The video presents a Harley riding family as they venture from California to Milwaukee. The film presents footage of these popular machines, along with a look at the various types of people who consider themselves motorcycle enthusiasts. Having Embedded Into films, movies, and American culture, the high quality motorbikes became American legends ranking Harley Davidson Motor Cycles Company brand, logo and name among the world’s leading companies. In incense Harley Davidson is the Spirit of America.
But Harley Davidson Motor Cycles Company offered a unique product during this period of 100 years such that there were high barriers for entry for other competitors Into he high quality motorbikes that It offered to Its most popular market, the American people.
Financial difficulties in the sass’s led to the parent company, MAP putting the motorcycle division up for sale. Lack of buyers, a group of Harley managers bought out the company and rescued it with a business turnaround that included brand extensions into licensed goods, such as apparel and related accessories.
Now a publicly owned company, Harley has scored double-digit growth for eighteen consecutive years. Harley transformed Itself Into a strong marketing company with a Men From Hell, who meet up with new friends along their route is mentioned in the documentary. Michael Lighter, a photographer who has taken motorcycle images. Later, a large group of Harley riders hit an art gallery to check out and chat about Lighter’s work. Another big segment of the documentary is devoted to women of all ages who have moved on from riding on the back of the seat on to their own Harley, and the brand has responded by making bikes optimized for women.
Finally, towards the end of the video, it tells more about the Hell’s Angels and the charity work they do. There’s also more about some of the famed yearly rides. It is very interesting about their marketing management to make Harley Davidson becomes the spirit of America. Case analysis The Harley-Davidson Corporation has been dominating the motorcycle industry for many decades. Today, it continues to have a strong presence in the American market.
The mission statement of the company is “To fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public and expanding line of motorcycles and branded products and services in selected market segments. ” Harley-Davidson, Inc. Is the parent company for the group of companies doing equines as Harley-Davidson Motor Company, Bull Motorcycle Company and Harley- Davidson Financial Services. Harley-Davidson Motor Company manufactures five families of motorcycles: Supporters 8, Dana Glide, Softball 8, Touring and VRRP.
Bull Motorcycles Company produces sport motorcycles, including four big-twin CB models, and the single-cylinder Bull Blast 8. Bull also offers a line of motorcycles parts, accessories, apparel and general merchandise. Harley-Davidson Financial Services provide wholesale and retail financing and insurance pogroms primarily to Harley- Davidson/Bull dealers and customers. This case could be analysis by using: S. W. O. T. Analysts Strengths According to the video, Harley-Davidson celebrated its 100-year anniversary. Over the past century, the company has created a strong brand image and a loyal customer base.
It maintains a close relationship with its customers through a variety of program, such as Hog Owners Group (H. O. G. ), product offerings and events such as Daytona, motor shows, and rallies. In addition, Harley-Davidson has a strong financial position, excellent supply chain management, and a superior product line, which are enabled through creative engineering technology and design. Due to the decline in the market share to Japanese companies in the seventies, Harley-Davidson phased out its weak models, becoming more selective in targeting a specific customer segment and limiting sales and promotion.
This strategy created a niche market for their bikes in which the company enjoys a strong position today. Weaknesses First, the company is in its maturity stage and, unless it manages to protect its position, it will be faced with the decline period again. Secondly, the company’s products are expensive, which limits them to a specific niche in the market and makes it difficult to grow their customer base. They also have a wait-list for certain products, which can create a substitute effect. Lastly, they are lacking a strong presence in Europe.
Opportunity There are various opportunities in the market for Harley-Davidson today, especially with the introduction of the new V-Rod motorcycle. The company has the innovator status advantage in the Performance Cruiser class market segment. They are expanding their partnerships with various European manufacturers, which should increase the presence of Harley-Davidson products in Europe. The corporation is well positioned to attract younger customers, and the company has plenty of room for Roth due to the high demands for its products.
Threats Harley-Davidson is facing rigorous competition from Japanese manufacturers, specifically Honda and Yamaha. Yamaha targets the low-end market by providing a variety of products at affordable costs. Yamahas core competencies are small engines, electronic control, and fiberglass reinforced plastic. Yamaha is currently focusing on increasing its global competitive position. Honda is one of Harley- Davidson strongest competitors and is responsible for one-third of all motorcycle sales in the U. S. It has a strong financial base and reliable products.
It continues to improve the performance of its motorcycles by focusing on fuel efficiency and lower emissions. In addition, Honda is beginning to increase its performance in the market by introducing information technology tools through its dealerships. These tools help increase dealer performance and create a more positive experience for the customer. The Marketing Mix In order to overcome the problems that Harley Davidson faced in the early sass and help the company regain its market share, a restructuring plan was implemented.
Terrain developed an innovative system known as Circles of Management for ringing both workers and dealers together and involving them in taking key decisions relating to the company. A new marketing philosophy was developed based on the desires of the customers and Harley made efforts to position motorcycles as a lifestyle product. Product It was only grey color motorcycles that was offered to its customers and provided three basic styles at the time when Harley was formed. However, the company realized that in order to survive, it had to offer more choice to its customers.
Harley realized that it would not be possible to compete with the Japanese manufacturers on the pricing front. This was because manufacturers like Honda not only manufactured a low-priced high-quality product, but also spent heavily on advertising their products. Place Harley started selling its motorcycles through its dealers in 1904. The company’s first dealer was CHI Lang of Chicago, Illinois (Refer to Exhibit IV for the number of H-Do’s full-line dealer outlets in the US). All the dealers were independent individuals with a business orientation.
Promotion Over the decades, Harley had adopted several strategies to promote its motorcycle brand. The products were sold to retail customers mainly through dealer promotions, customer events, and advertising through national television, print, radio, direct mailings, and through advertising on the Internet. Recommendations Harley buyers said, “When they are buying a Harley, they are buying an image and a lifestyle first and a motorcycle second. ” But, Harley-Davidson has to do more to ensure another 100 years of success. I would recommend that Harley do a few things differently.
First, they could have researched the literature on what types of problems mechanistic manufacturing organizations face when they try to implement an ERP system in a highly inflexible environment. There was enough research and case analysis available to do this. While they were clearly aware of potential change resistance and the need to get all stakeholders involved, the amount of time their search and selection process required was ridiculous in today’s business environment. We speculate that the sheer demand and high prices of their product allowed them to wallow in their inefficiencies a few more years before they had to bite the bullet.
Second, obtaining the advice of experienced software and supply chain consultants earlier in the process probably could have saved some time and created a defined focus. Often, managers use the discipline and recommendations of insulates to reinforce the need for organizational change. With the purchasing process out of control, they could have brought in some purchasing expertise to clean up some of the mess before selecting a software system to help organize the process. Third, we questioned the research methods and bias of the data.
However, if Harley eventually got what they wanted and it turned out to be a success for them, then perhaps their methods were valid. Harley buyers is 46, compared with an industry average of 38. This could have a damaging affect on consumer’s perception of a Harley being the old guys bike. Harley-Davidson produces only heavyweight motorcycles that are categorized into touring and cruiser motorcycles. To be successful here, Harley needs to provide smaller, easier to handle, comfortable, and good quality bikes to build up brand loyalty.
The European market has great potential for Harley-Davidson since Europeans have higher disposable income and enjoy a higher standard of living. To succeed in this market, Harley-Davidson would have to modify their products to meet local needs, expand its distribution networks, and create strong customer service. Nowadays, as the feelings of American patriotism are so strong, Harley-Davidson deeds to continue to strengthen its positioning strategy by building on the “Own an American Icon” slogan.
In summary, Harley-Davidson should capitalize on its current reputation and success by rapidly increasing demand, and by expanding its product line to reach new consumer markets, especially overseas. It needs to target a younger, technologically conscious and affluent market segment in order to increase its share of the market. 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. They also need to set an appropriate pricing strategy, in order to appeal to a wider market segment.
Conclusion A feeling of independent, individualism, and freedom is what the Harley-Davidson sells. Theses strong emotional connections have made Harley-Davidson ownership much more of a lifestyle than merely a product consumption experience. To support that lifestyle, the company recognizes that its most important marketing tools is the network of individuals who ride Harley. Harley has adopted those management techniques and building a solid base between the management and the Unions/ employees made it possible for Harley-Davidson to improve its management processes.
The realization of the importance of customer feedback led Harley to develop new marketing techniques. We can clearly see the impact Harvey’s improved manufacturing process, which consisted of: SIT, E’, and SOC had on their continuously improving environment. The degree of relationship, loyalty, connection with consumers, the development of brand and product type and innovate new products regularly make Harley Davidson a strong brand, and never be afraid of any competitors.
By the Journey and what they have managed and run their business sakes me no wonder why Harley Davidson has become a true American icon. Questions and Answer marketing success? Answer Harley Davidson has considered itself more than motorcycles, but they are legends. It is an American icon brand. When concerning most motorcycle owners have purchased their bikes as a second vehicle, using them more during weekends and free time instead of during the workweek. This implies that the motorcycles serve for recreational riding purposes.
In the United States, Harley-Davidson has had much success because of responding the market trends and tastes people enjoy. Moreover, Harley-Davidson has position itself in the motorcycle industry is differentiate itself from its competitors by offering motorcycles that have more power, custom accessories, and carry the Harley-Davidson brand name and logo. Creating a sense of not only a motorcycle for a sport traveling, but also a chance for riders to meeting, riding, and sharing trip and vacation together. More important is building a strong sense of unity and harmony among them too.
There are some key factors of Harley Davidson market success include having a strong and adaptable brand image, avian a strong marketing effort (both domestically and globally), and having a strong network of dealers. Harley-Davidson has found ways to turn these factors into strengths while pursuing a strategy using focused differentiation to sell its products. Harley-Davidson has created a network among its clients known as the Harley Owners Groups (HOG) which allows for people in certain geographic regions who own Harley-Davidson motorcycles to socialize or ride with other owners. 2.
How does Harley Davidson build long-term customer relationships? As the matter of fact that Harley-Davidson produced the best quality motorcycle, customer satisfaction is their motto and its customers can experience the taste of reality of motorcycle dreams by relaying their satisfaction on them. Harley-Davidson is dedicated to use the advanced technology to produce the most superior motorcycle in domestic and international markets. The Harley has a strategy to build strong relationships with customers and dealers with varieties of activities like events, rallies, road-trip, festival or parade continuously.
So the people both domestic and worldwide increase their recognition and making Harley Davidson brand loyalty to become a legend and a dream of many people who would like to own. Moreover, when a person buys a Harley-Davidson motorcycle, they receive a free I-year membership to the Harley Owners Group (HOG), which was developed in 1983 as a program to keep people active with their Harley especially keeps the company close to its customer. These are two major building blocks for long-term customer relationships.
One is customer satisfaction and the other is adding customer value. First of all, Harley Davidson builds long term customer relationships by all kind of to customers. Harley Davidson has also embedded the American culture of customers and which help creating loyal customers. . What is Harley Davidson value proposition? Harley-Davidson stands for independence, freedom, individuality, expressing one’s self, adventure on the open road, and experiencing life to its fullest. Harley-Davidson has a value mentally greater than the value to applications.
Harley-Davidson has a unique and illustrates the lifestyle of the American people. It is a dream of many people who have owned or ridden caused lot of pride. Creating a common experience between the brand and the consumer over 100 years of Harley-Davidson, so the customers caused relationship and the value of Harley-Davidson together. Individuality, expressing one’s self, adventure on the open road, and experiencing life to its fullest. This is what people are buying when they buy a Harley. 4.
Relate the concept of customer equity to Harley-Davidson. How does Harley Davidson strategy focus on the right relationships with the right customers? Harley-Davidson made a detailed plan to analyze customers’ need and their consumption potential. Developing club marketing to keep long-term customer relation is the base of right relation and right customer. Harley-Davidson understands the power of a deep connection to a client is a true brand. They benefit room a long cycle life and indispensable to bring revenue and competitive advantage.
So the thing that makes them different from one another. The belief that the consumer owns the brand, not the company has any idea on this. Consumers have become the people we need to build relationships. Harley Davidson strategy focuses on the right relationships with the right customers by gathering meaningful customer insights, utilizing new marketing technology and has kept in connection with customers to asses their needs so that Harley Davidson can building a strong and attractive brand and a product that can satisfy these needs.