ib_p05_allenbentleymktanal

ib_p05_allenbentleymktanal - 1 Allen Bentley and Sazama...

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$76,000 $77,000 $78,000 $80,000 $81,000 $82,000 $83,000 2001 2002 2003 2004 2005 Year Allen Bentley and Sazama Motorcycles Dean Cronin, Kaiser and Associates 1
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A New Marketing Strategy Was Born How did a company that was struggling financially and on the verge of bankruptcy in the early nineteen-eighties, 1980s turn itself around to compete head to head with the same Japanese competitors that had previously dominated the marketplace? A little more than two decades ago, Allen Bentley Motor Company found itself amid an economic recession and faced a highly competitive market flooded with quality, cutting- edge bikes from Japanese companies. In this paper, we will demonstrate that a well- designed conservative marketing strategy focused on quality and customer satisfaction allowed Allen Bentley to redefine its products and seize a market niche from its competitor, Sazama. We will also provide recommendations for future marketing strategies that will allow Allen Bentley Motor Company to continue capturing market share and become a world-wide company. Background In 2001, Allen Bentley Motor Company celebrated its hundredth 100th anniversary. Allen Bentley has had a long history of producing motorcycles that began before the first world war. The company has provided bikes for use in the first and second world wars and has suited police departments nationwide with bikes for decades. Allen Bentley enjoyed great success until the 1960’s when it faced bankruptcy as a result of poor management. In 1965, American Machine and Motorcar Company (AMM) purchased Allen Bentley and “poured millions of dollars into facilities and manufacturing, but forced the company into overproduction while 2
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driving down the quality. When AMM insisted on putting its name, not Allen Bentley, on the motorcycles, sales dropped further.”. Dismayed by the fate of a legendary American brand, a group of loyal Allen Bentley managers decided to buy the company from AMM in 1980. Allen Bentley management had such a deep belief in their company’s product that some mortgaged their own homes to save the company. The executives recognized that the company had lost touch with their its customers and knew that they needed to instill quality back into their products. In order to accomplish this monumental task, the executives realized immediately that a new approach was needed to bring the company back from the brink of extinction. Allen Bentley executives began to develop a radical marketing strategy centered on two key factors: quality production and a commitment to customer satisfaction. While Allen Bentley was attempting to re-create itself and carve out a niche market, Sazama emerged as the market leader in motorcycle sales. In the winter of 1974, Sazama created its own marketing strategy that would differentiate its products from Allen Bentley and forever change the image of motorcycle riders. As Allen Bentley floundered, Sazama invaded the American market with a clear and well- defined strategy. Whereas Allen Bentley riders were viewed as Rough Riders, Sazama
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This note was uploaded on 04/08/2008 for the course CISC 104 taught by Professor Lynch during the Spring '08 term at Northampton Community College.

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ib_p05_allenbentleymktanal - 1 Allen Bentley and Sazama...

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