Harley Davidson Case Final

8/8/2019 Harley Davidson Case Final

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Harley Davidson

A Debacle in Europe !

Group – 9

Priyanka Hans (46)

Puneet Vishwas (47)

Rajesh Jha (48)

Rajiv Piplani (49)

Rajneesh Panwar (50)



Does the Image Justify the Prices ?

“I would rather push a Harley than

drive a Honda”!



Harley Davidson (HD) Corporation

Mission Statement

“To fulfill the Dreams through the

experience of motorcycling, by providingthe motorcyclist and the General Public an

expanding line of motorcycles, and

branded products and services in selected

market segments”

A clear cut Contradiction !!



HD Corporation

Offerings :

• Complete range of motorcycles

• Spare Parts

• Accessories

• Apparel

• General Merchandise

• Preparing Future Generation of HDEnthusiasts



HD Brand Image

Strengths : Strong Image and Sound customer base

• Traditional Looks

• Sound• 100 yr Legacy and Heritage

HD is an All American Symbol of :

• Desire for Freedom

• Adventure

• Individualism



HD Customer Relationships

• Variety of programs thru Harley Owners

Group

• Daytona Bike Week

• Motor Shows

• Rallies



HD Weaknesses

• Facing Stiff competition from Honda and

Yamaha

• Small Production Capacities

• Unfulfilled Demand for their products

• “Own an American Icon” Slogan



HD Threats

• Sales are declining as the Average Age isincreasing.

HD New Developments

• Releasing new motorcycles :Buell” for Young Professionals and Women !!

(Women buyers are just 10% ) as per Motor cycleindustry Council.



HD Pricing

• Charges 30% premium over all other players.

• International Markets – 25% of share except

European Union.

• HD could not get a respectable share in Europe.

• Europe Likes Cruiser Bikes of Harley but not the

aggressive prices.

• Some bikes shipped back to US due to lack of demand.



European Market Share

BMW

20%

Harley

9%

Yamaha

24%

Suzuki20%

Honda

27%



Question & Answers

Analysis & Recommendations



Harley Pricing Objective

Based on the 4 Cs of Price Variations :

• Company Goals – Here the company’s goal is not to make extra profits but to project

a premium image.

• Company’s Cost – Not relevant in Harleys case.

• Customer Demand : is a function of buying power, tastes,habits and substitutes. – Customers in EU have buying power, habits & substitutes but do

not have similar tastes.

• Competition – Harley feels that there is a little competition in the premium

segment.

Harley Need to Redefine the objectives





Global Positioning Strategy- HD

1

33

22

44

Segment

Uniform Different

Unifor

m

Differen

t

Posit io

nTheme

s



Global Positioning Strategy- HD

• HD adopted Uniform Segment Uniform theme

“Hedonism” for positioning the Bikes.

• HD was positioned considering Global Consumer Culture

similarity of Individualism, Musculanity, Adventurism and

Close Power Distance.

• “Own an American” and pay premium for the same had its

own doubts of success.

• Among the peers HD was positioned “Premium Bikes” vis-

à-vis Japanese and German Bikes.

• Wrong positioning and premium pricing led to low market

share and sales return in many cases.



Price Alteration ?

• Mere Price Alteration may not improve

market share for HD.

• Thus a Balance between Pricing and

Positioning mix may be a better

alternative.



Action Plan for Europe ?

• HD needs to get associated with European people.

• “Universal Segmentation and Different PositioningTheme” is better option.

• Standardised Product but adapted communication can

be a better product.• “Own an American” can be replaced with “Harley

Davidson for Europe” or “European Harley”.

• HD to initiate assembly of Bikes in Europe to economise

the cost and to justify the European Association.• HD should respond to the EU need by selling at

competitive prices to create loyalty and then it can takeup the Hedonistic Approach of driving experience.



Thank You

Harley Davidson Case Final

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