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Aditya Shastri
Lead Trainer & Head of Learning & Development at IIDE
Updated on: Sep 17, 2024
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About Mahindra & Mahindra
Dominating the Indian automobile industry for decades, Mahindra and Mahindra was founded in 1945 by Mahindra Brothers and Malik Muhammad as a steel trading company. With 2 major operating divisions, Mahindra & Mahindra is the 3rd largest producer of tractors in the world.
With robust products and trust of its users, the company has a solid export chain for ṣregions like the US, Africa, and several other countries in South East Asia.
Currently headed by Anand Gopal Mahindra, Mahindra and Mahindra made an entry into the two-wheeler vehicle industry in 2008 by acquiring the business assets of Kinetic Motors.
In 2018, among the top companies in Fortune India 500, Mahindra & Mahindra was ranked in 17th position. Mahindra and Mahindra has a large volume of production and manufacturing of Tractors worldwide.
Under the able guidance of Mr. Anand Gopal Mahindra, Mahindra & Mahindra is now a big multinational firm operating in diverse business segments.
| CEO | Anish Shah |
|---|---|
| CFO | Rajeev Goyal |
| Area Served | Worldwide |
| Industry | Automotive |
| Market Share/ Revenue | 445 Billion Indian Rupee |
| Vision | To Rise |
| Tagline | Spark the New |
Marketing Strategy of Mahindra and Mahindra: Mahindra’s Marketing Mix
Product Strategy:
What started as a farm-related equipment company, Mahindra and Mahindra now serves as an esteemed automotive manufacturer company that has something for everyone in its diverse product portfolio.
Their portfolio comprises personal vehicles, commercial vehicles, electric vehicles, application trucks, trucks, light trucks and buses. Talking about personal cars, the company has unique and successful products in utility vehicles, multi-utility vehicles, sports utility vehicles and sedans.
Some of Mahinfdra’s successful cars are Bolero, Scorpio, KUV100, XUV 500, Quanto, Xylo, Rexton, Korando, and Kyron.
Let’s dig a little deeper into the product mix of Mahindra and Mahindra
(a) Automobiles: Hands down, Mahindra and Mahindra is one of the most trusted and successful automobiles companies in India. Its blockbuster cars include Bolero, Scorpio, Xylo, and XUV500. The main reason behind its success is its quick adaptability to technology. Mahindra offers high-tech car features that captivated its target market to give a chance and try Mahindra’s offerings.
(b) Farm Equipment: As one of the leading farm equipment manufacturing companies, Mahindra includes cutting-edge products for its farm friends like harvesters, tractors, etc.
© Information Technology: To enter into the realm of IT, Mahindra and Mahindra introduced its subsidiary, Tech Mahindra that provides IT and software solutions to its global clients.
(d) Financial Services: To increase its market share and leave no stone unturned, Mahindra and Mahindra entered into financial services offering loans, insurance, mutual funds, etc.
(e) Real Estate: Mahindra and Mahindra is into real estate by the name of Mahindra Lifespace Developers and Mahindra World City developers. These businesses focus on residential and commercial development.
(f) Leisure and Hospitality: To capture the holiday and leisure market, Mahindra and Mahindra operates Club Mahindra, a chain of luxury resorts that provides best stays to its customers.
Price Strategy:
To gauge a big chunk of the market, Mahindra and Mahindra offers competitive pricing to its customers. The cost of Mahindra’s product includes its manufacturing to assemble the parts and making them a whole product to make them available to its users. Though the company offers premium products at high prices, Mahindra and Mahindra has something for everyone. The company has launched products suitable for every section of the society that are quite affordable.
Lets understand the brand’s pricing strategy is detail:
(a) With its competitive pricing strategy, the company tries to convey its brand message that users can get similar or better features for their vehicle at low prices. This pricing approach attracts price conscious users who are sensitive when it comes to spending money and are looking for quality and affordability.
(b) Mahindra and Mahindra offers value based pricing for its premium products like Xylo, XUV300, Thar, etc. The company set prices of such cars based on its perception by the target market and other factors like technology, features, brand’s prestige, etc.
© For price sensitive markets like rural areas, the company offers flexible pricing solutions and financing services to its customers. By doing this, Mahindra and Mahindra penetrates quite easily in the rural area and builds credibility among its users who are field workers and farmers.
(d) Talking about the international markets, Mahindra and Mahindra uses market penetration pricing, i.e., keeping the prices low during the initial stage to capture market share and increasing them gradually once they achieve a good customer base.
Place Strategy:
With assembly and manufacturing units in locations like India, China, United Kingdom, and Brazil, the company’s manufacturing facilities are spread over a large area of 500,000 square meters. Lets understand its placing strategy in detail:
(a) Domestic presence: Mahindra and Mahindra has a strong domestic presence with plants located in Bengaluru, Chakan, Nasik, and Haridwar. Not just this, the company has a robust dealership network across the country to facilitate wide access of the company to its customers and brand visibility.
(b) To optimize its logistics and cost, the company has strategically placed its units in critical regions like North America, Europe, Africa, and Asia. Doing this also gives them a chance to understand the local market and adapt changes accordingly.
© To stay in touch with its customers, Mahindra leverages digital platforms for sales and engagement with its customers. This helps them to align with contemporary buying preferences.
Promotion Strategy:
As one of the leading automobile brands, Mahindra leaves no chance when it comes to marketing. With big marketing budgets, the company uses multiple marketing channels to promote their business.
Mahindra and Mahindra uses traditional platforms like radio, newspapers, TV commercials, billboards, etc to reach its rural audience. Apart from this, the company partners and organizes various events in sports and lifestyle segments to gain audience’s attention.
The company also collaborates with influencers and celebrities to increase brand visibility. To stand out of the clutter, it organizes multiple experiential events which allows customers to engage directly with their products, strengthening brand experience and loyalty.
With multiple promotional activities, Mahindra and Mahindra actively participates in exhibitions for promotions. They distribute company catalogs, contest interactive competitions during such events to increase brand awareness.
Not just this, Mr. Anand Mahindra is an active social media user and generally rewards best talents with job offers or money. Though he might not be doing this with an intention of promoting Mahindra, these activities get a lot of headlines and users generally don’t miss out on such news.
Marketing Strategy of Mahindra and Mahindra
Segmentation, Targeting & Positioning
Segmentation is the process of breaking a targeted market into segments that may be contacted. Market segmentation divides a market into subgroups based on demographics, requirements, priorities, shared interests, and other psychographic or behavioral traits that help to better understand the target audience. Talking about the segmentation of Mahindra & Mahindra it has segmented its business into those who are seeking a complete automobile segment including sedans & SUVs for a luxurious life and the other group (especially the rural area) who are price sensitive and are looking for quality products within their budget.
Targeting a business’s choice of potential customers to whom it wants to sell products or services. The targeting approach requires segmenting the market, selecting the most relevant segments, and identifying the products that will be supplied in each segment. So here in this case the targeted audience of Mahindra & Mahindra is upper-middle-income bracket individuals who love to live a luxurious lifestyle and the middle class section who are price sensitive.
Positioning is the final phase of the ‘STP’ process, and it focuses on how the customer perceives a product or service in comparison to the competitors, which is critical for gaining a competitive edge in the market. To gain a competitive edge in the market, Mahindra & Mahindra always positions itself as a quality and affordable automobile with new thinking and positive change.
Now that we know enough about the company, let’s quickly hop into its marketing campaigns and how they promote their business.
Marketing Campaigns
#TogetherWeRise Campaign
Since its operations, Mahindra aimed to bring a revolutionary change into the automobile industry and give something back to the society. Keeping this in mind, the company launched #TogetherWeRise campaign under Rise with Mahindra program. The campaign demonstrates unique aspects of the future world and conveys that whatever is good for the world, is good for business. What creates value, also creates profit. What enriches the planet, can enrich the company too and businesses of the future will have to rejig their ‘purpose’ to be relevant for the times we live in.
With this campaign the brand tries to convey that with all the ongoing climatic changes, technological advancements, etc, Mahindra and Mahindra wants to ‘Rise’ – for a more equal world, to be future-ready by creating value.
This unique marketing strategy of Mahindra and Mahindra brought a sense of freshness to its campaigns and showed how much the brand is concerned about the society and its future.
#CraftingLife Campaign
There’s no denying the fact that the marketing strategy of Mahindra and Mahindra is always unique in its own way. Recently, Mahindra Lifespace Developers, the real estate and infrastructure development arm of the Mahindra Group,launched its bespoke #CraftingLife campaign. With this campaign, the company tried to expand the concept of real estate through climate-responsive design; thriving, supportive communities, robust features and amenities; and transparent and hassle-free consumer experiences.
#ChooseTogetherChooseRight Campaign was one of the most successful campaigns of all time. At this stage, the economic class categorised people hyped about the cars which were under 10 Lakh. This campaign was for the general public who wants to live a luxurious life but can’t afford it. Mahindra made their life better by providing the cars under 10 Lakh with the best external services.
The “Live young, Live free” campaign became popular in 2012. “The Mahindra Classics” campaign was the one that brought heritage to life through their stories and interviews. This campaign was launched with “The Mahindra Classics” Logo with thematic communication. The campaign displayed its thrilling stories from the past and inspired the community of Mahindra fans.
Recently Mahindra introduced a unique campaign for women. #womenwithdrive, where 30 women took the wheel to test their off-roading skills under the supervision of the experts. It was a truly remarkable experience for all the brave women and for the Mahindra group. As you can see the campaign was one of the most successful campaigns of all. #exploretheimpossible
Digital Marketing Strategy of Mahindra and Mahindra
SEO Strategies
As per SEO ranking, it is said that the Number of keywords – below 500 is bad, above 1000 is good, and 10,000+ is amazing. As we can see, its website has 82,461 organic keywords and it’s outstanding. That means the digital marketing of Mahindra & Mahindra is gaining a good number of insights. Mahindra & Mahindra’s digital marketing is attracting a large number of visitors. The monthly traffic is in the 277k+ range, which is considered exceptional.
Mahindra & Mahindra is doing its best, But this is not enough if the company has to set a benchmark in front of its competitors or to remain at its peak in this industry i.e. Mahindra & Mahindra need to work on its SEO strategies so that it can attract a large amount of organic traffic to their site which leads to an increase in their sales which is good for the company.
Influencer Marketing
Mahindra and Mahindra is renowned on national TV due to the collaboration with celebrities like Mahesh Babu, Manoj Bajpayee, Ajay Devgn, Varun Dhawan, and Prabhas. In this era, people go crazy after watching their favourite stars promote the brand along with some complementary music. We can gather the public’s attention to the brand when we enter with a celebrity because the public trusts the brand’s product only when a trusted celebrity endorses it. So, influencer marketing is the best marketing strategy in this generation.
E-commerce Strategies
Mahindra & Mahindra’s vehicles of all types are available on their website. Even many other websites have taken the agency of Mahindra & Mahindra. In every city, there are many branches of Mahindra & Mahindra’s where they give you the offers for booking the vehicle from the website itself to increase their views on their website.
Mahindra gets only 6% of sales through e-commerce portals, as this company is the first one to sell its products online. Their focus is to bring the outlet home to the buyers through both the experiences i.e. physical and virtual. Mahindra & Mahindra expects 15% retail sales to be triggered through online portals.
Mobile Apps
“Mahindra With You Hamesha” is the app where you can look after newly launched vehicles and ongoing offers. You can also apply for an extended warranty from the comfort of your home.
They also have a “Mahindra Finance” app where you can book your vehicles on the loan system. For middle-class people, this system is of too much use if they wish to pay the instalments later on time. Here you can easily apply for Mahindra Vehicle Loans, Insurance & Mutual Funds. You can make payments in just a few seconds by using your wallet money, Paytm, debit cards, credit cards, etc. You just have to do a one-time registration via PIN or Fingerprint.
Content Marketing Strategies
Mahindra & Mahindra do write blogs and listicles on their website to attract customers. It will be more beneficial for the people if this company starts making EVs. Different affairs and challenges like the Dubsmash & win KUV100 contest are influenced on social media to create buzz and are customer-oriented. It has all over 17 million fans across different brands and over 40 million views on YouTube.
Mahindra & Mahindra also posted a video on YouTube of a car with a charming dashboard, engaging on the road, taking Varun Dhawan as a brand ambassador.
This ends our elaborative marketing strategy of Mahindra and Mahindra. Let us conclude our learning below.
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Aditya Shastri
Lead Trainer & Head of Learning & Development at IIDE
Aditya Shastri leads the Business Development segment at IIDE and is a seasoned Content Marketing expert. With over a decade of experience, Aditya has trained more than 20,000 students and professionals in digital marketing, collaborating with prestigious institutions and corporations such as Jet Airways, Godrej Professionals, Pfizer, Mahindra Group, Publicis Worldwide, and many others. His ability to simplify complex marketing concepts, combined with his engaging teaching style, has earned him widespread admiration from students and professionals alike.