Brand Positioning Decision- M&M- Urvashi and Team (1)

7/22/2019 Brand Positioning Decision- M&M- Urvashi and Team (1)

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Brand Positioning Decision- Mah

Team Members-

Urvashi Chandna Pranav Datt Gaurav

Sambeet Mishra Siddharth Setia

Abhishek Nagre


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Closed market

Five players

Long waiting

periods and

outdated models

Sellers market

Joint venture (JV):

Indian government and

Suzuki formed Maruti

Udyog; commenced

production in 1983

Component

manufacturers entered

the market via JV

Buyers market

Sector de-licensed in

1993

Major original

equipment

manufacturers (OEMs)

started assembly

operations in India

Imports permitted from

April 2001

Introduction of value-

added tax in 2005

More than 35 market

players

Removal of most import

controls

Indian companies

gaining acceptance on a

global scale

Setting up of National

Automotive Board to act

as facilitator between

the government and

industry

0.4 millionunits (1982)

0.6 million

units

11 million units(2007)

Before 1982

2008 onwards

198392

19932007

20.7 million units

(FY13)

Evolution of the Indian Automotive Sector


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Indian Automobile Sector (2000 2013)

Favourable Indian market conditions are acting as a catalyst for luxurypremium carmakers impetus from new launches

Emerging as an export hub for sports utility vehicles (SUVs).

Global automobile majors are looking to leverage India's cost-compemanufacturing practices and are assessing opportunities to export SUVs.

Key marketfor hybrid and electric medium-heavy-duty trucks and buses.

Production of passenger vehicles in India was recorded at 3.23 million in 2012

Expected to grow at a compound annual growth rate (CAGR) of 13 per cent d2012-2021

Passenger car sales stood at 1.89 million units in 2012-13

Total number of passenger cars in India is likely to touch around 8 million units by


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Major Developments

Daimler is developing its Indian commercial vehicle operations as an export h

Japan-based automobile manufacturer Isuzu Motors' local subsidiary IMotors India has entered into an agreement with Hindustan Motors (HM)contract manufacturing of Isuzu SUVs and pickup trucks

Luxury car maker BMW has started local production of 'MINI Countryman' afacility in Chennai


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PoPs And PoDs MUV Segment

Upgraded/uptown version of a jeep, forthe urban market, large family carrier

Number of added features

Mahindra Bolero-POPs

Family car, rugged and tough

Feasible for outdoorTATA Sumo-

POPs


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Same Model over different Platforms (BoleroCamper, Bolero Load king)

Jeep with modern technology

Cheaper as compared to Tata SumoFirst attempt from Mahindra to entre the urban market

Mahindra Bolero-PODs

Noisy engine, dated technology used

Well established brand even in the commercialcarriage market

Tatas earlier experience in the urban market

TATA Sumo-

PODs


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LOGAN- VERITOInitial: Mahindra Renault JV : Logan

At launch, Mahindra Logan was positioned at the entry level A3 segment, witpricing and space as the primary selling factors. This is clear from the initialpositioning of Logan as:

First wide body car in India

Largest boot space in its category

Widest cabin room space in its category

Later, the company went in for a repositioning strategy by turning to emotiondriven advertising by highlighting the value-for-money, mileage, ride quality trouble-free ownership


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Reason for brand disappearance

Sales decline from 2009 to 2010 by 60 %

The segment in which it is places is A3 segmentas defined by SIAM

Logan faced the following problems because ofits ambitious positioning:

Renault talks with Nissan and other automakersgave a differnt message to the consumers. the

perception of the indian consumer is ofacceptance of those who stay for long in themarket.

Taxi operators began to buy the logan in largenumbers

Mahindra Logan is an average performer on priceand mileage aspects with serious issues oninteriors and style dimensions. this brought downthe consumers perception about the car, as

against the way it positioned (snake plot analysisof Logan vs other cars)


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Mahindra Verito Repositioning

Repositioned with rational + personality : "mature man's sedan"

Introduction of the Verito man

Tag line : Grow up to Verito


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What did Mahindra gain from the JV

Growth in sales by 79% in the 11 months period

Exclusive rights to the manufacturing of Logan model in india The engine &Transmission parts would be supplied by Renault { by paying royalty fee}

Mahindra can modify and refurbish the car their way even making smaller

versions of the same sedan Mahindra is even manufacturing cars for the Renault company by the Renau

badge for exporting to countries like Africa etc.


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Thank You !

Brand Positioning Decision- M&M- Urvashi and Team (1)

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