A New Core Purpose: Expansion Gives Rise to Rebranding at Mahindra

Every year, Anand Mahindra, vice chairman and managing director of the US$7.1 billion Mahindra Group, holds a two-day blue-chip conference with his top executives. The team reviews the year gone by and sets targets for the future. For the most recent conference held in December last year, Mahindra flew 500 of his top executives to Kuala Lumpur, Malaysia. On the second day of the conference, he deviated from the usual agenda, screening a short film about how the Mahindra Foundation, along with group company Mahindra Consulting Engineers, reached out to the flood-ravaged Pattori village in Bihars Madhepura district in northern India in 2008 by building a new social infrastructure. They built an eco-friendly village and provided amenities like water supply, sanitation, solar lighting and disaster-resistant dwelling units.

The film had nothing to do with the various businesses of the group that range from automotive, farm equipment, aerospace and IT to retail and leisure holidays. But it was central to the conference. It represented Mahindras new vision for his team to be innovative and rise above the ordinary.

This vision has found expression through a new brand positioning and a new core purpose and tagline for the group Rise that was launched in January. The concept of Rise is built on three pillars: accepting no limits, alternative thinking and driving positive change. Rise means achieving world-class standards in everything we do, setting new benchmarks of excellence and conquering tough global markets, according to Mahindra.

He dismisses any suggestion that the Rise tagline and accompanying strategy is merely about image building. We are attempting to unify different businesses that share the Mahindra brand, and offer a compelling value proposition, he says. We felt the world was changing and we needed a platform to enthuse people to enable them to seize opportunities and fight challenges, adds Rajeev Dubey, president, group HR and after-market.

This is the groups first rebranding exercise in over a decade. A similar exercise was done 13 years ago to outline the conglomerates core values. At that time, the brand identity was about the celebration of being Indian. The idea was centered on the belief that Indians are second to none, and that through the quality, reliability and durability of Mahindras products and services, the group would prove that to the world. But in a changing world, with India strongly established in the global economy, and with the groups own businesses expanding to new sectors and new geographies, the conglomerates leaders felt that its central ideals needed to be redefined.

1. What are the chief elements of the strategy that Mahindra is pursuing? What are the dangers of having a broad/narrow a vision? (5 marks)

2. Is strategy well matched to market conditions in the food retailing industry? Give reasons for your answer (5 marks)

3. How well is Mahindra performing from a strategic perspective? Give reasons for your answer (6 marks)

4. What recommendations would you make to Mahindra regarding the actions that management needs to take to sustain the companys growth and financial performance? (8 marks)

5. What are strengths and weaknesses? How can we identify competitive strengths and weaknesses? What are some of the essential characteristics of strengths to sustain competitive advantage? What are opportunities and threats? (8 marks)

6. As part of the executive team, you have been charged to create a new vision and mission around the new core purpose Rise. Create a new vision and mission that you could propose to the Vice President. (6 marks)

7. Mahindra has been doing well in the market. Do you agree with the team members that rebranding is not essential at this time? Give reasons for your answer. (7 marks)