HA RLE Y DA V IDS O N

CAS E A N AL YS IS
SUBMITTED BY GROUP 09:
MAITHILI JOSHI
KABERI
RISHABH
SAURABH AZGAONKAR
SHALOO MINZ
TA N YA S A X E N A
SUMAN SHARMA
 Comment on Harley-Davidson’s (HD) performance till 2006.
What prompted the appointment of mark-Hans richer as HD’s
first chief marketing officer (CMO)? What were the potential
challenges that richer could identify?
• Performance of Harley Davidson till 2006
2000s : Baby
1970s : Work force Boomer (born
were cut, quality between 1946 -
issues got 1964), the core
exacerbated during segment was aging
1950s : Harley Bike this period so much and Young Adult
Club sprung up so that Harley was buyers had 22%
across US, making referred to as share across all
the brand a cult ‘Hardly Drivable’ product

1960s : Sales grew 1980 – 1990s :

from 16 million to Bought by
30 million Executives of
Harley and Willie G
Davidson, starting
capitalizing on
design and image of
1940 and 50s

Findings from 2006 included that young adults did not like chrome, they preferred
stripped down, elemental, dark bikes
 Comment on Harley-Davidson’s (HD) performance till 2006.
What prompted the appointment of mark-Hans richer as HD’s
first chief marketing officer (CMO)? What were the potential
challenges that richer could identify?
• Challenges:

The primary focus was on the heavyweight category, which was not aligned
with the preference of Young Adults. Capture young adult buyers, without
losing the core segment which generates maximum revenue

The company’s stock price was down 20% for the year (2007) and the
macro economy seemed to be weakening every month

Identify, define and target outreach audience for the Harley brand

Global financial crisis is 1 year ahead and market has started feeling the heat
 DISCUSS THE COMPETITIVE LANDSCAPE OF HD.

 Harley Davidson’s competitors were based in

Europe and Japan
• Germany
 BMW (heavyweight and sport
bikes)
• Italy
 Ducati (heavyweight and sport
bikes)
• Japan
 Honda, Kawasaki(For young
riders), Suzuki(stylish and popular)
& Yamaha
 Offered copycat design of Harley’s
style in the cruiser space
 Low price, faster speeds, and for
some, perceived quality attracted
younger customers in the U.S
market
 Strongest global market in 2007 was in Japan
 Market leader for heavyweight bikes in Japan
 Market share in Europe is 8.2%
 Brand Buell had a larger share in Europe than
it had in U.S.
 Identify the growth opportunities for HD in 2007. You may use
Ansoff framework to discuss the growth opportunities.

Market penetration
Existing

HD is holding its clients for hefty Product Development

weighted classification yet needs
to offer less expensive and
relatable brand picture for young
riders
Market
In 2007, HD offered products in
both heavyweight and sport bike
(Buell) categories

Market Development
HD was weaker in Europe Diversification
New

market. None
It had large opportunities in
China, India, Brazil, Russia

Existing New
Product
 Drawing insights from their market research and internal
company knowledge, what marketing decisions were taken? Had
you been the CMO, what would you have done to set the future path
of HD.
 Harley Davidson hired a Chief Marketing Officer:
• They wanted to target a new generation of riders
• Focused to have a more diverse customer base
• They also focused on the retention of the current customers
 To regain the market share the executives in 1981 designed new models based on the look and feel
of the bikes from 1940’s and 1950’s
 To target the Outreach audiences the company took initiatives like HD garage parties, small
women-only events, Rider’s edge- a new rider training program etc.
• These initiatives aimed at holding the core customer base
 The company conducted a study of Young Adults
• This was to identify the barriers to buy HD
 Harley-Davidson Styling had already created some bikes in the portfolio that reflected the rand
attributes
• The recently introduced Nightster, Street Bob, and the older Night Train

Future path of HD
• Introduce new models to target the young customers
– Buell bikes were lighter, faster, sportier, and cheaper than HD’s heavyweight bikes, hence more
attractive to younger customers
• Relevant marketing campaigns should be launched for specific target customers to increase awareness
– Women and younger riders are increasingly becoming interested in bikes
CRITICALLY ANALYSE THE DARK CUSTOM INITIATIVE IN THE BACKDROP
OF BRAND HIERARCHY STRATEGIES.

A per a 2006 European study, it was found that

young riders didn’t like chrome in bikes

They were called “Black World” because of

their preferred appearance of bikes and
rebellious spirit

Young adults wanted stripped down, elemental

and dark bikes as compared to chrome cruisers

HD has two brands: First whose primary focus

was on heavyweight category and second was
Buell whose primary focus was on sport bikes
category
According to the brand hierarchy model, HD would be classified as
house of brands because the two brands were separate and had
nothing in common.

Harley Davidson
Corporate Brand Motor Company

Harley Davidson- Buell- Sport

Family Brand Heavyweight Bikes
Bikes

Individual Brand Softail Dyna Sportser V-Rod

Cross Bones Night Rod

Street Bob Nightster
Special
Modifier Level- Dark
Custom Bikes

Night Train Iron 883

THANK YOU