Known for Premium Cycles, Italy's Ducati Aims for a Broader Market

Jason Chinnock pictured below chief executive officer of Ducati North America since 2016 is exLamborghini amp8212 so he knows about the premium end of the business But Ducati is looking to expand its reach with the aircooled Scrambler line Scramblers are beginnerfriendly in the style of what are known as lightweight but powerful cafamp233 racers In fact there is an 803cc 73horsepower Ducati model called Cafamp233 Racer priced at 11995Remember the 1960s popularity of Vespa scooters and 50cc Hondas The latter even inspired a hit song by the Beach Boys Ducati isn39t aiming at that entrylevel it39s just going down a rung or two on the ladderThe low price has quickly made the Scramblers the most popular Ducatis and the one most frequently seen at dealerships Ducati39s Scrambler pictured at top bikes have doubled the percentage of women riders amp8212 from just 4 percent to 8amp160percent of buyers quotIt39s a broader group of product that is approachablequot Chinnock said quotDucatis have been seen as for seasoned riders only But Scramblers are being bought by people who aren39t into the horsepower race they sometimes use them for commuting or for having fun not for everyday transportationquotThe key goal was to make Ducati more accessible without bringing the brand down in terms of prestige So Ducati is selling Scrambler as a standalone brand that is quotsupported by DucatiquotEntrylevel for Ducati is usually about 15000 but the company also has 65000 bikes andproducedamp160one the Desmosedici D16RR a roadlegal version of a racing bike thatamp160it sold for a whoppingamp160232500Ducati with 1278 employees showed revenue of 595 million euros 653280000 in 2018 fiscal year By comparison HarleyDavidson39s global motorcycle revenue stood at 57 billion in the same periodChinnock an American and a tank officer during Desert Storm zooms in on the North American market quotEurope has a broad and consistent approach to motorcycles but the US is primarily rooted in the cruiser segment These are highway motorcycles of more than half a liter And in the US HarleyDavidson has 50 percent of the market No company in Europe dominates like thatquotHarley Chinnock added is quotan aspirational brand It39s tied in with Americana and the company has done a great job of capitalizing on that image Buying a Harley is an emotional purchase not necessarily a rational decision based on the bike39s gas mileage or how many kids it can haulquotIn part that red white and blue image got HarleyDavidson in trouble when it announced a plant in Europe there was grumbling about the company39s recently announced electric bike tooA motorcycle named Ducati is never going to wrap itself in the flag for North American marketing but the company can attract new younger riders its goal said Chinnock with targeted media campaigns quotOur advertising is almost exclusively digitalquot he said quotIt39s about identifying prospects who have similar demographic profiles to our ownersquot YouTube and Facebook are major channels for Ducati not surprisingly with the aim of driving traffic to the company websitequotDucati stands for style sophistication and performancequot the company39s YouTube channel says quotThe world39s most attractive motorcycles are the result of a deep commitment to racing competitions they are the purest expression of refined skill unmistakable design and above all a great passion for bikesquot The channel has gotten more than 13 million views since 2007The marketing message is about how Ducati motorcycles make you feel and what they say about you as an individual quotAll brands have that messagequot Chinnock said quotbut some say it with a stronger resonancequotquotChange the rulesquot says a spot for Ducati39s Monster 1200 S A similar message is used to sell SUVs which without much actual justification have a maverick iconoclastic imageAt Lamborghini Chinnock was involved in marketing for the Urus amp8212 the company39s first SUV quotI was working on changing the perception of the brand to prepare the market for a product like thatquot he said It would seem to be excellent training for getting American riders to accept a new broader image for DucatiA large part of that effort is linked to events which do well for Ducati These include the Quail Motorcycle Gathering at Pebble Beach in California a twowheeled version of what happens during the betterknown Car Week and the MotoGP Red Bull Grand Prix in Austin TXquotWe39ve made a big investment in racingquot Chinnock said quotIt39s a great opportunity for brand communications and building exceptional brand loyaltyquot Ducati owners will find their own private area at these events with demonstrations and test rides but there are also Ducati displays for the general publicquotWe don39t advertise in printquot Chinnock said adding that the brand certainly enjoys the attention it gets from publications such as Cycle WorldHigh gas prices cause blips in scooter sales Chinnock said but generally the US is a stable market for Ducati with more growth apparent in Canada and Mexico And of course China is big a production facility in Thailand serves the Asian marketThere is probably an electric motorcycle in Ducati39s future but not yet quotIt39s premature for us to talk about electricquot Chinnock said quotWe don39t have a solution for the market yet We39re about style sophistication and performance so any electric motorcycle we produce has to meet thatquotDucati is never going to displace HarleyDavidson in the hearts and minds of America but with the Scrambler it certainly has a shot at grabbing a bigger share of the motorcycle marketClick the social buttons to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Known for Premium Cycles, Italy's Ducati Aims for a Broader Market

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Jim Motavalli

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Known for Premium Cycles, Italy's Ducati Aims for a Broader Market

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