For the Love of the Open Road Motorcycle Market Profiler 2018 Brought to you by Media Group Online, Inc. For the Love of the Open Road © 2017 Media Group Online, Inc. All rights reserved

Demographic Trends Are a Drag of Sales www.mediagrouponlineinc.com Demographic Trends Are a Drag of Sales According to Statista, 487,100 new motorcycles were sold in the US during 2016, a 2.7% decrease from the 500,700 sold during 2015. Motorcycle sales peaked during 2006 when 1,1900,000 were sold, and sales have been stagnant since the recession (2008). During spring 2017, there were approximately 12.65 million households that owned a motorcycle, an increase of 1.6% from autumn 2016, but still less than the 12.86 million motorcycle-owning households during spring 2016. The aging of Baby Boomers has negatively impacted motorcycle sales, as fewer are riding, plus, continued disinterest from Millennials. During 2003, only a quarter of motorcycle riders was 50 or older; by 2014, it was almost half.

In Search of a Lighter, More Manageable Ride www.mediagrouponlineinc.com In Search of a Lighter, More Manageable Ride The industry has shifted from larger, heavy motorcycles to more lightweight and less- expensive models to appeal to Millennials and women. Between 2011 and 2016, sales of bikes with engines smaller than 600cc increased 11.8%, while those with larger engines increased 7.4%. Sales of motorcycles with the smallest engines (less than 125cc), however, decreased 32.2% during May 2017. Smaller motorcycles are less intimidating and more affordable. Harley-Davidson’s Street 500 costs less than $7,000 and Kawasaki’s Ninja 300 approximately $5,000, compared to Honda’s traditional-sized Gold Wing F6B, at more than $20,000.

Harley-Davidson’s Lead Shrinking www.mediagrouponlineinc.com Harley-Davidson’s Lead Shrinking Harley-Davidson, the industry leader, continues to experience declining sales. Its Q3 2017 US sales decreased 8.1% YOY and worldwide motorcycle sales decreased 14.3%. The only bright spot was general merchandise sales, increasing 11.3% worldwide. During Q3 2017, Polaris retail sales increased 16% YOY and sales increased at least double- digit percentages since Indian bikes were released for the 2014 model year. The company claims its US market share is more than 10%, as of September 2017. Italian manufacturer Ducati sold 55,451 bikes during 2016, including 8,787 in the US, its number-one market. BMW Mortorrad USA sales increased 3.8% to 7,157 units during Q1 and Q2 of 2017; it sold 88,389 units worldwide, an increase of 9.5%.

Who’s Interested in Motorcycles? www.mediagrouponlineinc.com Who’s Interested in Motorcycles? During the first three quarters of 2017, Harley-Davidson continued to be the most researched brand in the cruiser (61%) and touring (75%) categories, according to NADAGuides. Harley-Davidson, however, didn’t appear in the sportbike category. The leader was Kawasaki, at 24%, followed by Yamaha, 20%, and Suzuki, 18%. In off-highway, KTM was the winner, with 30%, followed by Yamaha and Honda at 25% each. Web traffic for motorcycles was lowest in Florida, Texas and California and highest in Montana, North Dakota, Wyoming, New Mexico, Mississippi, Arkansas, Vermont, West Virginia, Rhode Island and Delaware.

www.mediagrouponlineinc.com Moto Facts Motorcycles sales are seasonal, with the summer the strongest, followed by spring. Alliance Bernstein believes that motorcycle sales growth in the US will remain flat, or no growth, and the growth of the number of riders will decrease through 2021. Motorcycles are the most common type of powersport vehicle to be traded for a new one. When a new unit was bought, an older unit was traded in 20% of the time, usually (96% of the time) another motorcycle

Advertising Strategies www.mediagrouponlineinc.com Advertising Strategies Showcase smaller, less expensive bikes to appeal to female riders (14% of motorcycle riders, but a growing market) and Millennials. Position motorcycles as a cheaper, more eco-friendly alternative to cars to attract young, first-time buyers. Maximize any sale with a discounted bundle of accessories or a “grab barrel” of accessories, for example, pick any three for one price. The same promotion can be directed at service customers.

www.mediagrouponlineinc.com New Media Strategies Advertise on off-roading and adventure Websites and blogs. Simplify the research process for prospective buyers by creating comparison charts of features and specs on your Website, promote the charts via social media and/or emails or an e-newsletter. Support local motorcycle clubs’ community/volunteer projects, providing a matching dollar amount for the total number of volunteer hours. Share and promote the charitable and non-profit projects on your Website and social media pages with photos and videos.

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