d. Product Portfolio Analysis
Harley-Davidson offers various products and services to its customers, which can be categorized as following:
• Motorcycles: Touring, Dyna, Softail, Sportster, and VRSC. It represented around 80% from total global revenue in during 2008. About 70% of its sales generated from US market.
• Parts and Accessories: replacement parts, and mechanical and cosmetic accessories. It represented 15.4% from total global revenue in 2008.
• General Merchandise: motorcycle riding clothes and accessories. It represented 5.6% from total global revenue in 2008.
• Licensing: allowing other manufactures to use Harley-Davidson brand name and logo on their products; such as: t-shirts, jewelry, leather goods, and toys. Revenues from it
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Some of these products and services were created to increase the awareness of its brand among its customers and non-customers, and to encourage and attract the non-riders to be future customers.
4. 3-Years Strategy
a. Screening Different Strategic Directions
According to Porter’s Generic Strategies, Harley-Davidson has a Focus-Differentiation strategy. It focuses on the heavyweight motorcycles with customers who consider their motorcycles a luxury product. In the same time, it seeks to be unique in its industry, by creating the HOG worldwide family hammering on its heritage as being symbolic of the American Dream. When one purchases a Harley-Davidson motorcycle, he becomes a part of a family of owners that rides together and parties together. In other words, Harley-Davidson is not a transportation medium, it is a lifestyle.
Based on Ansoff Matrix Analysis, the set of decisions made related to market and/or product selection can lead to the following strategic options or directions:
• Keep focusing on current markets that Harley-Davidson competes in with the current product
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o In brief, offering value-added services in Harley-Davidson current markets is crucial.
• Explore new market(s) that can accept Harley-Davidson’s current product range. o Harley-Davidson manufactures mainly five different families of motorcycles, which target different segments. New geographical markets or targeted segments can be explored against each family to check for any potential expansion.
• Develop new product(s) that can be sold in new markets that Harley-Davidson never explored. o Most Harley-Davidsons competitors are diversified in many products other than motorcycles; such as: automobiles, all-terrain vehicles, generators, marine and personal watercraft, snow blowers, and scooters are also sold under the Honda brand. o In general, manufacturing and R&D are not the key strengths of Harley-Davidson. As a result, any diversification in new product categories can add to the manufacturing complexity, which may affect the overall
The fight amongst the major players in this industry is not over price, but over capturing the market share. Since, there is no one definitive leader in the motorcycle industry on the global level, the companies tend to steal each other’s business, this makes the industry rivalry cut throat. One of the crucial factors that make this industry extremely attractive is the constant drive for innovation. Since different industry participants have different approach towards the same segment of the industry, there is a very high
Harley-Davidson is well known for its unique motorcycles. Its subsidiary, Harley-Davidson Motor Company (HDMC), manufactures five families of motorcycles, namely, Touring, Dyna, Softail, Sportster and V-Rod. These models are distinguished by their frame, engine, suspension, and other characteristics. The company shipped 233,117 motorcycles in the fiscal year ended December 2011, comprising 39.5% Touring motorcycle units, 39.2% Custom motorcycle units, and 21.3% Sportster motorcycle units.
Harley-Davidson treats the dealers not only as partners, but also as customers. Harley has developed a very effective marketing strategy, but it is the responsibility of manufacturing to produce high quality and reliable motorcycles.
Harley-Davidson, Inc. (NYSE:HOG) was founded in 1903. The home base was originally founded in and even today remains in Milwaukee Wisconsin. Harley-Davidson’s popularity grew significantly during World War I, when the U.S. infantry used 20,000 of the company’s motorcycles in its war effort (Taylor, 2010). Best recognized for its manufacturing of heavyweight motorcycles, Harley-Davidson has captured half the U.S. market and a third of the global market (Wikinvest, 2010). Harley-Davidson motorcycles are noted for their classic lines, custom paint jobs, dependability, fine craftsmanship and the Harley-Davidson signature choppy sounding engine. Most importantly, it has been
Not only does it serves as a customer relation 's device, but as a way to showcase and demonstrate new production.
Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and
The first strategy Harley-Davidson uses is customer focus. Harley-Davidson offers a wide range of products and services, from children’s’ tricycles, clothing accessories, and affordable motorcycles to more higher-ended luxury motorcycles targeting customers in all age groups. By allowing their customers to personalize and customize their motorcycles, this strategy helps build their second strategy, which is brand loyalty. Other strategies that help build brand loyalty and selling dreams are to have groups, such as the Harley Owners Group (HOG) and the Buell Riders Adventure Group (BRAG), so they can emphasize to their customers that everyone is welcome to join its large extended family for riders,. Their value is: “Tell the truth. Be fair. Keep your promises. Respect the individual. Encourage intellectual Curiosity.” (Harley-Davidson web
Milwaukee is where it all started for Harley Davidson. In 1903, William Harley Walter and Arthur Davidson created the first of millions Harley Davidson. It was one of the two major motorcycles that were able to survive the great depression. Since 1977, the only motorcycles sold to the public under the Harley-Davidson brand have been heavyweight motorcycles, with engine displacements greater than 700 cc, designed for cruising on highways. It is one of the most well known brands in the world of motorcycles and otherwise as well. Harley-Davidson maintains an enormous brand community, which keeps active through clubs, events, and a museum. The worth of Harley Davidson brand and its logo was somewhere around $40 million which was 0.8% of the
Historically Harley-Davidson to be a Niche Marketer, which is they had focused in on one particular aspect of the market. Kotler and Keller identified the following characteristics of niche marketing; customers have a distinct set of needs, they are willing to pay more to the firm that best suits their needs, it is not likely to attract competitors, gains economies through specialized products and it has a size, profit and to grow. Almost all of these hold true for the “heavyweight” segment of motor cycles that Harley-Davidson produced.
The overall intensity of rivalry in the motorcycle industry is strong, key players in this industry include the Harley Davidson, Winnebago, Polaris, Thor, Artic Cat and Marine Products. These top performers hold a high percentage of
The three statics of Harley-Davidson’s is; revenue, growth rate, and number of units that are sold. The manufacturer of the United States heavyweight motorcycle division has obtained, arrested, and achieved approximately fifty-four percent of the broad United States motorcycle exchange. Harley-Davidson has fifty-two percent share of the broad motorcycle exchange in which IBISWorld INC. has estimated that it will generate six point nine billion dollars in revenue this year, (Forbes, (2014).
The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base.
Harley-Davidson 's promotion is designed to move customers from ignorance to awareness. Harley-Davidson 's advertisements contain very little if any persuasive material on specific models or comparisons between other brands. Instead, they simply show the product in use in a typical setting. Because Harley-Davidson has built such a strong reputation over the years, much of their promotion occurs through word of mouth. At this stage in the company 's long history their main promotional goal is simply to inform customers that the company still exists.
Harley Davidson Company has a long history of building motorcycles that have worked to actually shape a part of the American culture. Its product positioning and marketing strategies have served as a prime example for any company to imitate. Harley Davidson has developed immense levels of brand loyalty over the years. However, the company has also been burdened by the recent economic downturn and now is going through something of a rebuilding phase as it tries to determine its best course forward. This analysis will conduct a SWOT assessment of Harley Davidson's current position and make recommendations on how Harley can continue to develop the next phase of its iconic American brand.
Harley Davidson been in business for over a hundred years. The company operates in several related markets. They sell motorcycles, motorcycle parts and operate a financial component. Additionally the company operates in Europe, North Africa, the Middle East and Asia. All Harley-Davidson business segments operate internationally.