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Posts Tagged ‘2014 Indian Chief’

photos_large_5Don’t get your underwear wrapped around the axle with that title.

“Off the reservation” is a common phrase, which many people use without considering the context of its original meaning. Namely, that Native American peoples were restricted to reservations created by the U.S. government, and their freedom was severely limited by the terms of the treaties they were often forced to sign.

I’m using it in its literal sense (to deviate from what is expected) and as you might anticipate it’s a reference to Indian motorcycles rampant sales and intractable competition versus the Harley-Davidson Motor Company.

Harley-Davidson posted flat sales for Q2 2014, yet Indian/Polaris posted higher revenues for the second quarter 2014 at $1.01 billion, reflecting an increase of 20% over last year’s second quarter sales of $844.8 million.  Polaris stated that sales at its motorcycles division soared 107% year-over-year to $103.1M in large part due to strong demand for the new 2014 Indian motorcycles.  Clearly they have deviated from what was expected.  One could debate that given Polaris motorcycle revenue is much smaller than Harley’s, it’s easier for them to hit double digit growth numbers, but that would be down playing the strong demand for the Indian products.

Additionally, Harley-Davidson stated its share of the market for new heavyweight motorcycles with engines of 601 cubic centimeters or greater slipped to about 50% in Q2 2014 from 53% a year earlier.  Another indicator that competition is weighing on the company.

Financial calls with terms like ‘diluted earnings’ and ‘operating efficiencies’, don’t mean much to riders and it’s not like Harley-Davidson is hurting.  But, it’s good to see Indian doing well with North American retail sales up 15% year-over-year in the second quarter.

Congrats!

Full Disclosure:  I’ve got a riding buddy who traded his H-D Street Glide in on a new 2014 Indian back in January and loves it.  There is no dealer in Oregon yet and he went to the extra effort of buying it from a Seattle dealer.

Photo courtesy of Indian/Polaris.

All Rights Reserved © Northwest Harley Blog

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Chief-2014Traditional product launches often act as a big corporate “Lighting Bolt.”

Meaning the company plans a big event, creates loads of new sales tools and collateral and places those important ad campaigns in the trade rags.  All the while keeping everything in hush, hush secrecy ‘til they near the big day. Then comes the big ‘Ta Da’. The press release hits the wire, they hold some big chest-thumping events and then start selling, having trained the sales force in the weeks prior.

Spirit of Munro -- Named in honor of Burt Munro’s “Munro Special,”

Spirit of Munro — Named in honor of Burt Munro’s “Munro Special,”

The Indian Motorcycle (Polaris Industries) launch plan is different.

Their launch process is a more gradual, momentum-building approach that is often called “Rolling Thunder.”  Not to be confused with the Rolling Thunder® Inc., and POW/MIA topic, the rolling product launch approach dribbles out information, builds credibility over time, creating anticipation, and leverages social media to feed the various channels and momentum.

Case in point is the dribbling out of key information from Indian Motorcycle. First up at Daytona Bike Week was the reveal — a release of information about the new 111 cubic inch engine, called Thunder Stroke 111™ made in Osceola, WI and assembled at the Polaris plant in Spirit Lake, Iowa. Next up was the back story of the custom-built streamliner named “Spirit of Munro” and then last weeks announcement of their intent to unveil the new 2014 Indian Chief motorcycle at the 73rd Sturgis Motorcycle Rally followed with a sneak-peek video and the subtle announcement (HERE at 0:43) of the $18,999 price. The previous Indian Chief sold in the $26-$37K range and the previous owners may stare at that in slacked-jaw envy!

Thunder Stroke 111™

Thunder Stroke 111™

Clearly the supply-chain scale and negotiation mojo that Polaris brings to the Indian table brought better component pricing and improved labor rates.

The Indian brand dates back to the early 1900s.  Polaris acquired it in 2011 and 27 months later will release a new classic motorcycle line.  Polaris continues forward with their Victory 15-year old brand of motorcycles.  They each draw on different customers.

I’m not sure how many more “dribbles” they have planned, but the press buzz and excitement of the launch in social media circles is clearly throttling up.

Photo’s courtesy of Indian Motorcycles.

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