I think M&M would be in a bit of a quandary about pricing for the Thar Roxx. Even with all the gear the Roxx comes with, note that it is still not being positioned as a premium/luxury product or as a family car. All the commercials have been about a tough, go-anywhere product with tons of gadgets and gizmos and , and not about an alternative for adventurous family-oriented activities and use cases.
I feel the Thar RoXX would have to be positioned well below the ScorpioN in the price ladder due to a couple of reasons:
- It will be significantly shorter (4.3 meters versus 4.67 meters for ScorpioN)
- Missing the convenience of 3rd row seats for larger families or those with pets
- Missing features such as leatherette seats, Dual Zone AC, Electronic Terrain Selector, etc. which add to the luxury quotient of the car.
Given the ScorpioN ranges all the way from 13.8 lakhs to 24.5 lakhs, this leaves M&M in a difficult spot to differentiate the two on pricing. To get volumes, they have to get the broader market of customers with families, and not just off-road wannabes (who are more likely to be single, or buying a second car for weekend fun) - Families who are shopping for a butch SUV as their primary (and perhaps only) vehicle for their weekend adventures, long-distance trips, as well as to do city commute duties. If one such a customer walks in with the family into a showroom, and sees the Roxx and the ScorpioN side-by-side, AND the prices are too close to each other, the customer will be swayed towards the ScorpioN for all the above reasons. Why buy a car that is half a meter shorter, and lacks the practicality of having a third row, and has limited space inside, when one can get a much more polished and luxurious looking vehicle such as the ScorpioN, which can also match the Roxx 60-70% on 4x4 and Off-roading capability?
M&M will need to do a detailed Customer Persona Analysis, the attributes each persona values, relative perception of the four New Gen SUV brands they have in the market (Thar 3 Door, Thar Roxx, ScorpioN and XUV700) on each attribute, and look at affinity scores by persona for each of the four SUVs. This will help them target the right vehicle for the right persona. Also, they have to look at implications of this for the relative market share of each SUV brand that they are targeting for. They then have to place the additional pricing (Affordability/Value for Money) attribute that will be differently valued by each customer persona group. This will then help them to get to the right target pricing, that will in turn, help convert the most important target customer personas into Thar RoXX buyers, ideally moving only the desired personas over from the other three SUVs, while ideally targeting more conversions from other manufacturer brands. Behind the scenes, they have to look at revenue and profitability implications of the product placement, promotion and pricing strategies.
I did a rudimentary analysis with just 4 personas, of course, there would be many more key ones.
- Successful single, standing apart from the crowd
- Young family of nature-loving explorers
- Multi-gen family traveling far and wide
- Wealthy middle-aged hobby & lifestyle seeker
I considered just 7 attributes, there would be many more.
- Space & Practicality
- Gizmos and Tech
- Sense of Luxury
- Hard-Core Off-Roading Capability
- Size & Stance - Imposing, Rule the Road
- Power & Performance
- Uniqueness, Coolness of ownership
I then distributed a total of 10 points across the 7 attributes for each of the four customer personas. This matrix provides a view of what attributes each customer persona values. In reality, these scores have to be discovered through focus groups and interviews with prospective customers of both M&M and competitor brands/models.
I then distributed a total of 10 points for each of the four new Gen SUV offerings from Mahindra across the same 7 attributes. This is the second chart attached. This has ot be again based on customer perception, and not what the company deems technically correct. However, these scores can be influenced through the product promotion messages and TVCs.
The third chart provides an affinity rating, which is the product of the importance score of the attribute and the perceived relative strength of each SUV Brand on that attribute, summed up across all 7 attributes for each SUV brand. This is a rough high level measure of "affinity" that each customer persona is likely to have for each SUV brand. For example, this hypothetical chart shows the significant extent of overlap that exists between the four SUV brands. For instance:
- A "young family of nature-loving explorers" will be confused between the Thar 3-door the Thar Roxx. However, affordability is a concern for this persona, and a significant price differentiation will push them towards Thar 3-door, and absence of a major price difference will move them towards the Roxx.
- A successful single person warning to stand, apart from the crowd will again be confused between the Thar 3-door and the the Thar Roxx. However, this persona is one that is price inelastic, so will be ready to pay the price premium for the Roxx.
- A wealthy, middle hobby and lifestyle seeker will be confused between all 4 vehicles as they value too many things - sense of luxury, gizmos and gadgets, off-road capability, uniqueness etc. The line-up of SUVs is very confusing for them as each has something to offer. More targeted promotion is required in this case depending on the relative brand objectives.
I know this is a very unscientific and rudimentary analysis, but I hope Mahindra is
some some analysis, as so far there doesn't seem to be much sharpness and differentiation, based on customer personas, in their product positioning, promotion or pricing strategies. even social media Ad placements seem banal and undifferentiated.