Sumita Vaid
Advertising

LML launches Freedom; Rs 15-Rs 20-crore ad campaign to break soon

As part of LML’s top-down marketing strategy, the company has launched a new bike Freedom in the deluxe commuter segment

It's Freedom for LML after Adreno FX and Energy FX.

As part of LML's top-down marketing strategy, the company has launched a new bike Freedom in the deluxe commuter segment. Sporting a price tag of Rs 40,050 (ex-showroom price, Lucknow, inclusive of sales tax), Freedom is a 4-stroke, 110-cc all-aluminium low-friction (Alofric) bike that promises 85 km to a litre of petrol. In the first phase of the launch, Freedom will be available in select markets of Uttar Pradesh in July. The national launch will be complete by September 2002. Currently, Freedom comes in three colours - Serene Blue, Jet Black and Lightening Silver.

The company prefers to keep its expectations from Freedom low. In the next nine to 10 months, LML hopes to sell a conservative number of 20,000 units of Freedom, which comes with a two-year/30,000-km warranty. It will be available at all the 700 dealers on the company's roster.

The estimated Rs 15-Rs 20-crore advertising campaign for Freedom, as conceived by Capital Advertising, Delhi, will break in a couple of days. The print ads will break first followed by the television campaign. Regional press will be leveraged to reach out to prospective buyers in Uttar Pradesh. On TV, LML is going to spread its message through a mix of general entertainment and niche channels. On-ground activities too are an important part of the advertising communication plan.

Deepak Sethi, executive director, marketing & sales, LML, explained the advertising plan very briefly. "It is going to be product-centric. The idea is to establish the technological superiority of Freedom." Hopefully the positioning of Freedom on the platform of pride (as the baseline says "Ride It With Pride") will have a positive message for prospective buyers.

Clearly the company's mission is to consolidate and better its position in the two-wheeler segment. Given that the two-wheeler industry is poised for a 62.7 per cent growth by 2005 (that is, from the current 4.3 million, it is expected to grow to 7 million units by 2005), there is hope for all two-wheeler manufacturers.

To give an idea of the segmentation of the motorcycle market in India, it is broadly divided into three main categories. The top end or the niche lifestyle segment comprises 7 per cent of the total market with sales of around 20,000 vehicles per month. It is in this segment that LML operates with its two bikes Adreno FX and Energy FX. The second segment is the deluxe or the smart commuter segment, which constitutes 53 per cent of the market. In volume terms, this amounts to 1,55,000 motorbikes every month. Lastly, the basic commuter segment or the entry segment that makes up the remaining 40 per cent of the market with sales of 125,000 vehicles per month.

Extending its product range to the smart commuter segment was the next logical step after Adreno and Energy, believes the company brass. "True to its character, the niche segment is expected to provide volumes. The entry into the deluxe commuter segment would enable the company to increase its total coverage in the two-wheeler market to 56 per cent from the current 16 per cent," says Deepak Singhania, managing director, LML.

LML obviously hopes to rake in the volumes with Freedom. Which is why it has been priced so competitively. Rivals in this segment include Hero Honda's Passion and Splendour priced at Rs 42,577 and Rs 40,756 respectively. Then there is TVS Victor, which is priced at Rs 40,730 (all ex-showroom, Lucknow prices). "Freedom's product benefits that are substantially superior to the others in the same market, coupled with its aggressive pricing, is set to cause a paradigm shift in this segment," claims Sethi.

By next year, the company plans to enter the basic commuter segment. Before that, in 2002, LML will launch two new 125-cc bikes. While one will be a new brand, the other is going to be a variant of one of the existing bikes. The company also plans to launch a 4-stoke gearless scooter. "By 2003 we expect to cover around 89 per cent of the market," adds Singhania.

For the current fiscal, LML hopes to sell 100,000 units of its scooters and 150,000 motorcycles. © 2002 agencyfaqs!

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