Modern Vespa

Advertising Age has posted a video on Vespa marketing efforts with the headline: "Sales Slump but Vespa Marketing Scooters On." The video focuses on a recent event in Central Park, NYC, and an interview with CEO Paolo Timoni, who touts the somewhat dubious economic benefits of ownership for families using some rather so-fuzzy-it's-furry math.

View it here: http://adage.com/video/article?article_id=138253

I left the following as a rather long comment (editorial, almost) with my opinions regarding the failure of Vespa to properly market its product.

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Someone should tell Piaggio Americas CEO Paolo Timoni that the average American family who he says can save $6K a year by buying a Vespa doesn't live in NYC, where most people don't own one car, much less two. How about an event in Los Angeles, a city where people can ride year-round, where families do own two cars, and which is easily navigated by surface streets rather than the clogged and dangerous freeways?

This is indicative of Vespa's long-running failure to properly market its product. They're a luxury brand, with the highest MSRPs and cost of ownership in the scooter market. Their two big advantages over the competition from Japan and Taiwan are style and build quality-not being economical or gas mileage.

While they should be investing in targeted marketing in specific markets, Vespa spreads it thin by holding an event in NYC and going the cheap route through online campaigns seen only on their sites.

Instead of capitalizing on last year's booming sales to reinforce the brand's image, Vespa rested on its reputation and lost the 150cc and under segment (which has the most appeal for urban commuters or family errand runners) to its competition. Now that sales (and gas prices) are down, they're marketing up the wrong tree. The financial incentives Timoni mentions are offset by what he neglected to mention: the higher costs of registration, insurance, parts and maintenance for a Vespa.

Practicality doesn't sell Vespas. Nostalgia, style and design, and the romance of the scootering life sell Vespas. Customers with the means to pay a premium for the brand and indulge their appreciation for both the company's heritage and the undeniable quality of the product buy Vespas. Yet much to the frustration of owners such as myself, Piaggio USA doesn't get this.

For Vespa, the product is its own best advertising. I love the jealous looks I often get when riding around on my Vespa. But there's no local marketing support to push those looking jealously to the dealers. As many dealers have told me, buyers who come in looking for a Vespa only to suffer extreme sticker shock will often still buy a scooter-usually the lower priced Genuine Buddy. So instead of promoting its brand, Vespa has spent money on trying to tear down the competition and keep Genuine scooters off the floors of their dealers.

This could all spell trouble for Vespa's future in the US and the tarnishing of its image here. When Vespa returned to the US market after being chased out by Honda in the 1980s, their marketing emphasized the the fun and freedom of ownership as a lifestyle choice. Many potential owners in younger demos now choose less pricey options and Vespa is in danger of being seen as the choice for older and more affluent buyers: a Mercedes sedan, instead of a BMW Z4. This is already the case in much of Europe (even Italy) and Asia, where more practical Japanese and Asian models dominate.

Wake up, Paolo.

I was riding from Wenatchee to Seattle on US highway 2,and stopped for gas. 2 guys in a Porsche pulled into the station just to ask me about my Vespa. They were interested in the tires, the cornering ability,the engine, and speed. Apparently they had been following me, and were amazed at what the scooter could do. It seems to me that if Vespa was doing good marketing, the general public would be much more informed as to the abilities of there scooters. I admit I bought mine for nostalgia reasons,and even with all the research I did, I really did not understand how well my 300 would perform, its ease of use, and its fun factor. I hope they don't get caught in the " we have been marketing it this way for years" mode. Lets hope they catch on soon.

I haven't seen the interview but we received a letter from him, congratulating us on our purchase of a Vespa. In this letter, he cites the $6000 savings, which I found was totally off reality. The whole letter looks like it wanted to give us ammunition to do brand conquesting for them.

I think your viewer response is right on the money. Well written and comprehensive.

I respectfully disagree with most of what you write Eric and as a Vespa and Genuine owner clearly you have moved over to the other side.

Which dealer's in Los Angeles tell you "As many dealers have told me, buyers who come in looking for a Vespa only to suffer extreme sticker shock will often still buy a scooter-usually the lower priced Genuine Buddy" because neither of my stores has. I would love to hear 1 Vespa dealer quoted in So Cal that said that. Which Genuine dealers (are there 2?) in So Cal are even selling a volume worth mentioning?

Respectfully you get what you pay for and our clients know that, we are selling Vespa's at a fine pace and it is to those that select Vespa, the best.

Respectfully there is a whole bunch of fail threads on the forum you moderate right now and mostly regarding long term downage and lack of ability to get parts.

It will all play out the way it should in the next 3-5 years, history will show why Vespa has been what it is for over 60 years.

Cheerio,
SDG

PS and the "wake up Paulo", I wouldn't expect to hear that from you.

Paolo is a great guy, but I can't stand to sit though his powerpoint presentations..

Nice one Drew. Nothing like seeing us "take the day off", haha. Next dealer show you just need to be properly juiced prior to the big show.

SDG

I agree with much of what the OP has posted in regards to the article in AdAge ,and as BOTH a Vespa AND a Genuine owner, I believe he would be unbiased, or at worst equally well-informed on THE subject differences (Vespa vs others). I fail to see what disrespect his comments made towards the Vespa product, rather a commentary on what are arguably some "subjective" selling points made by Timoni regarding saving $6K a year by riding a Vespa.

I have 3 Vespa Piaggio products in my garage, I've yet to realize an $18K dollar per year savings on them. I love them, they have qualities my (Asian) bikes don't but inexpensive service isn't one of those qualities.

I'm not saying the maintenance is out of line, but it ain't a money-saver either...that's for certain. At least for people that put miles on them, use them as vehicles and understand the importance of proper maintenance, vs. those that view them as garage-art or rarely ride them.

Granted, as a dealer you have a vested interest in the product, and all that that entails: sales, SERVICE, etc. It's your livelyhood. I would think to people in your position you'd want the marketing efforts to be as effective as possible. Like it or not, Genuine (and some others) are MUCH better at striking the right nerve in their marketing efforts, than saying "it's gonna save money."

Vespa has, over the last 60 years gone from it's original mission of providing money-saving transportation, to what has become a lifestyle, an icon, something for potential scooterists to perhaps aspire to ("someday, I'm gonna get a Vespa") and the brand has indeed become the top of it's food chain. But that doesn't mean it's inexpensive to keep on the road.

Many also consider Mercedes and BMW's to be the best in their automotive classes too, but (and I can speak from personal experience on BOTH cases) they cost more to run and own than MOST other cars most of us can afford to own and drive. That's a fact.

High quality and low price rarely live in the same place. Piaggio could be MORE successful in it's advertising efforts were closer to the pulse of it's demographic is what I take away from the OP's comments on the article regarding Piaggio's marketing program, and I agree with him on that.

Matt,

Well said, without a tone, I completely feel that. I guess I was just shocked that a Vespa enthusiast that has no interest in the profitability of Vespa would say "Wake up Paulo", for me it just struck me odd for the OP. If another manufacturer could make a scooter that is 1/2 of what a 2010 Vespa 300 is we would sell those in our showroom also and you know it.

SDG

ABSOLUTELY! Sell the sizzle (but leave the calorie-count out of it!)

I can't say that I didn't expect this. Did I say anything about SoCal dealers? There are none that sell both Vespa and Genuine in SoCal. Call a dealer who does sell both. They'll probably back what I just said. Or call a Genuine dealer and ask them how many of their new customers come in and say, "I wanted a Vespa, but they're too expensive!" New Genuine owners tell me this or post similar comments on ModernBuddy all the time.

But this isn't about Genuine, your problems with them and need to say something negative about them every time they come up here. This is about Vespa and Vespa marketing. One of my points is that by emphasizing the questionable economic benefits of a Vespa, the company is trying to appeal to buyers who are much more likely to look to lower-priced alternatives, Genuine or not. This focuses on the brand's weaknesses rather than its strengths. Vespas have always sold well in this area and likely always will. They were probably selling well in the LA area when Vespa retreated form the US market in the '80s. Your good fortune hasn't been shared by all of your peers, though. As the Ad Age story says: "But in the first two quarters of this year, sales have dropped just as dramatically [as they grew last year] for the Piaggio subsidiary." They don't make this stuff up. How many Vespa dealers have gone under in the past 12 months? Four? Six? As far as I know, only one of those-San Luis Obispo-has been replaced by a new dealer.

An analogy: You don't see Apple ads touting the fact that they're economical. We know they cost more. Their ads focus on the ease of use, software, dissatisfaction with the competition (Vista), the low incidence of viruses and bugs, etc. Other ads (for iPhone and iPods) focus more on the lifestyle elements-what it does for you, the social aspects of the devices. These ads have helped grow Apple's base far beyond the fanatic core group who are into them and would buy one anyways.

For instance: Did anyone who didn't go to the Vespa site or visit a dealer know about the temporary price drop on some Vespa models? If so, how did they find out? Word of mouth from Vespa owners?

Who is Vespa targeting with their marketing and who do they actually reach? How many people come into one of your shops because they saw a marketing piece or ad somewhere other than the Vespa or Piaggio web site? Does Vespa provide dealers with co-op dollars for marketing and advertising? What happened to the Vespatition?

As far as my "moving over to the other side," I love my Vespa and that should be apparent to anyone who reads my comments. I refer to the quality of their products a number of times. I mention reveling in the jealous looks of people I pass by.

I'm as interested as you are in the sustained viability of the US scooter market as a whole, not just when gas prices spike or when trends recycle. I have as many (if not more) issues with Honda's US strategies as Vespa's. But as a Vespa owner and enthusiast, it pains me to see them rely on reputation and brand recognition and to see marketing ploys which aren't representative of the sophistication and beauty of their product. That's part of the problem. Vespa hasn't been the same thing for 60 years. Sixty years ago it was affordable. It was a product aimed at common people with the intent of making travel accessible to them in ways that hadn't been before. That's very much not the Vespa of today. Why not? Paolo's full of hot air. He's blowing smoke. He spends most of his time in this interview citing numbers that don't hold up to scrutiny and that are completely irrelevant to the event going on around him.

Timoni: "We thought [the $6,000/year savings to families if the own a Vespa rather than a car] was an important and powerful message. So far, we didn't have other people listening."
Is the way to get them to listen to stage an event in the middle of New York City-where most people don't own cars? Wake up, Paolo. Wrong message, wrong place, wrong time.

If Vespa's point is to try to appeal to potential buyers who are anxious in the current economy, why didn't Timoni mention the price breaks or financing deals that might make Vespas accessible to some buyers who previously couldn't have afforded them or were on the edge?

The lower-cost Piaggio and Aprilia models are in more dealers now, but those brands have less name recognition to a new scooter buyer than Honda or Yamaha and even less marketing than Vespa. They're great scooters that don't get the attention they deserve (with the exception of the most expensive one of the bunch, the MP3).

Timoni: "The role that scooters can have in transportation here in the United States is going to increase significantly in the next five to ten years."
I agree that this is a possibility. At least it's my hope.

This increase in the role of scooters will not be led by Vespa. It will not come from the buyers with the most money. It will not come from those looking for prestige. These are not the people who drive the majority of scooter sales overseas. It will arise from need, not want, and growing awareness of scootering as a viable transportation alternative for a much broader and diverse set of people than those who currently ride. This is precisely why I think Vespa should be working to reinforce its reputation as a high-quality luxury brand rather than the economical, practical choice. Lay the groundwork now. Vespa will undoubtably benefit from this rise (should it occur) but the potential is greater than what they'd get by sticking with their current strategy.

One key to the growth of the market Timoni mentions will be having a diverse group of quality scooters available at a variety of price points. This is starting to happen. The rise of lower cost alternatives is good for Vespa; they should stop going so far to fight it. The Vespa should be the vehicle riders of other scooters aspire to own. Instead, the perception among most owners of other scooter makes I speak with is that Vespas are overpriced and owners are just buying into the name. This is the sort of thing Vespa should be countering with their marketing.

Vespa's marketing strategy needs to change, or they will wind up marginalized and cement their rep as the scooter for older, more affluent buyers. They need to funnel more into their other lines so buyers know there are lower-cost alternatives from the same company that makes the better-known Vespa. They need to refocus on the lifestyle aspects, luxury and the benefits of the Vespa rather than trying to compete with other companies in the areas where Vespa is weakest.

Eric,

I knew the reply would come, be long winded and well versed. Vespa is what it is and honestly your thoughts should of been posted on a competitive sight because imho your against them, not for them.

People that own them are already here and somebody tomorrow will buy one, I am certain.

Are sales down this year? You bet. We all have been watching the national and global economy on a daily basis, it is not good but could be far worse I suspect. Harley was only down 91% Q2, I mean, that's pretty bad, ehhh?

I believe you prefer the kool-aid of Genuine and an independent shop for Vespa repair, and hey, that's America, freedom of speech and choice.

No hard feelings, have a great week.

SDG

I interpreted Mr. Timoni's message quite differently than you Eric. Putting aside the hyperbole in regards to the costs to own and operate a car versus a scooter, his message seemed quite clear to me. He made the following statements ... I agree with him. A fact which is backed up by several reports I was able to find online.

I have been in marketing/sales for the past 30 plus years. I understood Mr. Timoni's message to be that every family needs ONE car to take the kids to school, shop for groceries, etc. but the second car (which 70% of all American households have) is mainly being used as a commuter and that second commuter car could easily be replaced by a scooter ... thereby saving the family money in overall costs. It is crystal clear to me that Timoni is going after the family commuter market and NOT the lower end (young) consumer trying to find the least expensive mode of transportation available. He simply pointed out that families have another option to the second family sedan ... and that may well be a good quality scooter such as Vespa!

This event was held at Tavern on The Green ... a well known and upscale place frequented by upwardly mobile (family) types ... many of whom DO own two cars and who probably live in some New Jersey bedroom community. If you are going to market a product like Vespa in New York City (where I worked for nearly 8 years), I think Tavern On The Green is a pretty good choice of venue. As Piaggio USA is based in New York City, perhaps this event was just the first of many to be held across the country at carefully selected venues, targeting Vespa "type" consumers. When launching this kind of event, most companies do a practice run in a smaller target market before testing the waters in their larger markets ... just to iron out the wrinkles in their presentation. Who's to say that similar events are not being planned in Florida or Texas or California?

Eric, I do not understand what your following comment is in reference to: "So instead of promoting its brand, Vespa has spent money on trying to tear down the competition and keep Genuine scooters off the floors of their dealers." ... but I must assume your comment has nothing to do with the event held at Tavern On The Green or the video that you referenced. At least I didn't see any of that taking place in the video! Perhaps this was in reference to something completely unrelated?

You further state: "Many potential owners in younger demos now choose less pricey options and Vespa is in danger of being seen as the choice for older and more affluent buyers". I really don't get your point? You yourself have stated that Vespa is known for their build quality, history, romance and the fact that they are undeniably an upscale product. These days, Vespa IS in fact a product targeted towards the more affluent buyer and other (less expensive) scooter owners are indeed jealous of those of us fortunate enough to own a Vespa. There is nothing at all wrong with that! 60 years ago, their target market was different as they were appealing to post World War II survivors who could not afford a family sedan. Times change and so do marketing strategies! Now Vespa is trying to replace the second family sedan. I believe they are very much in step with the times and are using our current economic situation by marketing to those who still have two vehicles but are finding it tough to support both.

Somebody has to be the best in their field. Why would Piaggio want to lower the Vespa brand by attempting to appeal to the lower end consumer? They have other product lines to fill that niche. I see no "danger" here for Vespa and I believe you may have misinterpreted Mr. Timoni's message. They want to grab some of the family commuter market and in my opinion, that is a very sound marketing strategy.

I believe in Vespa/Piaggio and I think their marketing strategies in regards to the Vespa line of products are pretty much on target for now. I believe in the company so much so that a little more than a week ago, I instructed my stock broker to buy shares for me as a long range investment. I'm not looking to get rich, but I think it is a sound investment.

How Piaggio does or doesn't market their other brands in the US market is a whole different topic. Having said that, I believe Piaggio's focus is currently on reestablishing and growing the Vespa brand so that they will have more funds to begin to market the other brands more effectively.

You mean like the surgeon from NJ that was here visiting his sister? Peppered me with questions about Vespas, as he is starting to question the wisdom of his second SUV just to go to and from his home, office and hospital.

Al

yeah ... like that!

I don't quite understand why you're trying to make this about me, or make it personal. I guess I can only reiterate so many times, this is solely about my opinions regarding Vespa's marketing. I don't disparage the product at all. And, again, the chip on your shoulder regarding Genuine seems to be getting bigger. I mention them, in passing, once. This has nothing to do with Genuine.

You haven't really countered any of my actual points. You're in a position to reply to many of the questions I pose. If you're going to respond, why not respond to those rather than making this into a me vs. them thing?

Is Vespa beyond criticism? Should any critique of the company or their products be posted to other sites rather than here? I think this is exactly the place where this sort of thing should be discussed and welcome dissenting opinions. But please don't try to make this into something it's not. If you take the time to read what I say, you'll find that I'm pro-Vespa and that my criticism comes from wanting them to do more, to do better and to expand their sales to new customers and new areas. I agree. I'm not saying that Vespa should be going after the lower end, but that by making an dubious appeal based on savings, it seems as if he is. There are many other benefits he could tout that I think would make a more effective argument. But, as I said, the Vespa's strengths are not practicality and savings. Was this the smaller market practice run, then? It's not the Tavern wasn't a good spot, just (IMHO) not the most effective one for the message. None of the people I know who live in NYC, many of whom could easily afford a Vespa, own a car. None of them even have a place (other than the street) to park one. Has Vespa USA ever held a series of events across the nation to promote its products? I'd be pretty surprised if that was in the works. I really don't want to get into the Vespa/Genuine thing which is somewhat irrelevant to the discussion (no, it wasn't in the video). The point was that they've spent money, time and resources to try to keep lower-cost makes off the floors of Vespa dealers. That perception isn't always a positive thing and doesn't necessarily create aspiration. We wouldn't want Vespa to be perceived as the (modern day) Cadillac of scooters. In the days of the ET (not all that long ago), which sold for the same price an LX does now, plenty of people in their 20s and early 30s purchased Vespas. But what we see now is that the pricier GTS is the top seller and the owner demographic is aging. It wouldn't surprise me to find that the median age of new Vespa buyers in the US is late 30s, early 40s.

Again, one possible way to counter that would be for more marketing devoted to the Piaggio and Aprilia products. I love the LX series and wish it sold better. Setting aside the question of whether or not going after the second family makes sense and the dubious claims of Vespanomics, let's say Vespa's goal with this event was to appeal to families. Where is the marketing and advertising to support this campaign? Where's the follow through? They garnered a couple mentions in (mostly local) media, none of which mentioned that Vespa was offering scooters as an alternative to the second family car. There's no broadcast ad campaign on HGTV or Food Network or even their web sites. There are no print ads in car magazines or Consumer Reports. Timoni is making his pitch on Ad Age-an advertising trade publication-not the Today Show. The target is largely people who wouldn't have considered a scooter as an alternative to a second car so can't be relied on to go to Vespa's web site. Where was the marketing blitz last year, when interest peaked and many families were more likely to make such a change?

Is that really effective marketing?

If Vespa was truly threatened by Buddy sales (no hate here, I like Buddy scooters), they'd do the unthinkable* and build a low cost, steel-framed and plastic-bodied Vespa model alongside the FLY in China. They've got everything in place for such a model. Some folks would see this as a blight upon the Vespa brand, but newcomers to the segment and Vespa products would likely not care if the price was competitive with other lower cost plastic-bodied Asian-made scooters. It's no different, IMO, than VW or Chevy manufacturing cars and trucks in Mexico. In the end, most only see the corporate badge, and not where the actual product was produced.

Timoni and crew have it right to go after the "well-heeled", or at least, "better-heeled", family market. The price of a Vespa makes that clear. I would say them "losing" the 150cc market to Genuine is like saying Audi has lost the 2.0 liter market Nissan. Apples and oranges to some, and for those who don't see the difference, a Vespa isn't really for them, then. That's not to say they're "beneath" the Vespa fans; rather, they spend their money based on different criteria.


*For the record, I personally don't think this would be a bad idea.

Or cut $500 off the price of an LX?

Personally, I don't think the Buddy is as much competition for the Vespa 150s as it is for the Piaggio 150 (and Kymco for that matter). I've been saying this since the Buddy was first released. Buyers, on the other hand, want to know. My comparison of the LX and Buddy 125 is one of the most-read threads on Modern Buddy and one of the questions I am most frequently asked.

Again, not making this a Vespa vs. Genuine thing. By "lower cost scooters," I'm including SYM, Kymco, Yamaha. Honda used to be lower cost. Meh. I (regrettably) mentioned Genuine because specific dealers and owners have said they're the common alternative for those who can't or won't pay Vespa prices.

The Cliff's Notes versions of all I said previously in this thread:
1. Vespanomics doesn't hold up and shouldn't be the emphasis
2. The benefits and actual advantages of a Vespa over alternatives are being ignored in the marketing, as are more appealing lifestyle and image factors
3. If they're going after families, they could be doing it a helluva lot better because they're not actually reaching them this way

I think that Paulo was referring to the "Vespanomics" campaign, which is something that some here might not know was going on.

You can see his logic here:

http://www.vespausa.com/why.php?section=Vespanomics

Basically, he is arguing the virtues of a Vespa versus a car.

Oh, I know that's what he was referring to. Unfortunately, the numbers don't hold up. Quality, style, luxury, freedom, lifestyle: yes. Economical: no. That's a hard sell in these times, though. But instead of promoting the Piaggio and Aprilia scooters and Vespa's financing deals or $500 discount on some models, the dubious Vespanomics numbers get parroted again. They still don't make sense.

http://www.motorcycle-usa.com/320/1898/Motorcycle-Article/Scooting-thru-Vespanomics-101.aspx
http://2strokebuzz.com/2006/08/scooternista-does-the-math
http://2strokebuzz.com/2009/05/the-vespa-experiment

Hi Eric,

I can't counter your beliefs about Vespa's marketing strategies ... nor would I want to. You are certainly entitled to your opinions as I am to mine. All I can say is that I believe (for the reason's already stated) ... that they are on track with this particular style of marketing in a depressed market.

Yes, I do believe that Tavern-On-The-Green was a good venue choice. Yes, I do believe that New York City is as good a place as any to launch a nationwide campaign. Neither of us knows if they do or do not plan a nationwide campaign anytime soon ... but if they are testing the event concept for some future date, I DO think it is a good market to test. New Yorkers are brutally honest and Piaggio likely got really good and immediate feedback from that event.

It is an inexpensive and easy way to get your name out there and plant the seed of thought in the minds of the consumers. You and I took away entirely different messages from that 3 minute clip. I didn't see the emphasis being on the figures because nobody remembers figures anyway unless they are repeated at least three times in a one minute period. That is basic marketing 101. What I gathered from the clip was that Timoni is going after the commuter business and I believe that is a smart move and a sound marketing strategy.

If I were in their marketing department, I would stage exactly such an event near home base in order to keep company costs down. I would then review the feedback and tweek those portions of the event which require tweeking before hitting my intended major markets.

I don't read the 2 wheel magazines, but considering I own 3 LX's, I think it is fair to say that I am definitely a Vespa client. I haven't seen anything on TV from any two wheel companies of late. Have you? Of course not! Television advertising is too darned expensive for companies the size of Piaggio and even Harley Davidson!

Events such as the one put on at Tavern-On-The Green is a hands on way to reach the potential buyer. Once you have their attention, that's when you do the real selling! That's when you sell the sizzle, the history, the lifestyle and the up market build quality!

Your second and third points above are strictly your opinion. I don't happen to share your viewpoint but time will tell just exactly what Piaggio has up it's sleeve ... if anything.

I too would like to see a major push of marketing the Vespa brand ... as I believe the more Vespas that are sold, the better it will be for all of us! However, I am also very aware that in a depressed market and during lean times, many companies do absolutely nothing but try to hold on to what they have. I think it is a positive indicator to see that Piaggio is out there trying to do something more than just have a good web presence.

What are Piaggio's major competitors doing these days. I really have no clue but would be interested to hear what's what and who may be tackling the market in a big way.

By the way, does anyone think that print advertising will help Vespa? If so, what magazines (or other print media) do you think they should be in on a regular basis and why?

Most of it's my opinion! Yours and all others are welcome as well.

Just don't call me a Vespa hater.

I have seen 2-wheelers advertised on TV-namely sports channels, Speed and so on. (Most ads are targeting kids!) While I don't expect Vespa to run national TV commercials, many dealers run in local markets. Why not produce an ad, make it available to dealers and offer co-op? Local advertising on basic cable isn't prohibitively expensive. Ask the carpet guys. If they're going after families, target the markets where they're best reached.

There are many other ways to promote your products on TV via appearances, features on shows and so on. Advertising on highly-trafficked web sites makes more sense. Again: there's no follow through. A poorly-publicized event in NYC isn't sufficient. They did do print advertising in national magazines as recently as 2003-2004 or so. I worked for one of the magazines they advertised in (after they'd stopped). I don't know if the ads were paid for by Vespa USA, the local dealer (it was an LA-based music mag with national distribution), or via some combo co-op dollars.

Should they do a print campaign now? Mmmmaybe but probably not. Unfortunately, some of the magazines they'd be best off advertising in are those suffering the most from the print decline: fashion, men's mags, music and lifestyle mags. On the other hand, cheaper ad space than ever before!

If their focus is online, why not advertise there? As I said, hit the HGTV, TLC, DIY and other home network sites, all of which get mad traffic. Then expand to some entertainment sites. Offer dealers support for advertising on high-traffic local sites.

I think outdoor (billboards, wall sniping, posters, bus stops, etc.) is probably the most logical ad space for Vespa. I recall seeing, briefly, Vespa of CA ads on the placards above gas pumps. I thought that was a great idea!

I assure you I didn't and never would. That would be uncalled for. I simply didn't take away from the clip the same message you did. Nothing more, nothing less. From a marketing point of view, I don't agree that they should bother with any print media. Right now is the time to show people how much fun you can have on a Vespa! The market atmosphere is perfect for it. They need to get this hands on campaign off the ground a.s.a.p. in my opinion.

I do however agree that a co-op TV ad would be a great help and billboard advertising as well as bus stop and bench advertising is a no brainer. I would get on those immediately! I might even try to get a few politicians behind the commuter concept for inner city types who currently take their cars when there is really no need.

I DO think Vespa's marketing is weak and needs a good infusion of some creative and inexpensive ways to get the Vespa name out there and increase sales while the personal vehicle market is in a state of flux. Giving a few scooters away to those in a position to help promote the Vespa brand and increase inner city scooter usage would also be a brilliant piece of marketing. Oh I forgot, that might be construed as bribery. Hmmm, OK, so loan out a few to a few select city councillors in say any congested city area desperate for relief from the growing number of cars on the road, teach them to ride and set a trial period of say 6 months ... then take the scooters back and place them elsewhere. Present the city councillors with a plan to encourage scooter usage, outline the benefits to the average city, the average household, etc. ... then sit back and see what happens!

Americans need to think more like continentals before scooter sales will increase to any large extent. Approaching their marketing strategy through a hands on approach is the best possible way to achieve this goal sooner rather than later ... in my personal opinion!

Regarding the success of Genuine...

I've been in Genuine dealerships and have ridden the Blackjack (with an aftermarket pipe it was pretty darn fast off the line), the Stella, and the Rattler 110. I have to say tha each is a very nice scooter, but I think that Genuine scooters are also on the high side of the price-point scale. People who buy Buddys do so to get an around town scooter that has a dealer network that has made some remarkably bright business decisions.

First, they kept the classic P series alive with the Stella, which gave them a proven design with upper end appeal, and a niche following fo the 2-stroker old school scooter guys. Piaggio killed their P series, which is like Honda killing off the Cub. Yes, I know that emmissions had a a lot to do with Piaggio's decision and Piaggio wants to be the "green" scooter company, but with a 4 stroke Stella coming out, did Piaggio miss an opportunity? Genuine also has the 2-stroker Buddy 50, Roughhouse 50, and Rattler 110, which will pass emmissions., and we all know how much more power and fun a 2 stroker has compared to a 4 stroke scooter.

Second, they offer cool looking Buddies in color schemes that would make a staid Honda executive's head explode. Offering a 125cc and a slightly upscale, and definitely cooler International Series with the oranges, blues, greens, reds with the retro look but mechanical reliability was genius.

Third, and most importantly, they built the dealer and parts network to combat the stereotypical "crap Chinese scooter" image. Yes, I know Genuine is made in Taiwan, but let's be honest.... most Americans think "Made in Taiwan" = "Made in China". With Genuine, if a part broke, they would have it to you with Honda-like speed. They probably have a better service reputation than Piaggio does at this point, considering some of the dealer horror stories and parts waits I have read about.

Fourth, Genuine Buddys have a 2 year unlimited mileage warranty, and the Stella has a 1 year, 5,000 mile warranty. They have roadside assistance that covers $100 in towing (for 2 years)

Unlike Piaggio, they advertise and sponsor riders that have set off on cross country trips on Buddy scooters, and that builds confidence in their products.

They are also offering $0 down, 0% interest, and $0 payment incentives.


In short, Genuine seems to know what kind of a scooter company they want to be. They want to sell to urban riders, and classic 2 strokers. Compare their business plan to Honda, which had recently killed the Big Ruckus (250cc), and had the anemic 49cc Ruckus and Metropolitan, and their next smallest displacement scooter was the Silver Wing (582cc). Sure they are bring in the 150SHi, but who wants to part with a kidney for a 150cc scooter?

Piaggio needs to do exactly what the OP recommends, and market to the upscale buyer, because the Vespa is upscale. They need to show that the GTS line is highway capable by sponsoring some riders and events. In addition, they need to apply the technology from the Mana to the MP3, and also the 800cc motor, and make that the flagship scooter to go up against the Burgman/Silver Wings. The BV500 could use big brother with a twin like the Burgman has.

They also could go after the lower end market with their Chinese built bikes, but they need to market them differently than they do now. A 50cc 2-stoke entry level Fly (for about $$500 less) would be nice too, and would sell like hotcakes. Why not buy the Lambretta name and build a line-up of tube framed scooters to match up against Genuine?

Anyway, those are my thoughts.

Vespa sales are down.. yes... however at least in my area, Vespa's market share has increased over last year!!!!

I only meant to show those who weren't familiar with the "Vespanomics campaign what it was. I don't agree with it either, as it is similar to the Prius argument. The Prius isn't cheap, and has started going more upscale. Why spend $30k to save hundreds $ each year?

I wouldn't necessarily abandon their marketing green efforts at Piaggio, because they have some pretty cool technology (a hyprid MP3....?) and there are some that will buy on that alone.

There is also some excess in the lineup. I was in a dealership in Daytona yesterday, and they had two cute little 50cc Vespas.... in pink. I thought... "My daughter would love to have one of those for college", and then I heard the price.

Every 100miles I do on my Vespa saves me £15 in fuel that I would use in my car! We pay about £1.03 / ltr !!!! for petrol.If its just me that needs to go somewhere I take the Vespa ,also I find if i take the Vespa to the store I tend not to make compulsive buys ,due to storage on scooter.

I think that works out to about $7.78 per gallon, rounding off.

Premium here in the US (Florida) is about $2.85 per gallon.

Why does your government charge you so much for gasoline?

Just curious.....


Now for you, the Vespanomics argument begins to make much better sense, although you still could buy a less expensive scooter than a Vespa to realize even more savings. Yet you still bought the Vespa, and the reason why you bought the Vespa, be it style, build quality, cachet,..... etc is what Piaggio needs to figure out and bottle in the USA.

Gas here is relatively cheap, even after last year's spike in oil prices. Our driving habits are different than in the UK. We live in suburbs, and think nothing of driving 25 miles into town to shop or see a movie, and we do it on roads that have 65-70 mph speed limits.

A Vespa for most people over here is not the primary, or even secondary option. Most households have two cars, and a Vespa falls more into a "lifestyle choice" than a necessity. I ride mine because I enjoy it. Sure, I enjoyed it in a different way when gas was $4 a gallon, but I still own a car that gets 43 mpg, so it was still a choice.

I completely agree with this and have given it a lot of thought in the past. In an old thread on Modern Buddy, I presented an outline for a plan to approach local governments for enacting pro-scooter policies. I would love for Vespa-the most recognizable and well-respected scooter brand-to become more active in promoting the idea of scootering in various communities.

Where is the Vespetition? I can't even find it on Vespa's site now.

Changing American attitudes about transportation and scootering is a colossal task, but the political and cultural environment to make serious gains is as favorable as it's been since the '70s gas crisis. The federal tax deduction was one step. How about extending cash for clunkers to include trade-ins for scooters? What kind of local and state initiatives (better parking, lower registration fees for high-MPG vehicles, tax benefits, better street planning, cheaper MSF, etc.) can we back as individuals and, perhaps, enlist the aid of Vespa in supporting?

Companies that have effective marketing campaigns in lean economic times are better positioned to reap the benefits when the economy improves. While I have not been overly moved by Vespa's marketing campaigns (at least in Ontario), I am glad to see that they are starting to recognize that their target audience is not comprised of only 20-somethings.

It keeps car mfg. on their toes to build fuel efficient cars, it keeps drivers on their toes to not keep the car running in idle for minutes and adopt fuel-sipping driving habits--unlike what is happening in the States.

But it also contains a much higher share of taxes...

Only Italians know what is best for us, ok?

Vespas have always been my best buddy, anyway..


.

Actually, it keeps car owners focused on fuel efficient cars, and discourages, as you note, wasting fuel, to include unnecessary trips. That said, however, we are used to the prices, just as Americans are used to their prices. Even though we are used to the prices, we do have proportionately more small, fuel efficient cars on the road.

The taxes are used in some EU countries to maintain the roads. Roads cannot be kept in reasonable shape for free.

Al

It also drives up the cost of every other item that gets shipped or driven around Britain, from food, to clothing, etc.

The second part of your answer is the primary reason.

What business is it of a government to decide what trips somebody takes are "necessary", and thus discourage them? What they are really doing is discouraging the entire economy to "not move" because of the higher costs. If the government would tax gasoline reasonably, a lot of these countries woud be suffering less under the burden and their economies would flourish.

And with the roads in Britain, what makes them wear out twice as fast as the roads in America?

This has to be one of the most interesting and thoughtfully responded to threads I have ever seen. Whilst I can't comment on the actual subject as I live in a different "Market" I applaud the respect of differing opinions bouncing two and fro on this thread.

I agree. The thoughts, comments, and opinions expressed in the debate above are a welcome change from the typical "what kind of helmet should I buy?" rehash.

Well done!

I forgot to clarify this with my first response: the government is not in the fuel selling business and does not set the prices. They only set the taxes.

For British roads, which ones wear out twice as fast as which American roads (which US state)?

If the entire world is buying a barrel of oil from OPEC at roughly the same price, and if refining costs are roughly equal, then the government is effectively setting the price by setting the tax that busineses must collect. Gas taxes are higher in California than in Florida, so California gas prices are higher.

If the US State and Federal Gas Taxes are roughly $.50 of every gallon, and if a gallon of gas is about $2.50 for regular (a $2 difference, and a 25% tax), then why would Britain effectively tax their citizens $5 more per gallon? Brits are paying around 300% in gas taxes, if my calculations are correct. That directly affects their standard of living in higher food, clothing, and anything that is transported costs.

It doesn't matter which state I choose as an example. For a 300% tax you could darn near rebuild a new road every year.

Hi JLB its because the uk government charge so much in tax i could use a bad word or two , but hey in pushing for my other half a karma target lol check out this site if you want a scare on fuel tax!!! http://www.petrolprices.com/fuel-tax.html

That is outrageous.

What do you get in return for paying those taxes?

Don't the people understand that if gas prices are high that it adds costs to nearly every product you buy or sell, and thus is a gigantic drain on your economy?