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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Scorpio - Charging Ahead Contd...

The company's automotive segment witnessed a 37% increase in revenues, up from Rs 18.28 billion in 2001-2002 to Rs 25.11 billion in 2002-2003.

Also, M&M's automobile sales increased by 16% in 2002-2003 (68,852 units) over the previous year's sales (55,920 units).

The most important aspect of Scorpio's growing popularity was the impact it seemed to be having on the country's automobile market.

Scorpio had made other automotive manufacturers look afresh at the utility vehicles segment, which till now was believed to have little scope for growth in India.

Background Note

Mahindra & Mahindra Ltd. (M&M) is the flagship company of the Mahindra Group, a diversified business group with interests in key sectors of the Indian economy. M&M was set up in 1945 to make general-purpose utility vehicles. The company soon expanded its operations to include tractors and light commercial vehicles (LCVs) in its product profile.

Over the decades, M&M diversified into other businesses with the help of alliances and joint ventures with Indian as well as foreign companies and secured a significant presence in many major business sectors in India and abroad.

By the 1990s, M&M emerged as a respected business conglomerate, catering to Indian and overseas markets, with a presence in many sectors such as automobiles, farm equipment, trade and finance related services, information technology and infrastructure development (Refer Exhibit II for milestones in M&M's history). In 1994, the group restructured its operations as part of a Business Process Re-engineering (BPR⁵) program.

After the restructuring, the core activities of Multi-Utility Vehicles (MUVs), LCVs and agricultural tractors remained with M&M, while the other activities (Hospitality, Trade and Financial Services, Automotive Components, Information Technology, Telecom) were spun off into separate entities and were organized under different business groups...

Excerpts >>

4] On September 06, 2003, Rs 46 equaled 1 US $.

5] BPR refers to a complete overhaul of the way an organization does its business. Instead of focusing on improving/modifying business processes, it reinvents the way the company carries out its business.