Scorpio- Developing brand identity

Scorpio- Developing brand identityDefinition of UV , SUV and MUVA utility vehicle is a vehicle, generally motorized, that is designed to carry out a specific task with more efficacy than a general-purpose vehicle e.g. military tanks, armored personnel carriers etc.A sports utility vehicle, or suburban utility vehicle (SUV) (sometimes called a sports utility wagon), is a vehicle similar to a station wagon, estate car, or van usually equipped with four-wheel drive for on-road or off-road ability. Some SUVs include the towing capacity of a pickup truck with the passenger-carrying space of a minivan or large sedanMUVs are larger vehicles which can tackle a wide range of applications. They typically allow easy conversion between multiple combinations of passenger and luggage capacity.Mahindra & Mahindra Ltd. Established in 1945Manufacturing activities of automotive division started in 1954 Assembling of Willys JeepProduction of LCV in 1965Started 4 manufacturing plants i.e. Nasik, Mumbai, Igatpuri, ZaheerabadAcquired International Tractor company of India in 1977 In 2003, the company sold about 87000 vehicles and 47000 tractorsTurnover of Rs 46 Billion and net profit of Rs 1.46 BillionNet worth of the company Rs 15.7 BillionDivided into two categories : Automotive sector and Farm equipment sector

Ford India Private ltd. Joint venture with Mahindra & Mahindra Ltd.3Brand PortfolioArmada redesigned as Mahindra Bolero : Brand Promise: luxurious toughnessEmotional benefit: break freeMarshall was modified as MaXX, offering more spaceThis vehicle was used for commercial purposesPersonal off road vehicle Invader launchedA MUV Camper was launched

Price comparisonMahindraTataMahindra BoleroRs 4,90,000Tata SumoRs 5,50,000Invader Rs 3,80,000Tata SafariRs 8,50,000CamperRs 4,00,000Scorpio (Base variant)Rs 5,50,000Scorpio (High variant)Rs 6,00,000Pricing should be such that a customer is able to get value. The vehicle should be priced according to its segment.High degree of cost competitiveness from MahindraNeed for Project ScorpioUtility Vehicle constituted 10-12 % of the total vehicle market and 16% of the total passenger car marketSUV Segment was evolving and constituted a niche market segmentMarket dynamics : Success of Toyota Qualis as there was a shift of the consumers from Category B & C Buyers towards UV productsMarket Share of Utility vehiclesEntry of Toyota Qualis in 2001Tata Safari was an expensive vehicle in 2001-02 There was a need to provide a Value for Money , Affordable, Car Like SUV to the consumersMahindra wanted to come up with a Pro-Active Strategy to beat the competition6Brand PositioningMahindras Image was a big barrierPositive parameterRuggedTough ReliableEconomical Negative parameterUncomfortableRoughNot easy to driveRural imageryDown Market

ExpensiveinexpensiveContemporaryBoleroArmadaSafariQualisScorpio ProjectionTraditionalScorpioOthersMarshallInvaderCamperGypsyObjectives of IDAMTo create a new segment and retain that segmentTo differentiate offering by providing customer value proposition productTo offer a differentiated product, the development team of JV Ford Escort was brought in which gave birth to Luxury of a Car. Thrill of an SUVIts a learning organization leveraged on past learningsTo optimize project costsResults:The project was made in a span of 5 years The teams average age was 27 years which helped in designing an urban & stylish product (Youth and Urban aspirations captured in early stage) 19 cross functional teams & total persons were 120Project cost was 120 million USD (1/5 th of global Automotive players project cost)It is easier to make what you can sell, then to sell what you have madeGuideline of the force of the IDAM (Mumbai) (case of Internal branding )Brand Initiatives analysisInitiativesEvaluation AnalysisVehicle Clinic (Age group 21-60 years)Owners of small car, mid-size car and leading competing brand of SUV JustifiedThe need to understand whether the Mahindra as a brand was still perceived in jeep category, rugged or down market Prod.Consumers were still not very familiar of SUV concept. They could associate more with car and jeep featuresThe consumer group also felt the vehicle consisted of Sumo, Qualis and Safari. This gave them insight that they need to position their product differently in consumers mind This Practice is also known as NOVA-C (new overall vehicle audit-customer) The Product was branded as ScorpioJustifiedA unique name was given to it to attract the premium, classy and urban segment of peopleA Sub-brand name strategy was followed as Mahindra was already an established player in the UV Market To provide a High-end prestige brand in the existing portfolio and increase its credibilityMahindra was seen as reliable UV manufacturerScorpio was a shadow endorsement. A period of instability in Auto sector was there on account of Daewoos Fallout. Mahindra 9Brand Initiatives analysisInitiativesEvaluation AnalysisRetail Experience:The Showrooms were in rural and semi-urban locations. Upgradation of these centers to give a up-market feeling JustifiedMahindras image was that of rural and down market imageIn order to scale up the premium image and up-market feeling associated with the brand, this was a necessary stepScorpio would be marketed as an Affordable, Premium and Car like SUVSportiness in showrooms to give a vibrant impressionUniform customer experience across all the retail points were getting the buy-in by the dealers in investing resources and adhering to design standards and showroom audit.JustifiedPart of integrated marketing strategyLinking internal and external marketing Bring the brand alive for consumers alikeValue propositions was to provide the target customers a distinct showroom experienceBrand Initiatives analysisInitiativesEvaluation AnalysisService delivery upgradation. Potential people were trained to develop appropriate manners, pleasing appearance and sophistication in dealing with the new types of target customers of scorpioJustifiedMahindra had a down market and more of traditional imageThe brand was a premium one which was targeted at urban people, Category B & C peopleTo cater to that different segment, at ground level trained people were required to handle this new class of customersTo establish a unique customer experience for this niche segment

Scorpio was launched in a phased manner to ensure that the retail and service facilities JustifiedMahindras strategy was to start serving less markets initially but serve them wellA cautious approach towards expansion , step-by-stepCommunication StrategyLuxury of a car. Thrill of an SUV Television medium: emotional benefitsPrint medium: functional benefits that supported emotional benefitsJustifiedBreak the perceptual barrier of not for city drive Promote it as a family vehicle which offered luxury and comfortCommunicate SUV type vehicle as a soft productMultiple communication modes to support the high impactBrand Initiatives analysisInitiativesEvaluation AnalysisTV and Print Ads were shot in Australia and urban locations. Ads depicted women driving the vehicleExhibits 3 to 8 are the print AdsJustifiedMahindras marketing strategy tried to convey that the product is easy to use and appropriate for allThe messages in the Ads leveraged on the consumer psychology of Owners Pride and Neighbors Envy The product was showcased in a big way as a status symbol and disruptive innovation It was giving direct competition to sedans existing that timeIt fell between a passenger car and as SUVScorpio launch advertisements aired on 15Th August, The independence day of India JustifiedMahindra Leveraged on the PR campaign to highlight the Indianness of the Product on the right timeDesigned, Manufactured and Marketed by an Indian Company and Pride of patriotism was evokedOpel corsa, Ikon, Esteem12Brand Initiatives analysisInitiativesEvaluation AnalysisCavalcade of 3 Scorpios being driven in Mumbai Tie-up with Scorpion King filmPromote safe driving with Journalists across 29 states in various citiesScorpio Speedster

JustifiedTo create excitement and Brand visibilityResponsible campaigns promoting safe driving enhances brand perceptionScorpio Speedster was done to showcased the enhanced acceleration (100 kmph in 0-15 Secs) and speed of the vehicle (149 Kmph)

Managing Customer RelationshipTelephone calls to customersTop Gear Club formation and tying it with scheme Nanhi KaliExhibit 11 to 15

JustifiedDeveloping brand communities was an effective step Personalizing Marketing & Permission Marketing were practicedHelped differentiating customers in terms of their needs and their value to ones companyHelps identifying companys prospects and customersEnhancement of knowledge about individual needs and to build stronger relationshipsOpel corsa, Ikon, Esteem13Brand Initiatives analysisInitiativesEvaluation AnalysisExhibit 16 Shows the growth of UV VehiclesJustifiedGrowth of UV vehicles shows that there is market potential in this segment and its growth will attract several MNCs Exhibit 17 shows success of ScorpioJustifiedMahindra got international recognition for developing Scorpio and the customers felt proud in associating with this brandMahindra Scorpio was able to generate interest in new customers as well which forms 32% of the customers for ScorpioOpel corsa, Ikon, Esteem14Future Directions Overall all the existing products must go undergo incremental innovative changes like face-uplifts and technological advancementsFocus marketing and distributing in International Markets as the brand already has an international reputationWork on new project platforms like Sub 4 metre Compact SUVs for urban and semi-urban populationsThis is to counter the new MNCs which would be launching their models in IndiaThe communication strategy could be Come, Experience, Believe , Urban Discoveries, Heads will turn and turn againLaunching of Hybrid cars on Scorpio platforms

Future Directions Rural Markets are a major contributor to Mahindra SalesFocus on campaigns to empower them with improved commercial productsOrganize off-roading and adventure sports to promote Mahindra brand Tie-up with Sports events and formula racing events to improve on the brands visibilityStart leveraging on digital platforms and social media for promotion and advertisementCrowdsourcing for future projects and strategiesFocus on a differentiated off-road vehicle for the off road community enthusiastsStart customer loyalty programs for Scorpio customers to retain and attract new customersUse the Customer relationship Database to understand the needs and gaps in the strategies and revitalize them.

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