This presentation highlights overview of Ducati company, its product segments and other functions to explain its strategy behind achieving growth and success.

1. Background
Founded on July 4, 1926 by Antonio Cavalieri Ducati and his three sons

2. Background
• Started with operations of radios and
electrical components.
• In 1950, First motorcycle “il Cucciolo”
launched.
• In 1972, a Ducati 750 Super Sport
prototype won Imola 200cc race.
• Acquired by Cagiva in 1980.
• In 1996, Majority stake was acquired by
Texas Pacific Group(TPG) and TPG
appointed Federico Minoli as CEO.

3. Product Segments
Hyper-Sport
•Price range($13,295-$21,895)
•Derived from the motorcycles competing on the
racetracks
•43% of total the total revenue .
•Key competitors – Honda, Yamaha and Suzuki.
Super-Sport
•Price range($7,895-$11,495)
•Had been the most popular Ducati on road.
•Famous for its smooth power delivery.
•Key competitors- Japanese, Triumph and BMW.
Naked
•Price range($6,195-$12,995)
•A bike for the streets rather than fantasy racetrack.
Recently became Ducati’s most popular bike.
•Key competitors – BMW, Triumph and Honda
Sport-Touring
•Price range($12,295-$13,795)
•Offered comfortable riding positions than the other
Ducatis.
•Key competitors – BMW, Triumph and Japanese.

4. Functions
Production
As of 2001, outsourcing
had grown to
approximately 87%.
Planned to bring it to
90%.
Collaborated with other
firms for joint activities.
Motorcycles produced
per worker increased
from 76 in 1997 to 87 in
2000.
Distribution
Control of distribution
and marketing in
strategic markets.
Re-organization of the
network of dealers.
Improve the average
quality of the dealers.
Creation of chain of
Ducati Stores to offer
a unique retail
environment.
Product
development and
R&D
Heavy investment on
new design
technologies, product
development and
human capital.
R&D investments from
3.2 million Euro in
1997 to 12.9 million
Euro in 2000.
Development of new
900SSie in 15 months
compared to over 36
months for previous
model development.

5. Turnaround under Minoli
Financial Data(Euro millions)
1997 2001
Total Revenues 195.63 422.1
Gross Profit 74.57 165.9
EBITDA 33.4 69.9
Net Income 2.7 13.4
Market Share 5.1 7.0
Motorcycle Sales(In units sold)
Segment 1996 2000
Hyper-Sport 4,780 12,289
Super-Sport 2,900 4,058
Touring 0 3,081
Naked 4,959 19,659
Total 12,639 39,087

6. The World of Ducati
Racing Advertising Museum
Ducati
Owners Clubs
Events