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Marketing Research On Newspapers
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  5. 5. INTRODUCTION TO THE NEWS PAPER INDUSTRY MARKET RESEARCH NEWSPAPER The newspaper industry has traditionally functioned as a free press in India. The freedom of expression and independence for print media has been ensured in the Indian constitution and the newspapers zealously guard this independence. The Gujarati Daily Bombay Samachar, started in 1822 AD, is the oldest existing newspaper in Asia. The findings of the National Readership Survey (NRS) 2005 show that India's print media readership base has expanded by 10 per cent over the last two years. Since the last NRS survey in 2004, the print media have acquired 17 million more reader’s .The data may indicate that different media need not necessarily substitute one another. According to the NRS estimates, India's vast media industry reaches 180 million readers, 383.6 million television viewers, 189 million radio listeners and six million Internet users. Despite the growth in readership, a majority of India's 428 million literate adults do not read any periodical publication. Besides India's vast illiterate adult population (252.5 million), there are 248 million literate adults who are unexposed to newspapers and to the 180 million who do read publications. Readers from nearly six lakh villages make magazines, in comparison up only 48 per cent of the readership base, although rural India is home to 62,6 per cent of the country's literate population. This could be due to the urban-centric nature of most publications, which may not cater to the interests of rural residents. THE LITERACY LEVEL IS UP.... 5
  6. 6. 2001(in crore) 2004(in crore) % Change Population (12+) 70.0 71.6 2.28 Literate Population 42.2 44.8 5.21 SSC & above 13.6 15.1 11.03 .... BUT THE NUMBER OF CASUAL READERS 2001 (in crore) 2005 (crore) % Change Any publication 23.4 23.7 1.28 Any Daily 22.0 22.6 2.7 Any Magazine 11.7 9.5 (18.8) .... AND REGULAR READERS ISNT 2001 (in crore) 2005 (in crore) % Change Any publication 16.0 15.8 (1.25) Any Daily 14.2 14.5 2.11 Any Magazine 7.3 5.8 (20.5) INDIA'S TOP FOUR ENGLISH (change this bcoz v comparing TOI HT N DNA) 6
  7. 7. 2003 31% 2004 34% 2005 35% Slice 4 0% 2003 2004 2005 TOI 5388 5950 6220 The Hindu 2973 2678 2980 Hindustan Times 2325 2316 2250 Deccan Chronicle 790 962 1165 According to a PricewaterhouseCoopers' study, Global Entertainment & Media Outlook 2004-2008, the Indian newspaper market will grow from $1,869 million in 2004 to $2,404 million in 2008 at a CAGR of 6.9 per cent. 7
  8. 8. The government had changed its media policy in 2002 and relaxed foreign ownership restrictions in the newspaper category. Today, 26 per cent foreign equity holding in news-related print media is allowed, though editorial management must remain Indian. History of Times of India TOI was founded on November 3, 1838 as The Bombay Times and Journal of Commerce, and served the British residents of western India. It adopted its present name in 1861. Published on every Saturdays and Wednesdays "Bombay Times and Journal of Commerce" was launched as a bi weekly editions. It contained news of Europe, America and the sub-continent and was conveyed between India and Europe via regular steam ships. The daily editions of the paper were started from 1850 and by 1861 Bombay Times was renamed as "The Times of India". By 19th century this news paper company employed more than 800 people and had good circulation in India and Europe. Originally British owned and controlled, its last British editor was Ivor S. Jehu, who resigned the editorship in 1950. 8
  9. 9. It is published by India's largest media group, Bennett, Coleman & Co. Ltd. This company, along with its other group companies are more popularly known as The Times Group, which also publishes The Economic Times (a leading financial broadsheet), Mumbai Mirror, the Navbharat Times(a Hindi daily broadsheet), and the Maharashtra Times (a Marathi daily broadsheet). CRITICISMS OF TOI The modelling of sections of the newspaper upon fashion tabloids is a case in point. The group has also been attacked by other media houses in India for its management interference in editorial policy and the policy of selling paid news. The Time Group has drawn some amount of flak for a scheme called "medianet", which other firms can use to purchase editorial coverage in the daily. The ethical problems for the group have been further compounded by allegations of extortion by a journalist employed by the group. The newspaper has at times been panned for its unabashed promotion of inhouse brands owned by its parent company, M/s Bennett, Coleman & Co. Ltd, (such as Femina, Radio Mirchi, Planet M, Times Music). The newspaper has also been accused of overly sensationalizing news stories. An infamous example being the Rift in powerful biz family article, which detailed a rift within the Ambani family. Interestingly, the newspaper was the first to break the news six months before the feud became public knowledge. Their new Mumbai Mirror, an unabashed tabloid parading as a newspaper, is one of today's finest examples of the increasing tendency to glorify sleaze even when real news is available. Though the Times has traditionally tried to portray an image of political neutrality, it has been by and large viewed as a pro-Establishment paper. It tends to vary in its support 9
  10. 10. between the BJP and Congress Party, depending on who holds the reins of the Central Government. Its whole-hearted approval of Indira Gandhi's excessive repression measures during the internal Emergency in the 1970s is not lost on political observers. Since the 80's and early 90's, the Times of India has consistently produced some of the country's finest journalists. INTRODUCTION FOR DNA DNA, the second major newspaper launched in the Indian city of Mumbai in 2005, is an initiative of the Bhaskar Group of Publications, better known for the Dainik Bhaskar - a Hindi language newspaper popular in the central and northern states of India. It is also counted as one of the top five most-read newspapers in the country. Daily News and Analysis was launched on July 30, 2005, after a much-talked about advertising campaign that continued for four months. It is notable that it was launched when the city was in the aftermath of the July 26 deluge, which submerged almost all of Mumbai which received 94.4 cm of rain on just one day. 10
  11. 11. DNA has a strong Editorial Board comprising some of the most respected names in Indian media. Starting with Gautam Adhikari, the editor, the Board also has India's leading cricket writer and analyst Ayaz Memon as the paper's Associate Editor. Memon handles the Sunday edition, along with DNA Sport (daily) and the daily entertainment supplement DNA After Hrs. B Venkat Rao, former resident editor of Indian Express (Mumbai) is the other Associate Editor. He handles the daily newspaper's main edition. R Jagannathan is the Business Editor, and is in-charge of DNA Money. Noted film critic and Hindi film director Khalid Mohamed is the Roving Editor, and handles DNA Glory (the glazed entertainment supplement on Fridays) and Lime Lite (the two pages of movie stories and reviews on Sunday. Sidharth Bhatia is the Opinion page Editor, and is also in charge of the two "Edit" pages on Sunday called Viewpoint and Signature. Bipul Guha is the art director, while Vinay Kamat is the Editor for Special Projects. Arati Jerath is the Delhi Bureau Chief, and is also part of the Editorial Board. Sathya Saran handles Me, a weekly women's magazine that is distributed free with the Sunday edition of DNA. Malavika Sangghvi is the person in-charge of Life 360, a travel and lifestyle supplement. Diligent Media Corporation, which owns DNA (Daily News & Analysis), is a joint venture between two industry majors – the Dainik Bhaskar Group and Zee TV. With a reach of more than 120 countries and access to more than 250 million viewers globally, Zee TV has created a strong brand equity and is the largest media franchise serving the South Asian diaspora with presence in major global markets, including Asia-Pacific, the Middle East, the UK, the US, Canada, the Caribbean and Africa. The Group has transformed itself into an integrated media conglomerate with operations spanning the entire media spectrum. 11
  12. 12. The Dainik Bhaskar Group has soared to the top of the print media industry in India with its flagship Hindi daily, Dainik Bhaskar (India’s No. 1 Daily Hindi Newspaper), and the Gujarati frontrunner, Divya Bhaskar. While Dainik Bhaskar has a big presence in Madhya Pradesh, Rajasthan, Punjab, Haryana, Himachal Pradesh, Chhatisgarh and Uttar Pradesh, Divya Bhaskar is the largest circulated regional daily in Gujarat. Targeted at a young readership, DNA is the voice and soul of Mumbai. Through news, views, analyses and interactivity, DNA provides readers with a composite picture of Mumbai and the world. Its interactive platforms seek to bring the reader and surfer at the centre of its news activity. COMPETITION BETWEEN TIMES And DNA The battle has been joined; the assault on Bennett, Coleman's citadel has begun. Last week, the Dainik Bhaskar group (which is partnering Zee) kicked off a Rs 60 crore (Rs 600 million) outdoor campaign ("Speak up, it's in your DNA") in Mumbai for its yet-to- be launched English daily, unusually called "DNA." It plastered Mumbai with 150 hoardings and 500 kiosks with advertisements, and mounted a campaign on FM radio stations too. But the publishers of The Times of India, The Economic Times and other dailies and magazines had not exactly been sitting idle either. Bennett, Coleman was readying to launch a newspaper of its own called Mumbai-Mirror on May 15 and quickly started hiring journalists from newspapers in the city. 12
  13. 13. Disappointment for DNA DNA, the paper launched with so much advertisements recently in Mumbai (you can find billboards all over Mumbai with ads for this paper, they have come a couple of times to my colony to offer subscription to it, etc, etc). I was very disappointed at it. Well, the paper is cheap, 2.50 rupees for more than 100 pages. But the content, at least the news parts, leaves you quite unsatisfied. The international news consisted of very few items, the two longest about some news in Canada and UK (if I remember correctly) related to India, and a few short items of hardly any importance. The fact that news from abroad are always related to India is something common to many papers here, or at least that is what I feel. A couple, at most three, news items about some Indian achieving something, or some government abroad that has taken a decision related to India, and that’s all you need to know from what happens in the world (according to the papers editors). You can’t find anything about what happens in, for example, Venezuela, or the corruption in Brazil, or …. it just does not exist. Introduction of Hindustan Times 13
  14. 14. The Hindustan Times is a leading newspaper in India. It has its roots in the independence movement of the first half of the twentieth century. It was edited at times by many important people in India, including Devdas Gandhi (the son of Mahatma Gandhi) and Khushwant Singh. Hindustan Times (established in 1924) is the flagship publication of HT Media Ltd. It is has a nation wide reach in India (barring Southern India), with simultaneous editions from New Delhi, Lucknow, Patna and Kolkata. It is also printed from Bhopal, Chandigarh, Jaipur and Ranchi. HT has also launched India's first youth daily HT Next in 2004. The Mumbai edition was launched on 14th July 2005. Other sister publications of Hindustan Times are Hindustan (Hindi Daily), Nandan (Monthly children's magazine) and Kadambani (Monthly literary magazine). HT Media Limited is a major player in the print media in India. It has a leadership position in the English newspaper market in North India and the second position in the Hindi newspaper market in the North and East. The group now intends to consolidate itself as a vibrant and modern media powerhouse through strategic partnerships, ever-increasing scope of operations and a consumer focused approach. Hindustan Times, the flagship publication from the group, was inaugurated by Mahatma Gandhi in 1924 and has established its presence as a newspaper with editorial excellence and integrity. Today, Hindustan Times has a circulation of over 1.2 million and is the fastest growing mainline English newspaper in terms of readership. Hindustan Times, Delhi, is India’s largest single-edition daily. In July 2005, Hindustan Times made a successful entry into the commercial capital of India – Mumbai. 14
  15. 15. Hindustan Times has continuously evolved itself to meet the needs of the global Indian consumer. Changing with the times, it introduced the compact web-width format that has now become a norm in the industry. It has recently undertaken a complete redesign to sport a new, international look. Hindustan, the Hindi daily from HT Media Limited, is one of the leading Hindi dailies in the country with a readership in excess of 10 million. This makes it the fourth largest read daily in India. The group's news portal HindustanTimes.com, with over four million unique visitors and 90 million page views per month, is one of the largest news portals in the country. It has consistently been ranked amongst the top 10 news sites in the world by Forbes and offers in-depth coverage and analyses to its users. The group recently entered into an MOU with Virgin Asia to enter the emerging radio space in the country. 15
  16. 16. MARKET SHARE OF TIMES OF INDIA According to the survey of year 2005, Times of India holds the highest market share i.e. (35%) amongst the newspaper industry. Both DNA and Hindustan Times are essentially competing for the No. 2 slot in the market. The Times of India is too old and established to be overthrown in the short term. With a six lakh circulation, it was far ahead of earlier competitors like Indian Express (58,000). In fact, it was The Economic Times (1.47 lakhs) and Mid-Day (1.40 lakhs) that trailed in second place after The Times of India in Mumbai. While there are varying estimates on how the new newspapers are doing, market sources estimate that DNA sells around two lakhs and Hindustan Times 1.40 lakhs. However, DNA claims that it is printing 2.90 lakh copies and Hindustan Times says it sells 2 lakh copies. Though The Times of India claims that its circulation remains the same, a newspaper agent says that its counter sales have reduced by 40,000 to 50,000 copies from last 2 years.” It’s probably because other newspapers are half the price, while the content is not very different. "In the next few years, Mumbai's market will expand by up to 75 per cent, with even The Times of India growing," says Meenakshi Madhvani, Managing Partner of Spatial Access media solutions. "Delhi has a slightly lower population than Mumbai, but there are 12 lakh [copies of] English newspapers sold there as compared to only 7.5 lakhs [copies] in Mumbai. There will be dramatic market expansion in Mumbai in the upcoming years. 4 Ps of TIMES OF INDIA 4 Ps: Product : Newspapers cannot be called totally a product but its a service product which provides information. Its supplement products are as follows: Bombay times, times international, times accent, times drive, education times(Tuesday and Thursday),times classified, times matrimonial(Sunday),Westside plus, times property, times wellness, Rouge(Sunday). Price: 16
  17. 17. Rs 4 Monday-Saturday (including free mumbai mirror of Rs 2 ) Rs 5 Sundays Place: 10 cities mainly…… Promotion : The Times of India is a very well established brand. Though, every successful or unsuccessful brand requires continuous advertisements to remind people of their existence. It mainly promotes itself in theatres & print ads(newspapers). 17
  18. 18. MARKETING STRATEGY. Why has Mumbai's lethargic newspaper industry suddenly become a `hot market' for new competitors? First, because it has the country's largest advertisement revenue of Rs.1,000 crores, of which only one player - The Times of India - has the lion's share. The new entrants are vying for a piece of the pie. The Times of India's advertising rates are the highest in the country. For long, advertisers have felt that they have been held to ransom as they have no choice but to pay exorbitant rates to The Times of India in order to reach Mumbai's upmarket consumers. Now, there are other platforms, but they will have to prove themselves before advertisers start considering them an option. "Advertisers are happy that there will be competitors. But, there won't be a dramatic shift in ad spend in the short term. Only when any of these newspapers cross 50 per cent of The Times of India readership, will they claim a place in any advertiser's media plan," says Himanshu Shekhar, Investment Director of Mindshare Fulcrum, a leading media planning agency. At present, DNA and Hindustan Times' advertisement rates are around one-fourth that of The Times of India. Months before DNA and Hindustan Times launched in Mumbai, The Times of India went on the defensive and started a new `compact' newspaper, somewhat like a tabloid, called Mumbai Mirror. But it did not sell much, so The Times of India started distributing it free with the main newspaper. Now, for Rs.4, The Times of India reader gets more than 100 pages. "We always knew that there was space for a second newspaper in Mumbai, and so we started an alternative to broadsheets - a compact. By including Mumbai Mirror with The Times of India, we are improving the price performance ratio of our brand," says Bhaskar Das, executive president of The Times of India group. "The Mirror is a newspaper for the new generation who want news-on-the-go like McDonalds. It's for the supersonic age where people want to scan news without going into too much depth. is essentially a `blockading' strategy - you flood the reader with so much that he/she does not feel the need for another newspaper. "A normal reader spends 20-25 minutes on newspapers. Do you think he/she will spend more time reading just because there are new newspapers?" asks Das. The Times of India readers are suddenly seeing a lot more news in a paper that once gave news a back seat to fluff. "The TOI has also taken a lot of rear guard action by beefing up its coverage. New competitors have raised the bar," says Das. Moreover, both The Times of India and Mirror went on a massive recruitment of journalists and media executives at high salaries, mopping up manpower and making it more expensive for their competitions to recruit. But advertisement rates are as expensive as ever, around four times that of DNA or Hindustan Times What seems inevitable, however, is that circulation will expand. "Around 40 per cent of Mumbai's population speak, read and write English, of which only 20 per cent are buying English newspapers," says Shekhar. As Girish Agarwal, Director of the Bhaskar group that owns DNA, points out, "We believe in widening the market, like we have in all the cities that we have launched newspapers and become the leader. Since the time we started 18
  19. 19. Divya Bhaskar in Gujarat, readership there has increased by 49 per cent in two years and ad revenue also increased by 40 per cent." Why has Mumbai's newspaper industry been stunted for so long? "The demand for newspapers is extremely price sensitive. Until now, The Times of India was way ahead of the competition. So, it had a high cover price and didn't push for greater sales, because that would increase their costs (since the cost of producing a newspaper is much greater than its market price). They didn't need to increase circulation, since they anyway milked all the ad revenue," says Madhvani THE new newspapers are priced much lower - Hindustan Times at Rs.2.50 and DNA at Rs.2 - which have boosted initial sales. "Generally, the price of an English newspaper in every city is around Rs.2, only Mumbai was an aberration where The Times of India was priced at Rs.4. However, now they have tried to increase their value proposition by adding a second free newspaper to The Times of India," says Sandip Ghose, Vice- President, Marketing, Hindustan Times. DNA's vice president, Sales, N.B. Verma, says: "We want as many people as possible to sample our product, so we have kept the price low." The Bhaskar group, which has established several successful Hindi editions and the Gujarati Divya Bhaskar, has always followed the strategy of reaching out to readers through surveys, flooding the market, distributing freebies. Surprisingly, DNA's counter sales are giving the afternoon tabloid Mid-Day a run for its money. But, as a newspaper agent points out, a vendor stands to earn 45 paise more per copy if he sells DNA in the raddi (recycled paper) market, rather than selling it at the counter at Rs. 2. So, are the new newspapers really offering the reader anything different? Hindustan Times says it is targeting the `discerning' reader who wants more than `regurgitated headlines' and page 3. "We are trying to engage people in a dialogue, and create a product that is uniquely Mumbai. Hindustan Times takes up Mumbai's issues without dumbing down the content or making it tabloidish," says Ghose. With fewer pages than its competitors, Hindustan Times' layout, more classical and less cluttered, does look different. DNA, with different business, sports and lifestyle sections, says it is trying to make newspapers more accessible to readers. "Ours is a family newspaper that offers value for money. In our paper, we clearly differentiate fact from fluff. Readers want both, but they are not mixed together. We have recruited the best journalists for our team," says Agarwal. "We have a lot of city news which reach out to the younger but informed audience. In fact, we even have a page called `Speak Out' where readers can write in," says Gautam Adhikari, editor of DNA. The Indian Express is emphasising its USP - `Journalism of Courage'. As part of a campaign called "India Explained, India Empowered", it has got several prominent leaders including the President, Prime Minister, former Prime Ministers and film actor Shah Rukh Khan to write columns on the front page describing their idea of an `empowered' India. 19
  20. 20. The Times of India, while maintaining some of its fluff, has become far more news- oriented and also more colourful. "Our newspaper is aimed at empowering the reader. We are not into crusading or agenda journalism, but are still doing investigative stories on issues that matter in our reader's life," says Das. "With all the new newspapers coming in, the reader is the ultimate winner because everyone is splurging to gain his/her attention." 20
  21. 21. THE SURVEY DONE BY US: A survey of 60 people has been done by us on Times Of India. The following are the questions: 1. Which newspaper do you read? TOI - 35 ET - 20 MDY - 18 M M 20 DNA - 4 OTHERS - 3 21
  22. 22. 2. In which language do you prefer the newspaper? ENG - 42 HND - 6 RGNL - 5 Slice 4 3. Do you read Times of India? 22
  23. 23. Yes- 43 NO- 8 Slice 3 Slice 4 4. Are you satisfied with the news content of Times of India? 23
  24. 24. YES- 29 NO- 5 NOT MUCH- 18 Slice 4 5. On what topic should Times of India emphasize more? 24
  25. 25. POLITICS21 ENTERTAINME NT- 23 SPORTS- 10 BIZ- 19 HEALTH-10 LIFESTYLE- 12 6. Do you want Times of India in tabloid form or the way it comes? 25
  26. 26. Tabloid- 17 normai- 27 unique- 8 Slice 4 7 Your take on advertisements in Times of India? 26
  27. 27. MORE- 9 LESS- 9 APPROPRIATE- 35 Slice 4 8. Do you want prefer b/w or colourful newspaper? 27
  28. 28. B/W- 9 COLOURFUL- 43 Slice 3 Slice 4 9. Do you want news with more pictures? 28
  29. 29. yes- 39 no-12 Slice 3 Slice 4 10. Do you like supplements or everything in one main paper? 29
  30. 30. supplements- 25 no supplements- 26 Slice 3 Slice 4 11. Do you think Times of India provides accurate facts and figures compared to others? 30
  31. 31. YES- 24 NO- 9 Can't say- 19 Slice 4 12. How many people in the family reads Times of India? 31
  32. 32. 1 2 3 ALL 13. Is the price of Times of India reasonable? 32
  33. 33. YES 36 NO- 16 Slice 3 Slice 4 14. Rate Times of India on a scale of 10? 33
  34. 34. 5 6 6 to 7 7 to 8 8 9 10 Strength Weakness Opportunities and Threats Strength of Times Of India over DNA and Hindustan Times Distribution Strategy sells at Rs 4 in Mumbai 40 per cent – or, around Rs 1.60 – goes to the hawkers Because of the above two reasons DNA and HT have to follow the same strategy 34
  35. 35. Subscription drive of Bhaskat group- joint venture of DNA is very aggressive. It has proved successful in states like Gujarat Rajasthan and Chandigarh But TOI has the strongest distribution Pricing Strategy TOI charges Rs.5 but gives many supplements with the main paper for free DNA and HT false short here as nobody will be ready to pay the extra supplements along with the main paper which is for Rs.5 The other papers can’t even lower their price tags as the publishers pockets will be cut ADVERTISING REVENUES TOI has a very good customer loyalty. TOI spends a lot in advertising space but it delivers results too DNA and HT will have to try hard to get this kind of customer loyalty Mumbai is the biggest ad market in the country. English language publications account for about 70 per cent of the Rs 815 crore market and The Times of India bags almost half this sum. AD revenue from Mumbai’s point of view: 35
  36. 36. Strength Of Times Of India In Comparison To MID DAY Mumbai Mirror is India's first compact newspaper being more of a tabloid than anything else in the city of Mumbai Whereas Midday has ‘classifieds’ which consumes quite a portion of the paper. The news paper was launched at the gateway of india by vilasrao deshmukh, chief minister of masharashtra on 29-5-2005 The Mumbai Mirror was launched by The Times Group after Hindustan Times and DNA announced plans to enter the Mumbai market TOI offers Mumbai Mirror free of cost. So Midday has a big dilemma here Mumbai Mirror was a total flop but TOI with its good marketing strategy is taking over Midday’s market share Rs crore Total revenues 815 English 568.50 (70%) Vernacular 246.50 (30%) Newspapers 717.20 (88%) 36
  37. 37. The future of newspapers: Now there’s a question that effortlessly divides people into one-and-a-half groups with the first group – the overwhelming majority till now – refusing to let go of the ‘feel’ and ‘texture’ and ‘crinkleness’ and whatever the hell else there is that contributes to the overall tactile fluency with which news emerges out of newsprint. Of course there’s no doubt that the reading of papered information is a deeply associated emotional experience that cannot easily be replaced by some digital gimmick, no matter how portable, handy or higher-than-tech. This is true. Just like digital readouts on wristwatches, which, even after making an enormous initial fashion statement, ultimately failed to overthrow the older and more traditional analog timekeepers. That’s because to the first group, hours, minutes and seconds had always been associated with hands. However, here’s something frequently overlooked: typists didn’t go out of style with the electronic keyboard revolution. Sure, they didn’t take to mice as effortlessly at first but keying in stuff was seamlessly incorporated into their fingertips without a murmur. The reason? It was an all too obvious improvement on clackety-clack. Similarly, some newfangled handheld laptop-like gizmo – no matter how slim or chic – is never going to be able to defeat a tradition. Only an enhancement will. When the broadsheets you hold between your hands as you sit on your favourite throne, feel and 37
  38. 38. crinkle with familiarity yet are actually large wafer thin monitors that are permanently online and therefore continuously updated, will you accept it with grace. Especially since this will not spell the end of the newspaper industry at all because people from reporters to rewriters will still have to be around to process the feed being sent to your output device. It will, however, spell the end to cutting down trees to make paper. (And get this: touch on an automobile ad and every model the maker produces comes on view – with full streaming video and audio. Touch the one you want for complete specs, options, warranties and pricing preferences. Test drive it right there on speciality tracks to your specifications like in video parlour game rides. Like it? Enter your credit card number now.) 38