A Million Wild Hogs: How to ride a brand through emerging markets

We first saw an Italika motorcycle a couple of years ago on the streets of Merida, Mexico. It looked sharp, if a little small - but for the streets of Merida, small is good. We got the unsubtle link to all things Italiano but didn't get the spelling with a 'k.' We guessed it was a Russian import with a slightly off center attempt at brand association. Good looking product, questionable brand name.

We were wrong - the bike is made in Mexico from Chinese parts and the brand name is probably the least influential of all the components in its marketing. Italika was created just 5 years ago and is produced and marketed by Grupo Elektra, owned and run by Mexican billionaire, Ricardo Salinas. Italika has become the leading motorcycle brand in the country selling one million units since it began, now boasting a 55% market share .

So why the success? Because of product quality? It's OK but it's probably not the best bike in Mexico, not even in its class. That distinction may go to Bajaj, an Indian import. How about price? Well, it's certainly priced well, starting at under $700 USD - but so is Bajaj. Is it promoted well? Pretty well; and in fact it has a little edge on the competition here because it gets a discount on advertising at TV Azteca, Mexico's second largest channel which is also owned by Mr. Salinas.

But it is in placement that Italika really starts to benefit. That's because it is sold, not only through free-standing dealerships but in over a thousand Elektra department store retail outlets, a chain also owned by Mr. Salinas.

And Italika's biggest advantage comes from Mr. Salinas' savvy for people. Because in Mexico, Electra stores are well-loved - not only because of their offerings of furniture and electronics at prices affordable to middle and lower-middle incomes - which is how Mr. Salinas really started the growth of his empire - but because they offer banking, via Banco Azteca which of course Mr. Salinas also owns.

Banco Azteca, despite very humble appearances, provides customer service that most North American banks talk a lot about but really only mean to be conceptual. At Banco Azteca, for example, ordinary customers don't only get to see 'the big green comfy chair' on TV - they can actually sit in it while they wait for the next teller - and then they can buy the chair if they want! Consumers can walk up to the counter and buy and sell silver - real silver, not certificates - immediately and at every branch. And yes, you can trade your jewelery. Heck, Banca Azteca even makes loan decisions by sending loan officers to people's homes for a look rather than on the basis of paper applications.

Best of all, Banca Azteca allows motorcycle buyers to spread that $700 purchase price over two years in weekly payments. Now that's what people like - a way to pay for something they like.

That's people connecting with people. And that's how to ride Italikas - and any other brand - through emerging markets.