A SUMMER INTERNSHIP REPORT

ON
MARKETING STRATEGIES WITH SPECIAL
REFERENCE TO MAHINDRA SCORPIO

MDU-CENTER FOR
PROFFESSIONAL AND ALLIED
STUDIES SEC-40,GURUGRAM
SUBMITTED FOR PARTIAL FULFILMENT OF
MASTER OF BUSINESS ADMINISTRATION
(MARKETING)
(2018-20)

SUBMITTED BY:
RAHUL SINGH
REG.NO. 1512360316
ROLL NO.
MBA 2ND YEAR MARKETING
MDU-CPAS

1
2
 DECLERATION

I hereby declare that the project entitled “MARKETING STRATEGIES WITH SPECIAL REFERENCE TO
MAHINDRA SCORPIO” submitted in partial fulfilment of the requirement for the degree of MBA to MDU-
CPAS ,at GURUGRAMis my original work and not submitted for award if any other degree/ diploma or similar
title orprize.

DATE: RAHULSINGH
MBA (2018-20)
PLACE: GURUGRAM

3
 ACKNOWLEDGEMENT

This report has been made possible with the cooperation of many persons whom
I wish to express my gratitude and appreciation. I am very grateful to the people who
supported me to transform the report in the materialisticform.

I am thankful to Dr. PRATIBHA BHARDWAJ faculty management at MDU-

CPAS, Gurugram for his gratitude during my project and giving me fullco-operation
and also valuable information andguidance,withoutwhichit would not be possible for me
to complete themanuscript.

I would also like to thanks the librarianand staff membersof MDU-CPAS,

Gurugramfor providing me the required books in this field and my friends who were
always there to assist me at odd hoursalso.

RAHUL SINGH

4
EXECUTIVE SUMMARY

Mahindra &Mahindra (M&M), the market leader in multi-utility vehicles in India. The company started
manufacturing commercial vehicles in 1945. M&M is the leader by far in commercia l vehicle and the
second largest in the passenger vehicle market. The companyistheworld’ssixth largest medium and heavy
commercial vehiclemanufacturing.

Mahindra is best known for utility vehicles and tractors in India, Its automotive division, the company's
oldest unit (founded in 1945), makes jeeps and three-wheelers (not passenger "auto rickshaws," but
utilitarian deliveryand flatbed incarnations). M&M's farmequipment sector, formed in 1963 during
India'sgreen revolution, manufactures tractors and industrialengines. M&M also produces military
vehicles. The company has facilities located throughoutIndia.
The survey involved gathering wide information about the company, its products, customer satisfaction
and impact of various competitive firms on thecompany.
From the information collected, various aspects were identified where the company needs to focus more
to improve the efficiency of marketing team of MahindraAutomotive.
The research was conducted through collectionof primary and secondary data. Secondary data was
collected through visiting various web sites, automobile magazines and other reliable sources. Primary data
was collected through a well-framed questionnaire, of which later a detailed analysis was done using
various statistical I.T. tools like MS Word and MSExcel.
On the basis, the secondary data analysis and the extensive analysis of the primary data, interpretations
were drawn for the questions and conclusion is drawn. Certain suggestions are also drawn from the
analysis tohelp.
Mahindra Automotive to increase its marketshare in commercial passenger segment and MPVs.
The main research that followed is to know “MARKETING STRATEGIES WITH SPECIAL
REFERENCE TO MAHINDRA SCORPIO”, a new SUV recently launched by Mahindra. Due
to the limited resources and time constraints, the study was conducted within the area
Gurugramcity.

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ABOUT MAHINDRAFIRSTCHOICE 7
COMPANYPROFILE 10
MILSTONE, AWARDSANDACCOLADES 12

MILESTONESofM&M 16
PRODUCTPROFILE 18
BOLEROVARIANTS 20

INTRODUCTIONTOSTRATEGY 32
RESEARCHMETHODOLOGY 53
DATA ANALYSIS&INTERPRETATION 60

FINDING 70
RECOMMENDATION 72
CONCLUSION 74

BIBLIOGRAPHY 76
ANNEXURES 78
QUESTIONNAIRE 79

6
ABOUT MAHINDRA FIRST CHOICE
Mahindra First Choice Wheels is the country’s preferred used car mart and is India’s only organised
multi-brand player, with 500+ outlets in 270+ cities inIndia.

The company plans to expand this number to 1800 outlets by the year 2020. This implies that customers
will soon be able to choose from a wide range of certified used cars throughout India, including the metros
and tier-2 towns andcities.

MAHINDRA GROUP

Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 to bring
the iconic Willys Jeep onto Indian roads. Over the years, we’ve diversified into many new businesses in
order to better meet the needs of our customers. We follow a unique business model of creating
empowered companies that enjoy the best entrepreneurial independenceand Group- wide synergies. This
principle has led our growth into a US $16.5 billion multinational group with more than 180,000
employees in over 100 countriesacross the globe.

Today, our operations span 18 key industries that form the foundation of every modern economy:
aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting
services,defence, energy, farmequipment, financeand insurance, industrial equipment, information
technology, leisure and hospitality, logistics, real estate, retail, and twowheelers.

Our federated structure enables each business to chart its own future and simultaneously leverage
synergies across the entire Group’s competencies. In this way, the diversity of our expertise allows us
to bring our customers the best in manyfields.

Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only tractor
company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor
company worldwide to win the Deming Prize. The US based Reputation Institute ranked Mahindra
among the top10.

7
Mahindra First Choice Services to expand chain of workshops

The multi-brand car workshop chain Mahindra First Choice Services, a wholly-owned subsidiar y of
the diversified Mahindra &MahindraLimited,hasannouncedplansto rapidlyexpanditschain of workshops
from 42 to 100 by March2015.

The chain inaugurated its first Franchisee OwnedFranchiseeOperated(FOFO)workshopin Kurnool

towntoday.

YVS Vijay Kumar, Chief Executive Officer of Mahindra First Choice Services, said, “We see great
potential for the multi-brand car servicing market in the country. This has prompted us to further
strengthen our presence.Our business model forfranchiseeshas receiveda strong response.”

MFCS is targeting over 100 Franchisee Owned and Franchisee Operatedworkshopsby March 2015. Of
this, 20 workshops are expected to come up in Telangana and Andhra Pradesh, hesaid.

For a car service provider, a strong supply chain for spares and technical training are two most essential
elements. With 42 existing workshops and over 2,00,000 cars serviced, MFCS believes that it has a
strong proposition for the franchisees.The company offers a simplifiedbusinessmodel in multi-brand car
servicing with a robust supplychain forsparepartsthroughitscluster warehouse.

Each cluster warehouse supplies parts as per the daily requirements of Franchisee Owned and Franchisee
Operated and Company Owned and Company Operated centres, thereby reducing the need to maintain
huge inventories atworkshops.

8
AFTER MARKET SECTOR

Mahindra &Mahindra has added a new business vertical - After-Market Sector for taking care of the
growing population of vehicles in India (6 million cars currently, expected to grow to 17 million by
2015). There is vast untapped potential in the after-market space, covering multi-brand used vehicles,
servicing and spares which support this business ecosystem. This will create in the organized sector, a
business ecosystem which replicates the existing ecosystem for newvehicles.

The Business Units in the After-Market Sector includes:

 Mahindra First Choice Wheels Ltd. (Sale &Purchase of usedCars)
 Mahindra First Choice Services Ltd. (Multi-brand ServiceChain)

9
COMPANY PROFILE

HISTORYO
F

MAHINDRA & MAHINDRA AUTOMOTIVE

Mahindra &Mahindra (M&M) was established in 1945 as Mahindra &Mohammed. Later on, after
the partition of India, one of the partners - Ghulam Mohammad - returned to Pakistan, where he
became Finance Minister. As a result, the company was renamed to Mahindra&Mahindrain1948.
M&M started its operation as a manufacturer of general-purpose utility vehicles. It assembled CKD
jeeps in 1949. Over the passing years, the company expanded its business and started manufacturing
light commercial vehicles (LCVs) and agricultural tractors. Apart from agricultural
tractors and LCVs, Mahindra &Mahindra also showed its dexterity in manufacturing army vehicles. Soon,
it started its operations abroad, through its plants set up in China, the United Kingdom and theUSA.
M&M partnered with companies prominent in the international market, including Renault SA,
International Truck and Engine Corporation, USA, in order to mark its global presence. M&M also
started exporting its products to several countries across the world. Subsequently, it set up its branches
including Mahindra Europe Srl (based inItaly), Mahindra USA Inc., Mahindra South Africa and
Mahindra (China) Tractor Co. Ltd. At the same
time, M&M managed to be the largest manufacturer of tractors in India,by holding

10
leadership in the market of the country, for around 25 years. The company is an old hand in designing,
developing, manufacturing and marketing tractors as well as farm implements. It made its entry to
the passenger car segment in India, with the manufacture of Logan (mid-size sedan) in April 2007,
under the Mahindra Renaultcollaboration.
Soon after the considerable success of Logan, M&M started launching a wide range of LCVs and three
wheelers as well as SUVs including Scorpio and Bolero. In the present time, Bolero has gained
immense popularity in India. It is one of the most opted vehicles in itsclass.

MAHINDRA SCORPIO
Mahindra&MahindraLimitedlaunchedMahindraScorpioasitsfirstSportsUtilityVehicle in
India in2002.
This SUV has redefined the expectations for the design of SUVs with its sturdy looks andpowerful
performance, the sophisticated interior design adds to the further glory to the appearance.

MAHINDRA BOLERO
MahindraBoleroisoneofthemostsuccessfulandpopularutilityvehicleofthe
MahindraandMahindraGroup.Thecarisrobustinappearanceandithasbeen
elegantlydesigned,keepinginmindtheconditionsoftheIndianroads.
Mahindra Bolero is also among the best fuel-efficient cars of India as the manufacturerhas
equipped it with a 2500 cc diesel engine with5- speed transmission.

MAHINDRA RENAULT LOGAN

Much awaited Mahindra-Renault Logan has been launched in India. This compact sedan is a spacious,
practical and affordable vehicle. The outlook of Logan is impressive and the basic version is a value
for money, however the top-end versions are a bit high on price. The prominent feature of this car is its
performance, interiors andeconomy.

11
MAHINDRA XYLO
Mahindra &Mahindra Limited launched their latest Multi Utility Vehicle (MUV) “Xylo” in India on
January 13, 2009. The car boasts of having all the luxurious features that are seen in today’s sedans,
with the ample space of a utility vehicle. Xylo's muscular stance contributes to its commanding road
presence. Fully packed with the latest features,theMUVissureto impress Indian consumers and provide
a stiff competition to the other vehicles within itsclass.

Performance Of Mahindra XYLO

Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel engine,which generates
a power of 112bhp @ 3800 rpm and a peak torque of 24 kgm @ 1800-3000 rpm. The powerful engine
is developed on the NEF CRDe platform and is mated to 5-gearsmanual transmission. The car
accelerates from rest to 60 km/h in just 5.8seconds.

MILSTONE, AWARDS AND ACCOLADES

M&M’s61st year was studded with a number of noteworthyachievements, prestigious

prizes and glittering awards.

DUAL HONOURS FOR CHAIRMAN MR. KESHUB MAHINDRA

Chairman, Mr. Keshub Mahindra was awarded the “Business Visionary Award 2006” instit uted by
the National Institute of Industrial Engineering (NITIE), Mumbai. Chairman, Mr.
Keshub Mahindra was also awarded the prestigious IBS Kolkata Lifet ime Achievement Award for his
‘unparalleled contribution to industrial growth and social and economic development of
thecommunity’.
The Institute of Chartered Financial Analysts of India’s (ICFAI) India Business School (IBS) presented
it, Kolkata, at the Strategy Summit 2007, held inKolkata.

12
SLEW OF HONOURS FOR MR. ANAND MAHINDRA
Mr. Anand Mahindra, VC & MD, Mahindra Group, received a number of prestigious awards in
2006-07, including:

o The prestigious CNBC Asia Business Leader of the Year Award for the Year 2006 as well as
the CNBC TV India “Business Leader of the YearAward”.

o The ‘CEO of the Year’ award at the India Brand Summit 2006 co-sponsored by Business
Standard and ITM Business School in association with Times Now and DNAnewspaper.

o The LMA Entrepreneur of the Year 2006 award, instituted by the Ludhiana Management
Association(LMA).

o The Most Inspiring Corporate Leader of the Year’ Award by NDTVProfit

o The NDTV Profit – Car &Bike Award 2007 for Automobile Man of theYear.

Mr. Anand Mahindra was also nominated as a Member of the Council of the Executive Committee
of the National Sports Development Fund (NSDF) of the Govt. of India. He was featured in the listof
50 Most InfluentialIndiansinBusinessWeek’s editiondatedAugust13, 2007

HIGHEST CRISIL RATING FOR M&M

M&M has received the highest Governance &Value Creation rating, CRISIL GVC Level - I from
CRISIL for the ability to create value forall stakeholders, while adopting sound corporate
governancepractices.

DUN & BRADSTREET AMERICAN EXPRESS CORPORATE AWARDS 2006

Mahindra &Mahindra was rated as the leading Indian company in the Automobile - Tractors sector in
the ‘Dun &Bradstreet – American Express Corporate Awards 2006’. The Automobile Sector comprises
of three categories – Passenger Vehicles, Commercial Vehicles andTractors.
These awards recognize the virtues of size and growth in the awards methodology. M&M ranked No.
1 in these two segments in the premier Dun &Bradstreet India publication, India’s Top 500
Companies2006.

13
MAHINDRA RECEIVES AMITY HR EXCELLENCE AWARD
Mahindra &Mahindra was honored with the Amity HR Excellence Awardat theFourthAmity Global HR
Summit 2007 held at the Amity International Business School, Noida. The Amity HR Excellence Award
recognized Mahindra as one the most admired companies across the global on account of its innovative
strategies for Human Resources Management andDevelopment.

GLOBAL HR EXCELLENCE AWARD FOR M&M

Mahindra &Mahindra won the Global HR Excellence Award for Innovative HR practices
(Manufacturing Sector), in the Asia Pacific HRM Congress, held in Mumbai. Theseawards recognize
organizations and individuals who have embraced change, encouraged constructive challenges and
demonstrated entrepreneurial skills in the corporateworld.

M&M WINS BOMBAY CHAMBER GOOD CORPORATE CITIZEN

AWARD2006-07
M&M was presented with the coveted Bombay Chamber Good Corporate Citizen Award 2006-07 at
a glittering ceremony held to celebrate the Chamber’s 172nd Foundation Day on September 21, 2007.
Mr. Bharat Doshi, Executive Director, M&M Ltd. and Mr. Rajeev Dubey, Member of the Group
ManagementBoardandChairman,Mahindra&MahindraCSRCouncil,receivedthe award on behalf of
thecompany.

This Award recognizes and honors conspicuous achievement by corporate organizations by way of
service to the civic community, in addition to outstanding operational performance. It takes into account
several parameters, including Business Performance, Corporate Interests, Employee Welfare,
Customer and Stakeholder Satisfaction and SocialInvestment.

GOLDENPEACOCKAWARDFOREXCELLENCEINCORPORATEG
OVERNANCE
Mahindra &Mahindra won the coveted Golden Peacock Award for Excellence in Corporate Governance
2006. This award validates the company’s ‘Best-in-Class’ corporate governance practices and reflects
its transparent and ethical dealings with stakeholders across the entire value chain. It recognizes the
Management’s commitment to the highest standards of corporateconduct

14
and its commitment to Corporate Social Responsibility as a distinct activity that helps build
commendable social values and adds to the ethical fiber of the organization.

BESTAUTOMOTIVEMANUFACTURINGSUPPLYCHAINEXCELLENCE
AWARD
Mahindra&Mahindrahasbeenawardedastheorganizationwiththe “BestAutomotive
Manufacturing Supply Chain Excellence”. The awards were presented by India Times
Mindscape(TimesofIndiaGroup)alongwiththeBusinessIndiaGroupattheExpress,Logistics
&SupplyChainAwardsheldinMumbai onSeptember 28,2007.A.C.Neilsonisaccreditedwith the
research for the award nominees andwinners.

HIGH RANKINGS FOR MAHINDRA

M&M was ranked second in the prestigious e Most Trusted Car Company in India study conducted by
TNS. M&M scored 127 points, just seven points below the top ranking company, according to a
TNS communiqué.

➢ M&M was ranked 14th in The Economic Times prestigious ‘ET 500’ list of top achieving
companies in India. The company has moved up four ranks from last year. To quote from the
‘ET 500’ write-up: “M&M’s ‘art-to-part’ strategy of diversification into the auto parts value
chain and its plans fornew platforms forutility vehicles and joint venture with Renault for
Logan have led to a gain inranks.”
➢ M&M was ranked 22nd in Business India’s annual survey of the country’s topcompanies
- Super 100
➢ M&M was ranked 31st in Business Today’s annual survey of India’s most valuable companies.

15
MILESTONES of M&M

MILESTONES OF MAHINDRA AND MAHINDRA

YEAR ACHIEVEMENTS
 1947 In October, the first batch of 75 Utility Vehicles(UVs) imported in CKD condition
from Willys overland ExportCorporation.
 1949 Lease of 11,071 Sq. yards at Mazagaon from British IndiaSteam
navigation. The first Willys Overland Jeep built in India at the Assembly Plant ,
Mazagaon, Bombay (now Mumbai).
 1954 Manufacture of Vehicles undertaken in collaboration with Kaiser Jeep Corporation
and American MotorsCorporation.
 1962 Indigenous content of Jeep goes up to70 per cent. Tocentralise
manufacturing operations, 137 acres of land purchased at Kandivli.
 1965 FC 150 Petrol Trucksintroduced.
 1967 Two wheelers drive Utility Vehicles introduced.The 101" wheel base andMetal
Body UVs introduced. Indigenous content goes up by 97 percent.
 1969 The start of vehicles export. Export of total 1200 UVs along with spare parts to
Yugoslavia. Exported also to Ceylon, Singapore, Philippines andIndonesia.
 1970 The contracts toexportof3304vehicles,mainlyto Yugoslaviaand
Indonesiaconcluded.
 1974 Maxi miller campaign launched for the conservation of fuel. CJ 4A wasintroduced
with new transmission and axle ratio. Collaboration agreement with Jeep corporation
(subsidiary of AMC,Detroit).
 1979 The Government of India approves in principle, technical collaboration with
Peugeot (France) for the manufacture of XDP 4.90 DieselEngine.
 1981 The Nasik Trucks Assembly Plant and Peugeot Engine Assembly Plant at
Ghatkopar inaugurated. NC 665 DP Mini Truck rolls outfromNasik AssemblyLine.
 1983 FJ 460 model was introduced with 4-speed gearbox. Engine plant at Igatpuri
formally inaugurated by Mr. Jean Boillot, President of AutomobilesPeugeot of France
for the manufacture of 25,000 Peugeot and Petrolengines.
 1985 The New Mahindra Vehicle-MM 540 was launched in Bombay. NC 640DP
with 4 speed gearbox and Mahindra MM 440 wasintroduced.
 1986 CJ 640 DP Vehicleintroduced.
 1987 MM 540 DP metal Body Wagonetteintroduced.
 1988 M&M signed a MoU with Hyderabad Allwyn Nissan Limited to form Mahindra
Nissan Allwyn Ltd., as its associate company with LCV operations in Andhra Pradesh.
 1989 The CJ 340 DP model was introduced.M&M and Peugeot announced their tie
up for the manufacture of Peugeot 504 pickup truck, BA 10 gearboxes and latest XD 3
diesel engines. M&M acquiredautomotive pressing unit at Kanhe, from Guest Keen
WilliamsLtd.

16
 1991 Introduced CJ 500 DI model with MDI 2500 A direct injection dieselengines.
M&M bags order to export 10,000 CKD kits.Commanderrange of models: 650 DI,
750 DP/HT were also launched with tremendousmarket response.
 1993 The Mahindra Armada waslaunched
 1995 Mahindra Nissan Allwyn Ltd. (MNAL)wasmerged with M&Mand Zaheerabad
LCV operations becoming part of Automotive Sector. FJ series of LCVs were shifted
from Nasik to Zaheerabad. Igatpuri Engine Plant received ISO 9002 certificate.
 1996 The new LCV model Cabking DI 3150 &Mahindra Classic vehicles werelaunched.
New Commander 5 Door Hard Topintroduced.
 1997 Commercial production of the FordEscort commenced at Nasik Plant. License
&Technical Assistance Agreement signed with MitsubishiMotors Corporation for
Manufacture of SL Body at Zaheerabad (Voyager withXD3 and BA 10). Kandivli and
Nasik plants received ISO 9002 certificate fromRW-TUV.
 1998 Die shop Inauguration at Nasik Plant 2-8/8/97. Voyagerwas launched bythe
Chairman at Zaheerabad Plant on12/11/97

17
18
19
PRODUCT PROFILE

BOLERO VARIANTS
Scorpio SLX
Features and Specification

Make Mahindra
Model Scorpio
Variant SLX

Body Type SUV

No. of Doors 5

Fuel Efficiency:

City Mileage 9.4 kmpl

Highway Mileage 12.4 kmpl

Fuel Capacity 60 liters
Fuel Type Diesel

Fuel Grade -

Engine Parameters:

Displacement 2523cc
Bore -
Stroke -

Cylinder Configuration 4 inline

Valve Gear Operation -
Compression Ratio -

No. of Valves 8
Aspiration Turbo Charged
Fuel System DI

Horse Power 63.12@3200 ps@rpm

20
Torque 180@1440 Nm@rpm

21
Steering and Suspension

Steering Type Rack and pinion, power assist

Power Steering Yes
Front Suspension Independent with coil spring

Rear Suspension Leaf spring

Dimensions:

Length 4056 mm
Height 1880 mm

Width 1660 mm
Wheel Base 2680 mm
Clearance 200 mm

Front Head Room Min: 60mm Max: 60mm

RearHead Room Min: 60mm Max: 60mm
RearLeg Room Min: 74mm Max: 94mm

Krebs Weight Min: 1615kg Max: 1615 kg

Drive Train

Type Manual
Gears 5

Drive Line RWD

Comforts Features

AM / FM Radio Present
Except AM / FM radio there is no other comfort is provided.
Safety: There is no safety feature included in Bolero SLX including antitheft system etc.

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Scorpio SLE
Feature and Specification

Make Mahindra

Model Scorpio
Variant SLE
Body Type SUV

Number of Doors 5

Fuel Efficiency:

City Mileage 9.5 kmpl

Highway Mileage 13.2 kmpl
Fuel Capacity 60 liters

Fuel Type Diesel

Fuel Grade -

EngineParameters:

Displacement 2523cc

Bore -
Stroke -
Cylinder Configuration 4 inline

Valve Gear Operation -

Compression Ratio -
No. of Valves 8

Aspiration Turbo Charged

Fuel System DI
Horse Power 63.12@3200 ps@rpm

Torque 180@1440 Nm@rpm

23
Steering and Suspension

Steering Type Rack and pinion, power assist

Power Steering Yes

Front Suspension Independent with coil spring
Rear Suspension Parabolic Leaf spring

Dimensions:

Length 4056 mm

Height 1880 mm
Width 1660 mm
Wheel Base 2680 mm

Clearance 180 mm
Krebs weight Min: 1615kg Max: 1615 kg
Gross weight -

Drive Train

Type Manual
Gears 5
Drive Line RWD

Comfort Features

Air-Conditioning Yes

Except Air conditioning, no other comfort features are present in the Scorpio SLE.
Same as SLX no safety features are present in the Scorpio SLE.

24
25
Scorpio DIZ
Feature and Specification

Make Mahindra

Model Scorpio
Variant DIZ
Body Type SUV

Number of Doors 5

Fuel Efficiency:

City Mileage 9.5 kmpl

Highway Mileage 13.2 kmpl
Fuel Capacity 60 liters

Fuel Type Diesel

Fuel Grade -

EngineParameters:

Displacement 2523cc

Bore -
Stroke -
Cylinder Configuration 4 inline

Valve Gear Operation -

Compression Ratio -
No. of Valves 8

Aspiration -
Fuel System DI
Horse Power 63.12@3200 ps@rpm

Torque 137.5@2000-2500 Nm@rpm

Steering and Suspension

26
 Steering Type Rack and pinion, power assist
Power Steering Yes

Front Suspension Independent with coil spring & anti roll

bar

Rear Suspension Parabolic Leaf springs

Dimensions:

Length 4056 mm
Height 1880 mm
Width 1815 mm

Wheel Base 2680 mm

Clearance 200 mm
Boot -

Krebs weight Min: 1615kg Max: 1615 kg

Gross weight 5.4 kg
Drive Train

Type Manual
Gears 5
Drive Line RWD

27
SCORPIO DI
Feature and Specification

Make Mahindra

Model Scorpio
Variant DI
Body Type SUV

Number of Doors 5

Fuel Efficiency:

City Mileage 10.7 kmpl

Highway Mileage 12.9 kmpl

Fuel Capacity 60 liters
Fuel Type Diesel

EngineParameters:

Displacement 2523cc
Bore -

Stroke -
Cylinder Configuration 4 inline
No. of Valves 8

Aspiration Turbo Charged

Fuel System DI
Horse Power 63.08@3200 ps@rpm

Torque 180@1440 Nm@rpm

Steering and Suspension

28
 Steering Type Rack and pinion, power assist
Power Steering No

Front Suspension Independent with coil spring

Rear Suspension Leaf springs

Dimensions:

Length 4260 mm

Height 1810 mm
Width 1815 mm
Wheel Base 2680 mm

Clearance 183 mm
Front Head Room Min: 60mm Max: 60mm
RearHead Room Min: 60mm Max: 60mm

RearLeg Room Min: 74mm Max: 94mm

Krebs weight Min: 1615kg Max: 1615 kg

Drive Train

Type Manual
Gears 5
Drive Line RWD

Comfort Features

Air-Conditioning Yes

Except Air conditioning, no other comfort features are present in the Bolero SLE.
Same as SLX no safety features are present in the Bolero SLE.

29
Gurugram Premier motors (PVT) LTD.

Our Distinction:
This is one of the largest authorised dealers for Mahindra & Mahindra in Uttarakhand

Partners in Progress:
We are the preferred partners of M&M automotive, chiefly due to our successful sales record and
quality. Our facilities have remained unsurpassed, as we strive everyday to better our self.

Commanding Presence:
Premier motors as a centralised air-conditioned showroom of its kind in Uttarakhand, spread gracefully
and decoratedelegantlyoveranimpressive2500 sq.ftat Gurugram,Beingequipped with affable front office
staff and adept professional technicians, Providea perfect of quality Service andReliability.

Space Friendly:
The interiors are aimed at making you feel completely at ease, In luxury. Because for us the customer
is king, one who deserves a regal offering. The setting is apt for times when you need to switch into a
relaxed state ofmind.

Technology to Stay Ahead:

We are equipped with the latest technological advancement in the industry, in order to give the
best of services when it matters. Not just to be part of, But to build the future, is ourmotto.

Ambience the Exude Relaxation:

Ours is one of the few service centres to be equipped with a fully- fledged customer-waiting lounge.
A part from a television and pool table, it had a wed kiosk to keep u connected all thetime.

Service with Commitment:

Our dedicated team of mechanical specialty offers expert treatment for your vehicle. We ensure
consistency in performance each time, without fail.

30
Attention to Details:
We provide genius spare parts and accessories to ensure exceptionalperformance.Everysingle aspect
related to your vehicle is taken care of at ourpremises.

Dealing Made Convenient:

It is a part of our commitment policy to give advantage to the customer at every juncture. We offer
assistance of every kind at our premises itself, which makes it a one stop facility.

Expert Guidance at Every Step:

Our sales team gives utmost priority to your satisfaction. When you need helpto maketheright choice, it is
ensured that the result is beyond your expectations.Thus making it a point that you get the best in
both luxury and comfortalways.

Models:
Mahindra &Mahindra has been launching various type of MUVs and cars from the year of 1945, keeping
in mind the quality, design, driving, comfort, fuel efficiency, and service and resale value. These from a
formidable force that gives our customerstheprideandthejoyof valueforever. What drives M&Mis

➢ Commitment

➢ Leadership

➢ Any an eye for appropriatetechnology.

Since 1945, when M&M first began manufacturing MUVs &LCVs, M&M have been engaged in a
single- minded endeavour to bring you cars that only state-of-the-art, but are also some f the most
environment- friendly vehicles in this world-a reflection of our commitment and care, for better
environment.
At the heart of every M&M is a uniqueengineeringandan optimalmixof power andeconomy. All this
is supported by M&M nation – wide dealership network and automatedworkshop that provide
excellent after saleservice

31
The company has constantly exploring new opportunity to define the shape to tomorrow’s driving
technology.

Promotional Activities:
The promotional activities adopted by premier motors are
a. TestDriving
b. FreeDriving

c. Hoarding
d. Discounts

e. Advertisement in Newspaper andmagazines

f. GiftSchemes

g. FreeServices

h. MileageContents
Promotional expenses have been borne by both Gurugram premier motors and M&M, shares in
advertisement cost.

Service Offered:
Six Service and paid service after saleofCars. Free
checkupscampaigns

Finance throughbank
Demonstration for newproducts

Acceptance of warrantyclaims

Working Time in Gurugram premier motors :

Working hours in premier motors are 12 hours per day starting from 9:30 am to 9:30pm with one-
hour break for lunch and 15 minutes for evening tea andcoffee.

32
INTRODUCTION TO STRATEGY
M&M- MARKETING STRATEGY FOR SCORPIO.

Introduction:
Today most international car manufacturers have entered the Indian market.India is the second largest
two wheeler manufacturerin the world an alsothesecond largesttractormanufacturer.Itis also the 5th
largest commercial vehicle manufacturer and 3rd largest carmarket.
Mahindra &Mahindra Limited is a major automobile company in India. It was setup in
1945 to make general purpose utility vehicles for Indian market. The companyhas started a separate
sector, Mahindra Systems and Automotive technologies (MSAT) in order to focus on developing
components as well as offering engineering services. Now, branched out into manufacturing of
agricultural tractors, and alsolightcommercialvehicles.Thecompany constantly
manufacturesitsrangeofvehicles,whilstresearching and developingnew products. The more diversified
parts of the business have been spun-off as separate business entities, and activities organized under
various business groups. These groups now cover a wide range of markets: automotive, farm
equipment, financial services, infrastructure and development, IT and automotive components. M&M's
automotive division is in the business of manufacturing and marketing utility vehicles and LCVs. It has
a market share in excess of 50% in this segment and manufactures the Scorpio SUVrange.

Situation Analysis:
Utility vehicles are rapidly capturing the market due to its multifarious use. Utilit y
vehicles are found in two kinds: - SUV or Sports Utility Vehicles and MUV or Multi Utilit y Vehicles.
Its spacious interior and sturdy exterior have made this vehicle one of the fastest selling vehicles of India.
This is multi use vehicle to accommodate many passengers in one vehicle, especially while going for
a long trip with a big family or with a folk of friends. Sporty attributes of this vehicle isnot negligible
when mentioning about its use. To name few SUV manufacturers of India- Fiat India, Ford Motors,
Force Motors, General Motors, Hyundai Motors, Hindusta n Motors, Mahindra &Mahindra, Porsche,
Tata Motors, Toyota motorsetc.
Though the SUV market is very small, Anand Mahindra, Vice- Chairman and Managing
Director, Mahindra &Mahindra says, "The very reason the SUV segment is small is because there are
very few offerings in the segment. The Scorpio is going to help grow thesegment

33
in India." Mahindra saw that India’s pot-holed roads, difficult terrain and great distances — often held
up as the country’s disadvantages — were actually great strengths for an SUV maker. Improvement in
road networks andreductionof excisetaxationencouragedsalesof cars amongthe young population. They
choose to enter the market when there was very little product development and when all the suppliers
were hungry forbusiness.
Customers: A study conducted to understand the UV customer by an advertising agency
‘Interface communication’ revealed the following criteria for customer buying process:-
 Customers preferred bid size as it stands forstatus.
 They seek latesttechnology

Competitors:

There has been an increasing demand for UVs with

18% growth .In 2004, Toyota was the major player in
the SUV segment, with sales of 31,898 units of its Qualis
LocalplayersincludedTata’sSumoand Safari and then the
M&M’s bolero and Scorpio.GM launched its Chevy
Tavera, an SUV that competed directly with Scorpio
with sales of 2700 units in three months.

Context:
In late 1990s Mahindra, a leader in UV segment was fast witnessing loss of market
share. Global players were entering the auto market and aggressively launching products.The Mahindra
image was a barrier as well. Though it had positives as rugged, tough, reliable, economical vehicle.
The negative parameters were that it was uncomfortable, rough, not easy, rural imaginary, down
marketetc.
Hence they decided to launch a product with the following objectives:
 To create new segment and retain marketdomination.
 To differentiate offering my providing an excellent valueproposition.
 To optimise projectcosts.
 Providing low cost transportation rate to rural and semi urbanmarket.

34
  To develop strong presence in urban market with VFMproduct.
 To compete with globalplayers.

M&M products, such as the Scorpio and its smaller cousin Bolero, are now competing effective ly with
foreign competition at home. The automotive division, which makes utility vehicles (UVs) and SUVs,
now contributes 61 per cent to M&M’s revenues. Of the 288,601 UV/SUVs sold in India in the year
up to March 2008, 148,761 or 51.6 per cent were M&M vehicles and 39,935 of these were Scorpios.

35
STP analysis:

M&M has established it self in many divisions such as the automotive sector, Farm equipment sector
,IT sector etc.M&M has fashioned a three-pronged strategy for the automotive sector — passenger cars,
commercial vehicles and utility vehicles. The Mahindra Group’s Automotive Sector is in the business
of manufacturing and marketing utility vehicles and light commercia l vehicles, includingthree-wheelers.
It is the market leader in utility vehicles in India since inception, and currently accounts for about
half of India’s market for utility vehicles. Although created in 1994 following an organizational
restructuring, the Automotive Sector can trace its antecedents back to 1954. The iconic jeep that led
American G.I.s to victory in World War II is the very same vehicle that drove the Mahindra Groupto
success in the Automotive Sector. Mahindra &Mahindra Limited, the flagship company of the Group,
was set up as a franchise for assembling general purpose utility vehicles from Willys, USA. Over the
years, theGrouphas developed a large product portfolio catering to a diverse customer base spanning
rural and semi- urban customers,defence requirements and luxurious urban utility vehicles. In 2002,
it launched the indigenously engineered world-class sports utility vehicle-Scorpio, which bridges the
gap between style and adventure, luxury and ruggedness, and performance andeconomy
Scorpio belonged to the SUV. M&M further believes that the target segment and pricing
for the Scorpio will ensure that it is not only competing with other utility vehicles in the segment, but also
with the mid-size car segment (priced in the Rs 5-7 lakh range), which includes the likes of the Ford
Ikon, the Opel Astra, and even cars such as the Fiat Palio (the upper-end model). Although, M&M
remains a leader in the domestic UV segment, it has been steadilylosing

36
market share to the likes of Tata Engineering (with the Sumo and Safari) and Toyota (with Qualis) over
the past few years. Further, there is more competition coming up in the segment with the likes of
Suzuki (with Grand Vitara) and Hyundai (with its Terracan) among others set to enter the market this
year. However, M&M is confident that the Scorpio's value-for- money proposition will make it
score vis-à-vis the competition. While both the Terracan and Vitara are expected to be priced inthe Rs
13-18 lakh range, the Scorpio is priced even lowe than its current competition.Its target customers were
lifestyle orientedcustomers.The valueproposition stated ‘thevehiclethat provides luxury and comfort of
a car and, adventureandthrillof a SUV.’Thelaunchalsomarks a paradigm shift in the company's strategy
in terms of design, spends, as well as focus. n fact, the very development of the product has been a
success in its own right. It took M&M Rs 600 crore, six years, a small team of 120 people and 74
prototypesto finally launchtheindigeno us ly developed Scorpio. The company has also sourced the
best of available technologyfromacross the globe - ranging from the likes of Renault (for the petrol
engine), Visteon, BEHR, Meritor and so on. When Scorpio hit the streets, it arrived as an SUV with
a `car plus' package. Two-and-a- half years later, it has caused a paradigm shift in its category. Equipped
with a savvy marketing strategy, the brand has not only grown the SUV market, but almost touched
base with the `C' class cars segment (Rs 5 lakh andupwards.)
“We believed that we had a shot at being a niche global player in SUVs,’’ says Mahindra, who
recently bid against Tata Motors to buy Jaguar and Land Rover. Mahindra saw that India’s pot-holed
roads, difficult terrain and great distances — often held up as the country’s disadvantages — were
actually great strengths for an SUV maker. “If a vehicle could go in India, it could go anywhere,” he
says. “We made go-anywhere vehicles for the army. It was a readymade globalpositioning.”
According to automobile manufacturers' data, the premium utility vehicle segment grew at
approximately 14 per cent up to June 2002. Unlike for its competitors in the UV category, people who
wished to purchase a C class car would also consider a Scorpio," says Hormazd Sorabjee, Editor,
Autocar India. Cut to market expansion of premium utility vehicles against `C' class cars. Out of the
total number of premium utility vehicles and `C' segment cars put together,premium UVs accounted
for about 21 per cent during the year 2000. The figure touched 49 per cent this year. The Scorpio
launch did play a significant role in driving the UV market up.This to me is the

37
ultimate measure of success - the ability of a company to drive the growth of markets. Marketing
gurussuggestthatthepositioningofScorpiowasalsoveryboldandinnovative.
The easiest temptationforM&M wouldhavebeen topositionScorpioas a `better-lookingSUV' or `a
rugged, yet good-looking SUV' in sync with its tough vehicle pedigree. But this would have made
Scorpio a prisoner of the category, and it would have had to compete with other players in the
category. This also would have restricted the growth of the category byitself.
"The `car plus' approach is indeed very innovative and bold. Bold, because it goes against the existing
frames of reference of customers and hence the need to create new frames of reference,"
elaboratesKoshy.
The new frame of reference also had a distinct brand strategy associatedwithit.It allstartedin1997, when
M&M set up Project Scorpio in quest for new markets. As much was written about the project, the
brand name Scorpio had built enough equity. Internal research showed that Scorpio featured in the top
two suggestednames.
Since the name was reasonably accepted, the company plumped for `Scorpio from Mahindra'. "Those
were the years when there was instability in the automobile sector, especially after the Daewoo fallout.
`Scorpio from Mahindra' was the shadow endorsement strategy used to endorsestability in these times,"
explains Rajesh Jejurikar, Executive Vice-President (Marketing &Sales), Automotive Sector, M&M
Ltd.Earlier, M&M did not have therightto use thenameScorpioas it was originally a Ford brand name for
a sedan. The company, however, got approval from the latter to use the name, except in certain
European markets. Says Jejurikar,"Theproductwillcut across all geographical segments. We are
targeting it at both the urban as well as rural consumer. The Scorpio will be positioned as a value product
targeted at the young, demandingmale."

Marketing implementation:

Product:
The design moment of the Scorpio was also the defining momentforM&M as a company and brand. It
changed the way M&M saw itself in the mirror — overnight. It was a classic case of a product defining
a strategy instead of the other way around. The Scorpio inspired M&M to embrace new strategies
that would transform the company from a mere tractor and soft-top vehicle maker into a brand-conscious
yuppie of the corporate world. Today, the gently greying Mahindra, who once wanted to make films,
not automobiles, has proved adept at steering his over Rs 10,000- crore Company through this change.
Between July 2003 and January 2004, the brandwas

38
subjected to new product developments. Quieter engines were introduced after adopting the chain drive
engine system. The seats were improved, and the new two-toned look was developed. Recently,
Scorpio installed a Common Rail Diesel engineto meetthe BS III auto emissionnorms As the product
development took off, a phased communication strategy was plotted for the brand. During the first phase,
the need to deal with issues such as lifestyle imagery was identified by the Mumbai-based advertising
agency Interface Communications. As a result, the televis io n commercials depicted the product and a
pan-global imagery, even astheprintadvertiseme nts focused on functional benefits. So one got to see
copies like `Car you walk into, and not crawl into' acrossnewspapers.
"In phase two, we did not change the television campaign, but our print creative were centered on
communicating new product developments," says Jejurikar. Mahindra claimsthat thenewScorpio is built
around customer's needs. 45 months of market research and afewcustomeroutreach programs later, they
seem to be on the right track. The legroom complaints have been taken care of with middle row seats
that slide. They've also got new vents up front on the dash that I couldn't really figure out and angular
aircon vents at the rear, so the third row isn't left out. If you're not satisfied with it, don't sweat, as you
can also fit a split air conditionerlike the one you find in other big SUVs at any Mahindradealership.
The third phase of communication was released in July 2004 when the automotive giant focused
on the `car plus' statement. What followed was a series of advertisements focusing on people and
lifestyle rather than the product.

Brand:
A recent brand equity study conducted by IMRB International ranked the Scorpio in the highest- level
of its construct, the `Olympic' category. An Olympic brand is one that is "well-known, well- loved and
has a large core following”. The results are based on a research conducted by IMRB using Millward
Brown's Brand dynamics model, an internationally recognized brand equity measurement tool.Mr Vivek
Nayer, Vice-President - Marketing, Automotive Sector, M&M, said, "Scorpio is the only four-wheeler
in its class in India to have achieved this, which speaks volumes of the customers' faith in thebrand.

Pricing:
It adopted a penetrative pricing strategy. Its competition with accent, ikon, Qualis, Tata sumo. The
second is the pricing strategy. M&M's aggressive pricing strategy appears to hinge onthe

39
promise of viable volumes for the Scorpio in theinitialperiod.Pricingfor theScorpiowillensurethat it is not
only competing with other utility vehicles in the segment, but also with the mid- size car segment
(priced in the Rs 5-7 lakh range), which includes the likes of the Ford Ikon, the Opel Astra, and even
cars such as the Fiat Palio (the upper-endmodel).
The pricing strategy of Scorpio was definitely penetrative, especially when it lured the C segment buyers,
and caught the fancy of the B segment buyers. The ability of any company to play the price game is a
function of cost competitiveness, explains IIM's Koshy. In this specific case, lower price needs to be
looked at as `invitation' price for the basic version while there are others who buy these kind of vehicles
seeking a fully loaded version. The Mumbai ex-showroom prices vary fromRs
6.52 lakh to Rs 7.01 lakh.”M&M is not betting on playing the price game in this market. I think that
the company is certainly into the image game. Price therefore is more a tactical element and not a
strategic vehicle," elaborates Koshy. The pricing could be on higher range because at the time of
launch, people were willing and able to obtain loans, increasing acceptability of using financing to
purchasevehicles.

Promotion:
Prior to Scorpios launch, the team held a press-driven event in June 2002 to sell the positives of the
car to auto experts and journalists. The event created publicity for the functional elements of the car
and its attractive price point, leaving the television advertisements to sell the yuppie image. "All Scorpio
advertisements show the vehicle in urban settings driven many times by women conveying the message
of "easeof driving."Unlikecompetitors'advertisingstrategy,no imagery of off-road settings and
`wilderness' or `break-free' connotations were depicted," says IIM's Koshy.Other international majors
are battle scarred in other markets. All of them have capabilit ies to compete with the best anywhere.
But what Scorpio did was alert all of them thatnothing but the best will do in the Indian market too. "Is
it not interesting that the tag line of Scorpio TV adssays
`nothing else will do'
For starters, Mahindra &Mahindra Ltd has launched a multi- media ad campaign to promote the new
avatar of Scorpio. Created by Interface Communications, the mass media campaign includes a series
of press advertisements and a television commercial.As for the rationale behind the relaunch of
Scorpio, says Mahindra &Mahindra Ltd executive vice-president (marketing &sales) Rajesh Jejurikar:
“After conducting an extensive market research(with AC Nielson), we upgraded

40
our existing model with new features. However, the positioning of the brand will remain the same so
the ad line will continue to be the same—‘Nothing Else WillDo.’”
The company plans to focus on press ads to highlight the new features and improved fuel efficie nc y of
the upgraded version of Scorpio. “To support mass media advertising, we’ll be hostingroad shows and
ground promos. Till now we have sold over 20,000 Scorpios since we launched this brand. With this
improved version, we will phase out the old brand,” headds.
In addition, Mahindra &Mahindra has recently launched a nationwide talent search programme titled
‘Scorpio Speedster With Timex’ in 10 cities across the country. Through this initiative, the company plans
to strengthen Scorpio’s brand positioning of being a youthful and sporty SUV, says Mr. Jejurikar.
Among other initiatives the company plans to increase the vehicle's appeal includes the Top Gear
Club (which will offer a whole range of value-added services for Scorpio consumers). M&M has also
started a toll-free `Scorpioline' to deal with customer queries regarding the vehicle. Further, the company
has launched dealer up gradation programs, in which the showrooms (which will showcase the Scorpio)
have been redesigned and given a trendy look. Says a company offic ia l, "The M&M showrooms across
India now share the Scorpio's brand personality - sporty and technologically advanced. We plan to set
new service paradigms through our dealernetwork."

Place:
The dealership roll-out will be conducted in three phases. In the primary phase, approximately 45
dealerships will be covered.” The Scorpio predecessor, Bolero, (which had earlier replaced the Armada)
will not be discontinued. However, it is with the Scorpio that M&M hopes to find a foothold in the
exportmarkets.
The company will be rolling out the Scorpio in two phases outside India. Says Pawan Goenka, Executive
Vice-President, Product Development, "In the first phase, we will be looking to roll out in markets
such as Indonesia,Russia, South Africa. We are expecting approximately 15 per cent of the sales for
Scorpio to come fromoverseas."
According to company officials, M&M will be following a different strategy in each of these countries
based on local conditions. Says a company official, "There can even be the possibilit ythat the Mahindra
brand name may not be used for marketing the vehicleincertain countries depending on the market
characteristics. The focus will be on selling the vehicle." Meanwhile, the company feels the Scorpio will
attract the price conscious consumer even in these highly competitive markets. M&M has already
inked a tie-up with the Sun Group in Russia, and isin

41
talks for similar tie-ups in Indonesia and Malaysia. Says Jejurikar, "The UV market overseas is huge.
For instance, in Indonesia it forms 80 per cent of the entire market, while the Asia average is about
40 per cent. In India, the figure currently stands at about 15 per cent." Distribution strategy was to serve
fewer markets but to serve them all. It had a phased launch, showroom exp and infrastructure.
The Scorpio would continue to sell for many more years even though new vehicles bearing the Mahindra
brand may unseat it from its lofty perch. But none of them are likely to be an avatar that would consume
the company the way the Scorpio did. NEW DELHI, Enthused by the growing popularity of its latest
offering Scorpio in the metros, M&M is preparing to drive the sports utilit y vehicle to the semi-urban
towns.The firm has already chalked out marketing plans for these smaller towns, where the Scorpio is
slated to sting competitionby October thisyear.It is also readying plans to introduce more variants on
the Scorpio, V-P (automotive sector) Rajesh Jejurikar said. “We will look at feeding these markets
with only the diesel version...We will start with Alwar and Aligarh in the north, Hubli and Trichi in the
south and Raipur in the west. Then, we will gradually expand reach into
these towns,” Jejurikar said. “With the rains having started in some
parts, we can move ahead with debuting the Scorpio in these towns,” he added. The firm has targeted
to introduce the Scorpio in around 45 towns by December this year. However, there are no immediate
plans to introduce a soft-top version of the vehicle in these markets. Soft-top vehicles are in high demand
inthe semi-urban and rural towns, where vehicles of the size of Scorpio are generally used for transport
purposes. Other options include a pick-up version foroverseas.

Creating value, Extracting value and Sustaining value:

‘Value for money’ was their main criteria to serve the customers. But more thananything,the company is
banking on the Scorpio to bring about a change in image and perception about the company. Often
dubbed as a company which makes sturdy vehicles for the rural markets, the Scorpio could give M&M
a new lease of life. The launch also marks a paradigm shift in the company's strategy in terms of design,
spends, as well as focus. Scorpio has topped the charts of both customers and non-customers. While
the TNS Automotive Customer Satisfaction voted Scorpio as the best SUV after Toyota Qualis, the
Indicus Customer Study registered the perception of the brand among people atlarge.

42
Mahindra claims that the new Scorpio is built around customer'sneeds.45monthsofmarket research and a
few customer outreach programmes later, they seem to be on the right track. The legroom complaints
have been taken care of with middle row seats that slide. They've also got new vents up front on the dash
thatI couldn'treally figure out and angular aircon vents at the rear, so the third row isn't left out. It’s
with high-tech features, great looks, great mileage in its class, good interiors.

According toDelhi-basedIndicusConsumerTracker,anindependentbrand-tracking firm, its study

conducted in January thisyearrevealedthat3.8 per cent of the 3,690 sample size recalled the Scorpio
ad while 2.2 per cent recalled the brand, and 1.8 per cent switched to the brand. The figures seem
diminutive, but when extrapolated on to a larger universe of product categories, they tell a
differentstory.

In terms of total number of units sold in the passenger vehicles segment, SUV holds
a very small mind share, and yet Mahindra Scorpio is the only SUV brand that garners both brand and
ad recall across the sample size. "Scorpio is among the only three main car sub-brands whose ad and
brand recalls are higher than the master brands The track monitors `highvalue'

43
consumers, and registers those who are in the SEC A and B categories, while 67 per cent of the sample
size is from the top eight metros; the rest from the next 50-60 towns acrossIndia.

Sales too have been zooming, says the company. According to brand-wise data, the
company claimsto be matchingsalesof mostC segment cars, even outsellingsomeof them. In the last six
months, M&M sold 14,389 Scorpios, against a total Csegmentsalesof79,346, according to company
data.M&M is also attempting innovative strategies on the digital turf, and is currently eyeing gaming
as a means to promote the brand. So, theclient-agencyteam istoying with the idea of game called
`turbanator' for the mobile gamingfraternity.
Scorpio achieved its targets on market share and achieved volumes of 12000 vehicles sale in the first
9 months of its launch. Scorpio advertising had a very high recall for the Mahindra brand as well as
product.Advertizingalso positioned Scorpio as a powerful vehicle with a sporty look.74 vehicles were
built only for testing. They used simultaneous testingandexaminingprocess. The product was put through
NOVA-C(New overall vehicle audit-customer) system to measure the overall quality of the production
process. A world class manufacturing setup was spread over 120 acres with a capacity of 40,000 units
annual on a shift basis. It was more flexible in terms of partners. The company looked east instead of
west for cheaper componentsand allowed customers to choose their own collaborators.
To reduce costs, Goenka contracted manufacturing to companies that had technology but had never been
given the chance to prove it. For instance, South Korean suspension maker Samlip had never designed
the full suspension system for a vehicle but M&M entrusted it with that task. Another South Korean
company, Wooshin Systems, that had also never done a full body shop design,did

44
the body jigs and fixtures. But such moves stood M&M ingood stead. Its once-small suppliers have
become global playersand M&M has found itself possessing a world-class supply chain. The impact
on Mahindraimage:
o Well respectedmanufacturers
o Technologicallyadvanced
o Suitable for citydriving
o Makes VALUE FOR MONEYvehicles.
o Proud toown.
The revenue of company increased about 37% in a year and the PBIT about 47%.Their share prices also
increased .The overall positive opinion about Mahindra increased by 18% among SUV owners and 11%
among all carowners.

Sustainability:
 Mahindra have been practicing Alternative thinking across variousdisciplines.
 Customer relationshipmanagement
 Introduction of greentechnology.
 Brandenhancement.
 Meeting global challenges of climate change

45
  Nurturing human resources in addition toprofit.
 Becoming dependableneighbors.

Raiding America:
Mahindra is now obsessed with taking both his rugged off-roaders to global markets. This
ambitious plan includes entering the most competitiveautomarket in the world, the US. Starting next
year, M&M will ride into the US market on the back of a multi- million-dollar marketing plan and aim
to entice10,000 Americansintooverlookingcompetitionfromthelikes of Honda’s CRV and pay about
$25,000 apiece for its Scorpios. It will mark the first time an ‘Indian’ vehicle will lock horns with the
heavyweights of the auto industry in theworld’stoughest arena.
SUVs have advantages in safety, cargo space and power that Americans demand. The chief virtue of
the automobile is the personal independence it gives the owner--a car can goanywhereroads go and
some places they don't, with a speed unimaginable in the pre-automobile era. Its secondary virtue is
protection--from theelementsandfromcollision. In both a car and an SUV, passengers are protected by
the vehicle's structure from the wind and rain. But in a collision, the SUV simply provides more protection
than a smaller car does. Larger cars better protect the people in them-- that's why your father wanted
you to get a huge, boxy old car whenyou were sixteen instead of a little Mustang--so that you would
live through your first accident. Protection is a big advantage. Americans are not very easy customers.
When Nissan wanted to enter the US market in 1958, it set itself the target of selling just 500-1,000
vehicles in the first year. It sold 83. At least one Chrysler vehicle and a Ford model have failed because
they did not have enoughcup holders!
Goenka says the company has set itself a target of selling 10,000 vehicles in the US in 2009 — and
they will all have “holders in the front and back that can hold large cups”, laughsArunJaura, who has
just been elevated as the chief technology officer of the group. Jaura, who built the Ford Escape hybrid
in Detroit, is busy rolling out hybrid vehicles for M&M now. Mahindra has not decided on the exact
launch date for its SUVs in the US, but it is rumoured that the vehicles will debut by Januarynext.
America is the largest automobile market in the world with annual sales of 13 million units. It is expected
that the Mahindras’ US foray would have be significant due to the growing importance of small and
fuel-efficient cars among Americancar buyers.

46
Mahindra’s top selling SUV in India is the Mahindra Scorpio. This SUV is available in several versions,
including single and dual cab pickup versions. The engines available on the Scorpio in India are not
the smoothest running or the most powerful. But it is unlikely Mahindra would tackle the US markets
with the same engines and transmissions which are adequate forIndia.
Automotive News’ Chappell believes US consumers would be hesitant about buying an unknown vehicle
made in India. “It took Americans 25 years to accept that the Japanese really knew how to build cars,’’
hesays.“EvenHyundaiisstilltryingto convinceshoppersthatitscars are reliable and well built.” But M&M is
not a completelyunknown brand in the US because the company sells tractors there. It has sold about
10,000 tractors in the US and sales are growing at about 25 per cent annually. But in reality, “the
Mahindra identity is as familiar to American car buyers as aloo palak is to a cowboy”, Chappellsays.
Mahindra’s days studying filmmaking at Harvard gave him an understanding of the American psyche.
To connect with American buyers, M&M is likely to badge its American pickups with a true-blue
American name that invokes the ‘great outdoors’ — MahindraAppalachian.
Cracking America will be tougher than selling vehicles in Africa, Mahindra admits. So he’s roped in
a partner who knows how to fight tough battles. John Perez, the auto maverick who owns Global Vehicles
and has brought a variety of autos from around the world to the US, will be the importer for Scorpios
in the US. Perez has already declared that he hopes to sell about 45,000 Scorpios in 2009, which would
give M&M revenues of $1 billion in the US alone. To achieve this, Perez says, he will sign on 300
Scorpio dealers. That makes the math of hischallengeappear easy — each of the 300 dealers will only
need to sell three vehicles per week to give Perez and Mahindra sales of 45,000 Scorpios.
If true, M&M would become the first Indian auto company to launch passenger vehicles in the US
under its won brand. The company already assembles and markets tractors in the US under its own
label.M&M has appointed Global Vehicles USAas itsdistributorinUS, accordingto thereport. The
distributor is currently scouting for dealers across key states. Global Vehiclesisalsothedistributor of
Mahindratractors.
The fact that M&M is planning a US entry indicates that the next upgrade for the Scorpio would have
substantial improvements in terms of engine and transmission, safety features and handling.M&M is
reportedly working on an upgraded enginefortheScorpio,whichwouldbe launched some time nextyear.

47
M&M is understood to be working on a major design makeover for the Scorpio. The model has not
seen a major upgrade, except for the recent cosmetic uplift, since launch many years back.M&M is
also talking to a couple of assemblers in Ohio and other states to assemble knocked- down kits of their
vehicles. Though this would raise costs, the company would net two benefits. It would sidestep the 25
per cent ‘chicken tax’ levied on imports. More importantly, local assembly would help overcome the
average American’s resistance to foreign brands, lessonGermanand Japanese automakers havelearned.
Also United States has the stringent emission norms in the world, infact all the major
manufacturers of diesel passenger vehicles except Mercedes-Benz have withdrawn from the United
States market because of difficulties in meeting stricter standards for the 2007 model year. Mahindra
&Mahindra hopes by producing fuel efficient, T2B5 emission compliable vehicles with a low price
point it can attract buyers for its Scorpio and otherpick-ups.
Another interesting take Mahindra would have for the US market is that its SUVs are fuel efficie nt.
For one, the Scorpios they would export would be diesel, and they are not as big, or as powerful as
any of the run of the mill SUVs in the US. So, the strategy would be to sell them as fuel effic ie nt vehicles.
With the new 2.2L engine and 6-speed automatic transmission Mahindra will claim 39mpg(miles-per-
gallon) as its fuel efficiency for theScorpio.
M&M will also spend $50 million (Rs 200 crore) to upgrade the Scorpio for the US market as the
Indian version will not meet safety norms or customer needs. For one, the company is working on Project
W408, which is fitting the Scorpio with a reconfigured version of thepowerfulmHawk engine, a second-
generation 2.2-litre common-rail system M&M developed entirely in India. This is important as
Mahindra expects the Scorpio’s fuel-efficient and low-emission engine to win over customers who feel
guilty aboutdriving gas-guzzlingautomobiles, yet want the size and performance of an SUV. “Fuel
efficiency is more of an issue than it’s been inthepast,’’says Rebecca Lindland, research director of
automotive group at Global Insight, an independent research firm. “But it’s not the only issue, nor is
price. Consumers still monitor safety ratings, reliability, comfort and convenience even more than gas
mileage.”
They would offer US consumers multiple Scorpio variants — a single-cab pick-up, a double-cab pick-up
and the full-size SUV. Each will “have new seats, a new four-channel ABS, dual-stage airbags, lots of
electronics and everything will be T2B5 compliant”, he says. T2B5 or Tier 2 Bin 5, is the American
emissions standard that automobiles have to follow. Perez has said allvehicles

48
would come with a four-year, 60,000-km warranty. On paper, all this would give M&M a credible
position in the mid-size SUV market where the company wants to position itself as a value-for- money
alternative. But it will take a lot moreto actually get US consumers to want to have a vehicle wearing
the M&M badge parked in their driveways, next to their neighbours’ Toyotas and Fords.
Apart from the automatic transmission,theAmericanScorpiowillhavethefullyloadedandwill be all the
necessary features of international standard High- end features includes a four-channe l anti-lock brake
systems (ABS), occupants safety system, new lumber seats and air bags, four- wheel drive with
electronic shift and a electronic vehicle stability system to be introduced in the Scorpio’s US variant.
Mahindra is also developing a new communication and navigation system for the SUV, to be fully
customized for the US. These equipments will make Scorpio to meet stringent safety norms and satisfy
the more demanding American customer.Besides these emissio n standards, the vehicle has to comply
with the Federal Motor Vehicle Safety Standards (FMVSS). According to the National Highway Traffic
Safety Administration Web site ( www.nhtsa.dot.go v), these would include 29 standards on ‘Crash
Avoidance’ like standards for rear view mirror,controland displays, theft protection, etc; ‘Crash
Worthiness’ standards (16) for occupant crash protection, seat belt assemblies, roof crush resistance
etc; ‘Post Crash’ standards like fuel system integr it y, flammability of interior materials,etc.
There are other regulations that govern FMVSS like manufacturer identification, vehicle identification
number, etc.The FMVSS standard is a self-certification process and thereforethe onus is on the original
equipment manufacturer to comply with them, said Dr Jaura.These standards just make the car viable
to sell in the market, but in order to meet market demands and make it a lucrative proposition in the
world’s most competitive market, the company has identified diesel-run vehicles (backed with 4-year,
60,000 mile warranty) as their forte in thegasolinedriven SUV and light truckmarket.
However, the company has to undergo various modifications to its present generation of Scorpio models.
Curiously, the largest financial risk M&M could face in the US is litigation and recalls. American safety
laws are demanding and even small faults can result in high-cost product recalls.
P.N. Shah says the company is aware of the complexities of the market and is prepared for it.
M&M’s SUVs would face stiff competition from Toyota’s RAV4 and Honda’s CR-V.
Competition, but this would be especially aggressive in thisrecession year, when cars sales are

49
expected to fall 6 per cent, according to US analysts.Asin Africa, it is M&M’s US dealers who will
hold the key to the company’s success.“Ifdealersfeeltheyare being rewarded by selling a car, they will
overcome great obstacles to continue selling it.”Mahindra wants his vehicles to compete with the best
because he believes it would help the company improve its abilities and class. Having to cater to the
most demanding customers automatically raises the bar. It would force M&M to become truly global, a
process that began when the engineof thefirstScorpioturned over.In many ways, the US entry will also be
the champion vehicle’s last lap. Though M&M is counting on its trailblazing Scorpio to lead the way
into the US, it is also preparing for life after the ageing winner. The company is spending Rs 500 crore-
600 crore to develop a monocoque SUV for the US market. Codenamed W201, the vehiclewillbe
poweredby themHawkengine,albeit in a completely redesigned and reconfigured form. It will hit the US
market in the next couple of years.

Marketing and target audience:

Mahindra is targeting a niche market, price conscious (prices at the pump too) and “green” customers.
Also, people who have bought Mahindra tractors and Indians in the U.S. According to Business week
Mahindra and Mahindra will follow a unconventional marketing campaign forthe
U.S. market. “It will spend only about $20 million on marketing in 2009, less than 10% of what Toyota
spent to launch the Tundra pickup. Almost none of thismoneyisexpectedto be devoted to television
or glossy print ads. Instead, it will purchase carefully selected search terms and banner ads on Web sites
popular with its target consumers. These links will steer potentialbuyersto detailed information about
Mahindra’strucks.”
Unlike Chinese manufacturers which settled impossible targets buteven failedto makean offthe mark.
Mahindra has set modest goals for its first few years. “Half of the global sales in S.U.V.’s and pickups
is in the United States and we want to capture at least a fraction of thatto start with,”said Pawan Goenka,
president of the automotive division of Mahindra &Mahindra. Mahindra is planning to selljust18,000 of
scorpios in the 2nd six months of 2009, followed by 45,000 in2010.

While many Indian companies make the mistake of falling in love with their products while shying away
from investing in ‘soft’ elements such as advertising,Mahindra will spend as much — Rs 200 crore
($50 million) — on promoting his US vehicle as he will spend on developing it.Global

50
Vehicles has hired the iconoclastic advertising firm Strawberry Frog to position its vehicles. “Our
objective is to launch a car in the US in a way that has never been done before,’’ Scott Goodson, founder
and chief executive of Strawberry Frog told the media on the sidelines of Goafest, an international
advertising conference. “We are going to launch it in a way that people are going to say ‘Holy wow!
That iscool!’

Price and the strategy:

Mahindra will ship its SUV as a CBU from India, but the pickup trucks will be assembledthere. They
will be assembled at one of three plant sites Global is scouting in the Southeast. Though it will be
CBU Mahindra will price the Scorpio SUV and the pick-ups aggressively.Mahindra’s 2- door single-
cab pickup truck will be offered in the low $20,000 range and its 4-door truck and 5- door SUV, which
seats seven, will be in the mid-$20,000 range. A high-end version of the4-door truck will be in the high
$20,000 range. It also uses a penetrating pricing scheme in order to discourage competition and attract
many customers.These prices are very competitive when other fully loaded SUV prices are hovering in
the range of $40,000 - $50000. All the vehicles will have bumper to bumper warranty for 60000miles /
4years. Similar to hard core Indian bike enthus iast who are very much associated with Royal Enfield,
Americans are extremely loyal to their SUV makers. When Toyota and Honda entered the American
market they faced stiff opposition. They employed lot of Americans and invested a lot in America. Intact,
they projected them as American producers and circumvent the natural opposition to foreign makers
from the American patriotis m. Mahindra &Mahindra has to follow its forerunners if it wishes to be serious
player in the American market.
Also, many of the yardsticks are different unlike Indian customers who are price conscious, American
customers cannot be lured only by the low price point. They look for the quality, quality problems will
keep the customer off the product andpoor qualityevencandestroythebrand. Earlier Hyundai and
nowadays even the mightyToyotais facing lot of problemsin the quality front. Also, unlike other
international manufacturers Mahindra do not have multiple products for United States (at least as of
now) it has to solely depend on its Scorpio. Hence Mahindra has to work hard to keep the number
of defects to a minimum before it launches the first Indian product in America. Mahindra wants to be
the next LandRover.

51
Finally, Mahindra has effectively planned for its US entry concentrating on all the elements needed for
its global launch.It has done a lot of market research on its entry in US and also upgraded the Scorpio as
needed by the American customers it will definitely prove to be successful in theUS market.

52
 OBJECTIVES OF THE STUDY

The study has been under taken to analyze the marketing strategy towards all variant of Mahindra
SCORPIO in Gurugram with a special reference to the M&M motors, the other objectives are:
➢ To gather information about Marketing Strategy toward Scorpio in the geographic region
ofGurugram

➢ To know the customer perception about features, low maintenancecostandlooksof Scorpio.

➢ To know the customer satisfaction about the safety and comfort provided byScorpio.

➢ To provide suggestions, in improving the marketing strategies and the company sales and
profitability.

➢ To know the marketing strategy towards the after sales service offersby M&M.

53
RESEARCH METHODOLOGY

Research Methodology
A research process consists of stages or steps that guide the project from its conception through the
final analysis, recommendations and ultimate actions. The research process provides a systematic,
planned approach to the research project and ensures that all aspects of the research project are
consistent with eachother.

Research studies evolve through a series of steps, each representing the answer to a key question.

INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of evaluatio n and
revaluation of primary and secondary research. The techniques and concepts used during primary
research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards
the analysis and results.

RESEARCH DESIGN
I propose to first conduct a intensive secondary research to understand the full impact and implication
of the industry, to review and critique the industry norms and reports, on which certain issues shall be
selected, which I feel remain unanswered or liableto change,thisshallbe further taken up in the next stage
of exploratory research. This stage shall help me to restrict and select only the important question and
issue, which inhabit growth and segmentation in theindustry.

The various tasks that I have undertaken in the research design process are :
❑ Defining the informationneed
❑ Design the exploratory, descriptive and causalresearch.

RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysis

54
It has a logical and hierarchical ordering:
✓ Determination of information researchproblem.
✓ Development of appropriate research design.
✓ Execution of researchdesign.
✓ Communication ofresults.
Each step is viewed as a separate process that includes a combination of task , step and specific
procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing.

EXPLORATOR Y RESEARCH
The method I used for exploratory research was
❑ PrimaryData
❑ Secondarydata

PRIMARY DATA
New data gathered to help solve the problem at hand. As compared to secondary data which is previously
gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data
that are newly collected in the course of research, Consists of original informa t io n that comes from
people andincludesinformationgatheredfromsurveys, focus groups, independent observations and test
results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary
data, which entails the use of data gathered by someone other than the researcher information that is
obtained directly from first-hand sources by means of surveys, observation orexperimentation.
Primary data is basically collected by getting questionnaire filled by the respondents.

SECONDARY DATA
Information that already exists somewhere, having been collectedforanotherpurpose.Sources include
census reports, trade publications, and subscription services. There are two typesof

55
secondary data: internal and external secondary data. Information compiled inside or outside the
organization for some purpose other than the current investigation Researching information, which has
already been published? Market information compiled for purposes other than the current research
effort; it can be internal data, such as existing sales-tracking information, or it can be research conducted
by someone else, such as a market research company or the U.S. governme nt. Secondary source of
data used consists of books andwebsites
My proposal is to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which certain issues
shall be selected, which I feel remain unanswered or liableto change,thisshallbe further taken up in the
next stage of exploratoryresearch.

DESCRIPTIVE RESEARCH
STEPS in the descriptive research:

Statement of the problem

➢ Identification of information needed to solve the problem

➢ Selection or development of instruments for gathering the information

➢ Identification of target population and determination of samplingPlan.

➢ Design of procedure for information collection

➢ Collection of information

➢ Analysis ofinformation

➢ Generalizations and/orpredictions

DATA COLLECTION

Data collection took place with the help of filling of questionnaires. The questionnaire method has come
to the more widely used and economical means of data collection. The common factor in all varieties of
the questionnaire methodisthisrelianceon verbalresponsesto questions,writtenor oral. I found it essential to
make sure the questionnaire was easy to read and understand toall spectrums of people in the sample. It
was also important as researcher to respect the samplestime

56
and energy hence the questionnaire was designed in such a way, that its administration would not exceed
4-5 mins. These questionnaires were personallyadministered.

The first hand information was collected by making the people fill the questionnaires. The primary data
collected by directly interacting with the people. The respondents were contacted at shopping malls,
markets, places that werenear toshowroomsof theconsumerdurableproducts etc. The data was collected
by interacting with 200 respondents who filled the questionnaires and gave me the required necessary
information. The respondents consisted of housewives,students, businessmen, professionals etc. the
required information was collected by directly interactingwith theserespondents.

DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION
It is a description of the characteristics of that group of people from whom a course is intended. It
attempts to describe them as they are rather than as the describer would like them to be. Also called
the audience the audience to be served by our project includes key demographic informa t io n (i.e.; age,
sex etc.).The specific population intended as beneficiaries of a program. This will be either all or a
subset of potential users, such as adolescents, women, rural residents, or the residents of a particular
geographic area. Topic areas: Governance, Accountability and Evaluat io n, Operations Management
and Leadership. A population to be reached through some action or intervention; may refer to groups
with specific demographic or geographiccharacteristics. The group of people you are trying to reach
with a particular strategy or activity. The target population is the population I want to make conclude
an ideal situation;thesamplingframesto matchesthe target population. A specific resource set that is the
object or target of investigation. The audience defined in age, background, ability, and preferences,
among other things,for whicha givencourse of instruction isintended.
I have selected the sample trough Simple random Sampling

SAMPLE SIZE:

This involves figuring out how many samples one need.

57
The numbers of samples you need are affected by the following factors:

 Projectgoals

 How you plan to analyze yourdata

 How variable your data are or are likely tobe

 How precisely you want to measure change ortrend

 The number of years over which you want to detect atrend

 How many times a year you will sample eachpoint

 How much money and manpower youhave

SAMPLE SIZE
I have targeted 150people in the age group above 21 years for the purpose of the research. The target
population influences the sample size. The target population represents the Gurugramregions. . The
people were from different professionalbackgrounds.
The details of our sample are explained in chapter named primary research where the divisions are
explained in demographics section.

ERRORS IN THE STUDY

Interviewer error
There is interviewer bias in the questionnaire method. Open-ended questions can be biased by the
interviewer’sviews or probing, as interviewersare guiding the respondent while the questionna ire is
being filled out. The attitudes the interviewer revels to the respondent during the interviewcan greatly
affect their level of interest and willingness to answer openly. As interviewers, probing and clarifications
maximize respondent understanding and yield complete answers, these advantages are offset by the
problems of prestige seeking, social desirability and courtesybiases.

58
Questionnaire error
The questionnaire designing has to carefulso thatonly required data is concisely reveled and there is
no redundantdata generated. The questions have to be worded carefully so that the questions are not
loaded and does not lead to a bias in the respondentsmind

Respondent error
The respondents selected to be interviewedwere not always available and willing to co operate also
in most cases the respondents werefoundto not have the knowledge,opinion, attitudes or facts required
additionally uninformed response errors and response styles also led to surveyerror.

Sampling error
We have taken the sample size of 150, which cannot determine the buying behavior of the total
population. The sample has been drawn from only National Capital Region.

Research Design

Research design is a conceptual structure within which research was conducted. A research design is
the detailed blueprint used to guide a research study towards its objective. It is a series of advanced
decision taken together comprising a master plan or a model for conducting the research in consonance
with the research objectives. Research design is needed because it facilitates the smooth sailing of the
various research operations, thereby making research as efficient as possible yielding maximum
information with the minimum effort, time andmoney.

Scope and the Limitation of the study

➢ The scope of study is limited to the respondents are selected from in and aroundGurugram, U.k

59
 .

➢ The project is carried out for the period of 45 daysonly.

➢ Measurement of Marketing strategies is complex subjects,whichusesnon-objectives method,

which is notreliable.

➢ The sample unit was also 150respondents.

➢ However, Mahindra and Mahindra Automobile showrooms are located in other places i.e. locally
and even in the neighboring states. Only opinion of respondents of Gurugramcity was consider
for finding out the opinions ofrespondents.

60
DATA ANALYSIS &
INTERPRETATION

61
DATA ANALYSIS & INTERPRETATION

Satisfied Dissatisfied
78% 22%
Table No. 1 Marketing Strategy towards Mahindra Scorpio

Source: Questionnaire
Figure:1

Interpretation 1:
The sample drawn on probability basis shows that 78% of the customers were satisfied with
Scorpio variant and only 22% were not satisfied with Scorpiovariant.
Observation:
Most of the respondents approached were satisfied with Scorpio

Table No: 2 Factors affecting marketing strategy towards Scorpio

62
 Factor No. of Respondent Percentage
Features 18 12%
Low Maintenance 51 34%

Comfort 27 18%
Style 24 16%
After Sales Service 30 20%

Source: Questionnaire
Figure:2

Interpretation 2: The sample drawnon the probability basis clearly shows that 34% (51respondents)
are the opinion that low maintenanceis the satisfaction factor Scorpio and 20 %( 30 respondents) of
them who view After Sales Service as a vital factor for customer satisfact io n. Followed by Comfort
which corresponds to 18 %( 27 respondents), Style with 16%(respondents) and only 12%(18
respondents) of them view that feature of Bolero as satisfactionfactor.
Observation:
Majority of the respondent are of the idea that low maintenance of the top most feature
contributing to customer satisfaction followed by after sales services comfort style andfeatures

63
As such, Mahindra should focus on the aspects, which will enhance the customer satisfaction and thus
the marketshare

Table No: 3 Customer opinions towards fuel consumption.

Factor Percentage

Extremely Satisfied 27%

Satisfied 49%
Neutral 17%

Dissatisfied 7%
Total 100%

Source: Questionnaire
Figure: 3

Consumer Opinions toward Fuel

Consumption

Interpretation 3: 100% of the respondents 49% of the respondents approached were satisfied with
the fuel consumption of the Scorpio. Followed by 27% was extremely satisfied, 17% are neutral and
rest of the 7% is more dissatisfied with fuel consumption ofScorpio.
Observation: As majority of the respondents are satisfied with the fuel consumption of Mahindra
Scorpio, the company should maintain the same standard and it is suggested to come up with

64
suitable measure to reduce the negative opinion among the consumer who are of the opinion that
the fuel consumption is a dissatisfyingfactor.
Table No: 4 Customer opinions toward Safety and Comfort.

Factor Percentage
Extremely Satisfied 23%
Satisfied 47%

Neither Satisfied & Dissatisfied 20%

Dissatisfied 10%
Total 100%

Source: Questionnaire

Customer Opinions toward

Safety and Comfort

Figure: 4
Interpretation 4: 100% of the respondents 47% of the respondents approached were satisfied with
the safety and comfort feature of the Scorpio. Followed by 27% was extremely satisfied, 17% are
neutral and rest of the 7% was dissatisfied with safety and comfort featureof Scorpio.
Observation: As majority of the respondents are satisfied with the safety and comfort feature of
Mahindra Scorpio, the company should maintain the same standard and it is suggested to come up

65
with suitable measure to reduce the negative opinion among the consumer who are of the opinion that
the fuel consumption is a dissatisfyingfactor.

Table No: 5 Customer opinions toward Design.

Factor Percentage
Extremely Satisfied 20%
Satisfied 40%
Neutral 27%

Dissatisfied 13%
Total 100%
Source: Questionnaire
Figure: 5

Customer OpinionsToward
Design

Interpretation 5: 100% of respondents 40% of the respondents approached were satisfied with the
Design of the Scorpio. 20% were more satisfied, 27% of them neutral and 13% are dissatis fied with the
design of theScorpio.
Observation: As majority of the respondents are satisfied with the design of Mahindra Scorpio, the
company should maintain the same standard and it is suggested to come up with suitable measure to
reduce the negative opinion among the consumer who are of the opinion that the fuel consumption is a
dissatisfyingfactor.

66
Table No: 6 Customer opinions toward space availability in Mahindra Bolero.

Factor Percentage
More Satisfied 27%
Satisfied 53%
Neither Satisfied & Dissatisfied 17%

Dissatisfied 3%
Total 100%
Source: Questionnaire

Figure: 6

Customer Opinions Toward

Space Availability

Interpretation 6: The sample drawn on the probability basis shows that out of 100% of respondents
53% of the respondents approached were satisfied with the space availability of the Scorpio. 27% were
more satisfied, 17% of neither satisfied and dissatisfied and 3% are dissatis fied with the space availability
of theScorpio.
Observation: As 80% of the respondents are happy with the space availability of the Mahindra
Bolero vehicle, it can be conducted that the company has undertaken proper R&D in this aspect.

67
The 20% of the respondents who have answered negatively may be comparingwiththevehiclein the
same category launched veryrecently.
Table No: 7 Marketing Strategy toward Maintenance of Mahindra Bolero.

Factor Percentage
Extremely Satisfied 23%
Satisfied 51%

Neutral 21%

Dissatisfied 5%

Total 100%

Source: Questionnaire
Figure:7

Marketing Opinions Toward

Maintenance

Interpretation 7: The sample drawn on the probability basis shows that out of 100% of respondents
51% of the respondents approached were satisfied with the maintenance of the Scorpio.23% were
extremely satisfied, 21% of neutral and 5% aredissatisfiedwiththemaintenance.

68
Observation: Though majority of the customer are satisfied that the maintenance cost of Mahindra
Scorpio is less, around 20% are not satisfied which may be because of comparison of Scorpio with the
newly launched competing brands coming with even lower maintenancecost.

Table No: 8 Customer awareness about power steering.

Option No. Of Respondent No. Of Respondents (%)

Aware 120 80%
Unaware 30 20%

Total 150 100%

Source: Questionnaire
Figure: 8

Customer Awareness
About Power Steering

Unaware

Interpretation 8: Out of 100% of respondents, 80% of the respondents approached were aware of
the power steering present in some variant of Scorpio and 20% were not aware of the power steering
present in some variant ofScorpio.

69
Observation:Most of the respondents approached were aware of power steering system introduced
in some variants ofScorpio.
Table No: 9 Customer perceptions about Scorpio

Very Good Good Average Bad Very Bad

20% 47% 21% 12% -

Source: Questionnaire
Figure: 9

Customer Perception
About Scorpio

Interpretation 9: The sample drawn on the probability basis shows that out of 100% of respondents
47% of the respondents gave Good response to Scorpio. 20% gave VeryGood response, 21% gave
Average response and 12% gave bad responseto Scorpio.
Observation: As 67% of the respondents are satisfied that they are happy with Scorpio, it satisfies that
the customer satisfaction levels are very high. If the company were to identify the pitfalls in their
product and undertake remedial measure, thus it will lead to moregood word of mouth publicity.

70
71
 FINDING
Based on the data gathered by administrating schedules to customers the following observations
aremade.

1. Mahindra Scorpio has excellent percentage of customer satisfaction according to the

datashownintable1ofthedataanalysisandInterpretationtopic.

2. Mostofthepeoplearesatisfiedwithitslowmaintenancecostandaftersalesservice
provided by MahindraScopio.

3. Basedonthefuelconsumption,mostofthepeoplearesatisfiedwithit.

4. BasedonSafetyandComfort,Design,Space,Maintenancemostofthepeopleare
satisfied withit.

5. LargenumbersofScorpiouserareawareofitspowersteering.

6. IfwetookthesatisfactionlevelofpeopletowardScorpio,itbecomesgood.

7. Itsfeaturesandstylesatisfymostofthepeople.

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73
 RECOMMENDATION

Mahindra Company has to implement good customer relationship management

strategy that enhances Marketing Strategies level.

The company can for the undertake R&D to improve the existing feature which field
help increase in the Marketing Strategies.

The company should promote about the entire feature offered by it.

As majority of the customer give opinion that they are satisfied is the factor, services
and design of the product of the company should taken not only maintain the existing
standard but also enhance them.

74
75
 CONCLUSION
Mahindra Scorpio has a very good market share in the state of U.k. for the SUV
segment.
The company is offering good services, which is reflected on the satisfaction of
the customer.
Majority of the customer are satisfied with the design of thevehicle.

76
77
 BIBLIOGRAPHY

➢ PhilipKotler12theditionMarketingManagement

➢ www.mahindrascorpio.co.in

➢ www.automobile.com

➢ DatafromMahindraandMahindraGurugrampremiermotors
dealer from Gurugram city.

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79
QUESTIONNAIRE

1) Customerprofile
1. Name
2. Occupationc
3. Age
4. Income
5. Address:-
1) Are you a satisfied with MahindraScorpio?
a. Yes

b. No

2) If “Yes” Which factor you consider is satisfies youmost?

a. Feature

b. LowMaintenance

c. Looks

d. After SalesService

3) Are you satisfy with the fuel consumption ofScorpio?

a. ExtremelySatisfied

b. Satisfied

c. Neutral

d. Dissatisfied

4) Are you satisfied with the Safety and Comfort of?

a. ExtremelySatisfied

b. Satisfied

c. Neutral

d. Dissatisfied

5) Are you satisfiedwiththe Design?

a. ExtremelySatisfied

b. Satisfied

80
 c. Neutral

d. Dissatisfied

6) Are you satisfied with space available inScorpio?

a. ExtremelySatisfied

b. Satisfied

c. Nor Satisfied &Dissatisfied

d. Dissatisfied

7) Are you satisfied with Maintenancecost?

a. ExtremelySatisfied

b. Satisfied

c. Neutral

d. Dissatisfied

8) Are you aware about power steering present inScorpio?

a. Yes

b. No

9) Your general perception aboutScorpio.

a. VeryGood

b. Good

c. Average

d. Bad

10) Do you want to give any suggestion about any change in theScorpio?

81