Ducati's strategic logic was focused on 3 elements: a. Reducing costs of "physical attributes" without affecting willingness to pay b. Incurring costs to increase willingness to pay by enhancing "intangible attributes" c. Adopting an aggressive growth strategy 1. Who does Ducati identify as its relevant market? 2. What are the tangible and intangible drivers of Ducati's buyer value (willingness to pay)? List the tangible and intangible attributes that increase Ducati value. 3. How did Ducati reduce costs of physical attributes without affecting the Willingness to pay? 4. What did Ducati do to increase willingness to pay (what are the things they spent on to increase willingness to pay)? 5. Did Ducati increase prices relevant to competitors? (Exhibit 11) 6. What evidence is there that Ducati succeeded in increasing willingness to pay? Instructions for the case: - You will need to pay special attention to things that customers value (performance, comfort, etc..), and things that customers value especially in Ducati bikes. - Try to understand why Ducati performed different activities and made different decisions to either reduce costs or increase value in the minds of customers (e.g., how and why they changed their production process, how and why they changed their distribution process, the World of Ducati). Ducati's strategic logic was focused on 3 elements: a. Reducing costs of "physical attributes" without affecting willingness to pay b. Incurring costs to increase willingness to pay by enhancing "intangible attributes" c. Adopting an aggressive growth strategy 1. Who does Ducati identify as its relevant market? 2. What are the tangible and intangible drivers of Ducati's buyer value (willingness to pay)? List the tangible and intangible attributes that increase Ducati value. 3. How did Ducati reduce costs of physical attributes without affecting the Willingness to pay? 4. What did Ducati do to increase willingness to pay (what are the things they spent on to increase willingness to pay)? 5. Did Ducati increase prices relevant to competitors? (Exhibit 11) 6. What evidence is there that Ducati succeeded in increasing willingness to pay? Instructions for the case: - You will need to pay special attention to things that customers value (performance, comfort, etc..), and things that customers value especially in Ducati bikes. - Try to understand why Ducati performed different activities and made different decisions to either reduce costs or increase value in the minds of customers (e.g., how and why they changed their production process, how and why they changed their distribution process, the World of Ducati)