LOGAN

The Indian Industry

Two players- Hindustan motors, Premier
automobiles.
Banned foreign-owned operations.
1991- The deregulation.
Renault
Largest French car maker.
Acquired 99% stake in Dacia
Logan a big success(SUV).
Based on manual labour.
Low price-USP.
80% of components must be local.
Cost of capital-36000 cars annually(Risk)
Supplied petrol engines to M&M
M&M
Farm equipment producer(500000 Sqm).
2003- Scorpio “car of the year”.
Brand image(ruggedness).
Image transformation(1999-bolero).
Enters global market.
The Collaboration
In 2005 51:49 (capital of Rs. 7 billion)
First Indo-french joint venture.
Sold in Mahindra showroom.
Initial capacity 50000 units.
The ‘value for money car’
Positioned between B & C segment.
The Logan positioned at the higher end of
the B Segment extending to lower end of C
segment.
low cost,
low maintenance,
high mileage and features like reliable
engineering, Design specifications
This will help M&M maintain its overall value
proposition.
Renault's Low Cost 'World Car
POSITIVES
Designed for India and spacious.
Fuel Efficiency
Aggressive Pricing
Demography.
Ideal Product Strategy
Segment-wise Growth
E- Luxury cars(BMW, Mercedes) 166%.
D- Sedan(Octavia, Corolla) 40%.
C- Compact Sedan(Accent, Ikon) 37%.
B- Ultra Compact Hatchback(Palio, zen,
indica) 29%
A- Micro hatchback(M-800, M-Omni)
16%.
SWOT
Strengths-
Low cost.
Brand image.
Available assets.
Established network.
The conglomerate.

Weakness-
Quality.
Looks.
 Opportunities-
New market.
Growth rate(both market & economy)
Demographics.
Distinct positioning

Threat-
Competitors.
Strange positioning.
Steel prices.
Problems
•Positioning.
M&M’s Image.
Competition.
Weak promotions.
Probable Solutions
Introducing More models in higher end
Sedans.
Better promotions.
Advantage of Other industries.