Final Fom - Copy

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FUNDAMENTALS OF

MANAGEMENTPROJE

CT

Presented By:

ShiviKundra50158

Shreya Banerjee 50160

SumitPratapSingh 50176

VayamSood50187

BBS 1E

ACKNOWLEDGEMENT


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We thankMrs.PoonamVerma, Principal,

ShaheedSukhdev College of Business Studies, who

has given us an opportunity to undertake this work as a

part of our curriculum.

Our sincere thanks to Mr.Ameet Sao, our subject

teacher, for his valuable guidance and continuous

encouragement throughout this project.

We would also like to thank our LibrarianMrs.Vimlesh Sharma, for guiding us towards the right

sources of information.

Lastly we would like to thank our parents and friends

for their constant support throughout the project.

AUTOMOTIVE

SECTOR OF


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MAHINDRA

AND

MAHINDRA

OBJECTIVEyTo find out the present status of the

automotive sector of Mahindra and

Mahindra.

yTo study the Product Line Mix ofMahindra and Mahindra, focusing

on the Four Wheelers.


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yTo conduct an Environment

Scanning and Market Research.

yTo enhance our analytical skills inthe field of practicalapplication of

Marketing.

CONTENT1] History

2] Automotive sectorA)Introduction of four wheelers segmentB)Introduction of two wheelers segment

C)Various four & two wheelers models in indianmarket

3] Acquisitions , mergers & relation in

with rest of the market.A)Mahindra& Mahindra and Renault together formingMahindra Renault (merger)

B)Mahindra& Mahindra buys into Reva motorsC)MahindraReva


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D)Mahindra& Mahindra Renault relationship]E)Changes in price of products and policies helps

dominating market

F)Innovative ideas leading in production of betterlymodified and advanced products of already existingproduct

4] Organisation structure

5] OrganisationA)Product familyB)list of four and two wheeler models

C)Marketing mixD)Core business activities ofMahindra & Mahindra

6] Infrastructure

7] Physical Evidence

8] Corporate social responsibility (CSR)

9] Corporate relationship management

(CRM)

10] Competitors in the market

11] ProcessA)Distribution channels

12] Evolution , growth and expansion

13] Market researchA)The various environments study and

their importance

14] Marketing mix


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15] Fi i l statement in form of

balance sheetA)Vari trat i tial t adopt to cope up wit

sti & cutt roat competition

16] Anal sis

17] Concl sion

E LUT OF T E MAHINDRA

AND MAHINDRAFew groups can identi as closel wit India's destiny and industrial progressas t e Mahindra Group.

The birth ofMahindra & Mahindra began when K.C. Mahindra visited theUnited States of America as Chairman ofthe India Supply Mission. He met

Barney Roos, inventor ofthe rugged 'general purpose vehicle' or Jeep and had aflash ofinspiration: wouldn't a vehicle that had proved its invincibility on the

battlefields of World War II be ideal for India's rugged terrain and its kutcharural roads? Swift action followed thought. The Mahindra brothersjoined handswith a distinguished gentleman called Ghulam Mohammad. And, on 2nd,

October 19 5, Mahindra & Mohammad was set up as a franchise forassemblingjeeps from Willys, USA. Two years later, India became anindependent nation and Mahindra & Mohammad changedits name to

Mahindra & Mahindra.

Since then, Mahindra & Mahindra has grown steadily in size and stature andevolved into a Group that occupies a premier position in almost all key sectorsofthe Indian economy.


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The Flagshi Sector

Following a structural reorganization ofthe Mahindra Group, si StrategicBusiness Units were created, namely: Automoti e, Farm E ui ment,

Infrastructure, Trade & Financial Services, Information Technology and

Systech.

The Automotive Sector has emerged as one ofthe leading arms oftheMahindra Group. Itis in the business of manufacturing and marketing utilityvehicles and light commercial vehicles, including three wheelers.

Being a marketleaderin utility vehicles in India since inception, Mahindracurrently accounts forabout half of India's market for utility vehicles.Overthe years, the Group has developed a large product portfolio catering to adiverse customer base spanning rural and semi-urban customers, defence

requirements and luxurious urban utility vehicles.In 2002, itlaunched the indigenously engineered world class Sports UtilityVehicle Scorpio, which bridges the gap between style and adventure, luxury

and ruggedness, and performance and economy.

Scorpio (declared to be the Car ofthe Year' by CNBC Autocar, BBC Wheelsand Business Standard Motoring) is the Automotive Sector's currentflagshipvehicle. Mahindra has many more products that have made it popularwith individuals and institutions in India and the world.

AUTOMOTIVE SECTORThe Mahindra Groups Automotive Sectoris inthe business of manufacturing and marketingutility vehicles and light commercial vehicles,including three-wheelers.The AutomotiveSector has emerged as one ofthe leading armsofthe Mahindra Group. Itis in the business ofmanufacturing and marketing utility vehicles

and light commercial vehicles, including threewheelers

Although created in 1994 following an organizational restructuring, theAutomotive Sector can trace its antecedents backto 1954. The iconic Jeepthatled American G.I.s to victory in World War II is the very samevehicle that drove the Mahindra Group to success in


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the Automotive SectorThe Automotive Sector has emerged as one of theleading arms of the Mahindra Group. It is in the business of manufacturingand marketing utility vehicles and light commercial vehicles, includingthree wheelers.

Over the years, the Group has developed a largeproduct portfolio catering to a diverse customerbase spanning rural and semi urban customers,defence requirements and luxurious urban utilityvehicles. In 2002, it launched the indigenouslyengineered world class sports utility vehicleScorpio.

The Group exports its products to several countries in Europe, Africa,

South America, South Asia and the Middle East.

The Automotive Sector continues to be a leader in the utility vehiclesegment with a diverse portfolio that includes mass transport as well as newgeneration vehicles like Scorpio, Bolero and the recently launched Xylo.

Mahindra & Mahindras foray into the three wheeler segment with Alphaand Champion has also made it a leader in its category.

Mahindra Renault (MRPL) announced the launch of Logan, Indias firstwide body car, sporting a host of class defying features at an aggressiveprice. The Logan redefines its segment in terms of spaciousness as well asperformance, technology with the latest generation dci common rail engine.It has been designed for the Indian market incorporating a contemporarystyling and design.

Mahindra Navistar Automotives Ltd. (MNAL), a joint venture betweenMahindra & Mahindra Limited and International Truck and Engine

Corporation, will manufacture trucks and buses for India and export

markets. It will also provide component to International Truck and EngineCorporation sourcing and engineering services.

MahindraNavistar (MNEPL) a second joint venture agreement withMahindra & Mahindra, Ltd. focuses on producing diesel engines forMedium and heavy Commercial vehicles in India.MNEPLs advanceddiesel engines will power the full line of trucks and buses produced by


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MNAL.

PRODUCTLINE MIX

T o wheelersFour wheelers

-Flyte -Xylo

-Rodeo -Scorpio


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-Duro -Logan

-Bolero

-Gio


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PROD CT LINE MIX

FO R WHEELERS

(info)

y SCORPIO

TECHNOLOGY

Collapsible steering column & split intrusion beams

Crash protecting crumple zones and child locks

Fire resistant upholstery

Voice assist system, vehicle security system & remote locking/unlocking

Tubeless tyres


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Poly coated grand deck

STYLE

Bonnet scoop

Air extractor

Two tone interiors

Sporty decal

Full wheel capsCOMFORT

Tiltable steering

Full fabric seats

Individual armrests on 1st row seats

Heating, ventilation & AC with rear vents

ORVM manual remocon& swivel interior lamp

CONVENIENCE

Power steering

Power windows

Spaces for storage on centre bezel, IP & console

Mobile charging facility for the front and middle row seats

Intelligent front wipers Follow me home' lamps

Theatre style interior illumination

Illuminated key ring

Side step

Head lamp levelling switch

Front fog lamps

SEATING

5 Seater

Rational benefits: World class vehicle, good looks, car like comfort, great valueEmotional benefits: Ownership experience of thrill, excitement and power Relationalbenefits: Young modern, premium, city companion / extension of lifestyle.

y XyloThe Mahindra XYLO is perhaps the most complete carwith luxury comforts to enter the Indian market witheverything that todays sedans offer and much more.

It is the first vehicle in the country which has been completely engineered around thecustomer. The XYLO offers an extraordinary level of luxurious comfort at a very cost-effective price for prospective sedan buyers. The famed Mahindra DNA of 'tough & rugged'meets an unprecedented level of sophistication and luxurious comfort in the XYLO. TheXYLO is the Great Indian Traveling Machine and will redefine the future of road travel inIndia.

Technology, style, space, luxury & comfort make the XYLO an apt choice for sedan buyers.


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The XYLO boasts a wide array of unique features:

Flat Bed front seats

Digital Drive Assist System (DDAS)

Foldable flight trays

Surround cool dual ACs

Captain Seats

y Logan

Logan was launched in India in 2007 with the concept to challenge the priceValueequation existing in the midsi e car category. Soon it became one of the mostsuccessful car in the midsi e category and now is synonymous to comfort and

performance. The Logan drives in loads of refinement in comfort, style andtechnology. Built around the Renaults famous Space Optimi ation Design, itredefines space and luxury. With the widest backseat, maximum legroom and 3separate headrests, it makes sure even the third passenger enjoys the drive as much.Logan is one of the safest drives on the road. Its geared to protect you with ahoneycomb dashboard and the front unit thats designed to resist even a head onimpact.

Key Milestone:

Launched the limited edition Logan Edge in Aug08 to offer exclusivity andrefinement to its customers.

Launched the New Collection Logan in Oct08 to enhance the image and appealof the car.

Launched the Logan Edge Connect, an extension of the Logan Edge in Mar09.

Introduced Logan CNG in Delhi.

The new But Why campaign launched in 2008 won the NDTV Car and Bike BestIntegrated Campaign of the Year 2008.

The first export order was shipped to South Africa and Mauritius in 2008.

Inaugurated the first dealership in Nepal in Aug08.

y BOLERO


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gio

TWO WHEELERS

The Mahindra Group's foray into the two wheelersegment began with the acquisition of the business assets

of Kinetic Motor Company Ltd. (KMCL) extendingMahindra's heritage and pedigree into the two wheelerspace. The Two Wheeler Sector ofMahindra designs andmarkets a full range of scooters and motorcycles for theIndianand global markets. Thus, establishing a robust and end to end two wheeler business inevery segment of the industry. The company has a state of the art manufacturingfacility at Pithampur, nearIndore in Madhya Pradesh. The plant, products and processesare ISO 9001 certified from DNV.


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Mahindra & Mahindra's stringent quality standards, which are a part of its consumer

centric approach, will be reflected in all its products. The company uses the design andengineering services of its affiliates including the Italy based Engines Engineering. This

ensures product development work that delivers technologically superior products withlatest styling to its valued costumers. Engines Engineering offers speciali ed services in

the area of motorcycle & scooter design and development. Some of the namesassociated with Engines Engineering include Ferrari, Ducati, Honda, and Yahama. The

motorcycles developed by Engines Engineering have indeed made a mark in the MotoGP Circles.

Mahindra also has a partnership with Taiwan'sSanyangIndustry Company Limited(SYM). A US $ 1 billion automobile giant, SYM is a leading manufacturer of twowheelers, including scooters, motorcycles and ATVs. SYM has a complete, advancedresearch and design facility that develops products from concept upto production. Theassociation with SYM translates into cutting edge technology and best products fromMahindra.

Backed by the Mahindra Groups strong R&Dsupport,Mahindra Two Wheelers plans to market a range ofscooters, value engineered motorcycles and high endmotorcycles for the Indian and global markets. Withinthe overall two wheeler strategy forMahindra TwoWheelers the product profile will range from top endmotorcycles to entry level bikes. The range will alsohave a variety of scooters fulfilling different needs. Inkeeping with this strategy, Mahindra introduced theFlyte as its first two wheeler offering across all marketsin India in April 2009.

yMahindra Rodeo

The perfect choice for the young urban male, the Mahindra Rodeo is a highperformance, feature packed scooter with a distinctly macho demeanour.


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A robust 125 cc engine offers 8.0 bhp of power, making it one of the most powerfulvehicles in its class. Excellent pick up and smooth acceleration ensures agility evenin dense traffic and low maintenance costs.

y

MAHINDRA D ROWith its stylish good looks and powerful 125 cc engine, the Mahindra Duro not onlycaters to the transportation needs of the entire family but is also the best value formoney product in its category as it provides the customer with the highest value per unit

of engine cc.

y Mahindra Flyte

In 2009, Mahindra kick started its two wheeler foray with the introductionof the Flyte as its first product offering across India. With its innovativefeatures backed with power packed performance and contemporary styling,


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Flyte is an ideal product offering forits target audience - the Youth.

DOMESTIC OPERATIONS

The Automotive Sectoris the marketleaderin utility vehicles in India sinceinception and currently accounts for about half of Indias market for utility

vehicles with a product portfolio that ranges from rugged, mass-transport utility

vehicles to personal segment sports utility vehicles like the Scorpio.

Mahindra has recently launched the Xylo, perhaps the most complete car with luxury comfortsto enterthe Indian market with everything thattodays sedans offer and much more.While the world-class Scorpio (declared to be the Car ofthe Year by CNBC Autocar, BBCWheels and Business Standard Motoring) is the Automotive Sectors current flagship, it hasmany more products that have made it popular with individuals and institutions in India and the

world. The Automotive Sector ofthe Mahindra Group is currently presentin the multi-utilityvehicle, light commercial vehicle and three-wheeler segments.Now, with itsjoint ventures, itwill have a presence in the passenger car and the medium and heavy commercial vehiclesegments too.

MERGERS AND AQUISATIONS

Mahindra Acquires Majority Stake InReva Renames It As

Mahindra REVA Electric Vehicle Company


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There has been talks ofMahindra And Mahindraplanning to to acquire the RevaElectric Car Company ofIndia

The planning has been executed and Mahindra has released an official press release about the acquisition of a

majority stake in Reva Electric Car Company India. The new company will now be renamed as Mahindra

RevaElectric Vehicle Company.

The highlights of this deal are :

y Mahindra to have 55.2% equity in REVA Electric Car Company (REVA).y Company to be renamed Mahindra REVA Electric Vehicle Company (Mahindra REVA)y Mahindra REVA to leverage Mahindras vehicle development expertisey Mahindra REVA electric technology to be deployed in Mahindra vehiclesy Dr PawanGoenka elected Chairman of the newly constituted board

MAHINDRA AND MAHINDRA ACQ ISITION OVER

SSYANGYONG [a south korean motor company]

(M&M) is in the last leg to complete its acquisition of South Korean sports utility vehicle (SUV) maker, Ssangyong Moto

. It has roped in South Koreas largest legal firm Bae Kim & Lee to draft the final share purchase agreement to firm up

the deal. The company plans to sign the final agreement by the second week of November.

The acquisition would help M&M launch South Korean companys flagship SUV models Rexton II and Korando C

into the Indian market. M&M spokesperson said: We have a confidentiality clause and cannot comment on these

issues.


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M&M and Ssangyong officials are meeting in Seoul next week to discuss the bid adjustment price based on details

emerging from due-diligence. The final price can vary a bit, said an investment banker close to the negotiation.

Analyst tracking the industry said it is expected to be in the price band of $500-550 million. Top executives from M&M,

including its automotive division head Pawan Goenka, are expected to be present when the final agreement is signed i

Seoul next month.

The faster culmination of the process would give M&M an edge in launching new products in India, currently worlds

second-fastest growing automotive market, Deepesh Rathore, MD at market research firm IHS Automotive said. The

company has developed an all new platform the C200 SUV, which will be the first monocoque chassis produced by the

company. M&M is also in the process of picking internal candidates who will work with the Korean management.

Mahindra and Renault- Joint Venture

The automobile groups Mahindra & Mahindra and Renault have decided to join forces to produce and commercialise

Logan, developed by Renault, in the Indian market in 2007. The two groups concluded a framework agreement for

setting up a joint venture in India with Mahindra retaining a 51 per cent share and Renault 49 per cent. The JV will be

called Mahindra Renault Ltd. The estimated project amount will be 125 million euros.

The project provides for the production of Logan from the first half of 2007 in a world-class Mahindra & Mahindra

facility. The capacity of the factory for Logan will be 50,000 cars per year. The state-of-the-art factory will offer a

stamping shop, a paint shop with a top quality pretreatment and an assembly line specific for Logan. The qualityof

Indian parts manufacturers and the presence of a number of international suppliers in India will allow a rate oflocalisation of 50 per cent from the beginning of the project.

A right hand drive version of Logan will be developed by Renault in partnership with Mahindra to meet the needs of

Indian and other right-hand drive markets. Logan will be marketed under the brand of Mahindra Renault. Mahindra &

Mahindra will use its extensive dealer network to distribute the Logan in India. With a population of more than 1 billion

inhabitants, India has experienced strong economic growth, passing 8% in 2004. The automobile market progressed by

68% between 1998 and 2003, reaching 1,040,000 vehicles in 2004 with a marked preference for small and medium

segment cars (A,B & C).

With this agreement, Mahindra & Mahindra, the fourth largest Indian vehicle maker and a specialist in utility vehicles

(SUV, Pick-up) will extend its range to passenger cars, a particularly lively market segment in India. Market leader in

India for SUVs, with market share of 49% in 2004 in UV segment, it hopes to establish its presence in the car market.

Present in diverse sectors of the Indian economy, (telecommunications, information technology, agricultural material,

financial services), the Mahindra & Mahindra group is strengthening its automobile arm.Announcing the new venture,

Mr. Anand Mahindra, Vice Chairman and Managing Director, Mahindra & Mahindra Ltd, said: "The objective of setting

up the joint venture company is to bring Logan, the popular global car, into India.

For Renault, entering the Indian market, where European manufacturers, except for Fiat and Skoda, have little

presence, constitutes a major step in its international development. Including India, Logan will be produced in six

countries along with the projects already launched or decided: Romania, Russia, Morocco, Colombia and Iran. "I am


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Mahindra & Mahindra Financial Services Ltd.), automotivecomponents, information technology& telecom (Mahindra British Telecom), and infrastructure development (Mahind

GESCO, Mahindra Holidays& Resorts India Ltd.).

Renault is an international automobile group ac"

uiring a global dimension from its alliance with Nissan, the ac"

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of the Romanian carmaker Dacia and theSouth Korean Samsung Motors. Renault pursues a strategy of profitable

growth thanks to a high quality, innovative range ofvehicles and services. For almost 50years, Renault has madesafety

a companyvalue, and today offers thesafest range ofcars with seven "5star" cars tested by Euro-NCAP. Employing

131,000 people around the world, Renault sold 2,490,000vehicles in 2004 and realized a turnover of40.7 billion euros

for a net profit of3.5 billion euros

Mahindra Renault Joint Venture Ends!

Mahindra & Mahindra and Renault on Friday said they have restructured theirjoint venture formaking the sedan Logan in India, following which the Indian firm will buy outits French

partner for an undisclosed sum.

M&M will buy outRenaults 49 per cent stake in Mahindra Renault Pvt Ltd, thus becoming a100 per cent subsidiary, the two companies said in ajoint statement.

Renault will continue to supportM&M and Logan through a licence agreement and supply keycomponents, including engine and transmission, the statement said.

Renault in India, Solo

Renault, keeping to its words has splashed adverts in MajorNewspapers today asking for ealers foritsNewInnings in India as an IndividualCar maker. Renault and Mahindra had decided to end their 3 year old

partnership and amicably decided to go separate ways. Mahindra, surprisingly gotto keep the Logan.

With the Logans So-called failure will, may be, be behind Renault when they set foot with atleast 5 new


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launches in the next 2 years to come by. It sure wont be any short of exciting for any automobile lover lookingat the lineup Renault has worldwide.

The Models we are sure to see before others would be Renault Samsungs Fluence and The RenaultKoleos.

M&M, Renault Back Together! Logan to be a Small car!After months of trouble, French carmaker Renault and homegrown Mahindra & Mahindra (M&M) are all set

to resolve their differences and announce a new restructured plan for their joint venture.The revamp will see thLogan sedan being repositioned as a small car shorter in length,with a compact petrol engine.

The two companies,which had joined hands to sell the no frills Logan, had been at loggerheads after the model

failed to take off and became a lossmaking venture for both.Renault and Mahindra were not impressed by thepoor show of the model Renaults first in India and M&Ms solo in the passenger car segment and appeared to

have engaged in a blame game for the failure. Against the original projection of selling 50,000 unitsannually,the model is selling only 5,000 units per annum.

Now,Logan will continue to be manufactured at M&Ms plant at Nasik and the Indian utility vehicle major willbe retained for selling the car through select outlets of its dealer network.The Logan will now be positioned in line with the small car definition of the Indian government,attracting alower excise duty of 10%,against 22% at present,which in turn will lead to lower price.Forthis,the companieswill reduce its overall length below 4 metres and bring down the petrol engine capacity to under 1200cc,againsthe current si es of 1400cc and 1600cc.The diesel engine car,that is strapped with a 1500cc engine,willcontinue.

This was M&Ms long pending demand as it felt that the car can do much better in India if it is repositioned as small car.Renault,on the other hand,had been reluctant to tweak the Logans specifications in only one market.

Shortened Dacia Logan in Pictures

(PRODUCT LINE MIX FINISH)

Alliances

Now, with its joint ventures, the Automotive Sector will have a

presence in the passenger car and the medium and heavycommercial vehicle segments too.

Mahindra's a JV with French automakers Renault, has seen them launch the spacious sedan, Logan. With iclass defying features at an aggressive price, it has already managed to make its mark in the Indian passenge


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carmarket.

A partnership with International Trucks, will now see Mahindra manufacturing trucks and buses for sale iIndiaandExportmarkets.

TheWayAheadWith continual upgrades, product innovations and fruitful alliances, Mahindra has ensured a regular churn ouof good quality, reliable and value for money products to establish an impressive stable of vehicles

Having aggressively established itself in the domestic utility vehicle market, Mahindra Automotive is all set oa global roadmap to conquer the international arena.

ORGANISATION STR CT RE

Mahindra & Mahindra Limited (M&M) is the flagship company of US $ 2.59 billion MahindraGroup (F04 US$ 1.96 billion, which has a significant presence in key sectors of the Indianeconomy. A consistently high performer, M&M is one of the most respected companies in thecountry.

Set up in 1945 to make general purpose utility vehicles for the Indian market, M&M soonbranched out into manufacturing agricultural tractors and light commercial vehicles (LCVs).The company later expanded its operations from automobiles and tractors to secure asignificant presence in many more important sectors.

M&M has two main operating divisions Automotive Division manufactures utility vehicles,light commercial vehicles and three wheelers. Tractor (Farm Equipment)Division makesagricultural tractors and implements that are used in c onjunction with tractors, and has alsoventured into manufacturing of industrial engines. TractorDivision has won the coveted

Deming Application Pri e 2003, making it the only tractor manufacturing company in theworld to secure this pri e. The Company has recently entered into a JV with Renault of Francefor the manufacture of a mid si ed sedan, the Logan, and with International Truck & EngineCorporation, USA, for manufacture of trucks and buses in India.

Implementation of SAP APO (Advance Planner and

Optimizer) for Automotive SectorImplemented SAP APO at Farm Equipment Sector in F04, and rolled out at Automotive Secto

in F06. SCM processes are streamlined using SAP APO. Forecasting, planning, and decisionsupport has been facilitated through on PPDS (Production Planning Demand Scheduling) &


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The Mahindra Group defines Corporate Social Responsibility as making socially responsibleproducts, engaging in socially responsible employee relations and making a commitment to thecommunity around it. At the Mahindra Group, Corporate Social Responsibility is not just aduty; it's a way of life.

In 2005, the Group celebrated its 60th anniversary by renewing its commitment to CorporateSocial Responsibility. It pledged to dedicate 1% of its profit (after tax), on a continuous basistowards Corporate Social Responsibility. A unique kind of ESOPs Employee Social Optionswas launched to enable Mahindra employees to involve themselves in socially responsibleactivities of their choice. The Group also announced a special gift: to provide free coch learimplants to 60 profoundly hearing impaired, under privileged children.

In addition to giving impetus to the Nanhi Kali project for the girl child and the Mahindra AllIndia Talent Scholarship for the economically disadvantaged, the Mahindra Group is p lanningto set up two Mahindra Pride Schools. These schools will offer a variety of courses, with anemphasis on employability, including training forInformation Technology, Retail, AutomotiveEngineering etc. They will provide new skills and capabilities to the weaker sections of societyparticularly the scheduled castes and scheduled tribe youth. While these projects are alreadyunderway, plans for more social initiatives are on the anvil.

C STOMERRELATIONSHIPMANAGEMENT [CRM]

It is essential forAuto OEMs to keep in close contact with the end consumers, build brandloyalty and provide total customer experience. Implementation of centrally hosted Mahindra

DealerManagement System (DMS) covers Marketing, Pre sales, Sales, Services, Spares,Warranty, Dealer Financials, Analytics, CRM and Business Intelligence. The pilot involving50+ dealer locations initiated last year is in the final phase of implementation, to be followed byroll out across Mahindra Dealer Community. Appropriate infrastructure includin g dealerconnectivity is being established.

Implementation of SAP DMS CRM has provided an additional opportunity to ensure processstandardi ation and compliance across all dealers ofM&M. Enhanced the ability to integrate achange more easily across the entire dealer chain. Facilitated better customer informationmanagement, end customer database, along with seamless integration with back end SAPsystems.

DEALING WITH THE COMPETITION

PROCESS

The various processes involved in getting available the product from the manufacturer to the end consumer are


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to be efficiently performed by the company. The processes start when the customer is contacted by the Sales

Personnel of the Dealership or the customer contacts the Dealership if he is interested to buy a Corolla. The

data regarding the various customers can be had from various sources of data available through different

agencies which speciali e in providing data. After the call is made, an appointment is fixed. The Sales

Executive prepares for the meet. He collects all the possible information which would be needed for the

meeting i.e. data about thecustomer, details about the car, maximum permissible discount structure, finance

options, delivery terms, free accessories which will be provided to the customer.

The sales personnel will find out that what is the present vehicle used by the customer, his present buying

power, satisfaction level, seriousness in buying etc. Along with that he will also find out his exact needs,

desired level of satisfaction, lifestyle patterns etc. Sales personnel also ask certain questions through which he

comes to know about the various factors he wants to know. He asks both open as well as closed ended

questions. With the help of these questions, he can come to know the various reasons due to which he is buying

that car. These can be Performance, Safety, Comfort, Driving Pleasure, Appearance etc.

These processes either lead to completion of sales call or sometimes unfortunatelyleads to unsuccessful sales call which could not be competed.

MARKET RESEARCH

Market research often refers to either primary or secondary research. Secondary research involves a company

using information compiled from various sources, which is about a new or existing product.. Primary marketresearch involves qualitative research (such as focus groups or one on one interviews) and quantitative researc

(such as surveys) as well as field tests or observations conducted for or tailored specifically to that product.Primary research, which is also called field research or original research, is useful for finding new informationand getting customers' views on products.

Having defined the competitive framework, the next task undertaken was that ofanaly ing the consumer. Consumer segments of B and C category car buyers wereanaly ed in terms of their expectations from a car, their perceptions about cars andtheir relationship. Proprietary techniques of research, of the advertising agencyInterface Communications, like Mind & Mood, ICON and VIP were used to

understand this consumer. The findings were:* Si e matters big si e stands for status* Consumers seek latest technology* Imagery but at affordable prices* The sheer thrill and passion of driving an SUV* Power of the vehicle makes a statement* But along with the others, luxury was a very important parameter* International vehicles define imagery

SUVs like Pajero, Land Cruiser and Prado are seen as urban vehicles for the rich and


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famous consumers aspire to own these vehicles as the imagery of these vehicles hasbecome very desirable.

Consumers want to consume premium imagery at prices affordable to them

The Marketing EnvironmentMarketing environment consists of the actors and forces outside marketing that affect marketing managementability to build and maintain successful relationships with target customers. The marketing environment offers

both opportunities and threats. The environment continues to change rapidly. The marketing environment ismade up ofMicro environment and Macro environment.

The Micro environment consists of the actors close to the company that affect its ability to serve its customers.These actors are: the company, suppliers, marketing intermediaries, customer markets, competitors and publics

The Macro environment consists of the larger societal forces that affect the microenvironment. These forcesare: demographic, economic, natural, technological, political and cultural forces.

GM STUXX

THE DEMOGRAPHIC ENVIRONMENT

The demographic position will be on the United States. Since, the target market is for the middle class; it will

provide a boost for the 32% of the total population. This product will produce a superior value to customers

who always value the brand. Also, it will keep the popularity of the product at their trend. In this case, more an

more customers will be able to keep this product if it satisfies their condition. Additionally, the middle class

group will be loyal to this product brand and as generation goes by; this product will be there forever. On the

other hand, this product is also designed for students, and working class people. This is due to the fancy and

environmental design

Students will be so grateful to have fancy car while the working class group will tend

to afford such an affordable environmental car design.

ENVIRONMENT SCANNING

THE NAT RAL ENVIRONMENT

This product is basically designed to reduce the carbon emission from fuels and help to preserve our


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environment. It is very important to design such car to help decrease the rate of carbon dioxide from the air and

provide a better condition to tackle global warming. This car will provide a boost to the natural environment

because it is safer and has an image to be friendlier to the environment itself. In this case, more and more

people will tend to buy such car to protect the environment by reducing the carbon emission to the air.

THE ECONOMICAL ENVIRONMENT

The world is facing a shortage of fuel and it has become an economical crisis to everycountry. This is evidence

as the price of fuel is increasing and the probability of the price of a barrel to increase at any day is very high.

Therefore, this product will help customers to save money because it consumes less fuel. The fuel consumption

is one of the best criteria based on this product. On the other hand, customers will be able to satisfy with this

kind of product because it is not too expensive and everybody has the privilege to afford one. This product will

satisfy the superior value of all different customers since it has a very good design to solve to fuel shortage, les

expensive, and can be affordable to anyone.

THE TECHNOLOGICAL ENVIRONMENT

The fastest growing of information technology helps this product to be at its best. Its design is basically

provided with the help of information technology. Looking at its design, this product benefits a lot from thetechnological sectors. This proves that thisproduct is favourable to the environment. Also, this product can be

modified or even upgraded to the standard where it will be suitable at any environmental condition. The

Information technology is very effective in letting this product to be very efficient. In this case, it helps

customers to satisfy this kind of product in this technological environment.

THE SOCIAL AND C LT RAL ENVIRONMENT

It is believed that protecting the environment is a great concern. Therefore, this product is purposely designed

to be environmentally friendly. As a result, most people in the United States and elsewhere are willing to offer

such kind of product to save the environment. If more and more people are keen to buy such kind of product

then the environment would be safe at any cost. Consequently, people will be more supportive to save what is

best for the communities and the environment.


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AUTOMOTIVE

MARKETING MIX

AMarketing mix is the division of groups to make a particular product by pricing, product,branding, place, an

quality. Although some Day1 marketers have added other P's, such as personnel, packaging and physic

evidence, the fundamentals of marketing typically identifies the four P's of the marketing mix as referring to:

"Marketing Mix" is set of correlated tools that work together to achieve company'sobjectives, they are: product, price, promotion, place.The set of controllable tactical marketing tools, product, price,place and promotionthat the firm blends to produce the response it wants in the target market:

Product A tangible object or an intangible service that is mass produced ormanufactured on a large scawith a specific volume of units. Intangible products are often service based like the tourism industry & the hoteindustry. Typical examples of a mass produced tangible object are the motor car and the disposable ra or.

less obvious but ubiquitous mass produced service is a computer operating system.

Price The price is the amount a customer pays for the product. It isdetermined by a number of factors including market share, competition, material costs, product identity and the

customer's perceived value of the product. The business may increase or decrease the price of product if other

stores have the same product.

Place Place represents the location where a product can be purchased. It is often referred to as thedistribution channel. It can include any physical store as well as virtual stores on the Internet.

Promotion Promotion represents all of the communications that a marketermay use in themarketplace. Promotion has four distinct elements advertising, public relations, word of mouth and point ofsale. A certain amount of crossover occurs when promotion uses the four principal elements together, which iscommon in film promotion. Advertising covers any communication that is paid for, from television and cinemcommercials, radio and Internet adverts through print media and billboards. One of the most notable means of

promotion today is the Promotional Product, as in useful items distributed to targeted audiences with noobligation attached. This category has grown each year for the past decade while most other forms havesuffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver.Public relations are where the communication is not directly paid for and includes press releases, sponsorshipdeals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal

communication about the product by ordinary individuals, satisfied customers or people specifically engaged t

create word of mouth momentum.


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(Make growth chart out of this)

BALANCE SHEET(Rscrore)

Balanc# $ % # # &

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

S'

urc( ) '

f fund)

Owner's fund

Equity share capital 282.95 272.62 239.07 238.03 233.40

Share application money 8.01 - - - -

Preference share capital - - - - -

Reserves & surplus 7,527.60 4,959.264,098.533,302.01 2,662.14


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Loan fund0

Secured loans 602.45 981.00 617.26 106.65 216.68

Unsecured loans 2,277.70 3,071.761,969.801,529.35 666.71

Total 10,698.719,284.646,924.665,176.05 3,778.92

Uses offunds

Fixed assets

Gross block 4,866.18 4,653.663,552.643,180.57 2,859.25

Less : revaluation reserve 11.67 12.09 12.47 12.86 13.33

Less : accumulated depreciation 2,537.77 2,326.291,841.681,639.12 1,510.27

Net block 2,316.74 2,315.281,698.491,528.59 1,335.65

Capital work-in-progress 1,374.31 886.96 649.94 329.72 205.46

Investments 6,398.02 5,786.414,215.062,237.46 1,669.09

Netcurrent assets

Current assets, loans & advances 6,224.56 5,081.203,816.413,916.94 2,805.04

Less : current liabilities & provisions 5,619.04 4,797.763,468.772,854.20 2,254.37

Total net current assets 605.52 283.44 347.64 1,062.74 550.66

Miscellaneous expenses not written 4.12 12.55 13.53 17.55 18.05

Total 10,698.719,284.646,924.665,176.05 3,778.92

Notes:

Book value of unquoted investments 4,806.15 4,305.501,429.161,515.23 1,419.01

Market value of quoted investments 12,216.753,218.817,669.9010,285.252,030.85

Contingent liabilities 2,020.79 1,220.39985.35 1,008.27 946.36

Number of equity sharesoutstanding (Lacs)5659.08 2726.16 2390.73 2380.33 2334.00


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GRAPH INDICATING GROWTH

STRATEGIES

GENERAL ATTACK STRATEGY

FRONTAL ATTACK: the attacker matches its opponents product, advertising, price

andistribution

Pricing Strategy: to be a premium brand yet having universal appeal.Scorpio was tocompete with the midsize cars like Hyundai Accent, Ford Ikon, OpelCorsa, Maruti SuzukiEsteem on the one side and UVs like Toyota Quails, Tata Safari and the Tata Sumo on theother. Scorpio adopted the penetrative pricing strategy positioned in the psychological price

barrier ofRs. 5 - Lakhs.

Media Strategy* ramatic and high impactlaunch

* High visibility

* Push brand image even by the media vehicleBuilding impactthrough multiple-media

* PR, Mass Media, irectMarketing, Events


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Suggestions1] They need to expand their bussiness activities and globalize themselves , preferably in in joint venture

2] In india change their image of making rugged vehicles to more sophesticated and be in direct

competition with the likes of suzuki, honda , toyota.

3] Open more showrooms espacially in city and expand customer database.

4] Bringout new models and in accordance to the new technologyand b e competitive with bringing.

5] Doing well with its expansion process , need to continue and open more showrooms .

6] Get back into a venture with renault as it is a global brand and can provide the gateway mahindra

needs.


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7] Get modely in all price ranges .

8] Basic profitability of the work is good expansion is the word of the hour.

TWO WHEELERS1] Promote , advertise their models very strongly to give them a jump start in an already very

competitive market.

2] Provide more equipment at lower price in order to compete with the likes of hero honda and bajaj.

3] The flagship model rodeo should be made as a global product as it has the ingredients to take on the

best of the street bikes in the world.

4] Open new two wheelers showrooms having more customer involvements .

5] This should be done thinking of it as along time investment as the benefits will be drawn after few

years which will be taken for the brand to get established.

FO R WHEELERS

1] The models need to be updated and the latest state of the art technology should be brought in.

2] The rugged M Vs should be seperated from the main line of new sophesticated machines.

3] Pricing models in hotchbach and expensivesector category.

4]Get technological advantage by setting into a deal with renault as engine supplier.

LOGAN

1] Cut costs to be the best value for money caste.

2] The car lacks finesse and looks which needs to be taken care of.

3] Give it a new start with proper advertising and compaigning of the product.

4] Provide attractive offers to customers like free services and insurance.

SCORPIO

1] The flagship model needs a devloped more upgaded look.

2] The tagline suits the overall image of the car.

3] This model has been handled well and needs to continuously be done so.


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BOLERO

1] Change the image of it being a rugged , village and town peoples carrier.

2] The car as a whole needs a facelift.

3] More new advanced featursare required.

4] The price can be raised by providers all the above mentioned features as it will be better value for

money than Tavera and Sumo.

XYLO

1] Cannot compete with Innova due to lack of refinement and technology.

2] Needs a more macho look.

3] SP space comfort which should be maintained.

4] The chart can be raised to get into direct competition with innova but better drive.

CONCL SION1] The Automotive Sector has emerged as one of the leading arms of the Mahindra Group asthe flagship sector .

2] Over the years, the Group has developed a large product portfolio catering to a diverse

customer base spanning rural and semi urban customers, defence requirements and luxurious


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urban utility vehicles .

3] Foray into the three wheeler segment with Alpha and Champion has

also made it a leader in its category.

4] Exporting products to several countries in Europe, Africa, South America, South Asia and

the Middle East leading globally powerful bonds.

5] Generation of for wheelers vehicles like Scorpio, Bolero and the recently launched Xylo are main models

of the company while the world class Scorpio (declared to be the Car of the Year by CNBC Autocar,

BBC Wheels and Business Standard Motoring ) is the Automotive Sectors current flagship.

6]Mahindra's heritage and pedigree extended with the acquisition of the business assets of Kinetic Motor

Company Ltd. (KMCL) into the two wheeler space.

7] Product development work is ensured with latest styling to its valued costumers as names associated with

Engines Engineering include Ferrari, Ducati, Honda, and Yahama and engines engineering offers speciali ed

services in the area of motorcycle & scooter design and development.

8] Mahindra Rodeo is the flagship model in two wheeler sector giving stiff competition to its competitorss

models in the market while other models Duro and Flyte also there satisfying customers completely.

9] Mahindra and Mahindra performing well in automotive sector also shown keen interest while overtaking

some major companies over the world , thus also helping in expansion of business and increase in varied

number of assets.

10] Aquisitions over Reva motors and Ssyangyong motor company resulted in making more powerfulcompany globally. The acquisition would help M&M launch South Korean companys flagship SUV models Rexton I

and Korando C into the Indian market.

11] Mahindra Renault joint venture made Mahindra & Mahindra, the fourth largest Indian vehicle maker and a

specialist in utility vehicles (SUV, Pick-up).

12] The customer research conducted in India on Logan has indicated an excellent response. The market is excited

about the worlds best value C-segment car being launched in India".

13] Internationally Mahindra and Mahindra is trying to enter in various productions maximising customer

satisfaction needs proved by a partnership formed with International Trucks.This will now manufacture trucks

and buses for sale in India and Expor tmarkets. Mahindra Navistar (MNEPL) another joint venture agreement

with Mahindra & Mahindra, Ltd. focuses on producing diesel engines forMedium and heavy Commercial

vehicles in India.

14] With continual upgrades, product innovations and fruitful alliances, Mahindra has ensured a regular churnout of good quality, reliable and value for money products to establish an impressive stable of vehicles.

Having aggressively established itself in the domestic utility vehicle market,Mahindra Automotive is all set on


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a global roadmap to conquer the international arena.

15] 1% of its profit (after tax) dedicated, on a continuous basis towards Corporate Social Responsibility ,ESOPs Employee Social Options was launched to enable Mahindra employees to involve themselves insocially responsible activities of their choice , to provide free cochlear implants to 60 profoundly hearingimpaired, under privileged children , etc. like social work being practiced regularly by the firm indicates its fin

Corporate Social Responsilbilities. Also this helps in forming a good characteristics image on the peoplesmind.

16] Facilitated better customer information management, end customer database, along with seamlessintegration with back end SAP systems and many other as well forms a very well Customer RelationshipManagementofM&M company.

17] Keen Market Research covering market environment as well as demographic environment helpsMahindra and Mahindra to understand the nerves of market. This all help in targeting different age group

people needs as well as over the other firms strategies help in better conduction of sales.

18]Mahindra and Mahindra very attentively does Environment Scanning while keeping in mind regardingvarious enviroments like natural , economical , technological , social and cultural .

19] Company's objectives are achieved by perfectly made "Marketing Mix" with a set of correlated toolproduct, price, promotion, place.

20]Mahindra and Mahindra has consistently performing very well can be proved by its increasing revenue ovthe subsequently last few years.

21] Firms strategies like pricing strategy , media strategy , frontal attack has always been preparing it overcome and forcast different future uncertainties.

22] All this tells that a consistently high performer, M&M is one of the most respected companies in thecountry.


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BIBLIOGRAPHY

\Wikipedia


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Mahindra and mahindra official side

Autodrive maga ine

BBC News site

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