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    Harley Davidson: Rejuvenating An Iconic Brand

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    ali
    The document provides an overview of Harley-Davidson's history, products, sales, customers and competitors. Some key points: - Founded in 1903, Harley-Davidson dominated the motorcycle market until facing competition from Japanese manufacturers in the 1960s. - Its core customers are married males in their mid-40s with a median household income of $84,300. Only 12% of sales are to women. - Top competitors include Honda, Yamaha and Kawasaki which have larger global market shares. - Harley aims to attract more younger adult buyers but the average age of its customer base remains over 45.

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    © All Rights Reserved
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    Harley Davidson: Rejuvenating An Iconic Brand

    Uploaded by

    ali
    254 views26 pages
    The document provides an overview of Harley-Davidson's history, products, sales, customers and competitors. Some key points: - Founded in 1903, Harley-Davidson dominated the motorcycle market until facing competition from Japanese manufacturers in the 1960s. - Its core customers are married males in their mid-40s with a median household income of $84,300. Only 12% of sales are to women. - Top competitors include Honda, Yamaha and Kawasaki which have larger global market shares. - Harley aims to attract more younger adult buyers but the average age of its customer base remains over 45.

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    Harley Davidson

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    The document provides an overview of Harley-Davidson's history, products, sales, customers and competitors. Some key points: - Founded in 1903, Harley-Davidson dominated the motorcycle market until facing competition from Japanese manufacturers in the 1960s. - Its core customers are married males in their mid-40s with a median household income of $84,300. Only 12% of sales are to women. - Top competitors include Honda, Yamaha and Kawasaki which have larger global market shares. - Harley aims to attract more younger adult buyers but the average age of its customer base remains over 45.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    254 views26 pages

    Harley Davidson: Rejuvenating An Iconic Brand

    Uploaded by

    ali
    The document provides an overview of Harley-Davidson's history, products, sales, customers and competitors. Some key points: - Founded in 1903, Harley-Davidson dominated the motorcycle market until facing competition from Japanese manufacturers in the 1960s. - Its core customers are married males in their mid-40s with a median household income of $84,300. Only 12% of sales are to women. - Top competitors include Honda, Yamaha and Kawasaki which have larger global market shares. - Harley aims to attract more younger adult buyers but the average age of its customer base remains over 45.

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    You are on page 1of 26

    HARLEY

    DAVIDSON
    REJUVENATING AN ICONIC BRAND
    INTRODUCTION
    One of the world’s best-known brands
    Why did such a strong brand suddenly decide it needed a CMO?

    2
    COMPANY HISTORY

    • Founded the Harley-Davidson Motor


    Company in 1903.
    • Motorcycles aimed at leisure, sport
    racing, police forces, delivery services,
    and the military.
    • World War II, cheap Harley-Davidson
    surplus military motorcycles became a
    platform for “bobbers” .
    • The Booze fighters and The
    Galloping Goose Motorcycle Club
    formed.
    • The Hell’s Angels transformed to
    criminal gangs.

    3
    MARKET COMPETITION
    • 1959 to 1965, Harley-Davidson sales
    grew from $16 million to nearly $30
    million.
    • Honda motorcycle sales increased from
    $500,000 to $77 million, shattering
    Harley-Davidson’s market share.
    • In 1969, AMF bought Harley-Davidson
    • In 1981 purchased the Harley-Davidson
    motorcycle business from AMF.
    • In 1986, Harley-Davidson became
    publicly held.

    44
    DEMAND & MOTORCYCLE MARKET

    DEMAND MOTORCYCLE MARKET


    • The 1980s and 1990s, American • 2 types: heavyweight bikes and sport bikes.
    Baby Boomers buy hundreds of • Heavy weights were ideal for touring and
    cruising.
    thousands of Harley-Davidson
    motorcycles to fulfill dreams. • Sport bikes were designed for speed and
    racing.
    • Paying over the list price Four segments:

    • Wait more than year for a new • standard


    bike. • performance
    • custom
    • touring

    5
    SALES
    • THE 2007 WORLDWIDE RETAIL SALES OF DECREASED 1.8%
    COMPARED TO 2006.

    • THE DECREASE WAS DRIVEN PRIMARILY BY A 6.2% DROP IN


    HARLEY-DAVIDSON DEALER RETAIL SALES IN THE UNITED
    STATES.

    • INTERNATIONAL RETAIL SALES MOTORCYCLES IN 2007 WERE


    UP 14% OVER 2006. ON AN INDUSTRY-WIDE BASIS IN 2007,

    • THE HEAVYWEIGHT PORTION OF THE MARKET WAS DOWN 5% IN


    THE US BUT GREW 5.4% IN EUROPE COMPARED TO 2006. 6
    PRODUCTS
    Five categories of Dream Bikes
    • Sportster
    • Dyna
    • VRSC
    • Softail
    • Touring

    7
    DISTRIBUTION

    • Independently owned full-service dealerships


    • 684 US dealerships
    • 104 Secondary retail outlets
    • 68 alternative retail outlets
    • 12 seasonal retail outlets
    • 80% of the U.S. dealerships sold Harley-Davidson
    motorcycles exclusively.
    • Alternative and seasonal retail outlets were not
    authorized to sale new motorcycle.

    8
    CORE CUSTOMERS

    • Median income $84300


    • USA median income $52700
    • 30% of customers had a college
    degree or one year education
    beyond high school
    • 12% sales were to the female
    customers.
    • 22% share in young adults in
    2007
    • Motorcycle events like
    rallies,rides. 9
    BUELL
    • Buell was founded by ex-Harley
    engineer Erik Buell in 1983 and was
    partially acquired by Harley-Davidson
    in 1993 and fully in 1998.

    • Buell bikes were lighter, faster, sportier,


    and cheaper than Harley-Davidson’s
    heavyweight bikes.

    • 684 Harley-Davidson dealerships, 307


    sold both the Harley-Davidson and Buell
    brands.

    • Harley-Davidson bikes, a gross profit


    margin of 35%

    • Buell bikes had only a 5% gross margin,


    expected to increase to 10% in the near
    future. 10
    Targeted customers
    • Owners aged between 25 to 55
    • With median income of $80900
    • 7% of the customers are females
    • 1% share in Europe 0.7% in USA
    • 5% gross profit expected to increase
    to 10%
    • HD profits are at 35%
    • 87% are aware of HD and 5% of
    Buell.

    1
    1
    Problem
    Sales Problem
    • Age of average customers are
    45+
    • They want younger generation
    to be their target market.
    • Customers will be perishing with
    age.

    1
    2
    COMPARISON 01

    PURCHASE YOUNG ADULT MARKET


    • 12% of U.S. retail motorcycle • Harley-Davidson had a 22% share
    sales of new Harley-Davidson of young adult buyers (18‒34) in
    motorcycles were to female
    buyers. 2007 across all on-road
    motorcycles, second only to
    Suzuki, the market leader in this
    segment.

    13
    Competitors Analysis
    14
    MAJOR COMPETITION IN JAPAN AND THEN IN EUROPE AND
    MINIMUM IS IN USA.

    Competitors
    JAPAN
    • BMW
    • Ducati
    COMPETITORS
    • Not heavyweight bikes but are known
    • YAMAHA for their speed and light weight designs.
    • HONDA,
    • Difficult for Buell to achieve the target
    • SUZUKI market.
    • KAWASAKI
    OWNING 50% OF THE WORLD MARKET
    PRICE FROM 3,000 YEN TO 40,000-YEN
    AVERAGE COST IS AROUND 60,000 YEN EUROPE
    BIKES GENERALLY RANGE FROM 400CC TO 1795CC

    15
    • No major competition.
    • 1969 light weight cheaper Japanese
    bikes emerged as competition.

    A
    US

    16
    COMPETITORS

    Sales
    60
    2007
    50

    40

    30

    20

    10

    0
    Harley Buell Honda Suzuki Yamaha Kawasaki Others
    Davidson

    2007 2006 2005 2004 2003

    Harley Davidson Buell Honda Suzuki


    Yamaha Kawasaki Others

    17
    Competitive Edge

    Brand Loyalty Customer Loyalty

    Name Recognition Brand Quality

    18
    Demographics
    19
    USA

    BIKES TYPES

    • 1987, the median age of Harley-


    Sporters is of $14,999. Davidson customer was 35.
    Iron 883 is of $ 9,749.
    Iron 1200 is of $ 10,249. • By 2007 it was 47.3.
    Forty eight is of $ 11,549.
    Softail Standard is of $ 13,599.
    Street Bob 114 is of $ 14,999. • Harley-Davidson had a 22% share of
    Softail Slim is of $ 15,999.
    Low rider S is of $ 17,999.
    young adult buyers (18‒34) in 2007
    Sport Glide is of $ 18,599. across all on-road motorcycles
    Fat Bob 114 is of $ 18,799.
    Fat boy 114 is of $ 19,999.
    Heritage classic is of $ 18,999.
    Electra Glide Revival is of $ 29,199.
    Electra Glide Standard is of $ 18,999.
    Road King is of $ 19,499.
    Road glide is of $ 21,699.
    Street glide is of $ 21,999.
    AGE
    Road king special is of $ 22,999.
    Road glide special is of $ 26, 699.
    Street glide special is of $ 27099.
    Sreet glide limited is of $ 28,299..
    Pan America 1250 is of $17,319.
    Pan America 1250 special is of $ 19,999.
    Free wheeler is of $ 27,999.
    Tri Glide Ultra is of $ 34,999. 20
    Cvo Tri Glide is of $ 48,999.
    GENDER INCOME EDUCATION
    • The average U.S. retail purchaser • Nearly three-quarters of the
    • Harley-Davidson motorcycle was of a new Harley-Davidson U.S. retail sales of new Harley-
    a married male in his mid to late motorcycle was males with a Davidson motorcycles were to
    forties. median household income of buyers with at least one year of
    • Approximately 12% of U.S. retail approximately $84,300 education beyond high school,
    motorcycle sales of new Harley- (compared to the U.S. median of and 30% of these buyers had
    Davidson motorcycles were to $52,700). college degrees.
    female buyers.

    21
    EUROPE

    BIKES TYPE

    • HARLEY-DAVIDSON FLTRXSE is of €20,900 USD.

    • HARLEY-DAVIDSON FXST Fat Boy Custom Evo Vergaser


    RICKs Fat boy
    Is of €24,990 USD
    The average age of Harley Davidson
    customers  in Europe is 44 to 55 and above.
    • HARLEY-DAVIDSON Softail Custom is of €19,000 USD.

    • HARLEY-DAVIDSON Screamin Eagle Street Audio system is of AGE


    €19,900 USD.

    • HARLEY-DAVIDSON FXST Fat Boy Custom Evo Vergaser


    RICKs Fatboy is of €24,990 USD
    22
    • HARLEY-DAVIDSON Scream in Eagle Street Audio system is of
    GENDER INCOME EDUCATION
    • 98% customers are male • The average U.S. retail purchaser • Most of the customers have a
    of a new Harley-Davidson college degree.
    motorcycle is of elite people with
    income 74.501105 euros.

    23
    DECISION

    STAY THE COURSE DOUBLE DOWN ON BUELL ENDORSE BUELL


    • Allocating additional • Strengthen the Buell
    CURRENT DUAL BRAND resources with the goal brand and make it more
    STRATEGY AS HARLEY IS of building up the Buell relevant to young adults.
    LEADING BRAND AND brand while preserving
    BUELL AS TARGETING the strength of the
    YOUNG ADULTS. Harley brand

    24
    3 DECISION IN 3 DIFFERENT MARKETS

    FOR JAPAN: DUAL BRAND FOR EUROPE: ENDORSE FOR USA: DOUBLE DOWN
    STRATEGY BUELL AS A SUB BRAND ON BUELL’
    • Core customers in • Buell holding the 1% share • Repurchase intent of
    extremely competitive in the market. 80% and 52% of which
    market with 83% of the • Competition from BMW previously owned Harley
    expenditure. and Ducati in Europe can’t Davidson so this will be
    be overlooked best market.
    • 17% will used by Buell to
    further penetrate the • 5% of the population is • 80% US dealerships will
    market with aim to aware of Buell be used to make people
    target the young adult • If it will be endorsed as a aware of Buell
    market. sub brand the target
    market will be reached. 25
    THANK YOU!
    Ali
    Nakhaba
    Hafsa
    Mahnoor
    Feroze

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