Ducati’s Brief
As my opinion, the Ducati should enter the cruiser market, to establish a foothold in the Bike industry and to gain relevant profit level, and double-digit growth in the industry.
The Ducati can capture the cruiser market on the basis of some strong reasons, which are the brand loyalty of Ducati and its product differentiation from its competitors. They have to invest heavily on R&D; due to this, its growth rate and profitability will increase.
Should Ducati enter the cruiser market or they just concentrate on its sports bike segment?
The Ducati will get success on its entrance in the cruiser market, which is the Harley Davidson niche market and also a profitable segment in the motorcycle industry, because of Ducati’s brilliant history and great experiences in the bike industry. The Ducati can attack the Harley’s cruiser niche by using its brand loyalty, goodwill, and differentiation strategy; because, before 2000, the Harley-Davidson was the sole producer of cruiser bikes and their other competitors was involved in different segments such as Off-road, Touring, and sports segments. So, the Harley
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was the only producer to enjoy the profits of cruiser market. As, it necessary for Ducati to create competition in the cruiser segment and should provide choice for its customers, which is the opportunity for Ducati to expand its market and increase its market share.
So, the customers will be able to buy the cruiser bikes on its choice on competitive price and quality. The Ducati should focus on its production and distribution strategy to improve the average quality of dealers, and create and expand the chain of Ducati Stores inside and outside of the country. As, Ducati is new in the cruiser market, so they should focus on innovations and technological advancements, and also maintain its internal R&D and design, products standardization. And they should also introduce new stylish and comfortable design of cruiser bikes than its market rivals, to give tough time and more competitive conditions to Harley
Davidson. So, to increase the profit level and growth rate, Ducati should more concentrate on the spare parts and accessories of bikes rather than a complete vehicle in the relevant segments. Because it is helpful in maintenance of bikes and increases the bike’s life, which would result to increase the brand loyalty and ultimately increases its market share. Through direct dealing and effective marketing will prove a better approach for attracting customer’s interest in the cruiser market. The Ducati should implement the Japanese manufacturing techniques and also maintain and expand its museums, racing events, and advertisement strategy to create awareness about cruiser bikes in the geographical markets.
Here starts the tale of how a (LEGEND) came to be. In 1903 William Harley along with Arthur and Walter Davidson of Milwaukee,WI began experimenting with an internal combustion engine in a small wooden shed, amazingly the shed doesn’t burn down and the motorcycle that was built in it goes over 100,000 miles under 5 owners. And that was just the beginning, soon after that first bike being built; it began to happen. A cheap reliable form of transportation was needed in the country. Henry Ford’s automobiles were a little expensive for the average family. So a niche opens up for the motorcycle. Though there was no cutting- edge technology in their design, it worked. The trio had just brought a single cylinder engine (based on a DeDion design) and tube type bicycle frame together. Painted in gloss black, that first machine was admired by friends and family - now it gets interesting.
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.
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.
If DMC loses Hamilton, other than lost dollars, which doesn't seem to be significant, DMC could lose brand image and reputation as a result of being downgraded in the industry. This could be worse than lost dollars. In addition it could lose the industry by losing the leader of the industry. Although this market is a small slice of DMC's revenues, one cannot afford to easily lose market share. In addition, this could have spill over affects in it's other markets when it circulates that DMC was a "failure" in one market.
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.
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)
Honda- focused differentiation, medium pricing, breadth of product line is high. Strengths are quality, reliability, overall value, and styling.
James, W. B., & Graham, B. (2004). Strategic change in the face of success? Harley-Davidson, Inc. Strategic Change, 13(4), 205.
After the first 15 years, Harley-Davidson had established themselves as a fore-runner in the motorcycle market. The other prominent companies were Indian, Thor, and Excelsior. At the beginning of WWI, they were overwhelmed with orders from governments around the globe for bikes for the war effort. This allowed Harley-Davidson to almost triple the size of their manufacturing plant, which is still located in the same place in Milwaukee. These orders brought greater economic prosperity to all the motorcycle companies of the time but especially Harley-Davidson.
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.
Harley-Davidson, Inc. has a long-standing culture of relationship nurturing with its customers – of association with its customers on personal levels. Owing to this, customers look at Harley-Davidson as not only a company, but as also a family to whom they owe their loyalty. Harley-Davidson is an example of a company which has a loyal (brand) following and its customers aid in future sales via marketing based on the consumer. The company has been doing business since 1903; according to its website, “Four young men experimented with internal combustion in a tiny wooden shed. Not only did the shed not burn, but the motorcycle they built went on to serve over 100,000 miles” (Harley Davidson, n.d., p.1). William S. Harley in 1901 came up with a blueprint of a motor for fitting a bicycle. Arthur Davidson later joined him, and they then built the 1st Harley-Davidson motorcycle.
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