U109110 Binay MM-I Term1 Assignment

8/8/2019 U109110 Binay MM-I Term1 Assignment

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Strategy Analysis of Niche Marketer

HARLEY - DAVIDSON

1

Compiled by :-

Binay Prasanna Jena

Roll U109110

PGDM 2009-2011, Section C

1 www.harley-davidson.com


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My First Harley2

Sun raises, and the off comes the coverGrab the helmets, leathers and my lover.

The key is on I give her just a little chokeShe fires right up with very little smoke.

She purrs like a kitten ready to hit the streetMy wife climbs on and I lift my feet.

My Harley is rolling the winds in our hairWere cruising now, it doesnt matter where.

She glides down the road as pretty as can beThe best part is that my wife is with me.

With bugs on our faces we will return homeClean her all up and wipe down the chrome.

We will cover her up with a smile on our face

And look forward to the day she will take us to another place.

JTL2005

Jack T Lindsey

[email protected]

My First Harley biker tries hard to put his nostalgia with the machine through words; which is

just one of the many paeans composed in reminiscence of the association with the two-wheeledmachines, which are lot more beyond than just being inanimate motorcycles.

Adventure, self-expression, freedom few words that are continuously associated with a brand

that in spite of rugged feel promises to deliver on the ultimate motorcycling experience which

drives bikers crazy. The product, more so the brand has been delivering users need to a level more

beyond expectations.

2 http://vtwinbiker.com/BikerPoetry2/My_First_Harley/my_first_harley.html


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IntroductionHarley-Davidson3 (often abbreviated H-D or Harley), the first decade of the 20th century,

Milwaukee, Wisconsin witnessed the foundation of this motorcycle manufacturer. Harley-Davidson

figured among the two major American manufacturers to have survived the Great Depression, a

media-accelerated negative image of motorcyclists, a period of poor quality control, and

competition with Japanese manufacturers it has been this survivor instinct that implicitly inspires

bikers till date.

Heavyweight (over 750 cc) motorcycles designed for cruising on the highway are the product that

Harley-Davidson deals with. Popularly known as "Harleys", they are known to have a distinctive

design and exhaust note and specially noted for the tradition of heavy customization that gave rise

to these chopper-style of motorcycles. Styles of classic Harley designs are still reflected in current

Harley-Davidson motorcycles, except for the modern VRSC model family. H-D's attempts to identify

itself in the light motorcycle market have not been barely successful and have largely been

abandoned since the sale of its Italian subsidiary Aermacchi in 1978. Its sustenance of loyal brand

community is through events, active clubs, a museum, aggressive merchandising & logo licensing.

Almost 5% of the company's net revenue is accounted for by Harley's licenses for logo.

History and backgroundIn 1901, William S. Harley,aged 21, planned for a small engine which could be used in a regular

pedal-bicycle frame, with a displacement of 7.07 cubic inches (116 cc) and four-inch (102 mm)flywheels. Finally by 1903, the plan saw certain concreteness with the help of his childhood friend

Arthur Davidson and his brother Walter Davidson, who labored together in the northside

Milwaukee machine shop of their friend Henry Melk. However this power-cycle couldnt conquer

modest hills of Milwaukee without pedal assistance. Will Harley and the Davidsons quickly wrote

off their first motor-bicycle as a valuable learning experiment.

They started off on a new and improved second-generation machine. This first "real" Harley-

Davidson motorcycle had a bigger engine of 24.74 cubic inches (405 cc) with 9.75 inches (25 cm)

flywheels weighing 28 lb (13 kg). The machine's advanced loop-frame pattern was similar to the

1903 Milwaukee Merkel motorcycle (designed by Joseph Merkel, later of Flying Merkel fame). The

bigger engine and loop-frame design took it out of the motorized-bicycle category and would help

define what a modern motorcycle should contain in the years to come. The prototype of the new

loop-frame Harley-Davidson was assembled in a 10- by 15-foot (3 by 5 meter) shed in the Davidson

family backyard. Most of the major parts, however, were made elsewhere, including some

3 http://en.wikipedia.org/wiki/Harley-Davidson


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probably fabricated at the West Milwaukee rail shops where oldest brother William A. Davidson

was then tool room foreman. This prototype machine was functional by 8 September 1904 when it

competed in a Milwaukee motorcycle race held at State Fair Park, ridden by Edward Hildebrand

and placed fourth. It was the first documented appearance of a Harley-Davidson motorcycle in the

historical record.

Fig 1. 1907 model

In January 1905, advertisements were placed in the "Automobile and Cycle Trade Journal" that

offered bare Harley-Davidson engines to the do-it-yourself trade. By April, complete motorcycles

were in production on a very limited basis, it sold three bikes that year. In 1907, William S. Harley

graduated from the University of WisconsinMadison with a degree in mechanical engineering &

production of motorcycles increased to 150 motorcycles that year, with the company being

officially incorporated in September 1907. They began selling motorcycles to police department,market which has been important to them since then. It gradually progressed from single cylinder

engine (26.84 cubic inches/439.8 cc) model in 1905 and 1906 to 45-degree V-Twin engine (53.68

cubic inches/879.7 cc)in 1907 being displayed in Chicago Automobile show. Top speed was about

60 mph (97 km/h). Production jumped from 450 motorcycles in 1908 to 1,149 machines in 1909. In

1917, the United States entered World War I and the military demanded motorcycles for the war

effort. Harley-Davidson provided about 15,000 machines to the military forces during World War I.

In the late summer of 1929, Harley-Davidson introduced its 45 cubic inch flathead V-Twin to

compete with the Indian 101 Scout4 and the Excelsior Super X5.This model was known as the "three

cylinder Harley" because the generator was upright and parallel to the front cylinder. The 2.745 in

(69.7 mm) bore and 3.8125 in (96.8 mm) stroke continued in most versions of the 750 engine;exceptions include the XA and the XR750.

4 http://en.wikipedia.org/wiki/Indian_101_Scout5 http://en.wikipedia.org/wiki/Excelsior_Super_X


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Few months after the introduction of their 45 cubic inch model, Great Depression crept in. Sales

plummeted from 21,000 in 1929 to 3,703 in 1933. In spite those dismal numbers; Harley-Davidson

proudly unveiled its lineup for 1934, which included a Flathead with art deco styling. Survival for

rest of Depression probed the company to manufacture industrial power plants based on their

motorcycle engines in this period. They also designed and built a three-wheeled delivery vehicle

called the Servi-Car, which remained in production until 1973.In the mid-'30s, Alfred Rich Child

opened a production line in Japan with the 74ci VL. The Japanese license-holder severed its

business relations with Harley-Davidson in 1936 and continued manufacturing the VL under the

Rikuo name. An 80 cubic inch flathead engine was added to the line in 1935, by which time the

single-cylinder motorcycles had been discontinued. In 1936, the 61E and 61EL models with the

"Knucklehead" OHV engines was introduced. By 1937, all Harley-Davidson's flathead engines were

equipped with dry-sump oil recirculation systems similar to the one introduced in the

"Knucklehead" OHV engine. The revised 74 cubic inch V and VL models were renamed U and UL,

the 80 cubic inch VH and VLH to be renamed UH and ULH, and the 45 cubic inch R to be renamed

W. In 1941, the 74 cubic inch "Knucklehead" was introduced as the F and the FL. The 80 cubic inch

flathead UH and ULH models were discontinued after 1941, while the 74" U & UL flathead models

were produced up to 1948.

Harley-Davidson at Nations service in World War II6

Harley-Davidson (being one of only two American cycle manufacturers to have survived the Great

Depression) produced large numbers of motorcycles for the US Army in World War II and resumed

civilian production afterwards, producing a range of large V-twin motorcycles that were successful

both on racetracks and for private buyers. Harley-Davidson, on the eve of World War II, was

already supplying the Army with a military-specific version of its 45" WL line, called the WLA (The A

in this case stood for "Army").



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Fig2. Image of WLA from US Army Manual (WW II) Fig3. WLC produced for Canada

military

Upon the outbreak of war, the company, along with most other manufacturing enterprises, shifted

to war work. Over 90,000 military motorcycles, mostly WLAs and WLCs (the Canadian version)

would be produced, many to be provided to allies. Harley-Davidson received two Army-Navy E

Awards, one in 1943 and the other in 1945, which were awarded for Excellence in Production. The

U.S. Army also asked Harley-Davidson to produce a new motorcycle with many of the features of

BMW's side-valve and shaft-driven R71. Harley largely copied the BMW engine and drive train and

produced the shaft-driven 750 cc 1942 Harley-Davidson XA. Only 1,000 were made and the XA

never went into full production. It remains the only shaft-driven Harley-Davidson ever made.

Fig 4. Harley copied the BMW R71 to produce the XA model


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Reputation tarnishing

In 1952, Harley-Davidson was charged with restrictive practices following their application to the

US Tariff Commission for a 40% tax on imported motorcycles. Hollywood too brought disrepute to

Harley's image with many outlaw biker gang films produced from the 1950s through the 1970s,

following the Hollister riot on July 4, 1947. "Harley-Davidson" for a long time became synonymous

with the Hells Angels7and other outlaw motorcyclists8. In 1969, American Machinery and Foundry(AMF) bought the company, streamlined production, and slashed the workforce. This action

resulted in a lower quality of bikes and a labor strike. The bikes were expensive and inferior in

performance, in handling and in quality compared to Japanese motorcycles. Sales declined, quality

plummeted, and the company almost went bankrupt. The "Harley-Davidson" name was mocked as

"Hardly Ableson", "Hardly Driveable," and "Hogly Ferguson", and the nickname "Hog" became

pejorative. In 1977, Harley-Davidson produced what has become one of its most controversial

models, the Confederate Edition. The bike was essentially a stock Harley with Confederate-specific

paint and details.

Restructuring and revival

In 1981, the company was sold by AMF to a group of thirteen investors led by Vaughn Beals and

Willie G. Davidson for $80 million. As part of increasing operational efficiency inventory was strictly

controlled using the just-in-time system. During early eighties, Harley-Davidson claimed that

Japanese manufacturers were importing motorcycles into the US in volumes as to harm or

threaten to harm domestic producers. Post enquiry into the same by the US International Trade

Commission, President Reagan imposed in 1983 a 45% tariff on imported bikes and bikes over 700

cc engine capacity. Harley Davidson subsequently rejected offers of assistance from Japanese 9

motorcycle makers. Instead of trying to match the Japanese, the new management deliberately

exploited the "retro" appeal of the machines, building motorcycles that intentionally adopted the

look and feel of their earlier machines and the subsequent customizations of owners of that era.

Components like brakes, forks, shocks, carburetors, electrics and wheels were outsourced from

foreign manufacturers and quality slowly increased, technical improvements were made, and

buyers gradually returned. To remain profitable Harley continues to increase the amount of

overseas-made parts it uses, while being careful not to harm its valuable "American Made" image.

By 1990, Harley once again became the sales leader in the heavyweight (over 750 cc) market, with

the introduction of the "Fat Boy". With this introduction a story rapidly spread that its silver paint

job and other features were inspired by the World War II American B-29 bomber; and that the Fat

Boy name was a combination of the names of the atom bombs (Fat Man and Little Boy) that were

7 http://en.wikipedia.org/wiki/Hells_Angels8 http://en.wikipedia.org/wiki/Outlaw_motorcycle_gang#Outlaw_Motorcycle_Gangs9 http://www.japanlaw.info/lawletter/july83/ase.htm


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dropped on Nagasaki and Hiroshima respectively. However, the Urban Legend Reference 10Pages

lists this story as an urban legend1112.

Harley-Davidson continued to reinvent itself through association with sport bike manufacturer

Buell Motorcycle Company13 in 1987 when they supplied Buell with fifty surplus XR1000 engines.

Buell continued to buy engines from Harley-Davidson until 1993, when Harley-Davidson boughtforty-nine percent of the Buell Motorcycle Company. H-D increased its share in Buell to ninety-

eight percent in 1998, and further to complete ownership in 2003 14. In an attempt to attract

newcomers to motorcycling in general and to Harley-Davidson in particular, Buell developed a low-

cost, low-maintenance motorcycle. The resulting single-cylinder Buell Blast was introduced in

2000, and was made through 2009, which, according to Buell, is to be the final year of production.

In 2000, Ford Motor Company added a Harley-Davidson edition to the Ford F-Series F-150 line,

complete with the Harley-Davidson logo. This truck was a Super Cab for model year 2000. In 2001,

Ford changed the truck to a Super Crew and in 2002 added a super-charged engine (5.4 L) which

continued until 2003. In 2004, the Ford/Harley was changed to a Super-Duty, which continues

through 2009. Ford again produced a Harley-Davidson Edition F-150 for their 2006 model-year, as

well.

Evolution of the super machines

Big V-twins

F-head, also known as JD, pocket valve and IOE (intake over exhaust), 19141929 (1000 cc), and 19221929

(1200 cc)

Flathead, 19301948 (1200 cc) and 19351941 (1300 cc).

Knucklehead, 19361947 61 cubic inch (1000 cc), and 19411947 74 cubic inch (1200 cc)

Panhead, 1941952 61 cubic inch (1000 cc), and 19481965, 74 cubic inch (1200 cc)

Shovelhead, 19661984, 74 cubic inch (1200 cc) and 82 cubic inch (1345 cc) since late 1978

Evolution (aka "Evo" and "Blockhead"), 19842000, 80 cubic inch (1340 cc)

Twin Cam 88 (aka "Fathead") 19992006, 88 cubic inch (1450 cc)

Twin Cam 88B (counter balanced version of the Twin Cam 88) 20002006, 88 cubic inch (1450 cc)

Twin Cam 96, since 2007, 96 cubic inch (1584 cc)

10 http://en.wikipedia.org/wiki/Snopes11 http://www.snopes.com/business/market/fatboy.asp12 http://www.independent.co.uk/life-style/motoring/road-tests/road-test-harleydavidson-flstf-fat-boy-

424174.html13 http://www.industrytoday.com/article_view.asp?ArticleID=148514 http://www.motorcycle.com/manufacturer/buell/buell-blast-13968.html


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Twin Cam 103, 20032006, 2009, 103 cubic inch (1690 cc) (engines for C.V.O. models)

Twin Cam 110, since 2007, 110 cubic inch (1802 cc) (engines for C.V.O. models)

Small V-twins

D Model, 19291931, 750 cc

R Model, 19321936, 750 cc

W Model, 19371952, 750 cc, solo (2 wheel, frame only)

G (Servi-Car) Model, 19321973, 750 cc

K Model, 19521953, 750 cc

KH Model, 19541956, 900 cc

Ironhead, 19571971, 900 cc; 19711985, 1000 cc

Evolution, since 1986, 883 cc, 1100 cc and 1200 cc

Model Families

Modern Harley-Davidson branded motorcycles are categorized into one of five model families:

Touring, Softail, Dyna, Sportster and VRSC. These model families are distinguished by the frame,

engine, suspension, and other characteristics.

Touring15

Fig 5. Electra Glide at service of Hamburg Police

The touring family, also known as "dressers", includes three Road King models and Electra Glide

models offered in various trim. The Road Kings have a "retro cruiser" appearance and are equipped

with a large clear windshield. Road Kings are reminiscent of big-twin models from the 1940s and

'50s. Electra Glides can be identified by their full front fairings. Most Electra Glides sport a fork-

mounted fairing referred to as the "Batwing" due to its unmistakable shape. The Road Glide has aframe-mounted fairing, referred to as the "Sharknose". The Sharknose includes a unique, dual

front headlight. Touring models are distinguishable by their large saddlebags, rear coil-over air

suspension and are the only models to offer full fairings with Radios/CBs. Touring models used the



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same frame (which got introduced with a Shovelhead motor in 1980) with modest upgrades till

2009, when it went for extensive redesign. The frame is distinguished by the location of the

steering head in front of the forks and was the first H-D frame to rubber mount the drive train to

isolate the rider from the vibration of the big V-twin. Touring models have become favorites with

several local and state police agencies, such as the Chicago Police Department, the Los Angeles

Police Department, the Iowa State Patrol, and several others.

Softail16

Fig 6. Softail heritage classic (2002)

These big-twin motorcycles reflect Harley's strong value on tradition. With the rear-wheel

suspension hidden under the transmission, they are visually similar to the "hardtail" choppers

popular in the 1960s and 1970s, as well as from their own earlier history. In keeping with that

tradition, Harley offers Softail models with "Springer" front ends and "Heritage" styling that

incorporate design cues from throughout their history.

Dyna17

Fig 7. Dyna Super Glide Custom (2005)

Dyna motorcycles feature big-twin engines and traditional styling. They can be distinguished from

the Softail by the traditional coil-over suspension that connects the swingarm to the frame, and

from the Sportster by their larger engines. On these models, the transmission also houses the

engine's oil reservoir. Latest additions to Harley-Davidsons line-up of Dyna models: 2006 - Super

Glide, Super Glide Custom, Street Bob, Low Rider, and Wide Glide; 2008 -Fat Bob.




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Sportster18

Fig 8. Sportster 883 Custom (2002) Fig 9. H-D XL 1200 Custom Anniversary edition

(2003)

Introduced in 1957, the Sportster is the longest-running model family in the Harley-Davidson

lineup. Initially conceived as racing motorcycles, they were popular on dirt and flat-track race

courses through the 1960s and 1970s. Smaller and lighter than the other Harley models,

contemporary Sportsters make use of 883 cc or 1200 cc Evolution engines although often

modified, they remain similar in appearance to their racing ancestors.2007 marked the 50th

anniversary of the Sportster and Harley-Davidson produced a limited edition called the XL50, of

which only 2000 were made for sale worldwide.

VRSC19

Fig 10. Harley Davidson V-Rod

Latest addition to Harley family, introduced in 2001, the VRSC family bears little resemblance to

Harley's more traditional lineup. Competing against Japanese and American muscle bikes and

seeking to expand its market appeal, the "V-Rod" makes use of an engine developed jointly with

Porsche that, for the first time in Harley history, incorporates overhead cams, and liquid cooling.The V-Rod is visually distinctive, easily identified by the 60-degree V-Twin engine, the radiator and




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Harley-Davidson has also purchased most of Castalloy, which is a South Australian producer of cast

motorcycle wheels and hubs. The South Australian government has set forth "protection to the

purchaser (Harley-Davidson) against environmental risks22."

Harley-Davidson Riders Club of Great Britain - The Harley-Davidson Riders Club of Great Britain (est

1949)23

was the first British riders club (as opposed to motorcycle club) and organized nationalrallies and ride-outs from the outset. The 1982 rally began a popular run of events, probably due to

the good fortune of having William G. Davidson attending his first rally outside the U.S., in Great

Britain. He is thought to have been more than curious to discover how the secret "Evolution

Motor" had found its world exclusive on the cover of the spring edition of the HDRCGB magazine,

the "Harleyquin", but having a forgiving nature, Willie G. returned in 1984, along with Vaughn

Beals and Len Thomson to officially show off the Evolution engine by bringing a test ride fleet to

the second Brighton International Super Rally run by H.D.R.C.G.B. 24. The demonstration rides were

the first at any European Rally. The club now has circa 1800 members throughput the U. K. U.S.A.

and Europe not forgetting their founder member in Australia. The club is split into regions and

most hold rallies during the summer culminating in the clubs International Rally25

.

Hall of fame

Because William S. Harley, Arthur Davidson, William A. Davidson and Walter Davidson both used

and believed in its products and relied on the dedication of its employees to produce quality

motorcycles, the four men were inducted into the Labor Hall of Fame26.

Worldwide Market Share Snapshot27

22 http://www.minterellison.com/public/connect/Internet/Home/Expertise/Track+Records/TR-Harley-

Davidson23 http://www.hdrcgb.org.uk/24 http://www.hdrcgb.org.uk/25 http://www.harley-davidson-hangout.com/pages/oz2008/index.htm26 http://www.dol.gov/oasam/programs/laborhall/2004_davidson.htm27 http://www.authorstream.com/presentation/clonfunky-113973-harley-davidson-education-ppt-

powerpoint/


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P r i c i n g H a r l e y sAlthough Harley-Davidson uses many of the same parts suppliers as Honda, Kawasaki and Yamaha,

former has been pricing well above the competitive price of these competitors. Harley's high prices

combined with its customer loyalty and mystique help overcome buyer resistance to higher prices.

Production efficiencies over the last two decades, however, have made quality among motorcycleproducers about equal, but pricing above the market signals quality to buyers; whether or not they

get the quality premium they pay for28.The competitive strategy used by Harley Davidsona highly

differentiated range of products combined with a build-to-order manufacturing capability

enabled them to survive intense Japanese competition29.

Prices of few Harley models in 2009 have been specified as below -

Harley-Davidson Models Prices

2009 Harley-Davidson Sportster 1200 Nightster $9,899.00

2009 Harley-Davidson Road King Classic $17,999.00

28 http://www.enotes.com/management-encyclopedia/pricing-policy-strategy29 http://www.cox.smu.edu/article/research/research.do/89H


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2009 Harley-Davidson Electra Glide Ultra Classic $20,999.00

2009 Harley-Davidson Road Glide Base $18,599.00

2009 Harley-Davidson VRSC Night Rod Special $16,699.00

2009 Harley-Davidson Softail Night Train $15,899.00

2009 Harley-Davidson VRSC V-Rod $14,999.00

2009 Harley-Davidson Street Glide Base $18,999.00

2009 Harley-Davidson Dyna Glide CVO Fat Bob $25,299.00

2009 Harley-Davidson VRSC V-Rod Muscle $17,199.00

2009 Harley-Davidson Sportster Iron 883 $7,899.00

2009 Harley-Davidson Softail Rocker C $19,499.00

2009 Harley-Davidson Dyna Glide Low Rider $15,099.00

2009 Harley-Davidson Softail Cross Bones $16,999.00

2009 Harley-Davidson Softail Deluxe $17,449.00

2009 Harley-Davidson Dyna Glide Super Glide $11,999.00

2009 Harley-Davidson Softail Fat Boy $15,999.00

2009 Harley-Davidson Softail Heritage Softail Classic $17,999.002009 Harley-Davidson Dyna Glide Super Glide Custom $12,999.00

2009 Harley-Davidson Sportster XR1200 $10,799.00

Price Comparison across Competitors in similar product category30

2004 Harley-Davidson 883

Sportster Custom 2004 Honda Shadow Aero 750 2004 Kawasaki 800 Vulcan Class

Suggested base price: $7595-

$8090 Suggested base price: $6199 Suggested base price: $6799

Wet weight: 625 lb Wet weight: 577 lb Wet weight: 575 lbSeat height: 28.1 in. Seat height: 25.9 in. Seat height: 27.8 in.

ENGINE ENGINE ENGINE

Type: Air-cooled 4-valve V-twin

Type: Liquid-cooled SOHC 6-valve

V-twin

Type: Liquid-cooled SOHC 8-valve

V-twin

Displacement: 883cc Displacement: 745cc Displacement: 805cc

Carburetion: 1, 40mm Carburetion: 1, 34mm Carburetion: 1, 36mm

Transmission: Five-speed Transmission: Five-speed Transmission: Five-speed

Final drive: Belt Final drive: Shaft Final drive: Chain

CHASSIS CHASSIS CHASSIS

Front wheel: Wire-spoke, 19 x

2.15 in.

Front wheel: Wire-spoke, 17 x 3.0

in.

Front wheel: Wire-spoke, 16 x 3.0

in.

Rear wheel: Cast, 16 x 3.0 inches Rear wheel: Wire-spoke, 15 x 3.5 Rear wheel: Wire-spoke, 16 x 3.0

30 http://www.motorcyclecruiser.com/roadtests/budget_v_twin_bike_comparison/index.html


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in. inches

Front brake: Two-piston caliper,

11.5-in. disc


11.7-in. disc


11.8-in. disc

Rear brake: Single-piston caliper,

11.5-in. disc Rear brake: Drum Rear brake: Drum

Front suspension: 39mm

stanchions, 6.1 in. travel





Rear suspension: Dual dampers,

3.3 in. travel

Rear suspension: Dual dampers,

3.5 in. travel

Rear suspension: Single damper,

in. travel

Fuel capacity: 4.5 gal. Fuel capacity: 3.7 gal. Fuel capacity: 4.0 gal.

PERFORMANCE PERFORMANCE PERFORMANCE

Fuel mileage: 51.4 mpg Fuel mileage: 42.8 mpg Fuel mileage: 48.1 mpg

Average range: 231 miles Average range: 158 miles

Average range: 192 mi.

Harley Davidson SWOT analysis31

Strengths

HOG has 430, 000 members worldwide

Allows owners to customize their bikes

Strong relationship with suppliers and

dealers

Only major US motorcycle manufacturer

Weaknesses

Facing ongoing capacity constraints

Lack of opportunity for advancement

Leadership strategy council is

comprised entirely of vice-presidents

Lack of employee diversity

31 http://www.authorstream.com/presentation/clonfunky-113973-harley-davidson-education-ppt-

powerpoint/


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Opportunities

International Heavy weight market

Women and young riders

Market share in Europe and Asia

Demand in US Market for bikes

Supplies many American police forces

Threats

Average buying age is 42 years and

more

Shift in buyers tastes and needs

Government policies and environment

protection/emission norms

H a r l e y - D a v i d s on B r a n d i n gMission statement of Harley-Davidson reads as We fulfill dreams through the experience of

motorcycling, by providing to motorcyclists and to the general public an expanding line of

motorcycles and branded products and services in selected market segments.32

Keys to Harley Davidson being perceived as a strong brand are the intensity of emotions and the

imagery that Harleys evoke. These are some of the responses33

Harley-Davidson as a word, what images do you visualize? The quintessential motorcycle

and some cool dudes.

Harley-Davidson, what do you hear? VroomVroom

Harley-Davidson, what do you smell? A mixture of burning gasoline and oil and leather.

Harley-Davidson, what do you feel? Depending on perspective variety of emotions is on

display

If you are not a motorcyclist, you might feel fear, disgust and curiosity

If you are a motorcyclist and you own a Harley, you might feel pride.

If you are a motorcyclist and you do not own a Harley, you might feel respect or envy.

32 http://www.harley-davidson.com/wcm/Content/Pages/Student_Center/student_center.jsp?

locale=en_US#missionstatement33 http://georgetorok.blogspot.com/2007/03/brand-harley-davidson.html


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34Branding is about tugging at your senses. Branding is about evoking emotion. Branding is about

building emotional wants that triumph over petty logic. Branding is about wants. Branding is about

making you doing illogical things. Harley Davidson is a powerful brand because it grabs the senses

and evokes strong emotions. That is what a strong brand does. It had nothing to do with the logo,

fonts and pantone colors. Yet that is what many advertising agencies and marketing minions waste

their time on. No other motorcycle evokes the emotion that Harley Davidson does. That is the

power of branding. No one needs a Harley Davidson motorcycle but many want it.

Branding strategy of Harley Davidson is mainly attributed to its product uniqueness

customerization expression of soul35, and as Harley-Davidson promotes Its all about

experience36.

Its strategy has been channelized through following :

Merchandising37

Merchandising consists of apparels and accessories38

. Apart from genuine motoraccessories39 and model racing parts40, Harley-Davidsons merchandising exercise consists

of Motorclothes merchandise riding gear 41 comprising of jackets, customized helmets,

shades, gloves, body armor, hydration vests, custom boots, etc as well as home

collectibles42which range from glasses, mugs, bottle openers, travel clocks, picture frames,

shot glasses, travel mugs, skull clocks, coaster sets, die-cast collectibles, cds, H.O.G. banks,

etc. With changing times and technology creeping in, Harley-Davidson has diverged its

branding exercise to include phone cases, headsets as well as phone accessories43.

Cult Branding44

34 http://georgetorok.blogspot.com/2007/03/brand-harley-davidson.html35 http://www.harley-

davidson.com/wcm/Content/Pages/Genuine_Motor_Accessories/Customize_your_harley.jsp?locale=en_US36 http://www.harley-davidson.com/wcm/Content/Pages/Experience/experience.jsp?locale=en_US37 http://www.harley-davidson.com38 http://www.harley-

davidson.com/wcm/Content/Pages/Accessories_and_Apparel/Accessories_and_Apparel.jsp?locale=en_US39 http://www.harley-

davidson.com/wcm/Content/Pages/Genuine_Motor_Accessories/GMA_2010_Catalog.jsp?locale=en_US40 http://www.harley-davidson.com/en_US/Media/downloads/Racing/US_SE10_Full.pdf41 http://s7ondemand1.scene7.com/s7ondemand/brochure/flash_brochure.jsp?

company=HarleyDavidson&sku=Core+Catalog+2009&windowtitle=Harley-

Davidson&el=large&locale=en_US&bmLocale=en_US42 http://www.harley-davidson.com/browse/browse_products.jsp?FOLDER%3C

%3Efolder_id=2534374309077748&PRODUCT%3C

%3Eprd_id=845524448771292&bmUID=1191877161643&bmLocale=en_US&locale=en_US&bmLocale=en_U

S43 http://www.fonegear.com/harley-davidson/44 http://www.cult-branding.com/cbprofiles/harley-davidson-cult-brand-profile.html


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H.O.G. Harley Owners Group45

Harley-Davidson lends its owners a sense of community feel and binds them together with

a HOG membership (established in 1983) which is linked through the dealers. They didnt

just stop at creating member groups rather started sponsoring rallies. Not only did this

solidify its communities, rather it was used as a killer sales tool. They brought motorcyclesfor people to try out. This concept reaches its apex each year at Bike Week in Daytona

Beach and the Sturgis Rally and Races in South Dakota. Collectively, the events attract over

half a million Harley enthusiasts. Harley takes feedback its employees receive at these

events very seriously. Opinions they receive from customers affect what is produced in

product lines and the way they run their rallies. HOG has its chapters across nations which

is an organized way to share their passion and show their pride. Many HOG chapters

support local charities. The chapter based in Bridgwater, England, runs an annual charity

fund raising event called Hoggin' The Bridge, which involves around 3,000 bikes crossing

the Severn Bridge from England to Wales. In 2008, proceeds from Hoggin' The Bridge were

donated to a local motorcycle medical courier charity Freewheelers EVS46

.

Licenses47

Harley-Davidson works with 100 licensees ranging in product categories from childrens

(Haddad) to footwear (Wolverine), pet supplies (Coastal Pet), bicycles (Toys R Us),

childrens ride-ons (Fisher-Price), knives (United Cutlery), and lighters (Zippo). To add to

this T-shirt and other accessory licensees, stationery and gifts (Hallmark) as well as logo

licensing constitute a significant feature of branding as well as revenue generation

exercise.

To cite an instance, licensing of the Harley-Davidson logo accounts for almost 5% of thecompany's net revenue48.

Museum49

106 years of Harley-Davidsons history has been aptly reflected in its museums which are a

home to thousands of artifacts and other related memorabilia attracts around 300,000

visitors annually. The museum prides on company's story and history, such as

photographs, posters, advertisements, clothes, trophies, video footage of vintage and

contemporary motorcycling, and interactive exhibits, including 10 motorcycles that visitors

45 http://www.h-o-g.org/hogmember.asp46 http://news.bbc.co.uk/2/hi/uk_news/england/gloucestershire/7678727.stm47 http://www.licensemag.com/licensemag/data/articlestandard//licensemag/332005/174785/article.pdf48 http://en.wikipedia.org/wiki/Harley-Davidson49 http://www.bizzia.com/brandcurve/harley-davidson-brand-becomes-a-museum/


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can sit on50. From birthday bashes to business meetings the museum also plays host to

multiple events51 as part of its brand building as well as social responsibility exercise.

Online Communities52

Dedicated Harley-Davidson V-Rod communities have been promoted along with dealers to

increase motorcyclist awareness, sharing of expectations as well as experience discussion.

This gives the company and its dealers a feel of consumers want and expectation level.

Harley-Davidsons interactive website www.harley-davidson.com provides a great avenue

for the expressive internet user to find a leeway of his freedom through this motorcycle.

Unbound Branding53

In its efforts to stay close to its customers Harley-Davidson collaborated with mobile

agency Snap Tell to run mobile marketing campaigns on similar lines as mens lifestyle

magazines, in which consumers could download various wallpapers for their mobile

phones that featured swimsuit model Marisa Miller posing on the motorcycle.

Harley uses its strong dealership channels to promote strong campaigns through cafes

which provide the consumer almost owned motorcycling experience.

Having said all that its not the channel rather approach to reach out to its consumers, enthusiasts

and fan club, that has helped maintain its brand loyalty as well as increase its consumer base.

Harley-Davidson continues to evolve towards personalizing the motorcycle. It is evident as the

consumers are allowed to customize bikes according to their needs; Harley-Davidson outsources

the parts while concentrating its expertise on engine specifications that contribute towards the

biking experience. Apart from this the company through its merchandising and other exercises

tries to build a community feel around its product. Officially recognizing H.O.G. chapters that are

spread across geographies, while simultaneously encouraging online discussion forums as well

striving towards making its website more and more user interactive are some of the

concentrated efforts towards making Harley-Davidson a personalized product for its end-users.

Merchandising efforts are well as revenues from the licensees provide evidence regarding the

companys acceptance and contribution to the cult. Harley has never effected any cut down in its

prices, rather continues to charge a premium in all its product lines, which create a perception

among bikers that this product is something different and they should expect value for the

premium that they pay which has been met to perfection by the superior bike technology.

50 http://en.wikipedia.org/wiki/Harley-Davidson_Museum51 http://www.harley-davidson.com/wcm/Content/Pages/HD_Museum/events/overview.jsp?locale=en_US52 www.1130cc.com53 http://maverix.typepad.com/brandingunbound/2009/04/how-harleydavidson-uses-mobile-marketing-to-

rev-up-enthusiasts.html
http://www.harley-davidson.com/http://www.harley-davidson.com/


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Entry to Indian marketIndia is the worlds second largest motorcycle market behind China, but the market is dominated

by smaller, inexpensive bikes used primarily for transportation54. However the doors to outdoor

leisure motorcycle riding has been attributed to Indias rapidly growing economy, Indias rising

middle class and significant investment in construction of new highways. This is where Harley-

Davidson sees the opportunity to enter Indian markets.

Harley-Davidson fulfills dreams for people around the world through life-changing products and

experiences. The Harley-Davidson brand represents self-expression, adventure, the freedom of the

open road, and belonging to a global community a family of riders. We know the relevance of the

Harley-Davidson brand rings true in India just as it does in other markets around the world.55

Considering that Harley-Davidson caters to a market segment that looks upon a motorcycle not

just to quench its transportation needs, that has been ably catered to with the current motorcycles

of 100-200 cc engines, rather redefining the motorcycling experience freedom, adventure, self-

expression, passion for motorcycling and above all a sense of pride of belonging to a global

community of passionate bikers.

ConclusionHarley-Davidson has been effectively actualizing consumers perception of adventure, macho

image, handlebars, denim, tattoos and self-expression. All branding exercises, be it the product or

ancillary merchandise and motor parts all are oriented towards further enhancing the feeling of

self-expression and freedom. No wonder Harley-Davidson has been wise enough to foresee the

personalization and customerization needs of consumers ahead of its competitors and rightly so it

has been encashing its foresight.

Until you've been on a Harley-Davidson, you haven't been on a motorcycle56

54 Dilip Chenoy, director general of Society of Indian Automobile Manufacturers (http://www.harley-

davidson.com/wcm/Content/Pages/HD_News/Company/newsarticle.jsp?

locale=en_US&articleLink=News/0525_press_release.hdnews&newsYear=2009&history=news)55 Harley-Davidson Motor Company President and Chief Operating Officer, Matthew Levatich, at the Society

of Indian Automobile Manufacturers annual convention on August 28 (http://www.harley-

davidson.com/wcm/Content/Pages/HD_News/Company/newsarticle.jsp?

locale=en_US&articleLink=News/0525_press_release.hdnews&newsYear=2009&history=news)56 http://answers.yahoo.com/question/index?qid=20070926160256AAEgerQ

U109110 Binay MM-I Term1 Assignment

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