When I saw Thar for the first time on television, my teenage self immediately made a promise to my family that I’d buy it when I make money. Now, however, city traffic has made me reconsider the promise. But still, there was an aspirational quality in the ad film and the product that convinced a teenager to buy it.
As you might already know, That is a product by Mahindra and Mahindra. Founded in 1945, Mahindra and Mahindra started its journey assembling Willy’s Jeeps in India. Today, it’s a global powerhouse with interests spanning from automobiles to IT services, and even aerospace.
From their early days, Mahindra has had to address the unique needs of Indian consumers while also expanding globally. Their strategies have helped them build a brand that resonates with both the urban youth and the rural farmer.
Historical Background
Mahindra and Mahindra’s story is as fascinating as it is inspiring. It all began in 1945 when the company was founded by brothers Jagdish Chandra Mahindra and Kailash Chandra Mahindra, along with Malik Ghulam Muhammad.
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| Source: Mahindra and Mahindra |
Initially named Mahindra & Mohammed, the company was focused on assembling Willy’s Jeeps under license from the US. After the partition of India in 1947, Ghulam Muhammad migrated to Pakistan, and the company was renamed Mahindra & Mahindra.
Mahindra’s journey is marked by several key milestones:
1947: Assembly of Willy’s Jeeps begins, providing a rugged vehicle perfect for the challenging Indian terrains.
1963: Expansion into manufacturing tractors, which solidified their presence in the agricultural sector.
2000: Introduction of the Bolero, which quickly became a favorite in rural and semi-urban areas for its durability and performance.
2002: Launch of the Scorpio, a game-changer that appealed to a broad demographic, from rural farmers to urban professionals.
2010s: Venturing into electric vehicles with the acquisition of Reva, and expanding into the global market with significant footprints in the US, South Africa, and beyond.
But the journey wasn’t smooth sailing.
Mahindra and Mahindra faced numerous challenges in its early days.
The post-independence period was a time of economic turbulence, with limited resources and infrastructure. The automotive market was nascent, and consumer trust in locally assembled vehicles was low.
Here’s how they tackled these challenges:
- Building Trust:
By focusing on quality and reliability, Mahindra ensured that their vehicles could withstand the toughest conditions, which helped in building consumer trust.
- Understanding the Market:
Mahindra keenly understood the needs of the Indian market, particularly in rural areas where durable and easy-to-maintain vehicles were crucial. Their tractors and jeeps became indispensable tools for many.
- Innovation and Diversification:
From early on, Mahindra diversified its product offerings. This not only mitigated risks but also allowed them to tap into multiple market segments, from agriculture to urban mobility.
Through persistence, adaptability, and a deep understanding of their market, Mahindra and Mahindra transformed from a small assembly plant into a diversified global conglomerate.
STP Analysis
Segmentation:
- Demographic Segmentation:
They segment their market based on age, income, occupation, and family size.
For instance, their SUVs appeal to middle-to-upper-class families and professionals, while their tractors target rural farmers.
- Geographic Segmentation:
This is particularly important for Mahindra. They cater to urban, semi-urban, and rural areas, adjusting their product offerings to suit regional needs.
For example, rugged and durable vehicles for rural areas versus more stylish and feature-rich models for urban customers.
- Psychographic Segmentation:
Mahindra considers lifestyle, social class, and personality.
Their electric vehicles target environmentally conscious consumers, while their luxury SUVs appeal to status-driven buyers.
- Behavioral Segmentation:
They also segment based on consumer behavior, such as purchase occasion, user status, and loyalty.
Targeting:
Primary Target Markets:
Rural Farmers: Primary focus due to the large agricultural sector in India.
Urban Middle-Class Families: A growing segment with increasing purchasing power.
Secondary Target Markets:
Eco-conscious Consumers: Especially in urban areas, with a focus on electric vehicles.
Young Professionals: Particularly for their compact SUVs and city cars.
Positioning:
Mahindra’s brand positioning strategy focuses on reliability, innovation, and value for money.
They emphasize durability and performance, especially in challenging conditions. They have also made advancements in electric vehicles and technology.
They focus on aligning technology with consumer requirements for making every journey safe and enjoyable.
Competitor Analysis
In the automotive industry, Mahindra and Mahindra face fierce competition both domestically and internationally. Some of the key competitors include:
In the Indian Market:
- Tata Motors:
Known for its wide range of vehicles from commercial trucks to passenger cars, Tata is a significant competitor.
- Maruti Suzuki:
Dominates the passenger car market with its affordable and fuel-efficient models.
- Hyundai:
Strong presence in the SUV and hatchback segments with innovative designs and features.
- Toyota:
Known for its reliability and strong performance in the SUV and luxury segments.
Globally:
- Ford:
Competes in the SUV and electric vehicle segments.
- Volkswagen:
Known for its premium vehicles and strong global presence.
- John Deere:
A key competitor in the agricultural machinery segment, particularly tractors.
Market Share:
Maruti Suzuki leads the Indian market with around 40% share (as of June 2024), followed by Hyundai and Tata Motors. Mahindra holds a significant share in the SUV and tractor segments.
Global market: Brands like Ford, General Motors, and Volkswagen dominate, with Mahindra making its mark through strategic international ventures and acquisitions.
Product Offerings:
Mahindra and Mahindra: Strong in SUVs (Scorpio, XUV500), tractors, and recently electric vehicles (eVerito, eKUV100).
Tata Motors: Wide range of passenger cars (Nexon, Harrier) and commercial vehicles.
Hyundai: Popular models like Creta, Venue, and a strong presence in electric vehicles with Kona.
Maruti Suzuki: Best-sellers include Swift, Baleno, and Alto, focusing on affordability and fuel efficiency.
Ford and GM: Diverse portfolios with a focus on innovation in electric and autonomous vehicles.
Volkswagen: Premium segment focus with models like Polo, Vento, and Tiguan.
Marketing Strategies:
- Mahindra and Mahindra:
Their campaigns highlight their vehicles’ durability and suitability for Indian terrains. They leverage digital marketing, influencer partnerships, and experiential marketing.
- Tata Motors:
Emphasizes safety, innovation, and sustainability. Campaigns often highlight safety features and eco-friendly technologies.
- Hyundai:
Known for its stylish designs and advanced features. Uses a mix of traditional and digital media, with a strong presence on social media.
- Maruti Suzuki:
Focuses on affordability and fuel efficiency. Utilizes extensive dealer networks and strong after-sales service promotions.
- Ford:
Highlight innovation, performance, and safety. Global campaigns often focus on advanced technologies and eco-friendly initiatives.
- Volkswagen:
Premium positioning with a focus on quality, performance, and technology. Marketing campaigns often feature sleek designs and cutting-edge features.
Mahindra and Mahindra’s Competitive Edge:
- Diverse Portfolio:
Strong presence in multiple segments, including SUVs, tractors, and electric vehicles.
- Brand Loyalty:
High trust and loyalty, especially in rural markets for their tractors and utility vehicles.
- Innovation:
Leading in electric vehicle technology and smart mobility solutions.
To sum up, Mahindra and Mahindra’s ability to innovate and adapt, coupled with their deep understanding of the Indian market, gives them a competitive edge.
Marketing Mix
Product:
Overview of Product Portfolio:
Mahindra and Mahindra boast a diverse product portfolio, encompassing a range of vehicles tailored to various market needs, including SUVs like Scorpio, XUV500, Thar, and Bolero, Tractors like Mahindra Yuvo, Mahindra Jivo, Electric Vehicles like eVerito, eKUV100, Commercial Vehicles like Blazo, Furio, Supro, and Two-Wheelers like Mojo and Gusto.
Key Features and Innovations:
Advanced Technology: Incorporating smart features like the Blue Sense app and Intelli-Hybrid technology in SUVs.
Sustainability: Focus on electric vehicles and hybrid technology, reducing carbon footprint.
User-Centric Design: Emphasis on comfort, safety, and usability, with features like ABS, airbags, and ergonomic seating.
Price:
Mahindra and Mahindra adopt a competitive pricing strategy, balancing affordability with value-added features:
- Penetration Pricing:
Used for entering new segments or markets, as seen with their electric vehicles.
- Competitive Pricing:
Benchmarking against rivals like Tata, Maruti Suzuki, and Hyundai to stay competitive.
- Value-Based Pricing:
Emphasizing the value and reliability of their products, justifying higher prices for premium models.
Competitive Pricing Analysis:
SUV Segment: Positioned slightly below premium brands like Hyundai and Toyota, but above budget brands.
Tractors: Competitive with other major players like John Deere and New Holland.
Electric Vehicles: Priced to attract early adopters while remaining competitive against competition like Tata Nexon EV.
Place:
Mahindra and Mahindra utilize an extensive distribution network to reach diverse customer bases:
- Dealerships:
Wide network of over 300 authorized dealerships across urban, semi-urban, and rural areas.
- Online Platforms:
Expanding digital sales channels for convenience and broader reach.
- Showrooms:
Premium showrooms in metropolitan areas to enhance the buying experience.
- Supply Chain Management:Streamlining operations to reduce costs and improve delivery times.
- Localization:
Sourcing components locally to reduce dependency on imports and support the local economy.
- Innovation:
Implementing advanced technologies like IoT and AI for inventory management and logistics.
Today, they’re present in over 240 cities in India and also in places that are not easily accessible like Kargil.
Promotion:
Mahindra’s promotion strategy integrates multiple channels to create a cohesive message. Traditionally, they have used print ads to reach a wide audience. For instance, here is an old ad by Mahindra:
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| Source: Reddit |
They also invested in creating compelling ad films to build brand awareness and trust. For instance, here is an old ad for Mahindra Bolero:
One of their most famous campaigns is the ‘Live Young Live Free’ campaign:
It targets the aspiration of freedom – to go wherever one wants in a vehicle that can bear the rough paths.
Not only this, they also roped in celebrity reach along with the craze for Bahubali by featuring Prabhas in this contest:
This was strategised to be an incentive for people to engage with the brand. They also created a series like this:
This shows the consumers the experience of driving the car through rugged terrains in a relatable manner. The lack of professional filmmaking makes it more authentic.
In a Nutshell
In conclusion, Mahindra and Mahindra’s strategic marketing approach has solidified its position as a leader in the Indian automotive industry.
They have leveraged a diverse product portfolio, innovative marketing campaigns, and a strong commitment to customer satisfaction, to navigate market challenges and capitalized on growth opportunities.
By embracing technological advancements, sustainability practices, and effective marketing strategies, Mahindra continues to shape the future of mobility while maintaining a strong foothold in both domestic and international markets.
Key Takeaways from Mahindra and Mahindra’s Marketing
- Segment & target:
Know your audience deeply and tailor messages for each segment.
- Cater to diverse segments:
Offer a variety of products/services to reach different audiences.
- Build trust:
Showcase quality & reliability through marketing.
- Mix marketing channels:
Use traditional & digital marketing for broad reach.
- Embrace innovation:
Continuously improve your product/service through innovation.
