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Question 123

1. Mahindra operated in many diverse business segments which made its brand positioning unclear. It needed a brand architecture that better represented its breadth while maintaining a cohesive identity. 2. The analysis found Mahindra's business units acted autonomously without integration, confusing customers. A new architecture was needed to better align the units under a single Mahindra brand. 3. The recommended solutions were: a) conglomerate approach keeping Mahindra as a holding brand; b) focused approach using Mahindra as a master brand and reducing other brands; or c) federal structure maintaining autonomy. A focused approach would give flexibility

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242 views4 pages

Question 123

1. Mahindra operated in many diverse business segments which made its brand positioning unclear. It needed a brand architecture that better represented its breadth while maintaining a cohesive identity. 2. The analysis found Mahindra's business units acted autonomously without integration, confusing customers. A new architecture was needed to better align the units under a single Mahindra brand. 3. The recommended solutions were: a) conglomerate approach keeping Mahindra as a holding brand; b) focused approach using Mahindra as a master brand and reducing other brands; or c) federal structure maintaining autonomy. A focused approach would give flexibility

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moonmoon
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Case Assignment

On

Mahindra Rise: A Brand Architecture Decision

Course: Brand Management Faculty-in-charge: Prof. Bhimrao Ghodeswar

Term V

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

Submitted By:

Group No.6

Section B

1. Abhinav Poddar 17PGP004

2. Kavya B.T 17PGP068

3. Moon Moon Tiga 17PGP078

4. Shakti Mishra 17PGP129


1. What are the key challenges faced by Brand Mahindra that made the organization rethink its
brand positioning and brand architecture?

Mahindra operates in agribusiness, aerospace, consulting services, components, energy,


defense, financial services, industrial equipment, logistics, real estate, retail, steel and two-
wheeler spaces.

The change in brand architecture was the culmination of two needs that led to the decision -- a
utilitarian need and an aesthetic need. "Mahindra is not just into manufacturing but also
services and trading. It's not just Indian, but global in its reach. And, from a geographical
perspective, we have products for rural as well as urban India. When a group has a common
identity appealing to so many different segments, consumers as well as businesses, it needs a
brand architecture and visual identity which will encompass the group's distinct segments,
products, services and geographies."

To explain the aesthetic need for this change, "Every decade or so large groups need to refresh
their visual identity (word mark and logo) to give their business outreach programmers,
consumer connect and branding/marketing/sales efforts a new impetus."

"Rise was of more fundamental and strategic importance than just 'a campaign'. Spark the Rise
and now this new visual identity are all part of the effort to build brand Mahindra as a global
brand."

2. What is meant by brand architecture? What were the key weaknesses of brand architecture at
Mahindra?

A good brand architecture is a clearly defined configuration of services or products. Effective


brand architecture can enable you to:
 Target the needs of specific customer segments
Brand architecture enables you to segment your messaging and services so that each of your
target audiences hears what they want to hear and gets precisely what they’re looking for.
 Significantly reduce marketing costs
When brands and sub-brands are architected in a logical, intuitive way, your marketing efforts
are exponentially more efficient. With opportunities for cross-promotion between sub-brands,
marketing is more effective as well.
 Clarify brand positioning, naming, and messaging
Nothing increases the efficacy of your brand positioning like clarity. Clearly articulating the
names of your sub-brands and the messaging they have for your customers is like giving your
brand a high-performance tune-up.
 Increase flexibility for future product and service expansion
By establishing an intuitive brand architecture, you set the stage to easily add products or
services as your brand grows. Your brand becomes a modular entity primed for the addition of
new sub-brands.
 Bolster confidence among stakeholders in the strategic direction of your brand
A brand with well-defined brand architecture is a brand that’s thinking about future growth. And
future-minded brands are a reassuring sign for investors and employees alike.
 Ensure clarity and synergy between companies, divisions, products, and services
Even the smallest brand is a complex entity. Not until the various components that make up that
entity are clearly defined and understood, can they work together, efficiently and effectively,
toward a common goal.
 Enhance customer awareness of your offerings while facilitating cross-selling
When divisions or sub-brands are clearly delineated, customers can understand their unique
value propositions. Plus, a customer of one sub-brand is more easily converted to a customer of
another sub-brand than a cold customer with no history.
 Maximize visibility diversification in the marketplace
When a brand’s various divisions are not clearly delineated, they must rely on the parent brand
to capture the attention of the marketplace. Brand architecture gives a parent brand the power
of diversification by highlighting the unique strengths of its distinct sub-brands.
 Build and protecting brand equity
The upshot of all of the benefits above is the most valuable asset for any company: brand
equity. Growing your brand equity gives you compound returns as industry authority and
marketplace valuation grow with it.
Weakness of Mahindra brad architecture;
 M&M had never communicated through a single brand umbrella across its segments
such as aerospace, automotive, farm equipment, IT and logistics.
 The need for one brand voice spanning geographies was evident in capturing global
markets.
 M&M was not well known at global level and Indian markets are becoming Very
Competitive Taken steps to Penetrate Globally, M&M was not able to communicate its
message clearly in the market
 Every SBU’s has their own Mission, but has whole there is no Vision
 Value, positioning, trust and viable business model Reasons was lacking in the brand
architecture

3. What are the key takeaways from the analysis conducted by Landor for designing a brand
architecture solution?

The key takeaways from the analysis conducted by Landor for designing a brand architecture
solution are as follows:

a) The analysis conducted by Landor showed that the autonomous business units had a strong
sense of self but no internal meeting and hence lacked integration with the core brand.
Therefore the business units were needed to be aligned in a way that would use the brand name
Mahindra in a much integrated way which would bind the business units as one.
b) Due to lack of distinction in the use of Mahindra brand by different business units, products and
services the customers were unable to have a clear picture of the actual brand. The different
business units needed to use the brand in a way which would give customers the message that
the business units are all a part of the major brand “Mahindra”.
c) Due to Mahindra following a federal structure, the business units were decentralized and some
were entrepreneurial while others were process oriented, this variation posed a challenge in the
implementation of new brand architecture. The organizational structure required a centralized
approach to eliminate the chances of variation.
d) The Brand stretch of Mahindra had to be thought about carefully as to whether and how would
the international markets use the brand stretch for success.
e) In case of Mahindra’s decision to follow a conglomerate approach the Mahindra brand would be
reserved as a corporate holding brand and rise as a corporate position which will lead Mahindra
brands to be created in each individual business without mention of Mahindra.
f) Mahindra could use a focused approach which would give Mahindra the flexibility of brand
architecture design by using Mahindra brand as a master brand and in the case of other
businesses the use of corporate brand could be reduced or eliminated.

4. What are the possible brand architecture solutions? Evaluate the pros and cons of each of the
three options given to Mahindra.

5. What brand architecture would you recommend for Mahindra? Why?

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