2.  Harley-Davidson was formally established by William S. Harley and Arthur
Davidson in 1907.
 Headquarters in Milwaukee, Wisconsin, U.S.A.
 Global intentions of Harley-Davidson manifested in 1912 when it started
exporting to Japan.
 Prominent customers include : U.S military
 Global Objective : Selling at least 40% of its bikes
outside U.S.
 Total sales (in 2012) :2,49,849 bikes.
 Revenue : US $ 5.31 billion (2012)
 More than a million members in
Harley Owners’ Group (H.O.G) across
the world.
 International dealer network comprising more
than 100 dealers.
HARLEY-
DAVIDSON
BRANDS
FAT BOY
STREET-
GLIDE
ELECTRA
GLIDE
ROAD
KING
IRON
883

3. Political
•More politically stable and business friendly geographies
•Markets having flexible bureaucratic structure
•Countries having huge defense market can offer an additional sector to Harley which already carries a
legacy of supplying motor bikes to the world’s strongest military
Economical
•Open economy, lesser trade barriers like tariffs and quotas on imported items
•Emerging market economies with a pinch of LPG
•Markets having developed infrastructure
Social
•Society with a high demographic dividend
•High disposable income and an increasing propensity to spend for fulfilling the desires
•Passion for biking and liking for MADE IN U.S
•Harley has a very high brand resonance with “freedom” ,”Liberty” and “Fraternity”. Thus, a
society having an inclination towards these concepts will be an ideal market for Harley.

4. Technology
•Harley follows a “Brick and Click” model world wide so a market which offers high internet
penetration will be highly preferable
•Availability of 97 OCTANE fuel in the market as it is primary fuel for Harley Davidson motor
bikes
Environment
•Markets having liberal emission norms for bikes having more than 500 cc engine.
•Markets excepting EURO -3 emission standards.
Legal
•Markets having proper licensing and regulatory bodies.

5. How does
Harley’s
business
compare to it’s
competitors ?
How many
customers are in
the market ?
Do these
customers are
having money
to spend?
How many
competitors are
competing for this
business?
Do these
customers have
the need that
Harley Davidson
solves?

6. Yes No

7. Category Annual Income (INR) Number of House
Holds
Super Rich 10 million + 120,000 – 150,000
Sheer Rich 5-10 million 200,000
Clear Rich 1-5 million 2,80,000
Source: From Case

8. Luxury Assets
Luxury
Services
Luxury Retail
•Cars & Two Wheelers
•Luxury Homes
•Yachts
•Spas
•Luxury Hotels
•Artwork
•Apparels
•Watches
•Electronics
62%
21%
17%

9. • Segment which purchase for their superior
Functionality and Quality.
• Take Longer Decision Making Process.
Luxury As
Functional
• Segment which purchase in order to showcase
their achievements.
• Motivated by their desire to be successful.
Luxury As
Reward
• Segment which purchase to self-indulge.
• Willing to pay premium for good and express
their individuality.
Luxury As
Indulgence

10. Harley
Davidson
High Spare Parts
and
Logistic Cost
Competition in
Super Bike
Segment.
53% of Indian
Luxury Buyers in
age bracket of
25 to 34 years.
Lack of Trained
Mechanics

11. Stringent emission
norms
High import duties
No Direct
Marketing channel
Competitive forces
Challenges

12. Zero level channel
•Dealership model
•Strong dealership model for market penetration
Stringent Emission norms
•Euro III
Import duties
•Tariff Rate Quotas, second fully owned subsidiary outside US
•Completely Knocked Down strategy

13. Competitive forces
•Localization, pride in V-twin engine
•Completely knocked down operation
Diversity
•Avenue for varied models
•Brand building
Post selling issues
•Transportation, Dearth of trained mechanics
•Service centre, Spare parts

14. Post selling transportation
•Collaborating with existing distribution channels
Dearth of trained mechanics
•Proper trained mechanics by Harley specialists – can support WOM
Expensive spare parts
•Need to outsource, but dangers of brand dilution

17. 58%
42%
Want to own a super bike
YES
NO
57%
43%
Do you know about Harley
Davidson India
YES
NO
0 20 40 60 80 100
Tier I
Tier II
Tier III
NO
YES

18. " I am a bike fan but not actually a Harley Davidson follower
...when I was purchasing my new bike ..like few months ago I
visited both the showrooms in Bandra West ...there the Royal
En-field and HD showrooms were opposite to each other ..I
went inside both of them ..but some how I felt the sales people
had a mental block with people of middle -class not that
forthcoming I would say... ..also I took a free bike ride in the
En-field, though I knew there were free bike rides in HD also
but there it was no where advertised or shown outside the
showroom ..unlike in the Royal En-field ...I would say there is
still an awareness problem" ......excerpts from interview ..
Mr. C.P. Bijukrishnan Senior Manager Tata Power Age 42

19. “I know they have showrooms in the main tier 1 cities right? They sell
merchandise already there don't they? Which is always good but never
good enough. You want to sell hardware not key chains i know they have a
sub 10lakh model…..not sure if it's a CKD or not…
but if they can keep lowering the price point till maybe they have
something at say a 2-3 lakh price point that's still quintessentially Harley
without sacrificing quality big ask…Also .. they didn't come to India to sell
perfumes and hats now did they? They’re primarily here to sell bikes…
Your sole point is about price ?
“not exactly it also has to do with the type of bike
Sportster at a push but rest is all cruisers and choppers of various shapes
and sizes Especially fat boy not a superbike. You'll die
trying to go at high speeds on that on anything but a
dead straight road They're meant for grand touring….”
# Arka Dyuti Sarkar; Age:- 22; Student :- Imperial College London ;
Ardent Follower of cars and bikes

20. “ Yes of course I know about Harley Davidson India …that day in
Andheri I saw a big guy ..with tattoo all over his body riding the
V rod …they are conducting a road trip in Nashik on 13th April
..the H.O.Gs ..u know ?? yeaah ..i seriously believe that if I had
to purchase a Harley it would do it outside India ..where are the
roads in India , the condition is very bad !!! ..there they conduct
the grand touring from Mumbai- Pune expressway where even
three wheelers are not allowed ..there they pay fine and ride
their Harleys ….regarding advertisement I have not
seen any except that before they conduct their grand
tourings they advertise on paper” ...
# Mr. Dayanand Srinivasan Age:- 26 yrs ; Quality and
Testing Engineer Aditya Birla Group;
A regular viewer of the Harley Bike Rally Mumbai