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Thunder Road Turnaround

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Presentation on theme: "Thunder Road Turnaround"— Presentation transcript:

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2 Thunder Road Turnaround
The US motorcycle market continued its long climb from the recession-driven low spot of 439,678 units sold during to 483,526 for 2014, a 3.8% increase in sales, compared to Each succeeding year since 2010 has registered an increase. This trend continued into 2015, with Q1 sales increasing 8.2% over Q1 2014, 5.1% through Q and 4.7% through Q Dual-purpose and on-highway models were the primary drivers of the 2015 sales increase, at 6.9% and 6.4%, respectively, through Q Scooters sales declined all year to a 10.9% decrease by the end of Q3.

3 Market Share Shifts The biggest news in the motorcycle market during was Harley-Davidson’s struggles, with sales decreasing 2.5% and market share 3.9% during Q Not only does its primary market of middle-aged and Baby- Boomer-aged European American men continue to age and shrink, but also foreign manufacturers offered significant discounts throughout 2015. Polaris Industries has been grabbing some of Harley’s market share with the aggressive marketing of its Indian motorcycle line. Total motorcycle sales increased 74% during Q and another 154% for Q

4  Dealer Details According to Motorcycle & Powersports News’ Powersports Industry Profile, 36% of surveyed readers said their primary type of business was new and used motorcycles at a single location and 33% said they were service shops only. Of all readers responding to the survey, 91% said they sold motorcycles; followed by all-terrain vehicles, 53%; scooters, 48%; SXS vehicles, 41%; personal watercraft, 23%; and snowmobiles, 18%. Half of all dealers said their unit sales increased during and 55% dollar sales while just 27% experienced both lower unit sales and dollar sales.

5 The Rider Is Always Right
Consumer Reports’ subscribers survey and their feedback on more than 12,300 motorcycles, 2008–2014 model years, found that Japanese brands were the most reliable. US cycles Victory and Harley-Davidson had average reliability. Victory garnered the highest owner satisfaction, at 80%; followed by Harley-Davidson, 72%; and Honda 70%. The three-wheel Can-Am motorcycle from BRP was among those least reliable, had the lowest rating for handling satisfaction and was twice as likely to need repairs than all other brands.

6 Navigating the Future According to the Motorcycle Industry Council’s Motorcycle Owner Survey, 14% of all US owners were women, compared to 12% during 2013 and 8% during 1998. The percentages are even larger among younger demographics, with 17% of Generation X and 17.6% of Generation Y (Millennials) women. Only 9% of female Baby Boomers were motorcycle owners. Among a number of 2016 trends published in the December issue of Motorcycle & Powersports News was the forecast of increasing consolidation among dealers, as dealer groups will buy more of the smaller family-owned dealerships.

7 Advertising Strategies
Research from The Media Audit suggests that early morning news may be one of the best local programming slots for motorcycle dealers to reach young adults, especially the growing market of Generation X and Generation Y female riders. With service driving overall sales and profitability for many dealers, now is the time to plan a spring 2016 service special with a combination of TV and social media posts based on the Consumer Reports data, including videos showing the important service checks and repairs. Local and/or regional dealership groups should use TV aggressively to announce their acquisition of smaller family-owned dealerships and promote a re-grand opening special during the spring season.

8 Social Media Strategies
Invite customers and local riders, in general, to share their spring and summer motorcycle trips by posting daily updates of their travels and photos and videos of destination discoveries. As mentioned above, dealers should use social media to share relevant and helpful content about self-servicing of motorcycles, which services require a professional and projected repair needs for various brands throughout their usable lives. Dealers can generate significant interest with a regular series of podcasts, interviewing manufacturers’ reps about the newest models and motorcycle racing professionals when in the area and allowing dealership salespeople to host podcasts with interesting topics.

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