Drivin​g Success:​ The C​omprehens​ive Mar​keting Strategy ​of Mahin​dra & Mahind​ra

   
•     Team Digitofy
   
•     January 21, 2024

Mah​indra & Ma​hindr​a (M&M) is o​ne​ of India’s l​​​argest and m​o​st recogni​zable​ au​tomotive​ br​ands. Fo​unded in 194​5, M&M​ has grown​ ​from a steel​​ trading co​mp​any to a gl​obal​ con​glom​erate w​ith​ interests i​n aut​omobiles​, farm equi​​pment, aero​​space, defen​s​e, logistics​,​ real est​​ate and mor​e.​

With a ​portfoli​o of p​opular​ SUVs, comme​rcial ​vehicles and fa​rm equip​ment, M&M ​has become​ an automo​tive po​werhouse i​n India and ​across eme​rging m​arkets. The ​company sell​s over 20​0,000 vehic​les annual​ly, hold​ing ar​ound 19% mar​ket sha​re in t​he Indian​ passenger​ vehicle ​space.

M&M’​s rise ha​s been fuel​ed by sm​art marke​ting str​ategies th​at res​onate wi​th Indian c​onsumers. ​By comb​ining global ​scale with ​local insig​hts, M&M has bui​lt equit​y in its c​ore br​ands while la​unching​ new produ​cts tail​ored to ev​olving co​nsumer needs.

A​bout Mahin​dra & Ma​hindra

​Mahindra &​ Mahindra ​(M&M) is​ part of ​the Mahindra G​roup, a mult​inational conglomer​ate founded in Ind​ia in 1945. The gro​up initially​ traded steel b​efore diversifyin​g into automobile​s and tracto​rs. M&M was ​formed as the auto​motive division i​n 1947 and began​ assembling jeeps​ under licens​e from Willys ​Overland.

In​ the 1950s ​and 60s, M&​M expanded i​nto light ​commercia​l vehicles an​d three-wheele​rs, catering ​to India’s t​ransportati​on needs. By​ the 1990s,​ the company sta​rted design​ing and engi​neering its own​ SUVs and car​s to meet risi​ng consumer aspi​rations.

Today, ​M&M has a pre​sence across 100+ ​countries, with ov​er 240,000 em​ployees worl​dwide. The au​tomotive divisi​on offers SUVs​, LCVs, three-whe​elers and ele​ctric vehicles.​ Key passenger​ vehicle mod​els include t​he Scorpio, X​UV500, Thar, XU​V300 and Marazz​o. M&M is the wor​ld’s largest ​tractor manufacturer​ by volume, with ​models ranging​ from sub-compa​ct to special​ized farming ​equipment.

What’​s New with Mah​indra & Mahin​dra

Despite ​being a 75+ year ol​d company, Mahi​ndra has kept pace ​with India’s dynamic automotive evolution through constant innovation. Here are some of the recent developments and strategic moves by M&M:

• Investing in EVs: M&M is placing big bets on electric vehicles, earmarking $1 billion investment toward EV development over 3 years. The e20 electric sedan was recently launched, and the eVerito, eAlfa Mini commercial vehicle are also gaining traction.
• Connected Cars: M&M’s newer models offer advanced connectivity through features like BlueSense App, EcoSense App, emergency call buttons etc. Connected mobility solutions are a focus area.
• R&D Boost: M&M is expanding its R&D footprint, opening new design studios and tech hubs to accelerate development. Acquisitions like that of Pininfarina also bolster design capabilities.
• Rural Focus: M&M has launched targeted rural programs like Krish-e centres to boost rural income through farm mechanization solutions. Tractor portfolio is being strengthened to serve this crucial segment.
• Exports Growth: M&M aims to triple annual exports to 120,000+ vehicles by 2026, tapping into emerging markets across Africa, Latin America and Asia.
• Brand Consolidation: M&M has consolidated its various brands under two umbrella identities – the Mahindra badge for SUVs/cars, and Trringo for its electric 3-wheeler brand.
• Cost Optimization: With margins under pressure, M&M is reducing costs via platform consolidation, synergies with group firms and by leveraging its global presence.

Through these strategic efforts, M&M is strengthening its technology edge, appealing to new segments and defending market share in India while pursuing global expansion.

Buyer’s Persona

Understanding the motivations and preferences of core target groups is crucial for shaping M&M’s marketing strategy. Here are the key buyer personas that M&M eats, breathes and sleeps to serve:

Persona 1: The Urban SUV Buyer

• Demographics: 28-45 years, married, mid to high income urban households
• Need State: Seeks performance, prestige and distinctive style from vehicle. An SUV aligns with active lifestyle.
• Values: Success, achievement, security for family. Enjoys latest technology and features.
• Brand Perception: Mahindra SUVs offer rugged capability, power and road presence without the price tag of premium brands. Offers value compared to rivals.

Persona 2: The Rural Farmer

• Demographics: Male, mid income, owns >2 acre farmland, married with kids
• Need State: Requires tractor with reliability, fuel efficiency and power for intensive farming. Needs financing options.
• Values: Limited budgets yet progressive outlook. Takes pride in farm’s prosperity.
• Brand Perception: Mahindra tractors are powerful, sturdy and deliver performance. After-sales service support is reassuring.

Persona 3: The Commercial Fleet Owner

• Demographics: 35-50 years, owns fleet of LCVs
• Need State: Seeks vehicles with low operating costs. Needs good service support. Financing options are important.
• Values: Business growth and profitability. Expects good value for money spent.
• Brand Perception: Mahindra LCVs have proven reliability and cost efficiency ideal for logistics operations. Provide peace of mind.

By aligning product design and marketing to appeal to these core buyer personas, M&M has built lasting consumer relationships and expertise across segments.

Marketing Mix of Mahindra & Mahindra

Mahindra employs a balanced 4Ps framework to market its diverse automotive portfolio. Let’s examine the key elements of its marketing mix:

Product Strategy

• Range: M&M offers one of India’s widest range of vehicles from SUVs, cars, LCVs, tractors, three-wheelers and even EVs. There’s a model for every need and budget.
• Innovation: M&M leverages global resources yet localizes design to suit Indian conditions. Models like XUV300, Thar leverage new age technology.
• Styling: Distinctive styling with SUV heritage in DNA. Flagship models project prestige. New design center enhances differentiation.
• Customization: Certain models allow customization through optional packs and accessories to enable buyer personalization.
• Quality: M&M has improved vehicle quality and reliability metrics significantly over the years to match global benchmarks.

Price Strategy

• Penetration Pricing: SUVs like Scorpio, XUV300 launched at aggressive prices to expand category and gain share against premium brands.
• Price-Value Messaging: Communication highlights value offered by feature-rich Mahindra vehicles vis-a-vis the price. Superior ROI is conveyed.
• Segment Targeting: Separate models cater to budget, mid-range and premium price tiers within segments for wider coverage.
• Financing Options: Low down payment schemes, rural financing assistance make Mahindra vehicles more affordable. Local partnerships enable this.
• Discounts: Tactical discounts, cashback offers etc. used occasionally to stimulate demand and sales.

Place Strategy

• Rural Focus: Strong rural network with over 1,000 sales and service outlets. Krish-e centres also serve farmers.
• Dealerships: 500+ dealerships across metros, tier 1 and 2 cities for convenience and visibility.
• Inventory Management: Leverages IT systems for forecasting and inventory optimization to align supply and demand.
• Strategic Locations: Dealerships located on high-traffic city roads for maximizing test drives and walk-ins.
• Digital Presence: Website, app for online bookings and post-purchase engagement. Digital footprint expanded recently.

Promotion Strategy

• Mass Media Advertising: High-impact TV campaigns for new launches. Emotional storytelling focused on performance, thrill and family values.
• Digital Marketing: YouTube videos, targeted social media ads, SEM, emails, online display ads are aggressively used to engage digitally savvy buyer groups.
• Influencers & Reviews: Products seeded with auto experts, bloggers and influencers for authentic advocacy. Reviews are proactively managed.
• Events & Stunts: Experiential events like Mahindra Adventure used for consumer engagement. Thrilling stunts performed by vehicles.
• PR & Earned Media: Positive news stories are pitched proactively to sustain brand image. Celebrities and auto awards leveraged.

This integrated marketing mix has enabled M&M to nurture trust with Indian consumers, maintain leadership in SUVs and tractors, and expand into new spaces.

Competitor Analysis

Mahindra faces intense competition in SUVs and across vehicle categories from Indian and global brands. Let’s examine 3 key competitors:

1. Maruti Suzuki: India’s leading carmaker with 50%+ market share. Strengths in small cars and hatchbacks. Recently launched feature-rich SUVs like Brezza, Grand Vitara. Perceived to be more fuel efficient but lower on power vs Mahindra.
2. Tata Motors: Major rival especially in pick-up trucks and commercial vehicles. Competes via aggressive pricing and improvements in design. Perceived to lag Mahindra in quality and brand appeal. Popular models include Nexon, Harrier, Safari.
3. Hyundai: 2nd largest car brand in India. Known for refined engines, quality and after-sales service. Premium positioning with successful SUVs like Creta, Venue, Tucson. Seen as technologically more advanced vs Mahindra.

While these competitors have created challenges, Mahindra has leveraged its distinctive SUV heritage, rural reach, segment expertise and value positioning to defend market share. New product actions and brand building continue to be priorities.

Marketing Strategy of Mahindra & Mahindra

Here are the key elements of Mahindra’s customer-centric marketing strategy that have driven its automotive success over the years:

Brand Positioning

Mahindra has carved a strong brand positioning anchored on:

• Rugged SUV heritage
• Tough, reliable and value-packed vehicles
• Indian brand with global expertise
• Power, performance and prestige
• Peace of mind ownership experience

This clear branding helps Mahindra differentiate itself in the competitive auto market.

Insights-Driven Product Development

M&M leverages customer insights to engineer vehicles suited for Indian conditions – for example:

• Higher ground clearance for uneven roads
• Powerful turbo engines for hilly terrains
• Durability for long hauls under rough conditions
• Advanced connectivity and tech for younger buyers
• Customization for personalization by buyers

This “Made for India” approach has made the company’s vehicles more locally relevant.

The Pre-Launch Marketing

But the company’s biggest secret weapon has been pre-launch marketing through pictures and videos to generate buyer excitement and demand well before actual launch.

For example, for the high-profile launch of the XUV700, Mahindra released design sketches, reveal videos and even sound clips of the engine months before the launch. This created a strong buzz among auto enthusiasts, allowed people to visualize the product, and generated over 50,000 pre-launch bookings for the XUV700.

This strategy minimizes launch risks, creates easy sales pipeline, and secures buyer commitment for new models, enabling Mahindra to successfully launch models like XUV700, Thar, Scorpio-N despite tough market conditions.

Wrapping up

Mahindra & Mahindra’s remarkable evolution from a steel trading firm to a diversified global leader with dominance in SUVs and tractors holds important lessons for automotive marketers. By blending global expertise with Indian insights, focusing on brand building and customer experience, leveraging pre-launch excitement and rural connect, M&M has built a powerful marketing machine that fuels its growth even against intense competition.