Ducati motorcycles in renaissance
Ducati is back. Buffeted by the crisis in 2009, the Italian manufacturer of sport bikes up to the outposts. After a record 5,600 units sold in April – the best month ever for Ducati – this niche brand plans to increase its deliveries of 2,011 to 43,000 bikes against 36,000 last year.
To maintain momentum, the group, which owns 8.7% of the global market sportbikes, has implemented such a plan based on continued international expansion. Foreign markets already account for 75% of production, the United States, second country after Italy, already account for 18%.Soon, an assembly plant to Asia will be inaugurated in Thailand and is considered an industrial plant in Brazil to supply South America.
Returned to Italy in 2005 after its takeover by the Alpine fund Investindustrial with the American TPG, small business Bologna (397 million turnover, 1050 people) claims the DNA of sports brands neighboring Emilia-Romagna Ferrari, Maserati and Lamborghini. A commercial asset, like the recruitment of Italian Grand Prix driver, Valentino Rossi, 9 times world champion.
The cost of competition, secrecy, is embedded in 40 million euros in investments, or about 9% of sales.This is not philanthropy: the good results increase awareness, can increase prices and boost profitability, the obsession with the brand payday loan lenders.
A case study
"With an operating margin of 18% in 2010, we are the most profitable manufacturer in Europe," says CEO Gabriele Del Torchio. This margin was only 8.9% in 2006. This improvement obtained after an initial strategic plan (2006-2010) has not gone unnoticed. Since January 1, where Ducati is taught at the London Business School. The search for competitive suppliers in Asia, the increased efficiency of the workforce, halving the cost of warranty (5 million), the removal of some models have improved the financial situation.
To return to the forefront, Ducati has used the same recipe as Harley Davidson, whose record of profitability has exceeded 20%.As the U.S. firm, the Italian brand has focused on the evolution of a single type of engine and high margins. An example? The newest, the Diavel, designed by Harley customers attracted to cost more than EUR 20 000.
The prestige also boosts the price of accessories (25 million turnover in 2010) and derivatives such as clothing (18 million). Licensing agreements were signed, notably with the American Porter Tumi (5 million).