Functional Strategies of Mahindra

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Functional Strategies of Mahindra & Mahindra Looking to foray into the lucrative passenger car market, Mahindra & Mahindra entered into a joint venture with Renault S.A in 2005. Their first product, Mahindra-Renault Logan was launched in 2007 as an entry level sedan. It was derived from Dacia Logan, a small car manufactured jointly by Dacia Motors and Renault. Need for Change At the time of launch, Logan received generally favourable reviews, getting credit for its practical design and competitive pricing. However, consumer confidence in brand ‘Logan’ began to decline soon. The situation was further exacerbated when Renault entered into talks with Nissan for launching passenger cars in India. Prospective consumers were concerned if the company planned to be around for the long haul. By March 2010, annual sales were down to 5332, a decline of over 60% from 2009, at a time when the overall A3 segment in India registered a growth of 14.2%. Despite a booming economy and strong consumer outlook, Mahindra Logan failed to leverage this opportunity to gain a foothold in the A3 segment. Brand Positioning To attract a particular customer segment, each product or brand has to create its own unique image which is more attractive to the targeted customer segment compared to competing brands. The process through which this is done is known as brand positioning. Often this is done by developing a particular set of product features aimed at a customer segment and running a targeted advertising campaign to communicate the same. The primary objective is to cut through ambiguous and often generic communications clutter to reach out to the intended customers. Automobiles can be classified based on different criteria. Society of Indian Automobile Manufacturers (SIAM) classifies automobiles based on their length. As per this model, cars are classified into different

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