Ducati Business strategy

The turnaround program was aimed to increase Ducati’s sales and profitability at the beginning. In order to attain these goals, Ducati broadened its product portfolio, restructured and strengthened its distribution network, focused on developing the brand name, and tried to raise production efficiency.

 

The program also aimed to fulfill customers demands and to strengthen the brand name. To attain these goals, Ducati’s motorcycle features were critical in distinguishing Ducati from other products, and hence attracted customers and built loyalty. Besides introducing new models, Ducati kept upgrading its existing motorcycles through design and technical innovations. 

Ducati products were selling worldwide via independent privately owned dealers as a global brand. Ducati stores were exclusive Ducati outlets that selling motorcycles, spare parts, accessories, and apparel. They offered a customized retail environment with an increased level of service and technical support. If the market is not big enough to justify setting up an exclusive Ducati store, a Ducati corner would be set up in a large multi-branded dealer outlet.

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Ducati marketing strategy in view

History of Ducati

Ducati background was back in 1926 when three italian brothers founded the Societa Scientifica Radio Brevetti Ducati in Bologna, Italy. The first company of Ducati was built for manufacturer radio, vacumm tubes and condensers. But Aldo Ferrinelli in group og SIATA produce a new pushrod engine for bicycles. But SIATA sold the copyrights pushrod engine to Ducati's firm. Then in 1944 Ducati's produce this cycles in 60cc engine and were sold about 20000 cycles in that year making Ducati put in lips for motorcycles interests.


In 1950, after more than 200,000 Cucciolos had been sold, in collaboration with SIATA, the Ducati firm finally offered its own Cucciolo-based motorcycle. This first Ducati motorcycle was a 60 cc bike weighing 98 lb (44 kg) with a top speed of 40 mph (64 km/h) had a 15 mm carburator giving just under 200 mpg (85 km/L). Ducati soon dropped the Cucciolo name in favor of "55M" and "65TL".


In 1953, management split the company into two separate entities, Ducati Meccanica SpA and Ducati Elettronica, in acknowledgment of its diverging motorcycle and electronics product lines. Ducati Elettronica became Ducati Energia SpA in the eighties. Dr. Giuseppe Montano took over as head of Ducati Meccanica SpA and the Borgo Panigale factory was modernized with government assistance. By 1954, Ducati Meccanica SpA had increased production to 120 bikes a day.

In the 1960s, Ducati earned its place in motorcycling history by producing the then fastest 250 cc road bike available, the Mach 1. In the 1970s Ducati began producing large-displacement L-twi (that is, a 90° V-twin) motorcycles and in 1973, released an L-twin with the trademarked desmodromic valve design. In 1985, Cagiva bought Ducati and planned to rebadge Ducati motorcycles with the lesser-known Cagiva name (at least outside of Italy). By the time the purchase was completed, Cagiva kept the "Ducati" name on its motorcycles. In 1996, Texas Pacific Group bought a 51% stake in the company for US$325 million; then, in 1998, bought most of the remaining 49% to become the sole owner of Ducati. In 1999, TPG issued an IPO of Ducati stock and renamed the company Ducati Motor Holding SpA. TPG sold over 65% of its shares in Ducati, leaving TPG the majority shareholder. In December 2005, Ducati returned to Italian ownership with the sale of Texas Pacific's stake (minus one share) to Investindustrial Holdings, the investment fund of Carlo and Andrea Bonomi.

                                                          first ducati cucciolo in 1950

From the 1960s to the 1990s, the Spanish company Mototrans licensed Ducati engines and produced motorcycles that, although they incorporated subtle differences, were clearly Ducati-derived. MotoTrans's most notable machine was the 250 cc 24 Horas (Spanish for 24 hours).