Scorpio - Marketing an Automobile Brand

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Case Details:

Case Code : MKTG076
Case Length : 14 Pages
Period : 2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Mahindra & Mahindra
Industry : Automobile
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"We are extremely proud of the Scorpio and are sure that it would make both customers and car makers think seriously about the SUV segment. We have anticipated the potential of the SUV segment and believe that the strong value proposition the Scorpio offers would make it a winner."

- Anand Mahindra, vice chairman and managing director, M&M, in June 2002.1

"As a product mix, it is a perfect fit. I would rate it seven on a scale of 10."

- Bijoy Kumar Y, Editor, Business Standard Motoring magazine.2

Scorpio - Charging Ahead

In June 2003, 'Scorpio,' a sports utility vehicle (SUV3) from Mahindra and Mahindra Ltd. (M&M), a leading Indian automobile company, celebrated the first anniversary of its launch.

This one year journey had been quite fruitful for Scorpio, which had impressed many industry observers and customers.

A year ago, within the first eight days of its launch, Scorpio had attracted over 10,000 customers to its dealer showrooms and over 3,000 customer enquiries, resulting in 1000 order bookings. According to company sources, by the time it completed its first birthday, Scorpio had sold 15,000 units across India.

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Media reports, automobile enthusiasts and industry analysts had all given the SUV extremely positive reports. With demand for the vehicle growing steadily, M&M even had to increase its production from 1,800 units per month in 2002 to 2,000 per month in June 2003, and 2,500 per month by late 2003.

Thanks to the high decibel advertising support, Scorpio had acquired high brand recall among consumers. In fact, it was said to be one of the very few automobile brands in India that successfully boosted the image of their parent companies (in this case M&M) as well.

Since its launch, Scorpio had won many prestigious awards, such as 'Car of the Year 2003' from Business Standard Motoring, BBC World Wheels and CNBC Autocar.

Besides improving M&M's image as an automobile company, Scorpio was reported to have played a major part in increasing the company's revenues for the financial year 2002-03.

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1] 'M&M launches Scorpio,' Business Standard (Online Edition), June 20, 2002.

2] 'M&M unveils Scorpio, price set low,', July 16, 2002.

3] Passenger cars and multi-utility vehicles (MUVs) are two major segments of the automobile industry. SUVs are a sub-segment of the MUV segment, along with Multi-Purpose Vehicles (MPVs) and Rural Transport Vehicles (RTVs). Refer Exhibit I for a note on the Indian automobile industry's MUV segment.


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