DUCATI MOTORCYCLE

Brand Case Study

Name: Aboobaker Saad

1st year BBA Aviation and Logistics Management

To Pradeep Sir (Marketing Management)

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 CONTEXT

INTRODUCTION_________________________________________________________________3
HISTORY_______________________________________________________________________3
FIRST MOTORCYCLE____________________________________________________________4
MISSION AND
VISION____________________________________________________________4
MARKETING STRATEGY_________________________________________________________5
SWOT ANALYSIS________________________________________________________________6
TARGET MARKET_______________________________________________________________7

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 DUCATI
Ducati is an Italian motorcycle manufacturer, Since July 2012 it is owned by German
automotive manufacturer giant Audi which is the Italian subsidiary of Lamborghini,
and all of these are owned by the world’s largest automotive manufacturer
Volkswagen group. Ducati was founded in the year 1926 by Ducati family, and since
then it has been in designing and manufacturing of motorcycles. Its headquarters are
located in Bologna, Italy. Ducati is one of the largest
producers of premium bikes, and some of its competitors are
Suzuki, Honda, Bajaj, Yamaha, etc.

HISTORY

Antonio Cavalieri Ducati and his three sons, Adriano, Marcello, and Bruno,
established Società Scientifica Radio Brevetti Ducati in Bologna in 1926 to
manufacture vacuum tubes, condensers, and other radio components. They were
successful enough in 1935 to build a new factory in the city's Borgo Panigale
neighbourhood. Despite the fact that the Ducati factory was repeatedly bombed by the
Allies during WWII, production continued. It was finally destroyed on October 12,
1944, by approximately 40 Consolidated B-24 Liberators as part of the United States
Army Air Forces' Operation Pancake.
Meanwhile at a small Turinese firm, SIATA, Aldo Farinelli began working on a small
pushrod engine that could be mounted on a bicycle. SIATA announced its intention to
sell this engine, known as the “Cucciolo,” to
the general public less than a month after
Italy’s official liberation in 1944. The first
Cucciolos were sold separately, to be
mounted on standard bicycles by the buyer;
however, businessmen quickly purchased the
small engines in large quantities and began
selling complete motorized-bicycle units.
InIn 1950, after more than 200,000
Cucciolos had been sold, in collaboration

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with SIATA, the Ducati firm finally offered its own Cucciolo-based motorcycle. This
first Ducati motorcycle was a 48 cc bike weighing 98 lb (44 kg), with a top speed of
40 mph (64 km/h). When the market moved toward larger motorcycles, Ducati
management decided to respond. In the 1960s, Ducati earned its place in motorcycling
history by producing the fastest 250 cc road bike then available, the Mach 1.
Audi, a subsidiary of Volkswagen Group, announced its intention to purchase Ducati
for 1.2 billion dollars in April 2012.

PAST & PRESENT

FIRST MOTORCYCLE

In 1945, the company produced their first motorcycle. The Cucciolo, designed by
Aldo Farinelli during the war, was a true innovation. Ducati took over as the
manufacturer of the Cucciolo, which was a huge success when it was released in 1946.
Ducati produced the first complete motorcycle, the Ducati 60, in July 1949.

MISSION AND VISION

“Born To Be The Hero”

~Vision

“At Ducati, pure passion and intense dedication travel fast and deep.”
~Mission

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MARKETING STRATEGY

Let us start the Ducati Marketing Strategy & Mix to understand its product, pricing,
advertising & distribution strategies:

PRODUCT STRATEGY: Ducati is a global manufacturer of sports bikes, which are

known for their speed and performance. They are also racing bike experts with
exceptional performance. Some of the features that make Ducati stand apart from the
rest of the crowd are the four-stroke engine, desmodromic valve. Dry clutches, trellis
frame, and innovative engine configuration.

PRICING STRATEGY: Ducati is not only known for its premium and high-end bikes
but also for its quality and services. Ducati has a little higher price tag compared to it’s
competitors Suzuki and Honda. The pricing strategy in its marketing mix is dependent
upon the product as well as the value-added services.

PLACE (DISTRIBUTION) STRATEGY: Ducati is present in almost every country on

the planet. Its main markets are Japan, Europe, the United Kingdom, and the United
States. The firm has strategized its distribution network by having a strong alliance
with dealers and distributors. They established a number of service centres to provide
consumers with after-sales support.

PROMOTION STRATEGY: Offline and internet initiatives are included in the

promotional activities. In offline promotions, the company creates numerous adverts
and commercials that identify the company's brand value and aid in the spread of its
products to the greatest possible profit to the company. To capture the attention of the
youth, the company ran a series of Youtube advertising. Also, Ducati is associated
with various sports events and competitions such as AMA Superbike Championships,
Manufacturer World Championship, MotoGP, etc. Ducati has its team named Ducati
Corse which is the racing team department that participates in mentioned above racing
competitions.

This concludes the marketing mix of Ducati.

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SWOT ANALYSIS
STRENGHT  Distinguishing features: Ducati bikes have a list of features that clearly
delineates them from other brands.
 Numerous racing victories: Ducati has won numerous titles in bike
racing such as World Superbike Championship.
 Market leader: Ducati is a market leader in most of the markets is
operates like USA, Italy, Spain, and Germany. Even in times of slump
Ducati’s sales have grown at a global average of 8 % per annum from
2105 to 2016.

WEAKNESS  The high cost of raw materials: Duvati uses the most advanced
technologies in it’s motorcycles. The spare parts of the bikes are not
easily available and this is known to create service delays.
 Overhauling of products: Ducati had taken a strategic decision to
overhaul all of its designs with new engines for a few models. This
proved to be a very expensive exercise for the company and the returns
from it are yet to be seen.
 An extensive network of partners: Ducati has a huge network of
partners, suppliers, and after-sales service centers and it becomes a
challenge to manage this wide network of connections and synergy is
also low since these are spread across the globe.

OPPORTUNITIE  Growing demand for driving safety: Low-powered bicycles are thought
S to be less safe than propelled bicycles. This would imply that demand
for low-cost motorbikes is shifting to superbikes like Ducati, which are
more comfortable to ride and safer on the road.
 The market in emerging economies: Earlier there was less to no sales
for motorcycles or luxury bikes in emerging economies. But today there
are a lot of biking enthusiasts in the emerging economies who are well
aware of what they want and willing to invest in expensive bikes.
 New technologies: As more cities strive to be smart, technologies such
as the Internet of Things, networked devices, and driverless vehicles are
becoming increasingly prevalent. There will be a need for creative
vehicle and driving alternatives, which could lead to new vehicle
business segments.

THREATS  Competition: The company faces a lot of competition from brands such
Harley Davidson, Yamaha, Suzuki, Honda, and Kawasaki.
 A threat from substitutes: Superbikes are frequently as expensive as
luxury cars, if not more so. Customers may thus prefer to invest their
money in a car that is safer and easier to use. As a result, the bikes face
competition from luxury car manufacturers.

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TARGET MARKET OF DUCATI

70% of Ducati’s audience is male, 30% female. The bulk of the audience fall between the ages of 18
and 50, though over 24 year olds make up a majority of that number. Almost 90% of the audience is
urban. In addition, most of the audience is educated – have at least one basic degree. The largest
percentage – are professionals, with a further 30% saying they are students. A majority of this
audience are independent, frequent riders. A whopping 91% of Ducati’s riders frequently use the
internet as a source of information

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