Marketing Case Mahindra And Mahindra Entering Us Market

6343 words - 25 pages

Mahindra and Mahindra~ Entering the US market with a SUV ~Executive SummaryMainly known for being a tractor manufacturer along with other farm products, Mahindra and Mahindra has recently began to produce sport utility vehicles which they would like to bring to the North American market along with an upcoming diesel-electric hybrid SUV model as well. The company enjoys a global reputation for bringing performance and productivity together in their tractors, helping them secure favorable perceptions of being an excellent company.Given its background in producing vehicles for sale mainly in India, Mahindra and Mahindra lacks exposure to the global market and faces a slew of barriers that raise the following three critical issues:Unfamiliarity to the US marketCarrying only a core competence in manufacturing tractorsStiff competition from hybrid vehicles such as Toyota, Ford or HondaIt is highly recommended that to tackle these issues, Mahindra and Mahindra should first consider further market research to understand the tastes and culture of the US consumer. Concurrently, the company can test out their SUV in a brand new market such as Egypt or Brazil first in order to minimize the possible effects of failure in a huge market such as USA. Failing in such a lucrative market may even cause damage to the sales of their existing tractors in this region.Moving forward, the company should enter into discussion with Ford Motor Company in USA to bring their new hybrid SUV model to the North American market through a possible joint venture. This would build on their previous relationship with Ford as both companies worked together to launch car models in India already.Finally, to remove their image as a tractor company, Mahindra and Mahindra will have to engage in heavy advertising and promotion to build their new brand in the US market, perhaps harping on their new diesel-electric hybrid technology which truly provides a cheap solution for the price sensitive consumer in USA.Introduction - The Company and BackgroundThe Mahindra Group (Mahindra and Mahindra) has become a very established auto manufacturer mainly dealing with the utility vehicle market segment in India. The company is involved in producing Sport Utility Vehicles (SUVs), Utility Vehicles (UVs), pickup trucks, tractors and three-wheelers for the dynamic Indian market. Having been in this south-east Asian market for over 60 years, and being renown for its Jeep in India, the Mahindra Group has truly branded itself as an automaker known for making general purpose utility vehicles.What is interesting about this company is that it has grown into a conglomerate that services many other industries such as Trade and Financial Services, Information Technology, and Infrastructure Development. Mahindra and Mahindra has formed strategic alliances with companies such as Renault SA and Nissan USA. Furthermore, to follow its global growth strategy, the company has achieved strong acquisitions of manufacturing...

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