ducati
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Ducati case study analysisTRANSCRIPT
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