Mahindra USA Featured as a Case Study at Dartmouth CollegeFebruary 14, 2013
Successful Reverse Innovation Strategy Explored At Tuck Executive Education
HOUSTON, TX (February 14, 2013) – Mahindra USA, the number one selling tractor brand in the world based on volume, is now showcased at Tuck Executive Education as a case study on successfully implementing reverse innovation. Mahindra USA (MUSA) entered the U.S. tractor market in 1994 and proceeded to establish itself as a successful niche player using innovative marketing and sales strategies.
Mahnidra USA’s successful entry into the U.S. marketplace from an emerging market is featured by Vijay Govindrajan, Professor at the Tuck School of Business at Dartmouth College, USA in his book, Reverse Innovation: Create Far from Home, Win Everywhere (jointly written with Chris Trimble well-known innovation speaker and consultant and also on the faculty at Tuck) which profiles companies that have pioneered Reverse Innovation.
“Leveraging a great product in a new market required a thoughtful and deliberate strategy to encourage trial and capture mindshare with both dealers and customers,” said Mani Iyer, President of Mahindra USA. “Staying true to our Rise philosophy and core values has led Mahindra to an industry-leading 97 percent customer satisfaction and 98 percent brand loyalty.”
“The Mahindra USA case study is one of the excellent examples whereby senior leaders at our Executive Program can understand the challenges as well as the frustrations they will face on the road to innovation, said Prof. Govindrajan. “The Mahindra USA story shows executives that in the pursuit of reverse innovation’s rewards, one can be both disciplined and flexible.”
Rather than trying to develop a product that could compete with bigger brands, MUSA targeted a smaller agricultural niche, hobby farmers, landscapers, and building contractors. This strategy, coupled with personalized service, building close relationships with dealers, customers and the community at large, proved highly effective. MUSA’s sales grew an average of 40 percent per year from 1999 to 2006.
“At the heart of our success is Mahindra’s dealer-first, customer-focused strategy. Our customers are now our biggest advocates, helping to build the brand to become a premier player in North America,” said Cleo Franklin, Vice-President, Marketing and Strategic Planning. Hi Allis Prof. Govindrajan defines reverse innovation as “any innovation that is adopted first in the developing world.” This is contrary to the dominant innovation pattern which dictates that innovations typically originate in rich and developed countries and later flow downhill to the developing world. Prof. Govindrajan describes Mahindra as one of several “emerging giants, the rising generation of multinationals headquartered in the developing world.
Mahindra “Rise” is a culture and philosophy of Accepting No Limits, Driving Positive Change and Alternative Thinking.
Mahindra became the #1 selling tractor brand in the world in 2010 by providing consumers with value-packed, high-quality tractors. Mahindra is the only tractor manufacturer in the world to win both the Deming Application Prize and the coveted Japan Quality Medal for excellence in Total Quality Management, awarded by the Deming Prize Committee care of the Union of Japanese Scientists.
About Mahindra USA
Mahindra USA (MUSA) is part of the US $ 15.9 billion Mahindra Group’s Automotive and Farm Sector – the #1 selling tractor company in the world, based on volumes and the only tractor manufacturer in the world to win the industry’s top two quality awards – the Deming Application Prize and the Japan Quality Medal, care of Union of Japanese Scientists and Engineers.
Houston, Texas based Mahindra USA (MUSA) is a wholly owned subsidiary of Mahindra & Mahindra Ltd. and began selling tractors in the USA in 1994. MUSA has since grown rapidly due to high customer satisfaction levels and strong customer referrals. Mahindra USA has three distribution points in the USA to help meet the needs of its customers and the growing demand for its products.
Mahindra’s professional-grade tractors range from 22 HP – 100 HP – and include the revolutionary new Max series tractors. The Mahindra Max 22 and Max 25 are the first real tractors in the sub-compact market and feature true tractor performance and capabilities. The Mahindra Max 22 and Max 25 are joined by the industry’s first mid-compact tractor, the Mahindra Max 28 XL, which has compact tractor performance and versatility in a near compact tractor size. All Mahindra Tractors are built with heavy-duty components that allow them to outperform other tractors in their class and are designed to provide consumers with the ability to push more, pull more and lift more, so they can do more, in less time. To learn more about Mahindra USA’s Farm Equipment Sector, please visit www.mahindrausa.com.
About The Mahindra Group
The Mahindra Group focuses on enabling people to rise. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership. Mahindra has a presence in the automotive industry, agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheelers.
A US $15.9 billion multinational group based in Mumbai, India, Mahindra employs more than 155,000 people in over 100 countries.
In 2011, Mahindra was featured on the Forbes Global 2000 list, a listing of the biggest and most powerful listed companies in the world. Also that same year, Mahindra acquired a majority stake in Korea’s SsangYong Motor Company.
In 2010, Mahindra was featured in the Credit Suisse Great Brands of Tomorrow.
Its flagship company Mahindra & Mahindra Limited is the only Indian automobile manufacturer to be featured in the Top 10 list of the Carbon Disclosure Leadership Index in India 2010, created by the Carbon Disclosure Project (CDP).
For further information, please visit www.mahindra.com