This action might not be possible to undo. Are you sure you want to continue?
• It has approximately 70% market share regarding the heavy weight motorcycle market. • It has its operation in manufacturing motorcycles, and it also operates in providing financial services. • The only American brand for heavy weight motorcycle manufacturers. • It has a strong brand name and is well established in the mind of the consumer with the image of ‘freedom & strength’. • BRAG (Buell Riders Adventure Group), formed to endorse the brand and involve customers to tap their loyalty level. • Motorcycles customization makes up a major amount of revenue for Harley Davidson. • Excellent relationship with the supplier, due to which integrity of the work and cost effectiveness is achieved without expensing out the quality. • Strong image regarding the good-will factor (The firm got its employees to join in with communities to give a helping hand). • Strong and long lasting relationship with the employees. • The firm supports BCNS (Breast Cancer Network of Strength). • It also supports the MDA (Muscular Dystrophy Association) and it has in many ways aided the association regarding it research and development by providing financial resources. • Strong marketing and distribution channel in the U.S. • Enlisted in Fortune 500. • Customer loyalty foremost strength of the firm (Once a customer purchases a bike, the jacket, bandanas, etc. become a part of him).
• Price charged is quite high. • Losing market share continuously, especially in the European market. • Analyzing the future need of producing heavyweight bikes is weak, due to which the required production amount is not met. • Poor marketing techniques which is not attracting new customers in the international market. • Many people also fear of being categorized as ‘hooligans’ in the society if they started riding bikes.
• The demand for Harley Davidson is the highest in Europe regarding the international market. • They must market their products more competitively, especially in the Europe market. • India is a big and untapped market for motorcycle as well. • Female and teenagers are showing more inclination towards riding bikes. • International market for bikes is much larger than the U.S. market.
Service and key suppliers. bike is a more economical way of travelling. • Increased standards in the European market.com/essay. which would be favourable for Harley. The functions represented within the PDC include Styling. Styling and Developmental Purchasing groups in a centralized location to improve the product development process. Sales. Homologation.• Customer value parts in the international market. it is obvious that more competition may be involved. Engineering. Marketing.php?t=30955 Product offering Dedicated as the Willie G. especially the ones who are already in the market making automobiles. Information Services. References: http://www. Desert Proving Grounds and Florida Evaluation Center. The PDC also operates the following sites: Commerce Drive Facility. • The average buying age according to a research is 42 years old and increasing. • Buell division should continue under Harley’s umbrella. Threats: • Capacity restraints and supply shortage has anticipated loss in the recent years. this 370. Finance. Davidson Product Development Center (PDC). testing. Term Paper on Harley Davidson Posted by admin as Example papers Example Term Paper on Harley Davidson . Manufacturing. Purchasing. • Increased environmental regulations.com http://www. • Some of the competitors of the firm are using more resources in marketing their product line (bikes) and it is a threat as they can shift their risk factor because of having diversified product line. • Due the low cost of making a motor bike and the high profit margin involved. The employees located at the PDC are responsible for new product development. styling and developmental purchasing. Product Liability. The PDC was built to bring together the Original Equipment (OE) Engineering. Harley can exploit this opportunity because of the thinking of the customer that at that given situation. • Even at regions where the economy is at a low level.harley-davidson. Talladega Test Facility.echeat.000 square-foot facility opened its doors for operation in March 1997.
Dyna Glide. They are expanding their partnerships with various European manufacturers.The Harley-Davidson Corporation has been dominating the motorcycle industry for many decades. Buell Motorcycles Company produces sport motorcycles. they are lacking a strong presence in Europe. and increase of 40. including four big-twin XB models. Below is a comparison of net revenue of Harley-Davidson and its top competitors: Revenue Growth Yamaha 8453.1M 21. and a superior product line.S. WEAKNESSES The Harley-Davidson company has several weaknesses. accessories. it will be faced with the decline period again. This strategy created a niche market for their bikes in which the company enjoys a strong position today. In addition.1%. Inc. the company is in its maturity stage and. which limits them to a specific niche in the market and makes it difficult to grow their customer base. It maintains a close relationship with its customers through a variety of program. Honda is beginning to increase its performance in the market by introducing information technology tools through its dealerships.4% Harley-Davidson. a $217. is the parent company for the group of companies doing business as Harley-Davidson Motor Company. The mission statement of the company is “To fulfill dreams through the experience of motorcycling. excellent supply chain management.2% .). and fiberglass reinforced plastic. the company has created a strong brand image and a loyal customer base. Secondly. 409. Today. especially with the introduction of the new V-Rod motorcycle. ANALYSIS STRENGTHS This year.2 million. such as Hog Owners Group (H. it is in tight competition with Honda and Yamaha. It continues to improve the performance of its motorcycles by focusing on fuel efficiency and lower emissions. FINANCIAL POSITION Harley-Davidson currently holds a strong position in the market.8 million (21. and rallies. The corporation is well positioned to attract younger customers. Harley-Davidson has a strong financial position. the company’s products are expensive.000 20. In addition. They also have a wait-list for certain products.3 million in the second quarter of 2002. Softail ®. specifically Honda and Yamaha. which are enabled through creative engineering technology and design. becoming more selective in targeting a specific customer segment and limiting sales and promotion.T. S. THREATS Harley-Davidson is facing rigorous competition from Japanese manufacturers.” Harley-Davidson. electronic control. unless it manages to protect its position. it continues to have a strong presence in the American market. Net income for the second quarter of 2003 was $202.6% $192M H-D VROS $17.76M For the quarter ended June 29. OPPORTUNITIES There are various opportunities in the market for Harley-Davidson today. It has a strong financial base and reliable products. These tools help increase dealer performance and create a more positive experience for the customer. by providing to motorcyclists and to the general public and expanding line of motorcycles and branded products and services in selected market segments. compared to $144. Yamaha targets the low-end market by providing a variety of products at affordable costs.8% increase) over the same period last year.6% Honda 540M 3. Harley-Davidson Financial Services provides wholesale and retail financing and insurance pogroms primarily to Harley-Davidson/Buell dealers and customers. Inc.G. motor shows. Harley-Davidson Motor Company manufactures five families of motorcycles: Sportster ®. and the company has plenty of room for growth due to the high demands for its products. product offerings and events such as Daytona.000 29. which should increase the presence of Harley-Davidson products in Europe. Buell Motorcycle Company and Harley-Davidson Financial Services. Touring and VRSC. and the single-cylinder Buell Blast ®. Harley-Davidson celebrated its 100-year anniversary.O. which can create a substitute effect. Buell also offers a line of motorcycles parts. Lastly.000 22% $186M Yamaha Road Star $12. as shown in the table below comparing a mid-priced motorcycle from each line: 2003 Potential Competitor MSRP Market Share Revenue Honda VTX $13. Honda is one of Harley-Davidson’s strongest competitors and is responsible for one-third of all motorcycle sales in the U. However. Over the past century. First. apparel and general merchandise.W. Due to the decline in the market share to Japanese companies in the seventies.6 $2. The company has the innovator status advantage in the Performance Cruiser class market segment. Yamaha’s core competencies are small engines.22 billion.O. 2003. Yamaha is currently focusing on increasing its global competitive position. Harley-Davidson phased out its weak models. consolidated net revenue totaled $1.8M 18.
they are notorious for low quality service. Aging baby boomers form Harley-Davidson’s customer base. Harley-Davidson has to do more to ensure another 100 years of success.6 The Problems In the year 1969. However. compared with an industry average of 38. It needs to target a younger. Harley-Davidson’s emphasis is good quality products and after sales service. This is a market segment that is growing at a fast rate. comfortable. Harley-Davidson needs to continue to strengthen its positioning strategy by building on the “Own an American Icon” slogan. there are three main geographic markets that comprise the bulk of motorcycle sales.co. expand its distribution networks. and Europe. the production of motorcycles increased by more than 300 percent to 14. Japanese manufacturers began flooding the market with high-quality.000 motorcycles per annum.” But. Buell Motorsports.5 percent of Harley’s revenue comes from outside the United States. http://www. H-D was taken over by the American Machine and Foundry (AMF).RECOMMENDATIONS Tom Condor. To succeed in this market. Edwards & Sons. Harley-Davidson produces only heavyweight motorcycles (with engine displacements of 750cc or greater) that are categorized into touring and cruiser motorcycles. Inc. makes sports bikes. Only Nine percent of Harley owners are women. These are North America (US and Canada account for 60% of the market). Only 16. especially overseas. Coupled with the competition from the Japanese companies brought H-D to the verge of . During this period. Harley needs to provide smaller. low-priced light to medium-weight motorcycles in the 1970s at a time when H-D was manufacturing mainly heavy-weight motorcycles. They also need to set an appropriate pricing strategy. “When they’re buying a Harley. Harley-Davidson’s subsidiary. easier to handle. but it only accounted for 4 percent of Harley’s bike shipments last year. The European market has great potential for Harley-Davidson since Europeans have higher disposable income and enjoy a higher standard of living. brokerage firm. N The median age of Harley buyers is 46. Harley-Davidson should capitalize on its current reputation and success by rapidly increasing demand. says of Harley buyers. Harley-Davidson would have to modify their products to meet local needs. but they need to focus more activities toward reaching out to new. The company is well-positioned to attract younger customers and they have plenty of room for growth due to the high demands for its products. In summary. and by expanding its product line to reach new consumer markets. the quality of the motorcycles was one aspect which was totally ignored. Harley-Davidson needs to continue to give attention to their classical product line that has made them successful.google.G. Today. Adding to H-D's problems. Asia. in order to appeal to a wider market segment. an industry analyst with A. These qualities could be used to build brand loyalty. Although the Japanese producers control the largest share of the world market. This could have a damaging affect on consumer’s perception of a Harley being the old guy’s bike. younger customers. The company earned a bad name for poor quality products. technologically conscious and affluent market segment in order to increase its share of the market. and create strong customer service. as the feelings of American patriotism are so strong. Although motorcycles are sold internationally. they’re buying an image and a lifestyle first and a motorcycle second.in/search?hl=en&biw=1440&bih=803&q=harley+davidson+report&oq=harley+da vidson+rep&aq=9&aqi=g10&aql=&gs_sm=c&gs_upl=18782l31957l0l23l13l1l0l0l1l593l3846l4-1. and good quality bikes to build up brand loyalty. To be successful here.
it had to offer its customers more choice.. A new marketing philosophy was developed based on the desires of the customers and H-D made efforts to position motorcycles as a lifestyle product. He adds that the test ride program is really helping to open people's eyes http://www. The company's first dealer was CH Lang of Chicago.com/doc/12517953/HarleyDavidson-Strategic-Analysis . Victory Motorcycles is growing at close to ten times the industry rate. This was because manufacturers like Honda not only manufactured a low-priced high-quality product..it's something we've known for a long time . However. Pricing H-D realized that it would not be possible for it to compete with the Japanese manufacturers on the pricing front. The Marketing Mix In order to overcome the problems that H-D faced in the early 1980s and help the company regain its market share... Vice President of Victory Motorcycles and International Operations for Polaris Industries.collapse. Illinois (Refer to Exhibit IV for the number of H-D's full-line dealer outlets in the US).. radio. Marketplace Competition: J.scribd. direct mailings.D. Distribution H-D started selling its motorcycles through its dealers in 1904... The products of H-D were sold to retail customers mainly through dealer promotions.. customer events. and advertising through national television. H-D had adopted several strategies to promote its motorcycle brand. All the dealers were independent individuals with a business orientation." said Mark Blackwell. and through advertising on the Internet. but also spent heavily on advertising their products. Power and Associates (2006) reveals that. Black well goes on to state that more consumers desire an American heavyweight cruiser that has a more modern design and function. Teerlink developed an innovative system known as Circles of Management for bringing both workers and dealers together and involving them in taking key decisions relating to the company. Product At the time when H-D was formed.. in its ninth model year.. print.. a restructuring plan was implemented. the company realized that in order to survive..and we're happy this information is finally public. it offered only grey colored motorcycle to its customers and provided three basic styles. Promotion Over the decades. "People who choose to ride our bikes love them . Victory is the motorcycle division of Polaris Industries that is more commonly known for its ATV’s and snowmobiles.
 Decreased U.  Retail sales decreased by 8. Harley's past growth and continued success is closely tied to its customers brand loyalty.3% with European sales increasing by 22.3 million for the first quarter of 2011.S.6 percent for this past quarter as compared to 20. with retail sales in the united states decreasing by 11. and offers loans to buyers. sells motorcycle parts and accessories. however. revenue decreased by 1. Revenue for the fourth quarter.5%.S.4 percent increase from the fourth quarter of 2009. operates retail motorcycle dealerships. rather than price. Company Overview Business and Financial Metrics Q1 FY 2011 Quarterly Earnings Summary Harley Davidson announces a 73. and giving people credit to buy Harleys. totaling $119.1 billion. Despite brand loyalty. market and a third of the global market. Similarly.938 in year ago results.7 percent and international sales decreasing by 1. Harley Davidson sells motorcycles directly.5% increase in revenue.  As a luxury good.Harley-Davidson (NYSE: HOG) is the largest manufacturer of heavyweight motorcycles in the world by market share.5% for the quarter when compared to the previous year. Specifically. which keeps margins high.5% increase in income in year-ago comparisons. About 15% of Harley's business used to be writing loans to its motorcycle buyers. Increases in income were driven by a 1. the company had to shut down and consolidate factories in 2009 due to the effects of the recession and the fall of the U. decreased by 0. as opposed to 34.4% for the quarter. Harley competes primarily on design and quality.5% for FY2010 when compared to retail sales in FY2009. Harley is arguably the only company whose customers have been known to regularly tattoo its trademark on their bodies. Business Segments Harley has two main businesses: selling Harleys. Housing Market.481 from 35. a 26.22 billion for Q1 FY 2011.  International sales overall increased by 11.6% for the 2010 fiscal year.9% to 53.1 percent. gross margin was 29. Harley Davidson's market share decreased by 1. Total revenue from motorcycle sales increased by 2. sales drove these figures. FY 2010 Annual Earnings Summary Harley Davidson announced a 1 percent decrease in retail sales of Harley motorcycles for the fourth quarter of 2010 when compared to the fourth quarter of 2009. retail sales increased by 3.7%.S.2 percent for the quarter whereas international sales decreased by 2.2 percent to $3.14 billion. For the full year.9 percent.8 million. the average Harley customer is an upper-class 47-year-old white male. totaling $1. increased to $697. with the majority of increased sales coming from Europe. The company's finance arm has since collapsed.S. totaling $1. . Despite this rebellious image. capturing half the U. Shipments also decreased by 5. sells motorcycle gear and general merchandise. and has been getting older at a rate of 6 months every year for the last 20 years. Sales in the U.  Shipments of HarleyDavidson motorcycles increased to 44.5% in 2008.3 percent in the fourth quarter of 2009. Similarly.  gross margin during 2009 was 31%.
Royalty revenues from licensing.2 45. durability and quality. windshields. The Company manufactures five families of motorcycles: Touring.6 37.7% 2008 479. U.8 218. Softail. The Company’s Harley-Davidson engines range in displacement size from 883cc’s to 1803cc’s. toys and numerous other products. which are generally equipped with fairings. were $38. the Company continues to expand these activities in international markets. General Merchandise (6.1 251.7 12% 387. jewelry. Although the majority of licensing activity occurs in the U. The touring segment of the heavyweight market was pioneered by Harley-Davidson and includes the Harley-Davidson Touring family of motorcycles.S.S.9% of 2009 revenue) 2008 389.7 41. Dyna.3 million in 2009. and VRSC.. included in Motorcycles segment net revenue.Motorcycles (75% of 2009 revenue) The primary business of the Motorcycles segment is to design and manufacture premium motorcycles for the heavyweight market and sell them at wholesale.1 10. Harley-Davidson branded motorcycle products emphasize traditional styling. .6% of 2009 revenue) General Merchandise includes revenue from MotorClothes apparel and accessories. small leather goods. design simplicity.9 38. Heavyweight Motorcycle Registration Data (in thousands) 2007 Total Market New Registrations Harley-Davidson New Registrations Harley-Davidson Registrations as a Percentage of Total 516.5% 2009 304 162 53. vehicle and vehicle accessories. The Company’s licensed products include t-shirts.3% European Heavyweight Motorcycle Registration Data (in thousands) 2007 Total Market New Registrations Harley-Davidson New Registrations Harley-Davidson Registrations as a Percentage of Total Parts & Accessories (17.6% 2009 313.7 10% Parts and Accessories (P&A) products are comprised of replacement parts (Genuine Motor Parts) and mechanical and cosmetic accessories (Genuine Motor Accessories). including three-wheeled motorcycles.4 48. saddlebags and/or Tour Pak luggage carriers. Sportster.
S.  . Dollar is the world's most trusted currency). and bought out the Italian MV Agusta company which makes premium light-weight bikes in 2008. while Japan accounts for 13%.In 2008.  Trends and Forces An Aging Customer Base Limits Consumer Base for Harley Davidson's Products Many students find the following to be helpful when writing papers.000 square foot facility houses the Harley-Davidson Museum and Archives. On October 15. helped by a heavily weakening dollar. a fast bike producer. This could be due to Canada’s exposure to the United States Market. Harley-Davidson announced its intent to divest MV Agusta and that it would exit from the Buell product line. and is now 48 years old. 2009. in 1998. took less gas. To address this trend. retail store and special event space.7%. introduced the unconventional V-Rod in 2002. Younger generations have a taste that errs towards smaller. However. world sales have not been affected nearly as much as North American either due to premium brand recognition (in the case of Asia) or the depreciation of the US Dollar (Europe). café. or to hedge against the fluctuation of global currency (the U. Europe accounts for about 50% of international sales. the Company opened the Harley-Davidson Museum in Milwaukee. The 130. which saw a 26% decline. and Harley gets hurt.S. cheaper Japanese bikes. GM did not just collapse because of high pension obligations. Its cars did not sell well. or approximately 32% of net revenue of the Motorcycles segment.38 billion. The "American-made" Premium Negatively Affects Consumer Perceptions Some say the collapse of General Motors (GMGMQ) was the end of an era for American manufacturers. whereas Canada saw a decline of 36. Harley-Davidson has decided that this strategy does not fit well with its brand image. the dollar goes up. Harley will need to attract younger buyers to maintain its long-term market share. The Museum builds and strengthens bonds between riders and the Company and enhances the brand among the public at large. while not alienating its core customer. In 2004. Canada accounts for about 15%. a restaurant. The Strength of the US Dollar Abroad Impacts Earnings Harley Davidson is increasingly reliant on international sales. only 18% of the company’s sales were international. during 2009. When people buy dollars. International Sales The Company’s revenue from the sale of motorcycles and related products to independent dealers and distributors located outside of the United States was approximately $1. Wisconsin. when the dollar weakens against the Euro and the Yen.  Because Harley incurs its production costs in the United States. and went faster. Demand in Japan and the rest of Asia declined only about 7% in the past year. goods. The children of Baby Boomers generally do not want huge bikes that drive most of Harley's sales. Asian competitors were making cheaper cars that broke less. especially in Europe. This figure had moved to 32% by 2009. Overall. it benefits People tend to buy dollars to buy U. Harley bought out Buell. Harley Davidson’s average customer has been getting 6 months older for the past 20 years.
7% in 2007. Kawasaki Heavy Industries (KWHIY): Kawasaki is a global manufacturer of transportation equipment and industrial goods. such as Kawasaki-brand motorcycles and personal watercraft. Honda and Kawasakis compete head-to-head with Harleys on technical specifications. Suzuki operates in four business segments. Suzuki Motor (SZKMF): a Japan-based manufacturing company. First of all. as well as the manufacture of parts for two-wheel vehicles and the sale of two-wheel vehicles in domestic and overseas markets.8% in 2005 to 10.As an increasing number of American factories go overseas to reduce expenses and do not see a decline in quality. their brand image. and range of manufacturing equipment and systems.7% in 2005. and personal watercraft. boats. the company sells motorcycles in many other markets worldwide. The Company has 141 subsidiaries and 37 associated companies. While the United States is HOG's most important market. where the company has grown market share from 9. outboard motors. custom American chopper producers such as Big Dog Motorcycles and American IronHorse actually deliver the promise of an All-American bike that is more powerful and customized than almost anything out there. and Canada where HOG had a 39. cool retro-"Easy-Rider" culture could fade out of style along with corresponding demand for Harley's. KHI manufactures ships. The Two-wheel Vehicle segment is engaged in the manufacture of two-wheel vehicles.S. Harley has a dominant worldwide market share of 33% in what is a growing industry.  Comparison to Competitors Major Competitors Harley-Davidson maintains a large margin in its dominance in the U. Honda is the world's fifth largest automaker and largest motorcycle producer by FY2009 sales. gas turbine power generators. The "American-made" premium is more nostalgic at this point than anything else. Heavyweight Motorcycle market as compared to its major competitors. rolling stock. Even Harley imports some Japanese parts due to their higher quality. Worldwide. Harley-Davidson's main competitors include: Honda Motor Company (HMC): headquartered in Japan. KHI also produces consumer products. environmental and industrial plants. It also produces many other motorized vehicles such as all-terrain vehicles.0% market share for 2007. Yamaha Motor (YAMHF): Yamaha Motor is the world's second largest producer of motorcycles (after Honda). up from 32. snowmobiles. .  Harley is able to charge premium prices for their motorcycles primarily because of The question is: can a brand built on an increasingly distant past survive the future? Harley faces two threats with its reliance on its brand image. aircraft and jet engines. Secondly. The two most important are Europe.
2010. and the planned elimination of nearly 25% of its total workforce (around 3. sites to accomplish this. The fall in value is believed to be connected to the 66% drop in the company profits in two quarters of the previous year.34 billion in 2009. the value of the Harley-Davidson brand fell by 43% to $4. 2010 that it would remain in Wisconsin.S.Financial crisis According to Interbrand. . The company announced on September 14. Harley-Davidson stated that they must cut $54 million in manufacturing costs from its production facilities in Wisconsin. On April 29. which began in early 2009 and involved the closing of two factories. The announcement came in the wake of a massive company-wide restructuring. and that they would explore alternate U. one distribution center.500 employees).
scribd.http://www.scribd.com/doc/35297986/Harley-Davidson-marketing-strategy http://www.com/doc/52228183/HARLEY-DAVIDSON-final-ppt .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.