Ducati is a motorcycle manufacturer with a long history and a reputation for high-quality, performance motorcycles. In recent years, Ducati has faced challenges in the marketplace, including increased competition from Japanese manufacturers and a shift in consumer preferences away from motorcycles. Ducati has responded to these challenges by expanding its model range and increasing its focus on marketing.
Ducati’s marketing strategy has been very successful, helping to increase sales and market share. Ducati has used a variety of marketing tools, including sponsorships, advertising, and public relations. Ducati has also worked hard to create a strong brand image. This has been achieved through consistent messaging and the use of Ducati’s racing heritage.
The results of Ducati’s marketing efforts have been very positive. Sales have increased and Ducati has regained market share. Ducati is now once again seen as a premium motorcycle brand.
As of the year 2000, a small number of firms dominate the worldwide motorcycle market. Japanese companies such as Honda, Yamaha, and Kawasaki are low-cost players, while Harley and Ducati are high-end manufacturers that have been able to establish themselves as a premium brand.
Ducati has been able to remain profitable and grow at a time when the overall motorcycle industry was facing a slump. The company had to its advantage, the fact that it only catered to the high-end segment of the market and had a niche following.
Ducati’s Marketing Strategy: Ducati uses emotion-based marketing strategy which is evident from its tagline “For those who ride to be seen”. It aims to tap into the psychology of its target customers who see Ducati motorcycles not just as a mean of transportation but also as a style statement. This has helped Ducati build a strong brand equity and create customer loyalty.
Strengths:
– Strong Brand Equity: Ducati has been successful in establishing itself as a premium brand and has a cult following among its customers.
– Innovative Marketing Strategy: Ducati’s emotion-based marketing strategy has helped it stand out from its competitors and build a strong brand equity.
Weaknesses:
– Limited geographical reach: Ducati is present only in selected markets and has a limited geographical reach.
– High prices: Ducati bikes are priced at the high end of the spectrum which limits its customer base.
Opportunities:
– Increasing demand for premium motorcycles: The global market for premium motorcycles is growing at a rapid pace and Ducati can capitalize on this opportunity by expanding its geographical reach.
– Increasing popularity of electric vehicles: The increasing popularity of electric vehicles presents an opportunity for Ducati to launch its own line of electric motorcycles.
Threats:
– Strong competition from Japanese manufacturers: Ducati faces stiff competition from Japanese manufacturers such as Honda, Yamaha, and Kawasaki who have a strong hold on the low-cost segment of the market.
– Threat of substitutes: The increasing popularity of electric vehicles presents a threat of substitution for Ducati’s products.
Ducati should focus on expanding its geographical reach in order to tap into the growing demand for premium motorcycles. Additionally, the company should also explore the possibility of launching its own line of electric motorcycles.
Harley is the No. 1 cruiser motorbike brand in the United States, where it enjoys a devoted following and an active online community. However, to compete with Harley’s industry-leading profit margin, Ducati has been attempting to grow market share and equal Harley’s level of brand image. To target the correct consumer types while maintaining its main strengths and building its brand reputation for which Ducati stands, Ducati has teamed up with Minoli.
This Ducati case study will analyze how Ducati’s current marketing strategy can be improved in order to achieve greater success in the motorcycle market.
Ducati, founded in 1926, is an Italian company that manufactures motorcycles, engines, and other related products. The company has a long and successful racing heritage, having won 17 Manufacturers’ titles and 14 Riders’ World Championships. Ducati bikes are known for their high performance and unique design, which sets them apart from other manufacturers. Ducati’s products are sold in over 60 countries worldwide.
In recent years, Ducati has been facing increased competition from Japanese manufacturers such as Honda and Yamaha, as well as American manufacturer Harley-Davidson. In order to compete with these larger companies, Ducati has been trying to grow its market share and improve its brand image.
Ducati’s current marketing strategy includes sponsoring MotoGP racing teams, advertising in magazines and online, and participating in motorcycle shows. However, Ducati has been struggling to achieve the same level of success as its competitors. In order to improve its marketing strategy, Ducati has teamed up with Minoli, a leading brand management and communications agency.
Minoli will help Ducati to better understand its target markets, communicate its brand values, and create more effective marketing campaigns. Through these efforts, Ducati hopes to increase its market share and become a more successful company.
Benelli’s move to enter into Harley’s specialized market of cruisers is a great decision for Ducati’s future development, as it cemented the premium flagship status of products that Ducati is known for. We propose that Ducati develop a “sports-cruiser” motorbike with the riding experience and comfort of a cruiser such as Harley Davidson while being quick and agile.
This bike would be the perfect combination of Ducati’s engineering and design expertise with a more practical application. The main challenge that Ducati faces is that they have very little brand recognition in the US. In order to attract attention to their new product, we recommend an intense marketing campaign that focuses on Ducati’s heritage and its reputation for building high-quality, performance-driven motorcycles.
Marketing efforts should target current Harley owners as well as those who are interested in purchasing a motorcycle but have not yet decided on a brand. Events such as track days, where potential customers can test ride Ducati motorcycles, would be an excellent way to generate interest and excitement around the brand.
Ducati has always been known for its premium, high-performance motorcycles. In order to maintain this reputation, it is important that Ducati’s new cruiser be priced accordingly. We recommend a price point of $25,000 for the new sports-cruiser, which is in line with other premium cruisers on the market such as Harley Davidson’s CVO models.
By entering into the cruiser market with a unique product that combines Ducati’s engineering excellence with a more practical application, we believe Ducati will be able to successfully grow its brand in the United States and achieve long-term sustainable growth.