The Off-beat approach – Yummy Yamaha

Now, Yamaha with its proposed 160-165cc motorcycle intends achieving the same. Breaking the clutter (the 150cc clutter in this case) with a slight increase in capacity does have its benefits – it gives the bike maker something to talk about. And if you pack in class shattering, unexpected performance, the coffee gets that much more agreeable. Moreover, a move like this - ‘performance now for the masses’ – will go down brilliantly well with Yamaha’s image in India; courtesy the RD and the RX.
TVS has already tried breaking the mould with the RTR, and with reasonable success at that. Yamaha though can do better, especially if the Japanese company can pack in stuff like, liquid cooling, fully faired styling, and performance which will embarrass even the likes of the P220 and the Karizma. It can do that by having a light weight bike like it sells in Indonesia – the Viper or V-Ixion, but instead of 14bhp give it something like 17 or 18bhp.
We are waiting with bated breath, Yamaha.

The Off-beat approach - Blaze effect

Suzuki though isn’t the only manufacturer trying to find a foothold for itself by getting into virgin territory. Kinetic did the same with the Nova 135, but the scooter didn’t exactly succeed. It has now got a good break with the Blaze nonetheless, with the so called ‘maxi scooter’ catching the fancy of the young and show off sort. Here again, the numbers are of little significance; particularly if you see what she, the Blaze, has done for the Kinetic brand. Suddenly, Kinetic is back on every body’s antenna, and buyers are now awaiting more of the gorgeous looking scooters from the Italjet brand.I must mention here though, that even though the Blaze looks great and has more than adequate performance, she continues to be plagued with quality issues – then be it regarding the fit and finish, build quality, or even the mechanicals.

The Off-beat approach - Suzuki way

Little surprise, that Suzuki, after making a dismal foray into Indian biking with average products like the Zeus and Heat, in a category which saw a flurry of launches from every manufacturer in the country at the same time, showboating better styling, ergonomics, performance and features, has now decided to look at scooters. And it’s not your regular 100cc gearless scooter either, but the Access with her 125cc engine, is trying to carve a niche in a segment which hitherto is untouched.
But will the Access get the numbers Suzuki so desperately needs? Not quite. But there’s more to the two-wheeler bike making circus then just numbers. There’s the question of getting noticed, there are dealers who need to be pacified, and there needs to be a good product mix to retain walk-ins.
Suzuki feels the Access will help the company on all these counts. And what ever numbers she does manage to sell; it will only help the company’s cause further.
Looking at the 125cc gearless scooter segment, in the meantime, there’s no real competition. Yes, Kinetic has also just introduced the SYM Flyte, but its demeanour is more of an entry level, light, girly scooterette than a full fledged scooter. The Access on the contrary, with her large dimensions, not to mention a larger heart, fits the latter quite well.
Will soon have a ride report on the scooter, and how she compares with the rest of the creed…

Off-beat vs herd mentality

We hear, read and witness a new launch every other day now. While some introduce completely new, exciting offerings (if not breathtaking); some choose to launch rehatched versions of their sometimes best selling, and sometimes slow moving models. But what goes on behind launching each of these offerings; what’s the thought process; what’s the game plan? Though, it’s impossible to get it entirely spot on, unless of course I were a company insider, here’s an attempt to make sense of some product strategies.
There are largely two ways of going about deciding a new product– a) Let’s call this one herd mentality - dive into a segment which has been witnessing great growth in the recent past – double digit, triple digit growth rates and the like – backed up of course with million page market research report indicating (actually shouting) that the concerned product category has immense potential, and will continue to grow for… well, ever.
And b) The ‘off-beat’ approach - enter virgin territory; create a new niche; spawn a new segment; etc etc…
But both approaches have their set of problems.
‘a’ for instance is a crowded place (remember ‘herd’); the competition here is intense; under cutting the only mantra; better value-for–money proposition, a prerequisite. So, if you are Hero Honda, Bajaj Auto or even TVS, it’s okay to take this approach. After all, the three have had reasonably good numbers by their sides, as well as success, at some level or the other. As a result are better equipped both mentally and financially to take a hammering if their products were to fail.
We have seen the three at it as well, and pretty often. Bajaj tried to knock off Hero Honda in the 100c segment, Hero Honda on the other hand tried the same on the former in the 150cc plus segment. As for TVS, it tried to outdo both in both these categories. The outcome though is been more or less the same on both counts – HH continues uninterrupted in the 100s while Bajaj and TVS have had to make do with relatively smaller, but sumptuous helpings. While in the 150cc plus, Bajaj is still king, with TVS and HH managing just about okay sales.

However, if you were a new entrant to the market, or have been battling miniscule sales, much like Suzuki and Yamaha respectively, and obviously Kinetic, it’s best to take the ‘off-beat’ approach.
Here’s how it helps. Creating a new segment, or a sub segment, first, takes the competition away. It also helps the maker get noticed, as it gives the company something new and different to harp about. All the manufacturer has to do then, is to convince buyers, the new product category actually makes sense for him. We have seen a few examples of this ‘Off beat’ approach, and I’ll list them for you in the subsequent posts.

Brands: why bike makers need to build them, and break them… Part II

Let’s take a look at Hero Honda (HH) now…

The company is the number one motorcycle maker in the world, and that, I must clarify, is in terms of bikes sold, and not for the variety of product mix, or cutting edge technology or the like. But it’s still a huge achievement, nonetheless.
However, the successes behind this success story aren’t very many.
There’s been the Splendor-Passion combo, the success of which I need not elaborate on at all. The CD too has been a hugely successful brand for HH. But beyond these, there’s little that HH can tom tom about.
But before we get on further, just for a moment imagine, the enormity of the triumph these brands have had, to single handedly be responsible for the company’s accomplishment. Unbelievable!

Equally unbelievable are the number of flops the company has had to live with.
HH tried to do something different in the middle ages so to speak with its entry level platform. It introduced a restyled CD 100 as the Joy. The bike of course bombed. HH then tried the same with the Dawn nameplate, she too failed.
Finally, some sense prevailed and HH re-introduced (yet again), the CD/ Splendor platform as the CD Dawn and CD Deluxe. The two met with better fortunes than the earlier two. Was it the CD brand then? I can’t think of anything else, really, cause the bikes, and their styling weren’t too different in the first place.
Hero Honda must be of the same opinion as well, otherwise how to do you explain the range of Splendors – there’s the regular Splendor+, then came along the 125cc Super Splendor, and now the Splendor NXG has chugged in promising a Splendorful life.

However, excluding the entry-level and what we largely term as the executive segment, HH has had little success. The CBZ eventually failed, so did the Ambition, the Achiever, and so on and so forth.
The company finally brought back the CBZ nameplate with the X-treme, and it was a good move, no doubt, given that the name still kindles the right flame in a biking enthusiast’s heart.
But, I have two questions here. First, why couldn’t Hero Honda, such a heavily marketing driven company, introduce the CBZ brand earlier? And second, when it did, why couldn’t they do a better job on the styling front, especially when the complete Indian motorcycle dynamics had moved towards better styled machines?
The answer to the first question, I believe, is that it was a huge goof up on the company’s part. Instead of understanding the brand and the value it commanded, HH set about breaking it with new launches like the Achiever, when that was the last thing it needed.
As for the second, we all know Hero Honda banks on Honda for the products they get. Maybe it’s a case of Honda and Hero Honda being on different wavelengths, and with the former calling the shots, HH’s understanding of the market needs - styling, features, performance etc etc, in Honda’s view, can be ignored (put politely, of course). Or maybe HH has little clue about what is actually needed.
I personally believe it’s the former.

Getting back to the CBZ, since the X-treme’s launch the bike has done pretty well, selling around 12,000-15,000 every month. It’s a fabulous achievement considering the bike’s styling isn’t very, how should I put it, palatable. The thought process at Hero Honda would then have been, “What if the bike were actually a great looker, imagine the numbers we’d manage then!”
Enter the Hunk. Employing the same mechanicals as the X, from the engine to the cycle parts, she boasts of tastier, more contemporary and racy styling.
But why Hunk? Why not something like CBZ 150 R or better still, the new CBZ X-treme. Picture the recall the bike would have had, if she too had the CBZ nameplate. Maybe HH understands the consumers better, and feels it will sell more bikes by having two different brands, I don’t know.
What I do know - in the long term, a company does need to build successful brands. Otherwise, it will have to start everything from a scratch - from defining the brand’s values, to its target audience, to its deliverables. The end result - a lot more money will be spent every time a new bike is launched.

Something HH has become used to, I guess.

Brands: why bike makers need to build them, and break them…

Building brands isn’t as easy and straightforward as it might read. There’s lots that goes behind building a brand, and then breaking it.
My take is, a company continues to build a brand till it’s successful, and breaks it, if it’s a failure. Let’s take Bajaj Auto as an example -

The Pulsar, you’d agree is probably a case study on how one needs to build a brand, and than, take it to a new plane.
The P150 (and the P180) started it all, driving the CBZ into oblivion, much to the horror of both Hero Honda and the bike enthusiast. And how Bajaj managed it, is a well know fact now – cheaper pricing, better styling, but mostly, better fuel efficiency. Indians we were (and are); and our fetish for fuel efficiency is almost murderous, to put it lightly.
Not surprising, we embraced the Pulsar like I would a million dollar lottery!
Bajaj also rewrote a few rules. It upgraded the Pulsars sooner than a testosterone pumped man would grow stubble. More importantly, it stayed away from introducing the bike under a different brand, and it only used subtle monikers to show the upgrade.
Introducing DTS-i in its bikes was a beginning, and now with the P200 and the P220, Bajaj is propelling the Pulsar brand further.
However, there’s a counter argument to building the Pulsar brand.
The bikes look almost identical, then be it the P150, 180, 200, or even the 220. Yes, the styling is a tad different, but it’s very minor indeed. It therefore, leaves Bajaj very little leeway to sell these bikes under separate nameplates.
Adding to this is the fact, that the company hasn’t followed the same philosophy in other segments, particularly, the entry level. It had the Boxer, then the CT 100, and finally the Platina. So if Bajaj was so conscious about brands why didn’t it follow the same here?

Cause it all boils down to success, and this where breaking a brand helps. Bajaj, as is well known, has failed to break Hero Honda’s stranglehold in the entry level. It, as a result tried giving more – more features, better styling etc, all the things that made Pulsar a success – for less. And it tried doing it with a new brand each time; so that consumers would appreciate that an all new motorcycle had come their way, even though the truth was far from it. Take the Platina – she had the CT 100 under pinnings, and the Wind’s clothing. We, of course, continued to lap up Hero Hondas.
As a result, now the XCD sees the light of day, and with her, Bajaj is playing a completely new game. But, not without a safety net. Rajiv Bajaj quite categorically stated at the engine’s unveiling that the new DTS-Si platform can be both upgraded (read 150cc) or downgraded (read 100cc) depending on the need.
So it will begin building the XCD as its entry level brand which will have bikes ranging from 100cc to 125cc, and maybe even a 135cc variant.
Where does this leave the Discover then? The Discover will move up the ladder as well, and she will do so with revised, more kickass styling. She will sport 135cc and 150cc powerplants, displacing the Pulsar 150 in the bargain.
The Pulsars then, will only be a performance brand with P200s, 220s, 250s, 300s etc etc, while the XCD will be the bastion of fuel efficiency, and Discover, well, if the XCD takes off, maybe Bajaj will kill the Disco. Otherwise, it will break the XCD, introduce yet another brand, and also rework the Discover, all over again.

Casey Stoner: the next big thing?

I believe Valentino Rossi is phenomenal rider. The best there is both as a racer and as a character. Not that I know him personally, but I did meet the guy last year at the Donington MotoGp. He was more or less at the top of his game at the time, but given his stature and fan following, he still came across as a humble guy.
Today, he is struggling. To cope with an average machine, and less than average tyres. Or so we are made to believe.
Maybe the truth is: he has finally met his match in the young Aussie Casey Stoner. And Rossi’s fun and games off track have done little to psyche this particular bloke. Casey, of course, doesn’t come close to the Italian for being someone you’d want to watch after the chequered flag has been brought down – he doesn’t entertain with his bowling (the 10-pin sort), or with his on-track surgery among a host of fans dressed in doctor coats, or play out the snow white and the seven dwarfs fairy tale on his victory lap. No sir, Stoner wins, waves to his fans, and then hugs all and sundry in the pit lane.
But during the race, he is certainly worth a watch and more. You won’t obviously find me power sliding out of corners like Hayden, or hanging off and sliding into rider under braking like Elias, or even brushing his elbows on the tarmac like Hopkins, but Casey, much like Rossi is deceptively fast. Clean, devoid of drama, but very fast indeed. But what really makes him a brilliant watch, is his ability to absorb pressure and deliver without a hitch come what may.
The 2007 MotoGp season is a testimony to the same – watching Rossi slide, running wide, and making mistakes has been a common sight this season. But I can’t remember many occasions when Stoner slipped.
Sure, he had a faster bike, but the Ducati isn’t as great a handler as the Yamaha. And at the end of the day, you need someone talented - gifted would be the right word here – to ride the stead home.
Stoner is just that guy.
Look at Capirossi, Casey’s teammate for comparison; the Italian has been nowhere near the Aussie this season, and he is talented too.
There is also the argument about tyres, highlighted by the Rossi camp no doubt, that Bridgestones were a better bet than Michelins, and Rossi’s move to ride on the former in 2008 just stamps that, doesn’t it.
You can’t really argue about that, but my point is, Rossi has seen worse, and he has managed to come up triumph in the past. So what’s different this time? Stoner. Period.
I saw Casey ride on the Honda last year, and boy was he good. But watching him this year, I believe Stoner is probably as gifted as the charming Italian. And maybe, he might replace Rossi as the best MotoGp rider ever, in the coming years.
The 2008 season should reveal all…

125s: the saga continues…

Back in 2003 there was a spurt of 125s that hit the Indian market. There was the LML Freedom Prima, Yamaha Fazer, TVS Victor 125, Bajaj Discover etc etc.
The logic of bike makers behind the same, I guess, would have been – that’s how it works the world over – 100s, then the 125s, then the 150s and so on and so forth - and the same should hold true for India as well. But what they over estimated was our need to upgrade.
“If I want a fast bike (in relative terms of course), I’d buy a 150. And if its fuel efficiency I want, I’d rather stick with the 100s.”
The end result – the 125s never took off. Fast forward to 2007-08 and bike makers are taking keen interest in the 125cc segment all over again. The difference this time round is – unlike in 2003, the 100s are witnessing a slow down in sales, while the 125cc plus segment is growing at double digits. That the difference in the sheer volumes of the two is mammoth, is something bike makers aren’t really talking about. Particularly Bajaj.
Bajaj has just launched the XCD, a bike it hopes will make the 125 the new entry level. And it seems to have played the cards right too – giving the bike brilliant fuel efficiency, and at a price that is anything but expensive. Then there is the features list which should have the style conscious, cash strapped individuals swooning over her.
But not every bike maker thinks on similar lines. Here we have Honda, which will in early 2008 showcase its take on the 125s – a stylish, youth oriented, and most likely better performing motorcycle than the Shine will hit showrooms. The new Honda 125, I am sure will not redefine the entry level, and Honda would not be hoping to do the same either.
Then we have the Flame. TVS’ 125 which should be out before the end of this year. She is a stylish looking motorcycle, and brags of some innovative features as well. And unlike the XCD promises both good low end and top end performance. And with the new CCVT blah blah tech, which uses a three valve head for better swirl at low engine rpm and better filling of the cylinder at high rpm, she should not be very poor on the efficiency front either.
The point of all this? We have two very different lines of thought here. As an enthusiast, I’d like Honda and TVS to succeed. Imagine the two companies packing in 150cc rivaling performance in smaller, less expensive bikes? Won’t that be brilliant. For little else, but the fact, that segments above it will move up on the performance scale too!
I don’t mind Bajaj succeeding either, cause knowing with the Discover 135, it is already trying to do the same. And with a new Discover in the wings, which might also come in 150cc guise, hence replacing the Pulsar 150, enthusiasts have little to worry about.

Hero Honda Hunk: will she show the way?

Hero Honda, synonymous with awfully fuel efficient motorcycles, has failed time and again to cut mustard with anything remotely performance oriented. Sure, the company started the 150cc revolution with the CBZ, but look where it is now – struggling to establish itself as a player of significance in the face of Bajaj Pulsars and TVS Apaches.
It’s not like it hasn’t tried, after all Hero Honda unofficially has the coveted title for most number of models in a particular segment.
In the 150, it began with the CBZ, followed by the Achiever, the X-treme and now we have the Hunk – another terrible name among the list of appalling monikers. On the other hand, Bajaj has stuck with the Pulsar, and to its credit has timely upgraded the bike, though it would have done well to upgrade the quality as well, and so has TVS, having dumped its Suzuki baggage replacing the Fiero nameplate with the Apache. That the bikes deep down are identical is of course another story.
So can the Hunk muscle her way through the hustle bustle of the 150cc segment, all the way to the top?
I won’t personally place my bets on it. You see, the Indian buyer, that’s you and me and another 50,000 of us joining the fold every month in this particular segment, are of the ‘me too’ sort. Give them a potent machine which has astounding handling prowess, performance which raises the bar significantly higher, and ergonomics that have you singing pagans for the bike, but take away those silly things like the LED tail, split grabs and orangey digital displays, and we feel short changed.
So even though the Hunk looks good, and has the right cycle parts - mostly borrowed from the X-treme in addition to gas-charged dampers at the rear – she might not exactly break the 20,000 units a month mark. And I don’t mean in the coming months, but ever.
I would like to be proved wrong of course, because it will prove that we, the Indian biker, are maturing as a creed.