Post on 13-Dec-2015
Phoenix Hybrid Team D: Alison, Anita, Bryan, Chelle, & Jason
Kathy DeckerApril 6, 2009
HARLEY RIDERS HAVE A ROMANCE WITH THE ROAD…
History and Organization
Product Description
Marketing Research
Segmentation & Target Market
Position & Placement in Market
Competitive Landscape
SWOTT Analysis
Distribution Strategies
Product Lifecycle
Pricing Strategy
Advertising Plan
Public Relations Opportunities
Controls & Monitoring
American Legend…
Established 1903 – Milwaukee, WI - 105th Birthday 2008
Harley Davidson, Inc. – Parent Co. of HDMC, Buell, MV Agusta, & HDFS
Survived World Wars, Depression, Tarnished Reputation, Restructuring and
Revival, Claims of Stock Price Manipulation, Strikes, & Other Unforeseen
problems
Trademarked Sound
Sold in more than 70 countries
More than just motorcycles
Commitment to Society
Production and Key Facilities World Wide
Phoenix is Born
Environmentally Friendly – The “Phoenix” is born with protection of our environment at heart.
Fuel Efficient - As required to meet the “Environmentally Friendly” aspects, and offsets rising fuel costs.
Hybrid Technology – Brings parallel hybrid technology to the motorcycle industry and increases operational efficiency
by 50%. Integration - Allows for a reduced cubic inch displacement gasoline engine, which is where the economies are realized via reduced fuel consumption.
Electrical System - The Phoenix utilizes 24V lithium ion battery construction to reap the benefits of maximum range capabilities.
High electrical demands of advanced drive train system – frame is modeled to accommodate over 40% of batteries needed to support the electrical drive system.
The remaining 60% of batteries are provided by dual 24V - C900A rear mount batteries.
Authenticity – An optional accessory, the uproar tailpipe allows for the signature Harley sound.
Phoenix Hybrid
Marketing Research Research Information (Primary) – Collect information from current customers & dealers / analyze additional info through industrial & competitor analysis.
Specialized Focus - Identify areas where motorcycle travel is advantageous, Glean further data from our targets.
Consideration (Secondary) - Given to readily available market research data specific to motorcycles and environmental concentrations
Goal - Provide an eco-friendly motorcycle, Out-perform our competitors, Price that satisfies the consumers in our target
markets, and Maintain reputation of our brand.
Segmentation & Target Markets
Two Step Process – Name / Divide
Segmentation Criteria include: Demographics,
Psychographics, Behaviors, and Geography.
Determine Target Markets Develop Marketing Mix
Metro & College Areas Young Adults – 20 to 48 Women Slightly Lower Income -
$50,000 to $80,000 Married & Single Economically &
Environmentally Conscious Warmer/Temperate
Climates
Position & Place in Industry
Reputation as an American
Legend
Image of Prestige
Fun
Unique
Classic Style
Superior to Competitors
“With half the U.S. Market
and a third of the global
one, Harley-Davidson is
the largest
manufacturer of
heavyweight
motorcycles in the
world.” (Wikinvest, 2009)
SWOTT ANALYSIS
Strength: over a 1.5:1 ratio in 2006, 2007 and 2008
Weakness: lack of sufficient assets aside from inventory
Opportunity: create a hybrid with “Harley sound”
Threat: current economic recession and competition
Trend: commuters decrease expenditures and think “green”
Our Competitors: From shoes to other motorcycle companies
Economic Environment:Changes in consumer needs
Historical Lessons:GM’s electric car surpassed by foreign hybrid vehicles despite being “first zero-emission vehicle on the market”
Customers as Partners:
Focus on loyalty and encourage investment
Why Now?
Distribution Strategies
Harley StoresPrimarySecondary
Market SaturationUSA 684Europe 370Canada 74Japan, Australia, Asia, &
Latin America 240Least Costly
Product Lifecycle Categorical – Adding a product to an existing line of products in which we are creating a new category.
Market Introduction – Very streamlined due to large network of dealerships as well as exceptional following. Word will travel fast and we well have large success In this phase.
Market Growth - Primary emphasis will be on price sensitivity and customer satisfaction. Great indicator of how successful our test markets really were. Large growth anticipated. When competition enters, focus on market share
Market Maturity – Upon entry we are at this phase by nature of product, new technology gives us renewal and vigor. As competition enters and sales slow we will know we have hit this point.
Sales Decline – As new technology or better products we will enter this phase.
Pricing Objectives & Strategy
Combination Approach – Sales & Profit
To Increase Market Share & Sales
Goal - Sustainable Profit over Product Lifecycle
Administer Prices through Channels
Range of Prices
Cap Suggested Retail Price
Communicate Objectives to Dealers
Set Lower List Price & Accept Lower Mark Up
“This is not your dad’s old bike; this is a new motorcycle
for a new generation.” Combination of methods - Personal, Mass Selling, & Sales
Promotions Communication with Dealers - Exclusive ad materials Ads in Print, on Radio, Television, & Billboards Press Releases New Section on Harley Website Sales Promotions - Sweepstakes, Trade-in and/or Trade-up
options, Freebies New Symbols = New Image
Lightening BoltsNature ScenesYouthful Riders
Public relations opportunities
Strategic ApproachMaximize sales while minimizing advertising
costs
Create a monopolistic competition
Corporate LevelExtreme Makeover: Home Edition
Authorized Dealership Level
“Harley Davidson Environmental Revolution”
Controls & Monitoring
Market Feedback
Customer Feedback
Dealer Feedback
Website Tracking
Profit Margins
CONCLUSION Maintain Position in Industry
Maintain Edge over Competitors
Encourage Investments
Caring for Community
Release in 2010 – First on the scene
Monopolistic Competition
Extend Lifecycle of Phoenix
Ensure Business Success & Sustainability
Questions?
REFERENCESAmerican marketing association (2009). Dictionary. Retrieved March 14, 2009, from
http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=M
Armstrong, G., & Kotler, P. (2005). Marketing: an introduction (7th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.
Harley Davidson USA (2009). This is where we live between friends. Retrieved March 9, 2009, from http://www.harley davidson.com/wcm/Content /Pages/Company/company.jsp
Harley Davidson (2001-2009). Harley-Davidson USA/Company/History. Retrieved March 15, 2009, from https://www.h-dmedia.com/?locale=en_US&bmLocale=en_US
Harley Davidson (2001-2009). Harley-Davidson Media Site. Retrieved March 15, 2009, from https://www.h-dmedia.com/?locale=en_US&bmLocale=en_US
Customer Relationship Management Systems (2009). Finding profit in customer behavior. Retrieved March 22, 2009, from http://www.crm2day.com/content/t6_ librarynews _1.php?id=EpyZAulVVyRGtadgVR
REFERENCESPerreault, Jr., William D., & McCarthy, Jerome E. (2005). Basic Marketing (15th ed.). New York:
McGraw-Hill/Irwin.
Recklies, Dagmar (2001). Why Segmentation? Introduction and Definition. Retrieved March 20, 2009, from The Manager .org Web site: http://www.themanager.org/marketing/segmentation.htm
Wikinvest, (2009). Harley-Davidson (HOG). Retrieved April 1, 2009, from Wikinvest Web site: http://www.wikinvest.com/stock/Harley-Davidson_(HOG)
All Background pictures from Photobucket and Google Images.