We spend days wading through different marketing and advertising pieces by various groups in the motorcycle industry, which really only makes us believe firmly that either a) advertising companies have no idea how to connect with motorcyclists, and 2) motorcycle industry companies have no idea how to connect with their customers.
For twelve years in a row, Arai Helmets has topped J.D. Power & Associates motorcycle helmet rankings for customer satisfaction. This is important because J.D. Power also found that highly satisfied owners are more likely to buy their brand of helmet again (that’s a no brainer, right?). The kicker though is that the likelihood of a repeat customer is nearly 10x more likely when they are highly satisfied with their helmet. In a world where it’s cheaper to keep an existing customer than to find a new one, a 10x multiple is a staggering figure on how product quality plays into a company’s sales and growth strategy.
In about 18 months, roughly a thousand workers will be out of a job at the Polaris plant in Osceola, Wisconsin. In that timeframe Polaris plans to close the Osceola plant, and move its production south of the border to Mexico. The move comes about as Polaris looks to increase production efficiency (i.e. lower production costs with cheaper labor), which will then allow the company to be more competitive with its products’ positions in their respective marketplaces.
You have to love labor unions sometimes. Faced with the prospect of being completely out of work, the labor union negotiators have rejected a proposal from Paolo Berlusconi that would save Moto Morini from going completely out of business. Of course us Americans can relate to this plight, as we just recently watched the UAW try to pull the same tactic while the US automotive industry crumbled around them. The blocked agreement is obviously bad news for Moto Morini, but Berlesconi is likely not done pursuing the troubled Italian manufacturer.
The motorcycle industry continues to thaw after its deep freeze during the recession, and a part of that warming effect comes from Triumph Motorcycles, who reported a 9% increase in unit sales in the United States for April 2010 when compared to April 2009. “It’s feels good to see consistent growth, and we’re optimistic about the future” said Mark Kennedy, President and CEO of Triumph Motorcycles North America. Continuing, Kennedy said, “…the U.S. economy is showing signs that indicate we should have a good year.” Part of the growth Kennedy is referencing to is of course having more customers purchase models from the existing model line-up, but Triumph also has its eye on new segments as well. More on that after the jump.
Yamaha Motor Company is reporting a ¥7.5 billion ($80.9 million) net profit for its Q1 2010 numbers, which is a marked improvement over the tuning fork brand’s ¥15.8 billion ($169 million) loss in Q1 of last year. Sales for Q1 this year were up 16% compared to last year, for a total of ¥309.9 billion ($3.3 billion) in sales. Volume was also up for the brand by 26%, with Yamaha selling 1.6 million units worldwide. Despite these strong numbers, both sales in Japan (-14%)and the United States (-57.5%) fell for Yamaha in Q1 of 2010.
Here’s an interesting one for you marketing mavens. Harley-Davidson has tapped Marissa Miller to help promote its Nightster series of motorcycle, which isn’t really news. After all this isn’t the first time that a blonde beauty and a motorcycle have been paired in marketing photoshoot, and it also isn’t the first time that Miller has posed for the Milwaukee brand: she was also the company’s spokesperson for Harley’s “Military Appreciation Month” campaign.
The real interesting aspect of this campaign is the fact that Miller comes from a family of motorcyclists, and is a Harley-Davidson rider herself. While some chalk this up to clever publicity statements, it could be a sign there’s some blood still pumping in the Milwaukee marketing department afterall. What better way is there to get women to enter a male dominated industry than with an uber-feminine sex symbol who still manages to maintain all that sex appeal while riding on one of the most recognizable symbols of our industry? Photos from the shoot, and a behind the scenes video after the jump.
BMW has reported put the kibosh on any rumors that the Bavarian brand is working on a 600cc-ish sportbike to compliment its now wildly popular 2010 BMW S1000RR superbike. MCN is reporting that BMW has acquired the domain name of s600rr.de merely as a defensive IP strategy, and currently has no plans to pursue a follow-up to the S1000RR.
BMW continues to buck the trend, releasing sales data that shows the Bavarian company getting a 21% sales boost last quarter when compared to Q1 of 2009. The company made €351 million in sales revenue (also up 21%), which came to €32 million EBIT, up 14.3% from Q1 of last year as well. BMW cites strong sales from the S1000RR, and the newly revised R1200GS/RT as being the reason for the strong sales numbers.
Italian newspaper Il Sol 24 Ore is reporting more rumors about MV Agusta divesture and the company’s possible suitors. As we’ve reported already, there’s been some speculation that Paolo Berlusconi might be interested in the Italian brand, but he’s also been linked to another Italian company looking for a home. Now coming out of the woodwork are some new names, with links to Ducati & MV Agusta.
Harley-Davidson is looking to slash costs wherever they may be, and that includes its assembly/manufacturing line labor costs. HD and Milwaukee go together like peas and carrots, but Harley-Davidson has warned that if it doesn’t see lowering labor costs, it could walk away from Wisconsin all-together. At issue is nearlt $54 million in what Harley calls “costs gaps”, which the company attributes to the high cost of manufacturing at its Menomonee Falls and Tomahawk facilities.