Marketing Case Study On Harley Davidson Marketing Essay

Harley-Davidson is the parent company for the group of companies including Harley-Davidson Motor Company ( HDMC ) , Buell Motorcycle Company ( Buell ) , MV Agusta Group and Harley-Davidson Financial Services ( HDFS ) . The company offers more than 35 theoretical accounts of touring and usage Harleys through a world-wide web of more than 1,600 traders, spread across six continents. The company besides manufactures bikes under the trade name Buell and MV Agusta. Harley-Davidson besides involves in offering insurance, funding and episode gross revenues services to its clients and traders.

Harley-Davidson, Inc. Key Recent Developments

In the twelvemonth Jan 22, 2010 Harley-Davidson Unveils New Sportster subsequently on

Jan 18, 2010 Harley-Davidson displayed new Features at MCN London Show.

In the twelvemonth Dec 03, 2009 Harley-Davidson restructure bike Operations in New York

Year 2009was known for Harley-Davidson to opens new Store in Michigan, in Aug 20, 2009 Harley-Davidson lookouts four sites for new mill

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The first motor motorcycle was built by William Harley and Arthur Davidson in 1903 in their early mid-twentiess since so this motor company have seen many booby traps. There have been many ups and downs, but it seems they have been turn outing their mission statement which is “ We ride with our clients and use this deep connexion in every market we serve to make superior value for all of our stakeholders. ”

In 1901 William Harley designed design of the motorcycle subsequently in 1903 William and Arthur Davidson made the first bike as a racing motorcycle. In the whole twelvemonth they merely made one motorcycle. In 1904 unfastened thru motorcycle for concern intent.

In 1910 the saloon and shield logo was foremost used as a hallmark, which was patent at US patent office one twelvemonth subsequently. In 1911 they started utilizing f caput engine. In 1912 accoutrements and trim parts section was formed and building started of the mill. Company formed rushing section 1913. In 1915 they entered in rushing auto events, company designed 3 cogwheel motorcycle. First bike magazine were published in the universe in 1917 during this twelvemonth Harley Davidson produced and sold 1/3 of its production to US military. In 1918 half of the production of motorcycles was sold to the US. In 1919, 37 inch three-dimensional inch twin cylinder theoretical account were introduced which was popular overseas, design was alone. In the twelvemonth 1920 Harley Davidson ‘s was the biggest motor rhythm manufacturer in the universe, bikes were purchased from over 2000 traders and in 67 states. In the twelvemonth 1922 they invented foremost 74 three-dimensional V twin stoping on the JD and FD theoretical accounts, they were now making franchise in 67 states. Year 1925 was known for Harley Davidson ‘s gas armored combat vehicle theoretical accounts in distinguishable form, Joe Petrail begins rushing for Harley Davidson ‘s and he became one of the celebrated soil path race driver, in the twelvemonth 1926 individual cylinder bikes were once more sold for the first clip since the twelvemonth the twelvemonth 1928 first two Cam engine were made and available at that clip motorcycle was able to acquire the velocity of 85-100mph. They besides invented front brake on the motorcycle in the same twelvemonth. In the twelvemonth 1929 they invented 45 three-dimensional inch V twin engine and it proved really dependable that they stared making fluctuations in the theoretical accounts in the late 1972.

Harley Davidson holds certain values to make certain competency with their competitors.Which are as follows.

State the Truth.

Be Fair.

Keep Your Promises.

Respect the Individual.

Promote Intellectual Curiosity.

Strategic capablenesss can be defined as Set ofA capacities, A resources, andA skillsA thatA createA aA long-termA competitory advantageA for anA organisation.

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Harley Davidson was a large trade name name in malice of that when they had to confront the competition of Kawasaki, Honda and Yamaha they ended up in bankruptcy. Porter ( 1985 ) sees competition in an industry by five different beginnings of forces. One of the of import factors is menace of new entryway which was ab initio neglected by Harley Davidson motor company. Harley ‘s executive squad knew that Nipponese are far in front of the quality direction so they made a program to see nearby Honda works. Barker J ( 1936 ) said that it is really of import to cognize how your rival is acting in corporate market in order to derive advantage over you. Same logic is applied by the Harleys executive, when they felt demand for competition analysis. They found out that Nipponese are using the construct of Joseph and Jurans total quality direction which was rejected by Americans makers as a consequence they offered this doctrine to Nipponese. ( Pearce, J. & A ; Robinson, R. 2005 )

Harleys besides implemented merely in clip stock list ( JIT stock list ) which is really effectual manner of cost salvaging its chief aim is to accomplish extinguish merchandise stock lists from supply concatenation, this system besides work on waste decrease and batch size decrease. as a consequence they merely had to sell 35000 motorcycles than 53000 motorcycles in order to make breakeven point. They besides made some particular agreement with US authorities and requested to increase import duties to 40 % from 4 % , this explains the scheme capableness ( Eigenhuis. A, 2007 ) .

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Harley Davidson ‘s chief users ever have been male audience ( 91 % ) .Stakeholders can be defined as any group or single that can impact or is affected by public presentation of the administration. ( Freeman 1987 ) .Individual or group who depend on the administration to carry through their ain ends and on whom in bend, the administration depends ( Johnson & A ; schools 1999 ) .

The house is a system of stakeholders runing within the larger system of the host society that provides the necessary legal and market substructure for the house activities ( Clarkson, 1994 ) . ( Kaplan. R 2001 ) researched three facet of in pull offing stakeholders. First is to cognize your stakeholders second is to cognize what you are suppose to present from the position of the stakeholder and 3rd is to Keep your stakeholders accountable to the worlds of the undertaking.

The current concern environment for Harley Davidson

For deducing the concern environment PESTLE ANALYSIS is shown below for Harley Davidson ( Lynch, R.2009 )

Harley Davidson is really celebrated and good known motor company in the universe.

They have introduced a academy which involves learning how to sit motorcycles for non motorcycle drivers.

The academy is called riders edge which introduced more than 1000 rockerss to feature in twelvemonth 2000

The mean purchaser of Harley Davidson is mid elderly male peculiarly in their mid mid-fortiess, holding mean household income of $ 78600.

Rockerss who have Harley Davidson 30 % of them hold a grade.

And merely 9 % of Harley Davidson US retail bikes drivers are adult females

Harley Davidson have strong repetition concern s in 45 % of motorcyclist who have Harley Davidson they have purchased Harley Davidson before

Harley Davidson is considered as a national icon for the whole state.

They besides have chances coming from southern Asiatic states like India and Chinas but their operating state of affairss are non certain.

Brazilian assembly decided to cut down on the import revenue enhancement which is assisting them to distribute their concern outside the US.

They are utilizing 5 engine as the chief maker of the spare parts which is eco friendly by breathing less harmful emanations.

Presently Harley Davidson motor company confronting some jobs like in Asiatic states like India where they have 60 % duties and assorted other revenue enhancements which is doing Indian Harley Davidson lovers to purchase the merchandise at really high rate. And everyone can non afford the motorcycle other than rich people.

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Harley Davidson has alone noise which is louder than other motorcycles and emanations are non up to the degree of some states across the Earth.

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Porter ‘s five forces

Harmonizing to ( Campbell.D,2002 ) explains the porters five forces. It is a model for the industry analysis and concern scheme development. They consist of those forces near to a company that affect its ability to function its clients and do a net income. A alteration in any of the forces usually, requires a concern unit to re-assess the market topographic point given the overall alteration in industry information.

No affair how difficult company attempts, if it fails to suit into the kineticss of the industry, ultimate success may non be achieved. Porter ( 1985 ) sees competition in an industry being governed by five sets of forces. When porter studied pharmaceuticals and air hose industry he discovered that authorities ordinances and deregulatings were of import factors.

Harley Davidson had powerful competitory scheme in footings of utilizing the intangible resource and alone resources which the rivals were non able to make it. Harley Davidson had implemented Merely In Time as sustainable competitory advantage. The production procedure was wholly changed and the interruption even unit was brought down by about 50 % . Harley Davidson believed that clients were no more seated ducks so they did n’t believe in commercials as other clients. To maintain their advertisement cost low and create trade name value and consciousness they started the “ Super Ride ” run which attracted 40,000 clients.

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Internal competition

Yamaha, Suzuki and Honda these Nipponese companies entered into the production of heavy weight motorcycles.

Rivals like Yamaha ; they have their chief gross merely from motor rhythms.

One more American motorcycle company who is Polaris they are the manufacturer of the motorcycle who have cheaper monetary value than Harley Davidson.

Suzuki and Kawasaki had strategic confederation between so which resulted in development of both the company in merchandise development, design, technology, and fabrication of the motorcycles.

Honda ; who are the chief rivals of Harley Davidson they eat up the Harley Davidson ‘s market portion.

Menace of new entryway

Motor industry is really immense and huge industry and it requires really high investing but in US it has already reached the adulthood phase so that there are merely 4 major motor motorcycle company. The graduated table of economic system is really low in this sector.

There might be some little scale manufacturers but they produce in really low measure so that they cant be menace for Harley Davidson.

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Dickering power of providers

They have broad panel of provider available so any provider is intended to increase the monetary value they can exchange to any other provider.

Steel, electrical equipment and transportation of end merchandise are usually comes under the providers of Harley Davidson, and theses industries are yet non saturated so still tonss of options available for them if they wish to exchange provider.

Dickering power of clients

Harley Davidson has its alone image in the universe they have limited traders around the universe so it ca n’t impact the fiscal place of the Harley Davidson ‘s. But it is really of import for them to maintain in head that clients have tonss of other options available ; companies like Bajaj have launched motorcycles like retaliator and Kawasaki enticer which is similar in design to Harley Davidson.

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Menace of permutation

As we have spoken Kawasaki and Bajaj motor motorcycle company have launched look alike of Harley Davidson motorcycles

But as we all know Harley Davidson ‘s motorcycles are celebrated for its singularity they have less menace of permutation.

Passenger autos, athleticss motorcycle and scooter motorcycle are the chief replacement of Harley Davidson.

Ansoff matrix

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Ansoff Matrix consist of 4 schemes which are really indispensable to spread out the concern in order to last in the competition, it is a concern growing scheme. It helps to deduce the growing of merchandise and market.

Market incursion

It is a growing scheme in which concern focal points on selling bing merchandise to bing market. It helps to increase the current market portion and and current merchandises. This usually includes schemes like pricing, advertisement, gross revenues publicity and forces selling

Market incursion besides helps to protect administration of growing markets.harley Davidson have been really successful at this scheme because they have been really successful to retain their current client as they have 45 % clients who give them repetition concern

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Market development

This is a scheme where company introduced its merchandise to a wholly to a new market. There can be different ways of accessing this scheme in footings of acquiring new geographical location, exporting to other state. Harley Davidson have been really successful in this scheme as they are exporting their merchandise to different states, besides demand for Harley Davidson ‘s motorcycles is really high in other states. Australia and other south Pacific states are the most importers of these motorcycles.

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Merchandise development

Merchandise development is a scheme where company keeps the same market and they try to make different in the instance of Harley Davidson because the tough expressions of motorcycle it was popular among the tough cats but subsequently on they target US ground forces.

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Diversification this scheme is applicable when company is be aftering to present new merchandise in new market, in instance of Harley Davidson they started trading and started bring forthing leather jackets shirts, key concatenation, caps and chapeaus. hypertext transfer protocol: // asst=MotorClothes/Youth & A ; locale=en_US & A ; bmLocale=en_US

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Harley Davidson is already established company. They may come in in new section of market but giving low monetary value and low benefits it will non fit up with the trade name image therefore this company is century old it can travel out for vernal clients with voguish motorcycles but there pricing scheme has to be such which will non harm the trade name as the clients targeted in this section will be monetary value oriented. Harley Davidson had been in monetary value struggle with Nipponese maker. Earlier Harley was a in-between category motorcycle but it is presently a high terminal motorcycle so to take down monetary value and minimize borders would travel against the trade name value of Harley Davidson. ( W. Davidson 2000 ) .

With high benefits and low monetary value, Harley Davidson can see intercrossed option as it would offer an betterment to its merchandises, this can give them opportunity of competitory advantage. Harley Davidson best competitory scheme is to group formation since last many old ages, but to segregate they need to affect immature clients as Harley is really old trade name. As the groups value this service they need to affect immature clients.

Harmonizing to ( Johnson.G, 1998 ) there are three chief ways of scheme to prolong competitory advantage and they are priced based schemes, distinction and lock in priced based schemes. An organisation prosecuting low monetary value schemes may be prepared to accept the decreased border. An organisation may be prepared to prolong and win monetary value war with rivals. It will be the company short or midterm losingss to drive out rivals for long term, for illustration supermarkets as clients are traveling for on-line monetary value list so traveling to buy. The company should be focused on market sections.

Harley Davidson is trade name of high value so it plans a scheme to take down its monetary values so it can travel against its trade name value. If the monetary values fall down anyone can afford Harley and the ego regard of having a Harley would travel. The company follows Just in Time for its production so they can accomplish their breakeven point in 35000 units. If they lower the monetary value the net income border will be disturbed.

Harmonizing to ( Johnson, 1998 ) prolonging distinction based advantage is really of import for company to accomplish competitory advantage. Author says that create troubles of imitation of schemes. Writer explains that the resources of the company are tradable like the skilled labour which can travel to rivals. In intangible assets such as trade name, image or repute are hard for a rival to obtain.

Harley Davidson had schemes to utilize its intangible resources as its chief selling scheme. They started doing group of Harley proprietors, selling the experience and giving a manner beyond after gross revenues service. These schemes were really hard for Nipponese companies to copy. The company is really good sustainable in distinction as it has been utilizing intangible resources to advance than tangibles.

Harmonizing to ( Johnson.G,1998 ) suggest the thought of lock in where an organisation achieves a proprietary place in its industry ; it becomes an industry criterion. Author gives an illustration that IBM, Microsoft all became industry criterions but they were non needfully the best merchandises. Lock in agencies that other concerns have to conform to or associate to that criterion in order to thrive.

Harley Davidson are in Lock In place as suggested by ( Johnson.G,1998 ) . Harley Davidson has achieved proprietary place in the motor motorcycle sector. The schemes which Harley should implement such schemes that sustain their place as a owner.

SWOT analysis

It is really indispensable for any house to prosecute more chances and to cognize their approaching menaces ; it gives a better opportunity to develop competitory advantage. To develop this scheme any house should see swot matrix.

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The European demand for Harley Davidson is the highest in the international market and represents the individual largest bike market in the universe.

Womans and younger riders are increasing going interested in motorcycles.

The international heavy weight market is turning and is now larger than US heavyweight market.

Market portion increasing in Europe and Asia for last two old ages.

Increasing demand in US markets for motorcycles.

Customers value quality parts.

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Harley ‘s on-going capacity restrains a deficit supply and a loss in domestic market portion in recent old ages.

Harley ‘s mean purchasing age is 42 old ages old and increasing.

The European brotherhoods bikes noise criterions are more rigorous than those of environmental base

Some rivals of Harley Davidson have larger fiscal and selling resources and they are more diversified.

Environmental protection jurisprudence.

Buell division needs to go on to bring forth a quality bike under Harley ‘s trade name name.

When seting all these schemes into action Harley Davidson should concentrate upon pull offing alteration because harmonizing to ( Paton.R. 2008 ) Management and alteration are the same ; alteration is inventible factor of any journey in company ‘s life.

Harmonizing to Stacey, R. ( 2003 ) alteration has been studied and researched for many old ages. Doctrines, theories and theoretical accounts and techniques abound ; all purpose, with assorted grades of credibleness and success, to present sustainable organisational alteration.

Harmonizing to Barney, J. & A ; Hesterly, W. ( 2006 ) reappraisal of both theoretical and practitioner research theoretical accounts related to alter hold concluded that organisational alteration literature and the underpinning research continue to be extremely antiphonal to the demands of direction and besides the workplace and market.

Following are the factors why organisations decide to present alteration in there organisation Harmonizing to ( Paton R. 2008 ) : -Changes in engineering used, client outlooks or gustatory sensations, Changes as consequence of competition, a consequence of authorities statute law, a consequence of changes in the economic system, at place or abroad, communications media, supply concatenation, in distribution concatenation.

Harmonizing to ( Buchanan, 2006 ) the concluding cause of alteration in organisation is where the organisation tries to be in front of the game by being proactive. For illustration where the

Organization tries to expect jobs in the market topographic point or contradict the impact of world-wide recession on its ain concern, proactive alteration is taking topographic point.

Harmonizing to ( Buchanan, 2006 ) Harley Davidson is been making good in all the states that are besides cognizant of what is traveling on all over the universe. They might be sing of conveying more alteration in the public presentation because of the recession in the Us economic system, conveying more alteration might do them less disbursal in processs, engineering, supply and concatenation of distribution. They were merely aiming limited market ab initio when stared but as of now they have been aiming about every demographic group of rockerss, they have been utilizing the JIT ( merely in clip ) procedure which is doing them maximal net income.