While Norton Motorcycles finds itself currently in the middle of a relaunch period, having recently resurrected the brand at its Donington Park headquarters, being widely rumored to contend in MotoGP for the 2012 season, and just a month ago announcing that it would return to the North American motorcycle market, more changes seem in store for the historic British company. Announced today was the surprise move that sees famed South African motorcycle designer Pierre Terblanche moving from Piaggio, where he was working on revamping the Moto Guzzi line, to Norton Motorcycles.
Interbrand, the leader in brand consultancy, ranks the Top 100 brands each year according to their brand value, with brands like Google, Coca-Cola, and McDonalds usually taking the top honors. Interbrand’s method looks at the ongoing investment and management of the brand as a business asset, and then assigns a dollar value to that asset.
In motorcycling no brand is worth more than the Bar & Shield of Harley-Davidson, and the Milwaukee-based company is an Interbrand 100 regular. Dropping nearly 24% of its brand value this year (the most out of all the Interbrand 100 companies), Harley-Davidson fell from 76th on 2009 rankings to 98th in 2010, losing over a billion dollars in brand value in the process.
KTM is looking for some help in naming its 125 Race and 125 Stunt bikes that were debuted at the 2009 EICMA show. When we saw these bikes launched in Milan, we couldn’t help but want one…even if they’re targeted towards kids. Knowing that the Austrian company’s relatively bland naming nomenclature isn’t likely to resonate with the kids of today, KTM is looking for some insight on how to capture this younger audience, and if they pick your entry you can claim a 125 Race or Stunt bike for your very own.
Branding can be a tricky trade, especially when it comes to putting your mark on someone else’s product. The optimal goal is to find partnerships where both products benefit from being associated with each other. For Agip, the Italian gasoline and oil company, the obvious perfect partnership is one with Hello Kitty, the cute white cat that does $1 billion in business each year. After all, who doesn’t like their 11 year-old Japanese girls mixed with three liters of motor lubricant? Oh yes, we went there.
Ducati has reported that the first 500 initial pre-orders for the 2010 Ducati Multistrada 1200 have been filled, and there is now a 60 day waiting period for the new sport-tourer. Citing a strong reception to the Multistrada’s “four-bikes-in-one” capability, Ducati sees an additional 500 units to be sold in the coming months. This last statement seems sort of like a no-brainer, after-all another 500 bikes will be sold eventually, right?
Actually, the entire statement is sort of strange when you consider what 500 pre-sold orders really entails in a markets like the United States & Canada. With a plethora of dealers in these countries, the reality is that this statement amounts to dealerships pre-selling their initial inventory, which consisted of one or two motorcycles. Yes, the Ducati Multistrada 1200 is sold-out for the next two month, but when you ship only 500 units to the entire North American market, you can almost guarantee being sold out on a bike during its release, right?
This rumor just doesn’t want to die (maybe there’s some truth in it then?), but talk continues about a possible Volkswagen motorcycle. This time the speculation centers around NSU an old german brand that VW bought back in the 1960’s. Known for its wankel-style rotary motors, NSU was the world’s largest motorcycle manufacturer in 1955, but sadly went out of business in 1969 when the failing brand (primarily due to its automobile division) was acquired by Volkswagen, never to be seen again or so it would seem.
How important is the 2010 Ducati Multistrada 1200 to the Italian company? Consider this, despite releasing a bevy of new and revised motorcycles for the 2010 model year, only the Multistrada 1200 has seen the Bologna company bend over backwards to market its sport-tourer with a bevy of videos. Part of this is due to the extra pocket change seen in the adventure segment of motorcycling, but an even more important reason for Ducati’s aggressive media push is the need for the Italian brand to stand for something more than just expensive sport bikes.
Before there were Hypermotards and Multistrada 1200’s, Ducati still saw the lion’s share of its sales come from the Monster line, despite the company being better known for its Superbike line. Unlike some other companies, Ducati was fortunate enough to realize that you can’t play in only one market segment, and began looking for new ways to expand it’s product lineup…thus the Multistrada 1200 was born. In an effort to keep up with all the marketing around the beak-nosed bike, we’ve compiled all of the Ducati Multistrada 1200 videos we could find, so sit back, grab a beverage, and enjoy them after the jump.
35 motorcycles, 7 model lines, 4 chassis, 3 motor families, & 1 market segment, that’s Harley-Davidson’s product line by the numbers. Where many large production motorcycle companies might have 30 or so motorcycles that span the entire gamut of motorcycling’s different sub-markets, Harley-Davidson has put all of its eggs in the heavy cruiser market. This singular pursuit of one market segment has not only been the cause for Harley’s success, but also a significant contributing factor to the company’s recent downfall, which has led to a recently rumored leveraged buyout.
As the old idiom goes, one should not put all their eggs in one basket, which is exactly the faux pas being committed here by Harley-Davidson in its product offering. Businesses, especially public ones, should always have an eye on sustained long-term growth, and a key element to that goal is a well-diversified position in their appropriate industry. Taking this lens and applying it to Harley-Davidson, one can immediately see a portfolio that has been extensively mismanaged by focusing on only one segment of the total motorcycle industry: the heavy cruiser market.
What this has effectively created is a motorcycle company that looks like Alfred Hitchcock’s take on Baskin Robins: 31 flavors, but they’re all Rocky Road.
Ducati owns probably the most valuable brand name in motorcycling, and like many brands Ducati finds ways to monetize this asset by licensing it out to other companies. One great marriage and example of this is the Ducati branded apparel available from Puma, which sees both brands benefitting from a racing/apparel association. One not so great example of this concept however is the Toshiba Satellite U500 Ducati Edition laptop, which sees the vanilla of portable computers get stamped with the mark of Corse Rosa.
The default opinion of marketers, analysts, and the general population is that Harley-Davidson has one of the strongest brands in the United States, this being confirmed by the fact that every business student in America has studied Harley’s marketing efforts if they’ve ever taken a brand management course. So why would I start a three-part series on how to fix Harley-Davidson by arguing to change one of the most revered marketing houses in the motorcycle industry?
Giving credit where credit is due, Harley-Davidson, or I should say its admirers in business school academia, wrote the book on demand generation marketing geared towards the baby-boomer generation. However, in defending this market position, Harley-Davidson has painted itself into a corner by only engaging a very small segment of the population with its product. Unless they redefine and reposition their company image and who it resonates with, Harley-Davidson is going to watch the continued erosion of its footing in the motorcycle industry, and also the continued deterioration of its only industry leading quality: its brand.