
From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address effective May 25, 2007 : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: II

May 25, 2007

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Ringside is a report that provides an overview of happenings in categories of Cars, Computers, Food and Beverages, Alcohol, Financial Services, Real Estate, Athletic Shoes, Consumer Durables, Hotels, Airlines, Retail, Telecom Service Providers, Skin Care and Two-wheelers.

Each of these will have sections on 1. Sales and market share 2. Trends 3. Launches 4. Advertising campaigns

Navigation is easy. Simply click of any of the categories of interest to you and you will have the latest news in front of you. Ringside will come to you once a month.

Drop in a mail at pchandra@zenithoptimediaindia.com with your suggestions and comments.

Two-wheelers

Share Prices

NSE share prices as on May 15, 2007

Sales and Market Share

Source: Auto News Bulletin by Murad Baig Associates

249. Hero Honda FY07 Net Slips 12% Despite Sales Growth – May 12

Despite an increase in sales, profits for Hero Honda reduce by 12% in 2006-‘07

The net profit of Hero Honda dropped by 12% to Rs 857.9 crore in 2006-‘07 (from Rs 971.3 crore in 2005-‘06). However, its sales continued to grow at 13.8% to Rs 10,089.8 crore. According to company sources, the net profit was badly hit because of discounts, marketing spends (including Rs 20 to 22 crore on the World Cup), raw material costs and a product mix that is largely dependent on the economy segment.

Source: The Economic Times

Trends, Marketing Initiatives and Others

250. Bajaj To Offer 125 cc Bike At 100 cc Cost – May 04

Bajaj offers 125 cc bikes at the rate of 100 cc

Madhur Bajaj the Vice Chairperson of Bajaj Auto has announced that, before the end of the year, the company will offer its 125 cc motorbikes at the price of its 100 cc. It will launch new 125 cc bikes with some modifications, which will be the upgraded versions of the 100 cc bikes. The company's 125 cc motorbike is currently priced between Rs 45,000 to 46,000, while its 100 cc version costs Rs 33,000.

Source: The Economic Times

251. Bajaj Will Not Get Off 100cc – April 17

Bajaj to stay in the 100cc category

A few months back, Bajaj Auto had shocked the industry by announcing its exit from the 100cc category. According to Bajaj Auto G.M. Marketing Amit Nandi, “We are not getting out of the 100cc segment. Rajiv Bajaj’s statement has been misinterpreted. We will continue to sell 100cc bikes till there is demand”. The company aims to upgrade its customers with something better than what is being offered in the 100cc segment. By end-2007, it is also planning to launch a new motorcycle platform targeted at the market’s entry segment.

Source: The Economic Times

252. Heavyweight Bikes Queuing Up As Indian Roads Get Wider – April 16

Super bikes to enter the Indian market

The Indian government has allowed the import of bigger bikes, rupees nine lakh-plus motorcycles, with engine specifications of 800cc and above. Bike-makers Yamaha, Honda and Suzuki have already lined up plans to give competition to Harley Davidson, which will soon import its super-bikes in the country. According to industry sources, Japanese auto major Suzuki’s motorcycle division is likely to import two of its sports bikes by year end. One of them is likely to be the four- cylinder, liquid-cooled 16-valve GSX-R1000, which comes strapped with a 999-cc engine. The other Suzuki sports bike could be the 749-cc GSX-R750.

Source: The Economic Times

Product Launches

253. 125cc Kinetic SYM Scooter India Bound – May 14

Kinetic Honda, in collaboration with a Taiwan-based scooter giant Sanyang Industry Co (SYM), will launch Kinetic SYM scooter with four-stroke, single-cylinder 125cc engine by June 2007.

254. Kinetic, Sanyang Venture To Launch Scooterette In June – May 03

The first product of the alliance between Taiwanese two-wheeler major Sanyang Industry Co Ltd. and Kinetic Motor Co Ltd (KMCL) will be a scooterette manufactured at KMCL's plant at Pithampur in Madhya Pradesh. It will be launched in the Indian market in June.

255. Honda Plans Launch Of New Scooter, Motorcycle– April 30

New motorcycle and scooter to be launched by Honda

Chennai Honda Motorcycle and Scooter India Pvt Ltd (HMSI) has planned to launch a new scooter and motorcycle this fiscal year. The proposed motorcycle will be a limited edition moto GP version built on a 150 cc platform, and is likely to be priced close to Rs 75,000.

Advertising Campaigns

256. A Roadmap For Empowering Women – May 14

New TV commercials of YOSmart bikes aim to empower women

YOSmart bike by Indus, a division of Electrotherm, launched three TV commercials seeking to empower women to be independent now that they have the power of a YOSmart bike. All these three commercials talk from a different person’s viewpoint. In the first commercial ‘housewife’, a woman is shown using her YOSmart Bike to perform daily outdoor chores, such as picking up her kid from his theatre class or taking him to the beach or a movie. The ad concludes on ‘supers’ explaining the product’s features and a shot of the woman standing confidently next to her bike, thinking to herself, “Kyunki ab raasta hai mere paas”. The second and third commercials present a kid’s and mother-in law’s view point, respectively.

Source: Agency Faqs

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