scorpio - First year of launch Scorpio to capture 22 per...

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First year of launch Scorpio to capture 22 per cent of the premium hard top market in F03 (9 months) * Sell 12000 Scorpios in F03 (9 months) *Mahindra unaided brand recall score to increase by 22 pts (defined in terms of Brand Track study scores) * Scorpio brand recall score to achieve 50 points (in W4) Within three years of launch * Scorpio to capture 45 per cent of the premium hard top market * Scorpio to sell 24,000 units in F04 * Mahindra to emerge as a true urban player Market Context The soft tops sales, which were Mahindra’s strength, were stagnating. Hard top vehicles like Sumo and Qualis were garnering market share. The urban market was showing more potential for vehicle sales and UVs were gaining higher acceptability in urban cities. The competition was getting tougher with international UVs entering the market. And also operating in the urban market meant competing with cars. The market was moving from traditional multi utility, non-luxurious vehicles to luxurious vehicles. M&M had launched Bolero in 2000 to cater to this newly emerging segment. However, to add to the category’s woes, it declined at the rate of 3.1 percent in year 2001 over year 2000. UVs as a percentage of the overall passenger car market was just 16 per cent in 2001. This simply meant that for attaining the volumes, Scorpio needed to look beyond UVs in terms of competitive framework to decide on a marketing strategy. Competitive Context The conventional UV market was too small in size. The UV market in urban markets was even smaller a percentage. The trend was that the UVs operating in the urban market were eating into the car share, primarily the cars which operated in the same price bracket. Qualis was taking market away from midsize cars. With these facts in place the whole of automobile market was studied in details. In the arena of cars, A-segment cars, which have been the leaders in terms of volumes and grew at the rate of 55.2 percent in the year 1999, were having a reduced growth rate of 34.2 percent in the year 2001. It was found that the fastest growing segment (growing at the rate of 42.9 per cent) in year 2001 was semi luxurious cars or B segment cars. And the luxurious car segment i.e. C segment cars were also growing at a healthy rate of 14.2 percent in that year. However, super premium cars termed as segment D and E cars, were not growing at such healthy rates and did not offer volume in terms of number of cars sold. It was imperative for Scorpio to look beyond UVs. Apart from appealing to a typically UV buyer, it was also necessary to appeal to a wider target audience - prospective car buyers belonging to 5 lakh and 5 lakh+ segment. The midsize car market (C class) which was in the Rs. Five to Seven lakh price bracket had grown in F’00 at 36 per cent and in F’01 at 22 per cent, and small luxury car segment (B class) which was up to Five lakh segment was also showing a healthy growth.
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