vespa brand paper

8/11/2019 Vespa Brand Paper

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BA 590

Building Customer Relationships

Term Paper

Mandy Culver Rick Leeper Randall ard !hayla !harp


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"# "ntroduction

To fully understand Vespa the product and the direction of the company in terms of the

American brand community, we must first understand the history of Vespa. Accordingly, the

types and depths of their relationships with customers in other markets offer unique insights into

their marketing approach in the United States (U.S.. !ith this understanding of Vespa"s product

and customer e#olution, we can dissect and analy$e their American brand community

dimensions. %n particular we will focus on Vespa"s multi&dimensional customer relationship

impact, position, and resources. !e will conclude this competitor brand strength audit with a

forecast of their likely strategic actions for the ne't three years.

%n )*+, iat created a prototype scooter. The #ice president of iat, -ount -omerana, shared

this design with nrico /iaggio, the -0 of /iaggio A#iation (www.italianmotorcycle.com 1223.

After !orld !ar %%, /iaggio A#iation laid in ruins while allied forces forced nrico, as part of the

peace agreement, to cease airplane manufacturing. %n )43, nrico called upon his to engineers to

design a /iaggio scooter. After one displeasing attempt, he acquired a new head designer -oiTadino

5"Ascanio, the in#entor of the first modern helicopter (www.itlianmotorcycle.com 1223. 5"Ascanio

created a two&wheeled, )+cc, re#olutionary scooter. Upon hearing the bu$$ of its engine, /iaggio

e'claimed 6Sembra una Vespa78 (translation in nglish9 6%t seems like a wasp78 and Vespa was

born.

International

Vespa South Africa is the number one scooter retailer in South Africa (:ooste 1224.

Vespa attributes this success to their business model, which focuses on only three scooter models

compared to the se#eral different models offered by competitors. The company is also seeking a

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6cult8 following that is reinforced by Vespa e'ecuti#es" decisions to 6instill in e#ery owner that

knowledge that he;she is part of the Vespa -ulture8 (:ooste 1224. !e will demonstrate that

Vespa"s South African marketing concept, brand community satisfaction, and product positioning

are also being applied to the Vespa U.S.A. arm of /iaggio.

/resident


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Corporate

The current /resident and -0 of /iaggio USA is /aolo Timoni. esearch and 5e#elopment and 0perations 5irector is Bucio Easut. amily&run since its

founding, /iaggio and -, S.p. A. has recently been acquired by ?erman 5eutsche Dank (+2C,

Te'as /acific ?roup (2C, and the Agnelli amily (2C. The Agnelli family also owns a

controlling share of iat (ecords 1223. /iaggio USA is a subsidiary of

/iaggio and -, S.p. A, %taly.

""# $imensions o% Brand Community

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The Vespa name has firmly established itself as a legitimate brand community in the

United States. Detween riding clubs, e'position fairs and national rallies, Vespa has created an

en#ironment for Vespa owners and enthusiasts to share their interests with one another.

EcAle'ander et al. (1221 defined a 6brand community8 as a community that e'ists

based upon the customer"s commitment to the brand and the e'perience the customer recei#es

from the brand. Drand communities are also influenced by se#eral other factors including

geographic locations, social situations and 6temporality8 (EcAle'ander et al. 1221. The Vespa

brand community features these characteristics and can be applied to the -ustomer&-entric

Eodel of Drand -ommunity created by EcAle'ander et al. (1221. The model itself focuses on

relationships between the customer and the following four dimensions9 brand, product, fellow

customers and marketer. The following descriptions will integrate the -ustomer&-entric Eodel

with current information on the Vespa brand clubs, rallies and competitions9

-ustomer&to&-ustomer

The customer to customer relationship between Vespa owners is demonstrated by the

e'istence of riding groups and national con#entions. According to #espaclubusa.org, Vespa

riding groups e'ist throughout the country. 0wners are brought together based upon their interest

and en=oyment of the riding e'perience. Through their common bond, these indi#iduals disco#er

a sense of community and create relationships that can often last beyond the group rides.

5uring the national con#entions, known as Ameri#espa (/iaggio USA 1223, indi#iduals

from around the country collecti#ely assemble to participate in acti#ities centered around their

Vespas. Deginning in ))*, these national rallies facilitate opportunities for Vespa supporters to

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participate in group rides, attend Vespa display shows, witness new models, enter competitions

and more importantly, interact with other indi#iduals like themsel#es.

Vespa Blogs

Another outlet for Vespa customers that facilitates interaction are the 6Vespa Dlogs.8

-urrently, two blogging sites e'ist within the Vespa U.S.A. websiteJ Vespawayand Vespa uest

(Vespa Dlogs 1223.

0n these websites Vespa enthusiasts and consumers communicate by posting their thoughts on

related items such as new Vespa models, tips on accessories, sightings of Vespas in mo#ies and

information on riding clubs. Dy ha#ing access to these sites, indi#iduals who own Vespas or are

interested in knowing more about them can gain information from the customer perspecti#e.

Eany of these blogs contain narrati#es that describe their Vespa e'periences. 0ftentimes,

these e'periences play a role in defining indi#idual"s self. According to Delk ()++ important

possessions are the 6component(s of a sense of self8. !hen material items become part of daily

routines, they achie#e a le#el of importance, and indi#iduals can become highly in#ested in the

product. These possessions become strongly associated with personal identities and ser#e a

purpose that goes beyond the basic function of the product. or e'ample, an indi#idual posted

the following message on #espaway.com (Vespa Dlogs 12239

Perhaps I will make this a running series, as I am always swearing to people that

you can carry a lot more stuff on a Vespa than you think you can. I have been framing

out a room in my basement so I took off 2 days from work. My wife uses our Nissan

entra for her daily commute so I am left with my Vespa for any supplies that I might need.

!ell, sure enough I made " runs to the #ardware store already yesterday $

today. I picked up a tube of %i&uid Nails, a 2 foot %evel, and the biggest item, a '(lb

bag of )op *N +ond. )he nice guy at esnick*s #ardware who carried the bag of cement

out asked -where*s your car- and /ust I pointed at my 0)' and pulled down the spring

loaded luggage rack. I bugee*d the bag in place and 1oom 1oom off I went

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Dy reading the message, one gets a sense that the author is quite content with his

possession. The author makes it known that his Vespa fits his lifestyle and meets his needs for a

#ehicle with large carrying room.

-ustomer&to&Drand

5uring the first Ameri#espa rallies, most of the attendees were from or near the city in

which the e#ent was held. or e'ample, when the ))3 ational >ally was held in Eanitou

Springs, -olorado, the ma=ority of the 122 participants were from -olorado. At the 122 rally

held in 0klahoma -ity, 0klahoma, @22 attendees were as close as one day"s dri#e. The increase

in attendance can largely be attributed the strength of the Vespa brand name.

The Vespa brand can assist in the creation of communities based upon identification with

the brand (EcAle'ander et al. 1221. Since the formations of these communities are often based

on commonalities, the support for the brand can bring indi#iduals together from different cultural

backgrounds, geographic locations and lifestyles. Similar to the study on -amp :eep

(EcAle'ander 1221 discussed later in this paper, it was the brand name that was the feature that

intertwined the li#es of the participants. They could identify with others and identify similarities

based upon this one facet of their li#es.

-ustomer&to&/roduct

The Vespa, as a product, has a target market in mind. !ith a sleek, fresh look, the Vespa

has a certain appeal that can attract a certain kind of customer. :ust as


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Another a#enue the Vespa marketers are pursing is trying to bring a uropean style to the

U.S. Since the original Vespa was distributed in %taly, the scooters are now being sold at stores

with an %talian style. According to an article produced in the Fno'#ille ews&Sentinel (1221,

Vespas are now being sold in indoor stores as opposed to outdoor lots. Similar to a boutique,

these stores contain 6marble and glass facades8 where 6chic&dressed8 salespeople approach

customers with the intent of selling the style, rather than a machine. 0ne customer in the article

was quoted as saying 6%t"s a wonderful machine, but you pay a lot for style and name.8

This stylistic image of the Vespa brand is also found in #arious media outlets. %n the film

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where questions may be asked and stories may be shared. %t also gi#es the #eteran riders an

opportunity to boast their skills as well as 6mentor8 the rookie riders.

Show Competitions

Eany Vespa owners are #intage enthusiasts who en=oy fi'ing up the scooters and then

showing them off. The biggest competition was held in ))+ where there were 3 different

categories ranging from Dest Vintage to Dest on&uropean Scooter. The members of the rally

award the trophies to the winners which can pro#ide a sense of belongingness to the brand. The

show competitions also establish a sub&culture within the Vespa community that goes beyond =ust

riding the #ehicle.

Specialty #ctivities

The specialty acti#ities are e#ents that are not reoccurring at each national rally. Acti#ities

such as sca#enger hunts, musical concerts, raffles and 6the 5ragon8 (a strip of highway that is so

tedious that riders who successfully conquer the 5ragon without wrecking recei#e a t&shirt

reading 6% Deat the 5ragon8 are aimed at pro#iding more opportunities for recreation and

interaction for the participants.

Drand /erformance

!ith regard to the customer base, the Vespa brand seems to be performing well. Drand

strength lies in the nature of the relationship Vespa has with their customers. Using the


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one subculture or another. or e'ample, ad#ertisements for the company stress the relati#e

importance of the Vespa owner"s ability to9 ( fill their tank for a few dollarsJ (1 take the scenic

route e#ery dayJ (* ability to look forward to their commuteJ (4 lea#e when they want, and

reach their destination fasterJ and (3 to hop on, twist the throttle, and reclaim their freedom

(Vespa /ortland 1223. or the Vespa owner, 6the small errand is an opportunity for adventure$

is a mantra to which many consumers can relate. This relationship between consumer and scooter

is distincti#e because the #alue the owner percei#es by actual ownership is related to the

e'perience. As Dhattacharya and Sen (122* report, the more distincti#e the relationship between

the e'perience, customer satisfaction, and the #alue they percei#e from the e'perience, the more

likely the relationship will be strengthened.

rom :une 1ndthrough :une 3th of this year, Vespa scooter owners from all o#er the United

States gathered for the *thannual 6Ameri#espa8 (/iaggio USA 1223. As mentioned earlier, this

is a recurring national e#ent in which scooter owners, most notably Vespa and others gather for a

rally. This year the rally drew participants from across the U.S. and as well as world&wide, and

hosted a #ariety of e#ents including scooter rides through the host city. Additional scheduled

e#ents included technical information sessions, an obstacle course, a scooter race, dinners, and

an award ceremony. /iaggio USA along with Vespa club members from across the county

worked together to coordinate the e#ent each year. EcAle'ander et al. ())3 described in their

research, a similar phenomena with -amp :eep and the


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6social gatherings.8 Shared rituals, e'periences, con#ersations, attitudes and other meaningful

affiliations among the subgroups are reported, and subtle as well as defined differences e'ist. or

Vespa owners, the scooter is symbolic of chic fashion, for some it is a fun and con#enient mode

of transportation, for others it is an economic gas&sa#ing necessity.

EcAle'ander et al. ())3 report that marketers of products ha#e a responsibility to the

brand and to their consumers. A corporation"s acti#e role at brandfests helps create shared

e'periences and opportunities to obtain consumer information about preferences and choices.

This type of en#ironment (e.g., brandfests;rallies pro#ides rich and meaningful interactions

between and among those attending. Acti#e participation (both consumer and company

personnel can create and influence brand enthusiasm and shared e'periences.

or Vespa owners and the corporate company, these annual rallies not only ser#e to

support product enthusiasm and shared e'periences, but also strengthen the bond between the

brand and the community. urthermore, understanding the consumer on the 6basis of ownership8

pro#ides opportunities for marketers to promote 6unreali$ed benefits8 to the consumer, through

shared e'periences and enthusiasm for the product itself. !hen these shared e'periences are

good and the enthusiasm is high, consumers are more likely to be 6emotionally in#ested in the

welfare of the company8 which may ultimately lead to increased brand loyalty and trust

(EcAle'ander et al. ))3.

Vespa stri#es to be distincti#e in their ad#ertisements (Appendi' and their products.

The consumer attraction to this distincti#eness can be somewhat attributed to consumer

perceptions about a company and the identity the company hopes for or stri#es to portray.

According to Dhattacharya and Sen (122* a consumers" need to be distincti#e can be attributed

to #ariation in cultural norms, e'periences, and sociali$ation. Therefore, the more distincti#e and


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similar the #alues of a company to one"s own #alues, the more attracti#e the company and the

identity will be. rom an organi$ational standpoint, Vespa positions their product (the scooter

and brand quite differently and distincti#ely from their competitors using ad#ertisements and

language such as 6#intage,8 6nostalgia,8 6chic,8 6lifestyle8 and other terminology to con#ey their

uniqueness. or consumers wishing to associate with that distincti#eness, the Vespa brand and

product achie#e that quite well through #arious forums such as shopping at a boutique,

participating in the Ameri#espa, or purchasing a #intage or limited edition Vespa.

"""# &espa Li%estyle

As important as it is to scooter owners to sa#e gas and ha#e an ine'pensi#e #ehicle,

Vespa is working to create much more than thatJ they are creating a lifestyle for their customer.

Through clubs, nostalgia, the pure =oy of the ride, and new complementary products, Vespa is

able to create a world for their customers that allow them to feel as though their Vespa is more

than part of their life, it is part of them.

!hen Vespa re&entered the U.S. after a long absence, they had defined their market as the

6twenty&something"s8 that wanted cheap and easy transportation.


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scooters were the indicator of what was hip. Daby boomers lo#e to scoot around on their Vespas,

and are the most likely owners to =oin or form one of the hundreds of scooting clubs.

The scooting clubs that ha#e been formed around the U.S. offer admittance to all types of

scooter owners e#en though the ma=ority are Vespa owners.


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lifestyle.


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motorcycle or automobile financing. VespaUSA should attempt to understand brand loyalty by

consumers, what consumers want from a Vespa product, what is in#ol#ed in their purchasing

decision, and their lifestyles. To achie#e this, leadership will likely focus their strategy on se#eral

consumer segments9 ( the baby boomerJ (1 the urban user who wants a con#enient mode of

transportationJ and, (* the consumer who thinks of Vespa as a fashion accessory.

The baby boomer generation consists of those persons born between the years )4I L

)I4. or many in this category, it includes a generation of people nearing or about at retirement.

%n the co#er story of Dusiness !eek (Bee 1223 this era of consumers are reported to be

fascinated with the Vespa primarily because they remember the popular scooter from their teens

and early adulthood. The author, Bee, reports that 6Euch to the company"s surprise, consumers

age 32 and older now buy a quarter of the scooters Vespa sells in the U.S. Earketing to this

group will pro#e profitable if managers figure that as they do a better =ob of marketing to this

group, that portion Mof consumersN could grow to about one&third8 (12239)4. As quoted by /aolo

Timoni, -0 of Vespa, this is an attracti#e market segment for Vespa because 6Otheir careers

are established and stableOthis age group tends to ha#e more free timeOare less likely to ha#e

children at homeO8 (12239)4.

The baby boomers are a generation that were indoctrinated with mass marketing and

online ser#ices (e.g., shopping, getting information, banking, etc., and tele#ision. >ethinking

marketing strategy will be key for this age group as brand preferences are not locked in. Bee also

reported that 6aging boomers are obsessed with looking 12 years younger, and are open to new

e'periences and products8 (12239)I. Therefore, Vespa will need to consider a marketing

strategy specifically focused to this group.

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The urban user who wants a con#enient and efficient mode of transportation is another

market segment that corporate management will likely consider targeting. %n a recent article in

the Seattle /ost&%ntelligencer (1223, The Vespa -lub of Seattle reported that gas prices ha#e

somewhat eliminated the barrier of getter a scooter. or many ferry commuters in the /acific

orthwest, the scooter is a fun and easy way to get around. %n her article, -hansanchai reported

that9

6The rising cost of gas& recently soaring to more than P* a gallonOhas gi#enthe green light to scooter buyers already seduced by the retro&cool look,

ease of use and being first&on, first&off when it comes to the ferries8 (12239/.

As stated in the article, Seattle is si'th in the nation in scooter sales, and total scooter

sales (national ha#e more than doubled from 1222 (41,222 units to 1224 (+I,222 units. Victor

Voris, owner of two Seattle Vespa boutiques and who has the number one store in sales in the

country, was asked why the /acific orthwest is such a good place for scooters.


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consider a strategy aimed at the urban dweller that is cost conscious and wants an efficient and

fun mode of transportation that makes getting around town easy and smooth.

The third market niche that Vespa will likely consider is the group that considers the

Vespa a fashion accessory&&&that is, a lifestyle. 0nline ads ad#ertise the stylish Vespa as

6Sparkling7 %n#iting7 uro&chic on wheels8 (www.#espaqueens.com;show.htm1223. These ads

coincide with the company"s release of the Vespa limited edition /Q 32 Serie America, a

remake of the #intage classic. The company announced this release in 1224 and only 322 models

were produced and a#ailable for sale. As indicated in the release they targeted those who want

the classic Vespa with the 6chic8 #intage styling9

6The /Q 32 6Serie America8 comes in a #intage green with a metal plaqueby the glo#e bo' stamped with one number of 322and a historical /Q book.Twenty&se#en years and two million units since its launch, the Vespa/Q remains a cult scooter, a symbol of %talian style e#erywhere in theworld, and the single most widely sold Vespa in history. %t is the only Vespa

that has remained in production for o#er 12 years and has been present on the list of best selling #ehicles for o#er a quarter of a century (Vespa USA.8

The Vespa corporate website promotes fashion and e'clusi#ity by claiming that 6Oit"s

not the brand or the logo that"s cool, it"s the #ehicle of a lifestyleOin it"s own unassuming way it

possesses something that other brands spend billions trying to achie#e9 authenticity8

(www.#espa.com 1223.

%t is likely that future strategies for VespaUSA ha#e been indicated through the #arious

media releases from 1224 and earlier this year, and pre#iously discussed in this paper. The

company has been #ery successful at differentiating their product from their competitors in

numerous ways and has resulted in the number of units sold doubling since the reintroduction in

1222, and the introduction of the Vespa clothing line. %t is likely that the leadership will choose

@
http://www.vespaqueens.com/show.htmhttp://www.vespaqueens.com/show.htm


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strategies to increase market share growth rather than profit, therefore they will want to increase

their presence in #arious channels. 0ne way to accomplish this is through e'ploiting consumer&

to&company identification and creating brand community strategies, such as the continuation of

corporate Vespa in the Ameri#espa >ally.

/iaggio USA uses consumer blogs on their corporate website. As Dhattacharya and Sen

indicate, this is an opportunity to 6Obuild deeper, more committed relationships with customers

and turn them into champions8 (122*9@I. The result is that Vespa owners are endorsing and

promoting the e'perience. ?ranted, #erification as to whether it is Vespa -orporate writing the

blogs cannot be determined, but the effect is still noteworthy, especially if the blog is con#incing

and sales ha#e increased.

0ne potential segmentation approach that could be employed by Vespa is the lifestyle

attitude and beha#ior category, or a psychographic segmentation option. Vespa marketing could

target those indi#iduals that wish to pursue a certain type of lifestyle and e'hibit certain

beha#iors associated with Vespa ownership, such as those lifestyles ad#erstised on the Vespa

ew Kork boutique websites, or those in the /acific orthwest. 0ne way to accomplish this is

through product differentiation. 5ickson and ?inter state that product differentiation is

de#eloped 6Oby offering a product that is percei#ed to differ from competing products on at

least one element of the #ector of physical and nonphysical product characteristics8 ()+@9I.

&espa '#!#A#(s )uture* Continue +ith Current !uccess

To predict what Vespa will do in the future we should look at what they are currently

doing successfully, in terms of marketing and customer relationships. Vespa has openly stated

many of its future intentions are to take their current successes and magnify them.

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Vespa U.S.A. will continue with their current, and successful, national print efforts,

integrated regional efforts, and interacti#e media campaign (including #iral marketing. This also

includes their cross&promotional and in&store deals with brands like -oach, Target, and

Starbucks.


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ad#enture. Accordingly, the product accessories that accompany this ethos will continue to grow

in both breadth and depth. ussel stated9 6There was a time scooter riders were considered geeks. ow it"s completely

different.8

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Re%erences

Anderson, E. 1221. Vespa ?ets Se'y in ew 5ealer Ads in#dweek, Vol. 4*(12 Eay *.

Author unknown. 1223. %ndonesia"s 5anmotors Vespa 0perating !ell Delow -apacityJ in#sia

)ulse )te *imited9 :akarta, orthern Territorial >egion, April @.

Author unknown. 1221. ew Vespa motor scooter brings %talian style to Einneapolis. %n the+no'ville &ews,Sentinel-Eay @.

Author unknown. 1223. Scooter


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/aiggio USA. 1223. /aggio USA helps host Vespa annual U.S. meet athttp9;;www.#espausa.com;company on 0ctober ).

/iaggio Sp, 1223. /iaggio -orporation9


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APP,-$". /

1*


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vespa brand paper

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