Polaris 2015 Annual Report Download - page 5

2015 POLARIS INDUSTRIES INC. ANNUAL REPORT 3
dealers. We strive to enrich our customer
relationships with sophisticated, yet simple,
tools for every interaction. Tim is elevating
the voice of the customer and improving our
ability to both tactically and strategically
win in an increasingly challenging
competitive environment.
We have seen increasing competition
in our ORV business for the past few
years, but 2015 was notable because of
the improvements we saw in the quality
and quantity of competitive side-by-side
oerings. However, the strength of our team;
our RZR, RANGER and Sportsman brands;
and our armada of vehicles prevailed, as
we again added to our No. 1 market share
position. Winning the competitive battle
is important, but as the market leader we
must also strive to grow the global O-Road
industry. With a 10percent decrease in retail
sales in the major oil-producing states and
provinces, our overall North American ORV
retail in2015 was only up 3percent. Sales
in Europe, Russia and the Middle East were
also weak, resulting in a 12percent decline
in our International ORV revenue. We have
assessed the implications of increased
competition and the slowing industry
trends that began late last year, and after
re-evaluating and refining our product and
marketing strategies for2016, we expect
modest overall ORV growth.
Proven leadership is a necessity in such
turbulent times, so when Dave Longren,
our former ORV President, announced his
intent to retire soon (more below), we were
very fortunate to have two of our most-
experienced leaders volunteer to step up to
the challenge of creating our next growth
curve. Matt Homan knows the global ORV
industry as well as anyone, and we are
excited to have him retake the reins of our
largest business. Craig Scanlon’s energy,
passion for our vehicles and will to win
makes him the perfect choice to be our
first-ever ORV Chief Retail Ocer. Matt and
Craig will build on Dave’s success, and use
our vast arsenal of tools to motivate dealers
and consumers to help us add to our global
leadership position in Powersports.
Much of our recent Powersports success
is attributable to the strong leadership
of Dave Longren, who was in charge of
ORV from 2011 until January of 2016.
Having previously served as our Chief
Technology Ocer, Dave brought a deep
technical knowledge to our largest business,
while also driving outstanding financial
improvements as he addressed new market
segments and optimized pricing. That
experience and business acumen will
serve Dave (andPolaris) well as he takes
on the critically important role of Senior
Vice President of Enterprise Cost. We have
identified five major projects that could add
materially to our 2016 plan for more than
$100million in Value Improvement Project
(VIP) savings. When we talk about an All-Out
Assault on Costs, there is no one more
qualified to lead this important battle than
Dave Longren.
One of the cost-down projects Dave will
support is a comprehensive eort to
accelerate the profitability of our Motorcycle
business. We are thrilled with the growth
and market acceptance of Indian and
Slingshot, and excited about the potential
for Victory with new bikes and “American
Muscle” brand positioning. But as we grow