Market reports – Ducati by hill and by dale – Used DUCATI

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Ducati by hill and by dale

Market reports - Ducati by hill and by dale - Used DUCATI

With 2.9% of the large-displacement market share, Ducati just retains its rank. Why the Italian brand in profile high-end and sportyis it not taking advantage of the expanding market? Edouard Lotthe’s explanations.

Ducati sold 3,163 motorcycles in 2005 against 3,117 in 2004, an increase of + 1.5% while at the same time, the large cube market rose by more than 6 points…

For Edouard Lotthe, Ducati France marketing manager, however, the results remain "positive"given the current economic situation: the Monsters see their sales increase by 7% and the 999s doubles its numbers.

Moto-Net: What is your assessment of 2005? ?
Edouard Lotthe, Ducati France marketing manager: The 2005 results are generally positive for Ducati because we have achieved our objectives with an increase in registrations in a French market strongly driven by prices and therefore not very favorable to Ducati, a brand positioned on the high end of the sporting range. 2005 is also another year of growth for niche brands in the market for motorcycles over 500 cc. The aging of the biker public and the increase in its resources are strongly contributing to the growth of specialist brands such as Triumph, BMW, Harley-Davidson or Ducati … This hedonistic and more mature public seeks above all motorcycles with character and strong picture.

Moto-Net: Which are your best-selling models and why ?
E. L .: With 771 registrations in 2005, the Monster S2R is Ducati’s best seller on the French market. This performance is the result of a dynamic segment of the roadster market in which it has found its place by offering a good balance between design, equipment, character and price. Overall, the Monster family is doing well with sales growing 7% in 2005.

Moto-Net: Which ones are less successful and do you know why ?
E. L .: The Supersport family, made up of the SS800 and SS1000 DS, sporty motorcycles with a strong character, has reached the end of their life and therefore records more confidential results. Nonetheless, Supersports are the entry level sports Ducati and remain financially accessible and very rewarding motorcycles. They therefore deserve to be better considered in the alternatives of motorcyclists.

Moto-Net: What was the pleasant surprise of this year ?
E. L .: We expected the S2R to be successful. Nevertheless, the results of this Monster have exceeded our forecasts. !

Moto-Net: Which was the worst ?
E. L .: The results of the Multistrada 620 are not in line with our forecasts and with the qualities of this bike which have been praised by the press and by all the bikers who have had the opportunity to try it. It is now clearly recognized that the positioning of the Multistrada 620 against the competition is not obvious to motorcyclists. Consumers are used to classifying motorcycles by displacement. The displacement of the Multistrada 620 positions it against motorcycles that are more affordable but without comparison in terms of use and versatility.

Moto-Net: In 2005, you hoped to nibble on market share thanks to the S2R, the 620 Multistrada and the 999 redesigned and improved performance. What about ?
E. L .: The S2R is a commercial success. It represents 25% of Ducati’s sales for the 2005 season. The price positioning, level of equipment and design of this motorcycle are the keys to its success. At the same time, the Roadsters segment grew by 6%. Ducati recorded an increase of 7% in this segment, which allows us to consolidate our presence in this segment. Registrations of the 999 family increased by 13% in 2005. This development is particularly impressive on the high-end versions (+ 118% for the 999s). Lovers of exceptional motorcycles have therefore appreciated the advances offered on these machines compared to the 2004 package. The Sports segment was down in 2005 (-7%) and the position of the Ducati Superbikes was therefore strengthened. Finally, the arrival of the Multistrada 620 has enabled us to grow by 24% over the Multistrada family in a Dual segment which has grown by 1%.

Moto-Net: Harley and Triumph have progressed by 20% and 56% respectively thanks to their range of “strong character” motorcycles. Are Ducatis lacking ?
E. L .: We salute the performance of Triumph and HD over the season! We fully understand their satisfaction, as we have experienced the same type of double-digit growth in previous years. Ducati’s performance in France this season is very satisfactory since we are maintaining our share in a market that is not favorable to a high-end and sporty positioning. Who really has a question about the character of the motorcycles produced by Ducati ?

Moto-Net: What are your goals for 2006 ?
E. L .: Passion is the main engine of Ducati. In the years to come, we will endeavor to offer all our fans exceptional motorcycles adopting innovative technical solutions and a design in their own right. We will continue to keep the technical solutions specific to Ducati: a twin-cylinder engine, a tubular trellis frame, a desmodromic distribution system, etc. The Desmosedici RR and the Hypermotard concept bike perfectly embody this philosophy..

Ducati’s development will also go through entering new market niches, as is the case this year with the arrival of the SportClassics, the third part of which, the GT1000, will be marketed in May 2006. We are betting a lot on the potential of this new family which should allow us to reach an enthusiastic audience of motorcyclists wishing to combine motor character and classic spirit.

Moto-Net: Are you satisfied with your network ?
E. L .: Since the creation of Ducati France in 1998, one of our priority objectives has been to support the network in its qualitative development, through technical training to guarantee know-how and an optimal level of competence, the endowment of modern diagnostic tools adapted to new on-board technologies. We have also endeavored to support the network towards better representativeness on the territory through the reorganization of stores, the opening of new exclusive points of sale, and new Ducati Stores. We continue to work in this direction to guarantee the level of service and hospitality that Ducati customers have a right to expect.

Moto-Net: What will be the consequences of the buyout of Texas Pacific Group shares by Investindustrial ?
E. L .: It is still too early to answer your question specifically today. Investindustrial is one of the major private investment funds in Southern Europe. He specializes in investments with an industrial approach, in medium-sized companies, mainly in Italy and Spain. Its mission is to actively contribute to the development of the companies in which it invests, by creating growth opportunities and offering global solutions through an entrepreneurial and pan-European vision. We are certain that Investindustrial is the ideal partner that Ducati was looking for. This new investor will provide the company with the support and resources necessary to achieve the level of success that Ducati deserves. !

Interview by Matthieu BRETILLE

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