Buying Honda BR-V - Decide before launch

It is a practical, seven-seater SUV/MPV cross and gets all the good stuff from Honda's inventory.

Many of you have seen the Honda BR-V in videos or pictures, and the rest might have spotted it at the 2016 Auto Expo. It is a practical, seven-seater SUV/MPV cross and gets all the good stuff from Honda’s inventory. As a product, the BR-V stands to its ground, but the competition it faces from the Creta is fierce. Here is all that you need to know before you book the BR-V for yourself.

Read more from our special coverage on "HONDA CARS"

• Honda Cars hopes BR-V will help clock double-digit growth in FY17

1. The Seven-Seater Advantage

Being the sole seven-seater SUV in its segment, the Honda BR-V will catch the eye of specific buyers. Although, the Creta seats three children at the back with utter ease, the BR-V takes comfort to an all new level. But, accommodating three passengers on the second row will be a squeeze. So, if you are fond of family picnics, the BR-V won't let you leave your grandparents behind.

2. The Space Game

Even with two additional seats, the legroom on offer is quite decent. The last row passengers have well-sized windows, which adds to the airiness. With the third row in place, the BR-V still has enough room for luggage. Overall, the BR-V is a comfortable wagon.

3. The Honda Legacy

It borrows its underpinnings from the likes of the Brio and the Mobilio. That said, the car is longer and does feature a large rear overhang. The insides are reminiscent of the Honda Jazz, while the engines have made their way over from the Honda city. These are 1.5-litre petrol and diesel units which in the City generates 117.3 and 98.6bhp respectively. The petrol variant will also come with an optional CVT automatic gearbox.

If you are a Honda owner, the BR-V will be a familiar space to be within. The drive is comfortable and has enough punch, although, you do feel the length of the car while taking turns on above average speeds.

4. The SUV-MPV Dilemma

Is the BR-V an SUV or an MPV? Well, Honda likes to call the BR-V an SUV, but in all its essence, it is an MPV on steroids. The long side profile and the seven-seater layout takes care of the MPV part, and the squared-off bonnet with large two-part chrome grille gives it an SUV stance. The chunky bumpers with skid plates and plastic cladding all around the car, adds muscle to its appeal. The car does look off-road ready, but you just might want to keep it on tarmac and slight gravel. More details when we get our hands on one.

The BR-V is comfortable, spacious, decent to drive and features an automatic option. It looks the part of an SUV and has the practicality of an MPV. All-in-all, it is a good car, but the Hyundai Creta is tough to beat. Moreover, the Renault Duster has just been updated and is one of the best off-roaders in the segment. Honda will really have to work hard on pricing the BR-V correctly to be a worthy competitor of the lot.

The car is slated to launch on May 5, 2016. Do read our in-depth coverage of the BR-V to know more about the car. We will also be coming up with a road test so stay tuned. CarDekho

Baba Ramdev's Patanjali aims to beat Nestle, P&G & Colgate

Patanjali Ayurved, co-founded by televangelist Ramdev, is targeting Rs 10,000-crore revenue in 2016-17, after sales grew 150 per cent in the previous financial year to Rs 5,000 crore.

The revenue target, if achieved, will put Patanjali Ayurvedahead of multinationals like Nestle, Colgate-Palmolive andProcter & Gamble in India.

Read more from our special coverage on "PATANJALI AYURVED"

• Patanjali to invest Rs 1,150 crore in FY17; eyes doubling revenue
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• The new business tycoons

Delhi-headquartered Patanjali Ayurved has four business divisions: home care, cosmetics and health, food and beverages, and health drinks. The company would venture into khadi products and animal feed this year, Ramdev said. Patanjali Ayurved, founded in 2007, has grown more than 10 times in revenue in five years, an unprecedented feat in India's fast-moving consumer goods industry.

"This is just the beginning. Nestle, Hindustan Unilever and Colgate- Palmolive will be left clueless eventually," Ramdev said. The company's Dant Kanti toothpaste posted sales of Rs 450 crore in 2015-16 and Kesh Kanti shampoo and hair oil posted Rs 350 crore sales in less than a year, he pointed out. Patanjali Ayurved plans to increase its distribution network in 2016-17.

The company has 4,000 distributors, 10,000 stores and 100 mega-marts. Last year, Patanjali Ayurved tied up with retail chains the Future Group and Reliance Retail.

To meet the increasing demand, the FMCG firm will set up at least four new manufacturing units in the current year at a cost of Rs 1,000 crore.

"We will set up six processing units in various parts of the country. Apart from this, we will invest Rs 150 crore in research and development," Ramdev said.

The units will come in Vidarbha in Maharashtra, Bundelkhand in Uttar Pradesh and in Madhya Pradesh. "Banks are more than willing to lend to us. We have no shortage of funds to expand," Ramdev said.

"We are going to look at an e-commerce strategy and focus on strengthening our exports to at least 10-12 countries," said Balkrishna, Ramdev's disciple and co-founder of Patanjali Ayurved.

Panic button must in mobile phones by next year

No mobile handset will be sold in India without the facility of identifying the location through Satellite based GPS from January 2018, the notification said

From January 1 next year, all mobile phones sold in India will come with a panic button enabling users, especially women, to send out distress signals in case of an emergency.

A notification by the department of telecommunications said no mobile phone handset shall be sold in India from January 1, 2017, without the facility of having a panic button and all phones need to compulsorily have global positioning system (GPS) facility from January 1, 2018.

"Technology is solely meant to make human life better and what better than using it for the security of women," Communications and Information & Technology Minister Ravi Shankar Prasad said.

Once a panic button is pressed, a call will be directed to the emergency contact - family, friend or police. Though, details are yet to be finalised.

For feature phones, the government said pressing numeric key 5 or numeric key 9 should invoke emergency call, while for smartphones the same could be done by either via an emergency call button or by pressing the on/off button in quick succession thrice.

The rules may be called the panic button and GPS facility in all mobile handsets rules, 2016, according to the notification.

Also, for easy tracking, no mobile handset will be sold in India without the facility of identifying the location through satellite based GPS from January 2018, the notification said. The government has been trying to create a panic button in the mobile phones since last year. After discussions with the ministry of women and child development, mobile phone companies, the department of telecom came out with this solution.

The move was necessitated by growing number of crimes especially against women. This development is expected to address some security concerns, according to experts. Read More

Airtel strikes gold with 4G girl Sasha Chetri

Sasha Chettri, Airtel 4G girl, is the ad world’s newest poster girl. Chettri has gone viral on social media, ever since Airtel kicked off its 4G campaign last July, and, in the process, has delivered for brand Airtel what no other campaign has - high recall value. With her unconventional and provocative approach, 21-year-old Chettri has firmly put brand Airtel on the country’s 4G landscape.

Today, 4G in India means Airtel just the way years ago Coca-Cola staked claim on the entire soft drinks category through its Thanda Matlab Coca-Cola campaign with Aamir Khan.

Given that the next generation of mobile broadband, or 4G, is about speed, the television commercial showing two girls racing their phones on a terrace in Lucknow was an unusual way to break the clutter on television. Given that other telcos have not come up with such high-decibel campaigns, Chettri has become a shorthand for 4G as a category.

In advertising parlance, the success of a campaign is measured through top-of-the-mind awareness and Chettri has helped Airtel increase this score by 13 per cent compared to other campaigns such as Har Ek Friend Zaroori Hota Hai.

It isn't just the brand recall value that has shot up, Airtel's revenue market-share touched a six-year high of 31.4 per cent in December 2015. In the five key data markets - Mumbai, Delhi, Karnataka, Tamil Nadu and Kerala - Airtel increased its marketshare by 140 basis points in the nine months ending December 2015. According to CLSA, Airtel is upping the ante on data offerings. On the ground, Bharti Airtel has stepped up its 4G data offering through a slew of industry firsts on product as well as distribution. The company has deployed long-term evolution, or LTE, using carrier aggregation in Kerala, enabling speeds of up to 135mbps on its 4G network.

The campaign has many firsts to its credit. For starters, Airtel went with an unknown face to launch a big shift in broadband technology and secondly, it showed the gumption to use a young woman for this.

Explains SashaChettri, “In India, women are still used to endorsing soaps and shampoos but not technology as stereotypes still exist.” Agnello Dias, chairman and co-founder of Taproot, the agency behind the campaign, says: “Sasha is right and she is both loved and trolled at the same time for breaking stereotypes, but there is little doubt that the campaign has embedded Airtel's ownership of 4G in the public consciousness. While the campaign has resonated strongly right through several SECs, it has allowed the brand to own 4G like no one else.” 

The success of the 4G campaigns has even given Airtel the courage to take a pot shot at its own self. The latest commercials is about the 4G girl holidaying in a remote place and is getting surprised to find the network there too. To this end, the Twitter trolls have only helped the campaign stay on top of the mind because it made it impossible to ignore either the campaign or the face of the campaign. Young Chettri, who is also a musician, is often accosted in malls and restaurants by people who either want to shake hands with her or complain to her about the state of the telecom networks in the country.

Last July, when Airtel became the first telecom operator to launch its high-speed broadband services across 350-plus cities in India, it was looking convey to consumers the arrival of not just a new technology, but a new way of life. With 70 per cent of India accesses internet through the mobile, speed and coverage are going to be big differentiators and Airtel wanted to drive home this point with its story boards. Explains Srinivasan Gopalan, director (consumer businesses) at Airtel: “What we wanted to demonstrate through our advertising was a step change in broadband experience. Therefore, we could not be rational about it. When you are rational, it does not land well with the consumer; so, we had to be provocative and fresh.”

Instead of using a Bollywood star or a cricket sensation, Airtel chose to go with a young girl. “This was a welcome change I felt,” says Chettri.

Chettri was both provocative and fresh with her unconventional appearance. She managed to break through the clutter and stand out. She was a step up from all existing offerings thanks to the ‘speed’ aspect. Obviously, this required an over-the-top and provocative approach, which drove home the message.

This was no accident. Given that the category is mired in scepticism, the creative team felt using a celebrity for the 4G campaign would have been a predictable advertising approach. Hence, they chose a fresh face.

Cornered Vijay Mallya offers Rs 1590 cr as intent to pay debt

Vijay Mallya, the Indian liquor baron battling creditors seeking to recover dues, offered to deposit Rs 1,590 crore ($240 million) with India's top court to establish his intent to settle with lenders who had rejected an earlier payment proposal.

Lawyers representing the founder of the collapsed Kingfisher Airlines Ltd, who the government says left the country earlier this year, filed an affidavit in the Supreme Court on Thursday in response to a directive to declare all his assets. The debt owed by the failed carrier is at the centre of India's drive to crack down on defaulters and clean up the balance sheets of its banks weighed down by soured loans.

Mallya also told the court that overseas assets are not considered while granting loans, and sought permission to file information of his assets in a sealed cover on June 26.

He also said banks had no right to any of this information as they were not involved in overseas assets recast. He further added that he can make an additional payment of Rs 1,398 crore withheld by the Karnataka High Court.

Reiterating his earlier position, Mallya told the court he isn't a "wilful defaulter" and the airline was "genuine commercial failure."

He was making all efforts to work out a settlement "in all sincerity" by offering to pay "to the extent possible and feasible" until the government suspended his passport and a court in Mumbai issued a non-bailable warrant against him, he said in the filing.

India's foreign ministry, acting on an application by the Enforcement Directorate, said April 15 that Mallya had a week to respond to why his diplomatic passport shouldn't be impounded or revoked, after suspending it for four weeks. The government says Mallya and Kingfisher owed as much as 90.9 billion rupees ($1.37 billion) as of November 30.

Meanwhile, armed with a non-bailable arrest warrant against him, the Enforcement Directorate has approached the External Affairs Ministry seeking initiation of deportation proceedings against Mallya in connection with its money laundering probe against him in the Rs 900 crore IDBI alleged loan fraud case.

The agency has written to the ministry of external affairs and will also soon write to the Central Bureau of Investigation to get an Interpol Red Corner Notice issued against Mallya to get him arrested, based on the warrant issued by a Mumbai court.

Last week, MEA had suspended Mallya's diplomatic passport and has sought a reply from him as to why his passport should not be revoked.

Sources said once the deportation proceedings are initiated, MEA will seek assistance of its counterparts in the United Kingdom to interdict Mallya and fly him back to India.

"The grounds for deportation are primarily two. A non-bailable warrant issued by the Mumbai court and suspension of the passport of the businessman," they said.

Mallya is understood to be in the UK after he left India on March 2.

A Hyderabad court had on Wednesday convicted Mallya in a cheque-bouncing case filed against him by GMR Hyderabad International Airport.

With the latest request for deportation, the ED has virtually deployed all legal measures in place to bring back Vijay Mallya to India and make him join investigations "in person", which the agency had stated in a Mumbai court was essential to take the probe forward in the case.

The 60-year-old industrialist has skipped three summons issued by ED in this regard in the past. He had also sought time till May to depose before agency investigators.

ED has registered a money laundering case against Mallya and others based on an FIR registered last year by the CBI.

The agency is not only investigating the financial structure of the now defunct Kingfisher Airlines but also looking into any payment of kickbacks to secure loans from IDBI and probing laundering of funds to overseas destinations by the group.

The agency had alleged that Mallya had siphoned off Rs 430 crore of the IDBI loan and used this money to acquire properties abroad, a charge denied by Kingfisher.

Honda Cars hopes BR-V will help clock double-digit growth in FY17

Japanese automobile major Honda is optimistic of achieving double-digit growth in the current financial year. It is betting big on the Honda BR-V, a compact SUV which would hit the roads in May. The company, which reported two per cent growth in 2015-16, is hoping to increase its footprint with this launch.

The strategy includes expanding its product portfolio and increasing sales points. It is planning to invest Rs 380 crore, to increase capacity in anticipation of higher demand. To support the BR-V, it plans to increase the capacity of its Rajasthan plant to 180,000 units. It also has a plant at Greater Noida with a capacity of 120,000 units. After the expansion at Rajasthan, its total capacity would increase to 300,000 units per annum.

“With the current network, we have covered almost all the market. The environment is challenging and the industry is under pressure, which is why we could grow only by two per cent.” said Jnaneswar Singh, vice-president, sales and marketing, Honda Cars India.

Last year, the growth was driven by compact SUVs, premium hatchbacks and entry sedan segments. The trend is expected to continue. To cater to the premium hatchback segment, Honda has launched the Jazz and for the company SUV segment it would launch the new SUV. The selling quotient for the latter would be style, premium interiors, three rows with seven seats — which the company claims is a first time in the segment, pricing and quality. This is the kind of vehicle in which people can go anywhere, added Sen.

In 2015-16, Honda reported sales of 192,059 units compared to 189,062 units in 2014-15.

One of the drivers for growth was the new Jazz. The company has sold 41,400 units since then.

To be more price competitive, it plans to launch the BR-V with more than 90 per cent localisation, the level which five of its models already has. It also plans to add another 45 new sales points. "With this, Honda is entering into a new segment, the company is expanding its play field with the product and it will certainly contribute to the company's growth. It will also add to our image," remarked Sen.

Unlike other original equipment manufacturers (OEMs), Honda's export market exposure is only in few thousands. It exports to Africa and neighbouring markets. It also plans to launch Accord Hybrid — an expected flagship model later. Sen said the demand is moving from diesel to petrol. The price gap has also increased for the smaller segment due to various factors including infrastructure cess — which was more on diesel vehicles compared to petrol and the uncertainty in minds of customers due to the Supreme Court ruling.

"We need to follow the market demand pattern and can adjust, but, it depends on the market. Competition in every segment is increasing and we need to fight with the new models coming in. We are expanding our network to take on them," said Sen.

According to Siam data, Honda Cars India's market share dropped to 6.88 per cent in 2015-16 from 7.27 per cent in 2014-15. The dealer network with the company till March, 2016, is 295 dealers in 188 cities.

PF norms eased: Withdrawal allowed for housing, medical, education and marriage of children

Under fire from trade unions, Employees' Provident Fund Organisation (EPFO) has decided to change the new rules that restrict employees from withdrawing their entire provident fund (PF) balance till the age of 58.

The EPFO has brought in norms that exclude subscribers falling in certain categories. According to amended norms, a subscriber can withdraw his or her entire savings for housing purpose, treatment of himself/herself or family members suffering from TB (tuberculosis), leprosy, paralysis, cancer or undergoing heart operation, marriage of children as well as professional education (medical, engineering, dental) of children.

Further, the rules have been relaxed for a member who joins an establishment under the control of the central or state governments and becomes a member of old-age pension schemes framed by the central or state governments. The fresh amendment will come into effect from August 1.

According to a February notification, EPFO subscribers can withdraw the employer's contribution of PF Withdrawal deposit only after attaining 58 years of age.

Under new EPFO norms, the employer's share will continue to earn interest as the body had recently approved a plan to credit interest to accounts which have no deposits for three consecutive years. According to EPFO norms, 12 per cent of an employee's salary goes as contribution to the fund, along with a matching contribution from the employer.

Branding googlies for late entrants

If cricket is a religion in India, the Indian Premier League (IPL) is a coliseum - the ultimate stage for the clash of the titans. In its ninth edition, the country's biggest and most successful sporting property is offering cricket lovers,advertisers and marketers an opportunity to pull their weight behind two new franchises - Gujarat Lions andRising Pune Supergiants (RPS). The debutants are up against established brands such as Kolkata Knight Riders(KKR), Mumbai Indians and Delhi Daredevils who as first movers command a strong legacy and massive fan following.

As late entrants, do Gujarat Lions and RPS have it in them to emerge as challenger brands and up the ante against veterans? What will it take for the rank outsiders to break through the clutter? Are there any brand managementlessons to be learnt from success stories scripted by late entrants in highly competitive markets like fast-moving consumer goods (FMCG), mobiles and automobiles?

"A late entrant has to be substantially superior in quality to make an impact," says professor Seema Gupta, faculty, marketing area, and chairperson, postgraduate programme in enterprise management, IIM-Bangalore.

She points out that ITC entered the FMCG market late with Bingo and succeeded by developing ethnic Indian flavours, and with the help of whacky advertising and a strong distribution network. With IPL, star players will have to lead the brands for the two new entrants. The T20 format is dominated by batsmen, so having an explosive batsman such as Chris Gayle who builds anticipation and hype can help in building brand value. A charismatic skipper can also play a role in building the brand, she adds. In Mahendra Singh Dhoni RPS have made an obvious gain, as fans would wait with bated breath to see if the iconic cricketer can replicate his successes with Chennai Super Kings (CSK) - the team that he captained in the previous editions of IPL.

Brands trying to break through the stranglehold of established players have to add value to the lives of customers. The two new cricketing teams can pick up a lesson or two from Piaggio Vehicles in piercing a crowded market.

The company launched its gearless scooter brand Vespa in 2012, at a time when the market was dominated by Hero Honda Motorcycles and Scooter India. India's two-wheeler market was dominated by mass market brands since these purchases were mainly driven by need-based compulsions. "However, the entry of Vespa truly changed the game and moved the needle on purchase decisions, especially among the youth who in reality are more interested in brands that are dynamic in their personality and essence," explains Stefano Pelle, managing director, Piaggio Vehicles.

Apart from appealing to the refined taste of customers, innovation too helps brands disrupt the market. For Sky Li, president, Oppo India, "Innovation sets you apart in any market. It's the primary USP which clearly helps any brand to make a distinctive mark in a highly competitive and crowded market." The mobile handset player entered India when its market was chock-a-block with high-end, middle-level as well as low-end handset makers. It was up against brands such as Samsung, Apple, Micromax and Intex. However, Oppo made a mark by following a three-pronged game plan - it pursued a camera-focused strategy, introduced cutting-edge technologies like VOOC Flash Charge and offered customers great build quality and after-sales service.

Both Gujarat Lions and RPS are trying to play to their brand strengths. For instance, Gujarat Lions are hopeful of leveraging the star power of its players on and off the field to appeal to fans. Gujarat Lions owner Keshav Bansal says, "As a cricketing team, we are a strong combination of all-rounders. So, fans can expect fireworks on the field. IPL is also a lot about entertainment. We are striving to differentiate ourselves by setting up high standards of hospitality - through unmatched experience for the fans inside the stadium as well as outside it."

To build the excitement around the game and the team, Gujarat Lions have painted their home ground, Rajkot, in orange, the team colour. They have also got a team anthem that attracted 150,000 views on YouTube within two days of its launch.

As late entrants, the real challenge before the two teams is not about building a loyal fan base but doing so rapidly. IPL 2016 teams have struggled to create a large and loyal fan base over a nine-year period, with the exception of the now-disbanded CSK, Mumbai Indians and Kolkata Knight Riders. To overcome this challenge, the two teams need to leverage traditional and digital media to position their "fans" as "connoisseurs" rather than fanatics, and create stories that lend credibility to fine tastes.

Tripti Lochan, chief executive officer, South East Asia and India, VML, says, "The trick lies in converting their late entry tag into a badge of connoisseurs, a statement of good taste. Alcohol brands and perfumes do this well. A limited-edition Jack Daniel's Sinatra Select appeals to more than just the JD loyalists or Sinatra fanatics. It appeals to the regular whisky drinker who is in the market for a unique taste experience, but more importantly offers a choice that earns him some bragging rights."

As per experts, high-decibel media campaigns and sustained consumer education programmes can go a long way in cultivating a new set of consumers. A perfect case in point is the launch of toothpaste brand Sensodyne by GlaxoSmithKline (GSK) in 2010. Charubala Seshadri, area marketing director, ISC oral health, GSK Consumer Healthcare, says, "The market didn't have specialised oral-care products and there was no awareness about tooth sensitivity as a problem among consumers. As a result, no one saw the need for a product with sensitivity-relief benefits."

GSK took the lead in identifying the gap between tooth sensitivity and awareness and its solution, and launched a world-class science-based product to fulfil the consumer need. Similarly, Gujarat Lions and RPS could tickle and satiate the cricket fans' love for the game in their terrains - Rajkot and Pune - by building strong regional communities around their teams.

As late entrants, the duo enjoys a few advantages as well. They know how the game has been played in the past and will be aware of mistakes made by the early movers. "The two teams will try to benefit from external identities like regional affiliation. They have learnt that teams at the bottom of the heap in terms of points or wins were profitable. More than team performance, sewing up right sponsorships in kits, jerseys and in-ground activities will be the key to profitability," says Dr Sanjay Patro, professor of marketing, XLRI-Xavier School of Management, Jamshedpur.

Going by the list of sponsorships and corporate brand associations, the two teams appear to be enjoying a level playing field.

Sanjay Tripathy, senior executive vice-president and head of marketing, analytics, digital and e-commerce, HDFC Life, says, "We are not concerned about RPS being a new team. They have a very strong line-up of great players." Similarly, for Mahesh Gupta, chairman, Kent RO, its association with RPS gives the water purifier brand the perfect opportunity to be seen in the company of Dhoni - the captain cool. Fashion brand Spykar Lifestyles, too, values its association with RPS. "Captain Dhoni is at the centre of everything at the moment. For us, there could not have been a better team and brand association," says Sanjay Vakharia, chief operating officer, Spykar Lifestyles.

Patro gives the late entrants a heads-up on learning by trial. "It's a great opportunity for the two new teams to learn in these two years the skill set and competencies needed to take a call later in 2018, when fresh auctions are held for CSK and Rajasthan Royals. In a way, it is test marketing for the Gujarat Lions and RPS."