Mahindra Group acquired 70% share of SsangYong Motor in 2011 to as a vision to fill its premium product portfolio. Now Mahindra is having full range of SUV products from Low Budget to Mid high and premium segment. SsangYong, will help to establish Mahindra group in overseas markets, with SsangYong’s existing network and product awareness. It also give way to enter into mid high and premium segment of Indian SUV market. New Product of Tata-Land Rover will position exactly as same as SsangYong product range.


ACG has been doing continue research even before SsangYong became a part of the Mahindra Group. This product is having excellent features, Reliability, Superior Quality, Comfort and safety features along with sound technology. The overall company performance have improved. In almost all markets they have shown impressive sales growth. Financial results have also improved.

Mahindra is known for its aggressive marketing but for SsangYong it is lagging for in brand awareness. Currently there is only one product – Rexton in the market. To be more competitive and better ROI of its promotional investment, Mahindra need to launch few more model.

Word of mouth is a very effective brand communication but due to “SsangYong” name, it is difficult to pronounce correctly. Mahindra need to Re-think about it. In our survey we have covered even high qualified, Business man, Sports people etc. but most of them are having difficulty to pronounce this name correctly. It is having several long term negative impact on its overall performance.

As per our study, Rexton is an excellent product which would be game changer in this segment. But in Brand awareness it is not well known in the market. People are having some doubts on its spare and maintenance cost and re sale value. They are having full confidence on wide Mahindra Network support.

Competitor Product Position

Rexton’s price position is very impressive and is a product having good value for money. The brand need to shift from C to D-B position.

Its competitive product position is also appropriate compared to peer group products.

Still it needs to give good promotion to make it brand recall in a short span of time.

Overview of SsangYong:

Product Portfolio and Market Trend

It looks like a win-win situation of Mahindra and SsangYong but there are several challenges ahead for the Mahindra Group.

Global Product Portfolio of SsangYong:

Growth Markets for SsangYong

SsangYong had been performing well in China and South Africa where they had achieved consistent year on year growths and at the same time Argentina and Eastern Europe has been encouraging.

Among the above China could be SsangYong's strategically important market considering the size and acceptance in the market. Russia the other potential market on the cards has been sluggish due to political troubles. Brazil's economy is set for revival would be another positive market for the Brand's success in the coming years.

Purchase full Report – Contact – sales@autobei.com

4 Comments

Anil Mittal

ACG has done this study in advance, normally companies do such exercise after massive fail in market. This is expensive affair after spending money in one brand building and then start new branding of new name. By this study ACG has given new way of thinking.

Mahindra has not yet started aggressive promotion of SsyangYong. Now they have a time to rethink about it and can save good amount of money and time.They should consider this point of difficulty of pronouncing this name. Most of the names in automobile industry are easy like Daf, MAN, Mahindra, Tata, TVS, BMW, AMW, Tata, Daimler, Honda, Toyota etc. Also it look Chinese name which is not favorable for Brand building. It could give negative impact on its branding. This name could be suitable for countries where Chinese name is having good reputation.

Regards,
Anil Mitta
Research Analyst

June 30, 2014 - 5:04 am Reply

Saurabh Agrawal

It is possible to establish “SsyangYong” name as a brand but Mahindra needs to do massive marketing and promotion which would not be very cost effective. There would be also risk of low ROI.

June 30, 2014 - 5:04 am Reply

S.Vijayakumar

Dear All,

ACG has done good review of SsangYong.
To add in this review, there is a issue of “after sales”
Mahindra having excellent network of their existing product. But few issues like spare parts and service cost is higher than the competitors of their current products.
Are they planning to come for SsangYong with new business partner, then ROI is key factor for them.
Also parts availability, pricing and technical competence of service team to support and promote the brand in market.

If they overcome of the above issues, then no vehicle can compete with their new partner SsangYong.

June 30, 2014 - 5:04 am Reply

Pramod

Congrats ACG Team! Mahindra has changed its Branding in promotion from “Rexton from SsangYong” to “Rexton from Mahindra”. So now mainly focus on Product Branding of SsangYong to Mahindra Corporate Branding.

Pramod Mittal
Branding and Corporate Strategy

June 30, 2014 - 5:04 am Reply

Leave a Comment