Fewer brands, more models in M&M’S comeback trail

Mahindra & Mahindra (M&M) is set to embark on a sharper brand architecture as it seeks to make a strong comeback in the competitive sport utility vehicle (SUV) market, said a senior company executive. It will have fewer 'top head' and brands and will instead rely on brand recall to launch new models (rather than new brands). It will create differentiation by way of brand extensions.

“Henceforth, we’ll have a lot more focused strategy on nameplates and a sharper brand architecture. It’s based on our research that the same brand can cater to different types of buyer profiles by way of differentiated features,” said Rajesh Jejurikar, executive director – automotive and farm sectors, M&M.

M&M will follow a similar strategy for the Scorpio, the Bolero, and the Thar, he said.

The XUV700, its latest SUV offering that broke cover on Saturday, is the first model to mark the shift in strategy. Priced at ~11.99 lakh and going up to ~14.99 lakh, the model comes with variants under the MX and AX Series.

While the former is aimed at entry-level buyers, the latter offers trims loaded with advanced safety and high-end features targeted at more mature SUV buyers. The company has not revealed the prices of the top-end trim under the AX Series and the seven-seater.

M&M has not announced a date for bookings of the model just yet. It is expected to do so in the coming weeks.

M&M has learnt lessons on brand architecture the hard way. As the company's stronghold in the segment began to weaken in 2012-13 with the entry of 'car-like SUVS', it launched multiple SUVS — all under different brands. It included the Quanto, the Nuvosport, the KUV100, the Verito Vibe, and the TUV300. But none lived up to expectations. In trying to protect its turf and chasing volumes, M&M had to cede ground to rivals.

“The XUV700 will have to work hard for M&M and set the foundation of Mahindra core SUV strategy,” said Ravi Bhatia, president and managing director at JATO Dynamics.the narrow price gap between the entry level and top end trim indicates that high end variants may be introduced in future.

The pricing is indeed agressive and is designed to be an investment to create a demamd pull in the market. Even though this may cause a short term profitability challenge it is a sensible strategy

With the latest offering that replaces the flagship XUV5OO, the SUV major is looking to straddle both ends of the market — the premium SUV segment, which has the Creta, the Seltos, the Tata Harrier, and the MG Hector, and the premium six-seater SUV segment, which has the Hector Plus, the Tata Safari, and the Hyundai Alcazar.