Category Archives: marketplace news

the truth is out there – maybe

dakar rally falls victim to terrorists

no more dakar?!?

A.S.O. condemns the terrorist menace that annihilates a year of hard work, engagement and passion for all the participants and the different actors of the world’s biggest off-road rally.

Today’s announcement from Lisbon and here and here on the eve of the 2008 Dakar (January 5-20) that the event’s been cancelled has rocked the off-road rally community. Organizers list the Christmas Eve murders in Mauritania of four French citizens by terrorists, coupled with continuing threats by reported terrorist organizations aimed at the event and a French government advisory against all travel in the region as reasons for the cancellation.

here’s the forecast – online gets more traction

it was on the internet - it must be true

The Economist reports that London based ZenithOptiMedia is predicting internet ads, at a forecast 8% of all global advertising, will surpass the bucks now spent on radio in 2008. And by 2012, another research firm is estimating nearly 18% of European advertising will be online. This in the context of a domestic recession many think inevitable.

Where is print in this outlook? Weeeeeelll…newspaper profits are predicted to improve as a result of subscription increases and more ad revenue, even as many (see Herald, Miami) continue to cut circ and staff. Often refered to as eating the seed corn.

Big news, though, is the consensus that nearly 90% of marketing departments will or have already launched “social content” campaigns, and that by ’09 marketers will be targeting 25% of their budget for social media. What’s it all mean? At this point it seems that for all but a handful at the very top, online media’s a must-have of don’t have a clue how to.

‘busa blastoff

it’s a bold new world of marketing mix and tech savvy

It’s not news that 40% of Suzuki Hyabusa buyers are black or Latino. What is news is Adweek’s confirmation of an emerging strategy that sucks more resources from traditional – read print – outlays and retargets budget to digital using a combination of focused local media driving new online content.

In this case, the manufacturer’s latest moves can be interpreted as a thorough reseeding of the urban source of those sales, in an effort crafted by their digital agency Questus to capitalize on established brand id by using localized rappers to hype the bike in eleven selected markets.

Local media will then link back to an online music and graffiti site, as this hybrid rolls out over the months ahead. It’s an interesting concept which brings to mind the reopening of underproducing oil wells as the per barrel price perpares to leave our galaxy. It’s not so much mining new market as it is refining the old. At $12K for an ’08, it’s worth it to dig a little deeper in those markets that already produce 30% of sales.

cash makegoods – new pain of giving back

In the heavily discounted world of powersports print advertising make goods for shortfalls are still the norm, but it’s somewhat of a surprise that over in the grown up playground of broadcast that NBC is opting for a cash back plan to the tune of $10-mil over ratings shortfalls.

According to Ad Age, NBC took in $6-billion in 2006, so what’s relevant isn’t the amount of the settlement but why. In this case, make-goods were delayed anticipating a big ratings hit that never occured, and the bigger implications for a move from program ratings to an actual ads viewed basis for compensation.

We mention this because of the predicament facing traditional print publications in an era of declining readership and advertiser defections. Audited circulation notwithstanding, knowing how, where and when to invest in print is becoming more and more difficult for the small industry model that’s the backbone of the aftermarket powersports market.

before long it’s a trend

Advanstar’s announcement this week that they’re shutting down publication of their stand alone American Big Twin comes on the heels of the cancellation of the still-born Big Twin West counter to Easyriders V-Twin Expo.

What began as a quarterly in ’92, then bi-monthly, then monthly before folding into a regularly featured subsection of Dealernews ends life as an ambitious tabloid that entered a crowded field amidst lots of fanfare and minimum market support.

New plan is to produce a bi-monthly dedicated section. The marketing guy in me says, at some point events become trends. And this event’s time has come and gone.

ok, i guess advertising does work

Proctor and Gamble (P&G) is the world’s largest advertiser, and according to Ad Age’s Global Marketing Report earned that title by spending $1-million an hour making sure we knew who to turn to for teeth that sparkle and outdoors fresh laundry. To the tune of around $8.5 billion in ’06, nearly twice that of closest competitor Unilever. And that’s a lot of toothpaste and detergent.

The short take is that P&G wrote the book on knowing the product, knowing the market and supporting the message to reach the desired result.

blackwell tackles dealers, vendors

dealerworld-1107.JPG

LeMans Corp. Sales VP Greg Blackwell offers fresh insight on the dealer-internet situation in the Aug/Sept 2007 issue of Dealer World. In a candid, should-read interview he also touches on marketing, or lack of same, by the aftermarket segment in building brand and creating consumer demand.

“I think a lot of vendors have forgotten how to build demand for their product,” says the Parts Unlimited/Drag Specialties sales overseer.

He makes the points that to retail successfully dealers have to stock product in depth and offer it in a knowledgeable and exciting way, and that product demand and interest is created by the manufacturer, not the distributor. Along the way he also dispells the nagging doubts of some springing from the recent slowdown in two-wheeled sales.

that’s a lot of billet – really

billet mania

According to Professional Motor Sport’s latest issue, the California tool manufacturer Haas Automation is on track as the fastest growing cnc maker on the planet. Sales in ’06 totaled more than 12,500 units. The 2007 target is nearly 14,000 machines, with an annual goal of 15,000 cncs and sales of $1-billion.

That’s a lot of capacity. A lot of aluminum. A lot of aftermarket for the automotive and motorcycle industries. I mention this only because it wasn’t that many years ago when a milling machine was strictly the domain of a tool and die shop, and setup and operation was at the hands of a dedicated toolmaker.

Times change. Once again, without a computer to interpret the programs humans write, it’s fair to contemplate an aftermarket much, much smaller. And at this rate of growth, it’s almost possible to imagine a time when shopping for a new home might include a 3br/2ba/gar/pool/NEW cnc listing.

why that’s just crazy!

voguecoverjun00_lrossbt.jpg

Does advertising work? We learn from the current AdAge CMO Strategy column that

…the September, 2007 issue of Vogue weighs over 4 and a half pounds and 87-percent of that heft is advertising. Advertising! So the answer to whether or not consumers will pay to look at ads is – yes. Your specific ad, who knows. But a doorstop sized collection of coated paper pages titled Vogue, then yes.

chris blaise injured – outlook uncertain

chris blaise national powersports auction

Word just in that three-time Dakar rider and two-time podium winner Chris Blaise was seriously injured pre-running the Vegas to Reno Best In The Desert course the weekend of August 4th. With him at the time was Honda rider Johnny Campbell, who according to reports was crucial in making sure the KTM/Red Bull rider received emergency first aid appropriate for his injuries, including helicopter transport to area facilities.

Those injuries include a fractured vertebra, which, according to reports, was fused. Originally treated in Reno, Chris has since been transported to a rehabilitation facility near his Southern California home.

I just met Chris (above) at this year’s Indy Dealer Expo and was immediately won over by his genuine humility, after having witnessed his delicate and determined riding prowess over the past several years during the Dakar coverage on OLN (now VS.) cable coverage.

We’ll post more as both Chris and events stabilize, including details on the fund that’s been established in his name at Bank of America and how contributions are being handled. We’re firm in our belief that given Chris’ unwavering training ethic, determination and natural abilities, we’ll all enjoy seeing this able young star riding again.