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Ducati Strategic Analysis
EXCECUTIVE SUMMARY
The economy has changed and we are living in the information era where customers are everyday more and more informed, more sophisticated, and more demanding. Ducati faces a great challenge which is the one to react to fast changes and to select the adequate strategies that will allow it to do so.
Through our project we intend to analyse the current trends of the motorcycle industry, where it is heading and what place Ducati occupies in it. Once we understand the whole picture we will go in depth, analysing it and decomposing it into bits and pieces to better understand why it occupies this place, and what strategies it must take to maintain and improve its position and itself as a whole.
INDUSTRY ANALYSIS
In order to provide a deep and complete analysis of the Motorcycle industry we provide an extended Porter’s five forces framework, because as we know this framework has several flaws and we have reinforced it with the factors we think affect the industry and alter its profitability.
SEGMENTATION
The market can be divided into 2 categories men and women. In the category of men Men: Men under 30 group accounts for 44% of all sales. Therefore, a great opportunity exists here because of the group's size. This group's members buy motorcycles for their transportation and recreation needs. Men in this group buy more of mopeds, scooters and entry level lightweight road bikes. Men between 30 and 50 makes up 45% of buyers. The motorcycles most frequently purchased are the heavyweight tourers and cruisers. Many buyers are married couples looking for an alternative to taking the car out for weekend drives to the country. Men over 50 group accounts for about 11% of motorcycle sales. The heavyweight touring class and the middleweight road bike categories account for most of the sales here. Women group is a segment that is growing at a fast rate, and represents an opportunity area.
PRODUCTS
Three types of products and services are being offered in the motorcycle industry: motorcycles, accessories, and financing services. But te main products are motorcycles. which includes mopeds or scooters (125cc), accounting for about 17% of total motorcycle sales; lightweight motorcycles road bikes, dirt bikes, dual purpose bikes (1255cc to 499cc), accounting for 51% of sales; sport motorcycles street bikes, and...
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...so they create customer loyalty. Fifth, increase our production efficiency by rationalizing manufacturing processes, reducing complexity and implementing a “platform” approach. Sixth, and most important for the future of Ducati is to develop an internet business by creating an internet site (www.ducati.com) where you can look at the catalogue for motorcycles, spare parts, the latest racing news, a virtual Ducati museum and contacts for local dealerships. the Internet business should be a separate subsidiary focusing on our Internet initiatives and the on-line strategy should aim to leverage the Ducati brand and racing heritage with the goals of increasing sales opportunities, operating efficiencies. information and a community space for Ducati enthusiasts. The E-Commerce should be developed in two main channels : Business-to- and Business-to-Business-to-Consumer
Bibliography:
1. www.hoovers.com
2. www.ducati.com
3. Unicredito, Ducati outperformer company update. 2 december 1999.
4. Jelassi, Tawfk. Embarkin on e-business at ducati motorcycles (Italy). June 2001
5. Edge, Dirck. Ducati following Ferrari success strategy? (www.motorcycledaily.com)
Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles, boats, and other recreational vehicles, in comparison to its competitors. The motorcycle insurance sector is a 10.4 billion dollar industry and growing (PRWEB, 2012). The U.S. Department of Transportation website reports some astounding figures, including that 5,370,035 motorcycles were registered three years before the article, 7,138,476 motorcycles registered at the time of the article, and grew to 9,477,243 registered motorcycles at the end of 2012 (NHTSA, 2013). It is obvious as to why Allstate would identify motorcycle insurance as a worthy lifestyle product to devote marketing research dollars into in order to develop new strategies for cornering a share of the market.
Motorcycle is also called motorbike is a two or thee wheeled vehicle powered by a petrol, diesel, engine mounted midway between the front and rear wheels. The motorcycle, which is having much heavier and stronger, frame than that of a bicycle. The motorcycle is developed from the bicycle. The people for their convenient and smooth travel for the recreation and sports purpose use the motorcycles. The motorbikes are used throughout the world, the police and the fire department use motorcycles to carry medical personnel to accident scenes. Before the 20yrs ago a motocycle was carried for the noise, dirt and frequent breakdown which the use of its entailed. It was then truly a sportsman’s machine and of little use in the commercial field.
...es how powerful of a symbol it has become. You wouldn’t consider the fact that someone drives a Honda Accord a defining characteristic of his or her identity but somehow that changes when it becomes a Harley Davidson Heritage Softtail. "Four wheels move the body two wheels move the sole" (Harley Davidson Ad/ 1992). It becomes clear that the motorcycle is much more than a vehicle; it is a manifestation of American values. When you break it down nothing seems more American that freedom, and brotherhood. Film has fully capitalized on these characteristics helping make the motorcycle a powerful image that has had a defining impact on American culture.
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
External Opportunities • More people (94%) have new requirements for bicycles; the customers need bikes in different fields. • The popularity of Lance Armstrong has increased the interest on road bike, which represent 5% of the market. • The growing interest in cycling this is result in magazine coverage and the using of bikes and accessories in window displays that related to cycling.
"Harley-Davidson: At Last" as presented in Hartley's Marketing Mistakes and Successes presents the circumstances around HD's near collapse and since rinse to near mythic success. This case is a great example of marketing myopia; HD saw them-selves as full-size motorcycles' manufactures, not in the transportation, or even the entertainment industry. They believed no one bought motorcycles for transportation, but rather for leisure time use.
Young males, and females are buying HD motorcycles over any other competitor. This thought was accomplished through the introduction of the VRSC’S, and the lower and narrow Sportsters, Dyna’s, Softail’s and positioning them in the market to a younger demographic. Secondly, HD needs to position the VRSC’S, Sporster, Dyna and Softail to also appeal to first time buyers of motorcycles.
Despite their conception in 1903, Harley-Davidson and the motorcycle industry as a whole didn’t really take off until after the Second World War. Many people rode motorcycles during the war, with Harley-Davidson themselves supplying almost 90,000 motorcycles for the U.S. military during this time. Many veterans chose to purchase motorcycles upon returning home, as they enjoyed riding during the war and wanted to continue riding in their civilian life. This generation known as the "baby-boomers" quickly became the main target audience for many of Harley-Davidson’s marketing efforts. With sales increasing and the industry growing, many "motorcycle clubs" and "rallies" were introduced. Unfortunately, due to the lewd behavior displayed by most people associated with these clubs and rallies, bikers typically had an image of being disorderly and raucous. Harley-Davidson’s image itself took a big shot due to the Hells Angels. This was a motorcycle gang wishing to become notorious for "drug trafficking and other organized crime activities," who used only Harley-Davidson motorcycles. All of this combined to lead to a decline in demand and sales throughout the entire industry during the 1960’s. The industry was really helped out with the release of the Hollywood film Easy Rider in 1969. This film helped change the public’s perception of bikers and sparked an increase in motorcycle demand which has lasted to this day.
James, W. B., & Graham, B. (2004). Strategic change in the face of success? Harley-Davidson, Inc. Strategic Change, 13(4), 205.
"We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments."
Italian manufacturer Piaggio ranks as one of the world’s top four players in its core business. It has consolidated leadership in the European 2-wheeler market. Piaggio should not miscalculate its competitors. Competition in the industry is very powerful, not only nationally but internationally as well. This is due to two well-established companies in this sector which are the Japanese Yamaha and Honda. Yamaha and Honda strengths are their long-run experience in the sector and the high quality image of products. Due to participations to the motorcycle championships, these two companies constantly receive positive feedbacks to their efforts in researching for first class products. In the future, other kinds of competitors are expected to arise: Chinese companies whose ability to imitate and create similar products at highly competitive prices is getting more and more dangerous (Piaggio, 2008)
This paper takes a look at the ways in which the ideas of Fordism and Taylorism helped the success of the U.S motor vehicle industry. The motor vehicle industry has changed the fundamental ideas on the process of manufacturing and probably more expressively on how humans work together to create value.
Honda, like other automotive companies, also came to the conclusion of firming a joint venture. At the moment, Honda was already famous for motorcycles in UK, but it was less well known in terms of the automobiles. While Honda’s cars enjoyed reputation for good quality and durability, the import restrictions limited its success it the European market. However, the European market was essential for the company’s global expansion. With the joint venture, Honda could avoid the restrictions on the import quota by assembling cars locally, because these cars would be considered locally produced. Moreover, a local partner could assumedly offer a better insight of the market.
Motorcycle Cruiser. Shop Talk, 24 May 2009. Web. The Web. The Web.
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.