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Brand Analysis of Harley Davidson (from Indian perspective).

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Brand Analysis of Harley Davidson (from Indian perspective).

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I have attempted a brand analysis of one of the giants in Automobile sector: Harley Davidson. This analysis is done keeping in mind the Indian market. The brand is doing great globally but to get dominance in the Indian market, it needs to understand India's consumer behavior because India is not like any other market. They need to be more flexible in their framing their strategic plans. The competition between HD and Royal Enfield is exciting for the consumers as well as marketers. Well, i wish that the best marketer may win!

I have attempted a brand analysis of one of the giants in Automobile sector: Harley Davidson. This analysis is done keeping in mind the Indian market. The brand is doing great globally but to get dominance in the Indian market, it needs to understand India's consumer behavior because India is not like any other market. They need to be more flexible in their framing their strategic plans. The competition between HD and Royal Enfield is exciting for the consumers as well as marketers. Well, i wish that the best marketer may win!

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Brand Analysis of Harley Davidson (from Indian perspective).

  1. 1. A Brand Analysis report on By: Jay Shah, FMS-B *From Indian Market Perspective
  2. 2. Brief introduction of the company: Harley Davidson is among the top motorcycles producers in the world. They not only produces motorcycle but also produce boat, t-shirt, bag, leather Jacket, Safety helmet and kind accessories, etc. 3
  3. 3. Timeline (Brief History) 4 1901: William S. Harley, age 21, completes a blueprint drawing of an engine designed to fit into a bicycle. 1903: William S. Harley and Arthur Davidson make available to the public the first production Harley-Davidson® motorcycle. 1906: The first motorcycle catalog is produced by the Company and the nickname "Silent Gray Fellow" is used for the first time. 1907: William A. Davidson, brother to Arthur and Walter Davidson joins the Motor Company. Harley-Davidson Motor Company is incorporated on September 17th.
  4. 4. 5 1910: The famed "Bar & Shield" logo is used for the first time. It is trademarked at the U.S. Patent Office one year later. 1914: The Motor Company formally enters motorcycle racing this year. The first Racing Engineer is William S. Harley. Within a few short years, team HD is referred to informally as the "Wrecking Crew" because of their incredible dominance of the sport. 1916: The Enthusiast begins its reign as the longest continuously published motorcycle magazine in the world. 1920: HD is the largest motorcycle manufacturer in the world. New Harley-Davidson® motorcycles can be purchased from over 2,000 dealers in 67 countries worldwide.
  5. 5. 6 Leslie "Red" Parkhurst breaks 23 speed records on a HD 61 cubic inch racing motorcycle. Also, the "hog" association starts when the racing team's mascot, a pig, is carried on a victory lap after each race won by the team. 1925: Gas tanks on all models now have a distinct teardrop shape. This basic appearance is set for all subsequent HD motorcycles. Joe Petrali begins racing for Harley-Davidson. He would become one of the most successful dirt-track racers for HD, and one of the most successful racers of all time. 1931: All of HD's remaining American competition is now gone except Indian (Hendee Manufacturing). Indian and HD are the only two American motorcycle manufacturers until 1953.
  6. 6. 7 1933: An art-deco "eagle" design is painted on all gas tanks. This styling decision was made in part to stimulate the low sales numbers caused by the Great Depression. 1935: The Japanese motorcycle industry is founded as a result of Harley-Davidson licensing blueprints, tools, dies and machinery to the Sankyo Company of Japan. The result is the Rikuo motorcycle. 1946: Harley-Davidson introduces the 45 cubic inch flathead WR racing motorcycle. It proves to be one of the best racing motorcycles ever built. 1947: Harley-Davidson begins selling what will become the classic black leather motorcycle jacket.
  7. 7. 8 1953: HD celebrates its 50th Anniversary in style. Hendee Manufacturing, the creator of the Indian motorcycle, goes out of business. 1957: The motorcycling public met a new motorcycle called the Sportster® known as the first of the "Superbikes." Another Harley-Davidson tradition and legend is born. 1960: The Harley-Davidson Topper motor scooter is introduced and is the only scooter platform the Motor Company ever produced. 1969: Harley-Davidson merges with the American Machine and Foundry Company (AMF), a longtime producer of leisure products.
  8. 8. 1982: The Materials As Needed (MAN) application is introduced to production. 1983: Birth of Harley Owners Group® (H.O.G.)® the Group immediately becomes the largest factory-sponsored motorcycle club in the world. 1987: Harley-Davidson is listed on the New York Stock Exchange. 1993: Harley-Davidson buys a minority interest in the Buell Motorcycle Company. 2005: Harley-Davidson and the Muscular Dystrophy Association (MDA) mark the 25th anniversary of their partnership.
  9. 9. 10 2008: The all new Harley-Davidson Museum opens in Milwaukee . It showcases hundreds of classic and custom motorcycles, interactive exhibits and never-before-seen films and photographs. 2009: Harley-Davidson announces expansion into India.
  10. 10. 11 MISSION We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments.
  11. 11. VISION HD, is an action-oriented, international company, a leader in its commitment to continuously improve our mutually beneficial relationships with stakeholders . HD believes the key to success is to balance stakeholders’ interests through the empowerment of all employees to focus on value-added activities.
  12. 12. Harley-Davidson is: •Fierce individuality •Rebellion against things that are unjust •Different •Innovative •Fearless in the face of danger •Brave •Seeking a better life •Free spirited •Wild •Seeking escape •Adventurous
  13. 13. MANAGEMENT • Excellent Corporate Governance has been a long standing business practice at HD, because it makes good business sense. • The HD Management and Board of Directors is composed of accomplished leaders from a range of industries who meet regularly to review Company objectives and plan for future growth. • These individuals draw on their diverse backgrounds and experiences. • They are proud HD enthusiasts, and they work to ensure that the decisions made by HD promote fairness, financial transparency and accountability to all our shareholders .
  14. 14. HUMAN RESOURCE: Key points  Incidents that may involve a potential conflict of interest.  Disclosure of any waivers of any conflict of interest.  Regular reports to the Board.  Reassess annually the Human Resources Committee performance.  Establish subcommittees and delegate authority to such subcommittees.
  15. 15. HUMAN RESOURCE: Key points  Committee Duties and Responsibilities is to review  Total compensation  Career development and management succession plans  Make recommendations regarding the selection and retention of officers
  16. 16. Target Market  “Typical” Harley Owner: White males over the age of 35 with annual incomes over $80,000.  Anyone with potential to become loyal to the brand and the Harley-Davidson community New focus on “outreach customers” – young adults, women, African Americans, Hispanics, Asians.  The median age of the Harley owners in India is between 35 and 45 years. They can afford its bikes which range from Rs 5.6 lakh (883 cc) to Rs 35.45 lakh (1800 cc). The customers are mostly working executives who ride out in the weekends and holidays.
  17. 17. Brand Positioning Positioning Statement : To free-spirited adventure- seekers looking for personal freedom, Harley-Davison is the brand of experiential entertainment that fulfills dreams through the experience of motorcycling and a strong, exclusive community. The brand values deep emotional connections and brand loyalty, which is built through premium products, services, and experiences. "Since July 2010, we have sold 1,000 bikes in India, 60% of which are our 883 cc entry level bikes. Customers prefer the Iron 883 because of its 'bad boy' design. HD is an iconic, lifestyle brand and Indian consumers understand that " said Anoop Prakash, MD, HD India.
  18. 18. The Branding Ladder Repurchase Within Brand Family First Purchase Choice Set Consideration Model Awareness Brand Awareness
  19. 19. 20 What are the 4 P’s of Harley-Davidson?  Product: 13 models available in India. Following types of products: Touring bikes Sportster Motorcycles Fire Rescue Motorcycles Trikes Used bikes
  20. 20. 21  Price: The prices of HD bikes range from Rs 4.1 lakhs to Rs 29 lakhs.  Place: 13 dealerships across India: New Delhi, Chandigarh, Mumbai, Hyderabad, Bangalore, Chennai, Kochi, Kolkata, Ahmedabad, Indore, Pune, Goa, Jaipur.
  21. 21. 22  Promotion: HD has implemented several strategies to promote its motorcycle brand. The products were sold to retail customers mainly through dealer promotions and customer events. Along with the advertising tactics through national television, print, radio, direct mailings and the internet. The Dealer meetings are held HOG meets are also taking place Various AutoExpo’s are targeted
  22. 22. Typical HD Marketing Budget Spent:
  23. 23. Product Life-cycle Sales&Profits(Rs.) Introduction Growth Maturity Decline TIME HD is in the Growth stage at the moment in India. While it has achieved the Maturity stage in USA decades ago.
  24. 24. Brand extensions  Merchandise  Helmet  Boats  Clothes (Jackets)  Mugs  Collectibles  Lighter  Watch  Beer  Bars
  25. 25. Product extensions • Motor Cycles • Bike accessories
  26. 26. HD and Japanese competition: In the early eighties, HD claimed that Japanese manufacturers were importing motorcycles into the US in such volume as to harm or threaten to harm domestic producers. Rather than trying to match the Japanese, the new management deliberately exploited the "retro" appeal of the machines, building motorcycles that deliberately adopted the look and feel of their earlier machines and the subsequent customizations of owners of that era. Many components such as brakes, forks, shocks, carburetors, electrics and wheels were outsourced from foreign manufacturers and quality increased, technical improvements were made, and buyers slowly returned.
  27. 27. Fostering Consumer Dialogue 28 ► Consumer-Brand Bonds: Offset consumer differences by focusing on the one thing they have in common - their love for the brand. ► Consumer-Consumer Bonds: Nurture and direct dialogue to strengthen bond between consumers ► Consumer-Firm Bonds: Touch each aspect of the consumer‘s experience “Close-to-the-consumer” philosophy ► Consumer-Product Bonds: Highlight commitment to evolving product over time while keeping essential elements that make it unique
  28. 28. INTENSIVE STRATEGIES 1) Market Penetration 2) Product Development 3) Market Development
  29. 29. MARKET PENETRATİON  Get some more market share from the existing market(U.S, U.K, and Japan) Use more E-marketing Expand the HOG (Harley Owners Group) to India If the company can provide the customer satisfaction that they are providing to the U.S customers to the Indiancustomers they can increase the sales
  30. 30. 31 PRODUCT DEVELOPMENT Females and Younger generation are now coming to this segment so expand the motor cycle segments to younger generation and females.
  31. 31. 32 MARKET DEVELOPMENT Harley-Davidson can bring in their vehicles to India because it has a high population and the market potential is also high. The cost to bring in the old vehicles (old product) to India is so much difficult: - There are so much environmental laws - Taxes are problems - Levis are high in India
  32. 32. INTEGRATION STRATEGIES o VERTICAL INTEGRATION o HORIZONTAL INTEGRATION
  33. 33. Vertical Integration Just-in-time manufacturing HD has been backward integrating to maintain control over the quality of suppliers HD owns most of its distributors HD is responsible for the delivery of parts and accessories
  34. 34. Horizontal Diversification ICICI Bank and HDFC Bank provides motorcycle financing, motorcycle casualty insurance and extended service contracts for HD. They also issue the HD Chrome VISA Card, allowing riders and customers to show their brand loyalty.
  35. 35. MICHEAL PORTER ANALYSIS Five Forces Analysis Forces Strategic Significance Internal Rivalry LOW-MODERATE Threat of New Entrants MODERATE Threat of Substitutes Products HIGH Bargaining Power of Buyers MODERATE-HIGH Bargaining Power of Supplier HIGH
  36. 36. When looking at the rivalry from competitors, Harley-Davidson is doing very well domestically but in the India, larger motorcycles are not used as frequently as are smaller and more efficient bikes, leading to a lower market positioning. When analyzing the potential new entrants to the motorcycle industry, one must look at it both from a domestic and global perspective. When analyzing the potential new entrants to the motorcycle industry, one must look at it both from a domestic and global perspective.
  37. 37. COMPETITION IN INDIAN MARKET
  38. 38. SWOT analysis Strong marketing Product Quality Brand Recognition Trademark Licensing Supplier relationship Designer Store Service Distribution Channel Wow Biking experience! Strengths
  39. 39. Weakness Price factor Brain drain Reliant on few suppliers Market share Ongoing capacity constraints Lengthy lead time
  40. 40. Opportunities The Indian market will sooner become larger than the U. S market Customers turning towards value quality parts. Women and younger riders are increasing becoming interested in bikes. Industry registrations of heavyweight motorcycles are increasing.
  41. 41. Threats Harleys ongoing capacity restraints Competitors of Harley Davidson Environmental protection laws Higher production Costs Recession
  42. 42. STRENGTHS Customer retention Financial position Product selection Premium market share Dealer Network OPPORTUNITIES Increasing number of riders Indian industry growth Youth population Asian industry growth THREATS Union relations Govt. laws Competitor diversification Availability substitutes WEAKNESSES Dealer inventory system Overall market share Expensive product Product selection International dealer
  43. 43. SWOT Analysis 1. S-O Strategies a) Expand production of India b) Expand marketing to female riders 2. S-T Strategies a) Increase strong brand name 3. W-O Strategies a) Pursue foreign markets more agressively 4. W-T Strategies a) Improve employee relationships
  44. 44. GRAND STRATEGY MATRIX QUADRANT:2 QUADRANT :1 QUADRANT:3 QUADRANT:4 Weak Competitive Position Strong Competitive Position Rapid Market Growth Slow Market Growth
  45. 45. INTERNAL FORCES • To determine HD’s strengths and weaknesses, an internal assessment is required • Harley only has 7.7% of European market share (the second largest motorcycle market in the world), and 25.3%of the Asia/Pacific region • Harley-Davidson’s strengths are in the U.S. market, as 80% of Harley’s net revenue comes from U.S. sales • Harley was viewed as sub-par when compared to British motorcycles • Harley has a reputation for style and quality
  46. 46. INTERNAL FORCES (cont.) • HD also introduced water-cooled engines, fuel injection, and catalytic converters to improve exhaust emissions • Harley’s strength in this area is largely due to its marketing abilities in the U.S. market • Harley customers are extremely loyal to their brand and 90% of Harley owners intend to purchase another Harley • Management information systems could be used to more effectively manage inventory at Harley. This is currently one of HD’s few internal weaknesses
  47. 47. 2011 Worldwide Retail Sales of HD Motorcycle Sales Unitedstates Europeanregion Asia pacific region Canada LatinAmerican region
  48. 48. HD’s connection with Sturgis • Sturgis is a city in Meade County, South Dakota, United States. • The population was 6,627 as of the 2010 census. • It is more popular than some city in the USA
  49. 49. • The Sturgis Rally is a motorcycle rally held annually in Sturgis each first full week of August. • It is the biggest motorcycle rally in the world. • A lot of people comes from thousands of miles of distance.
  50. 50. MARKETING STRATEGIES Expand into Foreign Markets India Europe Product Development Expand Motorcycle line for younger market  Target female customers Buell expansion Concentric Diversification Other recreational vehicles Expand HOG and BRAG owner member groups
  51. 51. MARKETING STRATEGIES Made new alliances with some local bike companies to produce low cost Utilize the ‘Make In India’ drive Increasıng dıversity programing Tour Museum  Increase the advertising
  52. 52. CONCLUSION • Harley- Davidson has to adopt Indian culture or at least try to understand its customer’s psyche. • Must implement latest technology & facilities. • Loyal customers are not sufficient for company to survive. • “It’’s a journey but not a destination”
  53. 53. Sources: -HD website -The Times of India -The Economic Times -The Hindustan Times -The Live Mint -Wikipedia
  54. 54. Thanks Thank you for your precious time & attention.
  55. 55. For more such articles, presentations & providing your feedback drop a mail at: jayshah316@gmail.com Follow @jayshah316 www.jayshah316.blogspot.com Connect on Linkedin & Facebook : jayshah316@gmail.com
  56. 56. American Legend ready to rock you India!

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