Advertising & Promotion: Hero Honda is enhancing the A&P budget byaround 35 per cent from Rs 41 crore in 1999-2000. Apart from concentratingon mainstream Splendour-- the world's largest selling bike-- and upscale CBZmotorcycles, Hero Honda has identified ``soft areas'' like services andspares parts for the purpose of intense communication. The creative accountof all Hero Honda brands rests with HTA.

Hero Honda is also planning a major campaign to re-launch the restyledstep-thru Street Smart.

While customer references-- and not media strategy-- are expected to support theCD brand sales, Hero Honda will look at social areas -- like civic issues,association with NGOs, contribution to greener causes-- for corporatecommunications.

The corporate campaign will be largely complemented by on-ground initiativesunder the umbrella brand of ``We Care'', incorporating activities in thearena of community services, safety and services programmes,tree-plantations and environmental-friendly projects.

In line with Honda's worldwide, safety riding programme, this fiscal HeroHonda will take the riding programme-- where trained personnel will giveriding tips to bike owners-- to over 100 dealerships across 90 towns.

Sports & Entertainment: In sports promotions, Hero Honda will stickto cricket (following title sponsorship of the World Cup last year, it hassigned a three-year contract for Hero-Honda-Salve Challenger Trophy) andgolf (it will continue with Hero-Honda Masters Golf).

Moreover, after a successful association with movies-- last year it signedPyar Mein Kabhi Kabhi starring Dino M and Twinkle-- Hero Honda is in theprocess of identifying title sponsorships of youth-centric movies.

Says Sobti, ``In terms of media exposure, we are looking at sports, moviesand news. Niche channels are also worth putting your money on.'' For theCBZ, this year it is planning to run commercials in youth channels like MTV;Discovery and Star Movies.

The Target: ``Services will be a major differentiator,'' says Sobti.``The campaigns will highlight the high level of services and automatedfacilities at our dealerships.'' Hero Honda is expecting a 30-35 per centgrowth in spare parts revenue, which accounted for Rs 100 crore in 1999-2000.In the new fiscal, Hero Honda is aiming to take the sales of Splendor from40,000 a month to 50,000 a month; CBZ from 4,500 a month to 5,000; and a10-15 per cent growth in CD and CD-SS brands up from 25,000 a month now. There-launched step-thru Street Smart is expected to account for around25,000-30,000 in the first year.

Dealership Expansion: Hero Honda will add 25 more dealers and 50service stations to build a network of 575 dealership-cum-service points(including 400 dealerships) across the country.

The level of investment in an automated Hero Honda service station isexpected to be around Rs 10 lakh, apart from land and building. ``No dealerhas any problem in expanding business,'' says Sobti. ``We've tied up withCitibank and Centurion to provide bill discounting through our dealers.''Consumer Finance: In order to focus on organised consumer financing, HeroHonda tied up with Tata Finance a week ago. This is Hero Honda's secondtie-up following Centurion, which is accounting for around 3,000 bikes a month through 100 dealerships.

``We've got a good internal rate (based on IRM), which is standard acrossthe country,'' says Sobti. ``These finance companies bring refreshinglycustomer-friendly focus to our organisation.''

With Tata Finance, Hero-Honda's reach will be extended to over 150dealerships.

Also, Tata Finance is expected to add 2,000 bikes a month. Presently, consumefinancing, including non-organised financing, contributes around 20,000 HeroHonda bikes a month. Gauging Consumer: Hero Honda is chalking out a customerrelationship programme, which is expected to be established in the nextthree years. ``We're discussing with Result McCann,'' says Sobti.

The programme will initially attempt at building relationships with HeroHonda's top three to five lakh owners, out of its customer base of threemillion.

This fiscal, Hero Honda will also commission CSMM to undertake customersatisfaction survey across 25 cities. The Rs 25-lakh project is by farHero-Honda's most ambitious following an IMRB study two years ago.