bolero, are now competing effec-

tively with foreign competition at home. The automotive division, which makes utility vehicles

(UVs) and SUVs, now contributes 61 per cent to M&M’s revenues. Of the 288,601 UV/SUVs

sold in India in the year up to March 2008, 148,761 or 51.6 per cent were M&M vehicles and

39,935 of these were Scorpios.

32

STP analysis:

M&M has established it self in many divisions such as the automotive sector, Farm equipment

sector ,IT sector etc.M&M has fashioned a three-pronged strategy for the automotive sector —

passenger cars, commercial vehicles and utility vehicles. The Mahindra Group’s Automotive

Sector is in the business of manufacturing and marketing utility vehicles and light commercial

vehicles, including three-wheelers. It is the market leader in utility vehicles in India since incep-

tion, and currently accounts for about half of India’s market for utility vehicles. Although created

in 1994 following an organizational restructuring, the Automotive Sector can trace its an-

tecedents back to 1954. The iconic jeep that led American G.I.s to victory in World War II is the

very same vehicle that drove the Mahindra Group to success in the Automotive Sector. Mahindra

& Mahindra Limited, the flagship company of the Group, was set up as a franchise for assem-

bling general purpose utility vehicles from Willys, USA. Over the years, the Group has devel-

oped a large product portfolio catering to a diverse customer base spanning rural and semi-urban

customers, defence requirements and luxurious urban utility vehicles. In 2002, it launched the in-

digenously engineered world-class sports utility vehicle-Scorpio, which bridges the gap between

style and adventure, luxury and ruggedness, and performance and economy

Scorpio belonged to the SUV. M&M further believes that the target segment and

pricing for the Scorpio will ensure that it is not only competing with other utility vehicles in the

segment, but also with the mid-size car segment (priced in the Rs 5-7 lakh range), which includes

the likes of the Ford Ikon, the Opel Astra, and even cars such as the Fiat Palio (the upper-end

model). Although, M&M remains a leader in the domestic UV segment, it has been steadily los-

ing market share to the likes of Tata Engineering (with the Sumo and Safari) and Toyota (with

33

Qualis) over the past few years. Further, there is more competition coming up in the segment

with the likes of Suzuki (with Grand Vitara) and Hyundai (with its Terracan) among others set to

enter the market this year. However, M&M is confident that the Scorpio's value-for-money

proposition will make it score vis-à-vis the competition. While both the Terracan and Vitara are

expected to be priced in the Rs 13-18 lakh range, the Scorpio is priced even lowe than its current

competition.Its target customers were life style oriented customers. The value proposition stated

‘the vehicle that provides luxury and comfort of a car and, adventure and thrill of a SUV.’ The

launch also marks a paradigm shift in the company's strategy in terms of design, spends, as well

as focus. n fact, the very development of the product has been a success in its own right. It took

M&M Rs 600 crore, six years, a small team of 120 people and 74 prototypes to finally launch the

indigenously developed Scorpio. The company has also sourced the best of available technology

from across the globe - ranging from the likes of Renault (for the petrol engine), Visteon, BEHR,

Meritor and so on. When Scorpio hit the streets, it arrived as an SUV with a `car plus' package.

Two-and-a-half years later, it has caused a paradigm shift in its category. Equipped with a savvy

marketing strategy, the brand has not only grown the SUV market, but almost touched base with

the `C' class cars segment (Rs 5 lakh and upwards.)

“We believed that we had a shot at being a niche global player in SUVs,’’ says Mahin-

dra, who recently bid against Tata Motors to buy Jaguar and Land Rover. Mahindra saw that In-

dia’s pot-holed roads, difficult terrain and great distances — often held up as the country’s disad-

vantages — were actually great strengths for an SUV maker. “If a vehicle could go in India, it

could go anywhere,” he says. “We made go-anywhere vehicles for the army. It was a readymade

global positioning.”

According to automobile manufacturers' data, the premium utility vehicle segment

grew at approximately 14 per cent up to June 2002. Unlike for its competitors in the UV cate-

gory, people who wished to purchase a C class car would also consider a Scorpio," says Hor-

mazd Sorabjee, Editor, Autocar India. Cut to market expansion of premium utility vehicles

against `C' class cars. Out of the total number of premium utility vehicles and `C' segment cars

put together, premium UVs accounted for about 21 per cent during the year 2000. The figure

touched 49 per cent this year. The Scorpio launch did play a significant role in driving the UV

market up. This to me is the ultimate measure of success - the ability of a company to drive the

34

growth of markets. Marketing gurus suggest that the positioning of Scorpio was also very bold

and innovative.

The easiest temptation for M&M would have been to position Scorpio as a `better-looking SUV'

or `a rugged, yet good-looking SUV' in sync with its tough vehicle pedigree. But this would have

made Scorpio a prisoner of the category, and it would have had to compete with other players in

the category. This also would have restricted the growth of the category by itself.

"The `car plus' approach is indeed very innovative and bold. Bold, because it goes against the ex-

isting frames of reference of customers and hence the need to create new frames of reference,"

elaborates Koshy.

The new frame of reference also had a distinct brand strategy associated with it. It all started in

1997, when M&M set up Project Scorpio in quest for new markets. As much was written about

the project, the brand name Scorpio had built enough equity. Internal research showed that Scor-

pio featured in the top two suggested names.

Since the name was reasonably accepted, the company plumped for `Scorpio from Mahindra'.

"Those were the years when there was instability in the automobile sector, especially after the

Daewoo fallout. `Scorpio from Mahindra' was the shadow endorsement strategy used to endorse

stability in these times," explains Rajesh Jejurikar, Executive Vice-President (Marketing &

Sales), Automotive Sector, M&M Ltd.Earlier, M&M did not have the right to use the name Scor-

pio as it was originally a Ford brand name for a sedan. The company, however, got approval

from the latter to use the name, except in certain European markets. Says Jejurikar, "The product

will cut across all geographical segments. We are targeting it at both the urban as well as rural

consumer. The Scorpio will be positioned as a value product targeted at the young, demanding

male."

Marketing implementation:

Product: The design moment of the Scorpio was also the defining moment for M&M as a company and

brand. It changed the way M&M saw itself in the mirror — overnight. It was a classic case of a

product defining a strategy instead of the other way around. The Scorpio inspired M&M to em-

brace new strategies that would transform the company from a mere tractor and soft-top vehicle

maker into a brand-conscious yuppie of the corporate world. Today, the gently greying Mahin-

dra, who once wanted to make films, not automobiles, has proved adept at steering his over Rs

35

10,000-crore Company through this change. Between July 2003 and January 2004, the brand was

subjected to new product developments. Quieter engines were introduced after adopting the

chain drive engine system. The seats were improved, and the new two-toned look was devel-

oped. Recently, Scorpio installed a Common Rail Diesel engine to meet the BS III auto emission

norms

As the product development took off, a phased communication strategy was plotted for the

brand. During the first phase, the need to deal with issues such as lifestyle imagery was identified

by the Mumbai-based advertising agency Interface Communications. As a result, the television

commercials depicted the product and a pan-global imagery, even as the print advertisements fo-

cused on functional benefits. So one got to see copies like `Car you walk into, and not crawl into'

across newspapers.

"In phase two, we did not change the television campaign, but our print creative were centered

on communicating new product developments," says Jejurikar. Mahindra claims that the new

Scorpio is built around customer's needs. 45 months of market research and a few customer out-

reach programs later, they seem to be on the right track. The legroom complaints have been

taken care of with middle row seats that slide. They've also got new vents up front on the dash

that I couldn't really figure out and angular aircon vents at the rear, so the third row isn't left out.

If you're not satisfied with it, don't sweat, as you can also fit a split air conditioner like the one

you find in other big SUVs at any Mahindra dealership.

The third phase of communication was released in July 2004 when the automotive giant focused

on the `car plus' statement. What followed was a series of advertisements focusing on people and

lifestyle rather than the product.

Brand: A recent brand equity study conducted by IMRB International ranked the Scorpio in the highest-

level of its construct, the `Olympic' category. An Olympic brand is one that is "well-known,

well-loved and has a large core following”. The results are based on a research conducted by

IMRB using Millward Brown's Brand dynamics model, an internationally recognized brand eq-

uity measurement tool.Mr Vivek Nayer, Vice-President - Marketing, Automotive Sector, M&M,

said, "Scorpio is the only four-wheeler in its class in India to have achieved this, which speaks

volumes of the customers' faith in the brand.

36

Pricing: It adopted a penetrative pricing strategy. Its competition with accent, ikon, Qualis, Tata sumo.

The second is the pricing strategy. M&M's aggressive pricing strategy appears to hinge on the

promise of viable volumes for the Scorpio in the initial period. Pricing for the Scorpio will en-

sure that it is not only competing with other utility vehicles in the segment, but also with the

mid-size car segment (priced in the Rs 5-7 lakh range), which includes the likes of the Ford

Ikon, the Opel Astra, and even cars such as the Fiat Palio (the upper-end model).

The pricing strategy of Scorpio was definitely penetrative, especially when it lured the C seg-

ment buyers, and caught the fancy of the B segment buyers. The ability of any company to play

the price game is a function of cost competitiveness, explains IIM's Koshy. In this specific case,

lower price needs to be looked at as `invitation' price for the basic version while there are others

who buy these kind of vehicles seeking a fully loaded version. The Mumbai ex-showroom prices

vary from Rs 6.52 lakh to Rs 7.01 lakh.”M&M is not betting on playing the price game in this

market. I think that the company is certainly into the image game. Price therefore is more a tacti -

cal element and not a strategic vehicle," elaborates Koshy. The pricing could be on higher range

because at the time of launch, people were willing and able to obtain loans, increasing accept-

ability of using financing to purchase vehicles.

Promotion:Prior to Scorpios launch, the team held a press-driven event in June 2002 to sell the positives of

the car to auto experts and journalists. The event created publicity for the functional elements of

the car and its attractive price point, leaving the television advertisements to sell the yuppie im-

age.

"All Scorpio advertisements show the vehicle in urban settings driven many times by women

conveying the message of "ease of driving." Unlike competitors' advertising strategy, no imagery

of off-road settings and `wilderness' or `break-free' connotations were depicted," says IIM's

Koshy.Other international majors are battle scarred in other markets. All of them have capabili-

ties to compete with the best anywhere. But what Scorpio did was alert all of them that nothing

but the best will do in the Indian market too. "Is it not interesting that the tag line of Scorpio TV

ads says `nothing else will do'

For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote the

new avatar of Scorpio. Created by Interface Communications, the mass media campaign includes

37

a series of press advertisements and a television commercial. As for the rationale behind the re-

launch of Scorpio, says Mahindra & Mahindra Ltd executive vice-president (marketing & sales)

Rajesh Jejurikar: “After conducting an extensive market research (with AC Nielson), we up-

graded our existing model with new features. However, the positioning of the brand will remain

the same so the ad line will continue to be the same—‘Nothing Else Will Do.’”

The company plans to focus on press ads to highlight the new features and improved fuel effi-

ciency of the upgraded version of Scorpio. “To support mass media advertising, we’ll be hosting

road shows and ground promos. Till now we have sold over 20,000 Scorpios since we launched

this brand. With this improved version, we will phase out the old brand,” he adds.

In addition, Mahindra & Mahindra has recently launched a nationwide talent search programme

titled ‘Scorpio Speedster With Timex’ in 10 cities across the country. Through this initiative, the

company plans to strengthen Scorpio’s brand positioning of being a youthful and sporty SUV,

says Mr. Jejurikar. Among other initiatives the company plans to increase the vehicle's appeal in-

cludes the Top Gear Club (which will offer a whole range of value-added services for Scorpio

consumers). M&M has also started a toll-free `Scorpioline' to deal with customer queries regard-

ing the vehicle. Further, the company has launched dealer up gradation programs, in which the

showrooms (which will showcase the Scorpio) have been redesigned and given a trendy look.

Says a company official, "The M&M showrooms across India now share the Scorpio's brand per-

sonality - sporty and technologically advanced. We plan to set new service paradigms through

our dealer network."

Place: The dealership roll-out will be conducted in three phases. In the primary phase, approximately 45

dealerships will be covered.” The Scorpio predecessor, Bolero, (which had earlier replaced the

Armada) will not be discontinued. However, it is with the Scorpio that M&M hopes to find a

foothold in the export markets.

The company will be rolling out the Scorpio in two phases outside India. Says Pawan Goenka,

Executive Vice-President, Product Development, "In the first phase, we will be looking to roll

out in markets such as Indonesia, Russia, South Africa. We are expecting approximately 15 per

cent of the sales for Scorpio to come from overseas."

According to company officials, M&M will be following a different strategy in each of these

countries based on local conditions. Says a company official, "There can even be the possibility

38

that the Mahindra brand name may not be used for marketing the vehicle in certain countries de-

pending on the market characteristics. The focus will be on selling the vehicle." Meanwhile, the

company feels the Scorpio will attract the price conscious consumer even in these highly com-

petitive markets. M&M has already inked a tie-up with the Sun Group in Russia, and is in talks

for similar tie-ups in Indonesia and Malaysia. Says Jejurikar, "The UV market overseas is huge.

For instance, in Indonesia it forms 80 per cent of the entire market, while the Asia average is

about 40 per cent. In India, the figure currently stands at about 15 per cent." Distribution strategy

was to serve fewer markets but to serve them all. It had a phased launch, showroom exp and in-

frastructure.

The Scorpio would continue to sell for many more years even though new vehicles bearing the

Mahindra brand may unseat it from its lofty perch. But none of them are likely to be an avatar

that would consume the company the way the Scorpio did. NEW DELHI, Enthused by the grow-

ing popularity of its latest offering Scorpio in the metros, M&M is preparing to drive the sports

utility vehicle to the semi-urban towns.The firm has already chalked out marketing plans for

these smaller towns, where the Scorpio is slated to sting competition by October this year. It is

also readying plans to introduce more variants on the Scorpio, V-P (automotive sector) Rajesh

Jejurikar said. “We will look at feeding these markets with only the diesel version...We will start

with Alwar and Aligarh in the north, Hubli and Trichi in the south and Raipur in the west. Then,

we will gradually expand reach into these towns,” Jejurikar said.

“With the rains having started in some parts, we can move ahead with debuting the Scorpio in

these towns,” he added. The firm has targeted to introduce the Scorpio in around 45 towns by

December this year. However, there are no immediate plans to introduce a soft-top version of the

vehicle in these markets. Soft-top vehicles are in high demand in the semi-urban and rural towns,

where vehicles of the size of Scorpio are generally used for transport purposes. Other options in-

clude a pick-up version for overseas.

Creating value, Extracting value and Sustaining value:

‘Value for money’ was their main criteria to serve the customers. But more than anything, the

company is banking on the Scorpio to bring about a change in image and perception about the

company. Often dubbed as a company which makes sturdy vehicles for the rural markets, the

Scorpio could give M&M a new lease of life. The launch also marks a paradigm shift in the com-

39

pany's strategy in terms of design, spends, as well as focus. Scorpio has topped the charts of both

customers and non-customers. While the TNS Automotive Customer Satisfaction voted Scorpio

as the best SUV after Toyota Qualis, the Indicus Customer Study registered the perception of the

brand among people at large.

Mahindra claims that the new Scorpio is built around customer's needs. 45 months of market re-

search and a few customer outreach programmes later, they seem to be on the right track. The

legroom complaints have been taken care of with middle row seats that slide. They've also got

new vents up front on the dash that I couldn't really figure out and angular aircon vents at the

rear, so the third row isn't left out. It’s with high-tech features, great looks, great mileage in its

class, good interiors.

According to Delhi-based Indicus Consumer Tracker, an independent brand-tracking firm, its

study conducted in January this year revealed that 3.8 per cent of the 3,690 sample size recalled

the Scorpio ad while 2.2 per cent recalled the brand, and 1.8 per cent switched to the brand. The

figures seem diminutive, but when extrapolated on to a larger universe of product categories,

they tell a different story.

In terms of total number of units sold in the passenger vehicles segment,

SUV holds a very small mind share, and yet Mahindra Scorpio is the only SUV brand that gar-

ners both brand and ad recall across the sample size. "Scorpio is among the only three main car

sub-brands whose ad and brand recalls are higher than the master brands The track monitors

`high value' consumers, and registers those who are in the SEC A and B categories, while 67 per

40

cent of the sample size is from the top eight metros; the rest from the next 50-60 towns across

India.

Sales too have been zooming, says the company. According to brand-wise data,

the company claims to be matching sales of most C segment cars, even outselling some of them.

In the last six months, M&M sold 14,389 Scorpios, against a total C segment sales of 79,346, ac-

cording to company data.M&M is also attempting innovative strategies on the digital turf, and is

currently eyeing gaming as a means to promote the brand. So, the client-agency team is toying

with the idea of game called `turbanator' for the mobile gaming fraternity.

Scorpio achieved its targets on market share and achieved volumes of 12000 vehicles sale in the

first 9 months of its launch. Scorpio advertising had a very high recall for the Mahindra brand as

well as product.Advertizing also positioned Scorpio as a powerful vehicle with a sporty look.74

vehicles were built only for testing. They used simultaneous testing and examining process. The

product was put through NOVA-C(New overall vehicle audit-customer) system to measure the

overall quality of the production process. A world class manufacturing setup was spread over

120 acres with a capacity of 40,000 units annual on a shift basis. It was more flexible in terms of

partners. The company looked east instead of west for cheaper components and allowed cus-

tomers to choose their own collaborators.

To reduce costs, Goenka contracted manufacturing to companies that had technology but had

never been given the chance to prove it. For instance, South Korean suspension maker Samlip

had never designed the full suspension system for a vehicle but M&M entrusted it with that task.

Another South Korean company, Wooshin Systems, that had also never done a full body shop

41

design, did the body jigs and fixtures. But such moves stood M&M in good stead. Its once-small

suppliers have become global players and M&M has found itself possessing a world-class supply

chain. The impact on Mahindra image:

o Well respected manufacturers

o Technologically advanced

o Suitable for city driving

o Makes VALUE FOR MONEY vehicles.

o Proud to own.

The revenue of company increased about 37% in a year and the PBIT about 47%.Their share

prices also increased .The overall positive opinion about Mahindra increased by 18% among

SUV owners and 11% among all car owners.

Sustainability:• Mahindra have been practicing Alternative thinking across various disciplines.

• Customer relationship management

• Introduction of green technology.

• Brand enhancement.

42

• Meeting global challenges of climate change

• Nurturing human resources in addition to profit.

• Becoming dependable neighbors.

Raiding America: Mahindra is now obsessed with taking both his rugged off-roaders to global markets.

This ambitious plan includes entering the most competitive auto market in the world, the US.

Starting next year, M&M will ride into the US market on the back of a multi-million-dollar mar-

keting plan and aim to entice 10,000 Americans into overlooking competition from the likes of

Honda’s CRV and pay about $25,000 apiece for its Scorpios. It will mark the first time an

‘Indian’ vehicle will lock horns with the heavyweights of the auto industry in the world’s tough-

est arena.

SUVs have advantages in safety, cargo space and power that Americans demand. The chief

virtue of the automobile is the personal independence it gives the owner--a car can go anywhere

roads go and some places they don't, with a speed unimaginable in the pre-automobile era. Its

secondary virtue is protection--from the elements and from collision. In both a car and an SUV,

passengers are protected by the vehicle's structure from the wind and rain. But in a collision, the

SUV simply provides more protection than a smaller car does. Larger cars better protect the peo-

ple in them--that's why your father wanted you to get a huge, boxy old car when you were six-

teen instead of a little Mustang--so that you would live through your first accident. Protection is

a big advantage. Americans are not very easy customers. When Nissan wanted to enter the US

market in 1958, it set itself the target of selling just 500-1,000 vehicles in the first year. It sold

83. At least one Chrysler vehicle and a Ford model have failed because they did not have enough

cup holders!

Goenka says the company has set itself a target of selling 10,000 vehicles in the US in 2009 —

and they will all have “holders in the front and back that can hold large cups”, laughs Arun Jaura,

who has just been elevated as the chief technology officer of the group. Jaura, who built the Ford

Escape hybrid in Detroit, is busy rolling out hybrid vehicles for M&M now. Mahindra has not

decided on the exact launch date for its SUVs in the US, but it is rumoured that the vehicles will

debut by January next.

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America is the largest automobile market in the world with annual sales of 13 million units. It is

expected that the Mahindras’ US foray would have be significant due to the growing importance

of small and fuel-efficient cars among American car buyers.

Mahindra’s top selling SUV in India is the Mahindra Scorpio. This SUV is available in several

versions, including single and dual cab pickup versions. The engines available on the Scorpio in

India are not the smoothest running or the most powerful. But it is unlikely Mahindra would

tackle the US markets with the same engines and transmissions which are adequate for India.

Automotive News’ Chappell believes US consumers would be hesitant about buying an un-

known vehicle made in India. “It took Americans 25 years to accept that the Japanese really

knew how to build cars,’’ he says. “Even Hyundai is still trying to convince shoppers that its cars

are reliable and well built.” But M&M is not a completely unknown brand in the US because the

company sells tractors there. It has sold about 10,000 tractors in the US and sales are growing at

about 25 per cent annually. But in reality, “the Mahindra identity is as familiar to American car

buyers as aloo palak is to a cowboy”, Chappell says.

Mahindra’s days studying filmmaking at Harvard gave him an understanding of the American

psyche. To connect with American buyers, M&M is likely to badge its American pickups with a

true-blue American name that invokes the ‘great outdoors’ — Mahindra Appalachian.

Cracking America will be tougher than selling vehicles in Africa, Mahindra admits. So he’s

roped in a partner who knows how to fight tough battles. John Perez, the auto maverick who

owns Global Vehicles and has brought a variety of autos from around the world to the US, will

be the importer for Scorpios in the US. Perez has already declared that he hopes to sell about

45,000 Scorpios in 2009, which would give M&M revenues of $1 billion in the US alone. To

achieve this, Perez says, he will sign on 300 Scorpio dealers. That makes the math of his chal-

lenge appear easy — each of the 300 dealers will only need to sell three vehicles per week to

give Perez and Mahindra sales of 45,000 Scorpios.

If true, M&M would become the first Indian auto company to launch passenger vehicles in the

US under its won brand. The company already assembles and markets tractors in the US under

its own label.M&M has appointed Global Vehicles USA as its distributor in US, according to the

report. The distributor is currently scouting for dealers across key states. Global Vehicles is also

the distributor of Mahindra tractors.

44

The fact that M&M is planning a US entry indicates that the next upgrade for the Scorpio would

have substantial improvements in terms of engine and transmission, safety features and handling.

M&M is reportedly working on an upgraded engine for the Scorpio, which would be launched

some time next year.

M&M is understood to be working on a major design makeover for the Scorpio. The model has

not seen a major upgrade, except for the recent cosmetic uplift, since launch many years

back.M&M is also talking to a couple of assemblers in Ohio and other states to assemble

knocked-down kits of their vehicles. Though this would raise costs, the company would net two

benefits. It would sidestep the 25 per cent ‘chicken tax’ levied on imports. More importantly, lo-

cal assembly would help overcome the average American’s resistance to foreign brands, lesson

German and Japanese automakers have learned.

Also United States has the stringent emission norms in the world, infact all the major manufac-

turers of diesel passenger vehicles except Mercedes-Benz have withdrawn from the United States

market because of difficulties in meeting stricter standards for the 2007 model year. Mahindra &

Mahindra hopes by producing fuel efficient, T2B5 emission compliable vehicles with a low price

point it can attract buyers for its Scorpio and other pick-ups.

Another interesting take Mahindra would have for the US market is that its SUVs are fuel effi -

cient. For one, the Scorpios they would export would be diesel, and they are not as big, or as

powerful as any of the run of the mill SUVs in the US. So, the strategy would be to sell them as

fuel efficient vehicles. With the new 2.2L engine and 6-speed automatic transmission Mahindra

will claim 39mpg(miles-per-gallon) as its fuel efficiency for the Scorpio.

M&M will also spend $50 million (Rs 200 crore) to upgrade the Scorpio for the US market as

the Indian version will not meet safety norms or customer needs. For one, the company is work-

ing on Project W408, which is fitting the Scorpio with a reconfigured version of the powerful

mHawk engine, a second-generation 2.2-litre common-rail system M&M developed entirely in

India. This is important as Mahindra expects the Scorpio’s fuel-efficient and low-emission en-

gine to win over customers who feel guilty about driving gas-guzzling automobiles, yet want the

size and performance of an SUV. “Fuel efficiency is more of an issue than it’s been in the past,’’

says Rebecca Lindland, research director of automotive group at Global Insight, an independent

research firm. “But it’s not the only issue, nor is price. Consumers still monitor safety ratings, re-

liability, comfort and convenience even more than gas mileage.”

45

They would offer US consumers multiple Scorpio variants — a single-cab pick-up, a double-cab

pick-up and the full-size SUV. Each will “have new seats, a new four-channel ABS, dual-stage

airbags, lots of electronics and everything will be T2B5 compliant”, he says. T2B5 or Tier 2 Bin

5, is the American emissions standard that automobiles have to follow. Perez has said all vehi-

cles would come with a four-year, 60,000-km warranty. On paper, all this would give M&M a

credible position in the mid-size SUV market where the company wants to position itself as a

value-for-money alternative. But it will take a lot more to actually get US consumers to want to

have a vehicle wearing the M&M badge parked in their driveways, next to their neighbours’

Toyotas and Fords.

Apart from the automatic transmission, the American Scorpio will have the fully loaded and will

be all the necessary features of international standard High- end features includes a four-channel

anti-lock brake systems (ABS), occupants safety system, new lumber seats and air bags, four-

wheel drive with electronic shift and a electronic vehicle stability system to be introduced in the

Scorpio’s US variant. Mahindra is also developing a new communication and navigation system

for the SUV, to be fully customized for the US. These equipments will make Scorpio to meet

stringent safety norms and satisfy the more demanding American customer.Besides these emis-

sion standards, the vehicle has to comply with the Federal Motor Vehicle Safety Standards

(FMVSS). According to the National Highway Traffic Safety Administration Web site (

www.nhtsa.dot.gov), these would include 29 standards on ‘Crash Avoidance’ like standards for

rear view mirror, control and displays, theft protection, etc; ‘Crash Worthiness’ standards (16)

for occupant crash protection, seat belt assemblies, roof crush resistance etc; ‘Post Crash’ stan-

dards like fuel system integrity, flammability of interior materials, etc.

There are other regulations that govern FMVSS like manufacturer identification, vehicle identifi-

cation number, etc.The FMVSS standard is a self-certification process and therefore the onus is

on the original equipment manufacturer to comply with them, said Dr Jaura.These standards just

make the car viable to sell in the market, but in order to meet market demands and make it a lu -

crative proposition in the world’s most competitive market, the company has identified diesel-

run vehicles (backed with 4-year, 60,000 mile warranty) as their forte in the gasoline driven SUV

and light truck market.

However, the company has to undergo various modifications to its present generation of Scorpio

models. Curiously, the largest financial risk M&M could face in the US is litigation and recalls.

46

American safety laws are demanding and even small faults can result in high-cost product re-

calls. P.N. Shah says the company is aware of the complexities of the market and is prepared for

it.

M&M’s SUVs would face stiff competition from Toyota’s RAV4 and Honda’s CR-V. Competi-

tion, but this would be especially aggressive in this recession year, when cars sales are expected

to fall 6 per cent, according to US analysts.As in Africa, it is M&M’s US dealers who will hold

the key to the company’s success. “If dealers feel they are being rewarded by selling a car, they

will overcome great obstacles to continue selling it.”Mahindra wants his vehicles to compete

with the best because he believes it would help the company improve its abilities and class. Hav-

ing to cater to the most demanding customers automatically raises the bar. It would force M&M

to become truly global, a process that began when the engine of the first Scorpio turned over.In

many ways, the US entry will also be the champion vehicle’s last lap. Though M&M is counting

on its trailblazing Scorpio to lead the way into the US, it is also preparing for life after the ageing

winner. The company is spending Rs 500 crore-600 crore to develop a monocoque SUV for the

US market. Codenamed W201, the vehicle will be powered by the mHawk engine, albeit in a

completely redesigned and reconfigured form. It will hit the US market in the next couple of

years.

Marketing and target audience:Mahindra is targeting a niche market, price conscious (prices at the pump too) and “green” cus-

tomers. Also, people who have bought Mahindra tractors and Indians in the U.S. According to

Business week Mahindra and Mahindra will follow a unconventional marketing campaign for the

U.S. market. “It will spend only about $20 million on marketing in 2009, less than 10% of what

Toyota spent to launch the Tundra pickup. Almost none of this money is expected to be devoted

to television or glossy print ads. Instead, it will purchase carefully selected search terms and ban-

ner ads on Web sites popular with its target consumers. These links will steer potential buyers to

detailed information about Mahindra’s trucks.”

Unlike Chinese manufacturers which settled impossible targets but even failed to make an off the

mark. Mahindra has set modest goals for its first few years. “Half of the global sales in S.U.V.’s

and pickups is in the United States and we want to capture at least a fraction of that to start

with,” said Pawan Goenka, president of the automotive division of Mahindra & Mahindra.

47

Mahindra is planning to sell just 18,000 of scorpios in the 2nd six months of 2009, followed by

45,000 in 2010.

While many Indian companies make the mistake of falling in love with their products while shy-

ing away from investing in ‘soft’ elements such as advertising, Mahindra will spend as much —

Rs 200 crore ($50 million) — on promoting his US vehicle as he will spend on developing it.

Global Vehicles has hired the iconoclastic advertising firm Strawberry Frog to position its vehi-

cles. “Our objective is to launch a car in the US in a way that has never been done before,’’ Scott

Goodson, founder and chief executive of Strawberry Frog told the media on the sidelines of

Goafest, an international advertising conference. “We are going to launch it in a way that people

are going to say ‘Holy wow! That is cool!’

Price and the strategy:Mahindra will ship its SUV as a CBU from India, but the pickup trucks will be assembled there.

They will be assembled at one of three plant sites Global is scouting in the Southeast. Though it

will be CBU Mahindra will price the Scorpio SUV and the pick-ups aggressively. Mahindra’s 2-

door single-cab pickup truck will be offered in the low $20,000 range and its 4-door truck and 5-

door SUV, which seats seven, will be in the mid-$20,000 range. A high-end version of the 4-

door truck will be in the high $20,000 range. It also uses a penetrating pricing scheme in order to

discourage competition and attract many customers.These prices are very competitive when

other fully loaded SUV prices are hovering in the range of $40,000 - $50000. All the vehicles

will have bumper to bumper warranty for 60000miles / 4years. Similar to hard core Indian bike

enthusiast who are very much associated with Royal Enfield, Americans are extremely loyal to

their SUV makers. When Toyota and Honda entered the American market they faced stiff oppo-

sition. They employed lot of Americans and invested a lot in America. Intact, they projected

them as American producers and circumvent the natural opposition to foreign makers from the

American patriotism. Mahindra & Mahindra has to follow its forerunners if it wishes to be seri-

ous player in the American market.

Also, many of the yardsticks are different unlike Indian customers who are price conscious,

American customers cannot be lured only by the low price point. They look for the quality, qual-

ity problems will keep the customer off the product and poor quality even can destroy the brand.

48

Earlier Hyundai and nowadays even the mighty Toyota is facing lot of problems in the quality

front. Also, unlike other international manufacturers Mahindra do not have multiple products for

United States (at least as of now) it has to solely depend on its Scorpio. Hence Mahindra has to

work hard to keep the number of defects to a minimum before it launches the first Indian product

in America. Mahindra wants to be the next Land Rover.

Finally, Mahindra has effectively planned for its US entry concentrating on all the elements

needed for its global launch.It has done a lot of market research on its entry in US and also up-

graded the Scorpio as needed by the American customers it will definitely prove to be successful

in the US market.

49

OBJECTIVES OF THE STUDY

The study has been under taken to analyze the marketing strategy towards all variant of Mahin-dra SCORPIO in Dehradun with a special reference to the M&M motors, the other objectives are:

➢ To gather information about Marketing Strategy toward Scorpio in the geographic region of Dehradun

➢ To know the customer perception about features, low maintenance cost and looks of Scorpio.

➢ To know the customer satisfaction about the safety and comfort provided by Scorpio.

➢ To provide suggestions, in improving the marketing strategies and the company sales and profitability .

➢ To know the marketing strategy towards the after sales service offers by M&M.

50

RESEARCH METHODOLOGY

Research MethodologyA research process consists of stages or steps that guide the project from its conception through

the final analysis, recommendations and ultimate actions. The research process provides a sys-

tematic, planned approach to the research project and ensures that all aspects of the research

project are consistent with each other.

Research studies evolve through a series of steps, each representing the answer to a key question.

INTRODUCTIONThis chapter aims to understand the research methodology establishing a framework of evalua-

tion and revaluation of primary and secondary research. The techniques and concepts used dur-

ing primary research in order to arrive at findings; which are also dealt with and lead to a logical

deduction towards the analysis and results.

RESEARCH DESIGN I propose to first conduct a intensive secondary research to understand the full impact and impli-

cation of the industry, to review and critique the industry norms and reports, on which certain is-

sues shall be selected, which I feel remain unanswered or liable to change, this shall be further

taken up in the next stage of exploratory research. This stage shall help me to restrict and select

only the important question and issue, which inhabit growth and segmentation in the industry.

The various tasks that I have undertaken in the research design process are :

❑ Defining the information need

❑ Design the exploratory, descriptive and causal research.

51

RESEARCH PROCESSThe research process has four distinct yet interrelated steps for research analysis

It has a logical and hierarchical ordering:

✓ Determination of information research problem.

✓ Development of appropriate research design.

✓ Execution of research design.

✓ Communication of results.

Each step is viewed as a separate process that includes a combination of task , step and specific

procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and

ongoing.

EXPLORATORY RESEARCHThe method I used for exploratory research was

❑ Primary Data

❑ Secondary data

PRIMARY DATANew data gathered to help solve the problem at hand. As compared to secondary data which is

previously gathered data. An example is information gathered by a questionnaire. Qualitative or

quantitative data that are newly collected in the course of research, Consists of original informa-

tion that comes from people and includes information gathered from surveys, focus groups, inde-

pendent observations and test results. Data gathered by the researcher in the act of conducting re-

search. This is contrasted to secondary data, which entails the use of data gathered by someone

other than the researcher information that is obtained directly from first-hand sources by means

of surveys, observation or experimentation.

Primary data is basically collected by getting questionnaire filled by the respondents.

52

SECONDARY DATAInformation that already exists somewhere, having been collected for another purpose. Sources

include census reports, trade publications, and subscription services. There are two types of sec-

ondary data: internal and external secondary data. Information compiled inside or outside the or-

ganization for some purpose other than the current investigation Researching information, which

has already been published? Market information compiled for purposes other than the current re-

search effort; it can be internal data, such as existing sales-tracking information, or it can be re-

search conducted by someone else, such as a market research company or the U.S. government.

Secondary source of data used consists of books and websites

My proposal is to first conduct a intensive secondary research to understand the full impact and

implication of the industry, to review and critique the industry norms and reports, on which cer-

tain issues shall be selected, which I feel remain unanswered or liable to change, this shall be fur-

ther taken up in the next stage of exploratory research.

DESCRIPTIVE RESEARCHSTEPS in the descriptive research:

Statement of the problem

➢ Identification of information needed to solve the problem➢ Selection or development of instruments for gathering the information➢ Identification of target population and determination of sampling Plan.➢ Design of procedure for information collection➢ Collection of information➢ Analysis of information➢ Generalizations and/or predictions

DATA COLLECTION

Data collection took place with the help of filling of questionnaires. The questionnaire method

has come to the more widely used and economical means of data collection. The common factor

in all varieties of the questionnaire method is this reliance on verbal responses to questions, writ -

ten or oral. I found it essential to make sure the questionnaire was easy to read and understand to

all spectrums of people in the sample. It was also important as researcher to respect the samples

53

time and energy hence the questionnaire was designed in such a way, that its administration

would not exceed 4-5 mins. These questionnaires were personally administered.

The first hand information was collected by making the people fill the questionnaires. The pri-

mary data collected by directly interacting with the people. The respondents were contacted at

shopping malls, markets, places that were near to showrooms of the consumer durable products

etc. The data was collected by interacting with 200 respondents who filled the questionnaires

and gave me the required necessary information. The respondents consisted of housewives, stu-

dents, businessmen, professionals etc. the required information was collected by directly interact-

ing with these respondents.

DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZETARGET POPULATION

It is a description of the characteristics of that group of people from whom a course is intended.

It attempts to describe them as they are rather than as the describer would like them to be. Also

called the audience the audience to be served by our project includes key demographic informa-

tion (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will

be either all or a subset of potential users, such as adolescents, women, rural residents, or the res-

idents of a particular geographic area. Topic areas: Governance, Accountability and Evaluation,

Operations Management and Leadership. A population to be reached through some action or in-

tervention; may refer to groups with specific demographic or geographic characteristics. The

group of people you are trying to reach with a particular strategy or activity. The target popula-

tion is the population I want to make conclude an ideal situation; the sampling frames to matches

the target population. A specific resource set that is the object or target of investigation. The au-

dience defined in age, background, ability, and preferences, among other things, for which a

given course of instruction is intended.

I have selected the sample trough Simple random Sampling

SAMPLE SIZE:

This involves figuring out how many samples one need.

54

The numbers of samples you need are affected by the following factors:

• Project goals • How you plan to analyze your data • How variable your data are or are likely to be • How precisely you want to measure change or trend • The number of years over which you want to detect a trend • How many times a year you will sample each point • How much money and manpower you have

SAMPLE SIZEI have targeted 150people in the age group above 21 years for the purpose of the research. The

target population influences the sample size. The target population represents the Dehradun re-

gions. . The people were from different professional backgrounds.

The details of our sample are explained in chapter named primary research where the divisions

are explained in demographics section.

ERRORS IN THE STUDY

Interviewer errorThere is interviewer bias in the questionnaire method. Open-ended questions can be biased by

the interviewer’s views or probing, as interviewers are guiding the respondent while the ques-

tionnaire is being filled out. The attitudes the interviewer revels to the respondent during the in-

terview can greatly affect their level of interest and willingness to answer openly. As interview-

ers, probing and clarifications maximize respondent understanding and yield complete answers,

these advantages are offset by the problems of prestige seeking, social desirability and courtesy

biases.

Questionnaire errorThe questionnaire designing has to careful so that only required data is concisely reveled and

there is no redundant data generated. The questions have to be worded carefully so that the ques-

tions are not loaded and does not lead to a bias in the respondents mind

55

Respondent errorThe respondents selected to be interviewed were not always available and willing to co operate

also in most cases the respondents were found to not have the knowledge, opinion, attitudes or

facts required additionally uninformed response errors and response styles also led to survey er-

ror.

Sampling error We have taken the sample size of 150, which cannot determine the buying behavior of the total

population. The sample has been drawn from only National Capital Region.

Research Design

Research design is a conceptual structure within which research was conducted. A research de-

sign is the detailed blueprint used to guide a research study towards its objective. It is a series of

advanced decision taken together comprising a master plan or a model for conducting the re-

search in consonance with the research objectives. Research design is needed because it facili-

tates the smooth sailing of the various research operations, thereby making research as efficient

as possible yielding maximum information with the minimum effort, time and money.

Scope and the Limitation of the study

➢ The scope of study is limited to the respondents are selected from in and around Dehradun, U.k

.

➢ The project is carried out for the period of 45 days only.

56

➢ Measurement of Marketing strategies is complex subjects, which uses non-objectives method, which is not reliable.

➢ The sample unit was also 150 respondents.

➢ However, Mahindra and Mahindra Automobile showrooms are located in other places i.e. locally and even in the neighboring states. Only opinion of respondents of Dehradun city was consider for finding out the opinions of respondents.

57

DATA ANALYSIS & INTER-PRETATION

58

DATA ANALYSIS & INTERPRETATION

Satisfied Dissatisfied

78% 22%Table No. 1 Marketing Strategy towards Mahindra Scorpio

Source: Questionnaire

Figure:1

78

22

satisfied

dissatisfied

Interpretation 1:

The sample drawn on probability basis shows that 78% of the customers were satisfied with

Scorpio variant and only 22% were not satisfied with Scorpio variant.

Observation:

Most of the respondents approached were satisfied with Scorpio

Table No: 2 Factors affecting marketing strategy towards Scorpio

59

Factor No. of Respondent Percentage

Features 18 12%

Low Maintenance 51 34%

Comfort 27 18%

Style 24 16%

After Sales Service 30 20%

Source: Questionnaire

Figure:2

12

34

18

16

20

Featureslow maintenancecomfortstyleafter sales service

Interpretation 2: The sample drawn on the probability basis clearly shows that 34% (51respon-

dents) are the opinion that low maintenance is the satisfaction factor Scorpio and 20 %( 30 re-

spondents) of them who view After Sales Service as a vital factor for customer satisfaction. Fol-

lowed by Comfort which corresponds to 18 %( 27 respondents), Style with 16%(respondents)

and only 12%(18 respondents) of them view that feature of Bolero as satisfaction factor.

Observation:

Majority of the respondent are of the idea that low maintenance of the top most feature con-

tributing to customer satisfaction followed by after sales services comfort style and features

60

As such, Mahindra should focus on the aspects, which will enhance the customer satisfaction and

thus the market share

Table No: 3 Customer opinions towards fuel consumption.

Factor Percentage

Extremely Satisfied 27%

Satisfied 49%

Neutral 17%

Dissatisfied 7%

Total 100%

Source: Questionnaire

Figure: 3

27%

49%

17%

7%

Consumer Opinions toward Fuel Consumption

More SatisfiedSatisfiedNot Satisfied & DissatisfiedDissatisfied

Interpretation 3: 100% of the respondents 49% of the respondents approached were satisfied

with the fuel consumption of the Scorpio. Followed by 27% was extremely satisfied, 17% are

neutral and rest of the 7% is more dissatisfied with fuel consumption of Scorpio.

Observation: As majority of the respondents are satisfied with the fuel consumption of Mahin-

dra Scorpio, the company should maintain the same standard and it is suggested to come up with

61

suitable measure to reduce the negative opinion among the consumer who are of the opinion that

the fuel consumption is a dissatisfying factor.

Table No: 4 Customer opinions toward Safety and Comfort.

Factor Percentage

Extremely Satisfied 23%

Satisfied 47%

Neither Satisfied & Dissatisfied 20%

Dissatisfied 10%

Total 100%

Source: Questionnaire

Figure: 4

23%

47%

20%

10%

Customer Opinions toward Safety and Comfort

Extremely SatisfiedSatisfiedNeutralDissatisfied

Interpretation 4: 100% of the respondents 47% of the respondents approached were satisfied

with the safety and comfort feature of the Scorpio. Followed by 27% was extremely satisfied,

17% are neutral and rest of the 7% was dissatisfied with safety and comfort feature of Scorpio.

Observation: As majority of the respondents are satisfied with the safety and comfort feature of

Mahindra Scorpio, the company should maintain the same standard and it is suggested to come

62

up with suitable measure to reduce the negative opinion among the consumer who are of the

opinion that the fuel consumption is a dissatisfying factor.

Table No: 5 Customer opinions toward Design.

Factor Percentage

Extremely Satisfied 20%

Satisfied 40%

Neutral 27%

Dissatisfied 13%

Total 100%Source: Questionnaire

Figure: 5

20%

40%

27%

13%

Customer Opinions Toward Design

Extremely SatisfiedSatisfiedNeutralDissatisfied

Interpretation 5: 100% of respondents 40% of the respondents approached were satisfied with

the Design of the Scorpio. 20% were more satisfied, 27% of them neutral and 13% are dissatis-

fied with the design of the Scorpio.

Observation: As majority of the respondents are satisfied with the design of Mahindra Scorpio,

the company should maintain the same standard and it is suggested to come up with suitable

measure to reduce the negative opinion among the consumer who are of the opinion that the fuel

consumption is a dissatisfying factor.

63

Table No: 6 Customer opinions toward space availability in Mahindra Bolero.

Factor Percentage

More Satisfied 27%

Satisfied 53%

Neither Satisfied & Dissatisfied 17%

Dissatisfied 3%

Total 100%Source: Questionnaire

Figure: 6

27%

53%

17%

3%

Customer Opinions Toward Space Availability

Extremely SatisfiedSatisfiedNeutralDissatisfied

Interpretation 6: The sample drawn on the probability basis shows that out of 100% of respon-

dents 53% of the respondents approached were satisfied with the space availability of the Scor-

pio. 27% were more satisfied, 17% of neither satisfied and dissatisfied and 3% are dissatisfied

with the space availability of the Scorpio.

Observation: As 80% of the respondents are happy with the space availability of the Mahindra

Bolero vehicle, it can be conducted that the company has undertaken proper R&D in this aspect.

The 20% of the respondents who have answered negatively may be comparing with the vehicle

in the same category launched very recently.

64

Table No: 7 Marketing Strategy toward Maintenance of Mahindra Bolero.

Factor Percentage

Extremely Satisfied 23%

Satisfied 51%

Neutral 21%

Dissatisfied 5%

Total 100%

Source: Questionnaire

Figure:7

23%

51%

21%

5%

Marketing Opinions Toward Maintenance

Extremely SatisfiedSatisfiedNeutralDissatisfied

Interpretation 7: The sample drawn on the probability basis shows that out of 100% of respon-

dents 51% of the respondents approached were satisfied with the maintenance of the Scorpio.

23% were extremely satisfied, 21% of neutral and 5% are dissatisfied with the maintenance.

Observation: Though majority of the customer are satisfied that the maintenance cost of Mahin-

dra Scorpio is less, around 20% are not satisfied which may be because of comparison of Scorpio

with the newly launched competing brands coming with even lower maintenance cost.

65

Table No: 8 Customer awareness about power steering.

Option No. Of Respondent No. Of Respondents (%)

Aware 120 80%

Unaware 30 20%

Total 150 100%

Source: Questionnaire

Figure: 8

80%

20%

Customer Awareness About Power Steering

Aware

Unaware

Interpretation 8: Out of 100% of respondents, 80% of the respondents approached were aware

of the power steering present in some variant of Scorpio and 20% were not aware of the power

steering present in some variant of Scorpio.

Observation: Most of the respondents approached were aware of power steering system intro-

duced in some variants of Scorpio.

Table No: 9 Customer perceptions about Scorpio

Very Good Good Average Bad Very Bad

20% 47% 21% 12% -

66

Source: Questionnaire

Figure: 9

20%

47%

21%

12%

Customer Perception About Scorpio

Very GoodGoodAverageBad

Interpretation 9: The sample drawn on the probability basis shows that out of 100% of respon-

dents 47% of the respondents gave Good response to Scorpio. 20% gave Very Good response,

21% gave Average response and 12% gave bad response to Scorpio.

Observation: As 67% of the respondents are satisfied that they are happy with Scorpio, it satis-

fies that the customer satisfaction levels are very high. If the company were to identify the pit-

falls in their product and undertake remedial measure, thus it will lead to more good word of

mouth publicity.

67

FINDING

68

FINDINGS

Based on the data gathered by administrating schedules to customers the following observations

are made.

1. Mahindra Scorpio has excellent percentage of customer satisfaction according to the data shown in table 1 of the data analysis and Interpretation topic.

2. Most of the people are satisfied with its low maintenance cost and after sales service provided by Mahindra Scopio.

3. Based on the fuel consumption, most of the people are satisfied with it.4. Based on Safety and Comfort, Design, Space, Maintenance most of the people are

satisfied with it.5. Large numbers of Scorpio user are aware of its power steering.6. If we took the satisfaction level of people toward Scorpio, it becomes good.7. Its features and style satisfy most of the people.

69

RECOMMENDATION

70

Recommendation

Mahindra Company has to implement good customer relationship management

strategy that enhances Marketing Strategies level.

The company can for the undertake R&D to improve the existing feature which

field help increase in the Marketing Strategies.

The company should promote about the entire feature offered by it.

As majority of the customer give opinion that they are satisfied is the factor, ser-

vices and design of the product of the company should taken not only maintain the

existing standard but also enhance them.

71

CONCLUSION

72

CONCLUSIONS

Mahindra Scorpio has a very good market share in the state of U.k. for the SUV segment. The company is offering good services, which is reflected on the satisfaction of the customer.Majority of the customer are satisfied with the design of the vehicle.

73

BIBLIOGRAPHY

74

Bibliography

➢ Philip Kotler 12th edition Marketing Management➢ www.mahindrascorpio.co.in➢ www.automobile.com ➢ Data from Mahindra and Mahindra Dehradun premier motors

dealer from Dehradun city.

75

ANNEXURES

76

QUESTIONNAIRE1) Customer profile

1. Name 2. Occupationc3. Age 4. Income5. Address:-

1) Are you a satisfied with Mahindra Scorpio?a. Yesb. No

2) If “Yes” Which factor you consider is satisfies you most?a. Feature b. Low Maintenancec. Looksd. After Sales Service

3) Are you satisfy with the fuel consumption of Scorpio?a. Extremely Satisfiedb. Satisfiedc. Neutrald. Dissatisfied

4) Are you satisfied with the Safety and Comfort of ?a. Extremely Satisfiedb. Satisfiedc. Neutrald. Dissatisfied

5) Are you satisfied with the Design?a. Extremely Satisfiedb. Satisfiedc. Neutrald. Dissatisfied

6) Are you satisfied with space available in Scorpio?a. Extremely Satisfiedb. Satisfiedc. Nor Satisfied & Dissatisfiedd. Dissatisfied

7) Are you satisfied with Maintenance cost?

77

a. Extremely Satisfiedb. Satisfiedc. Neutrald. Dissatisfied

8) Are you aware about power steering present in Scorpio?a. Yesb. No

9) Your general perception about Scorpio.

a. Very Goodb. Goodc. Averaged. Bad

10) Do you want to give any suggestion about any change in the Scorpio?

78