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| WE SEE NEW OPPORTUNITY TO INVEST IN GROWTH. To accelerate growth, we’re investing resources in new areas that complement our core product markets. By offering expanded financial services to both dealers and consumers, we’ll capture a greater share of the revenue and profit surrounding the sale of our machines. Through creative partnerships with other manufacturers, we’ll introduce new categories of products that appeal to our outdoor-oriented customers. By helping our dealers market, sell and serve customers more effectively, we’ll expand our share of local markets. And we have our eye on international growth, too. |
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| NEW PROFIT OPPORTUNITIES ON EVERY SALE Starting in 1999, we’ll capture a greater share of the financial transactions associated with our products and give dealers more profit opportunities too. We’re expanding Polaris Acceptance, our finance company joint venture, to include a more flexible retail credit plan, a consumer leasing program, extended service contracts, and improved trade-in financing. |
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STRENGTHENING OUR DEALER PARTNERSHIPS Our success is ultimately linked to the success of over 2,000 North American dealers. To help them build their business and boost the brand, we’re investing in:
Grassroots advertising and marketing. Historically, dealers have placed local ads and handled their own promotions. In 1999 we’re investing heavily to provide them with marketing plans, ad templates, and promotion and event ideas designed to improve retail pull-through. In key advertising markets we’re also creating multi-dealer advertising groups to gain purchasing power.
Faster claim handling. To improve dealer and consumer satisfaction, we significantly improved warranty claim turnaround time in 1998. Handling used to take up to five months; today we turn around claims within 24 hours — 100 percent of the time.
Getting closer to the customer. To be more responsive to dealers and stay closer to the marketplace, we reorganized our sales force so we can make more face-to-face sales calls. We added sales coordinators who now handle day-to-day issues which gives our sales force time to strengthen dealer relationships and help them with broader business issues. |
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PREPARING FOR VICTORY ACROSS THE POND Because the European heavyweight motorcycle market is larger than the U.S. market and is growing at 10 percent annually, we plan to distribute Victory in Europe within a few years. We introduced Victory to European enthusiasts in 1998 at Intermot, the continent’s annual motorcycle show. We used the opportunity to talk with potential customers and learn more about their preferences. We discovered our American products have a tremendous amount of appeal and that double-disc brakes are standard equipment on high-speed European roadways. |
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Worldwide Heavyweight Motorcycle Market *Projected
(in thousands of units)
The worldwide motorcycle market (combined cruiser, touring, sportbike, standard segments) has grown an average 6 percent annually. Europe is a fast growing region, with a 3 year average annual growth of 10 percent.
Sources: Motorcycle Industry Council, Giral S.A., Australian Bureau of Statistics, and Japan Automobile Manufacturers Association
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