Business to Business group B 8

Scorpio from Mahindra: Geared up for Success

Answer
Business to business marketing concept defines need of a target market and modifies organizations
products or services to satisfy those needs more successfully than its competitors. Scorpio achieved
its targets on market share and achieved a volume of 12,000 vehicles in the first 9 months of its
launch .Scorpio from Mahindra started providing low cost transportation range to rural and semi
urban markets, they developed strong presence in open market with value for money product. It
defines why Mahindra and Mahindra embarked on project Scorpio to make its presence in open
market and to compete with global players.

Business marketing strategy will provide proper guidance and stimulation for research and
development of new products. Strategy was to capture 22% of the premium hard top market in 9
months. Scorpio advertising had a very high recall for the Mahindra brand as well as for the product
advertising actually positioned Scorpio as a powerful vehicle with a sporty look. Scorpio took a
strategic branding approach.

Planning strategy -products in business to business will be technically complex and customised
Hence technical expertise is required, along with good performance. India is the 3rd largest car
market in Asia, the planning from Mahindra and Mahindra was to provide low cost transportation to
rural and semi-rural markets and provide value for money products. Mahindra and Mahindra
wanted to compete with global players and make its presence in open market embarked on project
Scorpio. Penetrative pricing strategy was adopted. Mahindra and Mahindra trapped the customer
requirement and mapped the market potential of various vehicle categories.

Promotion strategy emphasis needs to be on personal selling. Promotion was done through mass
media, direct marketing and through events. Hey Scorpio advertising had a very high recall for the
Mahindra brand as well As for the product. Advertising actually position Scorpio as a powerful
vehicle with a sporty look. Mahindra image give Scorpio respected manufacturers, technologically
advanced manufacturers, which was suitable for city driving and made value for money vehicles
which were proud to own

Distribution and sale of products Distribution is done by high concentration of goods in industrial
markets they serve in places with large amount of industries. They have fewer channels of
distribution. Distribution was based on the concept of serve less markets but serve them well.
Phased launch places in Mumbai, Bangalore, Delhi and Chennai and within 4 months 20 cities and
within a year 50 cities distribution strategy was adopted.

Within the first year of launch sale of product was planned 12,000 scorpions.
Question 2
Analyse the market opportunities and company capabilities as the basis for market selection,
developing customer value propositions and competitive differentiation in contemporary business
markets

Answer
Business to business marketers have a great opportunity to get involved by helping the buyer
organization to develop product specifications and characteristics. It would give a definite advantage
by ensuring that the needed product includes his or her company’s product characteristics and
specifications. Mahindra and Mahindra image was quite bad and the market share was quite low.
Mahindra and Mahindra have done well in the domestic market is now moving forward on its path
to become a global niche player that is it stretching its activities in foreign markets carmaker over
the world everyone like that India can design a car on its own and make it globally acceptable India is
not 9th country in the world the company is in the process of negotiating joint ventures and markets
like Spain Italy South Africa Indonesia Russia Equador for marketing of Scorpios. Company
Capabilities after Scorpio’s launch things went up for Mahindra which was then awarded from
various bodies. Mahindra and Mahindra had more than 39% of market share. In hard tops sold
11,800 Scorpio in the first 9 months of operation and due to these campaigns Mahindra's image
improved. Indian Labour cost is only around 8 to 9% of sales .

Developing of customer value propositions, Scorpio managed to pull out customers from the C
segment of vehicles. Strategy delivered with more and more small and mid-size car buyers choosing
Scorpio over others.

Competitive differentiation in contemporary business

Mahindra and Mahindra is known for lowest project costs with intensive testing and new
manufacturing setups which gave Scorpio an edge. Penetrative pricing gave Scorpio an edge
Distribution was based on serve less markets but serve them well. Positive opinion about Mahindra
moved up by 18% among MUV SUV owners and by 11% among all car owners .Scorpio successfully
captured the sea segment of vehicles by customers. Project Scorpio aimed at creating a world class
8 Indian product full store Mahindra and Mahindra developed a new product to meet the objectives
and to create world class product. Are you need process called ID a M integrated design and
manufacturing , best in world types but in house execution, customer focus from thought to finish, a
cross functional Co located young lean team , lowest project costs, intensive testing and all new
manufacturing setup .

it is easier to make what you can sell then to sell what you have made. That was the guiding force of
IDAM. integrated design and manufacturing is a product development process which was adopted
by Mahindra and Mahindra to streamline the delivery of a world class zero defect trouble free
product to the customer . It and can process the entire value chain starting and ending with the
customer. The outside in approach and shows that the product is designed around the customer and
not vice versa. I like that restaurant Department structure ID a M team consisted of a cross
functional teams Co located in the IDM centre in Mumbai. These teams had cross functional
strengths that covered every aspect of product development from design and development, testing
and validation and manufacturing to vendor development and marketing .