Discuss about the Digital Marketing and Practical Framework.
The Ducati name originated in the 1920s when the Ducati brother founded a company with their father. At that time, the family was experimenting with radio transmission systems and capacitors. In the 1930s, the company was manufacturing radios. In the 1940s, the company manufactured its first motorcycle called Cucciolo. In the 1950s, the company manufactured various motorcycles that were used for racing such as the Desmo series. The Ducati Scrambler was manufactured in 1968. Over the years, the models have continued to evolve to the 2016 Ducati Scrambler.
The new motorcycle has wheels that are seventeen inches and are carbon BlackStone Tek. The wheels are made of carbon fiber which is light making the motorcycle light and easy to control (“Rough Crafts Turns the Ducati Scrambler into a Wild Beast”, n.d.). The forks are Marzocchi from Panigale 1199 which boosts adjustability and stiffness on the road. The tires used are Pirelli Rosso Corsa which strengthen the bike’s stickiness on the road. Additionally, the bike has a swing arm that is Monster 1100. It has parts from Belinger and Motogadget such as mirrors, brakes and master cylinders. It has different accessories, seat covers, and scrambler logos to allow customization and improve the customer’s experience. Lastly, it has different flavors such as icon, full throttle, urban endure and classic.
The new motorcycle belongs to a well-established product line. The previous models have met the needs of their customers so the new model is expected to do the same. The second competitive advantage is that the motorcycle belongs to a recognized brand that is known to provide high-quality motorcycles (Duncan, 2016). The motorcycles from Ducati have been used to win races over the years and the models continue evolving as technology advances.
The situation analysis provides a description of the environment the Ducati Scrambler is in. It includes the strengths, weakness, opportunities, and threats (SWOT) analysis.
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The Ducati motorcycles have a good brand name The Ducati Scrambler’s speed and performance is high The Ducati Scrambler has approximately sixty accessories The Ducati Scrambler is available in different flavors There is high customer loyalty |
The Ducati Scrambler is very expensive The target audience is narrow There are low economies of scale |
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There is a new emerging high-income market around the world There are innovative technologies that keep emerging |
Other motorcycles from the competitors The high price may make people opt for other means of transport such as cars |
In Australia, there is a motorcycle industry that deals with the issues of everyone who is involved in the motorcycle industry. In 2015, the band with the highest sales was Honda which had approximately twenty-five percent of the sales. The Yamaha and Kawasaki were the brands that followed. Harley Davidson was the fourth brand and Ducati did not rank among the first ten brands. Similarly, in 2016, Honda emerged the first as mentioned earlier. Harley Davidson emerged as the road bike brand with the highest sales. On the other hand, Yamaha had the highest sales as the off-road brand of choice (“Australian Motorcycle Sales Figures 2015”, 2016). This shows the position of the Ducati’s competitors in the Australian market.
The industry has shifted from producing heavyweight motorcycles to the sport and high-performance ones. This is because the target market has changed from baby boomers to millennials. The main competitors in the motorcycle market are Yamaha, Honda, Suzuki, Harley, and BMW. Ducati and Harley are the most widely recognized brands compared to the rest. However, Harley innovates at a faster rate compared to Ducati. It is worth noting that no brand has control of more than thirty-five percent of the market. Based on technological innovation, Honda and Yamaha are on the forefront. For instance, Honda released the first 4-cylinder CB750 first (Duncan, 2016). Generally, there is very high competition among the various companies since the brands are all strong and the difference occurs in innovation and quality.
The marketing strategy includes the 4Ps that are used in the market mix and as outlined in the SOSTAC model of marketing. The strategy also focuses on the target market and the positioning of the product and the brand.
The target market of the Ducati Scrambler is the millennials since it is a sporty high-performance motorcycle. The age of the customers is between eighteen and thirty-five years. In addition, the target market must belong to the upper class or upper middle class as mentioned earlier. It is mainly suitable for people who enjoy racing and sports bikes. Majority of the customers are men who are single or married. They are usually status oriented and would pay a huge price for a premium brand. There is an established market in Europe and the United States. The goal of this plan is to target customers in Australia.
The aim is to make Ducati Scrambler be among the top selling bikes in the Australian market. Presently, it is not among the top sellers as aforementioned. Additionally, the company aims to make Ducati the most recognized brand in Australia.
The product line of Ducati Scrambler includes the four different flavors mentioned earlier. Apart from the motorcycle itself, there are different accessories to assist the customers to customize it. There are also different scrambler logos available. The engine is 8000cc which makes the speed high. The company website provides an interactive platform where the customer can see the different features of the bike. Lastly, there are apparels that are sold on Ducati’s World that would be comfortable to wear when riding. The Ducati community also provides membership to a club for those loyal customers and within the club, there are many offers that the customers can take advantage of. To improve the product line, it can be expanded by developing a better model of the Ducati Scrambler that meets the needs of the customers better. They can also develop smaller models that can be used by teenagers who enjoy racing and sports bikes but cannot be able to handle the current size.
The price of the motorcycle varies depending on the flavor and the features. For example, the 2016 Ducati Scrambler Icon flavor ranges between $10,000 to $14,000 in Australia (“18 Ducati Scrambler ICON Motorcycles for Sale in Australia”, n.d.). The motorcycle is not overpriced or underpriced compared to the competitors such as the 2017 Kawasaki Ninja which is around $ 18,000 since it is more powerful. The price may also change according to the dealer who is selling the bike. For instance, some dealers may give discounted offers to encourage people to buy.
The company will use digital platforms to make people aware of the product such as social media, the company’s website, and microsites (Smith & Chaffey, 2012). The company can use online marketing tools to send a clear consistent message to the customer. The first tool is the Search Engine Optimization (SEO) that is used to increase the visibility of the product using keyword analysis. The second tool is Pay-Per-Click where keywords will be used and a budget that will need to be monitored. The third tool is affiliate marketing where the company can use leads to improve the visibility of the brand. The last tool is the emailing that ensures the customers receive the newsletter and are aware of product developments.
Social media can also be used using the RACE model (Chaffey, 2016). The company can create awareness through television adverts and social media sites. Customers can ask questions on social media or through Live chat ensuring participation. Then customers can purchase the bike on the online shops or through offline methods.
In addition to the digital methods, the company can use traditional marketing methods. Presently, the company has a tour that it uses to demonstrate the performance of the bikes for the customers. The customers are able to take the bikes for a test drive and ask questions about the various models. This can be done in Australia to boost the sales of the bike. It is also convenient for the customer since it comes to the cities and towns in the regions thus they do not need to travel. Ducati can use the experience to get first-hand information about the needs of the customers in order to improve the latest models. As part of the aftersales services, the company can recommend well-known mechanics to the customers for future repairs that the company is not responsible for.
The products will be distributed using different dealers that sell motorcycles in Australia. Moreover, the customers can use the motorcycles on the company’s website where they will be directed to a dealership near them. The website also offers an opportunity for them to customize their bikes. The dealers offer a chance for the potential customer to test drive their chosen motorcycle. It is worth noting that dealers are a good distribution channel since the customer will not have to worry about the shipping arrangements and shipping cost.
For the Search Engine Optimization, the company needs to know the keywords that it is targeting. It needs to optimize web pages to gain the rankings. To build on the content, it needs to build relationships with bloggers who are well known in the industry and other companies that may help you acquire sales. For the Pay-Per-click ensure that the targeted keywords are directing customers to the right web pages. The affiliate program requires the company to build relationships with the affiliates and check out the marketing techniques that the competition is using. When using emails, ensure you check whether the tool is working effectively. The experience tour can be conducted within the first three months of the product launch. In the tour, the company should showcase the entire product line to show the customers the different flavors available. The tour should include test drives so that the potential customers can learn about the performance and speed of the bike.
Overall, monitor the performance of the tools in use using Key Performance Indicators such new visitors in a site and conversion rate. There will also be meeting to discuss the progress of the marketing program that has been set up and provide new ideas to improve it. Performance of the team implementing the marketing program will also be evaluated. The implementation will include monthly evaluation meetings that must be done to reach the overall six months targets outlined above.
Conclusion
In conclusion, the marketing plan outlined above needs to be accompanied with a budget to ensure that the company’s resources are fully utilized. The team involved in the implementation process must execute the action programs laid out in the plan. Implementation must also include continuous performance checks to ensure the marketing program is still working. The performance checks can be done weekly or monthly depending on the needs of the company. The company should also include a rewarding system for the employees when they meet their targets. This will motivate them to work harder which eventually boosts sales. To gain maximum results, the team must retain customers as has been the case with other Ducati models.
References
Australian Motorcycle Sales Figures 2015. (2016). MCNews.com.au. Retrieved 1 October 2017, from https://www.mcnews.com.au/australian-motorcycle-sales-figures-2015/
18 Ducati Scrambler ICON Motorcycles for Sale in Australia. Retrieved 30 September 2017, from https://www.bikesales.com.au/bikes/ducati/scrambler-icon/
Chaffey, D. (2016). Introducing RACE: a practical framework to improve your digital marketing – Smart Insights Digital Marketing Advice. Smart Insights. Retrieved 30 September 2017
Duncan, W. (2016). Harley-Davidson Case Analysis. Slideshare.net. Retrieved 30 September 2017, from https://www.slideshare.net/WilliamDuncan13/harleydavidson-case-analysis
Gobert, A. (2017). Australian motorcycle sales down during first quarter of 2017 – MotoOnline.com.au. MotoOnline.com.au. Retrieved 30 September 2017, from https://www.motoonline.com.au/2017/04/11/australian-motorcycle-sales-first-quarter-2017/
Rough Crafts Turns the Ducati Scrambler into a Wild Beast. Luxatic. Retrieved 30 September 2017, from https://luxatic.com/rough-crafts-turns-the-ducati-scrambler-into-a-wild-beast/
Smith, P., & Chaffey, D. (2012). EMarketing eXcellence. Hoboken: Taylor and Francis.
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