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Brand audit objectives, scope, and approach

Objective of Brand Audit

Determine the positioning of Harley Davidson

Understand the strengths and weaknesses of brand Harley Davidson
Understanding customer preferences and the offering of Harley

Global Motorcycle Industry (Background about the industries)

The world motorcycle industry was worth $63.5 billion in 2010, having
recorded no yearly growth for the four preceding years, reports
MarketLine. Market growth is expected to accelerate to a yearly rate of 6%
between 2010 and 2015, to reach almost $85 billion. Overall, the
motorcycle market is characterized by a high degree of fragmentation.
The revenue of the global motorcycle manufacturing sector was $74
billion in 2011. The industrys is forecasted to grow at a CAGR of 12%
between 2011 and 2016. The manufacturing side of the motorcycle
industry is expected to generate more than $130 billion before the end of
Major players currently operating in the global motorcycle market include
Harley Davison, BMW, Honda Motorcycle & Scooter India, Hero Honda
Motors, Yamaha, Triumph, Kawasaki, Bajaj Auto and MBK.
Background about Harley Davidson
Making real dreams caused by worldwide roads by offering our customers
exceptionnal sensations. We nurture their passion for freedom so that
they can express their mind.
Providing bikes and all the world around through a faithful community
About Harley Davidson
Harley-Davidson is the leader in the global motorcycle industry, and saw
motorcycle retail sales increase 20% in the first quarter of 2012 year-onyear, with US growth reaching closer to 26%. The company is increasing
its full-year shipment guidance, expecting to ship between 245,000 to
250,000 motorcycles in 2012 to dealers and distributors throughout the
world. This increased shipment guidance is prompted by consumer
demand, and a limited production capacity for additional motorcycles in

2012. Harley-Davidson predicted it would ship 79,000 to 84,000

motorcycles in the second quarter of 2012.
Harley-Davidson is one of the strongest brands in the world with a very
high level of brand recall. Originally created to avoid bankruptcy, the
Harley-Davidson community today counts more than 1 million members
worldwide. (FOURNIER, Susan and Lee, Lara, 2009). Customers are not
only buying a motorcycle, they are buying the Harley-experience. The
typical HD-consumer is in its late 40s or older(baby boomers).
Which consumers are buying motorcycles differs strongly from brand to
brand. From a global perspective however, there are some notable
similarities between motorcycle buyers all over the world. Different
market reports from different countries mainly show the same figures
according to gender and age.Most motorcycle owners are men but the
amount of women riding a motorcycle has been growing in the past 15
years. Women now account for 21.3% of motorcycle
drivers(DATAMONITOR, 2011b). The biggest group of motorcycle drivers
can be found in the group older than 35. The percentage of drivers under
19 is also very high but this is because of the inclusion of scooters in the
statistics. These are very popular among this category and account for a
great part of the motorcycle sales in this market.
Theres a big difference between continents in the use of motorcycles.
While motorcycles in developed areas like Western Europe are mainly
used for leisure and personal transportation, they are mainly used as
working tools in Latin America. (FROST & SULLIVAN). This has an effect on
the type of motorcycles that are bought in different countries.


According to Scott (SCOTT, Missy, 2008), the typical Harley-Davidson rider
in the USA is somewhere between 30 and 40 years old and has an
average household income of $ 84.300. Nearly two-thirds of Harley-buyers
have studied at least one year after high-school and 30% of buyers have a
college degree. In its annual report, Harley-Davidson says the following
about its consumers: were number one in U.S. heavyweight market
share across a broad swath of outreach customers. We are the leader
among young adults ages 1834. Were number one with women. Number
one with Hispanic riders. Number one among African-Americans.

This consumer profile is however limited to the American market. In

developing countries, Harley-Davidsons consumer profile is different for
education and income. In India for example, the typical Harley-Davidson
buyer belongs to a higher class, is highly-educated and has one of the
highest average incomes in India. The reason for this is the high price for
the Harley bikes in these countries. (HARLEY DAVIDSON MOTOR
COMPANY, 2011)
Even countries with similar cultures as the US show significant differences.
For example, Harley-Davidson has a very low market share and is not very
popular in In the European market amongst young people. This is one of
the major weaknesses of Harley-Davidson. The company focuses too
much on the US market and is not really following consumer trends in
other markets.
Harley-Davidson has been able to dominate it's marketing environment by
placing high value on its customer's feedback and economic status. Taking
this as well as the external marketing environment with high importance
has kept Harley-Davidson relevant and a strong force in the motorcycle
industry. Harley-Davidson has been able to build a community of
enthusiasts around its brand that includes members from very diverse
groups, and with almost no advertising.
Harley Davidson prides itself on the attention and feedback it takes from
its consumers. Recently switching it's whole marketing scheme to a
method known as "Crowdsourcing" which solely relies on customer
feedback to decide its direction of marketing.
Harley-Davidson's marketing mix consists of people who enjoy to ride
motorcycles and the lifestyle that accompanies that. There is also the
people who don't ride motorcycles but enjoy wearing the gear and HarleyDavidson logo which brings in revenue for the company in high volume
like their bikes do. Harley-Davidson also created the V-Rod muscle
motorcycle to appeal to its younger market, a single model to compete
with Japanese and American muscle bikes. This has proved to be effective
targeting the young generation even using a Victoria's Secret model for
the ad campaign.
Harley-Davidson's marketing when it come's to distribution is stated
clearly on its website "Harley-Davidson's dealer's are the company's lifeline to our customers, with a wide variety of product offerings, dealer's
provide knowledge, service, and information to riders out on the road."