Harvard Case - Mahindra "Rise": A Brand Architecture Decision
"Mahindra "Rise": A Brand Architecture Decision" Harvard business case study is written by Ashita Aggarwal Sharma, Lulu Raghavan. It deals with the challenges in the field of Marketing. The case study is 13 page(s) long and it was first published on : Feb 20, 2015
At Fern Fort University, we recommend Mahindra adopt a multi-brand strategy for 'Rise,' leveraging a sub-brand approach to cater to distinct customer segments. This strategy involves creating a clear brand hierarchy with 'Rise' as the overarching brand and distinct sub-brands for each target segment. This approach allows Mahindra to:
- Maximize market share: Target diverse customer segments with tailored product offerings and marketing campaigns.
- Enhance brand equity: Build strong brand associations within each segment, fostering loyalty and trust.
- Minimize cannibalization: Avoid competing with itself within the same market segment.
- Promote innovation: Enable independent development and positioning of sub-brands, fostering agility and responsiveness to market trends.
2. Background
Mahindra & Mahindra (M&M) is a leading Indian multinational conglomerate with a diverse portfolio of businesses, including automotive, farm equipment, and financial services. The company is known for its rugged and reliable vehicles, particularly in the utility vehicle segment. In 2014, M&M launched the 'Rise' brand, a compact SUV aimed at the growing Indian middle class. However, the initial launch faced challenges, including competition from established players and a lack of clear brand positioning.
The case study focuses on the decision-making process surrounding the 'Rise' brand architecture, specifically the need to address the evolving market landscape and cater to diverse customer needs.
3. Analysis of the Case Study
We can analyze the case using the Segmentation, Targeting, and Positioning (STP) framework and Porter's Five Forces analysis:
STP Framework:
- Segmentation: The Indian automotive market is diverse, with distinct customer segments based on income, lifestyle, and vehicle preferences. M&M needs to identify and target these segments effectively.
- Targeting: M&M should focus on specific segments with high growth potential, such as young professionals, families, and urban dwellers.
- Positioning: The 'Rise' brand needs a clear and compelling positioning within each target segment, highlighting its unique value proposition and differentiating it from competitors.
Porter's Five Forces:
- Threat of new entrants: The Indian automotive market is highly competitive, with numerous domestic and international players.
- Bargaining power of buyers: Customers have a wide range of choices, increasing their bargaining power.
- Bargaining power of suppliers: M&M relies on a diverse supply chain, reducing the bargaining power of individual suppliers.
- Threat of substitute products: Alternative modes of transportation, such as public transport and ride-sharing services, pose a threat.
- Competitive rivalry: The market is characterized by intense competition, requiring M&M to differentiate its offerings and build a strong brand identity.
4. Recommendations
Develop a multi-brand strategy with sub-brands: Create distinct sub-brands under the 'Rise' umbrella, each tailored to a specific customer segment. For example:
- Rise Urban: Focuses on style, technology, and connectivity, targeting young professionals and urban dwellers.
- Rise Family: Emphasizes safety, space, and comfort, catering to families and those seeking practicality.
- Rise Adventure: Highlights off-road capabilities and ruggedness, targeting adventure enthusiasts and outdoor enthusiasts.
Develop a clear brand hierarchy: Establish a clear visual and verbal identity for each sub-brand, while maintaining a consistent link to the overarching 'Rise' brand. This ensures brand recognition and consistency across segments.
Implement a differentiated marketing strategy: Tailor marketing campaigns, messaging, and channels to resonate with each target segment. This includes:
- Digital marketing: Utilize social media, online advertising, and influencer marketing to reach target audiences.
- Content marketing: Create engaging content that addresses the specific needs and interests of each segment.
- Experiential marketing: Organize events and activities that showcase the benefits of each sub-brand.
Leverage technology and analytics: Use data-driven insights to understand consumer behavior, personalize marketing messages, and optimize product development.
5. Basis of Recommendations
Our recommendations consider the following factors:
- Core competencies and consistency with mission: M&M's core competencies in manufacturing, engineering, and product development align with the multi-brand strategy, enabling the company to create distinct offerings for diverse segments.
- External customers and internal clients: The multi-brand approach caters to the diverse needs of external customers while providing internal teams with clear brand guidelines and target audiences.
- Competitors: The multi-brand strategy allows M&M to compete effectively with established players by offering specialized products and services tailored to specific customer segments.
- Attractiveness ' quantitative measures: The strategy is expected to increase market share, enhance brand equity, and drive revenue growth.
6. Conclusion
By adopting a multi-brand strategy with sub-brands, M&M can effectively address the diverse needs of the Indian automotive market, strengthen its brand position, and achieve sustainable growth. This approach allows the company to leverage its core competencies, cater to specific customer segments, and compete effectively in a dynamic and competitive landscape.
7. Discussion
Alternatives:
- Single brand strategy: Maintaining a single 'Rise' brand could lead to brand dilution and difficulty in appealing to diverse customer segments.
- Brand extension: Extending the 'Rise' brand to unrelated product categories could damage brand equity and confuse customers.
Risks and Key Assumptions:
- Implementation challenges: Successfully implementing a multi-brand strategy requires careful planning, execution, and ongoing monitoring.
- Brand cannibalization: If sub-brands are not carefully positioned and marketed, they could cannibalize each other's market share.
- Cost considerations: Developing and marketing multiple sub-brands can be costly.
8. Next Steps
- Conduct market research: Gather data on customer needs, preferences, and buying behavior within target segments.
- Develop sub-brand identities: Create distinct names, logos, and messaging for each sub-brand.
- Launch pilot programs: Test the sub-brand strategy in select markets before rolling it out nationally.
- Monitor performance: Track key metrics, such as market share, brand awareness, and customer satisfaction, to assess the effectiveness of the strategy.
By following these steps, M&M can successfully implement a multi-brand strategy for 'Rise,' achieving its growth objectives and solidifying its position as a leading player in the Indian automotive market.
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Case Description
In 2009, the Mahindra Group, a US$16.3 billion multinational corporation based in Mumbai, India, had introduced a new positioning called "Rise" to provide meaning to its brand and help unite its various businesses under a common umbrella. Successful integration and implementation of the new positioning required the company to re-examine its brand architecture, which was currently a complex, inside‐out arrangement that resulted in a diffused image. Aligning diverse and legacy businesses would be a complex task, and resources were limited. A clear brand architecture would not only help the company to efficiently allocate advertising dollars but could also help in identifying investment opportunities and risks among the different sub-brands. Landor Associates India, a global brand consulting firm, was tasked by the board to suggest a relevant brand architecture model that would be relevant across geographies. Should the Mahindra brand be used by all businesses, products and services? Should the company follow a conglomerate approach and create a "house of brands" as P&G and Unilever had done, or should it follow a hybrid strategy?
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