Entering the cruiser market
The advantage of entering the cruiser market is that entering a new segment will
provide new avenues for revenue growth. However, they should NOT enter the
cruiser market due to the following reasons:
Reasons
for not
entering
cruiser
market
Ducati primarily caters to the 18-35 demographic. Cruiser target segment is
much older (~40-45 years) and Ducati brand may not appeal to them
Core attributes identified by Ducati that signify their uniqueness and identity
i.e. Desmodromic dist. system, L-twin engine etc. will not be suitable for the
cruiser market
Ducati shall essentially be playing a Same game strategy against Harley. The
branding strategy of Ducati through The World of Ducati like Ducati Owner
Club, has already been entrenched into the core of Harley lifestyle branding.
Harley also has a similar production and distribution strategy as Ducati, making
it tough to Ducati to identify a competitive advantage to enter the market
Ducatis sales cost as a percentage of total revenue is clearly inferior to
Harley
It may lead to a reduced emphasis on their core product i.e. superbikes