market instead of just limiting its product line to fast and speedy bikes. Ducati does
have much capital to investand optimum investment would be to invest in the
cruiser segment of the market as it is a vergin segment for ducati and has lots of
potential other competitors are making use of this product andHarley Davidson is
earning most of its profit through this sector.
Ducati was mainly focusing on the niche marketing of its racing bikes instead of
mass production like Honda. The problem aroused whenDucati’s CEO minoli was
looking for a double-digit growth and achieve Harley profitability. Minoli’s new
strategies did bring about positive trends in its growth of market share extending it
to 7%till 2001. But this current strategy is near to its end and ducati needs a new
strategy to enhance its market share and profitability, this is where the problem lies
that which strategy should beadopted.
The solution of this problem is that ducati should broaden its production line and
along with racing bikes, it should also enter another segment of bike industry of
cruiser bikes. It is amajor segment in this industry andother competitors like
Harley Davidson is earning most of its profit from this segment of industry. By
entering into cruisers market ducati can achieve its goal ofacquiring double digit
market share in the bike industry.
Ducati is renounced for its fast and speedy bikes and holds a strong brand name.
Thus, it attracts more people in the age group 25-35, wholike to have speedy bikes
and can compromise on comfort. Loyalty means a lot to these bikers and they love
their bikes and have heartiest relation with the brand as well. Ducati has a strong
chanceto make its mark in the cruiser segment because when its customers cross
age line of 35 they look for more comfort and less speed, so they go for other
companies cruisers. If ducati was also...