ducati

Case Study AnalysisDUCATI

Kanika Virmani 13P146Kaushik T nihalani 13P148

Mayank Rathore 13P150Rishi Chaturvedi 13P162

Shashank Shukla 13P166

Situation Analysis

Marked 3 differentiators of the Ducati Brand: a unique and differentiated product, a group of highly skilled pro-active engineers a brand with high loyalty

Set out with 2 goals: double-digit revenue growth An EBITDA ratio comparable to Harley-Davidson’s of 20 percent

Situation Analysis

Made a major investment in “Ducati museum”

Relied heavily on outsourcing and by 2001 was outsourcing 90 percent of its production. It maintained only the manufacturing of crank cases and cylinder heads and assembling of its bikes at its production facility in Bologna 

They also implemented “kaizen” and Toyota Production System. 

All these steps helped to increase profits till 2001 but they flat-lined after that till 2006

Situation Analysis

It appeals to niche markets and is not trying to diversify too much out of fear of “Brand Dilution”

Never indulges in “Direct Marketing”, instead relies on local “Ducati Clubs”, its presence on racing circuit

it is a formidable team

The internal customers of Ducati are very satisfied with the product and the brand

Problem Anaysis

Internal External

Internal Issuesproduct discontinuity - changes in a successful product

trouble with customer acquisition model

local distribution channel in US

no in-house marketing team to assess customer needs in the future10million unique online visitors, 500000 museum visitors - all the hype was not translating into sales

Wanted to cater to a particular segment

making a dent in the US market where the 500cc + was a growing segm

drop in motorcycle demand

US dollar depreciating

decrease in demand for apparel and accessories

External Issues

Decision Analysis

It should open up to new markets like India, Russia etc.

Try to setup manufacturing bases in South Asian countries to cater local markets and cut costs

Launch of products must be backed by new market research channels.

Thank You