An Analysis of

Current Buying Behaviour,

Environment, Marketing
and Selling

For SUV Manufacturers in India

Submitted to:

Prof. Dr. Pingali Venugopal

By :
• Sanjay Katale DB09001/2405914

• Vivek Gaur DB09002/2405892

• Ashish Kumar DB09006/2405924

• Majaz Khan DB09190/2406053

Batch No. PGCBM – 16

Group No. 08

Study Centre : Chandigarh/Mohali/Panchkula

Product Category
SUV
Need
Automobile with features like

o Space
o Power
o Style
o Fuel efficiency
o Performance
o Comfort
o Low cost maintenance

Current Buying Behavior

Social and Cultural
o Power of the Vehicle Makes a statement
o SUV projects Image of Rich and Famous
o Thrill and Passion of SUV
o Younger Demographics with preference towards SUV
o People prefer Vehicle that can accommodate a family
o Poor Road Infrastructure means need for Tough Vehicle with High
Ground Clearance

Economical
o GDP growing at 7-9% increases Disposable income
o Growing SUV Market
o Low Initial Customer Base.
o Running on Diesel reduces cost of running and is cost effective if the
vehicle runs for more than 2000kms a month as compared to a Petrol
vehicle.

Technological
o Current Generation of Diesel Engines technologically advanced.
o World over People preferring Diesel Engine powered vehicles.

Current Consumer Behavior Analysis of the 3 Brands

Picking Loyalty/Credence

• Mahindra Scorpio
Variety Seeking Problem Solving

. • Ford Endeavour
• Tata Safari
Study of 3 brands

1) Mahindra Scorpio

 Launched in 2002
 Currently holds 35% of the market.
 Mahindra Scorpio has emerged as a true urban player

SWOT

Strengths Weaknesses

• Mahindra Leader in the UV market • Not good off-road capabilities

in India for the past 50 years
• Capability to Design and
Manufacture Automobiles
• Ability to position as a CAR
• Strong Dealership Network
• Cost of Maintenance
• Good Re-sale Value
• Sloppy handling, the car's biggest
weakness.
• Its big size creating problem in
parking, traffic area.
• High cost for rural area.

Opportunities Threats

• Growing market of SUV in India. • Due to Traffic congestion the shift to

• Indian Younger Demographics.
• Creating and international brand by
adding FORD brand with Mahindra.
smaller cars.
• Worldwide due to Oil prices the shift
from SUV to smaller cars.
• Getting popularity in criminal
activities (Most of the criminals using
this vehicle which is harmful for the
brand image)

Environmental Analysis:

Parameter Variables Threat/Opp Implication S/ W

Commodity and Threat Long Term Contracts W

Raw Material Prices
Product
(availability) Technology
Opportunity Focus on R& D S
Power of Vehicle
Opportunity Power makes statement S

Functioning Easy to drive Opportunity Try to update with new S

 technology like GPS,
Remote sensors, Digital
operating information to
driver, Ergonomics. Try to
improve the off-road
Safety enhanced Opportunity behaviour W

Introduce safety features

like air bags for all
passengers, ABS, as a
vehicle integrated features W
Cost of running Opportunity (Not optional)

Focus on after sales service

Competitors Opportunity Focus on interiors to give W
an experience of luxury car.

Utility(Benefit) Need technology

Comfort Opportunity improvement on suspension
and handling. W

Seasonal Threat Use festivals for giving W

offer
Demand
Economic Reduce price and W
Recession Threat introduce Variants

Growing
Acceptance- automobile Opportunity
Join hands with competition S
Macro market

Style
Acceptance- Maintain & Enhance its look
Look Strength S
Micro & unique style.

TV
Advertisement
Maintain & increase its
Sports events Opportunity
Marketing marketing promotion and S
promotion
selling activities.
Retail network
2) Tata Safari
 Launched in 1998
 Currently holds 27% of the market

SWOT

Strengths Weaknesses

• Capability to Design and Manufacture
Automobiles with the Group
• Good Off-road capabilities
• Strong Dealership Network
• Cost of Maintenance
• More than a decade old product with
customer Fatigue due to not too much
change in the Design.
• Product Quality
• Not enough clarity on where TATA
wants to position the vehicle.
• Poor Re-sale value

Opportunities Threats

• Part of TATA group with access to
World Markets and ability to source
components and sell worldwide.
• Growing market of SUV in India.
• Indian Younger Demographics.
• Group now more successful in Car and
Macro-car segment means Tata is more
focused on Indica, Indigo and Nano
Platform.
• Not able to sell in large numbers

Environmental Analysis:

Parameter Variables Threat/Opp Implication S/ W

Product Commodity and Threat Long term contracts. W

(availability) Raw Material Prices

Technology
Opportunity Focus on R& D
Power of vehicle S
Opportunity Power makes statement
Functioning Easy to drive Threat Improve the Handling and S
Ergonomics

Safety enhanced Opportunity Focus on Crash Test

worthiness and introduce W
safety features

Cost of running Opportunity Focus on after sales service

and Quality of the product
W
 Competitors Opportunity Focus on Handling, Quality W
and interior to give an
experience of a car. Focus on
Improving manufacturing
Utility(Benefit)
process.

Comfort Opportunity Need new Design and S

technology improvement.
Seasonal Threat Use festivals for giving offer W
Demand
Economic Threat Reduce price W
Recession
Acceptance- Growing Opportunity Join hands with competition S
Macro automobile
market
Style Introduce the next generation
Acceptance-
Look Strength design to enhance its look & S
Micro
unique style.
TV
Advertisement
Increase its marketing
Sports events Opportunity
Marketing promotion and selling S
promotion
activities.
Retail network
3) Ford Endeavour
 Launched in 2007
 Currently holds 15 % of the market

SWOT

Strengths Weaknesses

• Luxury SUV Designed for Asian Market. • Positioning not clear about SUV or
• 2nd Oldest international brand makes Luxury CAR.
its different from others brands. • Weak Dealer Network
• Unique look & style • Cost of Maintenance
• Price
• Poor Re-sale value

Opportunities Threats

• India a growing market of SUV. • Since it has lot of imported

• First super luxury SUV in Asian market. components, FOREX valuations impact
the cost.
• Parent company facing challenges in
US.

Environmental Analysis:

Parameter Variables Threat/opp Implication S/ W

Commodity and Threat Reduce the import content W

Raw Material Prices and have long term contracts
Product to reduce price
(availability) Focus on India centric
Technology S
Opportunity Technology
Power of vehicle S
Opportunity Power makes statement
Functioning Easy to drive Opportunity Try to improve its design S
from Truck like to more Cars
like features.

Cost of running Opportunity Focus on after sales service W

and decrease the import
content.
 Competitors Opportunity Focus on how to reduce the W
cost of Product.
Utility(Benefit)
Move from Truck to Car like
Comfort Opportunity driving features and increase W
the Space utilization inside.

Seasonal Threat Use festivals for giving offer W

Reduce price
Demand
Economic Threat
Recession W
Acceptance- Growing Threat Join hands with competition S
Macro automobile
market

Acceptance- Style Strength Maintain & Enhance its look & S

Micro Look unique style.

TV Increase its marketing

Advertisement promotion and selling
Sports events activities.
Opportunity
Marketing promotion Increase the Retail Network. S
Retail network Use Events, Auto Magazines,
sport channel to promote the
Brand.
What they are marketing and how they
are trying to create brands

Mahindra Scorpio
Current Tag Line: “Mighty Muscular”
Started Tag Line : “Nothing else will do”

All the vehicles are feature packed within a price range of Rs. 6-8 Lakhs. All of them,
including UVs, are with a proposition of luxury and comfort, with no differentiation. With
this analysis it came out clearly that the positioning of Scorpio had to be such that it
should communicate that the vehicle is better than any of these cars and is a better buy in
terms of money. To appeal to a car buyer, the Scorpio needed to be seen as a car that
offers much more.

It promised Good looks, car like comfort, great value, Young modern, premium, city
companion / extension of lifestyle.

Emotional benefits: Ownership experience of thrill, excitement and power

Relational benefits: Promise: ‘Luxury of a car. Thrill of an SUV’

Tata Safari
Current Tagline: Reclaim your life
Started Tagline: Make your own Road

Safari is India's first full bodied luxury sport utility vehicle is known for its comfort and
luxury. Launched as an off-roader, the positioning of Safari has been changed multiple
times. Initially Safari was positioned as an off-road vehicle. The ads had jungle as the
main locale and the baseline said “Make your own road". The new DICOR says "Reclaim
your life" taking the campaign to a higher level and trying to connect with the customer at
an Emotional attribute. Initially the functional aspects were promoted but now when the
brand awareness is high the connectivity with the customer is at a higher level. Here
Safari dares you to break from your past and go after your dreams.
Ford Endeavour
Tag Line: Lead wherever you go

Endeavour is an attractive combination of style, power and performance. This premium

SUV is synonymous with style, power success, performance and adventure, qualities that
formed basis for a suitable brand association.

Ford India has signed actor Suniel Shetty as the brand ambassador for its SUV - the
Endeavour.
Selling activities and Advertisements

Mahindra Scorpio
Positioning and Advertising

Scorpio is positioned as a UV with great power and style that offers "the ultimate driving
experience, driving thrill, luxury and comforts of a passenger car along with value for
money." It targets individual car buyers in the top-end small car segment and mid-size car
segment, who already owned cars and were ready to invest in another vehicle...

Advertising and Promotions Strategy

The creative strategy was to drive home the ‘Car Plus’ positioning forward. There was a
need to leverage on product strengths and a need to establish car plus story. Hence the
product was to be the hero in all communications
The tone and manner was to help associate the brand with the modern and urban
lifestyle. The TVCs as well as the press still-shots were shot in Australia to provide an
international city feel. This brought in the international, premium, up-market association
for the brand.
Pre-launch excitement and buzz was created by a full blown PR program. Media coverage
on the Design and Development process, the people behind the Scorpio, the obsession,
the world class technology, etc set the tone for the hyped up launch. PR was also the first
tool used for launching the Scorpio. The coverage of the launch was massive. It got four
cover stories.

Pricing Strategy: to be a premium brand yet having universal appeal

Scorpio was to compete with the midsize cars like Hyundai Accent, Ford Ikon, Opel Corsa,
Maruti Suzuki Esteem on the one side and UVs like Toyota Qualis, Tata Safari and the
Tata Sumo on the other. Scorpio adopted the penetrative pricing strategy positioned in
the psychological price barrier of Rs. 5 -7 Lakhs. Over the years multiple variants have
been launched to cater to customers in the price range 6-10 lakhs.

Advertisement over the years

• During the first phase, the product identified with the need for lifestyle imagery.
The television commercials depicted the product and a pan-global imagery, even as
the print advertisements focused on functional benefits. So one got to see copies
like `Car you walk into, and not crawl into' across newspapers.
• In phase two, print ads were centered on communicating new product
developments.
• In The third phase the focus was on the `car plus' statement. What followed was a
series of advertisements focusing on people and lifestyle rather than the product.
• All Scorpio advertisements show the vehicle in urban settings driven many times
by women conveying the message of "ease of driving." Unlike competitors'
advertising strategy, no imagery of off-road settings and `wilderness' or `break-
free' connotations were depicted
Tata Safari

Marketing strategies of Tata Motors V/S Advertisements

Product, Branding, and Advertising

Initially Safari was positioned as an off-road vehicle. The ads had jungle as the main
locale and the baseline said “Make your own road". The new DICOR says " Reclaim your
life" taking the campaign to a higher level and trying to connect with the customer at a
Emotional attribute. Initially the functional aspects were promoted but now when the
brand awareness is high the connectivity with the customer is at a higher level. Here
Safari dares you to break from your past and go after your dreams.
Other important marketing strategies are such as the packaging, innovations, and quality
control. Tata Motors provide many innovative features to attract car lover. One of these
innovations is the Tata Safari 4X4 Dicor that has “Reverse Guide System”. A weather-
proof camera is fixed to the rear car to help the driver while reversing the car.

Pricing Strategy
• Exciting and exclusive corporate offers from time to time
• Attractive Finance and Leasing Options
• Structured Deals
• AMC & Extended Warranty - Value Care
• Customization - Bulk Deals

Advertisement over the years

• Make your Own Road

Initially Safari was positioned as an offroader, the ads had jungle as the main local.
Later consumer research revealed that Safari is used by urban folks and perceived
as a City vehicle and not an off-roader

• Car for the urban Jungle

Tata projected Safari as a lifestyle product and promoted Safari using all media
including Placement in Film ( ROAD) , sponsoring events and high decibel media
blitz.
• Reclaim your life
The new DICOR says " Reclaim your life" taking the campaign to a higher level and
trying to connect with the customer at a higher plane. The new strategy of Tata
Motors is to load their products with value, Safari is also loaded with all the high
techs that is seen usually in high end SUV's.
Ford Endeavor

Advertisement 2007
Advertisement 2009

Flexible seating

Entertainment
Positioning and Advertising

India’s No.1 SUV+, Ford Endeavour is positioned as combining great power, style,
comfort and safety, on the road and off.

In all, the Ford Endeavour uses the best technology to create an ultra-responsive SUV that
converts every last drop of fuel into refined power.

Ford has positioned Endeavour as

Power personified

The Ford Endeavour is a powerful, quick and agile. Because underneath the hood
lies the best-in-class 3-litre Duratorq TDCi engine, which delivers 156PS of power
and 380Nm torque to give you the true 4x4 experience.
 Safe

Wherever you go, whatever the terrain, your safety is paramount. An extremely
strong body construction with side impact beams ensures enhanced all-round
protection. And the Ford Endeavour comes with a whole host of safety features like
Airbags for the driver and front passenger and Anti-lock Braking System (ABS)
with Electronic Brake Force Distribution (EBD).

More space for more action

The space inside the Ford Endeavour contrasts the harsh terrain on the outside.
With innovative stowage spaces, all-new plush interiors and instrument panel,
your ride

Advertising and Promotions Strategy

Sunil Sheity, the Strong man of Indian Cinema has been chosen as the brand ambassador
of Ford Endeavour.

Advertisement over the years

• Launched THINKxBIG CAMPAIGN in 2007

OLD CHINESE PROPAGANDA: THE GREAT WALL IS SO BIG THAT YOU CAN
SEE IT FROM OUTER SPACE.

NEW PROPAGANDA: IT’S POSSIBLE TO SPOT THE REALLY BIG

FORD ENDEAVOUR FROM OUTER SPACE. THINK X BIG.

• Stare Worthy Style

This to promote as a Endeavour as a automobile with Larger Than Life Presence.

Start driving to get noticed.

The new Campaign in 2009 utilizes newspapers and general interest, lifestyle,
travel and auto magazines. Ford does not intend to do a television commercial in
the near future to promote Endeavour.
Selling is synchronous to what they are
marketing and trying to achieve

Mahindra Scorpio:

• The strategy delivered

Scorpio advertising has a very high recall for the Mahindra brand as well as for the
product. Apart from this, advertising has continued to position Scorpio as a
powerful vehicle with a sporty look, solidly built with good cargo capacity amongst
the premium car consumers and sports utility vehicle consumers.

Overall response to the Scorpio has been stupendous. The product was well
received across the country and got rave reviews across media. More importantly
the product and the strategy delivered in terms of the various objectives set before
launch.

• Impact on Mahindra Image:

Mahindra enjoyed stronger recall as a manufacturer of personal vehicles and

stronger customer perceptions on the following attributes -

*Technologically advanced

*Suitable for city driving

*Great to drive

*Makes VFM vehicles

*Proud to own

*Makes good quality vehicles

 • Scorpio Brand Recall

In the SUV/MUV segment, Scorpio has the largest Brand Recall and has emerged
as a strong brand in the C & sub-C car segment. Scorpio advertising had been able
to create a good impression on appearance and styling of the vehicle.

• Scorpio buyer profile

Scorpio has managed to pull out customers from the C segment of vehicles
continuously for past 7 years. The product, communication and the retail
experience of the Scorpio passed the stringent test of luxury car buyers and the
buyer profile was exactly as per the target profile. The strategy delivered with more
and more small and midsize car buyers choosing the Scorpio over the others.

Tata Safari
 When it was launched in 1997, the Safari was meant to tap a market of city-users
who would use it for long-distance or weekend drives outside the city. Significantly,
the Safari was the first SUV in the Indian market.

Over 1998-99, Tata Engineering had the first-mover advantage it enjoyed. The
brand’s communication strategy was on the lines of communication followed by
SUVs worldwide.

Soon, however, the novelty wore off, and Safari sales started falling. According to
market watchers, the main reason the Safari didn’t quite succeed was that though it
was called an SUV, it was nothing more than a multi utility vehicle (MUV). For
instance, it had a mildly-tuned 2000 cc (cubic capacity) engine and a four-wheel
drive. Popular SUVs like have 4-wheel drive as standard fitment and almost twice
as powerful engines.

In July 2002, the company launched an upgraded Safari with new interiors, twin
air-conditioners, new switchgears and improvised suspension. What proved to be a
stumbling block was the launch of the Scorpio. M&M positioned it as a MUV, with
an imagery that clashed with passenger cars. “Cars will soon suffer from low self-
esteem,” shouted the billboards. In 2005 Tata Safari was upgraded with a larger
engine of 3.0L to take care of the not powerful Engine problem.

In December 2007 it was launched with a Modern 2.2 L DICOR VTT engine with
modern equipment and Safety features. This also coincided with new Campaign of
“Reclaim your Life”. The sales have increased considerably with the launch of new
Tata Safari. When Safari was launched it used to sell around 4000 vehicles in a
year, later it fell to 300 vehicles in a year and now it sells around 20,000 Vehicles
in a year with a new Product and new Marketing Strategy.

It has been able to position itself a True Indian Sports Utility Vehicle popular
among the youth and has been able to emotionally bond with the spirit of
adventure to reclaim the life.

Ford Endeavor
Ford Endeavour has seen a 25 per cent increase year-on-year basis on overall sales
figures for the month of August 2009.

Ford India's popular true blue SUV, the Endeavour maintained its undisputed
leadership in the Luxury SUV Range.

Endeavour continues to generate consumer interest and is an attractive

combination of style, power and performance. The Endeavour continued to be the
preferred choice for the Indian customer despite a slow down witnessed in the SUV
segment.