What Is Ducati's Business Level Strategy? How Do We Understand It?

What is Ducati's business level strategy? How do we understand it?

In this case study, Ducati is clearly moving toward using a differentiation strategy. They already have a strong engineering culture with a real passion for races that offers high quality motorcycles with the Desmo system which is the 'soul of the Ducati motorcycle with its deep intoxicating noise that is music to the ears of purists'. They also have one of the highest brand loyalty with approximately 55% of their small customers making repurchases in their brand. Their idea is to move from a pure mechanical selling company to an entertainment company as they want to sell more than just motorcycle: 'a dream, a passion, a piece of history, with the Bucati motorcycle at its core'. In order to add unique features to their motorcycle, they created several intangibles attributes such as the 'World of Ducati' which offered promotion activities to their customers. They built a museum, put into places Ducati events and owner clubs to make their customers feel special and part of a family. They offered custom-made bikes as well as several limited editions such as the MH 900 Evolution and the 996 R to increase exclusivity-feel of their customers. Their races event were used to advertize their company. They also extended their product offering with new accessories in term of high quality Ducati-branded riding gear to create a sense of value from their customers. Lastly, they differentiated themselves by increasing the control over the dealers that sold their motorcycles, as well as decreasing their number. This put a pressure on the availability of their motorcycle and offered them the opportunity to open their own Bucati stores to increase customer service and add value to their motorcycle, increasing the exclusivity that was felt by their customers.