Kinetic launches Boss; promo budget pegged at Rs 20 crore

"Kinetic wants to be known as a motorcycle maker," states Ajay Kapila, senior vice-president, sales & marketing, Kinetic Engineering Ltd (KEL).

Well, not just motorcycles but innovative and distinctive motorcycles. The shift in KEL's image from being a scooter manufacturer to a bike maker is deliberate. Because 75 per cent of the two-wheeler industry is constituted by motorbikes. The high profile launch of Boss and the big promo budget for the brand becomes obvious when viewed against this background.

The launch of Boss will be followed up with a rash of new brands - not products, as Kapila points out - to reiterate the new image of the company in the consumers' mind. Boss, as part of the same strategy, comes close on the heels of Kinetic GF (125) (performance segment) and Challenger (combination segment). By next year, the company is planning to launch another 110-cc bike in the combination segment.

With Boss, the four-stroke 100-cc bike sporting an ex-showroom (New Delhi) price of Rs 31,999, KEL forays into the economic segment. By July-end, Boss will be present across the country. Currently, it comes in three colours black, red and silver.

Boss is the bike for the rural, long distance commuter. "Keeping this in mind," says Arun Firodia, chairman, Kinetic Group, "we have launched a no-compromise, rugged, highly fuel efficient (89 km/lt) bike, which is contemporary in styling and fit for the rural and the semi-urban areas." KEL plans to sell over 75,000 bikes in the first year of launch and expects 60 per cent of the sales to come from rural areas. With this target, the new bike has been positioned on the virtues of ruggedness and solidity.

And these attributes are encapsulated in the brand message ‘Dumdar Bike, Dumdar Price'. The emphasis on ‘Dum' (strength) is to communicate the product features and the strength of the bike. "It will appeal to those who enjoy taking challenges in life and aspire for more," adds Kapila. The styling of the bike, say company executives, is expected to get some curious looks from the semi-urban and urban consumers.

The company has allocated a promotional budget Rs 20 crore (the break up is, Rs 12 crore on mass media and Rs 8 crore for ground-level activities). To begin with, the emphasis is going to be on print campaign, which breaks next week in various vernacular newspapers and magazines. Below-the-line activities are going to be an important part of the communication for Boss. These would primarily include organising events and promos at various dealer centres. Madison Media handles the AOR for Boss.

While GF will be the face of Kinetic in terms of image and desirability, Boss is aimed at driving volumes for the company. The hope is based on two key benefits. First, Boss' competitive pricing. In the economy segment, the competition for Boss comes in the form of Bajaj's Boxer AT and CT priced at Rs 33,841 and Rs 35,124 (Delhi) respectively and TVS Suzuki's MAX 100, at Rs 36,300 (Delhi). It's clear Boss has a price advantage since it costs nearly Rs 2,000 less than the cheapest in the segment. The second is its ruggedness and styling. "Take Boxer," Kapila gives an example. "It is not rugged. It just does not address the needs of a rural commuter. In contrast, Boss is a perfect blend of great product features and good looks." The company believes together, these two will constitute the USP for Boss.

KEL has a lot going in its favour too. Chief among which is its widespread dealer network. It has 436 dealers across the country with an additional 500 coming up to beef up its rural distribution muscle.

KEL is in an aggressive mood, no doubt. Just two days ago it realigned its scooters business with FCB-Ulka and scooterettes with Contract Advertising. Spelling out its expectations from the recently appointed agencies, (Grey of course, continues to handle the motorcycle account, which includes the Challenger, the GF125 and now the Boss), Kapila says, "The pressure now on all the agencies has doubled. They have to launch a host of new brands (mind you, not products!) and at the same time meet the deliverables of efficiency and cost benefits." © 2002 agencyfaqs!