mark-avenue feb 2011 edition
DESCRIPTION
The monthly newsletter from Mercur-I, the Marketing Club of IIM IndoreTRANSCRIPT
next three years. What does this
imply? – Marketing money will
now move closer to point of pur-
chase than traditional media such
as TV and newspapers.
Earlier supermarkets had a belief
that customers‟ relationship is with
store and not manufacturers but a
reversal in trend is going to be the
next wave in which retailers will
lose control. Today, customer
walks into the store to make a pur-
chase only after using the Internet
to research about the brand they
want to buy. Hence the power is
shifting to brands which can play a
crucial role in influencing purchase
decisions. Having said that – the
objective here should be to "build a
relationship with customer so that
they take that relationship into the
stores and manufactures don't have
to work as hard to win in that mo-
ment when they're at the shelf."
As the markets become mature and
competitive, consumer product
companies are not seeing the ex-
pected lift in sales from their tradi-
tional advertising and promotional
expenditures. Shopper marketing
is the new way in which retailer
and manufacturer work together to
attract shoppers.
The moment you enter into a su-
permarket, 5,000 items start clam-
oring in your face to grab your, ever
so important, share-of-mind. And
then you also find promotion flyers
in the store – “buy one get 30%
off, buy two get 50% off” – influ-
encing your purchase decisions.
While shoppers might not put too
much thought behind those pur-
chases, creating campaigns that
capture shoppers‟ attention and
subsequently influence their pur-
chasing decision is a serious busi-
ness for retailers and manufactur-
ers. In recent times, companies
have been spending their energies
and money on what they call
“shopper” marketing.
Shopper marketing is gaining
popularity as stores and consumer
goods manufacturers seek a way to
capture the attention of a con-
sumer whose spending is increas-
ingly siphoned off by websites and
other media. Though businesses
believe in the purpose of this con-
cept, they are not fully convinced of
the definition – a few burning
questions: Is it about in-store\out-
of-store deals? Does this take into
account what a customer feel be-
fore entering into the store, or
merely what s/he sees on the store
shelf? Experts from industry and
from marketing research compa-
nies have a divergent view on this.
While experts from research agen-
cies believe that it is simply a recy-
cled consumer marketing with a
„shopper‟ name put on it, experts
from industry believe that Shopper
marketing is bigger than customer
marketing because it takes into
account what customer is thinking
when s/he is outside the store and
not planning an immediate pur-
chase. Tommy Hillman, a market-
ing manager at General Mills, put
forth an explanation that includes
working closely with retailers "to
help them win their share of wallet,
aligning with their programs, offer-
ing solutions that are going to ulti-
mately benefit them the most."
But roadblocks remain for success-
ful shopper marketing; it is difficult
to change the habits of grocers. The
amount of shelf space allotted to a
product depends upon the trade
allowance and promotions for that
product. Grocers‟ merchandising
department doesn‟t work along
with the manufacturers‟ marketing
and sales team. For a successful
shopper marketing, grocers and
manufacturers have to collaborate
more effectively. According to a
study by Grocery Manufacturers
Association and Booz & Co., 83% of
food, beverage, health and beauty
and household product manufac-
turers said they plan to spend more
on shopper marketing over the
‘Shopper’ Marketing: New game for retailers and manufacturers
-Nikhil Gupta
Inside this issue:
Article—”Shopper”
Marketing 1
Article—Rebranding
of ‘Kizashi’ - The Ma-
ruti Suzuki way
2
Article—Small Busi-
nesses??? - Branding
basics are here...
3
Article—Great Indian
Noodle Market
Growth Story
3
Article—Getting
Started with MAR-
KETING
4
Article—Harley
Davidson—Do they
sell ‘bikes’?
5
by Mercur-I
Mark-Avenue
February 2011
“Consumers will no longer see purchasing goods
online, via mobile phones or from retail stores as
three different activities”
The Japanese word "Kizashi"
means "something great is com-
ing". Maruti Suzuki India Ltd.
(MSIL) must be hoping its newest
luxury sedan of the same name
(launched in India in February
2011) lives up to that promise. But
there are many who question the
viability and even success of the
company's foray into the larger
luxury segment. What‟s our take on
this?
What comes to your mind first
when you come across the term
„MARUTI SUZUKI‟? It always ab-
solutely has to be a Maruti 800,
best known as „The Middle class car
of India, or an Alto, Wagon R
among many others. MSIL rules
the small car market in the country.
MARUTI as a brand itself is seldom
looked at, as a luxury brand. It is
more linked with the middle socio-
economic class and over past many
years Maruti has maintained & up
to an extent restricted its Target
Market to the same. Maruti Suzuki
brand is seen as most trusted &
relatively economic brand. The
luxury sedan segment represents
just 1% of the total Indian car mar-
ket and has grown 53 per cent in
the first three quarters of this fi-
nancial year to 13,838 units.
As per Mr. Shashank Srivastava,
CMO - MSIL , "We are putting
together a direct selling team dedi-
cated to Kizashi. We would spread
awareness through a 360 degree
promotional campaign with em-
phasis on digital activities to cater
to specific consumer groups."
(a) „Way of Life' has replaced
'Count on Us' as the tagline of the
mother brand Maruti Suzuki. „Way
of life‟, Maruti hopes, would open
up products for consumers across
segment, whether she is a buyer of
Wagon R looking for safety and
reliability while making her pur-
chase decision or a customer for
Kizashi opting for sophistication
and finesse.
(b) MSIL has indicated a change in
its car distribution strategy in the
country. It plans to set a network of
as many as 20 plush outlets across
the metros. Until recently, the
company‟s presence was limited to
highly populated city areas with
high footfall of buyers of mass-
segment cars such as Alto, Swift
and Dzire mostly through private
franchisees. But for the luxury car
segment, MSIL found it pragmatic
to have its own presence in all
major metros, so that it could focus
more on post-sales service in a
better way.
(c) MSIL has set up a website
(www.kizashikicks.com) with vid-
eos, car comparisons and all the
data you‟d ever want to know about
Kizashi. Applications and adver-
tisements in this web-site feature
the Kizashi head to head against
the luxury sport sedan rivals.
But our question still remains
-Will Kizashi find space on
Indian roads?
(a) The unsocial people: The
daggers are already out on social
networking sites against „Kizashi‟ .
Netizens are finding it a little diffi-
cult to believe that Maruti Suzuki‟s
latest offering in India is a luxury
car. They are not sure if one will
spend Rs 17 lakh to have a Maruti
branded car. “Imagine you have
spent 17 lakhs on a car and then
you see big 'M' on the grill,” tweets
Saurabh. These Tweets somewhat
sum up the sentiment of consum-
ers and the marketing experts.
(b) The bumpy road: Customer
acceptability would be the biggest
hurdle for Kizashi. “Luxury car is
all about prestige, social status and
personal esteem, which brand
Maruti may not be able to deliver.
(c) Right Target Segment: Well
established Japanese rivals, Toyota
& Honda, and the European car-
makers, who have carved a niche
with strong brands like Mercedes
and BMW will make it more chal-
lenging for Kizashi to find its own
place. Maruti will have a tough
time shaking off the „every Indian‟s
car-maker‟ image. Experts believe,
“The Target Segment for the luxury
segment goes for the „status‟ factor
and Maruti as of now fails on that
front.”
Shashank Srivastava, wards off
such skepticism, as he feels that
similar doubts were raised when
Maruti had entered the A2 segment
with Ritz and Swift, and then in to
the A3 segment with DZire. “But
we not only performed in those
new segments, we are also market
leaders,” he says, adding, “we have
now entered the A4 segment with
Kizashi and we look to capture fair
market share in this segment too.
Maruti can excel on its brand
promise and values”.
Let’s see how Kizashi fares in
the Indian market…… Amen!
Two shoe salespeople were sent to
Africa to open up new markets.
Three days after arriving, one
salesperson called the office and
said, "I'm returning on the next
flight. Can't sell shoes here.
Everybody goes barefoot."
At the same time the other
salesperson sent an email to the
factory, telling "The prospects are
unlimited. Nobody wears shoes
here!"
Rebranding of ‘Kizashi’ - The Maruti Suzuki way
- Shashank Verma
Page 2 Mark-Avenue
Marketing Two-Upmanship
A salesman was demonstrating
unbreakable combs in a department
store. He was impressing the people
who stopped by to look by putting
the comb through all sorts of torture
and stress.
Finally to impress even the skeptics
in the crowd, he bent the comb
completely in half, and it snapped
with a loud crack. Without missing
a beat, he bravely held up both
halves of the 'unbreakable' comb for
everyone to see and said, "And this,
ladies and gentlemen, is what an
unbreakable comb looks like on the
inside."
MSIL’s biggest challenge is to change the
brand perception of the consumers.
In most of the marketing literature,
strategies for branding are targeted
towards large organization. The
highly noted terms brand promo-
tion, brand management and
brand equity might create an im-
pression that branding is meant for
big players.
Organizations seek a long term
strategy when marketing their
product. They need to target and
position rather than being a ge-
neric product. Branding is done to
differentiate the products by the
company name which should be
considered as brand. For example,
if you produce and supply un-
branded salt to retail outlets, then
your company name will act as a
brand. The corporate brand where
the sales and transactions happen
will identify your product. Well,
one of the most important advan-
tages is that brands help to identify
and distinguish the seller. Even
while selling commodities, the
buyer needs to identify the seller
and developing a corporate brand
that helps in getting repeat busi-
ness from the customer.
Let‟s get it straight! The first step
in creating effective brand is to
make conscious decision about the
spending. The investment to create
individual brand name or corpo-
rate name will bring a huge change
towards success. Branding over the
years will create brand personality
and hence the investment is a long
term strategy.
It’s not about money, Folks!
It‟s the level of involvement and
the precise decision to be taken by
the marketer for
the brand con-
sciously. Though
the small players
might have the
budget constraint,
even small steps
now will go a long
way in establishing
a powerful brand
in the future. It is
possible for small enterprises to
build powerful brand through a
consistent investment in smart
branding practices. This budget
shall be a systematic investment
rather to see it as an expense.
March Ahead! After the decision
is made to build a brand, next is to
develop powerful brand elements.
Brand elements include name,
logo, symbols, mascots, color
schemes, taglines etc. These brand
elements should be prominently
displayed in every communication
that goes out from the firm be it
visiting cards, gifts, brochures etc.
Foremost thing is to protect our
vital assets like Brand Name, Logo,
etc. This is very important to pre-
vent plagiarism and copy cats.
What about Promotion? The
ubiquity of media has given huge
number of low cost promotional
opportunities espe-
cially for small
brands. Basic rule, as
the competition in-
crease the rates go
down, Isn‟t it? Well,
media has kept the
low advertising rates
for second string
media. Small brands
can utilize the re-
gional media options in a much
more effective way than large
brands operating in a national
scale. Local newspapers, radio
stations, cable TV channels offer
excellent cost-effective path for
small brand promotions. Initially,
we can‟t expect a substantial ROI
through these low cost media pro-
motions or a significant impact in
sales. In the long term, such small
media exposure will reap, thereby
increasing the visibility of the
brand. For the corporate brands,
Page 3 Mark-Avenue
which operate in a B2B environ-
ment, should handle differently.
Not to forget the sales profession-
als are the biggest promoters of
the brand. It is important for small
businesses to ensure that the sales
force is communicating the right
kind of message to the customer.
To increase the visibility there are
communication materials like
brochures, pamphlets etc and
these materials offer some amount
of information about the company
and products. When endeavoring
to brand development, these mate-
rials are of immense value. In
general it is observed that these
communication materials are not
used as a branding tool but just
serve as a product catalogue.
Do you think brand building is
expensive? Not exactly, brands are
built over time systematically and
through consistent investment
plan. The ever growing environ-
ment has given us enough cost
effective promotional options
which should be identified by the
small players to build their brands.
Small Businesses??? - Branding basics are here...
- Harish Kumar Raju
The Great Indian Noodle Market growth story! - Kiran Krishnan
Knowingly or unknowingly we are
also contributing to the great In-
dian noodle market growth story.
The influence of Pi shop and our
own “mess” in creating an appetite
amongst us in consuming one of
the fastest growing instant food
products in India is truly com-
mendable (no pun intended). For
many of us, instant noodles have
become a way of life..! Err.. At least
a part of our life..! J
Noodles entered India in the early
90s when Nestle was brave enough
to introduce Maggi whereas other
major players like HUL, ITC etc
were observing how nestle was
going to go about changing the
tastes of Indian consumers. Maggi
was predominantly targeted at the
children and as an easy way out for
mothers who just need to spend 2
minutes for
feeding their
children! But
a s t i m e
passed by, it
started tar-
geting the
youth as well
as the work-
ing class persons in urban India.
According to the current market
estimates, the instant noodle mar-
ket in India is worth over Rs 1,300-
crore ($260 million) and is grow-
ing at a phenomenal rate of over 17
-20% per year. The market until
lately was of monopolistic nature
with only one player Nestle India
Ltd which had a
market share of 90+.
However recent
reports suggest that,
on an all-India basis
across urban mar-
kets, Maggi has been
steadily losing mar-
ket share to the new
entrants. From a 90.7% market
share in December 2009, Maggi
slipped to 86.5% in July 2010. This
can be attributed to the avalanche
of product launches in this seg-
ment by other main FMCG players
like GSK, HUL, ITC etc. These 3
new entrants have thrown their
hats into the ring over the last one
year withHorlicks Foodles, Knorr
Soupy Noodles and Sunfeast Yip-
peerespectively. And as per the
current trends, Maggi is more
likely to have lost more market
share after the last released statis-
tics on their market share.
Apart from HUL and GSK which
have positioned their noodles as
„healthy‟ snacking options target-
ing kids and mothers, others like
Indo-Nissin‟s Top Ramen, Capital
Foods‟ Ching‟s Secret and CG
Foods‟s Wai-Wai , though around
for long, are stepping up market-
ing efforts to take advantage of
category growth. Besides, private
brands like Big Bazaar‟s Tasty
Treat and Aditya Birla Retail‟s
Feasters are notching up share.
GSK is piggybacking on the brand
equity of Horlicks as well as its
strong distribution system to make
a dent in the market share of
Maggi. Foodles, a new instant
noodle brand was launched in late
2010, focussing on health issues,
with the tagline, 'Noodles without
the No'. Market reports points out
to the fact that the initial response
to Foodles was much higher than
GSK‟s expectations.
On the other hand, HUL is using
the strength of its Knorr brand --
already popular for its soups range
-- to muscle its way into the instant
noodles category. Insider sources
in HUL were even reported saying
that the top management were very
pleased with the performance of
Knorr Soupy noodles.
Tasty Treatwas the second biggest
instant noodles brand in its Big
Bazaar stores after Maggi. The
brand packaging was
revamped last year and
Future plans to roll out
additional variants in a
month‟s time taking the
number of variants to
nine from the existing
three.
Most of these new en-
trants are trying to
target the health con-
scious Indian youth by offering
healthy snacking options to stay
abreast of changing consumer
psychographics. The best example
is the launch of whole wheat Atta
Maggi, a variant to avert health
conscious mothers from switching
brands or even giving up the pur-
chase of noodles altogether in fa-
vour of healthier food choices for
their kids.
Key Buying Factors
These launches represent a smart
move by manufacturers to capital-
ize on the fundamental
shifts in socio-economic
patterns of the Indian
society, rather than a
„me-too‟ strategy. The
manufacturers are
trying to tap the poten-
tial, this change has to
offer.
Some of the chief rea-
sons responsible for
this explosive growth include:
1. Lack of time amongst the
youth coupled with the rela-
tive ease with which you can
prepare noodles
2. Instant noodles are perfect
for on the go consumption
3. Rise in the no of working
professionals living away
from parents.
4. Increasing employment of
Page 4 Mark-Avenue
women in the workforce has
led to a manifold increase in
households with no parents
at home to act as caretakers.
5. Indian consumers are more
amenable to changing their
eating habits and far more
demanding of more choices
now than he or she ever was
before.
6. Other reasons can be clus-
tered as country's young
demographic profile, increas-
ing family income, accelerat-
ing urbanization, global
travel, increasing exposure to
global cuisine and so on
Thus, to sum up, the competition
in this space is set to sizzle while
providing diverse consumer seg-
ments with an ever-increasing set
of options to suit their unique
preferences. So the next time you
enjoy your cup of noodles, remem-
ber to take a note as in to which
company‟s market share you are
contributing your money..!!
Getting Started with MARKETING - Kumar Vaibhav
Guerrilla Marketing
Guerrilla marketing is unconven-
tional, non-traditional, not by-the-
book, and extremely flexible means
of marketing. Some factors make it
different from old-fashioned mar-
keting
1. It‟s more about relationship
building rather than sales, for
long-term relationships are
paramount
2. Guerrillas strive to aim mar-
keting messages to individu-
als, not to groups
3. All guerrilla marketing is
intentional and direct and
meant to create an impact in
minds of customers
4. It uses psychology and basic
human behavior to make a
relationship
5. It is about giving customer an
experience and feel of the
product which result in in-
crease in brand awareness
The heart of guerrilla marketing
lies in having a plan which can help
you relate to your customers
through common sense and realis-
tic expectations .It is very effective
way of building relationships with
your potential customers and also
a great way to make people aware
about your products or company as
a whole. Guerrilla marketing keeps
the things very simple so that cus-
tomer is able to get most out of the
campaign and there is no doubt
about anything
Ambush Marketing
Ambush marketing is an act
whereby another company, often a
competitor, try to capture upon
public attention relating to some
event, thereby deflecting attention
towards itself and away from the
sponsor.
Often classified as a form of
“guerrilla” marketing, the term was
coined by Jerry Welsh, the origina-
tor of cause-related marketing
when he was at the American Ex-
press.
Although marketing is something
which is perfectly legal but it hurts
on legitimate sponsors badly, their
claims often provide no basis for
legal action. Marketers are often
concerned about ambushing be-
cause any
loopholes
can result
in giving
opportu-
nities to
competi-
tors who
are always
ready to
take on such opportunities with
both hands.
One such incident happened in
1996 Cricket World Cup. Coca-Cola
was the official sponsor and paid a
whooping amount for the rights so
they were Official partner of the
cricket world cup 1996 but PepsiCo
cheekily stole all the limelight with
its „Nothing official about it‟ cam-
paign.
Recently P&G launched marketing
campaign in Mumbai to launch
their new variants of Pantene
Shampoo so they came with the
huge outdoor hoardings all over in
Mumbai stating „A Mystery Sham-
poo!! 80% women say is better
t h a n
anything
e l s e ‟ .
This was
done to
c r e a t e
hype and
a n x i e t y
a m o n g
the peo-
ple about the brand which was to
be launched in some time
When the suits at HUL found out,
they saw an opportunity to score a
point. They ambushed P&G and
Mumbai woke up to another
hoarding that was upfront, and
suggestive of its source of inspira-
tion. It said: „There is no mystery.
Dove is the No.1 shampoo‟ It was
too open to attack, and Dove took
the bold step and stepped in.
cess of HD can be attributed pri-
marily to these strong relationships
that the company decided to build
with its customers, offering them
more than just a bike. This only
objective has enabled Harley-
Davidson to take its brand beyond
simple ‟success‟ and turn it into a
Cult Brand. Increase in HOG mem-
bership base to 450,000 today,
from around 73,000 members in
1987 just shows that.
A short flash-back
Harley-Davidson Motor Company
began with William Harley and the
Davidson Brothers in 1903 with
their first prototype of an engine
designed to assist a bicycle. Within
a few years, they had produced
their first trademark two cylinder,
the V twin engine. By mid 1920s,
HD was the largest motorcycle
manufacturer in the world and
became to be known for its modern
design, the “teardrop” gas tank and
front brake. Soon, they produced
new models to address the demand
of a new market that consisted of
recreational consumers with
money to spend. In the 1970s, HD
was in ailing situation with the
competition from Japanese bikes.
The company made a great come-
back in the 1980s with the help of a
tariff on imports and its new plan
to restructure. By 1987, Harley-
Davidson owned about 25% of the
“What a weird question it is? How
are you living under sun without
knowing about the Cult-brand!”
This must be the first thought
which came to your mind when
you read the title of this article.
You‟re right! But they don‟t “just”
sell bikes; instead they sell “Harley
Experience”. Brush through the
rest of the article to know how?
Imagine yourself to be looking
casually through the window of an
apartment, across the cross-roads
in Milwaukee, USA on the sunny
day of June 13, 1998. You can‟t
believe your eyes. And in the frac-
tion of a second, you can‟t even
believe your ears. You hear a
sound, thump, thump, thump.
Thousands of Harley bikers, riding
on their beasts appear like they‟re
invading the city. On the street,
50,000 proud Harleys roar
through the city. Can you believe,
among those riders are senior
executives, CEOs and many famous
people? That was the 95th birthday
of Harley and over 125,000 people
attended the „Come Home‟ rally.
And in 2008, on 105th anniver-
sary, only 75,000 riders were cho-
sen out of 150,000 riders who
registered. The city was flooded
with 500,000 HOG members dur-
ing 2008 rally.
Confused what is „HOG‟? That is
the acronym for Harley Owners
Group. The HOG was created as a
tool to strengthen relationships
between customers, dealers and
employees and also as a tool to
allure the potential buyers. The
company sponsored rallies and
gatherings wherein Harley owners
could participate, share experi-
ences and people not owning
Harley could try the bikes out.
Th e se pro mo tiona l even ts
strengthened the community, gave
the owners a sense of belonging
and pride. The company also or-
ganized campaigns like Super Ride
in 1983, where people were invited
to test ride the bikes and about
40,000 prospective customers
accepted the invitation. The suc-
Do they sell ‘bikes’? - Srinath Akula
heavyweight motorcycle market.
Marketing Strategy
Though you might criticize me of
being bookish, I can‟t resist speak-
ing about the 4Ps we learned in the
two marketing papers. There is no
single P of the marketing 4Ps,
which was given lesser importance
by HD. Let‟s look at the people
they aimed; in marketing words,
the Target Segment. In the mid
1980s, HD targeted the riders in
the young adult age range. But
during 1996, they started to redi-
rect their marketing efforts to-
wards targeting motorcycle riders
in the middle age (40-60 years old)
and old age (60+ years old) ranges.
As a result of this, there was a 40%
increase in sales. Let me get more
technical from here.
Product they offer
They just didn‟t confine to bikes.
Their product lines include many
products like helmets, gloves, eye-
wear, jackets, belts, tee shirts,
jeans, boots, bags, jewelry, wallets,
key chains, caps, lounge wear, and
home collectables. All of these
complimentary products help com-
plete the image of the cult. Comes
with Harley-Davidson a 2 year/
unlimited mile warranty, after sale
insurance, accessories, service of
fully trained technicians, specialist
engineering equipment, computer-
ized diagnostic equipment and
technical updates.
Places at which they offer
The company first conducts their
own research to strategically deter-
mine where to place the dealer-
ships that would optimize their
sales. Once an expansion in an area
is determined based on market
studies, Harley-Davidson selects
the dealer through interviewing the
candidates on their entrepreneurial
position and knowledge of motor-
cycling. And not all dealerships
provide the same products/
services. Also, HD doesn‟t offer
customers to order online, but they
Page 5
can customize through the website
How do they Promote?
Can you expect how much HD
spent on advertising from 1984 to
1996? BIG FAT ZERO!! That‟s true.
They spent all their money in
building a top-notch product and
creating the community which will
build the brand by itself. In 1997,
HD spent just about $1 million on
advertising.
HD always focuses on advertising
the brand, over advertising specific
products. They promote the image
and lifestyle that a Harley-
Davidson embodies. They allow
customers to visit Tour centers in
some of their plants. At these cen-
ters, customers will be guided
through the process of manufactur-
ing and assembling and they can
also buy souvenir. These are in
addition to what they do through
rallies and events. They also spon-
sor NBA team Milwaukee Bucks,
women riders‟ events and other
motor sports. HD bikes appeared
in innumerous Hollywood movies
including blockbusters like Termi-
nator-2, X-men etc.,
How much Price do they
charge?
Price is a very important factor in
HD's marketing mix. They use a
premium pricing system. The com-
pany believes, its products con-
tinue to command a premium price
because of the features, quality,
styling and strong resale value
associated with the custom prod-
ucts. As Harley Davidson owns
close to 50% of the US‟s motorbike
industry, it is evident to see that
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MercurI Team
Harish Kumar Raju, Kiran Krishnan, Kumar Vaibhav, Nikhil Gupta, Shashank Verma, Srinath Akula
‘Indian’izing
Rolls Royce said, “India is the sin-
gle most important market for us
in the next 5-10 years” and Lam-
borghini said “We came to India
their customers value the products
that they produce.
The Harley Davidson FXD 105th
Anniversary Edition reflects the
company's „value based‟ pricing
system. The cost to produce the
Special Edition FXD increased by
$200-$300, whiles its retail value
increased by $5625 in comparison
to a non-special edition FXD. That
is the power that can be enjoyed by
a premium brand.
not by chance but with a plan”.
Neither HD has a differing view.
HD launched 12 models in the
price range of Rs. 7 lakh to Rs. 34
lakh in India in July 2010 with
their first outlet in Hyderabad.
Their limited tri-color Indian edi-
tion gives a hint about the localized
marketing strategies they are going
to follow.
India‟s high import tariffs(60%)
and taxes(30%), roughly double
the prices of HD bikes which are
now imported as CBUs. But HD is
building its second assembling
plant in Gurgaon to import the
bikes as CKDs. This will be the first
assembling plant outside US for
Harley. The cheapest Harley Su-
perflow that costs around Rs. 5.5
lakh in India then would become
40-45% cheaper.
Then I too can think of upgrading
from my Avenger (Harley loo-
kalike) to a Genuine Harley. Am I
being overambitious ?
Page 6
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