MAHINDRA &

MAHINDRA
GROUP 3

VISHAL VINIT 17PGP201

DIVYA CHANDRAN 17PGP186

AJAY JADHAV 17PGP205

RASHMI SAMANTA 17PGP115

AMANDEEP NANDA 17PGP171

 Mahindra & Mahindra

Contents
1 Executive Summary ............................................................................Error! Bookmark not defined.
2 Market Summary.................................................................................Error! Bookmark not defined.
2.1 Market growth ...............................................................................................................................3
2.2 SWOT Analysis .......................................................................... Error! Bookmark not defined.
2.3 Competitors ....................................................................................................................................6
2.4 Product Offering ............................................................................................................................6
2.5 Keys to success ...............................................................................................................................7
2.6 Critical Issues .................................................................................................................................7
3 Marketing Strategy ................................................................................................................................. 7
3.1 Mission..............................................................................................................................................7
3.2 Marketing Objectives ...................................................................................................................8
3.3 Target Markets ...............................................................................................................................8
3.4 Positioning ......................................................................................................................................8
4 Marketing research ................................................................................................................................ 9
4.1 Distribution ................................................................................................................................. 10
4.2 Communication: ....................................................................... Error! Bookmark not defined.
5 Financials ...............................................................................................Error! Bookmark not defined.
5.1 Sales forecast ............................................................................. Error! Bookmark not defined.
6 Voice of Customers..............................................................................Error! Bookmark not defined.
7 Voice of Stakeholders ........................................................................Error! Bookmark not defined.

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1. Executive Summary

Mahindra and Mahindra Limited (M&M) is a multinational automobile manufacturing corporation

headquartered in Mumbai. It is one of the largest vehicle manufacturers by production in India and the
largest manufacturer of tractors in the world. It is a part of Mahindra Group. It was ranked 21st on a list
of top companies in India by Fortune India 500 in 2011. Its major competitors in the Indian market
include Maruti Suzuki, Tata Motors, Ashok Leyland and others. Mahindra introduced the first utility
vehicle to India in 1947 and 70 years later it has a portfolio of category defining UVs that are tough,
reliable and refined. Mahindra’s UV’s are sold in 70 countries worldwide and the company has R&D
facilities in India and US.

With a rapidly expanding economy and an increasingly prosperous middle-class Mahindra has an
immense opportunity for growth in India. Slowly and steadily Mahindra has also continued its
international expansion with a product launch in Brazil last year. Global trend has been moving towards
electric vehicles and environmentally sustainable solutions which Mahindra has tried to capitalize on
with its investments in the Electric vehicle segment.

Moving forward Mahindra should continue developing India specific products with localized innovation
keeping in mind a global perspective. Strengthening after sales service and distribution would help it in
cementing its position as a market leader.

2. Market Summary

2.1 Market Growth

Automobile ownership pattern in India is reflective of both the income as well as the age of the buyer.
India being a country with low average incomes, automobile ownership is still seen as an aspirational
symbol. The chart below gives an age wise ownership trend for types of vehicles.

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While most entry level buyers in India prefer buy hatchback cars due to urban congestion and
price constraints. The UV segment is also witnessing robust growth on account of rapidly rising
incomes.

The chart below gives comparative data regarding income levels and average car prize.

In India car ownership varies across states as a function of the income levels in that state. The
more prosperous states have a higher rate of ownership than the poorer ones. The below chart
ranks Indian states by registered motor vehicles per 1000 population.

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 Mahindra & Mahindra

The market for Mahindra UV also follows a roughly similar trend across Indian states. Two
specific products of Mahindra namely Bolero and Scorpio have a special appeal to the rural
segment due to their rugged image.

2.2 SWOT Analysis

Strengths
 Market leader in multiple automotive
segments: Mahindra & Mahindra has
leading market share in a tractor as
well as in the utility vehicles segment.
Also, the company has strong market
share in the commercial vehicle as well
as passenger vehicle segment. Strong
market share provides a competitive
advantage to the company and allows
the company to focus on innovation.
 Strong Research & Development
(R&D): M&M has a highly focused
R&D department constantly focusing
Weaknesses
 Geographic dependence: M&M is
depended for the majority of its
revenue (over 60%) from India, which
would affect its business in case of any
economic slowdown or high inflation.
 Product Recalls affects brand
image: M&M has had to recall many of
its products in the recent past. For
instance, In February 2015, M&M
recalled XUV500 manufactured before
July 2014. Such incidents affect the
brand image of the company and
consequently affect sales.

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 Mahindra & Mahindra

on developing new products and

technologies. M&M majorly focuses
on Value addition and Value
engineering (VAVE) approach,
designing modularity, use of alternate
materials etc.
 Excellent products according to Indian
road conditions: Mahindra &
Mahindra’s SUVs are suited perfectly
to Indian road conditions especially,
Mahindra Scorpio which has been an
outstanding performer for many years.
 Low after sale cost: M&M has a
competitive advantage on after sale
cost since it is lower than the industry
average and also have high availability
of spare parts to different parts of the
country.

Opportunities
 Growth in Indian automotive
industry: The Indian automotive
industry is growing year on year with
over 12% growth from the previous 3
years. The industry is expected to
grow at a CAGR of 13% in the next 4
years. This growth can be beneficial
for M&M.
 Increasing Demand for Hybrid Electric
Vehicles: There is an increasing
demand for Hybrid Electric Vehicles
(HEVs) around the world. The demand
for HEVs is expected to grow at a
CAGR of 19% in the next 3 years.
M&M has a strong portfolio of HCVs
and is set to be benefited by the
growing demand
 Emerging nations: M&M should look
forward to tapping the emerging
nations around the world which have
high potential. M&M should build over
its global footprint to tap the emerging
markets.
Threats
 Competition in the automotive
industry: M&M faces intense
competition from various automotive
companies such as Tata Motors, Ford,
Volvo and General Motors etc. This
can affect M&M’s market share and
put pressure to constantly innovate on
M&M.
 Stringent Regulations: M&M is subject
to strict regulations by the
government and environmental
agencies in terms of emission levels,
noise levels etc. Such regulations keep
changing and thus increase
compliance costs for the companies.
 Ever increasing fuel prices
 Substitute modes of public transport
like buses, metro trains etc.

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 Mahindra & Mahindra

2.3 Competition
Mahindra faces tough competition from players like Maruti Suzuki (Vitara Brezza), Hyundai
(Creta) and Toyota, whose new launches and thrust on product development in the category has
eaten away a substantial chunk of M&M’s market share.
.

2.4 Product offering

Mahindra offers a wide range of utility vehicles at competitive pricing following its success from
Scorpio and Bolero.

Mahindra XUV500 Mahindra TUV300

Price 12.47 Lakhs Price 9.94 Lakhs

Fuel Type Diesel Fuel Type Diesel
Power 140bhp@3750rpm Power 84bhp@3750rpm

Torque 330Nm@1600-2800rpm Torque 230Nm@1500-2250rpm

Mileage: 16 kmpl Mileage: 18.49 kmpl

Engine Displ.: 1493 cc
Engine Displ.: 2179 cc
Power
Power Windows Y Windows Y
No. of gears 6 No. of gears 5
Airbags N Airbags N
Central Locking Y Central Locking Remote
Anti-Lock Braking Anti-Lock
System N Braking System Y

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Mahindra KUV100

Price 4.58 Lakhs

Fuel Type Diesel
Power 77bhp@3750rpm
Torque 190Nm@1750-2250rpm
Mileage: 25.32 kmpl
Engine Displ.: 1198 cc
Power Windows Y
No. of gears 5
Airbags 2 (Driver & Co-Driver)
Central Locking N
Anti-Lock Braking System Y

2.5 Keys to success

The key to success of being the leader in utility vehicle segment is that right from the inception
of willys jeep, by constant innovation the company has been able to increase the portfolio to
cover from two wheelers to heavy trucks to SUVs. The product being designed keeping in view
the end consumer expanding the reach overseas.

2.6 Critical issues

According to data from companies and the Society of Indian Automobile Manufacturers (Siam),
M&M’s market share in the UV segment fell from 39.7 per cent (2,22,324 units) in 2015-16 to
just 29.2 per cent in 2016-17. So Mahindra and Mahindra has to start coming up with more
innovative products to give a tough sweat to competitors.

3. Marketing Strategy
3.1 Mission
To create India's largest automobile and automobile-related products distribution network by
providing dealers and customers with the largest choice of unique world-class products and
services.
“We don’t have a group wide mission statement. Our core purpose is what makes all of us want
to get up and come to work in the morning” – Anand Mahindra

3.2 Marketing Objectives

Mahindra is providing the Indian customers with a range of products at different price levels.
The company seeks to fulfill following benefits that are important to its customers:

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 Quality Construction – The customers work hard on their money and do not wish to spend on a
vehicle that may be easily damaged. In the Indian context with the poor roads and infrastructure
this need is even more important.

 Well thought design – The Indian market and the customer has its unique needs which will not
be addressed by copying and importing western designs. The Indian customer demands decent
quality at a reasonable price.

 Customer Service – Exemplary service is required to build a sustainable business that has a loyal
customer base. This is even more important in an extremely competitive market like India.

 Reasonable pricing- The Indian market is extremely price sensitive and hence the company
requires to minimize its costs at every step of the value chain.

3.3 Target Markets

For its SUV segment anchoring on its premium looks and competitive pricing Mahindra and
Mahindra targets young executives from upper middle income bracket.

3.4 Positioning

M&M advertises smartly. The marketing strategy is not only about our TV advertising, a lot of
print, digital and social media advertising is included to.

3.4.1. Social media

Marketing on social networking sites is being utilized to showcase products and services,
receiving customer feedback and staying connected to latest trends.

Mahindra connects through social networking sites to reach out to current and prospecting
customers. It connects with leading social networking sites like Facebook, Twitter, LinkedIn,
YouTube and Google+.

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 Mahindra & Mahindra

Anand Mahindra the executive chairman is highly active on the social media platform Twitter.
He has over 5 Million Twitter followers and is influential in the twitter universe because of his
wide variety of views on Twitter. His twitter handle is @anandmahindra.

3.4.2 TV Commercial

Although initially one of the most preferred medium of communication, it still has a strong hold
on customer preferences. Advertisements featuring attractive models and actors with their
products have been used to make Mahindra and Mahindra a household name.

4. Market Research
The following things are considered by Mahindra and Mahindra while doing a Market Research
for utility vehicles :

1. Conduct Market research in various demographics for understanding opportunity, demand ,

growth potential and competition.

2. Understand customer needs, pains and values.

3. Identify the gaps in current offerings and create multiple concepts of proposed product.

4. Offer the concepts to potential customers to analyze the difference between what is offered
and what is required.

5. Develop subjective functional image targets based on proposed concept evaluation.

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 Mahindra & Mahindra

4.1 Distribution

Car manufacturers don't sell directly to consumers but instead use dealers as their retail outlets.
The number of intermediaries depends on the market and the products.

4.1.1 Market Influence

The goal of the manufacturer is to deliver maximum value to customers. Often the market
structure makes it difficult for the manufacturer to service consumers directly. Instead,
specialized intermediaries take over specific tasks. If there are few, large customers
concentrated in one area, it makes sense for the them to serve them directly. If thousands of
customers are spread around the country and order small quantities, the manufacturer may be
better off focusing on production and leaving distribution to others.

4.1.2 Product Influence

A manufacturer that produces small quantities of high-value products can easily find the few
customers required. A mass-market producer of millions of low-cost items requires a major
effort to service customers and usually uses intermediaries. Products that require special
expertise or quick delivery force manufacturers to sell directly or limit the number of
intermediaries. Manufacturers have to balance costs and customer convenience with ensuring
the product marketing is accurate and customer support is adequate.

4.1.3 Potential Strategies

Distribution strategy characteristics include the structure of the channel and the nature of the
partners. Companies can gain a competitive advantage by creating shorter, low-cost channels or
by selecting partners who fulfill their role more effectively than those used by competitors. The
optimal distribution channel strategy uses only intermediaries that add value for the final
customer, either by reducing costs or by delivering additional convenience, service or functions.

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4.2 Communication

1. Mahindra and Mahindra generally organize a pre-launch event where they release the images
of the product which helps them in getting feedback about the design.
2. Next they release a video of the vehicle plying on the road, before the official launch on
various social networking sites.
3. Mahindra & Mahindra also targets various e-commerce platforms to sell their new launch and
has already started taking bookings on Flipkart, car and bike portals and its own e-retail platform
M2ALL.
Looking at the digital market penetration, Mahindra & Mahindra has broadened its horizons by
tying with e-commerce platform making the sales easier for online customers.

5 Financials

5.1 Sales Forecast

The leader in utility vehicles (UV) segment for several years, Mahindra & Mahindra (M&M), seems to
finally be losing ground to other auto-makers such as Maruti Suzuki, Hyundai and Toyota, whose new
launches and thrust on product development in the category have already eaten away a substantial
chunk of M&M’s market share.

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According to data from companies and the Society of Indian Automobile Manufacturers (Siam), M&M’s
market share in the UV segment fell from 39.7 per cent (2,22,324 units) in 2015-16 to just 29.2 per cent
in 2016-17. The total sales in the UV segment for the last financial year grew at a substantial 30 per cent
to 7,61,997 units. However, while UV sales for Maruti Suzuki and Hyundai, for example, grew at nearly
double and 52 per cent, respectively, M&M’s UV sales grew just marginally.

Experts put the blame solely on the market leader lagging in new product launches in the category,
especially in the compact SUV segment. Both Maruti Suzuki’s Vitara Brezza and the Hyundai Creta have
grown at a significant clip as far as sales are concerned over the last year. “Customers now want more
features and newer options. There needs to be constant renewal in terms of new models launched,”
pointed out Abdul Majeed, auto analyst and partner, Pricewaterhouse Cooper.

The trend is not isolated only to Maruti Suzuki and Hyundai, while the front runners in terms of volumes
after M&M.

“SUV market is growing with customers looking for newer experiences...our current SUV line is strong
with Creta, Tusco, etc,” pointed out Rakesh Srivastava, director (S&M), Hyundai.

6 Voice of Customers:

Suraj Thakur
Bolero Pickup is a very good utility vehicle for those who carry small loads or packaged to longer
distance. It is very comfortable and has spacious cabin with all the necessities which definitely make
the occupants comfortable. The smooth gearshifts make driving easier. This pickup truck is fatigues
free which will further adds to the safety of the occupants.

Rajeev Kumar
Mahindra Imperio is a good utility vehicle which provides comfort and convenience. It has good
loading ability. It is very spacious from inside. The look of the vehicle is also very good. Overall it is a
nice blend of smart technology and usability.

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7 Voice of Stakeholders:

Rakesh Jadhav
Designation: Assistant Manager in MQA
Mahindra & Mahindra is a better place for work. The area in which he was working includes spot
welding and CO2 welding. It has a fast paced environment with motivated employees. The work
culture is very good, it has respect for individual and family. Mahindra & Mahindra invest a lot in
Marketing. It includes Auto expo and International expo. It gives advertisement through print media
and social media. Also it conducts annual surveys to know the merits and demerits of their products
which are available in the market. Overall the company has good opportunity to grow more.

Aslam Baig
Designation: Assistant Manager in MQA
Mahindra & Mahindra is good place for learning. The management here is very cooperative, it has
many work strategies to learn, since it is a Multinational Company. It has always tried to inbuilt the
best features in feasible prices. The company has great future ahead.

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