Polaris 2004 Annual Report Download - page 15

2004 Annual Report 11
In 2004, the United States Department of
Defense awarded a $10 million ATV contract to
Polaris. Our military-modified ATVs inspire new
models for the civilian market. For example, the
new Sportsman MV features dual winches, steel
racks and run flat tires — just like the ATVs
being used by U.S. forces in Iraq.
The Predator 500 Troy Lee Edition was named
“Sport ATV of the Year” by The 2005 ATV Guide.
Two years ago, the publication gave the award
to the original Predator 500.
This year Polaris introduced the 440 IQ race sled
— the most sophisticated snocross snowmobile
ever built. At the Duluth National Snocross races
in November 2004, Polaris 440 IQ racers
dominated the competition with crowns in four
of six classes.
Growing by bringing
new products to market
Polaris demonstrates market
leadership when we go on the
offensive — introducing new products
that excite our riders and broaden
our competitive advantage.
Our strategy for growing sales
and market share is clear: introduce
more new products than anybody
else and make sure they are the best
vehicles on the market. It started last
year, when we celebrated our 50th
Anniversary by introducing more new
ATVs, snowmobiles and motorcycles
than ever before. That trend will
continue. Polaris is committed to
perennially storming the market with
fresh new products in every power-
sports category where we compete.
New in ATVs. Approximately 62
percent of our ATV line is new for
model year 2005, including these
two upgraded models:
• Sportsman. The Sportsman 800
Twin EFI takes our industry-first ATV
electronic fuel injection technology
a step further, with a more powerful
engine and dual exhaust. We call it
the Biggest, Baddest ATV ever,
and the editors at Field & Stream
magazine seem to agree. They
bestowed a “Best of the Best”
award on the Sportsman 800 Twin
EFI in 2004.
• Predator. A special Predator 500
Troy Lee Edition ATV — designed
in collaboration with the California
motorsports racing design shop
Troy Lee Designs — features
performance upgrades such as
close-ratio gears, Maxxis®radial
tires and aluminum shocks.
New in Snowmobiles. Dedicated
snowmobilers log hours on their sleds,
and they demand a smooth ride.
The latest Polaris models provide the
smoothest ride on snow.
• 900 Fusion & 900 RMK. Our 2005
models for trail riding and mountain
climbing, respectively, feature our
new IQ Front Suspension system —
a Polaris-exclusive design that
provides better cornering, less
bottoming and the kind of instinctive
handling that’s typically only
available on racing sleds.
New in motorcycles. Victory sales
currently account for less than
5 percent of Polaris revenue. But a
significant growth opportunity exists:
the domestic cruiser and touring
market is estimated at over $6 billion.
Victory sales grew at a healthy pace
again in 2004 — up 29 percent. We
expanded our core Victory product
line beyond the Vegas and Kingpin in
model year 2005, reaching out to
new riders with both a value and a
high-powered offering.
• 8-Ball. This model offers the distilled
essence of the Vegas. It allows
riders to buy an American-made
motorcycle at a price comparable
to many Japanese models.
• Hammer. With a bigger 100 ci/
1634cc engine and 6-speed
overdrive transmission, Hammer
is the most powerful cruiser in the
Victory line. It also sports a 250mm
rear tire — developed by Dunlop
specifically for the Hammer —
that ties into the current trend in
fat-tire motorcycles.
New in PG&A. When it comes to
boosting sales with new products,
we do not forget parts, garments and
accessories — which represents
14 percent of total company sales.
• Lock & Ride. Most riders like
using attachments on their ATV, but
they don’t like spending a half-hour
to screw them on and off. The
proprietary Polaris Lock & Ride ATV
accessory line offers windshields,
cargo boxes, gun scabbards and
more — all can be attached and
detached in seconds without tools.