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LML Vespa - Brand History


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A case study in short describing the life history of the Brand LML, Thought to share it before it reboots in India. Cheers!

Published in: Business, Automotive
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LML Vespa - Brand History

  1. 1. By: Deepankar Kapoor, SIMC
  2. 2. Vespa is an Italian line of scooters manufactured by Piaggio. The Vespa has evolved from a single model motor scooter manufactured in 1946 by Piaggio & Co. S.p.A. of Pontedera, Italy—to a full line of scooters and one of seven companies today owned by Piaggio—now Europe's largest manufacturer of two-wheeled vehicles and the world's fourth largest motorcycle manufacturer by unit sales. Known for their painted, pressed steel unibody which combines a complete cowling for the engine, , a flat floorboard , and a prominent front fairing , The Vespa was the first globally successful scooter.
  3. 3. <ul><li>Vespa first came to India in 1960 with a collaboration with Bajaj Auto. </li></ul><ul><li>The technical collaboration ended in 1971 and Bajaj and Vespa parted ways. </li></ul><ul><li>Vespa at that time was considered an iconic scooter brand globally and the brand was owned by Piaggio. </li></ul>
  4. 4. <ul><li>Piaggio then joined hands with the Kanpur based Lohia Machines Ltd ( LML) in 1983 and started to roll out the Vespa range of Scooters. </li></ul><ul><li>By that time Bajaj was ruling the market with the iconic Chetak . </li></ul>
  5. 5. <ul><li>Launch of LML Select in 1993 was an instant success. </li></ul><ul><li>The company also revamped the NV series which began to shore up the volumes. </li></ul>
  6. 8. <ul><li>LML Sensation </li></ul><ul><li>LML Trendy </li></ul>
  7. 11. <ul><li>A labour unrest at the Kanpur plant proved to be the last nail. </li></ul><ul><li>In 2006, LML closed down the operation of its Kanpur plant. And it was the end of Vespa Scooters. </li></ul>
  8. 12. MYOPIC
  9. 13. <ul><li>See the sweeping changes that was happening to the two wheeler market. </li></ul><ul><li>LML was not able to upgrade the scooters since the JV with Piaggio was called off. </li></ul><ul><li>It was also reeling under severe financial crisis. </li></ul><ul><li>These coupled with the shift in focus to motorcycles paved the way for the death of this stylish scooter. </li></ul><ul><li>LML still manufactures and exports Vespa to US where it sells as Stella and also to UK. </li></ul>
  10. 15. <ul><li>The problems with most JV's happen with the issue of control. </li></ul><ul><li>While Indian partners want technology, seldom does Indian entrepreneurs want to lose control over their companies. </li></ul><ul><li>During the licence raj , foreign partners used to succumb to this because there was no other way to enter the Indian market. But post - liberalisation, Indian market is a level playing ground. </li></ul>
  11. 16. <ul><li>Indian business either have to shore up their investment in R& D or may have to negotiate hard with the JV partner on power-sharing. </li></ul><ul><li>Piaggio have a presence in Indian market in the three-wheeler segment. </li></ul><ul><li>The resurgance of scooter market has inspired Piaggio to re-enter the Indian market with the Vespa brand. </li></ul><ul><li>According to news reports, 2009 may see the re-entry of Vespa once again to India. </li></ul>
  12. 17. <ul><li>Bibliography: </li></ul><ul><li> </li></ul><ul><li>FCB Ulka Webpage </li></ul><ul><li>Youtube for the LML Select TVC </li></ul><ul><li> </li></ul><ul><li>Brand Reporter </li></ul>