Showing posts with label Strategy. Show all posts
Showing posts with label Strategy. Show all posts

Monday, August 13, 2018

OK, this is really starting to look culty

Trump recently doubled down on his earlier Tweet-attack on Harley-Davidson. This time, he basically called for a boycott of Harley-Davidson.

To be clear, no Harley-Davidson competitors are choosing to manufacture bikes in the U.S. because of Trump's trade war. In fact Indian, which most people seem to think will be the beneficiary of any Harley boycott, will also be shifting some manufacturing to Poland. But Trump's not lacing into Polaris. I wonder why?

Forget the fundamentally Bizarro-world situation of a sitting President calling for the boycott of a venerable American company – this looks more and more like the behavior of a cult leader, not a mere politician.

In every cult, there's a moment where the leader forces his followers to give up something they dearly love. It's often money;but it could be foods followers love, or sex – or followers might even have to give their spouse to the cult leader.

What the followers have to give up doesn't matter, as long as it's something they love. You wouldn't think that such a request from the Dear Leader would strengthen bonds with his followers, but it does, because it puts the followers in a sunk-cost dilemma.

Once Trump's followers choose him over their beloved Harleys, they'll be his for life.

Could it backfire? Sure. If someone pushed back effectively, they could make the GOP pay by costing it a seat or two in Wisconsin. I can't really see Matt Levatich taking that assignment on – he's got enough on his plate right now. But a smart Wisconsin Democrat could use Harley-Davidson as leverage to weaken GOP support in a critical swing state.


Monday, July 30, 2018

Could Donald Trump's jab at Harley-Davidson have been more perfectly timed?

A few weeks ago – perhaps in response to a (really!) fake news story that Matt Levatich had called Donald Trump a moron – Donald Trump really did lash out at Harley-Davidson.

Part of Harley-Davidson's stunning new strategy is an entire range of EV motorcycles and bicycles.

Harley-Davidson's old core customers have, until now, also been overwhelmingly supportive of Donald Trump. It seemed strange that Trump would attack the company, but I almost thought The Donald was using a classic cult-leader's technique, of forcing his followers to give up something they love.

Well, this morning Harley-Davidson announced a sweeping set of changes that, in short, mean that it is once and for all really becoming a modern international motorcycle company. Harley-Davidson's, and Donald Trump's base will hate the motorcycles Harley-Davidson will begin releasing in 2020. But Matt Levatich has bet his company (and it goes without saying his reputation) that he can replace those old customers with new ones who would never consider anything Harley makes now.

The timing of the Donald Trump/Harley-Davidson breakup couldn't be better. Harley-Davidson's like half a couple that, after a divorce, goes on a diet, starts working out, and buys a new wardrobe.

Will it work? Maybe, maybe not, but way back in 2014 after I rode the first Livewire, I realized it was Harley's only shot. The company's finally taken it. It might be too late, but it took guts to do it at all.

Thursday, July 19, 2018

Europe and Japan announce a trade deal that will eliminate motorcycle tariffs

It was almost lost in the fuss over Harley-Davidson shifting production overseas, but Trump's obsessive 'trade wars' will produce a benefit -- albeit indirect -- for European motorcyclists.
Japan and the European Union prove that Donald Trump was right: Trade wars are easy to win. All you have to do is stay out of them

The U.S. seems bent on reneging on long established multilateral agreements, but in response other nations are quietly bypassing the U.S. to fast-track their own bilateral deals. The biggest of these has seen a sweeping free-trade agreement between Japan and the European Union, that will eliminate 99% of the tariffs the EU previously imposed on imports from Japan.

Any U.S. motorcyclists who've traveled much in Europe, and were paying attention, already know that Japanese motorcycles are much more expensive in Europe than the same models are here. 

Part of that is, I suppose, because EU regulations now force all motorcycle manufacturers to include ABS as a standard feature on all models over 125cc. But historically that price difference has largely been the result of tariffs imposed on Japanese imports. Obviously, those tariffs protected European manufacturers like KTM, BMW, Ducati, the Piaggio Group, and Triumph.

'JEFTA' (Japan-Europe Free Trade Agreement) will be implemented over the next five years. One of it's impacts will be the elimination of a 6% tariff on Japanese motorcycles. While I suppose the impact on retail prices will be masked by inflation, it will have the effect of lowering Japanese bike costs in Europe, and will obviously put price pressure on the European brands. No matter what bike you want to buy, in Europe, it's gonna' get cheaper soon. Unless you want to buy a Harley.

In exchange, I presume the Euros will get better access to the Japanese market. It is hard to believe Ducati or Piaggio will sell as many motorcycles and scooters in Japan as Honda sells in Italy, but the really big implication is that European-certified vehicles (cars as well as bikes) will now be eligible to enter the Japanese market without going through Japan's very costly and time-consuming homologation procedures.

Sadly, by the time the deal is really in effect, Britain will no longer be part of the EU.

Friday, December 22, 2017

Did Cycle World accidentally label this 'Review'? Because it sure reads like branded content

Every now and then, when my blood pressure gets too low, I go look at Cycle World's web site.

Recently, I checked it and found an ad a review of the Ford Raptor, a pickup truck that CW's advertising staff headline writer described as "every motorcyclist's magic bus".

At a time when the motorcycle industry is desperate to attract new riders, Psycho World could have run a meaningful story about how you don't need a fancy truck or van to go trail riding or do a track day.
"Best used truck and van bargains for $3k, $5k, & $10k" would have been a good topic. In fact I might even write that story.
For that matter if you're going to transport your bike exposed to the elements, you can buy a utility trailer that is easier to load, and that you can tow behind a Honda Civic. Wouldn  
In CW's photos, the bed looks high, though perhaps not as high as it looks on the spec sheet. Ford lists the height of 4WD (as tested) Raptor at nearly three feet. Ford engineers thoughtfully engineered a step up to the bed but if you're using it to move a bike, that ramp's gonna' be steep. Assuming you can get it up, you'll still have trouble getting it all the way in. The four-door truck CW tested has a 6'6" bed, so you can't close the tailgate with even a small bike in there.

The clincher though, is the fucking price: $65,000. Leave aside the fact that it's actually not good motorcycle transport, what percentage of CW readers can possibly afford it? What's next in the series, a yacht you can use to transport your Confederate from Boca Raton to Monaco? Maybe there's one reader in the market for a Lear jet with motorcycle transport capacity.

Yes, they admit it's expensive, but the fawning and tone-deaf 'review', which glosses over overt flaws for the stated purpose, make this another post on CycleWorld.com that reads like branded content. But which is presented as straight up editorial. Sad!

Saturday, December 9, 2017

Going deep on motorcycle death rates

Earlier this week, I had one of those business trips where–right after landing in Washington, DC before even leaving the airport–I checked in for my flight home. So, I was destined to spend even less time in Washington than a typical West Wing staffer.

The purpose of my trip was to attend the initial meeting of the Motorcyclist Advisory Council, a 10-member committee assembled by the Federal Highway Administration, and charged with presenting recommendations to the Administrator on infrastructure issues of concern to motorcyclists. This is a broad remit, covering everything from the design of road barriers to V2V and other ITS technology.

One of the first presentations was essentially a statement of the problem: Motorcycles account for an increasingly disproportionate share of all road fatalities. While we account for less than 1% of all Vehicle-Miles Traveled, we make up over 14% of all road fatalities.

This presentation was made by MAC member Chanyoung Lee, who is on the faculty of the Center for Urban Transportation Research at the University of South Florida. What follows are my own comments, based on Dr. Lee’s talking points.


Even at a glance, you can see that it’s not really as simple as, “Car deaths are decreasing, but motorcycle deaths are increasing.” Both car and motorcycle deaths have been holding relatively stable so far in this decade. But let’s look at a few interesting spots on this graph...

1–Sharply rising deaths in the late ’70s
Deaths rose sharply in this period, perhaps influenced by a double-whammy of widespread helmet-law repeals in the middle of the decade, followed by a gasoline price spike (which, at least anecdotally, is associated with people commuting on fuel efficient motorcycles.)

2–This trough in the ’90s tracks with a period of very slow sales
Deaths dropped to into the low 2000s in the ’90s. More than anything else, this likely reflects the fact that throughout that decade, only about a quarter of a million new bikes were sold per year in the U.S. Fewer new-bike sales isn’t a perfect analog for the number of new (read: most at-risk) riders, but it’s the best corollary that I have at my fingertips. Between the late ’90s and the 2008 crash, however, we make up for lost time by killing ourselves in sharply increasing numbers. This curve tracks almost perfectly with new bike sales.

3–Car fatalities level off. Or do they?
From the early ’90s until the mid-2000s, it looks as if car deaths have leveled off. But in fact, this is a period in which autos become a lot safer. The key to understanding these numbers is to realize that what matters is the rate of death per vehicle-mile traveled (VMT). According to the FHWA, Americans logged about 2.25 trillion VMT in 1992. That number increased to over 3 trillion VMT by 2007. Auto makers likely deserve most of the credit for holding fatalities largely steady.

4–The recession hurt undertakers too, I guess
The sudden drop in motorcycle fatalities after 2007 is explained by an even more dramatic drop in new bike sales, from a peak of about 1,125,000 in 2007 to barely half a million in 2009. Meanwhile, if auto makers could be proud of holding deaths constant in spite of the fact people drove more through the ’90s, they can bust their buttons over the long and impressive drop in auto fatalities from the early ’aughts to the early ’teens. Widespread adoption of advanced safety features like airbags and ABS.  The real question is, as dangerous old cars continue to age out of the total fleet, why hasn’t this trend continued? More on this later.


This photo’s a tad underexposed; sorry. The blue bars are deaths of riders under 29, the red bars are riders 30-49, and the green bars are riders over 50.

5–“Every new motorcycle sold with FREE body bag”
From the late ’70s through the early ’80s, the vast majority of deaths are young riders. At a glance, all the red bars appear about the same from the late ’70s until the mid-’90s. And those little green caps, indicating deaths of riders over 50, seem both constant and trivial.

6–When sales crash, riders don’t
The sales crash of the 1990s corresponds with a drop in young rider fatalities, but no apparent drop in older, and presumably more experienced, rider deaths.

7–“Let’s blame the old guys”
From the early ’aughts until now, younger rider deaths have held roughly steady (that slight rise in the early-to-mid ’aughts tracks perfectly with the last heyday of supersports-class sales.) Meanwhile deaths of over-50 riders have increased significantly. The easy conclusion: Suddenly there’s a bunch of crotchety old farts who can’t admit they should stop riding; they’re a hazard to themselves. But it’s not that simple, as the next graph’s open to at least two very different interpretations...


This graph looks at the number of fatalities by age of rider. The blue line compiles rider deaths in the 2003-’05 period, while the red line compiles deaths in the 2013-’15 period. It is a pretty cool visualization if you’re into stats, and it looks like the final proof for the doddering-old-fool theory of increased motorcycle fatality. Because, the two lines look remarkably similar but the later stats are all pushed to the right. But–and if you know me at all, this will come as no surprise–that’s not how I read it. Are more older riders dying? Of course. But this graph provides no evidence they’re dying because they’re older.

8–It’s 2013. Do you know where your kids are?
Not if you’re a motorcycle dealer. And that very steep rise between riders in their late teens and those in their early twenties simply reflects the fact that your first couple of years on a full-power motorcycle are as dangerous than all the subsequent ones.

The shift in very young fatalities is visible–those early deaths peaked at 21 in the early ’aughts, but at around 24 a decade later. But the rightward/older shift’s nowhere near as dramatic as it is amongst older cohorts. This shift almost certainly reflects something anyone in the business knows intuitively; there are fewer really young riders out there.

9–The early ’aughts seemed to have been a dangerous time for 30- and 40-somethings
That’s weird, eh? Or is it?..

10–Anyone in the motorcycle business between 2003-’13 knew buyers were getting older
Look at those two peaks: the blue peak by 9 and the red peak by 10. In the decade that separates these two sets of statistics, the average age of a motorcycle buyer increased by about a year with each passing year. All that rightward shift really means is that in 2013 when someone said, “Fifty is the new 40” they were right, at least where motorcycle buyers were concerned.

In fact, those two peaks are actually comprised of the very same cohort, seen ten years apart.

11–It’s easy to look at that red line shift and say, “Obviously, older riders are crashing more,” but you could only draw that conclusion if you had access to numbers no one has ever seen: motorcycle VMT by rider age–information that is not available as far as I know.

Anecdotal, I admit; but I am pretty confident that the larger number of older-rider fatalities reflects a far larger number of older riders, including older novices and/or riders returning after gaps so long they might as well be novices.

Look at the way the lines appear to converge for riders in their mid- to late-60s. If my gut instinct is correct, and there are a lot more riders in this cohort now, it suggests that today’s older riders are as safe as they ever were. Personally I suspect that at least where motorcycle safety’s concerned, seventy really is the new sixty.


This graph compiles three years of fatalities, from FARS data for 2013/’14/’15, broken down by motorcycle type. Sorry, but the exposure on this photo barely captures the ‘Other’ category of motorcycles, which includes everything from Naked/Standard to Dual Sport to MX bikes ridden on the street. I hand-drew lines capturing the other data at peaks and troughs. 

12–Everything their moms told them about motorcycles was true
That huge red bulge indicates the scale of carnage, when it comes to twenty-somethings on crotch rockets. The single most dangerous age appears to be 24; that cohort racked up around 450 fatalities. That’s a lot, but it’s even more striking when you realize the sport bike market is in the toilet and the whole U.S. motorcycle industry currently bemoans the lack of 20-somethings shopping on dealer floors.

13–One way to avoid running out of money in retirement
The second big bulge is comprised of riders in their 50s to early 60s, on cruisers and touring bikes. 52 year-olds topped off at about 360 deaths. The tailing-off of the red zone probably indicates that by the time you hit 60, you’re not riding sport bikes any more–although it could also mean that if you still ride sport bikes at that age, you’re more skilled and/or careful.

The bulge in deaths of middle-aged riders wouldn’t even be noticeable except for one thing: the corresponding dip in fatalities amongst thirty-somethings. Only about 260 people in the cohort of 37 year-olds died in motorcycle crashes. It’s easy to conclude that by the time riders hit their 50s, they’re 40% more likely to kill themselves than they were 20 years earlier. But I’m pretty sure that’s not true. There are a number of factors that could skew deaths by riders in their mid-30s lower. That’s a prime age to be married with children, which is a time of life that many people stop riding.

My suspicion is that this graph would really benefit from some additional information, looking at VMT by each cohort. I’m pretty sure that the first bulge would seem even more significant, while the second would seem less so. What I want to know, before concluding that “the problem is all these old riders” is, what is the number of miles traveled per fatality?

"Will Monsieur be dying alone tonight?" Asked the Maitre d'Hotel.
Last but not least, this graph shows the ratio of single-vehicle crashes in blue, compared to crashes involving other moving vehicles (red). Each bar represents a year, between 1981-2015.

Not surprisingly, the ratio is remarkably constant. Between 40% and 45% of fatal crashes are single-vehicle crashes. You might just be able to see the arrival of the first real race-rep supersports bikes on this graph, in the form of a few years of rising single-vehicle fatalities in the late ’80s.

14–Hit me up. Or not.
The consistency of this graph makes the five-year slope from 2011-’15 look significant. For five straight years, the share of fatalities involving another vehicle increased. Is this the ‘distracted driver’ effect? That wouldn’t surprise me.

One way to change the single:multiple-vehicle ratio that much, would be to add about 200 fatalities to the multiple-vehicle tally. An extra 200 fatal crashes attributed to distracted driving, would mean a significant share of responsibility for the “rising death rate among motorcyclists” was actually car drivers’ fault.

In conclusion...
There was one moment at the MAC meeting when someone looked at the period in the mid-’90s when motorcycle fatalities were half what they are today, and said, “So you see, we can cut motorcycle fatalities in half, because we’ve done it before,” and pointed to that area I labeled '6' above. That’s not a solution the motorcycle industry wants to endorse, because it was a period of dreadful motorcycle sales.

15–Going back to what worked in the mid-'90s is not a safety solution the U.S. motorcycle industry can endorse.

 There have been times in the past when rising motorcycle death rates almost certainly were attributable to rising sales–in particular to new riders (or riders returning after a very long gap.) There is a wealth of data from the insurance industry that confirms the extreme risk to new riders; particularly new riders on sport bikes and/or riders in their first month. Many if not most new-rider training programs have been proved ineffective when it comes to reducing accident and death rates.

By contrast and unsurprisingly, the longer you ride without killing yourself, the less likely you are to kill yourself riding. Is there a limit to that observation? Of course; at some point, as we age, the time comes to hang up the helmet. But an analysis of current FARS data, etc., without information about VMT by those ‘danger-to-themselves’ fifty-somethings, must be seen as speculation. I’m old, so I’m a selective filter for old friends; I admit that, but I’m also certain that the people I know who rack up the most yearly mileage are in that 50+ age bracket.

What the motorcycle industry needs is some way to bring in noobs without exposing them to unnecessary risk. That’s a topic for a different post.

If you've read this far, you must feel that you got something out of this long post. I spent hundreds of dollars traveling to Washington, and writing it took a significant amount of time and brain power. Want to throw a little something my way? I've never asked for a donation (and don't even have a means to accept one on this site) but if you want to reward me, buy this book. It's cheap and funny, and makes a terrific gift for any motorcyclist. 


Note that the most recent NHTSA Fatality Analysis Reporting System (FARS) data suggests that in 2016 there were 5,286 motorcycle fatalities (out of 37,461 total) but that in some of these graphs, Dr. Lee used numbers provided by the Insurance Institute for Highway Safety, so they don’t necessarily add up exactly correctly. Any differences are statistically trivial, both databases appear to show the same trends.

Thursday, August 3, 2017

Whither Bonnier? Sport Rider takes its last checkered flag

I suppose it should not have come as a surprise to learn that Bonnier Motorcycle Group has folded Sport Rider, given the times.

But.

Back in my ‘Motorcyclist’ days – which is to say about four owners ago – SR always felt like the sharpest and most-authentic of the Primedia bike mags. It was lean and mean; it was pretty much produced entirely by Kent Kunitsugu and Andrew Trevitt. Considering its low staff count I imagine it was profitable and that ‘Kento’ (something I certainly never called him) could justify its narrow focus. SR didn’t suffer fools as gladly as more catholic titles like Motorcyclist or Cycle World. I think that it came the closest any of those ‘corporate’ magazines to sharing Roadracing World’s credibility.

That was 10 or 15 years ago, at a time when sport bikes ruled the showrooms. All bike sales tanked in the Great Recession, but sport bikes really never rebounded. In effect, the industry’s refocused on entry-level bikes on the one hand, and ADV bikes on the other. Sport Rider was a dinosaur on a cooling planet, and mammals ate its eggs.

And, of course, the Internet’s thrown print into a complete panic. Some of which tinged the obit Bonnier issued for the magazine.

I suppose that Indian LSR bike is worth a post on CycleWorld.com on a slow news day, although it's been left up longer than is justifiable. But is that Indian Bobber story really 'trending'? In the week it's been up it's earned nine comments. If that's 'trending', this web site's got trouble.

Evidently, Bonnier’s not just closing Sport Rider, it’s changing the entire structure of the ‘motorcycle’ group.
BMG is shifting from a title-specific content and sales structure to one that empowers the editorial as well as the marketing staff to focus on one role across all BMG brands. This is compared to the previous model where many of the 13 motorcycle media brands had their own staff members with like responsibilities.
It’s hard to picture Kevin Cameron as anything but Cycle World’s tech boffin, but I guess that means that his work could appear in Baggers now. Sad! That is, if he’s still got a job; the press release spoke of head count reductions in a way that definitely suggests layoffs from multiple titles, not just SR.

This is, to be clear, all about trying to keep a business rubber-side-down as it shifts from paper to web, and as even old guard web sites struggle with increased fragmentation and erosion from social media. And lest you think anyone at Bonnier has an actual strategy in mind, check out this buzzword salad, attributed to Andy Leisner:
As digital channels become more technologically driven and advertising solutions demand greater optimization, these changes will help BMG deliver more informative and inspiring content to its audiences. The new channel-specific approach, in addition to expanding marketing-solution options for partner brands, will also help decrease the cost-per-acquisition and increase sales for the Group’s clients.”

I don’t know what that means. I’d ask Leisner, but he obviously doesn’t, either. But there was one phrase at the bottom of Bonnier’s statement that caught my eye: “The new model will remove the boundaries between BMG departments”. Not titles, or roles, but departments.

What could that mean but that sales and editorial are now officially, as opposed to merely functionally, blended? To be clear, motorcycle magazine editorial departments have not really been independent for decades. Not since manufacturers started flying journalists business class, and putting us up in luxury hotels, while hosting new model launches at exotic race tracks*. But in the last year or two I’ve had a queasy feeling about Bonnier, in particular, presenting branded content as journalism.

Last year, when Indian revealed its all new race only motor and announced that it would again field a factory flat track team, I contacted Polaris’ press guys to get more information and had an awkward exchange as they told me that, basically, they’d issued a press release and some photos but as for features, they were only cooperating with Cycle World. That seemed odd.

Over the winter, a Canadian motorcycle journalist PM'd me to ask, What did I know about Bonnier offering to manage product launches? Until then, I hadn’t heard anything about it.

The last launch I attended -- there were of course editors from Cycle World, Motorcyclist, and Sport Rider there -- a Bonnier sales guy also happened to sit beside me at the pre-launch dinner. It was a gathering where I'd expect to see sales guys from the manufacturer, but not a publisher.

"Oh hi," I said coyly, following with "Is this a Bonnier launch?” as casually as possible.

“No,” he assured me, it wasn’t.

“But that is a service you guys are now offering, isn’t it?” I asked, again trying to sound as conversational as possible.

He told me that it was, and that they’d coordinated some new product launches but not (yet) the launches of any new motorcycles.

Since then, it could just be me, but it sure seems as if Cycle World’s devoting a lot of ink  and pixels to Indian, and a lot of the coverage feels like branded content.

 
I really don't think this is the Indian that brought Indian into the 21st C.
Look, I get that this is an exercise in line-drawing on my part. None of the 'big' motorcycle outlets really practice independent journalism. They all accept free trips and press loaners (in sharp contradistinction with, say, Consumer Reports which buys the cars it tests from unsuspecting dealers and operates its own test track.) 

I myself've accepted a bunch of spiffs from manufacturers, and have even (albeit rarely) sold "gifts" given to me at product launches. It's been years since I have worn a helmet that I paid for with my own money.

But somehow, this feels like a sea change. And, not for the better. 

I'm down with branded content. If some manufacturer wants to produce a video and post it on their own site, I'm cool with that; I'll help them do it. That Red Bull space jump -- OK, we all know it's really just an ad. And the hot millennial girls with their open-faced lids, tatts, and selvedge jeans... sure I know that's really all just marketing for someone. I guess I'm just too old to accept that stuff presented as journalism, in magazines or on web sites that readers might feel are dedicated to serving up an expert independent opinion.

I'm not sure that what I'm seeing from Bonnier right now is branded content masquerading as legitimate journalism, but I wish that press release had been worded to give me faith in the old (and yes, often fictitious) separation of 'sales' and 'editorial'. 


*Note to Manufacturers: Please don’t stop doing that. I love those free trips.