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Ducati – Zooming in the US market

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"Founded by three brothers; Bruno, Adriano and Marcello Ducati in 1926, Ducati Motor Holding S.p.A. is one of the most famous motorcycles manufacturing companies in the world which is located in Bologna, Italy. With revenue of more than 400 million Euros and employee strength of over 1100 people, Ducati comes in the league of most preferred motorbikes across the globe. In USA, the company has a large market share. The boost in the market share is being witnessed year after year. The bike stands apart from its competitors in 20 metropolitan markets in terms of sport and street bike sales.

Ducati attributes its successful sales in USA mainly to the brand's iconic bike called ?Monster'. Commendable promotional events and event-based marketing by the local dealers in the country has created a powerful presence for Ducati in USA. More important for any company is how satisfied the customers are, and Ducati feels proud to have a strong customer base due to its exceptional dealer network which helped it to nab the top spot in the Prospect Satisfaction Index (PSI) in 2009. It is currently in the lines of increasing and extending its dealer network to markets in Atlanta, Sacramento and many more. The positives that the company has are the technical excellence in its field and effective top level management. It is a strong brand in the country that has effective strategic alliances. Brand loyalty among the customers is huge.

Though the company has seen growth but it is sparse and very slow. There are threats it faces in the form of low priced competitors; especially the Japanese bikes makers. Economies of scale are another matter of concern for the company. Focusing upon more of research and development in order to improve in the lines of technology and concentrate on its core competency will help get Ducati an edge over the others.

The basic point to keep note is the competition; it is still seen as a huge motorcycle market in USA. Ducati is more of a sports bike and there is a threat of another range of motorcycles called ?cruiser bikes' of which the best example is ?Harley Davidson'. The promotional strategies have to be further taken in account and a constant check has to be kept on whether the sales target is being achieved as well. Will Ducati be able to stand upon the league of the best motorcycles that run in the USA? Or will it continue its brisk pace in terms of growth? We still have to wait and see."

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