situation analysisThere are many competitive brands in the motorcycle industry. The main competitors are Harley Davidson, BMW, Kawasaki, Honda, Suzuki, and Yamaha. The Victory Vegas 8-Ball is priced around $14,000. Of all of our competitors in this motorcycle category, cruiser style motorcycle, BMW has the highest priced motorcycles which are around $18,000. Harley Davidson is comparable to our motorcycle with prices ranging around $15,000. Yamaha’s motorcycles are priced around $13,000. Kawasaki’s comparable cruiser bikes average around $11,000. Suzuki is moderately priced with motorcycles in the $11,000 range. Honda motorcycles are a little cheaper with prices ranging around $9,000.

The main advertising messages that it seems all of these companies are using is along the lines of fun, excitement, freedom, and speed. Brands like BMW and Harley Davidson take on two specific brand images. They both take on the sophistication because they are considered more upper class. BMW, Harley Davidson, and the other brands all carry the brand image of excitement. All of these brands are perceived as daring, spirited, imaginative, and up-to-date. The messages they give their consumers give pictures of people riding down highways, at what seems like high speeds, taking tight corners, and enjoying the freedom of the open road.

All of these companies schedule their media along the same lines. What seems like the biggest place for advertisement is trade periodicals. Magazines like Cycle World, Rider, American Rider, Bike, Classic Bike, Cruising Rider, Motorcycle Cruiser, and Street Chopper are the most popular motorcycle magazines that have articles containing information about the roadster style bike. Also, male interest magazines, such as GQ, Esquire, and Men’s Health have advertisements in motorcycles primarily from BMW and Harley Davidson. The television advertising done by motorcycle companies are on channels primarily for men. These channels include Speed Network, G4 TV, Spike TV, Bravo, USA, FOX, FSN, ESPN, and Outdoor. Their television advertising is not as heavy as many other products but it is there.

It seems that motorcycles, like many high priced products, offer sales promotions with sales, particularly along the lines of financing. All of these companies offer competitive financing offers like no down payment, low monthly payment, and no interest for a specific time period. It seems that to stay competitive in the market companies must make it easy for customers to afford these products.

Each of these companies has a website. Most offer their website as a way to target specific countries by having the website in the language and what products they offer in that country. Many of the sites let you customize the motorcycle that you want and give you a printout of the price and what to take to the dealer to have them order the bike for you, to your specifications. It plays very well into the idea that people want their motorcycles built specially for them. There are many reasons that a person would want to purchase a motorcycle. People enjoy driving a motorcycle for the thrill. They get the thrill of driving the motorcycle with road just inches from their feet. They also get the thrill of having to balance on two wheels on the road while straddling a power engine between your legs. Another reason people want to drive a motorcycle is for the speed and power. Many cars don’t offer consumers the available speed and power that a motorcycle can, especially for the price. Another great reason why someone would want to purchase a motorcycle, especially now, is for the fuel efficiency. Motorcycles can get upwards of 50 miles per gallon. There is also a special culture related to motorcycles. There are many groups of people who journey out together to enjoy the scenic areas of the country. Motorcycles are also a great way to get through heavy traffic areas. People can also enjoy the freedom of the open road, with the wind blowing through their hair.

One of the main reasons for not purchasing a motorcycle is the safety issue involved. Motorcycles can be very dangerous, especially with an inexperienced rider. Night driving, congested roadways, and other automobiles are major concerns that have to be considered more thoroughly for a motorcyclist than a regular automobile. Many people consider this the main reason for not driving a motorcycle.

The motorcycle industry is a $14.6 billion market in the United States. There are approximately 6.6 million motorcyclists in the United States. These motorcyclists spend approximately $7.5 billion on new motorcycles

Our customer base has many characteristics. 9 out of 10 motorcycle owners are male. The average motorcycle owner is 38. 60 percent of motorcycle owners are 35 or older. The median household annual income of a motorcycle owner is $44,250. One-third of the households have an annual income of more than $50,000. Motorcycle owners tend to live in mostly white, rural counties in the west and Midwest, and where traffic free back roads are plentiful. Motorcycle riders are more likely to crave excitement, freedom, risk taking, and showing off. Older riders like the comfort of cruisers because they have a more relaxed seating position. Comfort and style are key features that the Baby Boomer looks for in a motorcycle. Motorcycle owners are typically more educated and aspire to have a clean living.

An external development that is affecting motorcycle industry right now is Hollywood. With the new movie release, Wild Hogs, it is anticipated that motorcycle sales will grow significantly. This movie glamorizes the use of motorcycles with famous actors going through midlife crisis. This plays well into the idea that the Baby Boomer generation is the largest market for motorcycles, and will spark the interest of many more to purchase a motorcycle.

There are many regulatory matters that impinge on being able to drive a motorcycle. First the person needs to pass a written test administered by the Secretary of State. They also need to pass safety course or road skills test that is administered by a state certified road skills testing organization. To pass these tests it is almost necessary to enroll in classes that cost money and are often time consuming. This can be disheartening to the Baby Boomer who is still working and may not have time to go through all of these courses and tests.

victory’s vegas 8-ball

victory’s vegas 8-ball

swot analysis

internal factors strengths weaknessesmanagement Experienced and entrepreneurial

management and boardSmall size can restrict options

marketing Well thought of by buyers

One of few motorcycle stores in the area

Little advertising

Very involved purchase decision

manufacturing Available manufacturing and repair capacity

High overall production costs relative to competitors

r & d Very innovative

Continuing efforts in ensuring quality motorcycles and parts

Time and money required to bring new products to market can be overwhelming

finance Excellent growth in sales revenue in spring and summer months

Weak cash flow position in the winter months

offerings Unique, high-quality, high price products High prices

Lower quality, lower price competitors

external factors opportunities threatseconomic Upturn in local economies giving more

people disposable incomeDownturn in Michigan’s economy giving people less disposable income

competition Distinctive name, packaging, and storefront

Entry of lower-cost foreign competitors

consumer trends Upscale market is likely to remain stable

Increase demands in motorcycles

Premium prices may limit access to mass markets

technology New breakthroughs in safety features

New designs and customizations available

Safety features cost more to manufacture which leads to higher prices

legal/regulatory High standards in roadway safety High standards in roadway safety mean harder to get endorsements

High insurance costs for new riders

targetingIn terms of demographics, the primary target market of Victory’s Vegas 8-Ball is white men aged 35 to 50 years of age. We are targeting this group that has an annual household income of at least $45,000. These men will also have had a higher education.

In terms of psychographics we are targeting men who may be going through that mid-life crisis. These are the type of men who want a change in their life, maybe to appear more youthful and relive their young and exciting days. These men want a little more excitement in their lives. They are starting to question what they have done with their lives and are probably unhappy with their nine to five lifestyles. With these men we want them to have the impression that by riding our motorcycle they will be perceived as a risk-taker. We want them to feel that they have the freedom of the open rode, and not feel tied down to family or work related obligations. These men will fear and admire the associated risks with this motorcycle. There is always the perceived risk of riding a motorcycle, and it will be this market who will want to venture out and enjoy the speed and risks involved with this motorcycle. With the rising gas prices these people will also know the cost savings from the great fuel efficiency they will receive from the motorcycle.

In terms of behaviorgraphics we will be targeting men who already have their motorcycle endorsements. We will be obtaining lists of people from the Department of Motor Vehicles and the Secretary of State. These lists will give us names and addresses of people who have the motorcycle endorsement, meaning they have gone through the process of driver’s education of motorcycling. Since these people have already gone through the trouble of obtaining this, they will be more interested in motorcycles than people without the endorsement. These men will also use the motorcycle for more of a leisure time activity, instead of a more practical use of transportation. They will more than likely still drive their cars to work, but on the weekends they will cut loose, and enjoy the open road.

In terms of geodemographics we will be targeting people in specific regions of the United States. These regions include the west and Midwest. Most motorcycle owners live in these areas of the United States. These regions are well known for their practically traffic free back roads and beautiful scenery. Also most motorcycle owners live in the rural areas of these regions. This is why we are taking on a cooperative advertising campaign with Hickey’s Black Metal Choppers in Saginaw, Michigan.

Our secondary market is comprised of men aged 18 to 34 years of age. This younger generation of motorcycle enthusiasts will be much like our older primary group. They will be located in the same regions of the United States, the west and the Midwest. These men will also want to have the same freedom that the older market will strive for. They will also want to feel rebellious. This will be the market of younger people who may not be going through a mid life crisis, but still want to feel their age or younger. This group also enjoys the perceived dangers of riding motorcycles. Knowing that there is the risk involved they will appreciate the speed of the motorcycle and this will make them feel more rebellious. These men will be more inclined to drive the motorcycle for practical purposes. Not only will they seek the improved fuel efficiency they will also want to use it for its ease of mobility.

It is estimated that there are 6.6 million motorcycle riders living in this area. These 6.6 million spend approximately $7.5 billion a year on new motorcycles alone. That cost estimate does not include the various aftermarket accessories that can be added on to the motorcycle after the purchase. This is a very large amount of people for only two regions of the United States. This also means that there may be room for expanding our targeting to different regions, if this proves successful.

victory’s vegas 8-ball

positioningThe position Victory is taking in advertising with the Vegas 8-Ball is to position itself as a better, more stylish motorcycle. The variety of advertisements that we will be using will be based on the position that Harley-Davidson has as a “hog”. The hog image comes from the Harley Owners Group, taking the first letters of each word. When an unaware consumer sees a cruising motorcycle and hears a loud exhaust, it is not uncommon for them to say, “That is a nice hog”, when in fact it may not be a Harley-Davidson. So with the position that we are taking we are going to de-glamorize the image of the hog by comparing our motorcycle to an ugly warthog. We understand that people who may not understand the warthog imagery at first.

We feel that this will get their attention, and make them want to read the rest of the advertisement, where they will then be able to put the two together. When we asked men in our demographic age range what they though about the Vegas 8-Ball, compared to a Harley Davidson, everyone said that the Vegas 8-Ball was in fact more stylish, more powerful, and overall better priced. In another one of our advertisements we use attribute positioning to show that the motorcycle is fast. We took the engine specifications and posted them below the picture of our motorcycle. We made them a lighter grey font so that interested buyers wouldn’t feel as though they had to read the entire list. Below the list we put the phrase, “Or, simply put, fast.” When the consumer reads that they may feel more compelled to read the specifications of the engine, especially if they know what it means.

Our budget for advertising is comprised of around 2% of Polaris’ selling and marketing budget for the year, which is 108,395,000. Our total expenses are 2,255,924. Broken down this way

Billboards 214,270 Magazines 620,346 T.V. 1,228,487 Radio 192,821 Total 2,255,924

billboards Our costs are for production and rental for 8 billboards around Saginaw, Bay, and Midland counties for 12 months. We will be placing them primarily on I-175 and I-675. We chose these two locations because of the proximity to Hickey’s Black Metal Choppers, who sell this motorcycle and other Victory products. In this category of our advertising budget we will also be including bathroom advertisements. We will have a full stall door advertisement that will be put in men’s bathrooms at bars that motorcycle riders attend. This advertisement will be similar to wallpaper.

magazines

Our costs are for production and space on the back cover of every issue of Easy Rider for one year. We will also advertise on the inside cover for a year in Biker, and also a one page ad in Auto Trader for a year. The images of our advertisements will change with every issue to intrigue the reader, but will also maintain verbal and visual continuity so the reader will be still be familiar with the advertisement, but will have a change in images.

t.v.

Our costs are for production and commercials ran on ESPN, four times a day. We will have our advertisements ran during Sports Center with two, 30 second commercials between 6:00am - 9:00am and twice between

budgeting and marcom implementation

5:00pm and 7:00pm. Commercials will also run on Speed Channel during Two Wheel T.V. three times between 5:00pm & 7:00pm every Wednesday. These will run for a year, changing weekly.

radio

Our costs are for production and eight, 15 second spots each day for a year on citadel affiliates such as 93.3 and 104.5. We will be changing the spots monthly so that we make sure we reach our entire target market.

sales promotions

We plan to run are monthly discounts and items that involve the purchasers of bikes, maybe a wheel with different discounts and free accessories given for purchasing this motorcycle. Also we will run a promotion for people who purchase our motorcycle, to win a stay in Daytona Beach for one week for Bike Week. We also plan to donate motorcycles to motorcycle classes for the motorcycle endorsements and also to testing facilities. We feel this is good because it puts potential buyers on our bikes to let them know what Victory motorcycles have to offer. Some of the events we are going to sponsor are the Mountain Rock Music Festival in Farwell, the Country Music Fest in Saginaw, the Midland County Fair, and also Daytona Bike Week. At these events we plan to have bikes on display under a tent, letting people get their picture taken on the bike with a girl in a bikini behind them for the men and for the ladies a guy behind them. We will also be giving out t-shirts and other little trinkets. For this we are planning to spend roughly another 2% of Polaris’ selling and marketing budget for the year.

To help us with our marketing we will be doing a cooperative advertising campaign with local retailers of our products. The main retailer that we will be working with in the Tri-City area is Hickey’s Black Metal Choppers. We will be supplying them with all of our marketing tools we have already created. When we give these to them, it will be their responsibility to carry out a marketing communications plan with local television, radio, and publications. We will be giving them full rights to edit our communication tools.

Using cooperative advertising with our retailers, coupled with our own regional Midwest advertising, we will be able to successfully maintain momentum. Since Polaris will be using the major television and publications to market this motorcycle and the local retailers will be using public and local television, with local and regional publications we will be successful in getting our message across to our target market. We feel that if the retailers use these marketing tools that we have supplied to them they will bring success to their company and Polaris.

victory’s vegas 8-ball

Like stated earlier, with local retailers and Polaris working together to market the Victory Vegas 8-Ball, we will be able to saturate the market with our advertisements. There will be absolutely no way that anyone in our target market will be able to avoid seeing an advertisement for this motorcycle.

The Victory Vegas 8-Ball is a brand new model of motorcycle and will be placed on the market this summer. No marketing or advertising has been done for this motorcycle. We will measure the effectiveness of our marketing campaign with two measures. The first measure will be inquiries about this motorcycle. This will be tracked primarily at the retail store level. Whenever someone calls and inquires about the motorcycle, their name, phone number, and mailing address will be taken along with how they heard about this motorcycle. We will store this information in our databases to use for future marketing communication programs. The next measure that we will use is actual purchases. When a person purchases one of our motorcycles, we will also collect their name, phone number, and mailing address. With these two forms of measurement we will be able to measure the effectiveness of our marketing communications campaign.

marcom program evaluation

victory’s vegas 8-ball

creativeThis first print advertisement that I created does not seem to be anything special. The goal of this advertisement was not the picture itself, but more the location. Since we decided to do event sponsoring in Daytona during Bike Week, I thought it would be an excellent idea to take these advertisements and place them in the bathrooms along the major highways at rest areas, local “biker” bars, and restaurants that groups would stop at. They would be placed inside of the bathroom stall and wallpapered to cover the entire door of the stall. The person sitting on the toilet would be in the same position he would be on the motorcycle, so it would look almost like he was straddling the motorcycle.

victory’s vegas 8-ball

This was also another idea for a bathroom advertisement. This one could be used for the same purpose of wallpapering a bathroom stall, or it could be used to put in front of a urinal. It was just another concept that I developed for this campaign.

victory’s vegas 8-ball

This print advertisement and the one that follows are a series of ideas that I came up with comparing Harley Davidson motorcycles to the Victory motorcycle. It is fairly well known among bikers that the Harley is referred to as a hog. We used this connotation in a negative way to portray Harley’s as unattractive motorcycles. When viewing the advertisement at actual size, it is much more clear that the hog is drooling.

Like stated for the opposite advertisement, this is a continuation of the hog advertisements. We would maintain continuity with these advertisements with the pictures of the hog and the motorcycle and with the slogan, “Better Lookin’ Than A Hog”.

victory’s vegas 8-ball

This idea for the print advertisement was for motorcycle enthusiast who may not know much about motorcycles or engine specifications. It may be their first time riding a motorcycle. It was my intent to have the specifications in a lighter text color so the viewer’s eyes would immediately jump down the slogan.