Ducati Essay

8819 Words 36 Pages
9-701-132
REV. MARCH 8, 2002

GIOVANNI GAVETTI

Ducati
By the end of 2000, Federico Minoli had won his battle. Over the past five years, the “turnaround i artist” -- as Forbes magazine dubbed him –- had transformed a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the world; a mechanical concern into a global brand; a fast motorcycle into a symbol of Italian design and tradition, extreme performance, and technical excellence. Under Minoli, Ducati had enjoyed explosive growth and profitability. Revenues had quadrupled since 1996; EBITDA had grown from 33.4 million Euros in 1997 to around 60.0 million Euros in 2000; the market share had gone from 5.1% in the sport bikes segment in 1997 to
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Each customer type differed by age, income, education and gender. For instance, the median age for a Harley-Davidson customer in 2000 was 46 (up from 35 in 1987), while most of Ducati’s buyers, whose median age had consistently decreased in the last few years, ranged between 25 and 35 years old. Women had become an attractive new customer base for motorcycle manufacturers, and were particularly important to some manufacturers like Harley and Ducati. Harley’s proportion of female purchasers had increased from 2% in 1987 to 9% in 2000. Ducati claimed that women were attracted by the low seat height and weight of its motorcycles and accounted for 8% of sales of some models of its most popular bike, the Monster. Specialized magazines, such as Motorcycle Consumer News, Rider, and Cycle World, catered to cycle buyers and educated them about the technical and stylistic characteristics of new products. They tested and ranked new motorcycles on several criteria, such as style, engine performance, handling, and overall comfort. Although the majority of the motorcycle companies advertised through specialized magazines, only some of them—typically the largest manufacturers—also advertised through the non-specialized press. Motorcycle firms also gained media coverage by participating in racing events. In addition, movies brought cachet to motorcycles. Motorcycles had been featured prominently in

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