Enterprise-Nexus rides away on LML scooters

Following a three-way pitch, LML has awarded the Rs 8 crore - Rs 10-crore scooter account to Enterprise Nexus, Delhi. agencyfaqs! readers would remember the story we ran last week - Yamaha calls for pitch; LML-FCB-Ulka part ways - in which we had reported that LML had called three agencies to pitch for the advertising account of a new bike and that senior company executives are working at ‘a preliminary list of prospective agencies' for its scooter account.

As it turns out, the same pitch, which happened in March, was used as the basis to pick out the agency for its scooter account as well. Which basically means that the earlier presentations from Bates, Enterprise Nexus and Capital Advertising were evaluated for the business on the basis of a pre-set strategy and creative parameter. While LML executives refused to comment on the size or the reasons for which the decision was settled in favour of Enterprise Nexus, a senior officer indicated that the company was yet to take a call on the media part of the business. "All I would say is we have not decided how we are going to do the media planning and buying for scooters, and we are not in a hurry to do that either," he said.

As things stand now, LML's two-wheeler business has been split into two. The Rs 12-crore motorcycle account has two agencies working on it - Capital Advertising, Delhi, for creative, and Zenith Media for media planning and buying. And the Rs 8 crore - Rs 10-crore scooter account is under the guardianship of Enterprise Nexus. LML officials also refused to say whether there would be a fresh pitch for the AOR account. Incidentally, both the motorbike and the scooter accounts moved from FCB-Ulka.

The task before the new agency for scooter advertising is humongous. As an industry observer points out, "The metal-bodied geared scooter segment is down by 40 per cent from what it was around three years back. This has happened mainly because of two reasons. One, the consumer shift towards motorbikes from scooters; and, two, the rapid growth of the geared scooter segment. The growth in the geared-scooter market has been spearheaded by the likes of Kinetic Engineering and unfortunately enough, LML, which has been operating in the scooter market for about 20 years now, doesn't have a presence there."

Given this scenario, it is easy to surmise LML would be preparing to launch a new offensive to recover lost ground in the scooter market with a new agency and a new marketing plan. Currently, LML scooters are available in four models - NV Xpress, Star Xpress, Select II and Sensation with Vespa being the umbrella brand. All the models have a 150-cc engine. LML scooters are positioned on the USPs of high power, easy manoeuvrability, superior styling and better features. In the initial years, LML scooters faced technical and quality problems. However, after a revamped operational and marketing focus, the company staged a smart recovery in the year 1994. But by then it had allowed Bajaj Auto to replace it as the number one player in the market.

Thus, for the second largest player in the scooter market, a little bit of aggressiveness in the market and in its advertising is long overdue. And if market reports are to be believed, LML is already on the correction course spearheaded by new executive director, marketing, Deepak Sethi. Reports indicate the company plans to launch both two-stroke and four-stroke geared and ungeared scooter models this year. Lined up are the 150-cc Z-2000 and the Clipper.

While the company remains tight-lipped, the launch plans would hopefully be clearer over the next couple of months. © 2002 agencyfaqs!