1. Weekly NewsWeekly News
(18(18thth
- 24- 24thth
Oct 2010Oct 2010

2. Better margins: Tata Motors' twoBetter margins: Tata Motors' two
top dealers move to rivalstop dealers move to rivals
 Tata Motors, India’s second-largest automobile company,Tata Motors, India’s second-largest automobile company,
faces a churn in its distribution network with rival companiesfaces a churn in its distribution network with rival companies
luring away two of its top dealers by offering better margins.luring away two of its top dealers by offering better margins.
 Pune-based BU Bhandari Auto, which became a Tata MotorsPune-based BU Bhandari Auto, which became a Tata Motors
dealer more than a decade ago when the automobile majordealer more than a decade ago when the automobile major
entered the passenger car market by launching Indica, willentered the passenger car market by launching Indica, will
distribute products of German carmaker Volkswagen , whichdistribute products of German carmaker Volkswagen , which
is eyeing a larger market share in the booming Indianis eyeing a larger market share in the booming Indian
automobile market.automobile market.

3. Contd.Contd.
 Also, Delhi-based dealer, A-One , will distribute and serviceAlso, Delhi-based dealer, A-One , will distribute and service
cars from Honda, BMW and Rolls Royce. These two dealerscars from Honda, BMW and Rolls Royce. These two dealers
together contribute 5-6 % of Tata Motors’ passenger car sales,together contribute 5-6 % of Tata Motors’ passenger car sales,
according to automobile industry executives.according to automobile industry executives.

4. Munjals working on new brandingMunjals working on new branding
strategy for Hero Hondastrategy for Hero Honda
 With the exit of Honda from its 26-year old joint venture withWith the exit of Honda from its 26-year old joint venture with
the Hero group, the Munjals are now working on a newthe Hero group, the Munjals are now working on a new
branding strategy for Hero Honda Motors- India's largestbranding strategy for Hero Honda Motors- India's largest
motorcycle maker. The company has initiated talks with itsmotorcycle maker. The company has initiated talks with its
brand managers on the new look of the brand which will dropbrand managers on the new look of the brand which will drop
"Honda" from all its advertising campaign."Honda" from all its advertising campaign.
 Focus is likely to be move from mother brand 'Hero Honda' toFocus is likely to be move from mother brand 'Hero Honda' to
individual product names such as Splendor, Passion, CBZ andindividual product names such as Splendor, Passion, CBZ and
Hunk.Hunk.

5. Contd.Contd.
 This new logo, sources say, will be accompanied byThis new logo, sources say, will be accompanied by
technological innovations that should put at rest skepticismtechnological innovations that should put at rest skepticism
about Hero’s research and development. Hero Group’sabout Hero’s research and development. Hero Group’s
technology tie-up with Honda is expected to end by 2014.technology tie-up with Honda is expected to end by 2014.

6. Fiat to launch brand stores, withoutFiat to launch brand stores, without
TatasTatas
 As its partnership with Tata Motors failed to yield desiredAs its partnership with Tata Motors failed to yield desired
results, Fiat is charting out a new strategy to turn around itsresults, Fiat is charting out a new strategy to turn around its
fortunes.fortunes.
 The Italian car major plans to open exclusive company ownedThe Italian car major plans to open exclusive company owned
brand stores in major cities, apart from hiring a consultant tobrand stores in major cities, apart from hiring a consultant to
suggest revival path. The brand stores would be an indirectsuggest revival path. The brand stores would be an indirect
way of starting its own retail format without involving Tataway of starting its own retail format without involving Tata
MotorsMotors

7. Contd.Contd.
 Fiat has been a laggard in the Indian market, despite havingFiat has been a laggard in the Indian market, despite having
competitive products like Punto and Linea and failed to ridecompetitive products like Punto and Linea and failed to ride
the boom in car sales. Alarmed, it is now taking steps tothe boom in car sales. Alarmed, it is now taking steps to
highlight the brand more aggressivelyhighlight the brand more aggressively
 The company, which has seen sales fall 8% in the first sixThe company, which has seen sales fall 8% in the first six
months of this fiscal at a time when the overall car marketmonths of this fiscal at a time when the overall car market
boomed 34%, will open the brand stores, or “image points”, atboomed 34%, will open the brand stores, or “image points”, at
Delhi, Mumbai, Pune, Chennai and Bangalore.Delhi, Mumbai, Pune, Chennai and Bangalore.

8. Flying Machine endorsement:Flying Machine endorsement:
Ethical Hacker Fadia replacesEthical Hacker Fadia replaces
Abhishek BacchanAbhishek Bacchan
 25-year-old Ankit Fadia , who’s now threatening the25-year-old Ankit Fadia , who’s now threatening the
endorsement turf of Bollywood stars.endorsement turf of Bollywood stars.
 He’s just replaced Abhishek Bachchan as the brandHe’s just replaced Abhishek Bachchan as the brand
ambassador of Flying Machine jeans.ambassador of Flying Machine jeans.
 he’s close to signing another deal with a global IT brand inhe’s close to signing another deal with a global IT brand in
India, is in talks with a watch company for an endorsementIndia, is in talks with a watch company for an endorsement
deal, and is expected to co-host MTV’s What the Hack—a 52-deal, and is expected to co-host MTV’s What the Hack—a 52-
episode show —starting next month.episode show —starting next month.