Brand Positioning - Scorpio

By Group 2

About the Company

• M&M was established in 1945 & listed on BSE in 1956.

• Initially manufactured Willys Jeeps and its minor modified versions.

• Production of LCVs at four manufacturing plants.• Acquired International Tractor Company of India

in 1977 & gained the brand ”Mahindra”.• Had huge turnover of Rs 46 b & net profit of

Rs1.46 b.

Continued…

• After 1994, it was restructured such that the flagship co had 2 operating divisions:– Automotive Sector– Farm Equipment Sector

• Since 1997, it realigned its product and brand portfolios prompted by changing environment.

• The Scorpio was conceptualized and designed by the in-house integrated design and manufacturing team of M&M.

• "Car of the Year" award from Business Standard Motoring as well as the "Best SUV of the Year" and the "Best Car of the Year" awards, both from BBC World Wheels

Automobile Sector in India

• Total market size in 2003- 0.73 m vehicles.• Passenger car segment was divided into 2 broad

segments: Personal cars &Utility Vehicles.• Utility Vehicle Segment divided:

Pickups, soft tops and hard tops

• Car segment was classified into three categories:– Economy Segment– Premium Segment– Super Premium Segment

Product Portfolio • Product Range consisted of Three Wheelers (Champion) LCV (Load king) Utility Vehicles• Utility Vehicle consisted of Soft Top Vehicles Hard Top Vehicles Pick up vehicles• M&M vehicles sold in semi urban & rural areas, as they were designed for rough terrains of India• Major Users: Army, Police & Paramilitary Forces

Utility Vehicle Market Trends

1998 1999 2000 2001 2002

Soft Top Vehicle Industry Sales 57665 41385 40724 23386 20191

M &M’s Sales 49261 34080 32945 18645 15520

M &M’s Sales(%) 85 82 81 79 77

Hard Top Vehicle Industry Sales

72171 62021 66140 85696 84416

M &M’s Sales 17282 23204 25205 26477 28360

M &M’s Sales(%) 24 37 38 30 33

M&M’s Urban Brand Image

• Inspite of wide product portfolio, they did not have a significant presence in the fast evolving urban markets

• Hitherto, was loosing its market share in the urban market• Brand Image for M&M was Tough, Reliable, Ruggedness, Easy

to maintain & economic vehicles• The company’s product were not perceived as technologically

advanced • They wanted to change the Brand Image for Mahindra to

make it more relevant to the “value for money” oriented young urban Indian consumers

Brand Identity Prism- Mahindra & Mahindra

RELATIONSHIP CULTURE

USER IMAGE

SELF IMAGE

PERSONAPHYSIQUE

Dependable

1 Institutional – police, army2 Rural guy, middle class

Prudent, macho & tough

Laid Back, Family

Tough, economical, jeep looks, all terrain, diesel, noisy

Down to earth, tough, Indian, not young ,son of the soil

Rationale – New Product Activity

Objectives To continue dominating the rural & semi urban markets with

a range of products catering to the low cost mass transportation needs

To develop a strong presence in the urban markets with a range of value for money products

• To keep these objectives , the company had little finances ; hence it was imperative to keep the cost to minimum

• Project Scorpio was launched in 1997 and an exercise to rationalize the brand portfolio of the company was also undertaken

Rationalizing the Brand Portfolio• MUV and SUV are used for 4 specific purposes

by customer:Type Usage Examples

Stage Carriage Transport goods and people as a taxi. Usually run on “per person” basis.

M&M three wheeler - Champion

Contract Carriage Similar to Stage carriage except they work on contract and “per kilometer” basis.

Tata Sumo , M&M – Marshal and MaXX

Goods Carriage Pick-up vehicles, light duty vehicles(mini-trucks) and heavy duty vehicles(trucks).

M&M Loadking, MaXX Pickup

Personal Carriage Personal transportation needs of individuals

Tata Safari, M&M Armada

Rationalizing the Brand Portfolio (Contd..)

• Market realities prompted to take a re-look at their products and the brand portfolio, upgrade some products and reposition some brands.

• Directions also pointed towards introduction of new products to compete in emerging market conditions.

• Armada, given its features and designs, had limited impact in the urban market and thus it was redesigned to address the personal carriage market and phase it out once the new product was in place.

Driving into the cities

• Consumer research showed that despite urbanization, people preferred to take holidays as extended families.

• The status of an individual was increasingly being assessed by the type of vehicle.

• Armada was redesigned as Bolero and offered good appearance, car-like comfort and ruggedness. The brand promise was “luxurious toughness”.

Driving into the cities(Contd..)

RELATIONSHIP CULTURE

USER IMAGE

SELF IMAGE

PERSONA

PHYSIQUE

Outdoor Fun Companion

Yuppy, city dweller, sporty

Free, enjoys life

Break Free, modern outlook, pushing hard.

Front grill, rough, all terrain, car-like comfort

Young, Vibrant, sophisticated.

Brand Identity Prism – Mahindra Bolero

Driving into the cities(Contd..)

• The brand was priced at Rs. 0.49 mn (Rs. 60000 less than Tata Sumo).

• As part of Brand rationalization, Marshal was modified and launched as MaXX as stage carrier vehicle creating more space.

• Bolero helped the company drive into the cities. Sales increased from 250 per month (for Armada) to 800-900 per month (Bolero).

Product Development Process• Codenamed ‘Scorpio’ – Sting the competition

with a superior product.• Product development process - IDAM (Integrated

Design and Manufacturing)• For quick decisions, people from various

functions formed 19 cross-functional teams– Design & Development– Testing & Validation– Marketing– Manufacturing– Supplier Development

Sequence of steps

Customers PerceptionFeature/Brands Perceptions

Size Indicated Status

Latest Technology Luxury

International sports utility brands Vehicles for rich and famous

SUV’s Provide thrill and passion of driving

Consumers want – Premium Imagery at affordable price

Image of the new product – comfortable, easy to drive, city vehicle with international imagery connotations

Naming the new vehicle

• Suitable name required to represent premium imagery, international aura, and elements of superiority, while capturing the essence of SUV.

• Interface communications (Advertising agency) conducted a study of international brand names of mid size cars and SUVs.

• Some suggested names were ‘Warrior’, ‘Terrainer’, ‘Stormer’, ‘Stallion’, ‘Fusion’ and ‘Sting’.

• Subject to extensive qualitative and quantitative consumer research, ‘Scorpio’ came out as a winner over others.

Brand StrategyAlternatives Evaluation

Mahindra Scorpio Advantage of drawing from positive images of mother brand ‘Mahindra’ that connoted toughness, reliability and outdoor image (Similar strategy used by Mahindra bolero)

Scorpio Advantage of creating a completely independent image of a modern, trendy brand that represented a new generation of world class products

Scorpio from Mahindra Brand name ‘Scorpio’ can connote a new independent product that carries positive associations of Mahindra

PRICING STRATEGY

• Research showed that consumers were looking for a vehicle with international imagery at an affordable price.

• Consumer clinic results suggested a price range of 0.55 mn to 0.63 mn for the petrol version of Scorpio.

• Company decided to adopt a penetration strategy within the psychological range of 0.5 mn to 0.7 mn.

• The base version was launched at 0.55 mn.• The fully loaded version was launched at 0.6 mn.• It was lower than 75,000 to the leading SUV in the market.

MAPPING COMPETITIONFORD IKON POSITIONING – Most superior car on the road

HYUNDAI ACCENTPOSITIONING – So powerful that you can make unthinkable things happen

MARUTI ESTEEMPOSITIONING – Most comfortable vehicle money can buy

OPEL CORSAPOSITIONING – Enjoy the difference

TOYOTA QUALIS

• POSITIONING – Large vehicles for large Indian families.

QUALIS – BRAND IDENTITY PRISM

RELATIONSHIP CULTURE

USER IMAGE

SELF IMAGE

PERSONAPHYSIQUE

Family member for all occassions

Head of a rich,large family

Quality conscious caring family member

Caring and understanding brand

Large family vehicle with good technology

Sopshisticated , well mannered , family-centric

TATA SUMO• TATA SUMO positioned around

toughness and power.• Later changed strategy to TATA

SUMO – King Size

TATA SAFARI• TATA SAFARI used the platform of

attitude and lifestyle.• An off road SUV for people who were

adventurous - “Make your own road “

Alternative Brand Positioning Options• Why should Scorpio search for alternative

Brand Positioning Options ?– Category A – 55% to 34% in 2001– Category B – 43% in 2001– Category C – 14% (constant)– Category D & E – Increasing trend but limited

Volumes

Positioning Options• Involvement of customers in designing new offer

based on ECR.• To position the new offer as a vehicle that

provided an ownership experience.• To position it as a vehicle that could cruise on any

type of road.• To position the vehicle as one designed by the

world’s top designers.• To position as rare combination of luxury & brute

force.

Static & Drive Clinic

• It was the exercise done to seek the customer’s input for Brand Positioning Decision.

• Purpose : – To evaluate the vehicle as a leading competitor

Brand– To obtain customer reactions that helped arriving

at a positioning decision.

Response of ECR

• Static Evaluation Phase– Exterior fit & finish– Perceived as STURDY

• Driving Evaluation Phase– Power & Pick up– Overall quietness– Interior drive comfort– Smoothness of clutch

Price Acceptability• Clinic was used to obtain the price acceptability of price

for both– Diesel– Petrol

• Price Sensitive Model used.

• Younger age group Propensity to pay more.

• Old Age group less propensity to pay.

Scorpio as a JEEP or CAR• Wide spectrum of opinions.• “It is a jeep, not a car- totally a Jeep “• “ Jeep with a touch of car “• “Good Looking posh Jeep , for city driving.

Looks expensive “• “Weekend Car”

Conclusion of ECR

• No specific positioning option “Jumped Out”• It indicated that the vehicle offered

– Superior Technology – Dynamic Looks – A car like product– Great Value for the price

SCORPIO BRAND POSITIONING• RATIONAL BENEFITS• World class vehicle• Good looks• Car like comfort• Great value

• EMOTIONAL BENEFITS• Experience of thrill , excitement and power

• RELATIONAL BENEFITS• Young , modern , extension of lifestyle

• BRAND PROMISE• Luxury of car , Thrill of SUV

CBBE Model

Thank You