Triumph: Marketing British Steel (A)

In early 2007, Tue Mantoni, commercial director for Triumph, opened up the Financial Times, and read: "Triumph, the manufacturer of iconic British motorcycles, has raised sales thanks partly to "Born-again bikers" - older customers trying to recapture the carefree spirit of their youth. Triumph's unit sales had increased by 18.3% growing from 31,600 units in 2005 to 37,400 units in 2006. Over the past five years, the company's sales had grown at a compound annual growth rate (CAGR) of 11.2%. Consumers over 35 years old, had doubled to represent a quarter of Triumph's consumer group. At the same time, Triumph was experiencing strong growth in Asia (quadrupling of unit volume in 2006) and North America (unit sales increases of nearly 50% in 2006). As Mantoni put down the newspaper, his mind turned to some of the company's current marketing challenges. Having conducted a series of consumer surveys, the company saw that one of its major issues was the low conversion from consideration to purchase in comparison to its competition. Mantoni was also interested in evaluating the dealer strategy and considering ways where dedicated Triumph dealers could become more profitable. Last, many industry experts had commented on Triumph's brand image being tied too closely to its past.