Yamaha calls for pitch; LML-FCB-Ulka part ways

Automobile companies like to change their models every so often. And agencies too, perhaps?

Yamaha Motors Escorts Ltd (YMEL) has called four agencies in Delhi to pitch for the advertising account of a new bike slated for launch in August. The agencies in the fray include FCB-Ulka, Mudra, Rediffusion and Contract. The pitch happened through this week. The advertising account of this brand - which would have a capacity of 130-140-cc - is estimated at Rs 8-9 crore.

One interesting omission in the prospective agency list of YMEL is TBWA Anthem. That is because TBWA Anthem handles the advertising accounts of YMEL's Crux, Crux R and YBX 125 brands. There is no advertising whatsoever for Rajdoot, another bike from the YMEL stable.

Though official confirmation on this was not available, it seems the YMEL brass was pretty certain at the outset that roster agency TBWA Anthem would not be invited for the pitch this time around. "YMEL has decided they will have two agencies to handle two sets of brands," says an official close to the development. In fact, if agency sources are to be believed, YMEL is planning to launch a second bike by the year-end, tentatively planned for December. "The launch plan for the second bike is still at a very nebulous stage," avers our source.

He adds, "What is not known is whether there will be a fresh pitch for the second brand or if YMEL has taken a decision on that already." What is known, however, is that TBWA Anthem will retain the media part of the YMEL business. One of the agencies pitching for the new brand indicated, "The company specifically asked for a strategy-cum-creative presentation and mentioned media will remain with the incumbent."

No doubt, the YMEL account is much sought after. The company's total ad spend last year was to the tune of Rs 20-25 crore. What has made the pitch so much more interesting for the agencies concerned is the fact that they would be involved in "crucial decisions like pricing and positioning of the new brand".

In another interesting move LML has pulled out the advertising account of its scooter brands from FCB-Ulka. agencyfaqs! has learnt that the company has started its groundwork on thrashing out a new agency alignment. While LML hasn't called a formal agency pitch yet, it is learnt that senior company executives are working at ‘a preliminary list of prospective agencies'. Simultaneously, LML invited three agencies to pitch for a new bike slated for launch later this year. Among those in the fray were Capital Advertising, Bates and Enterprise Nexus. The pitch happened over the past fortnight and incumbent agency Capital Advertising rode away with the new bike business.

To put things in perspective, Capital Advertising had picked up the Rs 12-crore advertising account of LML motorbikes in June last year. The two LML brands in Capital's guardianship are Adreno and Energy. These two brands had moved from FCB-Ulka as well. The current development, for all practical purposes, puts an end to LML's stormy association with FCB-Ulka. © 2002 agencyfaqs!