“The most important thing to consider about the
acquisition of the Indian Motorcycle Company is that we
gain a brand. A brand with a living history. A brand that
means something to people. A brand that stirs passion
in hearts of the motorcyclist ...This is what we are
selling. The brand image, the feeling”.
                               - Scott Wine, CEO Polaris Industries
GEORGE HENDEE & OSCAR HEDSTROM




1901     1917             1930      1939   1945
GEORGE HENDEE & OSCAR HEDSTROM




1901     1917             1930      1939   1945
WWI:
       60% TO MILITARY




1901         1917        1930   1939   1945
WWI:
       60% TO MILITARY




                         DUPONT



1901         1917        1930     1939   1945
WWI:                 WWII:
       60% TO MILITARY      100% TO MILITARY




                         DUPONT



1901         1917        1930            1939   1945
WWI:                 WWII:
       60% TO MILITARY      100% TO MILITARY




                                                 PURCHASED BY
                         DUPONT                 RALPH B. ROGERS




1901         1917        1930            1939        1945
1953   1970   1985   1998   2005   2011
1954
1953   1970   1985   1998   2005   2011
1954
1953   1970   1985   1998   2005   2011
1954
1953   1970   1985   1998   2005   2011
1954
1953   1970   1985   1998   2005   2011
1954
1953   1970   1985   1998   2005   2011
1954
DUPONT           PURCHASED BY
                              RALPH B. ROGERS




1901   1917    1930    1939       1945          1953   1970   1985   1998   2005   2011
                                                1954
DUPONT           PURCHASED BY
                              RALPH B. ROGERS




1901   1917    1930    1939       1945          1953   1970   1985   1998   2005   2011
                                                1954
HOW
CAN   POLARIS
      S U C C E E D
         WHERE SO MANY HAVE

         FAILED?
RESOURCES
$4 BILLION
$4 BILLION
U.S. HEAVYWEIGHTS
$4 BILLION
U.S. HEAVYWEIGHTS
$400 - $600 MILLION
  (PREMIUM MARKET)
$4 BILLION
                           U.S. HEAVYWEIGHTS
                          $400 - $600 MILLION
                                               (PREMIUM MARKET)

*SOURCE: IBIS, “Motorcycle, Bike & Parts Manufacturing in the US,” March 2012. Datamonitor,”Motorcycles in the United States,” September 2010.  U.S. Census Bureau 2010. Income based on number of
households 45 to 64 earning over $100,000 per year.
MATURE MARKET
MATURE MARKET
             Harley Rider - Average age increased ~45 to 49 over the last five years.




*SOURCE: NY Times, “Harley, You’re Not Getting Any Younger,” March 2009, JD Power and Associates 2010 U.S. Motorcycle Competitive Information Study.
MARKET SHARE




*SOURCE: Powersports, 2011
MARKET SHARE




*SOURCE: Powersports, 2011
MARKET SHARE
                               HD - 33%




*SOURCE: Powersports, 2011
MARKET SHARE
                               HD - 33%




                                VICTORY - 2%
*SOURCE: Powersports, 2011
MARKET SEGMENTATION




*SOURCE: Polaris Internal Memo 2011
MARKET SEGMENTATION
  DIE HARDS - 39%




*SOURCE: Polaris Internal Memo 2011
MARKET SEGMENTATION
  DIE HARDS - 39%
  PERFORMANCE ENTHUSIASTS - 21%




*SOURCE: Polaris Internal Memo 2011
MARKET SEGMENTATION
  DIE HARDS - 39%
  PERFORMANCE ENTHUSIASTS - 21%

  EVERYDAY RIDERS - 15%




*SOURCE: Polaris Internal Memo 2011
MARKET SEGMENTATION
  DIE HARDS - 39%
  PERFORMANCE ENTHUSIASTS - 21%

  EVERYDAY RIDERS - 15%


  SHOW OFFS - 14%



*SOURCE: Polaris Internal Memo 2011
MARKET SEGMENTATION
  DIE HARDS - 39%
  PERFORMANCE ENTHUSIASTS - 21%

  EVERYDAY RIDERS - 15%


  SHOW OFFS - 14%

  WEEKEND RIDERS - 11%
*SOURCE: Polaris Internal Memo 2011
MARKET SEGMENTATION
  DIE HARDS - 39%
  PERFORMANCE ENTHUSIASTS - 21%

  EVERYDAY RIDERS - 15%


  SHOW OFFS - 14%

  WEEKEND RIDERS - 11%
*SOURCE: Polaris Internal Memo 2011
“NOT a fan of the soccer mom on a Harley.”
                                                                – Shelly Maynard, California


                   “It’s probably just a ploy to bring the yuppie styles
                   back to buying since sales are down.”
                                                       – President, Springfield, Ohio Chapter




*SOURCE: HDForums, “United by Independents” campaign
STRATEGIC
 OPTIONS
$10K    SPORTSTER COMPETITOR
SCOUT

        PREMIUM DOMESTIC



        PREMIUM INTERNATIONAL
SPORTSTER COMPETITOR


$10K    PREMIUM DOMESTIC
SCOUT
        PREMIUM INTERNATIONAL
SPORTSTER COMPETITOR


$10K    PREMIUM DOMESTIC
SCOUT
        PREMIUM INTERNATIONAL
SPORTSTER COMPETITOR


$10K    PREMIUM DOMESTIC
         HIT & MISS STYLE
SCOUT
        PREMIUM INTERNATIONAL
SPORTSTER COMPETITOR


$10K    PREMIUM DOMESTIC
         HIT & MISS STYLE
SCOUT    CAN’T COMPETE ON COST
        PREMIUM INTERNATIONAL
SPORTSTER COMPETITOR


$10K    PREMIUM DOMESTIC
         HIT & MISS STYLE
SCOUT    CAN’T COMPETE ON COST
         UNKNOWN TO AUDIENCE
        PREMIUM INTERNATIONAL
$10K    SPORTSTER COMPETITOR
SCOUT

        PREMIUM DOMESTIC



        PREMIUM INTERNATIONAL
$10K    SPORTSTER COMPETITOR
        PREMIUM INTERNATIONAL
SCOUT

        PREMIUM DOMESTIC
$10K    SPORTSTER COMPETITOR
        PREMIUM INTERNATIONAL
SCOUT
         SPREAD TOO THIN
        PREMIUM DOMESTIC
$10K    SPORTSTER COMPETITOR
        PREMIUM INTERNATIONAL
SCOUT
         SPREAD TOO THIN
        PREMIUM DOMESTIC
         McDONALDS vs
         AMERICAN BURGER
$10K    SPORTSTER COMPETITOR
SCOUT

        PREMIUM DOMESTIC



        PREMIUM INTERNATIONAL
$10K    SPORTSTER COMPETITOR
SCOUT
            PREMIUM DOMESTIC




        PREMIUM INTERNATIONAL
$10K    SPORTSTER COMPETITOR
SCOUT
            PREMIUM DOMESTIC

             NICHE OPPORTUNITY



        PREMIUM INTERNATIONAL
$10K    SPORTSTER COMPETITOR
SCOUT
            PREMIUM DOMESTIC

             NICHE OPPORTUNITY
             BRAND BUILDING


        PREMIUM INTERNATIONAL
$10K    SPORTSTER COMPETITOR
SCOUT
            PREMIUM DOMESTIC

             NICHE OPPORTUNITY
             BRAND BUILDING
             GROSS PROFIT

        PREMIUM INTERNATIONAL
RECOMMENDATIONS
RECOMMENDATIONS
1) PREMIUM DOMESTIC
RECOMMENDATIONS
1) PREMIUM DOMESTIC
2) DEALER DEVELOPMENT
PREMIUM DOMESTIC
PREMIUM
            PREMIUM DOMESTIC
HERITAGE
MARKETING
PREMIUM
             PREMIUM DOMESTIC
HERITAGE
MARKETING
            $18K - $38K
PREMIUM
             PREMIUM DOMESTIC
HERITAGE
MARKETING
            $18K - $38K
                150    DOMESTIC
                       DEALERS
DEALER DEVELOPMENT
DEALER DEVELOPMENT
CORPORATE CONSULTING
DEALER DEVELOPMENT
CORPORATE CONSULTING
FLAGSHIP 20
DEALER DEVELOPMENT
CORPORATE CONSULTING
FLAGSHIP 20
”DEALER VISION” DESIGN
Indian Motorcycle Strategy Presentation

Indian Motorcycle Strategy Presentation

  • 2.
    “The most importantthing to consider about the acquisition of the Indian Motorcycle Company is that we gain a brand. A brand with a living history. A brand that means something to people. A brand that stirs passion in hearts of the motorcyclist ...This is what we are selling. The brand image, the feeling”. - Scott Wine, CEO Polaris Industries
  • 5.
    GEORGE HENDEE &OSCAR HEDSTROM 1901 1917 1930 1939 1945
  • 6.
    GEORGE HENDEE &OSCAR HEDSTROM 1901 1917 1930 1939 1945
  • 7.
    WWI: 60% TO MILITARY 1901 1917 1930 1939 1945
  • 8.
    WWI: 60% TO MILITARY DUPONT 1901 1917 1930 1939 1945
  • 9.
    WWI: WWII: 60% TO MILITARY 100% TO MILITARY DUPONT 1901 1917 1930 1939 1945
  • 10.
    WWI: WWII: 60% TO MILITARY 100% TO MILITARY PURCHASED BY DUPONT RALPH B. ROGERS 1901 1917 1930 1939 1945
  • 11.
    1953 1970 1985 1998 2005 2011 1954
  • 12.
    1953 1970 1985 1998 2005 2011 1954
  • 13.
    1953 1970 1985 1998 2005 2011 1954
  • 14.
    1953 1970 1985 1998 2005 2011 1954
  • 15.
    1953 1970 1985 1998 2005 2011 1954
  • 16.
    1953 1970 1985 1998 2005 2011 1954
  • 19.
    DUPONT PURCHASED BY RALPH B. ROGERS 1901 1917 1930 1939 1945 1953 1970 1985 1998 2005 2011 1954
  • 20.
    DUPONT PURCHASED BY RALPH B. ROGERS 1901 1917 1930 1939 1945 1953 1970 1985 1998 2005 2011 1954
  • 21.
    HOW CAN POLARIS S U C C E E D WHERE SO MANY HAVE FAILED?
  • 22.
  • 23.
  • 24.
  • 25.
    $4 BILLION U.S. HEAVYWEIGHTS $400- $600 MILLION (PREMIUM MARKET)
  • 26.
    $4 BILLION U.S. HEAVYWEIGHTS $400 - $600 MILLION (PREMIUM MARKET) *SOURCE: IBIS, “Motorcycle, Bike & Parts Manufacturing in the US,” March 2012. Datamonitor,”Motorcycles in the United States,” September 2010.  U.S. Census Bureau 2010. Income based on number of households 45 to 64 earning over $100,000 per year.
  • 27.
  • 28.
    MATURE MARKET Harley Rider - Average age increased ~45 to 49 over the last five years. *SOURCE: NY Times, “Harley, You’re Not Getting Any Younger,” March 2009, JD Power and Associates 2010 U.S. Motorcycle Competitive Information Study.
  • 29.
  • 30.
  • 31.
    MARKET SHARE HD - 33% *SOURCE: Powersports, 2011
  • 32.
    MARKET SHARE HD - 33% VICTORY - 2% *SOURCE: Powersports, 2011
  • 33.
  • 34.
    MARKET SEGMENTATION DIE HARDS - 39% *SOURCE: Polaris Internal Memo 2011
  • 35.
    MARKET SEGMENTATION DIE HARDS - 39% PERFORMANCE ENTHUSIASTS - 21% *SOURCE: Polaris Internal Memo 2011
  • 36.
    MARKET SEGMENTATION DIE HARDS - 39% PERFORMANCE ENTHUSIASTS - 21% EVERYDAY RIDERS - 15% *SOURCE: Polaris Internal Memo 2011
  • 37.
    MARKET SEGMENTATION DIE HARDS - 39% PERFORMANCE ENTHUSIASTS - 21% EVERYDAY RIDERS - 15% SHOW OFFS - 14% *SOURCE: Polaris Internal Memo 2011
  • 38.
    MARKET SEGMENTATION DIE HARDS - 39% PERFORMANCE ENTHUSIASTS - 21% EVERYDAY RIDERS - 15% SHOW OFFS - 14% WEEKEND RIDERS - 11% *SOURCE: Polaris Internal Memo 2011
  • 39.
    MARKET SEGMENTATION DIE HARDS - 39% PERFORMANCE ENTHUSIASTS - 21% EVERYDAY RIDERS - 15% SHOW OFFS - 14% WEEKEND RIDERS - 11% *SOURCE: Polaris Internal Memo 2011
  • 41.
    “NOT a fanof the soccer mom on a Harley.” – Shelly Maynard, California “It’s probably just a ploy to bring the yuppie styles back to buying since sales are down.” – President, Springfield, Ohio Chapter *SOURCE: HDForums, “United by Independents” campaign
  • 42.
  • 43.
    $10K SPORTSTER COMPETITOR SCOUT PREMIUM DOMESTIC PREMIUM INTERNATIONAL
  • 44.
    SPORTSTER COMPETITOR $10K PREMIUM DOMESTIC SCOUT PREMIUM INTERNATIONAL
  • 45.
    SPORTSTER COMPETITOR $10K PREMIUM DOMESTIC SCOUT PREMIUM INTERNATIONAL
  • 46.
    SPORTSTER COMPETITOR $10K PREMIUM DOMESTIC HIT & MISS STYLE SCOUT PREMIUM INTERNATIONAL
  • 47.
    SPORTSTER COMPETITOR $10K PREMIUM DOMESTIC HIT & MISS STYLE SCOUT CAN’T COMPETE ON COST PREMIUM INTERNATIONAL
  • 48.
    SPORTSTER COMPETITOR $10K PREMIUM DOMESTIC HIT & MISS STYLE SCOUT CAN’T COMPETE ON COST UNKNOWN TO AUDIENCE PREMIUM INTERNATIONAL
  • 49.
    $10K SPORTSTER COMPETITOR SCOUT PREMIUM DOMESTIC PREMIUM INTERNATIONAL
  • 50.
    $10K SPORTSTER COMPETITOR PREMIUM INTERNATIONAL SCOUT PREMIUM DOMESTIC
  • 51.
    $10K SPORTSTER COMPETITOR PREMIUM INTERNATIONAL SCOUT SPREAD TOO THIN PREMIUM DOMESTIC
  • 52.
    $10K SPORTSTER COMPETITOR PREMIUM INTERNATIONAL SCOUT SPREAD TOO THIN PREMIUM DOMESTIC McDONALDS vs AMERICAN BURGER
  • 53.
    $10K SPORTSTER COMPETITOR SCOUT PREMIUM DOMESTIC PREMIUM INTERNATIONAL
  • 54.
    $10K SPORTSTER COMPETITOR SCOUT PREMIUM DOMESTIC PREMIUM INTERNATIONAL
  • 55.
    $10K SPORTSTER COMPETITOR SCOUT PREMIUM DOMESTIC NICHE OPPORTUNITY PREMIUM INTERNATIONAL
  • 56.
    $10K SPORTSTER COMPETITOR SCOUT PREMIUM DOMESTIC NICHE OPPORTUNITY BRAND BUILDING PREMIUM INTERNATIONAL
  • 57.
    $10K SPORTSTER COMPETITOR SCOUT PREMIUM DOMESTIC NICHE OPPORTUNITY BRAND BUILDING GROSS PROFIT PREMIUM INTERNATIONAL
  • 58.
  • 59.
  • 60.
  • 61.
  • 62.
    PREMIUM PREMIUM DOMESTIC HERITAGE MARKETING
  • 63.
    PREMIUM PREMIUM DOMESTIC HERITAGE MARKETING $18K - $38K
  • 64.
    PREMIUM PREMIUM DOMESTIC HERITAGE MARKETING $18K - $38K 150 DOMESTIC DEALERS
  • 65.
  • 66.
  • 67.
  • 68.