HARLEY DAVIDSON 6 MONTHs STRATEGY

Devyani Singh

Harley Davidson is launching its 12 models in India, come April. The brand is not doing well
in many countries, including United States.

United States accounts for 70 to 80% sales of Harley Davidson, in spite of the brand being
present in 70 countries. In many ways the bike stands for the ‘all American’ lifestyle which is
the brand’s biggest strength as well as it’s biggest weakness. To prove successful in India, the
brand must work consistently to fuse the American point of view with the India aspirations.

Think ‘Glocal’ is the modern mantra for success.

TARGET AUDIENCE IN INDIA AND BRAND STATEGIES FOR FIRST SIX MONTHS

Harley Davidson is a premier brand of Motorcycles and portrays the classic image of a
leisure biker who rides for fun and not to get from point A to B. The Harley Davidson biker is
a man’s man, masculine and strong. He is also a man of means and is financially well off. He
has exquisite tastes and demands the best and does not mind paying more for quality. Harley
Davidson stands for freedom from boredom, many men who lead rather mundane lives as
doctors; dentists etc escape to a life of ‘Rock and roll’ fantasy with their Harley Davidson.

The 170-year old company is the latest of the world’s leading motorcycle brands eyeing its
share of the Indian bike market, which is the second largest market for two-wheelers after
China.

Being an iconic and powerful brand, positioned in the niche segment, it is expected that the
Harleys, as the bikes are popularly known, will appeal to rich urban bikers. The company
expects India to be its biggest market in Asia within the next 10 years.
In India too Harley Davidson must first run an awareness campaign about what the particular
brand and the bikes stand for. Though Harley Davidson is a well known brand but most of the
information so far has been targeted towards the west. Harley Davidson must run campaigns
specifically targeting the Indian men of influence. BTL activities such as ‘Saturday Biker’s
meet,’ ‘Biker trips to remote and exotic places like Ladakh’ etc

Direct Advertising for a brand like Harley Davidson might actually dilute the brand image as
people might start taking the brand as yet another in the queue.

Other brands such as Yamaha and Suzuki have already launched bikes upwards of 12 lakhs in
the market. Youngsters (15 to 25) may prefer a Yamaha or a Suzuki as these brands are
trendier while Harley Davidson is a uber classic brand. To counter competition Harley
Davidson must also devise strategies to attract the younger crowd rather than only focusing
on middle age high income group.

Harley Davidson must also circulate information (on internet, print and television) about the
different models and how is that they differ from each other. Just as cell phone consumers
hunt for information on the latest gadgets and the latest technology, bike fanatics like to delve
deep in the technology and the workings of the bikes. Workshops on Harley Davidson bikes
will attract many interested souls, many of whom would prove to be converts.

Another very important question is whether Harley Davidson should open a manufacturing
unit in India to reassemble parts. This will bring down the cost of the Bike by almost 50%

Instead of paying about 80% as import tax, the consumer will have to pay only 30% of the
taxes. However, the brand must stand wary of the fact that pulling down costs too much
might end up labelling the brand as ‘cheap,’ and would surely eat into it’s exclusivity factor.

Harley Davidson has also entered into negotiations with ICICI BANK to grant special loans
for the bikes. ICICI Bank has signed a MOU with Harley-Davidson India to provide finance
to options for its perspective customers.
ICICI Bank will provide loans to customers for purchasing Harley-Davidson motorcycles in
India, at an interest rate of 11% and for up to five years. This will make the bikes even cost
effective for the masses.
The brand must decide on it’s policies clearly. It must look towards promoting the brand
without diluting the brand. One of the brands USP’s is it’s exclusivity and the brand must
defend it.
If the brand plans to position different models for different segments of the society, based on
demographics or psychographics, then the relevant information must be circulated
extensively through the media.
The brand strategies should remain the same for the first and next six months, albeit a few
changes, to create a strong and lasting brand presence in India.