By creating strong consumer demand and facilitating the movement of retail inventory, we increase dealer loyalty. And surveys show that our nearly 2,000 loyal dealers contribute significantly to Polaris owners’ overall satisfaction with our products and services. Key processes and programs that contribute to dealer loyalty include:
Proactive inventory management. We monitor retail sales closely and adjust our production to demand. During 1997 we reduced production of both snowmobiles and PWC from 1996 levels as part of a continuing effort to reduce field inventories and more closely match supply with consumer demand.
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Powerful marketing and merchandising. To pull consumers in and reinforce brand loyalty, we maintain a high profile through marketing and merchandising. Our consumer sled Sneak Previews have become a much-anticipated spring ritual. We build excitement through advertising, attendance at rallies and races, and a public relations push in trade publications. Our in-store support includes popular parts, garments and accessories, which expand the dealer merchandise mix and serve as buyer incentives. We offer Snow Check, a sled order-incentive program that ensures timely delivery for buyers and helps dealers pull 25 to 30 percent of sales into the preseason. And our Polaris Acceptance joint venture financing programs accommodate the financing needs of dealers (and, in the future, consumers) while providing us with an additional profit center. |
 (North American product line sales and International sales include the sales of related parts, garments and accessories) |
Loyalty-building programs. Our Preferred Registered Owners (PRO) Family, with more than 600,000 members, gives us the opportunity to build strong bonds with Polaris owners. Members are eligible for exclusive merchandise, competitive insurance rates for their Polaris vehicles, and special group rides and package tours. In return, these informed, responsible riders serve as informal advocates for both the Polaris brand and the sport. They also provide us with valuable feedback on their riding habits and product needs through consumer councils. Similar dealer councils also keep us attuned to the market and our retailers’ needs.
| Increased international presence. Sales to customers outside of North America increased 20 percent to $59 million in 1997, representing 6 percent of total company sales. We’ve built a strong distribution base in key international markets where economic growth is strong. We have solid and growing market share in Australia for PWC and ATVs, and in Scandinavian countries and Japan for our sleds. Our international distributors increased from 13 to 54 in the past four years, and we plan to add new distribution in at least 12 growth markets in the next two years. By the year 2000, we’ll expand Victory sales overseas, too, to tap the vast worldwide market for large-displacement motorcycles. | Almost 75 percent of our nearly 2,000 North American dealers carry only Polaris within our product categories. |