4P’s for Mahindra Reva

Product:

Electric Car with zero emissions. A small car easy to maneuver in heavy traffic. Perfectly safe to drive. Novel and different Design then conventional fuel vehicles.

Place:

Available in selected cities in India. (only 9). Good presence in abroad.(European Markets).

Price:

Mahindra should use a penetrating price strategy rather than skimming. Price of the product is 3.36 Lacs to 3.85 Lacs. Running cost of the product is very low as compared to fuel cars.

Promotions:

Reva needs extensive sales promotions especially in metros. The launch of a four seater reva to be promoted rigorously through

movies, and other forms of mass media.

SWOT Analysis:

Strengths of Mahindra Reva Mahindra is an established brand in Indian market as well as

European Markets and enjoys a good brand equity. Mahindra already has an electric scooter in its portfolio and

planning to launch an electric truck. Very Good market presence across all the sectors. Low running cost. Highly efficient supply chain.

Weakness

Low market presence of Reva. Lack of dealers in India. Ill promoted product. Cannot run beyond 45KMPH and cannot go beyond 80 KM in one

charge. Requires 8 hours to get completely charged. Cannot accommodate more than 2 adults and two children at a

time. Li ion Battery is very expensive.

Opportunities

First mover advantage. Market of EV is expected to grow @ 20-25% as predicted by

industry experts. Govt. gives subsidy @ 75000/- on EV and hybrid vehicles. A lot of export potential. Export Market is expected to be 1.5-2

million by 2020 and Indian market to be 80000. An established player in European market across 24 countries.

Currently having the biggest fleet on road (3500 vehicles). Fuel prices have grown from 8.50 to 67.00 since 1989 to 2011 and

are expected to grow only.

Threats:

Mitsubishi and Hero electric also planning to enter the EV markets. Stiff competition from cheap conventional fuel cars.

STP for Mahindra Reva

Segmentation: Based on daily running, based on affordability, based on usage.

Target customer : middle class, people staying in metros and traveling 50 Kms per day. Govt. places such as green zones. Running cost conscious consumers.

Positioning: Highly fuel efficient car. Per KM cost is Rs .30-.40 .Whereas for Nano it is around Rs.2.91.Even for CNG it is Rs. 1-Rs.1.20.CNG availability is also an issue. Mahindra is a trusted brand in Indian Market. No other competetior currently in market.

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