Weekly News Weekly News (18(18thth - 24 - 24thth Oct Oct

20102010

Better margins: Tata Motors' two Better margins: Tata Motors' two top dealers move to rivalstop dealers move to rivals

Tata Motors, India’s second-largest automobile company, Tata Motors, India’s second-largest automobile company, faces a churn in its distribution network with rival companies faces a churn in its distribution network with rival companies luring away two of its top dealers by offering better margins.luring away two of its top dealers by offering better margins.

Pune-based BU Bhandari Auto, which became a Tata Motors Pune-based BU Bhandari Auto, which became a Tata Motors dealer more than a decade ago when the automobile major dealer more than a decade ago when the automobile major entered the passenger car market by launching Indica, will entered the passenger car market by launching Indica, will distribute products of German carmaker Volkswagen , which distribute products of German carmaker Volkswagen , which is eyeing a larger market share in the booming Indian is eyeing a larger market share in the booming Indian automobile market. automobile market.

Contd.Contd.

Also, Delhi-based dealer, A-One , will distribute and service Also, Delhi-based dealer, A-One , will distribute and service cars from Honda, BMW and Rolls Royce. These two dealers cars from Honda, BMW and Rolls Royce. These two dealers together contribute 5-6 % of Tata Motors’ passenger car sales, together contribute 5-6 % of Tata Motors’ passenger car sales, according to automobile industry executives.according to automobile industry executives.

Munjals working on new branding Munjals working on new branding strategy for Hero Hondastrategy for Hero Honda

With the exit of Honda from its 26-year old joint venture with With the exit of Honda from its 26-year old joint venture with the Hero group, the Munjals are now working on a new the Hero group, the Munjals are now working on a new branding strategy for Hero Honda Motors- India's largest branding strategy for Hero Honda Motors- India's largest motorcycle maker. The company has initiated talks with its motorcycle maker. The company has initiated talks with its brand managers on the new look of the brand which will drop brand managers on the new look of the brand which will drop "Honda" from all its advertising campaign."Honda" from all its advertising campaign.

Focus is likely to be move from mother brand 'Hero Honda' to Focus is likely to be move from mother brand 'Hero Honda' to individual product names such as Splendor, Passion, CBZ and individual product names such as Splendor, Passion, CBZ and

Hunk.Hunk.

Contd.Contd.

This new logo, sources say, will be accompanied by This new logo, sources say, will be accompanied by technological innovations that should put at rest skepticism technological innovations that should put at rest skepticism about Hero’s research and development. Hero Group’s about Hero’s research and development. Hero Group’s technology tie-up with Honda is expected to end by 2014. technology tie-up with Honda is expected to end by 2014.

Fiat to launch brand stores, without Fiat to launch brand stores, without TatasTatas

As its partnership with Tata Motors failed to yield desired As its partnership with Tata Motors failed to yield desired results, Fiat is charting out a new strategy to turn around its results, Fiat is charting out a new strategy to turn around its fortunes. fortunes.

The Italian car major plans to open exclusive company owned The Italian car major plans to open exclusive company owned brand stores in major cities, apart from hiring a consultant to brand stores in major cities, apart from hiring a consultant to suggest revival path. The brand stores would be an indirect suggest revival path. The brand stores would be an indirect way of starting its own retail format without involving Tata way of starting its own retail format without involving Tata MotorsMotors

Contd.Contd.

Fiat has been a laggard in the Indian market, despite having Fiat has been a laggard in the Indian market, despite having competitive products like Punto and Linea and failed to ride competitive products like Punto and Linea and failed to ride the boom in car sales. Alarmed, it is now taking steps to the boom in car sales. Alarmed, it is now taking steps to highlight the brand more aggressivelyhighlight the brand more aggressively

The company, which has seen sales fall 8% in the first six The company, which has seen sales fall 8% in the first six months of this fiscal at a time when the overall car market months of this fiscal at a time when the overall car market boomed 34%, will open the brand stores, or “image points”, at boomed 34%, will open the brand stores, or “image points”, at Delhi, Mumbai, Pune, Chennai and Bangalore.Delhi, Mumbai, Pune, Chennai and Bangalore.

Flying Machine endorsement: Flying Machine endorsement: Ethical Hacker Fadia replaces Ethical Hacker Fadia replaces

Abhishek BacchanAbhishek Bacchan 25-year-old Ankit Fadia , who’s now threatening the 25-year-old Ankit Fadia , who’s now threatening the

endorsement turf of Bollywood stars.endorsement turf of Bollywood stars.

He’s just replaced Abhishek Bachchan as the brand He’s just replaced Abhishek Bachchan as the brand ambassador of Flying Machine jeans.ambassador of Flying Machine jeans.

he’s close to signing another deal with a global IT brand in he’s close to signing another deal with a global IT brand in India, is in talks with a watch company for an endorsement India, is in talks with a watch company for an endorsement deal, and is expected to co-host MTV’s What the Hack—a 52-deal, and is expected to co-host MTV’s What the Hack—a 52-episode show —starting next month. episode show —starting next month.