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In the 1950s, there was very limitedproduction of scooters in India. Scooters werebeing manufactured only by AutomobileProducts of India (Lambretta) and BTC(Vespa). In those days, there was a hugedemand for scooters in India and a shortageof supply. In 1972, Kinetic Engineering Ltdentered the Indian scooter market. In the1980s, Bajaj scooters had more than a 60 %market share in the scooter segment...

Vespa in India

In March 2012, Piaggio launched the Vespa scooter at a price of Rs 66,661 positioned at the premiumend of the Indian scooter market. It invested over $30 million in setting up a manufacturing plant atBaramati to produce 150,000 units per year. Piaggio focused on the Vespa's heritage and uniquevalues and on sustaining the brand image of the Vespa through its communication strategy. TheVespa had a 125 cc engine of superior technology and a 3 valve engine that no other product in theIndian scooter segment provided. Though technologically and performance wise, the Vespa scooterwas superior to other products in the Indian scooter segment, Piaggio pitched the Vespa only as alifestyle statement...

Marketing Strategies

In 2012, with its re-entry, the Vespa aimed to connect with the youth. It created a digital campaign in

collaboration with OgilvyOne Worldwide and Meridian Communications . As part of the digitalcampaign, Piaggio created a 'Once upon a Vespa' contest. This contests prime focus was on givingthe brands origin, its effect on the global two -wheeler market, and its impact on the popular culture.This contest provided participants an opportunity to win a trip to Italy, Vespa scooters, and otherprizes. It educated Indians about the Vespas rich heri tage and culture in a fun way...

Pricing

The Vespa was priced at a 15-25% premium compared to competing scooters like Honda Activa,Suzuki Access, and Mahindra Duro. The price was close to 40% higher than that of a basic scooter

available in the market. Experts pointed out that only the Vespa model was priced approximately atRs.67,000, with the on road price coming to about Rs.78,000. Experts commented that the productwould not be sold on the basis of mileage or resale value and sighted that price preferred when therewas a competition among brands, Vespa brand developed on the realms of fashion and lifestylestatement...

Future Outlook

In India, there was a clear differentiation made between the premium and economy segments in boththe car and motorcycle markets. Experts said brands such as Harley Davidson and Triumph were

considered as premium motorcycles and these in general had much larger engines and were superiorin performance. In India, motorcycles like the Rajdoot and the Royal Enfield had garnered a premium

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image with the associated retro feel. Vespa aimed at achieving something similar with a retro feel andan Italian scooter image...

Segmentation

The psychographic and demographic profile of the target consists in young businessmen and women, with an age between 18 45 years, medium to high educated,belonging to middle to high class income, characterized by combining utility with funand style.

Positioning

Vespa in India as a lifestyle, iconic, timeless and ageless product' when the first 125ccgearless scooter is launched in April 2012.

It wants to focus on its heritage and unique values'.

Targeting

Young working professionals and educated audience Also retired people It targets more of women as its a ease for them to drive

Distribution