With losses mounting over INR 1,000 crore, Mahindra & Mahindra’s ailing two wheeler division is refusing to give up. In a bold move, Mahindra Two Wheelers Ltd. (MTWL), has floated a comprehensive ad campaign which is valued at INR 75 crore for a duration of 2 months.
This campaign is the biggest marketing initiative ever taken by the Indian conglomerate for such a short duration. Rajesh Jejurikar, President and Chief Executive of MTWL, managed to get the board’s approval for the ad blitz despite the poor financial performance of his unit.
A month into the campaign, the company claims that queries at dealerships have already doubled. According to the top executive, unless the firm goes big on marketing it won’t be considered seriously in the market. With an estimated mindshare of 14-15% in the coming months, Mahindra is looking set to become one of top 10 advertising spenders in the country.
Mahindra Two Wheelers ad campaign – TVC
Apart from the marketing push, the company has also executed other plans such as selling two wheelers at select four wheeler and tractor outlets, revamping the dealership reward plans, revising the cost structure, etc. With the flagship Mahindra Mojo waiting to be launched soon, MTWL is also gearing up to introduce new variants of Centuro commuter and Gusto automatic scooter in the next 12-18 months.
Mahindra Two Wheelers sales have been dwindling in the past few years. Moving forward, the company is relying on its marketing operations, new products and newly acquired Peugeot Scooters to increase its market share from the current 1-2% to 3%. Mr. Jejurikar wants the company to achieve an ambitious 1 million annual sales in the next three years.