The two wheeler industry saw some major action in the past two days, with two major companies TVS and Kinetic Group appointing Universal McCann and Madison respectively as their AOR. TVS account is worth between Rs 30 and Rs 40 crore whereas Kinetic account is worth approximately Rs 25-30 crore.
Till recently TVS Suzuki’s media buying and planning for its mopeds, motorcycles, scooterettes was handled by McCann, Saatchi & Saatchi and O&M respectively. The company had invited the media buying arms of all three agencies for the AOR pitch in late April. After some close contests between Zenith (Saatchi & Saatchi), Universal McCann and Maximise (O&M), McCann won over others on the basis of better planning.
TVS-Suzuki expects benefits of this media consolidation when they plan to enter the motorcycles market with more 4-stroke models within this year.
The Kinetic groups encompass two main firms: Kinetic Motors, which manufactures scooters and scooterettes. The second company Kinetic Engineering manufactures bikes. Mudra DDB used to handle scooters, Grey Worldwide for motorbikes, and Euro RSCG for mopeds. For Madison this means the buying commission of about 2.5 per cent plus a 1 per cent planning commission and performance incentives.