Vespa

BA 590Building Customer Relationships

Term Paper

Mandy Culver Rick Leeper Randall Ward Shayla Sharp

I. Introduction

To fully understand Vespa the product and the direction of the company in terms of the

American brand community, we must first understand the history of Vespa. Accordingly, the

types and depths of their relationships with customers in other markets offer unique insights into

their marketing approach in the United States (U.S.). With this understanding of Vespa’s

product and customer evolution, we can dissect and analyze their American brand community

dimensions. In particular we will focus on Vespa’s multi-dimensional customer relationship

impact, position, and resources. We will conclude this competitor brand strength audit with a

forecast of their likely strategic actions for the next three years.

In 1938, Fiat created a prototype scooter. The vice president of Fiat, Count Comerana, shared

this design with Enrico Piaggio, the CEO of Piaggio Aviation (www.italianmotorcycle.com 2005).

After World War II, Piaggio Aviation laid in ruins while allied forces forced Enrico, as part of the

peace agreement, to cease airplane manufacturing. In 1945, Enrico called upon his to engineers to

design a Piaggio scooter. After one displeasing attempt, he acquired a new head designer CoiTadino

D’Ascanio, the inventor of the first modern helicopter (www.itlianmotorcycle.com 2005).

D’Ascanio created a two-wheeled, 98cc, revolutionary scooter. Upon hearing the buzz of its engine,

Piaggio exclaimed “Sembra una Vespa!” (translation in English: “It seems like a wasp!”) and Vespa

was born.

International

Vespa South Africa is the number one scooter retailer in South Africa (Jooste 2004).

Vespa attributes this success to their business model, which focuses on only three scooter models

compared to the several different models offered by competitors. The company is also seeking a

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“cult” following that is reinforced by Vespa executives’ decisions to “instill in every owner that

knowledge that he/she is part of the Vespa Culture” (Jooste 2004). We will demonstrate that

Vespa’s South African marketing concept, brand community satisfaction, and product

positioning are also being applied to the Vespa U.S.A. arm of Piaggio.

President Hans Tabalujan of PT Danmoters Vespa Indonesia has stated that he believes

Vespa scooters are no longer competitive with other Asian scooters in his country because the

special market segment they have pursued has not been changed in years (Asia Pulse 2005). The

American implications of this statement, which can be found in Vespa U.S.A.’s predicted

customer-to-brand and customer-to-company strategy, is that Vespa must continuously adapt its

market segment.

United States

Vespa’s first assault on the U.S. market in the early 1950’s never took a strong market

hold (Tayman 2004). They chose Sears Roebuck as the exclusive dealer of their product, a

strategic decision that suffocated sales. Only after Piaggio de-emphasized Sears did sales

increase. Vespa sold nearly 250 million two-stroke scooters through 1985, after which time,

stricter EPA standards closed the U.S. market to the company because of heavy pollution issues

(Tayman 2004). Vespa re-entered the market in 2000 with the Granturismo, the largest (curb

weight over 300 pounds) and fastest (70 miles per hour) Vespa scooter ever made. No longer can

Vespa’s be found on the Sears sales floors. Instead, a network of 94 Vespa boutiques now sell

the full range of Vespa Lifestyle products, (i.e. mugs, key-chains, t-shirts) and 10 models of

scooters (Tayman 2004). Piaggio currently has over 15% of the U.S. scooter market (Greenberg

2004).

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Corporate

The current President and CEO of Piaggio USA is Paolo Timoni. He previously served as

senior vice president of sales and marketing for the Piaggio Group worldwide. Paolo is currently

expected to lead “brand operations and develop the company’s expansion in North America and

South America”(www.findarticles.com 2005). Before working for Piaggio, Paola Timoni was a

partner at McKinsey & Company, a firm that has global partnership serving three of the world's

five largest companies and two-thirds of the Fortune 1000 (www.mckinsey.com 2005). It is here

that Timoni, like his colleagues, helped clients make substantial improvements to their

performance in budgeting and finance. In particular, McKinsey is involved in consulting that

goes “beyond rescuing sick companies to helping healthy companies thrive and grow”

(www.mckinsey.com 2005). During this time, Timoni was also a special guest at a speech

entitled The competitivity and the ability to innovate of Italian firms in the global market hosted

by MIT Sloan-Harvard Business School in Boston, November 2002.

Piaggio is a private company that employes 6,000 people as of 2004 (Hoover Company

Records 2005). Their CEO and Managing Director is Stefano Rosselli Del Turco and their

Research and Development and Operations Director is Lucio Masut. Family-run since its

founding, Piaggio and C, S.p. A. has recently been acquired by German Deutsche Bank (80%),

Texas Pacific Group (10%), and the Agnelli Family (10%). The Agnelli family also owns a

controlling share of Fiat (Hoover Company Records 2005). Piaggio USA is a subsidiary of

Piaggio and C, S.p. A, Italy.

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II. Dimensions of Brand Community

The Vespa name has firmly established itself as a legitimate brand community in the

United States. Between riding clubs, exposition fairs and national rallies, Vespa has created an

environment for Vespa owners and enthusiasts to share their interests with one another.

McAlexander et al. (2002) defined a “brand community” as a community that exists

based upon the customer’s commitment to the brand and the experience the customer receives

from the brand. Brand communities are also influenced by several other factors including

geographic locations, social situations and “temporality” (McAlexander et al. 2002). The Vespa

brand community features these characteristics and can be applied to the Customer-Centric

Model of Brand Community created by McAlexander et al. (2002). The model itself focuses on

relationships between the customer and the following four dimensions: brand, product, fellow

customers and marketer. The following descriptions will integrate the Customer-Centric Model

with current information on the Vespa brand clubs, rallies and competitions:

Customer-to-Customer

The customer to customer relationship between Vespa owners is demonstrated by the

existence of riding groups and national conventions. According to vespaclubusa.org, Vespa

riding groups exist throughout the country. Owners are brought together based upon their interest

and enjoyment of the riding experience. Through their common bond, these individuals discover

a sense of community and create relationships that can often last beyond the group rides.

During the national conventions, known as Amerivespa (Piaggio USA 2005), individuals

from around the country collectively assemble to participate in activities centered around their

Vespas. Beginning in 1993, these national rallies facilitate opportunities for Vespa supporters to

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participate in group rides, attend Vespa display shows, witness new models, enter competitions

and more importantly, interact with other individuals like themselves.

Vespa Blogs

Another outlet for Vespa customers that facilitates interaction are the “Vespa Blogs.”

Currently, two blogging sites exist within the Vespa U.S.A. website; Vespaway and Vespa Quest

(Vespa Blogs 2005).

On these websites Vespa enthusiasts and consumers communicate by posting their thoughts on

related items such as new Vespa models, tips on accessories, sightings of Vespas in movies and

information on riding clubs. By having access to these sites, individuals who own Vespas or are

interested in knowing more about them can gain information from the customer perspective.

Many of these blogs contain narratives that describe their Vespa experiences. Oftentimes,

these experiences play a role in defining individual’s self. According to Belk (1988) important

possessions are the “component(s) of a sense of self”. When material items become part of daily

routines, they achieve a level of importance, and individuals can become highly invested in the

product. These possessions become strongly associated with personal identities and serve a

purpose that goes beyond the basic function of the product. For example, an individual posted

the following message on vespaway.com (Vespa Blogs 2005):

Perhaps I will make this a running series, as I am always swearing to people that

you can carry a lot more stuff on a Vespa than you think you can. I have been

framing

out a room in my basement so I took off 2 days from work. My wife uses our Nissan

Sentra for her daily commute so I am left with my Vespa for any supplies that I

might need. Well, sure enough I made 3 runs to the Hardware store already

yesterday &

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today. I picked up a tube of Liquid Nails, a 2 foot Level, and the biggest item,

a 40lb

bag of Top 'N Bond. The nice guy at Resnick's Hardware who carried the bag of

cement

out asked "where's your car?" and just I pointed at my ET4 and pulled down the

spring

loaded luggage rack. I bugee'd the bag in place and zoom zoom off I went!

By reading the message, one gets a sense that the author is quite content with his

possession. The author makes it known that his Vespa fits his lifestyle and meets his needs for a

vehicle with large carrying room.

Customer-to-Brand

During the first Amerivespa rallies, most of the attendees were from or near the city in

which the event was held. For example, when the 1995 National Rally was held in Manitou

Springs, Colorado, the majority of the 200 participants were from Colorado. At the 2001 rally

held in Oklahoma City, Oklahoma, 700 attendees were as close as one day’s drive. The increase

in attendance can largely be attributed the strength of the Vespa brand name.

The Vespa brand can assist in the creation of communities based upon identification with

the brand (McAlexander et al. 2002). Since the formations of these communities are often based

on commonalities, the support for the brand can bring individuals together from different cultural

backgrounds, geographic locations and lifestyles. Similar to the study on Camp Jeep

(McAlexander 2002) discussed later in this paper, it was the brand name that was the feature that

intertwined the lives of the participants. They could identify with others and identify similarities

based upon this one facet of their lives.

Customer-to-Product

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The Vespa, as a product, has a target market in mind. With a sleek, fresh look, the Vespa

has a certain appeal that can attract a certain kind of customer. Just as Harley-Davidson

motorcycle creates a particular image for its clientele, so does the Vespa. With its current

advertising, Vespa will likely target a youthful, sophisticated consumer, an urban dweller who

wants and needs convenience, the fashion-conscious, chic rider.

Another avenue the Vespa marketers are pursing is trying to bring a European style to the

U.S. Since the original Vespa was distributed in Italy, the scooters are now being sold at stores

with an Italian style. According to an article produced in the Knoxville News-Sentinel (2002),

Vespas are now being sold in indoor stores as opposed to outdoor lots. Similar to a boutique,

these stores contain “marble and glass facades” where “chic-dressed” salespeople approach

customers with the intent of selling the style, rather than a machine. One customer in the article

was quoted as saying “It’s a wonderful machine, but you pay a lot for style and name.”

This stylistic image of the Vespa brand is also found in various media outlets. In the film

“Roman Holiday” with Audrey Hepburn and Gregory Peck, the Vespa was displayed for the first

time on screen. The Vespa seemed to fit within the backdrop of the film and added to the

romanticism nature of the film. “The Talented Mr. Ripley” was another film in which the Vespa

was used in conjunction with the Italian setting and stylized plot (Knoxville News-Sentinel

2002).

Customer-to-Marketer

The Amerivespa Rally is a perfect example of the different ways Vespa can be marketed

to potential and current customers through the following specific examples:

Group Rides

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During each of the conventions, a mass ride has occurred where all participants ride

throughout the host town. During the trip, riders are able to converse with other Vespa owners,

inspect different models and even experience riding a Vespa for the first time. The collective ride

allows first time riders a chance to be with other experienced riders and it creates an environment

where questions may be asked and stories may be shared. It also gives the veteran riders an

opportunity to boast their skills as well as “mentor” the rookie riders.

Show Competitions

Many Vespa owners are vintage enthusiasts who enjoy fixing up the scooters and then

showing them off. The biggest competition was held in 1998 where there were 15 different

categories ranging from Best Vintage to Best Non-European Scooter. The members of the rally

award the trophies to the winners which can provide a sense of belongingness to the brand. The

show competitions also establish a sub-culture within the Vespa community that goes beyond

just riding the vehicle.

Specialty Activities

The specialty activities are events that are not reoccurring at each national rally.

Activities such as scavenger hunts, musical concerts, raffles and “the Dragon” (a strip of

highway that is so tedious that riders who successfully conquer the Dragon without wrecking

receive a t-shirt reading “I Beat the Dragon”) are aimed at providing more opportunities for

recreation and interaction for the participants.

Brand Performance

With regard to the customer base, the Vespa brand seems to be performing well. Brand

strength lies in the nature of the relationship Vespa has with their customers. Using the Harley-

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Davidson-oriented subculture of consumption (HDSC) as a model (Schouten and McAlexander

1995), the subgroups within the Vespa brand community are homogeneous and committed to

certain patterns of consumptive behaviors that are visible, and serve to link people together.

Marketing Vespa to consumers and aspiring owner’s attempts to attract those who resonate with

one subculture or another. For example, advertisements for the company stress the relative

importance of the Vespa owner’s ability to: (1) fill their tank for a few dollars; (2) take the scenic

route every day; (3) ability to look forward to their commute; (4) leave when they want, and

reach their destination faster; and (5) to hop on, twist the throttle, and reclaim their freedom

(Vespa Portland 2005). For the Vespa owner, “the small errand is an opportunity for

adventure” is a mantra to which many consumers can relate. This relationship between consumer

and scooter is distinctive because the value the owner perceives by actual ownership is related to

the experience. As Bhattacharya and Sen (2003) report, the more distinctive the relationship

between the experience, customer satisfaction, and the value they perceive from the experience,

the more likely the relationship will be strengthened.

From June 2nd through June 5th of this year, Vespa scooter owners from all over the

United States gathered for the 13th annual “Amerivespa” (Piaggio USA 2005). As mentioned

earlier, this is a recurring national event in which scooter owners, most notably Vespa and others

gather for a rally. This year the rally drew participants from across the U.S. and as well as world-

wide, and hosted a variety of events including scooter rides through the host city. Additional

scheduled events included technical information sessions, an obstacle course, a scooter race,

dinners, and an award ceremony. Piaggio USA along with Vespa club members from across the

county worked together to coordinate the event each year. McAlexander et al. (1995) described

in their research, a similar phenomena with Camp Jeep and the Harley-Davidson motorcycle

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rallies. The authors immersed themselves in scheduled Jeep and Harley-Davidson events---

termed “brandfests.” Similar to the Amerivespa, brandfests attracted a wide range of Jeep

automobile and Harley-Davidson motorcycle owners who could participate in various activities,

thus forming a type of brand community. And like the Amerivespa, these events are more than

just “social gatherings.” Shared rituals, experiences, conversations, attitudes and other

meaningful affiliations among the subgroups are reported, and subtle as well as defined

differences exist. For Vespa owners, the scooter is symbolic of chic fashion, for some it is a fun

and convenient mode of transportation, for others it is an economic gas-saving necessity.

McAlexander et al. (1995) report that marketers of products have a responsibility to the

brand and to their consumers. A corporation’s active role at brandfests helps create shared

experiences and opportunities to obtain consumer information about preferences and choices.

This type of environment (e.g., brandfests/rallies) provides rich and meaningful interactions

between and among those attending. Active participation (both consumer and company

personnel) can create and influence brand enthusiasm and shared experiences.

For Vespa owners and the corporate company, these annual rallies not only serve to

support product enthusiasm and shared experiences, but also strengthen the bond between the

brand and the community. Furthermore, understanding the consumer on the “basis of ownership”

provides opportunities for marketers to promote “unrealized benefits” to the consumer, through

shared experiences and enthusiasm for the product itself. When these shared experiences are

good and the enthusiasm is high, consumers are more likely to be “emotionally invested in the

welfare of the company” which may ultimately lead to increased brand loyalty and trust

(McAlexander et al. 1995).

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Vespa strives to be distinctive in their advertisements (Appendix 1) and their products.

The consumer attraction to this distinctiveness can be somewhat attributed to consumer

perceptions about a company and the identity the company hopes for or strives to portray.

According to Bhattacharya and Sen (2003) a consumers’ need to be distinctive can be attributed

to variation in cultural norms, experiences, and socialization. Therefore, the more distinctive and

similar the values of a company to one’s own values, the more attractive the company and the

identity will be. From an organizational standpoint, Vespa positions their product (the scooter)

and brand quite differently and distinctively from their competitors using advertisements and

language such as “vintage,” “nostalgia,” “chic,” “lifestyle” and other terminology to convey their

uniqueness. For consumers wishing to associate with that distinctiveness, the Vespa brand and

product achieve that quite well through various forums such as shopping at a boutique,

participating in the Amerivespa, or purchasing a vintage or limited edition Vespa.

III. Vespa Lifestyle

As important as it is to scooter owners to save gas and have an inexpensive vehicle,

Vespa is working to create much more than that; they are creating a lifestyle for their customer.

Through clubs, nostalgia, the pure joy of the ride, and new complementary products, Vespa is

able to create a world for their customers that allow them to feel as though their Vespa is more

than part of their life, it is part of them.

When Vespa re-entered the U.S. after a long absence, they had defined their market as the

“twenty-something’s” that wanted cheap and easy transportation. However, Vespa executives

quickly realized that their highest potential lay with the baby boomers who remembered the

Vespas of their childhood (Lee 2005). Vespa quickly began targeting this market segment which

has the discretionary income to afford a Vespa and the expense of customizing them.

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Additionally, due to the fact that many are becoming empty-nesters, baby boomers have more

time. It is not uncommon for a mature Vespa owner to double the price of their Vespa by

adding vintage parts, paint, lights, and mirrors (Los Angeles Times 2005).

When it comes to nostalgia, baby boomers are clearly the largest purchasing segment.

The purchase of a Vespa reminds buyers of the days of their childhood when the candy-colored

scooters were the indicator of what was hip. Baby boomers love to scoot around on their Vespas,

and are the most likely owners to join or form one of the hundreds of scooting clubs.

The scooting clubs that have been formed around the U.S. offer admittance to all types of

scooter owners even though the majority are Vespa owners. However, most of these members

are Vespa owners, and couldn’t imagine owning anything else. According to Lisa Santonato, a

club member and Vespa owner, “I could never own (another brand). I’d be too embarrassed.

It’d be like wearing the wrong dress” (Fillion 2005).” These clubs are strong contributors to the

Vespa lifestyle, where meeting up with fellow Vespa owners, barbequing, and scooting around

can attract hundreds of members and offers these owners the freedom that only scooting can

give.

The scooting clubs also offer more than just scooting trips; they offer these enthusiasts

the opportunity to show off their customized Vespa and all of their accessories. Vespa owners

have turned their scooters into more than a mode of transportation, they are a fashion accessory

(Associated Press 2005). Vespa has caught on to this tendency to customize a scooter, and have

released their new Vespa Lifestyle collection. This Vespa Lifestyle collection is focused on

accessorizing the Vespa owner and includes clothing, bags, goggles, watches and books (Vespa

USA 2005). These products extend the connection between the owner and their Vespa by

creating a new persona for the Vespa owner. Similar to the different persona that Harley

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Scooter MSRP

$0

$2,000

$4,000

$6,000

$8,000

$10,000

Aprilia Vespa Honda Beamer Yamaha

Davidson owners create for themselves, these Vespa Lifestyle customers can become a person

that is recreated when zipping around on their scooter in their Lifestyle accessories.

People who wish to have the scooter experience are not limited to Vespa for their

purchase. There are other companies working to establish a lifestyle that Vespa has created for

their customers. Most of these companies attempt

to compete on price and features, rather than

lifestyle. Honda and Yamaha have been working

to create a following for their scooters that is

similar to the Vespa brand community, but the

scooting clubs are primarily devoted to the vintage style Vespas, which created the scooter

phenomenon in the postwar era (The Los Angeles Times 2005). The different brands of scooters

are all welcome in the scooter clubs, but Vespa clearly has the largest following.

Vespa left the U.S. market due largely to low sales and high emissions standards, but

VespaUSA reentering the market has reenergized the Vespa brand community. VespaUSA is

sponsoring scooting events to extend this brand community and lifestyle. VespaUSA has a

strong motivation to encourage these events and continue to create new products like the Vespa

Lifestyle collection. A potential competitor of Vespa might find it difficult to compete with the

Vespa lifestyle that is intertwined with feelings of nostalgia that come from owning a Vespa.

This challenge would be large because Vespa owners do not look like they are anxious to give up

the lifestyle that owning a Vespa offers.

IV. Resources for the leadership of Vespa

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The resources available to the leadership of VespaUSA include product distribution in 36

states, numerous potential target segments, and price advantage over alternative methods of

transportation. The company has successfully used multiple marketing strategies targeted at

different consumer groups since the scooter’s reintroduction into the U.S. in 2000. The Vespa

distribution network consists of 94 Vespa boutiques across 36 states. All of the boutiques offer

service (maintenance) to their customers, and all offer flexible terms in financing, similar to

motorcycle or automobile financing. VespaUSA should attempt to understand brand loyalty by

consumers, what consumers want from a Vespa product, what is involved in their purchasing

decision, and their lifestyles. To achieve this, leadership will likely focus their strategy on

several consumer segments: (1) the baby boomer; (2) the urban user who wants a convenient

mode of transportation; and, (3) the consumer who thinks of Vespa as a fashion accessory.

The baby boomer generation consists of those persons born between the years 1946 –

1964. For many in this category, it includes a generation of people nearing or about at retirement.

In the cover story of Business Week (Lee 2005) this era of consumers are reported to be

fascinated with the Vespa primarily because they remember the popular scooter from their teens

and early adulthood. The author, Lee, reports that “Much to the company’s surprise, consumers

age 50 and older now buy a quarter of the scooters Vespa sells in the U.S. Marketing to this

group will prove profitable if managers figure that as they do a better job of marketing to this

group, that portion [of consumers] could grow to about one-third” (2005:94). As quoted by Paolo

Timoni, CEO of Vespa, this is an attractive market segment for Vespa because “…their careers

are established and stable…this age group tends to have more free time…are less likely to have

children at home…” (2005:94).

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The baby boomers are a generation that were indoctrinated with mass marketing and

online services (e.g., shopping, getting information, banking, etc.), and television. Rethinking

marketing strategy will be key for this age group as brand preferences are not locked in. Lee also

reported that “aging boomers are obsessed with looking 20 years younger, and are open to new

experiences and products” (2005:96). Therefore, Vespa will need to consider a marketing

strategy specifically focused to this group.

The urban user who wants a convenient and efficient mode of transportation is another

market segment that corporate management will likely consider targeting. In a recent article in

the Seattle Post-Intelligencer (2005), The Vespa Club of Seattle reported that gas prices have

somewhat eliminated the barrier of getter a scooter. For many ferry commuters in the Pacific

Northwest, the scooter is a fun and easy way to get around. In her article, Chansanchai reported

that:

“The rising cost of gas- recently soaring to more than $3 a gallon…has given the green light to scooter buyers already seduced by the retro-cool look, ease of use and being first-on, first-off when it comes to the ferries” (2005:P1).

As stated in the article, Seattle is sixth in the nation in scooter sales, and total scooter

sales (national) have more than doubled from 2000 (42,000 units) to 2004 (86,000 units). Victor

Voris, owner of two Seattle Vespa boutiques and who has the number one store in sales in the

country, was asked why the Pacific Northwest is such a good place for scooters. He was quoted

as stating “bad traffic, bad parking, and high gas prices” (2005:P1). Furthermore, the article

states that Vespa owners are price conscious when it comes to gas prices, which makes owing a

Vespa all that more enjoyable, and the new scooters are more women-friendly.

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An all-women’s group called the Belladonnas formed in 2001 to provide an outlet for

women who ride and own scooters that want to trade knowledge with “like-minded individuals.”

One member stated that her scooter was used for short trips to the movies and the store, however,

another member stated that “once you put on a helmet, you’re somewhat of an instant rebel…you

set yourself apart. Everybody’s isolated in their car with their cell phone…there’s a certain

amount of serenity in putting a helmet on.” (Chansanchai 2005). The Vespa Club of Seattle

reported saying that the Vespa scooter was the “new second car” of Seattle. Vespa will likely

consider a strategy aimed at the urban dweller that is cost conscious and wants an efficient and

fun mode of transportation that makes getting around town easy and smooth.

The third market niche that Vespa will likely consider is the group that considers the

Vespa a fashion accessory---that is, a lifestyle. Online ads advertise the stylish Vespa as

“Sparkling! Inviting! Euro-chic on wheels” (www.vespaqueens.com/show.htm 2005). These ads

coincide with the company’s release of the Vespa limited edition PX 150 Serie America, a

remake of the vintage classic. The company announced this release in 2004 and only 500 models

were produced and available for sale. As indicated in the release they targeted those who want

the classic Vespa with the “chic” vintage styling:

“The PX 150 “Serie America” comes in a vintage green with a metal plaque by the glove box stamped with one number of 500 and a historical PX book. Twenty-seven years and two million units since its launch, the Vespa PX remains a cult scooter, a symbol of Italian style everywhere in the world, and the single most widely sold Vespa in history. It is the only Vespa that has remained in production for over 20 years and has been present on the list of best selling vehicles for over a quarter of a century (Vespa USA).”

The Vespa corporate website promotes fashion and exclusivity by claiming that “…it’s

not the brand or the logo that’s cool, it’s the vehicle of a lifestyle…in it’s own unassuming way it

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possesses something that other brands spend billions trying to achieve: authenticity”

(www.vespa.com 2005).

It is likely that future strategies for VespaUSA have been indicated through the various

media releases from 2004 and earlier this year, and previously discussed in this paper. The

company has been very successful at differentiating their product from their competitors in

numerous ways and has resulted in the number of units sold doubling since the reintroduction in

2000, and the introduction of the Vespa clothing line. It is likely that the leadership will choose

strategies to increase market share growth rather than profit, therefore they will want to increase

their presence in various channels. One way to accomplish this is through exploiting consumer-

to-company identification and creating brand community strategies, such as the continuation of

corporate Vespa in the Amerivespa Rally.

Piaggio USA uses consumer blogs on their corporate website. As Bhattacharya and Sen

indicate, this is an opportunity to “…build deeper, more committed relationships with customers

and turn them into champions” (2003:76). The result is that Vespa owners are endorsing and

promoting the experience. Granted, verification as to whether it is Vespa Corporate writing the

blogs cannot be determined, but the effect is still noteworthy, especially if the blog is convincing

and sales have increased.

One potential segmentation approach that could be employed by Vespa is the lifestyle

attitude and behavior category, or a psychographic segmentation option. Vespa marketing could

target those individuals that wish to pursue a certain type of lifestyle and exhibit certain

behaviors associated with Vespa ownership, such as those lifestyles adverstised on the Vespa

New York boutique websites, or those in the Pacific Northwest. One way to accomplish this is

through product differentiation. Dickson and Ginter state that product differentiation is

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developed “…by offering a product that is perceived to differ from competing products on at

least one element of the vector of physical and nonphysical product characteristics” (1987:6).

V. Vespa U.S.A.’s Future: Continue with Current Success

To predict what Vespa will do in the future we should look at what they are currently

doing successfully, in terms of marketing and customer relationships. Vespa has openly stated

many of its future intentions are to take their current successes and magnify them.

Vespa U.S.A. will continue with their current, and successful, national print efforts,

integrated regional efforts, and interactive media campaign (including viral marketing). This also

includes their cross-promotional and in-store deals with brands like Coach, Target, and

Starbucks. However, executives have said they “want to more than double sales and go beyond

what we have done in terms of generating buzz” (Greenberg 2004). They are calling for kiosk-

type stands in major markets, point-of-sale audio and video Internet offerings to create messages

that are “edgy and unique, we are interested in making Vespa part of daily life” (Greenberg

2004).

They will stay with their Vespa heritage ads that convey style and sex appeal. They will

also continue to highlight their Italian brand’s chic image. Their sexy dealer ads will grow in

budget from $3 million and focus more on “a mind-set than…a demographic” (Anderson 2002).

They will continue to showcase sex appeal with words ending in “issimo, such as ‘Vroomissimo’

and ‘Sexissimo’ and barely clothed women sprawled over and around Vespas” (Anderson 2002).

However, they will stay away from over-the-top sexual accentuation, as evidenced by their

killing of their cross-promotional ad with Trojan Condoms (Halliday 2003).

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Going Forward: The Next Three Years

Vespa’s focus over the next three years will stem from their leadership’s resources. They

will expand their product distribution to include both more boutiques and more states. This

expansion will be directed towards their key target segments: baby boomers, urban users (gas

and size focus), and consumers who think of Vespa as a fashion accessory (chic). Given our

previous work, we believe they will continue to emphasize the driver’s motivation to ride as a

mindset: both the extension of themselves and the ability to transform the mundane into

adventure. Accordingly, the product accessories that accompany this ethos will continue to grow

in both breadth and depth. However, Vespa will not ignore the fuel cost sensitivity of many of its

customers. Mayor John W. Hickenlooper has proven to his city, Denver, that the need to save

energy is a primary focus of city hall. John can be seen scooting around town on a red Vespa, his

attempt to symbolically signal constituents he cares about America’s fuel problems (Washington

Post 2005).

We also believe, given our previous research, that Vespa will seek to increase

participation in Amerivespa and in doing so they will increase the size of their loyal subculture.

Their recent creation of Vespablogs.com, coupled with their posted statement “Piaggio USA

feels blogs are an ideal way to connect with Vespa brand loyalists and encourage them to

become online evangelists”, suggest they will use this new technological medium to spread their

subculture.

In the end, we believe Vespa USA will continue to leverage new “fun” colors with a

sleek and chic image, but without ignoring the urban economic appeal of size and gas mileage.

This future Vespa has hit national acclaim being recognized on CBS’s The Early Show when

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Annie Russel stated: “There was a time scooter riders were considered geeks. Now it’s

completely different.”

21

References

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Author unknown. 2005. A Mayor on a Vespa, and other ways to set energy examples, Washington Post, January 28th.

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Paiggio USA. 2005. Paggio USA helps host Vespa annual U.S. meet at http://www.vespausa.com/company on October 19.

Piaggio Sp, 2005. Piaggio Corporation:Hoover’s Basic Record at http://0-web.lexis-nexis.com.oasis.oregonstate.edu/universe/document on October 4.

Schouten, J, and J. McAlexander. 1995. Subcultures of consumption: An ethonograpy of the new bikers. Journal of Consumer Research, 22(43-61).

Segal, E. 2005. Born to be Styled, Los Angeles Times, Home Edition:E10. November 10

Tayman, J. 2004; Business 2.0: Turismo Bellissimo in The Washington Post, August 24.

Vespa Blogs on http://vespausa.com on November 10, 2005

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Vespa USA. 2005. Piaggio releases limited edition Vespa PX at http://www.vespausa.com/company/news.cfm?NID=128 on October 14.

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APPENDIX 1

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