A Better Corporate Strategy!

[trajisto]

The following is an e-mail I read and responded to.

Initial e-mail:

A better corporate strategy for KTM. instead of a big time big rig SX and MX team, why not just have the industry's top amatuer contingency program? lot's of support through local dealers, and at races? i mean the kind of contingency program that makes non-KTM racers jealous. it might not jump-start sales like an SX title, but wouldn't it create the most rabidly loyal customer base in the world? just a thought

jeremiah >>


Response:

Jeremiah,

That is quite possibly the most intelligent thing ever written in this forum. I have beat my head against the wall trying to figure out why Husqvarna has the best contingency program in the business(they do, just go to husqvarnausa.com and see for yourself) while KTM supports supermotard! Off-roaders have brought KTM to where they are right now and will continue to push them up the sales ladder. It's time for them to give a little back to the people that pay KTM to publicize and promote their bikes through amateur off-road racing. It's really not asking a lot, just what a struggling company like Husqvarna is offering it's riders. I believe if Husqvarna keeps their support up they won't be struggling for very much longer. The world enduro champ rides a Husky. They are not that far behind and closing the R & D gap quickly. Please listen KTM. I love your bikes but hate your support on the corporate level. My KTM dealers are great and they are as frustrated as I am about this.

I know here in the Western states our off-road contact is Scot Harden.
His e-mail address is sharden@ktmdcs.com

I suggest firing off some intelligent e-mails to him voicing a concern I know many of you have out there concerning the contingency(or lack thereof!) program. Even if you don't race or care about contingency you should still contribute. More Ktm loyalty means more KTM's, which means more dealers, which means more support, which means more bikes available(are you listening four-stroke guys), which means lower costs, etc., etc., etc.!

Thanks for listening,
Travis Epperson

 

[fishhead]

Maybe history will repeat itself. In the mid 80's Honda and then Yamaha and Suzuki offered more contingecy money for winning an amature road race than the ailing AMA could dish out in the pro classes. A local club win on a suzuki gsxr could net 1500 clams in 1985 bucks in the 750 prod class. Honda had a similar plan in the 600 class. The result was that tons of starving ama pros and retired racers dumped their 250gp and flat track bikes and wound up running club races with prod bikes and a lot of prod bikes were marshalled to the front of swollen superbike classes by sheer force of will. Doug Polen was one of the most successful netting 110k in winnings in the 86 season. It was great for the manufactures and great for the clubs as grids were packed. Clubs had to pick and chose which dates would be whose "cup" race. A man with a van and a plan could chase his dream. It became a very sucessful situation for the sport and the industry.

If a manufacturer was alert to this bit of history and understood the high return on advertising dollar that significant contingency money means then I would expect this to happen again although I think the manufactures don't realize that it takes a purse near the 2k for a win to induce brand switching. It then relegates competing brands to the role of spoiler at best.

Its one thing when Shane Watts et. al. wins a gncc on a ktm ahead of a green bike and a blue bike but quite another when the first 36 places at a local race are ktms. Which one do you think has the most effect on purchasers? Where is the greatest return on the advertising dollar?

As a postscript the programs were not discontinued because they did not sell bikes rather they were too successful and the "killer bike" scare put on by 60 mins and other tabloids caused the manfacturers to rethink their marketing strategy.

 

[JTT]

Originally posted by fishhead
In the mid 80's Honda and then Yamaha and Suzuki offered more contingecy money for winning an amature road race than the ailing AMA could dish out in the pro classes. A local club win on a suzuki gsxr could net 1500 clams in 1985 bucks in the 750 prod class. Honda had a similar plan in the 600 class.

Ahh, I remember those days well :thumb: Sure helped with the tire budget ;) ...ps. Kawasaki also offered similar contingency.

 

[Anssi]

Originally posted by trajisto
The world enduro champ rides a Husky.

I'm sorry I haven't got much to add to the topic, but that sentence would only be correct if you substituted "A" for "The". The world enduro champ is (and has been for a few years now) Juha Salminen, and he rides a KTM.

 

[fishhead]

Jtt

I our area tire wars were as big as bike wars with avon, conti, metz, mich and dunlop vying for share. Tires weren't free but a rider with a resume could get serious help.

 

[Rich Rohrich]

The Springfield TT was a sea of red bikes this year thanks in no small part to Honda's contingency program. It appears some companies are paying attention. ;)

 

[fishhead]

Didn't have to look far for a current success story did you, Rich? Maybe Honda will follow suit with a similar program for local offroad series but if local sales are any indication they don't have to.

Iv'e ridden a crf with a flywheel weight and suspension set up for offroad and its pretty darn good. As mass centralization gets more refined it will be better. Red is kinda close to orange. :)

 

[JTT]

Originally posted by fishhead
Jtt

I our area tire wars were as big as bike wars with avon, conti, metz, mich and dunlop vying for share. Tires weren't free but a rider with a resume could get serious help.

Same deal out here. I tried them all with the exception of Avons, but was always a Dunlop guy <shrug> The Contis cost me a win and a front end at Loudon one year...never ran them again :|