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Harley Davidson Case Study

Essay by   •  May 15, 2011  •  Case Study  •  3,777 Words (16 Pages)  •  2,676 Views

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Table of Contents

1. Mission Statement 1

1A. Executive Summary 1

2. Situation Analysis 2

2A. Market Summary 3

2B. Market Demographics 3

2C. Geographic's 3

2D. Demographics 4

2E. Market Needs 4

3. Market Trends 6

3A. Channels 7

4. SWOT Analysis 7

4A. Competition 10

4B. Positioning 10

5. Strategy Pyramids 11

5A. Marketing Mix 11

5B. Marketing Research 13

6. Financials, Budgets, and Forecasts 14

7. Sales Forecast 14

1. Mission

It is not surprising that Harley has been around for over 100 years, all one needs to point to is their mission statement:

"We fulfill dreams through the experiences of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments."

1A. Executive Summary

Harley-Davidson, Inc. is a world-wide corporation that offers a wide variety of motorcycles. Although Harley-Davidson is extremely well known for its motorcycles, the products it offers goes far beyond that. They have a large assortment of MotorClothes apparel and accessories, and genuine motor accessories. Harley-Davidson has 595 dealerships located in various regions throughout the United States. They also have several dealerships spread out over sixty countries worldwide. With the abundance of Harley-Davidson dealerships, customers can fulfill their wants while saving time and money. "Harleys are seen as more than just motorcycles. They represent America, Hollywood and masculinity" (Winer, 2007). These impressions allow Harley riders to receive the "cool factor" which undoubtedly increases their self-esteem, while many others simply enjoy the feeling of being included in a "biker gang." Harley-Davidson believes that accessorizing is all about choices, which ultimately turns your motorcycle into a two-wheeled expression of your soul.

The motorcycle segment of Harley-Davidson includes the group of companies which do business at Harley-Davidson Motor Company (HDMC). These include Buell Motorcycle Company and MV Agusta. "The Motorcycles segment designs, manufactures and sells at wholesale primarily heavyweight, touring, custom and performance motorcycles, as well as a line of motorcycle parts, accessories, general merchandise and related services" (Harley-Davidson Inc).

"Over the years, Harley-Davidson has evolved from a motorcycle shop to a lifestyle. Touting symbols on the backs of jackets and other accessories of the American Eagle and the American Flag, Harley Davidson wants to show that they represent freedom" (Smith, 2008).

Harley-Davidson will gain market share through customer service and convenience. With new innovations and the understanding of direct competition, customer wants, and technology, Harley can incorporate customer's ideas to solely meet their needs. (Harley-Davidson, Inc.)

2. Situation Analysis

Harley-Davidson has been operating for over 100 years. A strategic marketing plan is necessary in order to increase adequate growth to gain a large amount of profitability.

Harley-Davidson responds to market needs by offering various types of motorcycles to directly meet the needs of any potential buyer, but in order to stay on top, Harley-Davidson must be able innovate as well as adapt and seek new opportunities.

"Harley-Davidson Financial Services has you covered should suddenly find yourself out of work. The Debt Protection plan will cover your motorcycle loan payments in the event of involuntary unemployment, you are unable to work due to illness or accident whether on or off the job, and may even cancel your loan should your accident become fatal" (Harley-Davidson USA).

Harley-Davidson offers a large variety of financing options. With flexible repayment options and specialized services, a Harley-Davidson dealer will customize ones financing based on their needs. The budget planner allows one to enter their monthly income and expenses and Harley dealers will help to plan a budget. Also, the payment estimator is designed so one can select a bike, choose the color and some options, and one can easily estimate the monthly payment.

2A. Market Summary

Harley-Davidson holds high levels of information considering the market and the new perceived ideal customers they wish to serve. In order to better meet the needs of the specific target markets, Harley-Davidson will alter this information and improve its services to directly satisfy customers.

The influences for Harley Davidson come from those already driving one of our motorcycles, but also our potential buyers, and those of our competitors. In order to target accordingly, we need to know what people want, which we are doing by numerous surveys, questionnaires and comparing what our competitors offer.

With horizontal integration through full merger alliances and joint ventures, in order for Harley-Davidson to survive against BMW & Honda, they need to supply diverse types of bikes with different brand images to appeal to various and changing types of customers with different and changing aspirations. Other bike companies in the US and other countries face a similar situation, and common problems and interests can be combined to offer new products with strong individual brands in order to better market Harley-Davidson bikes world-wide.

2B. Market Demographics

The profile for Harley-Davidson's customers consists of the following geographic, demographic, and behavior factors:



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