Group 04 Mahindra

Topics: Automotive industry, Ford Motor Company, General Motors Pages: 12 (844 words) Published: February 4, 2015
MAHINDRA &
MAHINDRA:
CREATING SCORPIO
GROUP-4
AAKASH | SRIDHAR | NEHA | CHAITANYA | TRISHUL | VIVEK

GLOBAL AUTOMOBILE INDUSTRY


Industry was dominated by:
◦ Big three(GE, Ford and Daimler Chrysler group)
◦ Big two(Volkswagen, Peugeot)
◦ Japanese players (Toyota, Nissan and Honda)



Japanese model :
◦ emphasised on close working relationship with suppliers. ◦ Shorter production period (12-18 months)
◦ Making highest profits per car reeping between ($1400-$2400)



U.S automakers:
◦ emphasised low cost over developing long term supplier
relationships
◦ Production period (2-3 years)
◦ Profit between $178-$48 per vehicle

MAHINDRA & MAHINDRA: A BRIEF
• Founded by KC Mahindra & JC Mahindra
HISTORY
1945
• Imported & Assembled Willys Jeep kits
1956

• Listed in BSE

1954

• Started manufacturing Uvs

1960-80
1994

• Manufactured LCVs and Tractors
• Mahindra USA was set-up

1995-99

• Joint venture with Ford to manufacture Ford Escort

1997

• IDAM was set-up to focus on product development

2000

• Mahindra Bolero was launched

2002

• Launched Scorpio from Mahindra

2003

• Scorpio was awarded car of the year at CNBC AutoCar
• Launched Scorpio in Uruguay, Italy, Russia and South Africa

1. What made M&M to create a
Globally competitive SUV at low
cost?






Image Transition
Catalyst to make M&M world class
Increase in demand for UV’s with 18% & 35% growth in
2003 and 2004
Tap into Growing Indian Passenger Car Market

◦ Growing at approx. 30% annually
◦ People/vehicle was 206 in India as compared to Asian average of 32 






Availability of easy financing for customers
Increase in disposable income from India’s improving
economy
Competing against Global automakers in a price sensitive
market
Improvement of road networks and reduction in excise taxes

2. What has Mahindra as a parent
leveraged to Scorpio project and what
contribution is made by Scorpio team to
• M&M's well established
namecompany
in India
the parent
?

• Strong image in rural market for rugged and tough vehicle • To target M&M's image in Urban market, firstly Bolero, an UV was launched prior to Scorpio launch
• It helped to test SUV in Urban market
• Conduct extensive market researched on customer needs
and potential growth
• Low cost as compared to competitors
• People are willing to obtain loan due to low price
• Ford turned down proposal to do JV for research and
development work

• Designing of Scorpio from scratch
• Launching of Bolero used as trial opportunity for various marketing activities
• Distribution Strategy - Separate distribution outlets for both Bolero and Scorpio
• A new 120 member team called IDAM(Integrated Design and
Manufacturing) formed
• Focus on Product development
• Invested in their own platform and technology as JV Ford refused offer
• Flat Hierarchy
• Team Integration, Qualitative research, Evaluating opinions of automotive experts
• Effective close working of sub teams
• Cost conscious - When cost exceeded, team identify the
solution to maintain under project's budget








Company does not bound to stringent policies- builds
prototypes for testing
Collaborative efforts with suppliers which builds
relationship of trust
Company allowed supplier to choose their own
collaborators
M&M consolidate with Lear Corporation for Interior work
of Scorpio
Flexibility to choose own partner, Labour agreement Does not have internal labour issue Guaranteed continuity of Scorpio and easy availability of
auto parts

Value
Value Proposition
Proposition
Styling, International
Looks, Power Car Like
Comfort

Brand Identity Prism Scorpio
Powerful, in control,
Sophisticated

Physique
Styling,
International
Looks, Power
Car Like
Comfort

Relationship

User Image
Successful, new
economy
Businessman, Self
Made, Evolved Taste

Persona

Culture

Living life at...
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