About Mahindra & Mahindra
Mahindra & Mahindra Limited is an Indian Multinational Automobile Manufacturing corporation, having headquarters in Mumbai, Maharashtra, India. Mahindra produces a wide range of vehicles including MUVs, LCVs, and three wheeler. It manufactures over 20 models of cars. It is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors across the world. Few years back they have also entered into new industry of two wheeler, electric cars, and micro drip irrigation.
It was ranked as the 10th most trusted brand in India in 2014 (Source – The Brand Trust Report) and 21st in the list of top companies of India in 2011 (Fortune India 500).Its major competitors in the Indian market are Tata Motors,Maruti Suzuki, Toyota, Hyundai, Mercedes Benz and others.
On 15th January 2016, Mahindra & Mahindra officially launched new mini compact SUV “KUV 100” in Indian market. Bookings for the same had already started in December 2015. KUV stands for Kool Utility Vehicle for Kool and Young Generation.
Mahindra & Mahindra’s Business Objective
Mahindra & Mahindra objective was to enter the new segment of compact cars/ mini SUV, where they were not present- i.e. to secure the unchartered territory between hatchback and SUV.
Since 2002, after the launch of Scorpio they had been known as makers of rugged utility vehicles. But after the launch of KUV100, they have entered new segment of passenger vehicle market.
They have competition in price range with compact cars and super compact sedans such as the Swift, Grand i10, Swift Dzire and the Amaze. Hatchbacks account for more than 50 per cent of sales, sedans 30 per cent and SUVs 19 per cent. Most people graduate from hatchbacks and sedans to SUVs. However, this Vehicle lies in a price bracket of 4.5 -6.5 lakhs, which gives the utility vehicle manufacturer a line into the biggest segment in passenger vehicles.
Approach/Strategy Adopted dMahindra & Mahindra
KUV 100 – the young SUV targets younger generation and first time buyers, who comes under 30 years of age group. It comes in seven vibrant colors i.e. fiery orange, flamboyant red, dazzling silver, aquamarine, pearl white, designer grey and midnight black. At Auto expo 2016, it was displayed in all together a bright new color Yellow.
Pravin Shah, president & chief executive, (Automotive) Mahindra & Mahindra, said, “We identified that today’s youth want an SUV that helps them stand out, one that reflects their personality and enhances their lifestyle. I believe the KUV100 will appeal to youth and first-time car buyers with its aggressive styling, trendy interiors, long feature list and attractive price point and emerge as a winner.”
- Mahindra & Mahindra held a pre-launch event on 15 December 2015 where company released images of the car for the first time, prior to its launch. This helped them in getting great feedback and reactions about the car. M&M got 1.5 million views on its microsite, 3, 00,000 views and 50,000 hot inquires in two days.
- The company released a video of the vehicle plying on the road, featuring young, dashing brand ambassador actor Varun Dhawan before the official launch on TV, YouTube and facebook.
This ad featured everything what young generation loves to do, depicting Goa, car detailing and wonderful song by Lucky Ali. Lucky Ali’s famous song “ Tere mere sath jo hota hai” acted like an icing to the cake.
Highlights of the ad – (Get up – Get dressed – Get the dog – Get the SUV –Get the Gang – Get Out – Get lost – Get Lucky – Get Dirty – Get Shower – Get the life – Get it now.)
There were more than 19 lakh views of this advertisement on youtube alone.
- Mahindra & Mahindra also targeted various e-commerce platforms to sell their new launch and has already started taking bookings on Flipkart, car and bike portals and its own e-retail platform M2ALL.
(Anil Goteti, Vice President (Business), Flipkart in a statement said, “Online today is a must-have strategy for all players to respond to the growing demand of their customers spread across different cities and towns. For the first time in the automobile category, this exclusive tie-up will allow Mahindra access Flipkart’s extensive reach and network to connect with their customers and provide them the ease to book the Mahindra KUV100 online.”)
- Dubmash & Win KUV100 Contest – Mahindra & Mahindra announced dubmash contest on 23rd December before the launch of car. In this contest participants had to make dubmash video, based on his/ her experience on first time seeing KUV 100 and upload the same on Mahindra & Mahindra Ltd. till 14th The prize for same was Mahindra KUV100, Mahindra Adventure Expedition in 2016 for a couple, Mahindra Gusto and 100 other merchandises.
There were more than 7 lakh views of Dubmash videos. This contest was different. For this participants had to be creative. It brought out their innovation and creativity which means high level of engagement of customers.
- Mahindra & Mahindra is also looking for exports of KUV100 from April 2016 to Nepal, Bangladesh, Sri Lanka and South Africa.
- Mahindra & Mahindra launched its first petrol-engine model (mFalcon)– KUV100, strategically at the correct time. Exactly a month after the Delhi government imposed a temporary ban on the registration and sale of cars and SUVs with diesel engine above 2,000cc. This ban could have severely affected Mahindra & Mahindra which, till now, had an only diesel-engined product portfolio. So, this can be seen as the company’s first move in its petrol strategy.
- Financial Schemes for the students are also worked on.
Results of KUV 100
- On 28 January 2016, waiting period for KUV100 increased from two weeks to six eight weeks in some cities, depending on the variants. For White and Silver coloured variants, waiting period is as high as eight weeks.
- Because of the overwhelming response, management has decided to upscale their production by more than 50%. So, in coming months they have planned to increase their manufacturing from 9000 to 12000 units per month.
- Mahindra & Mahindra has already started receiving almost 450 -500 orders per day. (As on 4th Feb 2016)
- Since launch, Mahindra & Mahindra has received 1, 10,000 inquires for KUV100.
Mahindra & Mahindra being a home grown renowned manufacturer has actually given a good shot in the mini SUVs category. They had touched the pulse of young generation and new buyers, giving them the chance to buy mini SUV in budgeted price. By organising various contests, Mahindra & Mahindra was successful in engaging the targeted young generation.
- Mahindra & Mahindra got to know the reviews and feedback of their targeted customer base prior launching the car.
- Advertisement had a great content along with great song, featuring actor to lure young generation.
- Looking at the digital market penetration, Mahindra & Mahindra has broadened its horizons by tying with ecommerce platform making the sales easier for online customers.
- Dubmash content was a perfect strategy of connecting brand which involved lot of fun as well as engagement on the same time.
In my opinion, it is always the best marketing tactic to comprise the current trend as the medium to promote your brand. It is definitely bound to receive high engagement rate. Hence dependence on single strategy for successful marketing and branding is not recommended
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