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Old 13th February 2023, 02:42   #1
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Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

Mahindra has recently launched the ScorpioN and started taking bookings from 30th July 2022, with the promise that the first 25,000 bookings will be billed at an introductory price. The deliveries started on 26th September, with 5 variants available - Z2, Z4, Z6, Z8, and Z8L.

However, we observe that Mahindra is only delivering the Z8L variant and just a few Z4s, leaving the customers who booked other variants waiting. This raises a question on the fairness of this marketing strategy. Is it right for a brand like Mahindra, on which people put their trust, to prioritize deliveries based on the variant they chose?

What has the customers who booked other variants done wrong to deserve this treatment? It's not fair to keep them waiting while the customers who booked the Z8L are being given priority. This kind of behavior raises doubts on the credibility of the brand and its commitment to its customers.

As consumers, we have the right to expect fair treatment and honesty from the brands we support. It's unacceptable for a brand like Mahindra to prioritize deliveries based on the variant chosen and leave its loyal customers in the dark. I hope the brand takes this matter seriously and rectifies its mistake.

What do you think about this situation? Do you believe this is a fair marketing strategy by Mahindra? Let's start a discussion and bring this matter to the attention of the brand.
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Old 14th February 2023, 00:33   #2
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

I am absolutely in agreement to what you mentioned. At no point of time it was told to us ( those who didn't opt for Luxury edition) that Z8 and Z6 variants will be pushed off the production schedule for months together. And not a single variant of Z6 and Z8 will be manufactured & delivered to any end customer across India till mid of Feb.
Yes, Mr. Anand Mahindra and team is here to make money, but here they are playing with the trust and emotions of many Indians who has helped them in building this Brand over years. A big let down 👎

It maybe a good business proposition but definitely not a good brand building or PR exercise.

What's the point in opening up the Booking for Z6 and Z8 variants when there was no intention to manufacture/ deliver a single of them till date?

Many a prospective Z8 customer has been lured to upgrade to the Luxury edition and offered an immediate delivery but the question remains, is this the model Mahindra wants to adopt and customers who are unwilling to pay the extra dime for the top most variants suffer in lurch ?
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Old 14th February 2023, 05:17   #3
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

The lack of sufficient production facilities amidst a slew of launches and a constantly swelling order book across a wide range of different types of vehicles is clearly causing huge headaches and angst to customers. In these days of instant gratification I can only marvel at the patience of customers who are waiting for their cars, for so long.

Really, this ought to have prompted Mahindra to buy Ford’s state of the art Sanand plant instead of letting the Tata Group snaffle it.

Mahindra ought to have pro-actively taken such a call, seeing the phenomenal response they got for the Thar in 2020 and XUV 700 in 2021.

After all, considering the many thousands of crores of rupees that Mahindra are spending, another 725 or even 900 Crores (which reportedly is the sum of money Tatas gave Ford for that plant), is not really too tall an order in terms of capacity investment.

Even the most monumentally myopic, imagination-free, bean-counting, nit-picking, tight-fisted gang of accountants would logically have approved this investment, considering the sheer range of vehicles Mahindra produces and the massive order book that they are sitting on!
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Old 14th February 2023, 05:43   #4
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

Quote:
Originally Posted by shankar.balan View Post
Mahindra ought to have pro-actively taken such a call, seeing the phenomenal response they got for the Thar in 2020 and XUV 700 in 2021.
Absolutely agree with you! It's not just about preplanning the production but also about being fair to the customers, especially when it comes to ScorpioN Z2 delivery, ScorpioN Z6 delivery, and ScorpioN Z8 delivery.

A first come, first serve approach would have been the best way to handle the high demand and avoid making Scorpio N Z2, Scorpio N Z6 and Scorpio N Z8 customers wait for months on end. This not only affects the customer satisfaction but also the brand image of Mahindra and ScorpioN altogether in the market.

In addition, it's important for Mahindra to understand the impact of long wait times for ScorpioN lower variants on customer loyalty. If the customers have to wait for too long, they might start looking for alternatives and switch to other brands. This could lead to a loss in potential sales for Mahindra, but it seems as if this is a matter of least concern/priority for them or they are too confident. Many customers have already booked for Toyota Innova HyCross, Toyota HyRyder or Tata Safari.

In conclusion, Mahindra should have taken a more proactive approach to fulfill the high demand for their ScorpioN Z2, Z6, and Z8 vehicles in a timely and fair manner. By doing so, they could have avoided the disappointment and frustration of their customers and improved their brand image as a reliable and customer-oriented manufacturer.
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Old 14th February 2023, 13:13   #5
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

Pls understand that Mahindra’s variant spread and manufacturing tactics have always been an open secret - that both of them are designed to push you towards the higher variants which are the most profitable.

The are doing this to push you towards the Z8L. Or, settle for the Z4 which is the bread and butter volume seller model which they anyway have to make.

This has become an industry standard practice nowadays. Create hype with insane waiting periods and then basically make the customer dance to your tunes. Instead of them offering discounts or benefits, we are having to run after them for timely delivery and are being made to choose overpriced variants, pay additional quick delivery premiums, buy mandatory insurance and overpriced accessories. It’s like we are back to the 80s.

Last edited by Shreyans_Jain : 14th February 2023 at 13:19.
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Old 14th February 2023, 22:19   #6
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

I for one cancelled my Z6 booking as I figured they are not going to honor the timelines for this variant. The dealer was ready to give me a Z8L but the price differential was too much for me.

They planned their models very well and have positioned them such that there is minimum/no direct competition (not from segment perspective but from public perception perspective).
They did good marketing, hype creation, capitalize on legacy etc. and have ended up with multiple blockbusters in their hands.

But when it came to the final execution they failed. They couldn't gauge the demand nor are they doing a good job at variant deliveries. With the current backlog they have, dissatisfied 'would-be' customers are not going to be a problem for them at all.

We need to find solace and happiness in another ride.

Last edited by nanoguy : 14th February 2023 at 22:21. Reason: fixed a misused word
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Old 14th February 2023, 23:15   #7
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

Mahindra has perhaps adapted its age old marketing strategy again to push its top variant. This move will swell its coffers more than the Z 2 and other variants that customers are missing at the showrooms. The Z 2 could get them lots and lots of government orders later on.

The waiting list is long but Mahindra should remember the longer waiting lists of the Bajaj m50 and Vespa XE and the long list for the Fiat Uno too. These lists disappeared overnight due to genuine issues.

On the lighter side, we miss a Scorpio N Z 9 variant. The previous generation Thar had a Anand Mahindra signature edition. And Mr Anand Mahindra could now autograph a Z 8 L variant.

Eureka ! The Z 9 variant is invented and ready to reach showrooms with a premium over the Z 8 L!
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Old 15th February 2023, 00:11   #8
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

100 % agreed as a consumer who want's to be treated fairly ,if I have managed to book in your flash sale of first 25K bookings then I want to be part of first 25K deliveries as well.

However, for Mahindra or any OEM this has been a well tested strategy of pushing higher profitability variants and extending waiting periods on lower variants becomes the perfect recipe of "Successful Launch and a Marketing Campaign".

Also from my experience, I have observed that during any New Launch the initial demand is high for the Top Most Variant and The most value for money variant which subsequently will become the highest contribution variant in due course of time.

Therefore, A planner @ HQ will consider Top Most Trims for Demo / Display / Initial Customers / Higher Launch Profitability for the 3 ~ 6 Months rolling production plan, followed by the bread & butter variant to fill the production line and stocks. Other variants are produced only to cater the RTO Approvals and minimal set of customers.

Once the product is matured (say 6 months) the variant mix is more balanced in terms of actual customer demand but still OEM's interest is superimposed on it and expects customer to jump their selected variants (this happens all the time).

So I am not saying that this practice is right, but its us the consumer who at some point gives in either by changing the variant or cancelling it and the OEM has a win-win for the product as well as profitability. [In push models the scenario is totally opposite]
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Old 15th February 2023, 11:01   #9
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

Are we certain Mahindra is doing this maliciously, and purely to make a profit?

Could it not be related to a component shortage? Maybe they don't have enough of the necessary parts to manufacture enough Z6 and Z8's. IF they have limited components available, then pushing the highest margin Z8L is just business 101.
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Old 15th February 2023, 13:17   #10
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

By business101 logic, the Z6 & Z8 deliveries will never ever happen!

Prioritization is alright if there is some light at the end of tunnel. For now, the tunnel seems to be 6-8 months longer, which to me, is grossly unfair. When everyone booked at the same time, any delay beyond a month or two over Z8L can only be attributed to malicious intent of not honoring the promise to customers.

I would rather not buy the car than give in to the tactics of OEM/Dealer, but then everyone has a different approach to life.

Last edited by Totoro11 : 15th February 2023 at 13:18. Reason: added text
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Old 15th February 2023, 14:39   #11
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

Quote:
Originally Posted by shankar.balan View Post

Really, this ought to have prompted Mahindra to buy Ford’s state of the art Sanand plant instead of letting the Tata Group snaffle it.

Mahindra ought to have pro-actively taken such a call, seeing the phenomenal response they got for the Thar in 2020 and XUV 700 in 2021.
You are assuming Ford would have wanted to sell the plant to Mahindra. It is quite possible that Ford may have decided to sell the factory to anybody but Mahindra, given the two aborted JVs, that either ended badly or were aborted midterm. From the people I know at Ford, they did not feel that got a fair deal out of the JV with Mahindra either time.
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Old 15th February 2023, 15:25   #12
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

Quote:
Originally Posted by 84.monsoon View Post
You are assuming Ford would have wanted to sell the plant to Mahindra.
Absolutely and undoubtedly this is a distinct possibility.
However, considering that Ford shut down their India operations because of the unprofitable nature of these operations, would they not have considered a fair offer? Assuming of course that Mahindra would have indeed made a fair offer. It is fair to assume that emotions would most likely be kept aside in favour of making a sound business decision.
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Old 15th February 2023, 16:53   #13
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

I do not think M&M cares about the emotions being articulated here. They have more than a lakh backorders of only Scorpio N's to fulfill and they will only seek to optimize their production planning to maximize the profit with the current capacity.

If they have a capacity of 10,000 Scorpio Ns to be produced per month, they would rather prefer all of them to be Z8Ls only since it is the variant with highest profit margin.

The lower variants will be produced more in number only when demand for Z8Ls go down. Period.

I keep telling this to myself: "Wait if you want the car, There are thousands waiting next in line to pick up the new car. There is absolutely no loss for M&M in any case".
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Old 15th February 2023, 17:44   #14
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

Post deleted by the Team-BHP Support. No need for such a rude or strong post please. Request to continue being polite, calm & respectful, even in debates.

STRICTLY no personal attacks on this forum.

Last edited by GTO : 16th February 2023 at 09:23.
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Old 15th February 2023, 18:05   #15
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Re: Mahindra ScorpioN Z2/Z6/Z8 - Unfair Marketing Strategy?

One common thing that unites all business is greed and nobody is a saint. Consumers be damned. They will produce the vehicles with highest margin. With the number of bookings people are making as if there is no tomorrow. Any manufacturer will only reap on this. Couple of my friends wanted to book Thar and XUV, i told them consider as a gift to your children when they turn 18.
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