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Harley Davidson
                     Market Entry
                       Strategies
                            In
                          India




Live to Ride , Ride to Live
PRESENTED BY :-
              DHARNA JOSHI



              JAYA JENNIFER
              JOSHI


              HARSH YADAV


              SWAYAM DATTA


              PANKAJ MUNDRA



              SAURBH RATHORE
Overview
 Indian Motorcycle
Industry

 Introduction of H-D

 H-D’s struggle

 Marketing strategies
to enter India

Current scenario in
India

 Future Aspect
Indian Motorcycle Industry
Shift from other two-wheelers like
scooters and mopeds to Motorcycles
due to rise in income levels

Other drivers- Advanced technology,
ability to perform on rough roads, new
brands, auto financing and service
networks

Major driving force is- Economic
Development of the economy

Market players have reduced prices,
introduced freebies and improved
brands- wide choices
Emerging Market
The ‘First New Motorcycle Buyer’ is the
largest market for motorcycles

Higher engine capacity is the criterion for
future purchase

‘Auto Mission Plan 2006-16’ by Indian
government to make India a global
production hub

Reduction in the excise duties is also one
of the agendas
Introduction
o Harley-Davidson   often
abbreviated H-D or Harley is
an American motorcycle
manufacturer. Founded in
Milwaukee, Wisconsin, during
the first decade of the 20th
century.

o The company sells
heavyweight(over 750 cc)
motorcycles designed for
cruising on the highway.

oSymbol of ‘rugged
individualism, freedom and
rebellion’
Struggle in India
H-D attempted to enter India in September
2005 because of growing motorcycle
market at a faster pace

Through Sourcing route

Plan was hampered due to high import
duties and stringent emission norms in
2005

H-D tried to negotiate 1) Fresh issuance of
licenses for opening branches of ICICI,
SBI and BOB in US 2) to start the import
of mangoes banned earlier
Marketing Strategy in India
Post liberalization, Foreign investors can enter in the
form of liaison office, in the form of joint venture and
a wholly owned subsidiary.

H-D opted for Wholly Owned Subsidiary option-to
attract a major initial investment for infrastructural
development

Strong inclination to Source Route
Objectives
 To gain share in the Indian Market and be revered as
 a brand.

 To gain market share by creating and meeting needs
 of a ‘Harley Experience’ in the Indian Market.

 To create Loyal Harley Biker’s Community in India.
Identifying the Customers
                                            Age 27-35 Years
                                            Income 20-22 lakhs
Sportster Series-             XL
                                            Behaviour-Speed
                                            Enthusiast,Style
                             883L
                                            Oreiented


                                      XL       Age 27-35 Years
                                    1200N      Income 20-22 lakhs
                                               Behaviour-Sport
                                               Lovers,Street Bikers

                                            Age 27-35 Years
                                            Income 24-26 lakhs
                                XL          Behaviour-
                               883R         Dreamers,Experience
                                            Riders
                                Age 27-35 Years
                     XL         Income 24-26 lakhs
                    1200 X      Behaviour-Dreamers,Experience
                                Riders
H-D’s Vision for India
According to Industry watchers, the Harley bikes
would range between Rs 4 lakhs to Rs 14 lakhs in
India, including the 60 per cent import duty. "As
India's economy takes bigger strides, a younger
population with expendable income are embracing
luxury as never before.

Maybe 10 years out it will be more fertile, it’s a hope
and prayer at this moment.
Market Targets
  Quality Lead Generation:
 Engage the prospective customers at places they
  are likely to visit: Auto-Expo, Yacht Clubs,
  Golf Clubs, Hard Rock Café’s and then collect
  contact information there.
  Hospitality Segment:
 Hoteliers, Resort owners in tourist destinations
  are always looking to add new luxury items into
  their fleet for their clients to indulge into leisure.
Contd.
Loyal Biking Community:
One must drive lessons from social networking
websites. Invites for friends, recommend Harley
Experience to a friend.
Festive season:
Harley Davidson can organize parties that leave
an impression on the attendees. Few of these
attendees will certainly be induced into buying a
Harley if they are made to engage with the
Brand while attending these parties.
MEDIA ADVERTISING
MEDIA ADVERTISING
    ADOPTED
    ADOPTED
       BY
        BY
     HARLEY
     HARLEY
 DAVIDSON(INDIA))
 DAVIDSON(INDIA
Future Aspect
It would prove favorable because of population

H-D has to position itself as a status symbol, as an
expensive accessory

H-D is likely to face mechanical problems which
would require careful maintenance

Major problem can be fuel efficiency as Indian
customers are mileage conscious.

Records in Europe say that it has not done well
on curve roads
Continued.
Major constraint will be competition from Yamaha,
Honda and Suzuki

Very high price also hinders sales- the cheapest H-D
costs 0.4 million in India- cost of two Maruti 800 cars.

Competitor Royal Enfield bike is not that expensive.
Its costliest bike is of rs. 93,200

Royal Enfield’s price may hinder H-D’s business as it
did to BMW-Hero joint venture

Competitor Honda would do well because it has a wide
network of dealers and an on-going business would
also sell high end bikes in good numbers
Current Scenario in INDIA
 Manufacturing Plant :- Rewari in Khushkera (Rajisthan)

 Assembly plant

 Import duties reduced to 30%

 Headquarters :- Gurgaon Haryana

 Founded :- 2009

 9 outlets
Events
THANK YOU

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Harley davidson

  • 1. Harley Davidson Market Entry Strategies In India Live to Ride , Ride to Live
  • 2. PRESENTED BY :- DHARNA JOSHI JAYA JENNIFER JOSHI HARSH YADAV SWAYAM DATTA PANKAJ MUNDRA SAURBH RATHORE
  • 3. Overview  Indian Motorcycle Industry  Introduction of H-D  H-D’s struggle  Marketing strategies to enter India Current scenario in India  Future Aspect
  • 4. Indian Motorcycle Industry Shift from other two-wheelers like scooters and mopeds to Motorcycles due to rise in income levels Other drivers- Advanced technology, ability to perform on rough roads, new brands, auto financing and service networks Major driving force is- Economic Development of the economy Market players have reduced prices, introduced freebies and improved brands- wide choices
  • 5. Emerging Market The ‘First New Motorcycle Buyer’ is the largest market for motorcycles Higher engine capacity is the criterion for future purchase ‘Auto Mission Plan 2006-16’ by Indian government to make India a global production hub Reduction in the excise duties is also one of the agendas
  • 6. Introduction o Harley-Davidson often abbreviated H-D or Harley is an American motorcycle manufacturer. Founded in Milwaukee, Wisconsin, during the first decade of the 20th century. o The company sells heavyweight(over 750 cc) motorcycles designed for cruising on the highway. oSymbol of ‘rugged individualism, freedom and rebellion’
  • 7. Struggle in India H-D attempted to enter India in September 2005 because of growing motorcycle market at a faster pace Through Sourcing route Plan was hampered due to high import duties and stringent emission norms in 2005 H-D tried to negotiate 1) Fresh issuance of licenses for opening branches of ICICI, SBI and BOB in US 2) to start the import of mangoes banned earlier
  • 8. Marketing Strategy in India Post liberalization, Foreign investors can enter in the form of liaison office, in the form of joint venture and a wholly owned subsidiary. H-D opted for Wholly Owned Subsidiary option-to attract a major initial investment for infrastructural development Strong inclination to Source Route
  • 9. Objectives To gain share in the Indian Market and be revered as a brand. To gain market share by creating and meeting needs of a ‘Harley Experience’ in the Indian Market. To create Loyal Harley Biker’s Community in India.
  • 10. Identifying the Customers Age 27-35 Years Income 20-22 lakhs Sportster Series- XL Behaviour-Speed Enthusiast,Style 883L Oreiented XL Age 27-35 Years 1200N Income 20-22 lakhs Behaviour-Sport Lovers,Street Bikers Age 27-35 Years Income 24-26 lakhs XL Behaviour- 883R Dreamers,Experience Riders Age 27-35 Years XL Income 24-26 lakhs 1200 X Behaviour-Dreamers,Experience Riders
  • 11. H-D’s Vision for India According to Industry watchers, the Harley bikes would range between Rs 4 lakhs to Rs 14 lakhs in India, including the 60 per cent import duty. "As India's economy takes bigger strides, a younger population with expendable income are embracing luxury as never before. Maybe 10 years out it will be more fertile, it’s a hope and prayer at this moment.
  • 12. Market Targets Quality Lead Generation: Engage the prospective customers at places they are likely to visit: Auto-Expo, Yacht Clubs, Golf Clubs, Hard Rock Café’s and then collect contact information there. Hospitality Segment: Hoteliers, Resort owners in tourist destinations are always looking to add new luxury items into their fleet for their clients to indulge into leisure.
  • 13. Contd. Loyal Biking Community: One must drive lessons from social networking websites. Invites for friends, recommend Harley Experience to a friend. Festive season: Harley Davidson can organize parties that leave an impression on the attendees. Few of these attendees will certainly be induced into buying a Harley if they are made to engage with the Brand while attending these parties.
  • 14. MEDIA ADVERTISING MEDIA ADVERTISING ADOPTED ADOPTED BY BY HARLEY HARLEY DAVIDSON(INDIA)) DAVIDSON(INDIA
  • 15. Future Aspect It would prove favorable because of population H-D has to position itself as a status symbol, as an expensive accessory H-D is likely to face mechanical problems which would require careful maintenance Major problem can be fuel efficiency as Indian customers are mileage conscious. Records in Europe say that it has not done well on curve roads
  • 16. Continued. Major constraint will be competition from Yamaha, Honda and Suzuki Very high price also hinders sales- the cheapest H-D costs 0.4 million in India- cost of two Maruti 800 cars. Competitor Royal Enfield bike is not that expensive. Its costliest bike is of rs. 93,200 Royal Enfield’s price may hinder H-D’s business as it did to BMW-Hero joint venture Competitor Honda would do well because it has a wide network of dealers and an on-going business would also sell high end bikes in good numbers
  • 17. Current Scenario in INDIA Manufacturing Plant :- Rewari in Khushkera (Rajisthan) Assembly plant Import duties reduced to 30% Headquarters :- Gurgaon Haryana Founded :- 2009 9 outlets