This case study analysis arising out of class discussion at IMT Ghaziabad evaluates the brand repositioning strategy used by M&M to bolster its successes.

1. Mahindra & Mahindra Scorpio
Developing Brand Identity
Company:
•Establishmen
t of
Mahindra & Manufacturing Starts
Mahindra starts with Production of
1945 •Imported 1948 Went Public 1954 Willy's
Overland
1965 Light
Commercial
and Corp. viechles
Assembled
Willy,s Jeep
Brand name '
Restructuring
Mahindra' Initiatives to
of the
Acquisition of established launch new
company. Core
International after the products and
1977 Tractor 1982 expiry of 1994 aautomotive
operation
1997 services and
Company 'international realign new
remains with
Tractor" ones
M&M
Agreement
Time line of Evolution of Mahindra Automotive Division
Mahindra & Mahindra
Automotive Sector Farm Equipment Sector
(manufactured and marketed Utility (manufactured and marketed tractors and
viechles, Light Commercial Viechles and other farm equipments)
three viechles)
Reorganization of Mahindra and Mahindra in 1994
Brand Portfolio Modification :
The company conducted market research and carried out detailed exercises to ascertain consumer
insights to determine product and brand portfolio realignment. Some of these were:-
 Redesigning of existing ARMADA to MAHINDRA BOLERO by overhauling aesthetics as
well as physical features and creature comforts. The brand went on to make the

2. company a serious contender in urban markets to TATA range of SUVs and MUVs. This
also coincided with beginning of a burgeoning of passenger segments in the Indian
automotive markets.
 Redesigning of MARSHAL – Mahindra’s hard top viechles to MaXX with more space and
targeted towards stage as well as economic contract viechles.
 Launch of INVADER to target upwardly mobile noveaue rich as a new personal off road
viechles.
 Launch of multi utility viechles CAMPER at Rs. 0.38 million.
These realignments were highly appreciated by the targeted audiences and had high recall. As is evident from
the adjoining graph, the fact that Bolero resulted in achieving a high opinion even though it was a new roll out
points to the fact that M&M was successful in its portfolio restructuring.
Average Rating on Overall Opinion
9
8
7
6
5
4
Average Rating on Overall Opinion
3
2
1
0
TATA Sumo Toyota Qualis Bolero TATA Safari Armada Marshal
(M&M) (M&M) (M&M)
Project Scorpio:
Need for Project Scorpio :-
The vehicle market in India on the eve of launch of Project Scorpio consisted of these three
segments:-
UTILITY VEHICLES: These constituted about 10-12 % of the Indian automotive market
and offered vehicles that were rugged or perceived as such. This segment was perceived
to be more competitive in coming domains and hence was contrived to give lesser
margins until the qualities of value chain was not integrated.
SPORTS UTILITY VEHICLES: These were a niche segment and was in the proprietary
stage of evolution.
TWO WHEELER SEGMENT
TWO WHEELER SEGMENT

3. Market Dynamics: The Indian automotive market was showing a discernible shift
towards the trend of ‘poaching’ of C- class or luxury segments by the evolving UV
segments as was shown by the success of Toyota Qualis before the launch of Scorpio
and will be validated by the revenues.
CAGR For Vehicle Segments in 2001
60
50
40
30
20 CAGR For Ve
10
0
Class A (Entry Level) Class B ( Semi Class C (Luxury) Utility Vehicles
Luxurious)
M&M losing its share in the MUV category which was poised for growth: M&M
was losing its market leader category status due to intense competition given by
the launch by Toyota Qualis and Tata Safari:-
FY’97 FY’98 FY’99 FY’00 FY’01 FY’02
71.6% 52.2% 58% 58% 45% 46%
M&M Market Share in Multi Utility Vehicles across fiscal years
Unique Developmental Features in Project Scorpio:
Integrated Design and Manufacturing (IDAM)
The Product development process termed as IDAM consisted of creating a multifunctional
project team of people from different departments such as Design and Development, Testing
and Validation, Marketing, manufacturing etc. to ensure quick decisions along with built in
checks and balances.
Brand Positioning conundrums and how they were tackled
The problem with positioning pertained to that of Scorpio because as far as the holding
company was concerned they already had a repute for building “sturdy” and “value for money”
vehicles. (Refer www.auotocarindia.com/archives/20aug2001.pdf ). For the initial ground
analysis, a STATIC AND DRIVE CLINIC was conducted amongst people belonging to 20-60 years
(ECONOMICALLY PRODUCTIVE SCHEMA as explained by economist John Schumpeter). The
static evaluation considered attributes such as:-

4.  Exterior finish
 Interior Styling
 Creature comforts
were evaluated. The results from the side of consumers were very appreciative. In the drive
evaluation phase attributes such as easy of drive, gear changing quality, smoothness of clutches, interior drive
comfort were taken into consideration. The feedback from the consumers and potential ones were both
moderately appreciative.
Price sensitivity models:
They helped in ascertaining the right price brand for the launch of the product. This was helpful in
ascertaining the fact that the youth were willing to pay more than the older age group.
Negative
Positive Insights
Insights
Percieved as sturdy Not percieved as rugged
Good asthetics Jeep like MUV
Indian conumers not
Large and spacious familiar with cocept of
SUV
No striking feature
Good for personal and
emerged to act as a
family use
positioning peg
Developing a Brand Identity:
To create excitement amongst consumers retailing strategy, communication strategy as well as launch
strategy etc. was chalked out:-
COMMUNICATION STRATEGY:
The nodal agency was Interface Communications:- This was situated near the main manufacturing
facility and promised better co-ordination. The strategy adopted the positioning along the theme –
“Luxury of a Car – Thrill of a SUV”.
Perceived as Jeep. But car is opposite of Jeep:- Similarly the communication strategy was centered
around perceived as Rural but is actually an urban one.
Multiple modes such as TV, Radio, Print etc : The commercials itself was shot in Australia to give a
sporty feel. Off-road images throughout were avoided to give this a sporty feel.

5. Print Coverage: All the major dailies were roped in the process and double spread color
advertisements were taken out in leading newspapers and magazines targeting international audiences
using structured PR campaigns with a local Indian touch.
LAUNCH STRATEGY OF M&M SCORPIO:-
To target the already existing service network of 150 dealers tweaked to SCORPIO launch
Refurbishments of showrooms to give them an "Upmarket The redesigning also incorporated brochures, accesory etc
style" as well as theme of SPORTINESS by a reputed architect
Accross the board standardisation for Scorpio
Existing dealers identified and given extensive details about It also included ipmparting training about Customer
the semantics of service delivery relationship management
Launch Strategy of Scorpio
Phase 2:- 20 cities (category A2, A3) Phase 3:- 50 cities (A2, A3, A4) within
Phase 1:- Main Metros
within next 4 months next year
BRAND BUILDING INITIATIVES FOR MULTIPLE AUDIENCES:-
TARGETED AUDIENCES :- MALE, FEALE, YOUNG, FAMILIES
MALE:-
Sportiness in showrooms
Technology and Urban touch
Thrill of an SUV
FEMALE:-
Comfort ability
Ads shown for women drivers
Spacious and Luxurious
Positioning around “car”
YOUNG:-
SPORTINESS AND Technology oriented
Thrill of an SUV

6. National Campaign and taregeted coverage
FAMILIES:-
Safety and Reliability in Mahindra
Customer Relationships
Comfort Ability
- Ishan Pratik
- 12FN059
- Section S7
UTILITY VEHICLES: These constituted about 10-12 % of the Indian automotive market
and offered vehicles that were rugged or perceived as such. This segment was perceived
to be more competitive in coming domains and hence was contrived to give lesser
margins until the qualities of value chain was not integrated.
SPORTS UTILITY VEHICLES: These were a niche segment and was in the proprietary
stage of evolution.
TWO WHEELER SEGMENT
TWO WHEELER SEGMENT