Category Archives: marketing

Cub Cadet Challenger Targets The UTV Value Segment

Posted on by
Reply
The 2015 Cub Cadet Challenger 700 utility vehicle.

The 2015 Cub Cadet Challenger utility vehicle.

SVR recently interviewed Jeff Salamon, Director of Marketing for MTD Products, the manufacturer of the Cub Cadet brand of products including the new Challenger series of UTVs, which we discussed at length. The Challenger represents a renewed commitment to the UTV market for Cub Cadet whose Volunteer line of UTVs has been on the market for a number of years. While the Volunteer is more of a heavy duty work UTV, the new Challengers, the 500 and 700, are more of a mixed use line that can be for both work and recreation. As Salamon states “Whereas we say work and off-road for the Volunteer we say task and off-road trail for the Challenger.”

With MSRPs starting at $8500 and $9500 respectively, the 500 and 700 are clearly priced for the value segment of the UTV market. But that is not to be confused with being low quality or bare boned in the features department. In fact, one of the prime selling points for the Challenger is their wealth of standard features including large 26″ off-road tires, alloy wheels, windshield, roof, 3,500 lb. winch, horn, digital dash display, bumper guard, halogen lights and hand brake. They also beefed up the vehicle’s hardware with a reinforced frame, high-strength steering components and dual row wheel bearings.

At these price points Cub Cadet is competing against the value priced imports from the likes of Kymco and CFMoto as well as the lower priced UTVs of the major players in the market like Polaris and John Deere. Against the former Salamon believes Cub Cadet has an edge with their strong and established American brand combined with a well-trained and well-stocked dealer network. Against the more established brands, the wealth of standard features gives Cub Cadet the advantage.

Cub Cadet expects to launch a crew version of the Challenger in the near future and will be building out the Challenger line on an ongoing basis driven by consumer demand and dealer feedback. Learn more:  Cub Cadet Interview

LSV Road Use Laws Can Come In Bunches

Posted on by
Reply

A story about LSV ordinances in Southern Illinois communities reveals a common pattern of how these laws are passed. It often starts with a municipality that sets the precedent and can be the test case for other municipalities in the area. Once other communities see that the ordinance can have a positive impact for residents, it can provide a catalyst and an easier sell in other nearby cities. Initially, there was a fair amount of pushback against these ordinances because of safety concerns, particularly the mixing of higher speed traffic with low speed vehicles. In part, this stemmed from a lack of safety data related to the use of LSVs in these environments. But once the initial adopters started instituting these ordinances, other communities could make a better assessment of both the pros and cons of allowing LSVs on local streets.

This may point to how to expand the LSV market for personal transportation. If either manufacturers and/or local dealers wanted to build an LSV market, they may want to take the approach of identifying the municipality in a particular area most agreeable to passing an ordinance and use it as a test case. They could then use it as an example to lobby nearby municipalities to do the same. In many cases, the impetus also starts with local residents who want an LSV option. Bringing them into the process would help as well. While it could take some time, once momentum built in a certain area, that micro market could expand quickly.  Learn more:  Thesouthern.com

Yamaha To Sponsor McGladrey Classic Pro-Am Event

Posted on by
Reply

Yamaha’s golf car division recently announced that they will be sponsoring this year’s pro-am event at The McGladrey Classic, an official PGA Tour event.  The press release follows:

Yamaha inks agreement to sponsor the 2015 pro-am at The McGladrey Classic

The Yamaha Golf-Car Company will sponsor the 2015 Pro-Am at The McGladrey Classic, an Official PGA TOUR Event, on Wednesday, November 18th. For the first time, the Pro-Am Event will be played on both the Plantation Course and Seaside Course at Sea Island Golf Club in Georgia’s Golden Isles. The courses are the same that the professional golfers will play competitive rounds on during this year’s McGladrey Classic.

The Yamaha Golf-Car Company has been investing in grassroots programs designed to support and grow the game of golf through PGA of America Sectional events, the Web.com Tour, as well as a partnership with the Executive Women’s Golf Association. Over 1,400 golf courses have switched to Yamaha Golf Car products over the last five years, signaling a major shift in the industry. Armed with a rich pedigree of quality and engineering, Yamaha’s fleet, utility, and personal transportation cars are enjoying a fast growing following throughout the world both on and off the golf course.

“Like most people, I’ve always been familiar with Yamaha’s high performance products within the Motorcycle, ATV, Boat, and Marine industries,” said Tournament Host Davis Love III, 20-time PGA TOUR winner and Captain of the 2016 U.S. Ryder Cup Team. “Now, having recently spent a lot of time with their golf division, it’s easy to see that their Golf Car and Utility Car products have carried on that same high quality, reliability and high-performance position in the golf industry. Yamaha is an ideal fit for The McGladrey Classic and I’m proud to have their support of our event.” “We are proud to support the Davis Love Foundation and be a part of the sixth annual McGladrey Classic. This is a great opportunity for us to support children and family charities and build relationships with our customers,” said Tom McDonald, President of the Yamaha Golf-Car Company.

The Pro-Am includes a Tuesday night Pairings Party hosted by Love and his wife, Robin. The event has become an integral part of The McGladrey Classic and one of the premier Pro-Am events on the PGA TOUR. There are a limited number of Pro-Am spots available. For more information on the 2015 Yamaha Pro-Am at The McGladrey Classic visit mcgladreyclassic.com.

About The McGladrey Classic (www.mcgladreyclassic.com)
The McGladrey Classic is an Official PGA TOUR FedExCup Event played on the Seaside and Plantation Courses at Sea Island Golf Club located on St. Simons Island, Georgia. The tournament (which will be held November 16 – 22 in 2015) is hosted by the Davis Love Foundation which was established by PGA TOUR pro golfer Davis Love III for the purpose of contributing to the wellbeing and progress of society by supporting both national and community-based programs that focus on children and their families. The McGladrey Classic is named for title sponsor McGladrey LLP, the nation’s leading provider of assurance, tax, and consulting services focused on the middle market. McGladrey has more than 7,000 employees in 75 cities across the country. McGladrey is a member of RSM International, one of the largest global networks of independent accounting, tax, and consulting firms, with more than 35,000 employees in more than 100 countries around the globe.

About Yamaha (www.yamahagolfcar.com)
Yamaha Golf-Car Company, headquartered in Newnan, Georgia since 1988, manufactures the most highly engineered, highest quality golf cars and utility vehicles in the industry. The company was the first to develop proprietary Electronic Fuel Injection technology, producing the greenest gasoline-powered golf car available, and with the industry’s smallest carbon footprint. Yamaha also offers a complete line of transportation and specialty vehicles.
CONTACT:
Melanie Trotter
Media Director
The McGladrey Classic – An Official PGA TOUR Event Hosted by Davis Love III
704-807-2173
mtrotter@trotlandgroup.com

Value Priced UTVs & Cargo Capacity In The Work Segment

Posted on by
Reply
A new UTV from Cub Cadet's new Challenger series.

UTVs from Cub Cadet’s new Challenger series are part of a cost/benefit analysis.

My colleague Stephen Metzger has performed a cost/benefit analysis of the light duty utility vehicle segment with a focus on price versus cargo box capacity for vehicles priced between $5,200 and $10,000. He used the mid-point in the price range to examine two sets of vehicles from a range of manufacturers. Comparing the two price ranges, vehicles in the lower price range had a slightly higher variation in price but a lower variation in cargo box capacity. The higher priced vehicles showed a significant variation in cargo box capacity. In conclusion he states:

In comparing the two sets of vehicles, it appears to be more difficult to place a superior cost/benefit value in the lower price range. The variation in the cost/benefit ratio is relatively small. Yet the opportunity lies in raising the cargo box capacity, while maintaining price. Then lower price range vehicles begin to encroach on capacity featured in the higher priced models.

To see the full analysis view the article.

Polaris Ranger Sponsors PRCA ProRodeo

Posted on by
Reply

Polaris announced that the  Polaris Ranger will be the “Official UTV of the PRCA, the RAM National Circuit Finals Rodeo and Wrangler National Finals Rodeo.” The national sponsorship deal also includes the renaming of the The Wrangler National Finals Rodeo to the “Wrangler National Finals Rodeo presented by Polaris RANGER”, and PRCA World Champions and all RNCFR champions will each receive a Polaris RANGER, as well as both of the Remuda Award winners.  Learn more:  Theprairiestar.com

Polaris Commercial Pushes Non-Pneumatic Tires

Posted on by
Reply
Polaris Commercial highlights potential cost-savings for non-pneumatic tires.

Polaris Commercial highlights potential cost-savings for non-pneumatic tires.

I recently came across a product listing from Polaris Commercial for Non-Pneumatic Tires (NPT). We’ve posted about the tires previously. Originally designed for military applications, Polaris has moved them into the commercial arena. While their basic pitch for the tire is the same, ability to handle rough terrain and punctures or travel where air tires can’t, they also added another potential benefit for commercial users, cost savings. While I haven’t seen any pricing for the NPT, it is more expensive than the standard UTV tire and probably considerably so. However, if you are operating a fleet Polaris is making the argument that with NPTs you can avoid carrying a spare and/or reduce the number of tires you buy and store for your vehicle fleet. In addition vehicle downtime can be avoided.  Learn more:  Utilityproducts.com

Polaris Adds Pro Armor Brand To Accessories Lineup

Posted on by
Reply
A Polaris RZR 800 with a Pro Armor door.

A Polaris RZR 800 with a Pro Armor door.

Polaris Industries recently purchased the Pro Armor Brand of ATV and side-by-side accessories from California-based of LSI Products Inc. and Armor Holdings LLC. Pro Armor had sales of $15 million last year. The company will continue to operate and develop products independently at their Riverside, CA location. Polaris has been collecting brands of late for its’ Parts, Garments and Accessories (PG&A) division including acquisition of KLIM branded snowmobile and motorcycle clothing and Kolpin Outdoors, another UTV/ATV accessory manufacturer. Learn more:  Startribune.com

Comment:  Accessories account for over 50% of Polaris’ PG&A revenue which reached $611 million in 2013 and has nearly doubled since 2009 when it was $313 million. In 2014 management expects PG&A revenue to increase another 20%. Increasing sales of this division has been a strategic objective of the management and they have executed on that objective through both organic growth and acquisition of existing strong brands. Accessory spending on high performance UTVs is quite high, averaging around $1,500 and often ranging thousands of dollars higher. In a recent presentation to the investor community Polaris reported strong increases in dollars spent on accessories per vehicle for both Rangers and RZRs.

GEM Adds Gas & LSV Utility Vehicles to Their Product Lineup

Posted on by
Reply
The new 2015 Polaris M1400, a gas powered utility vehicle being sold by GEM dealers.

The new 2015 Polaris M1400, a gas powered utility vehicle being sold by GEM dealers.

GEM adds an LSV version of the electric eM1400 for 2015.

GEM adds an LSV version of the electric eM1400 for 2015.

The GEM brand of transport and light utility vehicle, owned by Polaris Industries,  recently expanded their product lineup to include a gas powered M1400 and a street legal version of the electric eM1400, the eM 1400 LSV. The eM1400 was introduced last year. The press release follows below with more details. The base MSRP for the M1400 is $7,999 and for the eM1400 LSV is $10,999, which is $1,000 more than the eM1400.

What’s interesting from a marketing perspective is that the gas-powered M1400 is carrying the Polaris brand but is available from GEM dealers and is included on the GEM website. While GEM has always been associated with electric powered vehicles, the distribution network and brand have a strong presence in commercial and institutional venues such as colleges, universities, municipalities and parks where customers are purchasing gas and diesel powered STOVs as well. GEM’s established distribution network and experienced commercial/institutional oriented sales force is an important asset. Polaris is trying to leverage this strength to sell more non-electric commercial vehicles but, at least for now, maintain a distinction between the electric GEM brand and non-electric vehicles. This expansion will also broaden the competition between Polaris and the golf car manufacturers that are already selling both electric and gas vehicles into these markets. Historically Polaris has attacked markets by segmenting them and creating models for specific sub-segments. It is likely that they will continue to add more gas-powered vehicles as well as electrics to be sold under the GEM umbrella.

GEM® Extends Offerings for Dealers with New Gas and LSV Models

Gas-powered Polaris® M1400™, electric eM™1400 LSV now available through nationwide dealer network

 MEDINA, Minn. (Aug. 21, 2014) – Polaris® Industries Inc. (NYSE: PII) has expanded its GEM® line product offering of transport and light utility vehicles to include the new Polaris® M1400™ gas-powered commercial side-by-side utility vehicle and the GEM eM™1400 LSV street-legal electric utility vehicle.

 As the first gas-powered utility vehicle available for purchase through authorized GEM dealers, the Polaris M1400 is a 4×2 vehicle designed specifically for light-duty commercial utility applications. The vehicle is equipped to handle the demands of a jobsite with 1,400 pounds of payload, a cargo box capacity of 1,100 pounds and the ability to tow up to 1,500 pounds.

 “Our number one priority at GEM is to help customers find the right solution for their unique needs,” GEM General Manager Tim Blinkhorn said. “It is very common for accounts to require a fleet with a mix of electric and gas-powered vehicles. By adding a Polaris engineered gas utility vehicle to our line with an extensive range of accessories, GEM dealers are ready to provide the best tool – electric or gas – for the job.”

 The M1400 features a Polaris ProStar 31-horsepower engine with electronic fuel injection and reaches a top speed of 26 mph, which can be limited with the optional Polaris Speed Key. Independent rear suspension and front IFS MacPherson Strut ensures the safe and efficient transport of people and cargo even when hauling at maximum capacity.

 On the electric front, the GEM eM1400 LSV has all the features of the eM1400 introduced last fall, and is also LSV compliant with a horn, headlights/taillights, turn signals, an automotive-grade windshield, a windshield wiper and three-point safety belts.

 Like all of GEM’s street-legal models, the eM1400 LSV reaches a top speed of 25 mph, produces zero emissions, can be driven indoors or outdoors and on most city streets with posted speed limits of 35 mph or less.  

 Available options and accessories make it easy for customers to configure the Polaris M1400 and GEM eM1400 for their specific jobsite application and unique needs. Factory installed options include removable bed sides and a fully enclosed max box. Additionally, both utility vehicles support Polaris’ innovative Lock & Ride® and Lock & Work™ accessories.

 The Polaris M1400 and GEM eM1400 come with a two-year limited warranty and can be ordered through more than 250 authorized GEM dealers in North America. To set up a test ride, or for more information on the complete Polaris GEM lineup, visit GEMcar.com.

Polaris Industries Inc.         Media Contact: Megan Langenkamp
2100 Highway 55              Phone: 414-292-0246
Medina, MN 55340-9770  mlangenkamp@n-s.com

 

Polaris Launches Ranger Crew With Integrated HIPPO Multipower System

Posted on by
Reply
Polaris Ranger with HIPPO Multipower System at a recent trade show.

Polaris Ranger with HIPPO Multipower System at a recent trade show.

Polaris recently launched their Ranger Crew Diesel utility vehicle with an integrated HIPPO™ Multipower™ System (MPS) from the Mobile Hydraulic Equipment Company. The MPS allows users to power hydraulic, pneumatic, electric and welding equipment directly from the vehicle’s diesel engine, in this case a 24 hp engine. Polaris points to rail, municipal, construction, oil and gas, rental, utilities and mining industries as well as the military as potential markets for the vehicle. The integrated HIPPO 1041CP Multipower System has one hydraulic tool circuit, two quick disconnect pneumatic fittings, two 120 volt electric outlets at 20 amps and one welding console with quick disconnects.The RANGER with HIPPO MPS is currently available for sale through authorized dealers, Polaris Fleet Sales and defense channels. Learn more:  Polaris.com

Comment:  This vehicle is a continuation of Polaris’ strong push In the last several years into the commercial, government and military utility vehicle segment. With a sales process and longer selling cycle than what their typical dealers are accustomed to, management has not been satisfied with their rate of progress in the commercial and government segments. To that end they have developed partnerships with companies and brands with a strong presence and marketing experience in the commercial markets such as Bobcat, Ariens and now Mobile Hydraulic Equipment Company.

Good & Bad Trends For UTVs

Posted on by
Reply

Recent news articles point to a mix of good and bad trends for the utility vehicle market. The good is that UTVs are becoming increasingly popular for a variety of work applications as they increase worksite efficiency. As an article in Rental Management Magazine points out, an increasing number of equipment rental bids for construction, utility, oil and gas, and event planning contracts require a line for utility vehicles. This trend is one of the reasons growth in the UTV market has outpaced the economy as a whole. Buyers have been willing to spend money on the vehicles because it makes economic sense for their operations.

The driving force is increased productivity and efficiency as users are able to more easily move around equipment and people. UTVs have increased their capabilities and versatility with more hauling and towing capacity, crew versions and increasingly the ability to add work attachments. In addition, there is a range of fuel options now available for UTVs with diesel, gas with fuel injection, electric and hybrid powertrains. The trend has been increasing horsepower across all of these powertrains. Electrics have been migrating to 72 volt AC motors which give them more capabilities and expand their potential work applications as some users institute “green” initiatives.

The rental business is an important indicator since it caters to such a wide variety of market segments, exposes customers to new equipment and provides them an opportunity to try out the equipment. The rental business does offer special challenges though because of the variety of work applications. One being the need to correctly match the UTV to the end use depending on key factors such as off-road/on-road use, terrain, people moving, hauling or towing requirements, weather conditions and more. For equipment rental companies this means carrying a range of UTVs to match their regional market needs. Another issue is safety since users may be unfamiliar with UTVs or a particular brand of UTV. A variety of safety options may be available from side netting, three-point seat belts and ROPS to reverse alarms, dynamic braking and light packages and online training/safety material. Different types of speed limiting technology is also available depending on the vehicle brand.

If the UTV rental business is a positive trend, the negative trend is an increase in UTV thefts. A recent article from The State in South Carolina highlights this trend. We have also been tracking this through other local newspaper articles from throughout the country. One of the reasons for the rise in thefts is the increasing popularity of UTVs and thus creating more of a market for stolen vehicles. Some simple actions proposed by law enforcement to reduce thefts include:

  • Do not leave items near or close to the highway.
  • Make sure serial numbers are recorded and stored in a safe place so that the items may be placed into the national computer system if stolen.
  • Please don’t leave any of these items in areas that are easily accessible or near the roadway.
  • If someone approaches you about selling one of these items at greatly reduced cost, please report that to law enforcement.