Issue link: https://read.dmtmag.com/i/536070
10 • July 13, 2015 • Powersports Business NEWS www.PowersportsBusiness.com economics, a lot of it's demographics and a lot of it's just new product offerings. Specifically to Yamaha, we've been able to outpace the industry in growth this year sig- nificantly, and that's directly attributed to three key factors. Obviously one, all the new prod- uct we've introduced in the past 24 months, kind of a redirecting of our marketing efforts, and, I think, a renewed optimism by dealers. That comes full circle to the overall economic improvements. It was such a downturn after the banking crisis of 2009 for a lot of OEs and especially dealers, who were looking for that turnaround or bottoming out. And it happened in certain segments even a couple years ago, but from a total industry aspect, I think more people are seeing that turnaround this year than in the past. PSB: Which bike is the hot seller for Yamaha right now? DM: It's a real close race, no pun intended. So many of the bikes are doing so well and are so close. If you look at monthly sales, or fiscal year, even 12 months, it separates out because not all of the models have been on the market 12 months. But for [May], our new YZF-R3 would be at the top of the list, followed by the new YZF-R1 and then tied for third it's very, very close between FZ-07, FZ-09 and the Bolt series. PSB: How exciting is it to see new product like the FZ-07, FZ-09 and Bolt doing well? DM: There was such a period of little, if any, new product, not just at Yamaha, but within the industry because of the recession. We've had an overabundance in almost every category from scooters to competition YZs, cruisers and sport. But the market's reacted well where those bikes have been positioned, and not just by accident — a lot of what we've seen in the past, even though new bike sales decreased drastically after the banking crisis, used bike sales saw quite a bit of a volume, and that was more an economic issue, and then you had that period where there was really nothing new to attract buyers. Once the economy stabilized, there were new product offerings, and a lot of those people that have been in that used bike segment are coming back, and thankfully, they're buying Yamaha models. PSB: Has creating product that's available in a lower MSRP tier been important? DM: Yes, that is both not just an economic reality of today, that directly ties to where those customers were buying in the used segment. It's also a demographic shift. But there are still two distinct segments — the high end is doing very well, and then that beginner, not entry- level so much, but re-entry in a lot of cases, is also doing very well. PSB: Which demographic is Yamaha reaching best right now? Has Yamaha's key demographic changed? DM: Obviously baby boomers still make up a majority of riders statistically. I think 2014 was the tipping point where gen X, gen Y, millen- nials outnumbered baby boomers, and we're starting to see that, if not statistically, anecdot- ally at the dealer level, at consumer rallies, and I see it on the street. Younger, more female, which is good. PSB: I know one of the demographic concerns for the industry is that too many baby boomers are getting too old for riding, and that's still the primary demographic. DM: It's a concern for the automobile industry; it's a concern for many industries — what are the younger generations' life choices going to be, especially as those differences are more pro- nounced because of technol- ogy and the influences they grow up with. PSB: What is Yamaha doing to reach out to that y o u n g e r d e m o g r a p h i c to make sure that if they choose to be in powersports, they choose Yamaha? DM: A number of things on the business side. Three areas of focus have been social media; infrastruc- ture, what we call CRM — customer relationship management — which is technology-driven; and our R&D capabilities, to be able to provide the product that they want. From a market- ing standpoint, it follows very similar — we're doing more online with new digi- tal initiatives and with social media, more promotions outside the normal channels of motorsports. Because we have race teams and such a huge investment in that mar- keting effort, it's very easy for us to go to the races. But we started actually two years ago — this will be our third year — going to non-motorcycle events, lifestyles as diverse as food festivals, music festivals, some other motorsports, such as NASCAR, the Palm Beach Grand Prix, and the return has been phenome- nal, both for brand exposure, but also on a sales basis. One of the benefits of new technologies is we can measure exactly the return as opposed to maybe some of the older media, such as television, by directing people to website land- ing pages and then watching how they interact with our social media sites, our websites and do they buy. And the good news is, many of them are buying. We have mentioned some of the market- ing efforts with the lifestyle trucks. When we started actually with the Bolt, the year we intro- duced that, we segued one of those trucks to Yamaha sport. This year it's featuring the R3. And then last year we actually sponsored a music concert tour called Uproar. It featured a number of bands in about 30-plus cities coast to coast, and again, being able to measure with name collection how those people interacted with our brand and if they bought, it was very beneficial to our dealers and our brand with that involvement. PSB: How is your dealer network right now? DM: The dealer network overall is very stable. They're benefitting not just from a lot of the new models and the increase in volume, but with the used sales and accessory parts busi- ness. PSB: One of Yamaha's recent big announce- ments was the launch of Yamaha Motor Finance. Why launch that, and how important will that be for sales? DM: We've got a very strong relationship existing today with both Capital One and Syn- chrony Financial … but the new initiative really does fill a niche for younger, less credit established buyers, or even people returning to a higher credit score that our current partners weren't serving. It's a good way for dealers to be able to attract new buyers, younger buyers and expand sales. PSB: What drove this initiative? Were dealers asking for it? DM: One of the top three requests from dealers is more credit approvals, and that's just a fun- damental of our business. A lot of promotions tend to focus on a lot of premiums, extended warranties, different rebates, different incen- tives, and what we always hear from the dealers is we don't need to give more incentives; we need to approve more of the people that want to buy. PSB: How have credit approvals been, both with Yamaha Motor Finance and with your other retail financing partners? DM: The current partners do a wonderful job. It's really an integral part of our business that really didn't even exist 20 years ago. The new business has been a planned roll- out. It's actually only been on the market for three months. We started as a test with only six dealers, expanded to 60. We just went to 12 states at the beginning of April, so we're looking toward the next rollout of additional states scheduled for the beginning of August. And it's a learning process. PSB: Yamaha also recently announced a partnership with HJC to design R1 helmets. What went into that partnership? YAMAHA CONTINUED FROM COVER See Yamaha, Page 13 NPA appoints Ramanauskas as RSM in Florida National Powersport Auctions (NPA), the world's leading powersport auction exclusively for dealers, has recently ramped up, includ- ing hiring Chris Ramanauskas as the regional sales manager for Florida. With 35 years in the industry, including 17 years at the dealership level, Ramanauskas has seen it all, includ- ing the unparalleled opportunities in the pre- owned powersports market. "I have been in the powersports indus- try since I was 16 years old," Ramanauskas said. "I have seen many changes come to our industry, and I think the next five years are going to continue to grow our business — jump on the train or be passed!" After spending the past 18 years with Parts Unlim- ited, Ramanauskas is a familiar face to deal- ers in the region and is looking forward to what happens next in his new RSM role. "When Chris wanted to join the team, we were extremely pleased," NPA sales director Mike Murray said. "Adding someone of Chris's caliber immediately adds to the services and guidance we will be able to offer our dealers." "I read about NPA, and appreciate the stability that a 25 year-old company brings to the table. This is the next phase of my motor- cycle career!" What is in it for his long-time dealer con- tacts? "They are missing the boat if they are not selling more pre-owned units; this is where the profit is! There are no complaints on availabil- ity, either … NPA has that covered!" From his first 3.5-hp Briggs & Strat- ton mini bike with a scrubber rear brake at age 5, motorcycles have been an obsession for Ramanauskas. "No one in my family rode, but I saw the fun, adventure and skill level that motorcycling requires watching Evel Knievel and the USGP from Carlsbad on the Wide World of Sports. I was hooked! I still ride to this day, both dirt and street, as often as I get the chance." PSB EARLY YEARS OF MOTOCROSS MUSEUM UNVEIL Yamaha revealed its 2016 off-road bikes and updates to the FZ lineup and Star Bolt series at Tom White's private Early Years of Motocross Museum in Villa Park, Calif. See photos of some of White's 100-plus motorcycles and motorcycle memorabilia at Facebook.com/PSBMagazine. CHRIS RAMANAUSKAS