Company profile

Mahindra & Mahindra Limited is part of the Mahindra Group, an automotive, farm
equipment, financial services, trade and logistics, automotive components, after-
market, IT and infrastructure conglomerate.. The company was set up in 1945 in
Ludhiana as Mahindra & Mohammed. Later, after the partition of India, Ghulam
Muhammad returned to Pakistan and became that nation's first finance minister.
Hence, the name was changed from Mahindra & Mohammed to Mahindra &
Mahindra in 1948.

• Set up in 1945 as the manufacturer of general purpose utility vehicles.

• Later diversified into manufacturer of Tractors and light commercial

vehicles (LCV)

• Further diversified their business into trade and finance related services,
information technology and infrastructure development through joint
venture and alliance.

• By the end of 1960 company began manufacturing vehicles indigenously .

• Its production unit are Mumbai, Nashik,Igatpuri (Maharasatra) and

Zaheerabad (A.P.)

Type Public Company

Founded 1945

Headquarters Mumbai, India

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 Keshub Mahindra (Chairman), Anand Mahindra (Vice-Chairman &
Key people
Managing Director)

Automotive
Industry
Farm Equipment

Revenue US$ 10 billion (2009 H1).

Employees 16,000 plus

Website Mahindra.com/

The History of Car Industry

There were several attempts made with the thought of a car, as we know it, long
before the advent of Henry Ford and the Model T. These cars were for one
reason or another all wrong and it was incomprehensible to invest in a car that
would only take you a mile or so, was ran by a steam engine, or did not have the
capacity to be recharged. It was not until later that the advent of the auto industry
really came into its own and grew to what we know today.

Mid 1700s
1. Most believe that the birth of the auto industry happened with Henry Ford,
but the auto industry really came about long before that. Back in the mid
1700s, Nicolas J. Cugnot who was a French engineer designed the first auto
that had the capacity to drive on a road. This auto only had three wheels, was
self powered and ran by way of a steam engine. It was only capable of
running for a few minutes at a time and took a long time to start up. They
were also very weighty and bulky. Later, it was Oliver Evans who brought that
idea to the United States, but the design never went very far.

Early 1800s

2. In the early 1800s, Robert Anderson, a Scottish man, created a carriage

that was ran by electricity. Anderson and U.S. native Thomas Davenport were
the first to originate more appropriate autos. They used electric batteries that
were not able to be recharged. These autos were only used for short distance
drives and were unrealistic options for most.

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Early 1900s

3. In the early 1900s the auto industry was finally taken seriously thanks to
Henry Ford. Ford's invention of the car fared well, especially amongst the
wealthy. It did not take long before the U.S. auto industry dominated the world
with no competition whatsoever. Not many were open to criticizing the
growing auto industry since it was changing all of the other industries as well
as opening up brand new job potentials.

1910 to 1916

4. The Model T was being produced by 1910, but the prices were extremely
rich and never started falling for a few years. By 1914 over a half a million
cars had been sold and the cost of one of these vehicles was near $1,000.
The cars had not become very popular because of the high cost. The tides
turned after World War I because the Americans generated a stream of
wealth that enabled more people to purchase a vehicle. This resulted in a
price drop to around $800 per car by 1916. Each year after, for about three
years, annual sales of these cars doubled and tripled.

1920s

5. By 1929 Ford was producing four million cars annually. The wholesale
price on average was just under $700 and the average retail price was just
under $900. By year's end there were over 23 million cars in the U.S. and
around 75 percent of the U.S. population owned one. It did not take very long
for people to start considering a car as a necessity and it became the
standard way of transportation.

Late 1900s

6. The U.S. dominated the auto industry for some three decades before the
Japanese and the Europeans started coming up with some inventions of their
own. By the 1980s the auto industry saw the surge of foreign automobiles and
great transition. There were transitions in demand and fluctuations in the
employment sector due to the presence of foreign competition.

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SCORPIO:-Product profile
19 June 2003……….launch in market

The Mahindra Scorpio is an SUV manufactured by Mahindra & Mahindra

Limited, the flagship company of the $6.3 billion Mahindra Group. It was the first
SUV from the company built for the global market. The Scorpio has been
successfully accepted in international markets across the globe, and will shortly
be launched in the US.

The Scorpio was conceptualized and designed by the in-house integrated design
and manufacturing (IDAM) team of M&M. The car has been the recipient of three
prestigious awards - the "Car of the Year" award from Business Standard
Motoring, the "Best SUV of the Year" by BBC World Wheels and the "Best Car of
the Year" award, again, from BBC World Wheels.

Manufacturer Mahindra and Mahindra Limited

Also called Mahindra Goa (in Europe)

Production 2002–present

Assembly Nasik, India[1]

Class Sport utility vehicle

Body style(s) 4-door SUV

2.1L Petrol I4 116 hp

Engine(s) 2.6L Turbodiesel I4 115 hp
2.2L M-Hawk Turbodiesel I4 120 hp

Transmission(s) 5 speed man./6 speed Auto / optional 4-wheel drive

Line Extension
CONTINUOUS DEVELOPMENT….

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 • All New Scorpio..

• In 2006..Hybrid Scorpio..

• Scorpio Pick-up..

• Diesel Electric-Hybrid SCORPIO..

• 2007..m Hawk Scorpio..

The making of the Mahindra Scorpio

Prior to the mid-nineties, Mahindra & Mahindra was an automobile assembly
company. The company manufactured Willys Jeeps and its minor modified
versions (modifications carried out in India). In 1996, the company planned to
enter the SUV segment with a new product which could compete globally. Since
M & M didn't have the technical know-how to make a new age product, they
devised a whole new concept among Indian auto companies. Roping in new
executives such as Dr. Pawan Goenka and Alan Durante who had worked in the
auto industry in western countries, the company broke the rule that says
automakers must design, engineer and test their own vehicles (spending millions
of dollars in the process). The new Mahindra Scorpio SUV had all of its major
systems designed directly by suppliers with the only input from Mahindra being
design, performance specifications and program cost. Design and engineering of
systems was done by suppliers, as was testing, validation and materials
selection. Sourcing and engineering locations were also chosen by suppliers.
The parts were later assembled in a Mahindra plant under the Mahindra Badge
(as Mahindra is a well known brand in India in the MUV segment). Using this
method the company was able to build a from scratch a new vehicle with virtually
100 percent supplier involvement from concept to reality for $120 million,
including improvements to the plant. The project took 5 years to move from
concept to final product.

In April 2006, the company launched an upgraded Scorpio – dubbing it the 'All-
New' Scorpio. In June 2007, Mahindra launched a pick-up version in India known
as the Scorpio Getaway.Recently, M & M has launched a face lifted version of
the model.

MARKETING STRATEGY

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Positioning..
Scorpio….the Car Plus..

• Rational Benefits: World class vehicle, good looks, car like comfort, great
value..

• Emotional benefits: Ownership experience of thrill, excitement and power..

• Relational benefits: Young modern, premium, city companion, extension of

lifestyle..

• Brand Promise: ‘Luxury of a car. Thrill of an SUV’..

Baseline..

“Nothing Else Will do”

• This baseline captures the essence of the brand, which is superiority and
uncompromising attitude. It also summarises the spirit behind the making
of the Scorpio.

Why “Scorpio”?

• Study of International brand names..

• Classification of names of mid-size cars..

• Analysis of international brand naming & strategy..

• New name were generated..

• Name researched through Qualitative & Quantitative techniques..

• Most liked name selected….“SCORPIO”

Brand Endorsement

• Mahindra….the mother Brand..

• No modern and young image..

• “Mahindra” could not contribute value proposition..

 Strategy: Shadow Endorsement

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 “Scorpio from Mahindra”

Advertising & Promotion

• “Car Plus” positioning..

• Need to force on product strengths..

• Tone & model of ‘modern & urban lifestyle’..

• Shoot in Australia to give international feel..

 This help to brought ‘International, premium, up-market brand’..

Public Relation

• First tool used for launching the Scorpio..

• Pre-launch excitement created..

• Media coverage..

• Massive coverage..

Pricing Strategy

• Premium Pricing….yet the universal brand..

• Avoid psychological pricing..

• Compete with mid size car like Accent, ikon, Corsa and UV’s like Qualis,
Sumo and Safari..

 Adopt penetrative Pricing strategy..

Distribution Strategy

• Target – Urban Customers..

• Strong presence in Metros & Urban areas..

• Launching….

 1st in metros..

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  20 Cities within 4 months..

 50 Cities within a year..

Promotion through Events

• Scorpio Speedster..Fastest bowler.

• Publicity through….

Scorpion King

• Gift to Bichung..

Use of Bollywood

• 1st Scorpio gifted to Ajay & Kajol..

• Main Hoon Na

• Slumdog Millenaire

• 2008..the 6 Speed SCORPIO..

Within three years of launch

• Scorpio capture 45% of the market..

• Sold 24,000 units in the year 2004..

SCARPIO:- Present scenario

Mahindra Scorpio Micro Hybrid SUV was revealed at the 10th edition of the Auto
Expo 2010 in India at New Delhi. This Scorpio SUV Special Edition is a rehash of
the already launched Micro Hybrid which was first revealed in 2008.

The New Scorpio Micro Hybrid SUV 2010 features some exciting changes like
stylish bumpers, designer sticker along with a vibrant look n feel interiors. The

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mechanism behind Micro Hybrid SUV switches off the SUV's engine if it is either
in an idle state for more than 10 seconds or it is in a parked state for 10 seconds.

The Micro Hybrid technology helps to lessen the fuel consumption by around 5%
and is also considered to be more "Green".The cry for the "Green" versions
seems to be picking pace now in the Indian Automobiles Space.

SCARPIO:- Future
Scorpio, Mahindra & Mahindra's new sports-utility vehicle (SUV), has been five
years in the making. For M&M, the Scorpio comes at a time when the company is
under strain from slowing sales in its major divisions — automotive and farm
equipment. While the automotive division is the more profitable of the two, it is a
fact that the farm equipment (tractors) division had, during years of good sales
performance, managed to raise the overall profitability of the company, offsetting
any sluggishness in vehicular sales. .

M&M will not find the going easy after the Scorpio launch. After investments of
over Rs 500 crore in design and development, manufacturing facilities and for
developing a vendor base for the new SUV, the company could feel the strain
from the increased pressure on its bottomline. The only hope is that the Scorpio
will generate enough volumes to enable the company turnaround its investment
in the new vehicle. But to expect new volumes for the Scorpio to come
substantially from the individual car buyer may be a touch of optimism that reality
may deny. The Indian passenger car market is also not comparable with that of
the US. There is a view that the trend amongst American car buyers to
increasingly prefer MUVs in favour of cars and that this would be emulated by
buyers in the domestic market. But this may turn out to be a case of wishful
thinking.SUVs are fast becoming a preferred choice in the mature, extremely
competitive US market, only amongst families contemplating a second or third
vehicle.

However, MUVs (multi-utility vehicles), which have traditionally been dependent

on the taxi segment in the Indian market, have been selling largely for the value-
for-money proposition that they represent — for their ability to transport a larger
number of passengers at lower fuel costs and quite literally for their multiple
uses. Naturally, the market for these vehicles was restricted to the institutional
and taxi segments of the market. While there has been some change in the
attitudes and profile of the MUV buyer, it is still largely bought by institutions and
taxi operators. That explains why the Tata Sumo is such a hit with taxi operators.
Priced extremely low, the Sumo is a classic, value-for-money, rugged, people
transporter, with no airs about focussing on rider comfort. However, for Tata

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Engineering the higher priced Safari, despite extensive advertising, does not
bring in volumes because it is positioned as a well designed, luxurious MUV and
was targeting the individual car buyer. So, while the taxi segment is loath to
spend about Rs 8 lakhs for the Safari, the individual car buyer with spare cash on
this scale are also small in number.

M&M has been in the utility vehicles business long enough now to have more
than a fair idea about what the buyer in this segment wants. But it cannot expect
a sudden surge in the number of individual buyers in the price segment that the
Scorpio has been positioned in. It is also a fact that the Scorpio, like the Bolero,
will not appeal as much to the taxi segment, which likes its vehicles with no frills.
Volumes may come from the institutional segment. However, it will be a tough
fight for volumes for the Scorpio.

Sure there are going to be a number of new entrants in this segment. The
Mercedes M-Class and the Mitsubishi Pajero have already been launched, Ford
is planning to launch the Ranger, Hyundai Motors is preparing for the Terracan,
General Motors is readying to launch the Isuzu Panther, and Suzuki its Grand
Vitara. These are MUVs and SUVs that will solely target the individual buyer in
the premium and super premium price segments. With the Scorpio, M&M is
targeting the individual car buyer in the mid size segment.

CONCLUSION-
 Thus ‘Scorpio’ has proved as a Milestone for M&M and the Indian
Automobile Industry. It has given a unique place To M&M in Indian market
because ,It was innovated with High quality, Reliability, flexibility, Style ,
Driving Comfort etc. In short it offered a customized product. hence,
again Operation’s components: Time, quality & technology made a
Success story.

ANNEXURE:-

Diesel Electric-Hybrid SCORPIO..

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2007..m Hawk Scorpio New Scorpio

Hybrid Scorpio Scorpio Pick-up.

BIBLIOGRAPHY

www.wikipedia.com

www.infoplease.com.

www.ehow.com

BUSINESS LINE -Newspaper

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