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The Most Interesting Slide from Yamaha’s Three-Year Plan

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Announcing today its “New Medium-term Management Plan” that will cover the next three years of business operations, Yamaha Motor Co.’s strategy is fairly simple, yet also very ambitious. While fighting against the global currency exchange rate with the yen, the Japanese company is hoping to release over 250 new units over its various product segments.

While this goal encompasses all of Yamaha Motors’ product lines, the most obvious additions for the motorcycle division will be Yamaha’s recently announced three-cylinder motorcycles, as well as the now confirmed Yamaha YZF-R250, a 250cc sport bike that will debut in the Indian market.

Unless you have an MBA, Yamaha’s three-year business strategy is a pretty dull read (it might still be a snoozer, even if you do have an MBA), but one Powerpoint slide struck me as interesting (you can see the full presentation here).

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News

Benelli Due Release Clarified – End of 2012 & Worldwide

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After the news that the Benelli Due 756 would finally be produced and released came out last week, the Italian brand has released a clarification in response to the news that hit the interwebs. Confirming that the Due would indeed become a production model (after making the rounds at motorcycle shows for the better part of the last five years), the Chinese owned Benelli Q.J. released a statement saying that the release date would not be the end of 2011 as some sites had reported, but instead at the end of 2012 (seemingly making this a 2013 model year motorcycle).

Benelli has not outright denied that the news that the Due will hit the Chinese market before it makes its way to Europe, though the Chinese company was quick to say in its statement that “the current version of the Due will be produced in Italy and exported to China and the emerging global markets (without neglecting the European market).” Cryptically we gather that means that the Due we’ve seen will be a world model, while an updated version is slated to hit the European market at some point in the future (2018 perhaps?).

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News

Benelli Due 756 Finally Goes Live…in China?

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The Benelli Due concept has been in the works for so long, we’re officially giving it the Duke Nukem Forever status of the motorcycle industry. I first laid my eyes on the two-cylinder street-standard back in 2009, as the then called “2ue” was making its second EICMA appearance (the Due made its first appearance as early as the Cologne show in 2006).

Essentially a Benelli triple with a cylinder lopped off, the Benelli Due displaces 756cc with its inline cylinders, and is an otherwise attractive motorcycle. Given how much of a basketcase the “Tre” motor was, we can only imagine the “character” its two-cylinder counterpart brings to the table, though that is an entirely different issue.

Finally announcing that the Benelli Due will hit dealership floors in 2012, the Chinese-owned Italian company has an interesting twist with its news: the Benelli Due will be released in China first, then Europe and other markets.

At play surely is the idea and principle of pride that Chinese companies should release models in their home country first, before servicing other markets. This notion is surely understandable, but does strike us as interesting considering that Europe and North America are likely to be bigger volume markets for this big-displacement motorcycle.

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Opinion/Editorial

How to Save Harley-Davidson – Step 1: Redefine and Reposition The Way You Market Your Brand

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Blasphemy, heresy, stupidity, sacrilege, un-American, and downright irreverence. Go ahead, get all those words out of your system. I’ll wait.

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.

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News

Ducati Opens First Store in China

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There’s a large stigma around China and the motorcycle industry, but Ducati isn’t one to let some misconceptions get in the way of their bottomline. With China rapidly becoming one of the largest motorcycle markets in the world, Ducati has its eyes set on establishing itself as the premium brand of choice for uppity Chinese urbanites, and thus has opened its first Official Ducati store in China this week. More after the jump.

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News

Ducati: Bear Market Winner

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The world markets may be down, and stores may dropping out of business like it’s third period French class, but Ducati is finding the economic downturn to have an upside on its balance sheet.

Ducati’s sales revenue for the first three quarters of 2008 grew by 25% compared to last year’s figures. This means to close to $417MM in revenue for the Bologna Bandits, with their bottom line looking 87% better than before, totaling in at $41MM.

Why now brown cow? Well shipments from Desmo-central to dealer floor rooms has been up by 19% for the year so far, with sales up 8% worldwide. In the meantime, worldwide industry sales are down 6%. Evidently, those cars that people aren’t buying, is not equating into motorcycle purchases (you know…for the mileage advantage) 

The Bologna Boys say they are still on track to achieve a forecast 20% growth in worldwide sales for full fiscal year, up from a predicted 15% sales growth.

How are the other European manufacturers doing? 

KTM has had a 50% drop in operating profit for the full 12 months of its fiscal year, closing the books at $21MM. The House of Orange (not Oranj) is blaming this decline on a bad Dollar to Euro exchange rate, and plans to cut motorcycle production for the 2009 season by 10%.

Piaggio (owner of Aprilia, and most of Europe’s scooters) is also cutting back on production across all its motorcycle and scooter brands after depressing results for the first 3 quarters of 2008. Overall sales were down by almost 6%, falling 10% in Europe, which accounts for about 80% of its bike and scooter sales.

BMW, while slightly more insulated, is feeling the pain too, with global motorcycle sales down by 2.5% in the same period, and profit from bikes falling by nearly 16%.

Source: visordown

In other financial news, the trade-deficit for sportbike hotness in the United States has increased another 300%. Sorry Buell.

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