Case Study Analysis

DUCATI
Kanika Virmani 13P146
Kaushik T nihalani 13P148
Mayank Rathore 13P150
Rishi Chaturvedi 13P162
Shashank Shukla 13P166
Situation Analysis
Marked 3 differentiators of the Ducati Brand:
a unique and differentiated product,
a group of highly skilled pro-active engineers
a brand with high loyalty

Set out with 2 goals:
double-digit revenue growth
An EBITDA ratio comparable to Harley-Davidsons of 20 percent

Situation Analysis
Made a major investment in Ducati museum

Relied heavily on outsourcing and by 2001 was outsourcing 90 percent of its
production. It maintained only the manufacturing of crank cases and cylinder
heads and assembling of its bikes at its production facility in Bologna

They also implemented kaizen and Toyota Production System.

All these steps helped to increase profits till 2001 but they flat-lined after
that till 2006
Situation Analysis
It appeals to niche markets and is not trying to diversify too much out of fear
of Brand Dilution

Never indulges in Direct Marketing, instead relies on local Ducati Clubs,
its presence on racing circuit

it is a formidable team

The internal customers of Ducati are very satisfied with the product and the
brand

Problem Anaysis
Internal
External
Internal Issues
product discontinuity - changes in a successful
product
trouble with customer acquisition model
local distribution channel in US
no in-house marketing team to assess customer
needs in the future
10million unique online visitors, 500000 museum
visitors - all the hype was not translating into sales
Wanted to cater to a particular segment
making a dent in the US market where the 500cc +
was a growing segm
drop in motorcycle demand
US dollar depreciating
decrease in demand for apparel
and accessories
External Issues
Decision Analysis
It should open up to new markets like India, Russia
etc.
Try to setup manufacturing bases in South Asian
countries to cater local markets and cut costs
Launch of products must be backed by new market
research channels.
Thank You