Victory Motorcycles the Mission for

Victory Motorcycles The mission for Victory Motorcycles is to dominate the cruising bike segment of the North American motorcycle market. There are a number of objectives for the company with respect to marketing. The first is to be the market leader in cruising bikes. The second is to double the company's current share of the U.S. motorcycle market in one year. This follows on the 83% increase in sales year over year that Victory saw in Q1 of 2010 (U.S. Rider News, 2010).

Sales outside North America, which currently account for 25% of all sales, are to be increased to 30%. Financially, Victory contributes significant profit to Polaris. The objectives of the new marketing plan are to increase this profit contribution to the parent company. Polaris profits should increase from $3.48 per diluted share to $4.00 per diluted share for the next fiscal year as the result of these increases.

The recent strengthening of the euro should have positive currency impacts on our bottom line, so it is desired that the company increase European sales by 40% over the coming year, which should increase our total sales outside North America and help achieve profit objectives. There are two primary target markets for the Victory marketing campaign. The first is Europe, where the company has seen strong growth and where the currency is strong at present relative to the U.S. dollar.

Within North America, Victory will seek to improve its share among consumers 45-65, a core demographic for Victory's line of cruising bikes. Both males and females will be targeted within this demographic. Although Victory's current customer base is 95% male, it is felt that there is considerable market potential within both of these markets, in particular at younger ages when the wives of current customers may join their husbands on a cruiser tour (WRN, 2007). The target market is relatively wealthy and loves life on the road.

Our marketing strategy will continue to reflect the values of these consumers. Victory Motorcycles have been traditionally positioned as luxury products, and that will not change with the current marketing program. The focus on the positioning will still be on customers who love touring, both in Europe and North America. The products are differentiated on the basis of their comfort and styling, and this will be reflected in the marketing. Lifestyle marketing is a key component of the strategy for the marketing of Victory Motorcycles.

The strategy will include marketing extensively online and in travel and bike related publications. Victory bikes are also marketed through word-of-mouth, including in Victory owners clubs. The tactic of this campaign will be to increase the brand association with touring and luxury riding. For instance, an increase in visuals and associations with other elements of touring pleasure will be fostered, beyond the riding experience.

The marketing mix will primarily be focused on print and online media, as the product is niche and the marketing should be focused directly at Victory's core consumers. Word of mouth promotion will also factor heavily in the marketing mix. The current price ranges reinforce the luxury branding. The dealership network will be studied to determine if there are better ways of reaching customers, in particular with our high-margin custom bikes. Victory Motorcycles will rely.