FUNDAMENTALS OF MANAGEMENT PROJECT

8/7/2019 FUNDAMENTALS OF MANAGEMENT PROJECT

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FUNDAMENTALS OF

MANAGEMENTPROJE

CT

Presented By:

ShiviKundra50158

Shreya Banerjee 50160

SumitPratapSingh 50176

VayamSood50187

BBS 1E

ACKNOWLEDGEMENT


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We thankMrs.PoonamVerma, Principal,

ShaheedSukhdev College of Business Studies,who has given us an opportunity to undertake this

work as a part of our curriculum.

Our sincere thanks to Mr.Ameet Sao, our subject

teacher, for his valuable guidance and continuous

encouragement throughout this project.

We would also like to thank our Librarian

Mrs.Vimlesh Sharma, for guiding us towards the

right sources of information.

Lastly we would like to thank our parents and

friends for their constant support throughout the

project.


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AUTOMOTIVE

SECTOR OF

MAHINDRA

AND

MAHINDRA

OBJECTIVE


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yTo find out the present status of the

automotive sector of Mahindra and

Mahindra.

yTo study the Product Line Mix of

Mahindra and Mahindra, focusing

on the Four Wheelers.

yTo conduct an Environment

Scanning and Market Research.

yTo enhance our analytical skills in

the field of practicalapplication ofMarketing.

CONTENT


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1] Evolution of Mahindra and

Mahindra

2] The flagship sector

3] The automotive sector

4] Product Line MixA)Introduction of four wheelers segmentB)Introduction of two wheelers segmentC)Various four & two wheelers models in indianmarket

5] Mergers and AquisationsA)Mahindra Acquires Majority Stake In Reva Renames It As Mahindra REVA Electric Vehicle

CompanyB)Mahindra and Mahindra acquires SSYANGYONGC)Mahindra and Renault(joint venture)D)Alliances

6] Organisation structure

7]Infrastructure

8] Physical Evidence

9] Corporate Social Responsibility[CSR]10] Dealing with Competition


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11] Customer Relationship Management

[CRM]

12] Market Research

13]The Marketing Environment

14] The Demographic Environment

15] Environment scanning

16]Marketing Mix

17]Strategies

18]Conclusion

EVOLUTION OF THEMAHINDRA AND

MAHINDRA


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Few groups can i enti as closel wit India's destiny and industrial progress

as t e Mahindra Group.

The birth ofMahindra & Mahindra began when K.C. Mahindra visited theUnited States of America as Chairman ofthe India Supply Mission. He metBarney Roos, inventor ofthe rugged 'general purpose vehicle' or Jeep and had aflash ofinspiration: wouldn't a vehicle that had proved its invincibility on thebattlefields of World War II be ideal for India's rugged terrain and its kutcharural roads? Swift action followed thought. The Mahindra brothers joined handswith a distinguished gentleman called Ghulam Mohammad. And, on 2nd,October 1945, Mahindra & Mohammad was set up as a franchise forassembling jeeps from Willys, USA. Two years later, India became an

independent nation and Mahindra & Mohammad changedits name to

Mahindra & Mahindra.

Since then, Mahindra & Mahindra has grown steadily in size and stature andevolved into a Group that occupies a premier position in almost all key sectorsofthe Indian economy.

The Flagshi SectorFollowing a structural reorganization ofthe Mahindra Group, six Strategic

Business Units were created, namely: Automoti e, Farm E ui ment,Infrastructure, Trade & Financial Services, Information Technology and

Systech.

The Automotive Sector has emerged as one ofthe leading arms ofthe MahindraGroup. Itis in the business of manufacturing and marketing utility vehicles andlight commercial vehicles, including three wheelers.


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Being a marketleaderin utility vehicles in India since inception, Mahindracurrently accounts forabout half of India's market for utility vehicles.Overthe years, the Group has developed a large product portfolio catering to adiverse customer base spanning rural and semi-urban customers, defencerequirements and luxurious urban utility vehicles.

In 2002, itlaunched the indigenously engineered world class Sports UtilityVehicle Scorpio, which bridges the gap between style and adventure, luxury

and ruggedness, and performance and economy.

Scorpio (declared to be the Car ofthe Year' by CNBC Autocar, BBC Wheelsand Business Standard Motoring) is the Automotive Sector's currentflagshipvehicle. Mahindra has many more products that have made it popularwith individuals and institutions in India and the world.

AUTOMOTIVE SE TORThe Mahindra Groups Automotive Sectoris inthe business of manufacturing and marketingutility vehicles and light commercial vehicles,

including three-wheelers. Itis the market leaderin utility vehicles in India since inception, andcurrently accounts for about half of Indiasmarket for utility vehicles.

Although created in 1994 following an organizational restructuring, theAutomotive Sector can trace its antecedents backto 1954. The iconic Jeepthatled American G.I.s to victory in World War II is the very same vehiclethat drove the Mahindra Group to success in

the Automotive Sector. Mahindra & Mahindra Limited, the flagshipcompany ofthe Group, was set up as a franchise for assembling generalpurpose utility vehicles from Willys, USA.

Overthe years, the Group has developed a largeproduct portfolio catering to a diverse customerbase spanning rural and semi-urban customers,defence requirements and luxurious urban utilityvehicles. In 2002, itlaunched the indigenouslyengineered world-class sports utility vehicle-Scorpio.


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The Group exports its products to several countries in Europe, Africa,South America, South Asia and the Middle East.

The Automotive Sector continues to be a leader in the utility vehicle segment

with a diverse portfolio that includes mass transport as well as newgeneration vehicles like Scorpio, Bolero and the recently launched Xylo.

Mahindra &Mahindras foray into the three wheeler segment with Alphaand Champion has also made it a leader in its category.

Mahindra Renault (MRPL) announced the launch of Logan, Indias firstwide body car, sporting a host of class defying features at an aggressive

price. The Logan redefines its segment in terms of spaciousness as well asperformance, technology with the latest generation dci common rail engine.It has been designed for the Indian market incorporating a contemporarystyling and design.

Mahindra Navistar Automotives Ltd. (MNAL), a joint venture betweenMahindra &Mahindra Limited and International Truck and EngineCorporation, will manufacture trucks and buses for India and e portmarkets. It will also provide component sourcing and engineering services t oInternational Truck and Engine Corporation.

MahindraNavistar (MNEPL) a second joint venture agreement withMahindra &Mahindra, Ltd. focuses on producing diesel engines forMedium and heavy Commercial vehicles in India.MNEPLs advanced dieselengines will power the full line of trucks and buses produced by MNAL.

PRODUCT LINE MIX


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T o wheelersFour wheelers

-Flyte -Xylo

-Rodeo -Scorpio

-Duro -Logan

-Bolero


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-Gio

PRODUCT LINE MIX

FOUR WHEELERS

'In April of 2007, the company built the Logan, its first passenger car withthe Mahindra Renault collaboration. With another joint venture, this timewith International Truck, USA, Mahindra built its first heavy trucksdepartment with the MahindraNavistar. Mahindra &Mahindra makes a fullrange of vehicles including MUVs, LCVs and three wheelers. It has morethan 20 models similar to the Scorpio and the Bolero in multi utility vehicles.

As India's leader in SUV production, M & M has moved fast inmanufacturing various SUV designs including the 5 passenger smallturbodiesel engine, the Mahindra Xylo in January of 2009 that has sold morethan 15000 models.

M & M also has car assembly plants in Bra il where the Scorpio Pik Upswith single or double cab pick upbody's are manufactured along with SUVs.

The company has a world wide reputation for e cellence and was rated asone ofIndias top 10 companies. Currently, The company is making plans to

sell the diesel SUVs and pick up trucks in the USA through an independentdistributor,Global Vehicles USA, starting in February of 2010


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y SCORPIO

TECHNOLOGY Collapsible steering column & split intrusion beams Crash protecting crumple ones and child locks Fire resistant upholstery Voice assist system, vehicle security system & remote locking/unlocking Tubeless tyres Poly coated grand deck

STYLE Bonnet scoop Air e tractor Two tone interiors Sporty decal Full wheel caps

COMFORT Tiltable steering Full fabric seats Individual armrests on 1st row seats Heating, ventilation & AC with rear vents ORVM manual remocon& swivel interior lamp

CONVENIENCE Power steering Power windows Spaces for storage on centre be el, IP & console

Mobile charging facility for the front and middle row seats Intelligent front wipers Follow me home' lamps Theatre style interior illumination Illuminated key ring Side step Head lamp levelling switch


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Front fog lamps

SEATING 5 Seater

Rational benefits: World class vehicle, good looks, car like comfort, greatvalue Emotional benefits: Ownership e perience of thrill, e citement andpower Relational benefits: Young modern, premium, city companion /e tension of lifestyle.

y XyloThe Mahindra XYLO is perhaps the mostcomplete car with lu ury comforts to enter theIndian market with everything that todayssedans offer and much more.

It is the first vehicle in the country which has been completely engineeredaround the customer. The XYLO offers an e traordinary level of lu uriouscomfort at a very cost effective price for prospective sedan buyers. Thefamed Mahindra DNA of'tough & rugged' meets an unprecedented level ofsophistication and lu urious comfort in the XYLO. The XYL O is the GreatIndian Traveling Machine and will redefine the future of road travel inIndia.

Technology, style, space, lu ury & comfort make the XYLO an apt choicefor sedan buyers.

The XYLO boasts a wide array of unique features: Flat Bed front seats

Digital Drive Assist System (DDAS)

Foldable flight trays

Surround cool dual ACs

Captain Seats

y Logan


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Logan was launched in India in 2007 with the concept to challenge thepriceValue equation e isting in the midsi e car category. Soon it becameone of the most successful car in the midsi e category and now issynonymous to comfort and performance. The Logan drives in loads ofrefinement in comfort, style and technology. Built around the Renaultsfamous Space Optimi ation Design, it redefines space and lu ury. With thewidest backseat, ma imum legroom and 3 separate headrests, it makes sureeven the third passenger enjoys the drive as much. Logan is one of the

safest drives on the road. Its geared to protect you with a honeycombdashboard and the front unit thats designed to resist even a head onimpact.

Key Milestone:

Launched the limited edition Logan Edge in Aug08 to offere clusivity and refinement to its customers.

Launched the New Collection Logan in Oct08 to enhance the imageand appeal of the car.

Launched the Logan Edge Connect, an e tension of the Logan Edge inMar09.

Introduced Logan CNG in Delhi.

The new But Why campaign launched in 2008 won the NDTV Car andBike Best Integrated Campaign of the Year 2008.

The first e port order was shipped to South Africa and Mauritius in 2008.

Inaugurated the first dealership in Nepal in Aug08.

y BOLERO


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Design and InteriorThis SUV has a robust and aerodynamic appearance. It is available inattractive metallic colors and the e terior has been primed with dynamicCED process to ensure rust resistance to the optimum level. The interiorsof the car has been artistically designed with attractive trims andmatching seats.

The manufacturer has provided a 4 speaker Kenwood music system,

power steering, powerful AC and comfortable antisubmarine seats to givema imum comfort its occupants. Other features include a 12V chargingpoint with mobile holder, arm rest in the middle row and special spacefor placing maga ines or maps and bottles.

Variants and PriceMahendra Bolero is available in eight variants Bolero SLX, Sport , DX,DI, XLS, XL, Invader and Camper.

The price of this SUV ranges from 4.26 Lakhs 6.19 Lakhs (e

showroom)

EngineThe 2500 cc, 4 stroke diesel engine delivers unmatched power and the 5speed transmission ensures very low operating costs and better mileageof the car. Mahindra Bolero delivers ma imum power of 72.5 hp at 4000rpm (DIN 70020) and peak Torque of 15.5 km m at 2000 rpm

SafetyMahindra Bolero is fitted with strong wheelbase to provide greater

stability and better grip on the roads. It has a central locking system andseat belt/door open warning to ensure the safety of the users. Front andsides of the car are sturdy enough to withstand collision to a certaine tent.

y GIO


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TheMahindra Gio has undergone rigorous test runs and has been validatedon all performance, safety and reliability parameters. This brand newoffering from Mahindras commercial vehicle stable also boasts of severalclass leading features, including the best in class fuel efficiency, car likecontrols and features, and a trendy & stylish look. This value for moneyload carrier scores highly on various parameters, including affordability,space, comfort and safety. It is also the most economical vehicle in the

small CV industry, making it ideal for intra city operations.

TheMahindra Gio is being manufactured in Mahindras Haridwar plant andis being launched in a phased manner. It will be available initially in West,

North and select Eastern states and shortly thereafter in the rest of thecountry.

Perfect for intra city movement

TheMahindra Gio is most suitable for intra city operations. Its compact 0.5ton cargo bo ensures ma imum utili ation of space. A small turning radiusof 3.8 metres, dashboard mounted gear shift er and car like steering wheelallows this nifty 4 wheel load carrier to negotiate the narrowest of roadswith ease.

Exceptional value for money

Indias first Compact Truck is powered by a high performance 9.1 HPKohler engine, from Kohler, USA, which provides class leading mileage of27 Kmpl. The Mahindra Gio also offers e ceptional value for money with alow maintenance cost which is as low as that of a three wheeler. Thesefeatures, coupled with an attractive price tag and better load optimi ation


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make the MahindraGio a great purchase.

Cares for your comfort and safety

MahindraGio offers greater comfort even on long trips. This stylish

Compact Truck boasts of several class defining features, includingadjustable cushioned bucket seats, roll down windo ws offering moreventilation and a car like Macpherson front suspension, ensuringcomfortable ride and handling. A tall and wide cabin with e tra leg roomallows easy entry and e it, adding to overall comfort. Easy to operate carlike controls and an easy to read instrument panel enhance the MahindraGios driving pleasure. A semi forward cabin with a crumple one makes

the MahindraGio a safe vehicle, while a balanced structure provides morestability leading to a safer drive. Multi focal reflector halogen lights, sideindicators and bigger rearview mirrors offer optimum visibility.

Strong performance

A strong gear bo 4 forward and 1 reverse , coupled with the powerfulKohler engine gives the Mahindra Gio good pickup & load carryingcapacity, while spring leaf suspension with a rigid a le enhances loadstability. The load body comprises of a fully corrugated 5ft cargo bowhich is strong and long lasting.

Attractive style

TheMahindra Gio doesnt just deliver on performance and economy. It isalso one of the most stylish vehicles in its class. The signature Mahindrafront grille on the flat front cabin adds a distinctly macho look to this smartCompact Truck. Five youthful shades Peacock Blue, Royal Red, GoldenYellow, Diamond White and Sporty Green ensure that the MahindraGiocuts a striking figure on city roads.

y FARM EQUIPMENTS

Mahindra Tractors, the farm equipment division ofMahindra & Mahindra,builds and sources tractors that are sold worldwide across si continents.

[1]

Mahindra is also among the top three tractor manufacturers in the world[2]

.


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Mahindra has a huge consumer base in India, China and America and agrowing base in Australasia. The company builds more tractors in India thanany other manufacturer, [3] and has the capacity to build 150,000 tractors ayear.[4]In 1963, M&M formed a joint venture with International Harvestertomanufacture tractors carrying the Mahindra nameplate for the Indian

market.[5]Armed with engineering, tooling and manufacturing know howgained from this relationship, M&M developed its first tractor, the B

275.Mahindra compact tractors and utility tractors are some of the toughest,most durable on the planet. Mahindra Tractors with sales of nearly 85,000units annually is one of the largest tractor companies in the world, and isnumber one in sales in India the largest tractor market in the world.

[2]To

e pand into the growing tractor market in China, Mahindra acquired majoritystake in Jiangling. To raise awareness about Mahindra in the US, MahindraUSA announced its new sponsorship in the NASCARNationwide Series withR3 Motorsports, which is participating with a #23 Mahindra Tractors

Chevrolet. The car will be driven by Robert Richardson, Jr.Mahindra USA,Inc. announced a 17 race primary and 18 race associate sponsorship for the2009 NASCARNationwide Series.

[6]With this sponsorship, Mahindra was

the first Indian company to sponsor a car in NASCAR. In 2008, Mahindrawas a sponsor of the McDonald Motorsports team which ran the #81 car inthe NASCARNationwide Series.

TWO WHEELERS

The Mahindra Group's foray into the two wheelersegment began with the acquisition of the business

assets of Kinetic Motor Company Ltd. (KMCL)e tending Mahindra's heritage and pedigree intothe two wheeler space. The Two Wheeler SectorofMahindra designs and markets a full range ofscooters and motorcycles for the Indianand global markets. Thus, establishing a robust and end to end two wheelerbusiness in every segment of the industry. The company has a state of the artmanufacturing facility at Pithampur, nearIndore in Madhya Pradesh. The

plant, products and processes are ISO 9001 certified from DNV.

Mahindra &Mahindra's stringent quality standards, which are a part of itsconsumer centric approach, will be reflected in all its products. The compan yuses the design and engineering services of its affiliates including the Italybased Engines Engineering. This ensures product development work thatdelivers technologically superior products with latest styling to its valuedcostumers. Engines Engineering offers speciali ed services in the area of


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motorcycle & scooter design and development. Some of the namesassociated with Engines Engineering include Ferrari, Ducati, Honda, andYahama. The motorcycles developed by Engines Engineering have indeedmade a mark in the Moto GP Circles.

Mahindra also has a partnership with Taiwan'sSanyangIndustry CompanyLimited (SYM). A US $ 1 billion automobile giant, SYM is a leadingmanufacturer of two wheelers, including scooters, motorcycles and ATVs.SYM has a complete, advanced research and design facility that developsproducts from concept upto production. The association with SYMtranslates into cutting edge technology and best products from Mahindra.

Backed by the Mahindra Groups strongR&Dsupport, Mahindra Two Wheelers plans tomarket a range of scooters, value engineeredmotorcycles and high end motorcycles for theIndian and global markets. Within the overalltwo wheeler strategy forMahindra TwoWheelers the product profile will range from topend motorcycles to entry level bikes. The rangewill also have a variety of scooters fulfillingdifferent needs. In keeping with this strategy,Mahindra introduced the Flyte as its first twowheeler offering across all markets in India inApril 2009.

yMahindra Rodeo

The perfect choice for the young urban male, the Mahindra Rodeo is a highperformance, feature packed scooter with a distinctly macho demeanour.


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A robust 125 cc engine offers 8.0 bhp of power, making it one of the mostpowerful vehicles in its class. E cellent pick up and smooth accelerationensures agility even in dense traffic and low maintenance costs.

y MAHINDRA DURO

With its stylish good looks and powerful 125 cc engine, the Mahindra Duronot only caters to the transportation needs of the entire family but is also thebest value for money product in its category as it provides the customer withthe highest value per unit of engine cc.

y Mahindra Flyte

In 2009, Mahindra kick started its two wheeler foray with the introduction ofthe Flyte as its first product offering across India. With its innovative

features backed with power packed performance and contemporary styling,Flyte is an ideal product offering for its target audience - the Youth.


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DOMESTIC OPERATIONS

The Automotive Sectoris the marketleaderin utility vehicles in India since

inception and currently accounts for about half of Indias market for utility

vehicles with a product portfolio that ranges from rugged, mass-transport utility

vehicles to personal segment sports utility vehicles like the Scorpio.

Mahindra has recently launched the Xylo, perhaps the most complete car with luxury comfortsenterthe Indian market with everything thattodays sedans offer and much more.

While the world-class Scorpio (declared to be the Car ofthe Year by CNBC Autocar, BBCWheels and Business StandardMotoring) is the Automotive Sectors current flagship, it hasmany more products that have made it popular with individuals and institutions in India and theworld. The Automotive Sector ofthe Mahindra Group is currently presentin the multi-utilityvehicle, light commercial vehicle and three-wheeler segments. Now, with its joint ventures, it

will have a presence in the passenger car and the medium and heavy commercial vehiclesegments too.


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MERGERS AND AQUISATIONS

Mahindra Acquires Majority Stake InReva Renames It As

Mahindra REVA Electric Vehicle Company

There has been talks ofMahindra And Mahindraplanning to to acquire the RevaElectric Car

Company ofIndia. The planning has been e ecuted andMahindra has released an official press

release about the acquisition of a majority stake in Reva Electric Car Company India. The new

company will now be renamed as Mahindra RevaElectric Vehicle Company.

The highlights of this deal are :

y Mahindra to have 55.2% equity in REVA Electric Car Company (REVA).y Company to be renamed Mahindra REVA Electric Vehicle Company (Mahindra REVA)y Mahindra REVA to leverage Mahindras vehicle development e pertisey Mahindra REVA electric technology to be deployed inMahindra vehiclesy Dr PawanGoenka elected Chairman of the newly constituted board


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MAHINDRA AND MAHINDRA ACQUISITION

OVER SSYANGYONG [a south korean motor

company]

(M&M) is in the last leg to complete its acquisition of South Korean sports utility v ehicle (SUV

maker, SsangyongMotors . It has roped in South Koreas largest legal firm Bae Kim & Lee to

draft the final share purchase agreement to firm up the deal. The company plans to sign the fina

agreement by the second week ofNovember.

The acquisition would help M&M launch South Korean companys flagship SUV models

Re ton II and Korando C into the Indian market.

M&M and Ssangyong officials are meeting in Seoul ne t week to discuss the bid adjustment

price based on details emerging from due diligence. Analyst tracking the industry said it is

e pected to be in the price band of $500 550 million. Top e ecutives from M&M, including its

automotive division head PawanGoenka, are e pected to be present when the final agreement is

signed in Seoul ne t month.

The company has developed an all new platform the C200 SUV, which will be the first

monocoque chassis produced by the company. M&M is also in the process of picking internal

candidates who will work with the Korean management.

Mahindra and Renault- Joint Venture

The automobile groups Mahindra & Mahindra and Renault have decided to join forces to

produce and commercialise Logan, developed by Renault, in the Indian market in 2007. The tw

groups concluded a framework agreement for setting up a joint venture in India with Mahindra

retaining a 51 per cent share and Renault 49 per cent. The JV will be called Mahindra Renault

Ltd. The estimated project amount will be 125 million euros.

The project provides for the production of Logan from the firs t half of 2007 in a world class

Mahindra & Mahindra facility. The capacity of the factory for Logan will be 50,000 cars per

year. The state of the art factory will offer a stamping shop, a paint shop with a top quality

pretreatment and an assembly line specific for Logan. The quality ofIndian parts manufacturer

and the presence of a number of international suppliers in India will allow a rate of localisation

of 50 per cent from the beginning of the project.


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A right hand drive version of Logan will be developed by Renault in partnership with Mahindra

to meet the needs ofIndian and other right hand drive markets. Logan will be marketed under

the brand ofMahindra Renault. Mahindra & Mahindra will use its e tensive dealer network to

distribute the Logan in India. With a population of more than 1 billion inhabitants, India has

e perienced strong economic growth, passing 8% in 2004. The automobile market progressed b68% between 1998 and 2003, reaching 1,040,000 vehicles in 2004 with a marked preference for

small and medium segment cars (A,B & C).

With this agreement, Mahindra &Mahindra, the fourth largest Indian vehicle maker and a

specialist in utility vehicles (SUV, Pick up) will e tend its range to passenger cars, a

particularly lively market segment in India. Market leader in India for SUVs, with market share

of 49% in 2004 in UV segment, it hopes to establish its presence in the car market. Present in

diverse sectors of the Indian economy, (telecommunications, information technology,

agricultural material, financial services), the Mahindra & Mahindra group is strengthening its

automobile arm.For Renault, entering the Indian market, where European manufacturers, e cepfor Fiat and Skoda, have little presence, constitutes a major step in its international developmen

Including India, Logan will be produced in si countries along with the projects already launche

or decided: Romania, Russia, Morocco, Colombia and Iran. The US $ 2.5 billion Mahindra

Group is the market leader in multi-utility vehicles and tractors in India. With over 55 years of

manufacturing experience, the Mahindra group has built a strong base in technology,

engineering, marketing and distribution. It also has a significant presence in key sectors of the

Indian economy. These include trade and financial services (Mahindra Intertrade, Mahindra &

Mahindra Financial Services Ltd.), automotive components, information technology & telecom

(Mahindra British Telecom), and infrastructure development (Mahindra GESCO, MahindraHolidays & Resorts India Ltd.).

Renault is an international automobile group acquiring a global dimension from its alliance with

Nissan, the acquisition of the Romanian carmaker Dacia and the South Korean Samsung Motor

Renault pursues a strategy of profitable growth thanks to a high quality, innovative range of

vehicles and services. For almost 50 years, Renault has made safety a company value, and today

offers the safest range of cars with seven "5 star" cars tested by Euro NCAP. Employing 131,00

people around the world, Renault sold 2,490,000 vehicles in 2004 and reali ed a turnover of 40.

billion euros for a net profit of 3.5 billion euros

Mahindra Renault Joint Venture Ends!

Mahindra & Mahindra and Renault on Friday said they have restructured their joint venture formaking the sedan Logan in India, following which the Indian firm will buy out its French partnefor an undisclosed sum.


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M&M will buy outRenaults 49 per cent stake in Mahindra Renault Pvt Ltd, thus becoming a100 per cent subsidiary, the two companies said in a joint statement.

Renault will continue to supportM&M and Logan through a licence agreement and supply key

components, including engine and transmission, the statement said.

Renault in India, Solo

Renault, keeping to its words has splashed adverts in MajorNewspapers today asking forDealers forits New Innings in India as an IndividualCar maker. Renault and Mahindra haddecided to end their 3 year old partnership and amicably decided to go separate ways. Mahindrsurprisingly gotto keep the Logan.

With the Logans So-called failure will, may be, be behind Renault when they set foot withatleast 5 new launches in the next 2 years to come by. It sure wont be any short of exciting forany automobile loverlooking atthe lineup Renault has worldwide.

The Models we are sure to see before others would be Renault-Samsungs Fluence and TheRenaultKoleos.

M&M, Renault BackTogether! Logan to be a Small car!

After months oftrouble, French carmakerRenault and homegrown Mahindra & Mahindra(M&M ) are all setto resolve their differences and announce a new restructured plan fortheiroint venture.The revamp will see the Logan sedan being repositioned as a small car shorterin

length,with a compact petrol engine.

The two companies,which had joined hands to sellthe no-frills Logan, had been atloggerheadsafterthe model failed to take off and became a lossmaking venture for both.Renault andMahindra were notimpressed by the poor show ofthe modelRenaults firstin India and M&Msolo in the passenger car segment and appeared to have engaged in a blame-game forthe failurAgainstthe original projection of selling 50,000 units annually,the modelis selling only 5,000

units per annum.

Now,Logan will continue to be manufactured atM&Ms plant atNasik and the Indian utilityvehicle major will be retained for selling the carthrough select outlets ofits dealer network.


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The Logan will now be positioned in line with the small car definition of the Indiangovernment,attracting a lower e cise duty of 10%,against 22% at present,which in turn will leadto lower price.Forthis,the companies will reduce its overall length below 4 metres and bringdown the petrol engine capacity to under 1200cc,against the current si es of 1400cc and1600cc.The diesel engine car,that is strapped with a 1500cc engine,will continue.

This was M&Ms long pending demand as it felt that the car can do much better in India if it isrepositioned as a small car.Renault,on the other hand,had bee n reluctant to tweak the Logansspecifications in only one market.

Shortened Dacia Logan in Pictures

Alliances

Now, with its joint ventures, the Automotive Sector will

have a presence in the passenger car and the medium andheavy commercial vehicle segments too.Mahindra's a JV with French automakers Renault, has seen them launch the spacious sedan,Logan. With its class defying features at an aggressive price, it has already managed to makeits mark in the Indian passenger carmarket.

A partnership with International Trucks, will now see Mahindra manufacturing trucks andbuses for sale in IndiaandE portmarkets.

TheWayAheadWith continual upgrades, product innovations and fruitful alliances, Mahindra has ensured aregular churn out of good quality, reliable and value for money prod ucts to establish animpressive stable of vehicles.

Having aggressively established itself in the domestic utility vehicle market, MahindraAutomotive is all set on a global roadmap to conquer the internation al arena.


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ORGANISATION STRUCTURE

Mahindra & Mahindra Limited (M&M) is the flagship company of US $ 2.59 billion Mahindra

Group (F04 US$ 1.96 billion, which has a significant presence in key sectors of the Indianeconomy. A consistently high performer, M&M is one of the most respected companies in thecountry.

Set up in 1945 to make general purpose utility vehicles for the Indian market, M&M soonbranched out into manufacturing agricultural tractors and light commercial vehicles (LCVs). Thcompany later e panded its operations from automobiles and tractors to secure a significantpresence in many more important sectors.

M&M has two main operating divisions Automotive Division manufactures utility vehicles,agricultural tractors and implements that are used in conjunction with tractors, and has also

ventured into manufacturing of industrial engines. Tractor Division has won the coveted lightcommercial vehicles and three wheelers. Tractor (Farm Equipment) Division makes DemingApplication Pri e 2003, making it the only tractor manufacturing company in the world to secuthis pri e. The Company has recently entered into a JV with Renault of France for themanufacture of a mid si ed sedan, the Logan, and with International Truck & EngineCorporation, USA, for manufacture of trucks and buses in India.

Infrastructure

Thirty five showrooms across the country were redone entirely with the same look and identity

and a dcor built around movement, technology and sportiness. The theme focused on giving th

customer a memorable e perience. The showroom revamp was centered on the intention to

provide a uniform customer e perience at all the touch points and to provide the customer with

unique e perience and not just a product. Therefore the back office would re main outside

the customers line of vision because the customer would be concerned with the product and no

with the paperwork.

PHYSICAL EVIDENCE

The Physical Evidence is created by displaying physically the product. Along with that creating

an atmosphere for the customers where in they feel the presence of product. Toyota creates a

powerful physical evidence for its customers through its Showrooms, Hoardings, Logo etc. All


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the showrooms are designed on a common platform. The interiors of all the showrooms across

India are the same. The designs for the same are created by a team of Professionals in this field.

The designs are prepared very carefully keeping into consideration various factors such as

customers tastes and preferences, likes and dislikes etc. You will always find a Toyota

showroom having the Toyota Bill Board outside with white base and red foreground. This

creates a physical presence and people can feel the product.

CORPORATESOCIALRESPONSIBILTY[CSR

Corporate Social Responsibility has always been an integral part of the Mahindra Group's vision

and the cornerstone of our Core Value ofGood Corporate Citi enship.Keshub Mahindra, Chairman

TheMahindra Group defines Corporate Social Responsibility as making socially responsible

products, engaging in socially responsible employee relations and making a commitment to thecommunity around it. At the Mahindra Group, Corporate Social Responsibility is not just a dutyit's a way of life.

In 2005, the Group celebrated its 60th anniversary by renewing its commitment to CorporateSocial Responsibility. It pledged to dedicate 1% of its profit (after ta ), on a continuous basis

towards Corporate Social Responsibility. A unique kind of ESOPs Employee Social Optionswas launched to enable Mahindra employees to involve themselves in socially responsibleactivities of their choice. The Group also announced a special gift: to provid e free cochlearimplants to 60 profoundly hearing impaired, under privileged children.

In addition to giving impetus to the Nanhi Kali project for the girl child and the Mahindra AllIndia Talent Scholarship for the economically disadvantaged, the Mahindra Group is planning tset up two Mahindra Pride Schools. These schools will offer a variety of courses, with anemphasis on employability, including training forInformation Technology, Retail, AutomotiveEngineering etc. They will provide new skills and c apabilities to the weaker sections of society

particularly the scheduled castes and scheduled tribe youth. While these projects are alreadyunderway, plans for more social initiatives are on the anvil.

CUSTOMERRELATIONSHIPMANAGEMENT


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[CRM]

It is essential forAuto OEMs to keep in close contact with the end consumers, build brandloyalty and provide total customer e perience. Implementation of centrally hosted Mahindra

DealerManagement System (DMS) covers Marketing, Pre sales, Sales, Services, Spares,Warranty, Dealer Financials, Analytics, CRM and Business Intelligence. The pilot involving 50dealer locations initiated last year is in the final phase of implementation, to be followed by rollout across Mahindra Dealer Community. Appropriate infrastructure including dealer connectiviis being established.

Implementation of SAP DMS CRM has provided an additional opportunity to ensure processstandardi ation and compliance across all dealers ofM&M. Enhanced the ability to integrate achange more easily across the entire dealer chain. Facilitated better customer informationmanagement, end customer database, along with seamless integration with back end SAPsystems.

DEALING WITH THE COMPETITION

PROCESS

The various processes involved in getting available the product from the manufacturer to the en

consumer are to be efficiently performed by the company. The processes start when the custome

is contacted by the Sales Personnel of the Dealership or the customer contacts the Dealership if

he is interested to buy a Corolla. The data regarding the various customers can be had from

various sources of data available through different agencies which speciali e in providing data.

After the call is made, an appointment is fi ed. The Sales E ecutive prepare s for the meet. He

collects all the possible information which would be needed for the meeting i.e. data about

thecustomer, details about the car, ma imum permissible discount stru cture, finance options,

delivery terms, free accessories which will be provided to the customer. The sales personnel wi

find out that what is the present vehicle used by the customer, his present buying power,

satisfaction level, seriousness in buying etc. Along with that he will also find out his e act need

desired level of satisfaction, lifestyle patterns etc. Sales personnel also ask certain questionsthrough which he comes to know about the various factors he wants to know. He asks both open

as well as closed ended questions. With the help of these questions, he can come to know the

various reasons due to which he is buying that car. These can be Performance, Safety, Comfort,

Driving Pleasure, Appearance etc. These processes either lead to completion of sales call or

sometimes unfortunately leads to unsuccessful sales call w hich could not be competed.


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MARKET RESEARCH

Market research often refers to either primary or secondary research. Secondaryresearch involvea company using information compiled from various sources, which is about a new or e istingproduct.. Primary market research involves qualitative research (such as focus groups or one onone interviews) and quantitative research (such as surveys) as well as field tests or observationsconducted for or tailored specifically to that product. Primary resear ch, which is also called fielresearch or original research, is useful for finding new information and getting customers ' viewon products.Having defined the competitive framework, the ne t task undertaken was that ofanaly ing the consumer. Consumer segments of B and C category car buyers wereanaly ed in terms of their e pectations from a car, their perceptions about cars and

their relationship. Proprietary techniques of research, of the advertising agencyInterface Communications, like Mind &Mood, ICON and VIP were used tounderstand this consumer. The findings were: * Si e matters big si e stands for status* Consumers seek latest technology* Imagery but at affordable prices* The sheer thrill and passion of driving an SUV * Power of the vehicle makes a statement* But along with the others, lu ury was a very important parameter* International vehicles define imagery

SUVs like Pajero, Land Cruiser and Prado are seen as urban vehicles for the rich andfamous consumers aspire to own these vehicles as the imagery of these vehicles hasbecome very desirable. Consumers want to consume premium imagery at prices affordable to them

The Marketing Environment

Marketing environment consists of the actors and forces outside marketing that affect marketing

managements ability to build and maintain successful relationships with target customers. Themarketing environment offers both opportunities and threats. The environment continues tochange rapidly. The marketing environment is made up ofMicro environment andMacroenvironment.

TheMicro environment consists of the actors close to the company that affect its ability to serveits customers. These actors are: the company, suppliers, marketing intermediaries, customer


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markets, competitors and publics.

TheMacro environment consists of the larger societal forces that affect the microenvironment.These forces are: demographic, economic, natural, technological, political and cultural forces.GM STUXX

THE DEMOGRAPHIC ENVIRONMENT

The demographic position will be on the United States. Since, the target market is for the middl

class; it will provide a boost for the 32% of the total population. This product will produce a

superior value to customers who always value the brand. Also, it will keep the popularity of the

product at their trend. In this case, more and more customers will be able to keep this product if

it satisfies their condition. Additionally, the middle class group will be loyal to this productbrand and as generation goes by; this product will be there forever. On the other hand, this

product is also designed for students, and working class people. This is due to the fancy and

environmental design

Students will be so grateful to have fancy car while the working class group will tendto afford such an affordable environmental car design.

ENVIRONMENT SCANNING

THE NATURAL ENVIRONMENT

This product is basically designed to reduce the carbon emission from fuels and help to preserve

our environment. It is very important to design such car to help decrease the rate of carbon

dio ide from the air and provide a better condition to tackle glob al warming. This car will

provide a boost to the natural environment because it is safer and has an image to be friendlier t

the environment itself. In this case, more and more people will tend to buy such car to protect th

environment by reducing the carbon emission to the air.

THE ECONOMICAL ENVIRONMENT


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The world is facing a shortage of fuel and it has become an economical crisis to everycountry.

This is evidence as the price of fuel is increasing and the probability of the price of a barrel to

increase at any day is very high. Therefore, this product will help customers to save money

because it consumes less fuel. The fuel consumption is one of the best criteria based on this

product. On the other hand, customers will be able to satisfy with this ki nd of product because

is not too e pensive and everybody has the privilege to afford one. This product will satisfy the

superior value of all different customers since it has a very good design to solve to fuel shortage

less e pensive, and can be affordable to anyone.

THE TECHNOLOGICAL ENVIRONMENT

The fastest growing of information technology helps this product to be at its best. Its design is

basically provided with the help of information technology. Looking at its design, this product

benefits a lot from the technological sectors. This proves that thisproduct is favourable to the

environment. Also, this product can be modified or even upgraded to the standard where it will

be suitable at any environmental condition. The Information technology is v ery effective in

letting this product to be very efficient. In this case, it helps customers to satisfy this kind of

product in this technological environment.

THE SOCIAL AND CULTURAL ENVIRONMENT

It is believed that protecting the environment is a great concern. Therefore, this product is

purposely designed to be environmentally friendly. As a result, most people in the United States

and elsewhere are willing to offer such kind of product to save t he environment. If more and

more people are keen to buy such kind of product then the environment would be safe at any

cost. Consequently, people will be more supportive to save what is best for the communities and

the environment.

AUTOMOTIVE

MARKETING MIX

A Marketing mi is the division of groups to make a particular product by pricin


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product,branding, place, and quality. Although some Day1 marketers have added other P's, su

as personnel, packaging and physical evidence, the fundamentals of marketin g typica

identifies the four P's of the marketing mi as referring to:

"MarketingMi " is set of correlated tools that work together to achieve company'sobjectives, they are: product, price, promotion, place.The set of controllable tactical marketi ng tools, product, price,place and promotionthat the firm blends to produce the response it wants in the target market:

Product A tangible object or an intangible service that is mass produced or manufactured a large scale with a specific volume of units. Intangible products are often service based like thtourism industry & the hotel industry. Typical e amples of a mass produced tangible object athe motor car and the disposable ra or. A less obvious but ubiquitous mass produced service iscomputer operating system.

PriceThe price is the amount a customer pays for the product. It isdetermined by a number of factors including market share, competition, material costs, product

identity and the customer's perceived value of the product. The business may increase or

decrease the price of product if other stores have the same product.

PlacePlace represents the location where a product can be purchased. It is often referred to the distribution channel. It can include any physical store as well as virtual stores on the Interne

PromotionPromotion represents all of the communications that a marketermay use in themarketplace. Promotion has four distinct elements advertising, public relations, word of moutand point of sale. A certain amount of crossover occurs when promotion uses the four principalelements together, which is common in film promotion. Advertising covers any communicationthat is paid for, from television and cinema commercials, radio and Internet adverts through primedia and billboards. One of the most notable means of promotion today is the PromotionalProduct, as in useful items distributed to targeted audiences with no obligation attached. Thiscategory has grown each year for the past decade while most other forms have suffered. It is theonly form of advertising that targets all five senses and has the recipient thanking the giver.Public relations are where the communication is not directly paid for and incl udes press release

sponsorship deals, e hibitions, conferences, seminars or trade fairs and events. Word of mouth any apparently informal communication about the product by ordinary individuals, satisfiedcustomers or people specifically engaged to create word of mouth momentum.


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STRATEGIES

GENERAL ATTACK STRATEGY

FRONTAL ATTACK: the attacker matches its opponents product, advertising, priceandDistribution

Pricing Strategy:to be a premium brand yet having universal appeal.Scorpio was tocompete with the midsi e cars like Hyundai Accent, Ford Ikon, Opel Corsa, Maruti Su ukiEsteem on the one side and UVs like Toyota Quails, Tata Safari and the Tata Sumo on the other

Scorpio adopted the penetrative pricing strategy positioned in th e psychological price barrier ofRs. 5 7 Lakhs.

Media Strategy*Dramatic and high impact launch


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* High visibility

* Push brand image even by the media vehicleBuilding impact through multiple media

* PR, Mass Media, Direct Marketing, Events


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CONCLUSION


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BIBLIOGRAPHY\Wikipedia

Mahindra and mahindra official side

Autodrive maga ine

BBC News site


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Documents

FUNDAMENTALS OF MANAGEMENT PROJECT