Transcript The Model: What can be learned? • MOMO had it’s genesis in a very specific performance/ motorsports accessory arena that, over the course.

The
Model:
What can be learned?
• MOMO had it’s genesis in a very specific performance/ motorsports accessory arena that, over the course of
the ‘80s-’90s, has been impacted by Safety Regulations.
• MOMO, like other Italian firms such as Nardi, was well known for it’s steering wheels. MOMO steering
wheels were a popular aftermarket upgrade for sports cars and sport sedans through the ‘70s. As
steering wheel-mounted Airbags became more common, this aftermarket started to dry up.
• MOMO is now a brand that represents an active, motorsports-oriented lifestyle through a wide
array of products.
• RECARO, likewise, is a brand that, based on highly visible success in ‘80s (oftentimes associated with the
growth of the BMW aura as the “Ultimate Driving Machine”), continues to have awareness as a high-end
dynamic motorsports brand.
• RECARO has focused on seating, an area in the car that has been/ will be affected by emerging
Safety regulations. The performance seat aftermarket is likely to dry up, just as the steering wheel
aftermarket dried up.
• RECARO has not evolved into a brand (in the U.S.) that can both benefit from it’s strong
consumer awareness/ image and remain insulated from regulatory effects on the aftermarket.
This document will take a look at MOMO’s structure, products, how it is presented in the marketplace
and how RECARO might relate to MOMO.
Pete Montero, 11.2000
The
Initiative
In 1963, Racing Driver Gianpero Moretti produces a special steering wheel for his race car. This steering wheel attracts the attention of John Surtees,
Ferrari team driver, who has it fitted to his team car. Surtees went on to win the World Championship with a MOMO Steering Wheel.
Since then, MOMO has gone on to promote itself at a number of the world’s top motorsports venues and (from the MOMO website) become “recognized
as a leader in prestigious automotive accessories”.
Twenty years ago, MOMODesign was founded, offering a world-wide design consulting service and actively collaborating with licensees in the
development of it’s product lines. Product lines extended beyond the traditionally automotive arena. Designers and architects are enlisted from around
world to provide a global spirit to the company’s philosophy. MOMO touts it’s Services and Processes, in addition to the products that are the result.
SERVICES
PROCESS
Product Design
Initial Input
Engineering Design
Concept Development
Packaging
Design
Graphic Design
Approval
Exhibit Design
Product Development
Design Presentation
Final Output
Technical Drawings
Brief
Research:
•Market analysis Brainstorm;
•Study of Components/ Placement/ Material
•Aesthetics and Feasibility Development;
•Specific Factors
Prototypes
From MOMODesign Website
Pete Montero, 11.2000
“Many aspects must be evaluated in the process of designing a successful product. Our process takes us from the
brief; to the initial design research and concept development which includes market analysis, the study of components,
placement and materials; to the design development phase where aesthetics, feasibility, and specific factors are taken
into consideration. After presenting the designs with the client, the MOMODesign team continues with the product
development including 3D modeling and technical drawings to end up with a working prototype.”
The
Initiative
DESIGN
LICENSED PRODUCTS
Currently, MOMODesign works with a number of different licensees in
different industries. Quality, Motivation and Technology are cited as driving
factors in choosing licensees.
MOMODesign provides licensees with support from it’s own Research Centre,
guaranteeing solutions are appropriate to MOMO’s brand image.
MOMODesign’s aim is to continue to build MOMO’s brand image throughout the
world. MOMODesign is attempting do this with the combined collaboration with all of
it’s licensees as well as with the establishment of exclusive boutique shop and
“shop-in-shop” franchises.
From MOMODesign Website
Pete Montero, 11.2000
The
Initiative
DESIGN
From MOMODesign Website
Pete Montero, 11.2000
The
Initiative
From MOMODesign Website
From beginnings in Steering Wheels, Shift Knobs and Racing Seats, MOMO has
become three brands producing/ marketing everything from personal fashionoriented merchandise to performance accessories for the car.
NonAutomotive
Merchandise: Snowboards, Timepieces,
Glasses, Motorcycle Apparel, Sportswear,
Stereo Speakers
Performance
Original Business: Steering Wheels, Shift Knobs,
Alloy Wheels
Fashion
Automotive
Pete Montero, 11.2000
The
Performance Equipment:
Seats, Brake Pads, Strut Bars, Pedals, Sill Plates, Floormats
Initiative
TUNING
The
Initiative
MOMO is a brand that “drips” Latin emotion. In one sense, it is an extension of an Italian automotive culture that is extremely emotional/
emotive. On the other hand, RECARO is an extension of a Teutonic automotive culture that is equally- Performance oriented (arguably, even
more Performance oriented, in quantitative terms) but much more logical.
In simplistic terms, it could be argued that MOMO is to RECARO what the FIAT Group is to the VOLKSWAGEN Group
(Alfa Romeo-Audi, especially).
Though the Volkswagen brand is being moved upward, Audi is still
positioned as the Performance standard-bearer (at least among
VW Group’s mass-market brands), having dominated LeMansclass endurance racing the last year and a half (and, before that,
being one half of the famed German Silver Arrow grand prix
machine of the ‘30s in the form of the Ferdinand Porschedesigned Auto Union GP cars).
Performance
Footnote:
The main (non-German) competition to the Auto Union cars
throughout the ‘30s came from the Alfa Romeo team, the Scuderia
Ferrari (Enzo Ferrari’s team, pre-dating the Ferrari brand).
Logical
Emotional
Of the VW Group brands, SEAT is the most emotional, targeted
specifically at FIAT. Ironically enough, SEAT’s genesis was as
Spanish Government-owned concern manufacturing FIATs under
license. VW bought SEAT in the mid ‘80s.
LEGEND
= VW Group Brand
Basic Transportation
= FIAT Group Brand
Pete Montero, 11.2000
The
Initiative
Where are the Opportunities for RECARO?
High Price
Racegear, incl. Clothes, Seats, etc.
Everything from Auto Performance Parts (incl. Seats) to
Personal Fashion accessories (such as watches).
•Line-up to include Child Safety Seats, Snowboards,
Motorcycle helmets.
Potential Growth as “Umbrella” brand for a line-up of upscale products
Wide Range
of Accessories
Seats Only
GRANT
Steering Wheels, Shift Knobs, Seat Covers, etc.
Low Price
Pete Montero, 11.2000
The
Initiative
Where are the Opportunities for RECARO?
RECARO Volume Trend (Aftermarket vs. OEM)
Volume
Time
The Seat Aftermarket in the U.S. is likely to continue to shrink, while OE potential is likely to grow.
•
The growing number of Seat-mounted Supplemental Restraint Systems (Airbags, Pretensioners,
etc.) will make it increasingly difficult for customers to retro-fit an aftermarket seat.
•
OE Seats have improved to such an extent that customers often don’t consider an aftermarket
seat to be a vital modification, especially considering the trade-offs.
•
OE Seats in Upscale vehicles have become increasingly feature-intensive (with such features as
Heat/ Ventilation, Multiple Power Adjustments, Memory System, etc.).
•
In most cases, there is a trade-off between these premium features and the values associated
with a RECARO aftermarket seat.
Pete Montero, 11.2000
The
Initiative
What is RECARO Positioning?
Europe
N. America
Quality
Safety
Health
Performance
Prestige
Quality
Performance
Prestige
RECARO’s positioning in Europe is based on a diverse seat
product line-up. This has been built around a wide variety of
characteristics.
- OE Seats
•High Visibility vehicles (such as Ferrari, etc.)
- Aftermarket
•Performance/ Racing Seats
•ErgoMed Seats
•Lifestyle Seats
- Child Safety Seats
- Commercial Vehicle Seats
- Airliner Seats
RECARO awareness is high especially because of this wide
variety of products.
Pete Montero, 11.2000
Why is RECARO’s positioning in the North America limited?
RECARO’s positioning in North America (as evidenced, for example
by the RECARO-NAO website) focuses on automotive applications.
Products ignored on website:
• ErgoMed Seats;
• Child Safety Seats;
• Airliner Seats
Why hasn’t RECARO been more successful in N. America?
• Overly focused on Performance, ignoring the concerns of the
mass market in Safety and Health issues;
• Focused more on Aftermarket in North America;
• Safety regulations make aftermarket seatsa difficult sell;
• OE seats are getting better/ higher quality;
• Poor promotion in North America.
The
Initiative
What should North American Strategy be for RECARO?
Current
Quality
Motorsports
Prestige
Future
Safety
Health
• Expand potential market beyond narrow band of extreme Performance enthusiasts;
• Safety and Health issues are valued by wider range of potential buyers.
• Create higher image of fine-tuned precision equipment;
• Capture “professional grade” consumer that might most value engineering of RECARO
products.
• Leverage brand beyond potentially limited Seating business;
• Witness MOMO brand growth beyond increasingly limited steering wheel aftermarket.
Pete Montero, 11.2000
The
Initiative
SPG Strategy for RECARO Brand (beyond Seats)
Generation 2
Generation 1
Core Seat
Modular Seat
Foam & Trim Modules
RECARO-NAO
Seats
Aftermarket
Electronic Modules
Pete Montero, 11.2000
Non-Seat
Accessories
Safety- & Ergorelated Accessories
Personal Accessories
The
Initiative