Harleydavidsonbrand

HARLEY -DAVIDSON INDIALEVERAGING THE BRAND ADVANTAGE

THE RIDERS-PARVEEN CHOUDHURYARNIKA MINZ

The BEAST

• Harley Davidson is not a basic transport vehicle, it is a LIFESTYLE LUXURY product aimed at the premium segment in India.

• Iconic motorcycle manufacturer from U.S.• Symbol of rugged individualism, freedom and

rebellion.• The company sells heavy weight cruiser

motorcycle in luxury motorcycle segment.• India, as one of the two top markets in Asia

Pacific region.

• HD operated in two segments- MRP unit & FS unit

• MRP unit- motorcycle, parts, accessories and related merchandise

• FS unit- retail financing and insurance to dealers and retail customers in U.S & Canada

The BEAST

THE HISTORY

1900’S -SERIAL NUMBER ONE

William S. Harley and Arthur Davidson make available to the public the first production Harley-Davidson® motorcycle.

2010’S-It softened its outlaw image just enough to entice a new generation of clean-cut buyers to join a club that had long been synonymous with the Hell's Angels -- yet without taking away the frisson of excitement that came from being a member.Indeed, membership now doesn't even require a driver's license.

BRAND IDENTITIES

• The characteristic H-D sound(pot-pot-pot). Some say the noise is patented.

• The famed "Bar & Shield" logo patented in the 1900’s.• GRAPHIC DESIGNS ON HARLEY-DAVIDSON ® MOTORCYCLES

An art-deco “eagle” design is painted on all gas tanks. This styling decision was made in part to stimulate low sales numbers caused by the Great Depression.

• Wartime vehicle.• Modern merchandising.

The sweet smell of failure

Harley Davidson – Brand ValuesFreedom – Go wherever you want to, whenever you want to.Authenticity – Noted for the tradition of heavy customization, Oldest and quality name in manufacturing bikes.Community Building– HOG has 1.4 million members, Ride Planner to plan trips, H-D Photo Center for posting photos of memorable trips.Rituals – Community festivals and monthly or annual rides/events are conducted regularly, buttons and pins from an activity/event are worn on jackets.Masculinity – Unique sound of the exhaust, association with icons in films.Toughness – Rugged heavy design and look of the bikes.

BRAND IDENTITIES

PERSONALITYPHYSIQUE

CULTURERELATIONSHIP

SELF IMAGE

REFLECTION

•American spirit•Individuality•Freedom•Rebellious

•Joy of individualism•Commitment to adventure•Reward of fulfilment

•Rebel, bad-ass

•Inventive design•Custom cruiser•Loud and powerful engine•Dealer development

•HOG•Harley is not for everyone

•For love of the open road

BRAND IDENTITY PRISM

Model families of HD-

• Touring• Softail• Dyna• Sportster• Vrod • Street.

These model families are distinguished by the frame, engine, suspension, and other characteristics.

PRODUCT EXTENSION

• Bike accessories

• Buell motorcycle: wholly owned subsidiary of HD by 2003(closed now)

PRODUCT EXTENSION

• MerchandiseHelmetJacketLighterMugWatch• Beer• Bar

HD-India

• 2010-1st showroom in Hyderabad• 1st assembly facility in Haryana- reduced import

tariff and retail price• By mid 2012, HD offered 15 models• Govt of India rejected the demand for reduced

import duty but allowed entry through dealer’s network

• 5 dealers across country

HD-India

• HOG to India in 2012• Increased competition –emphasis on building

brand• Developed customization kits• Accessories, clothing, tattoos- customers

perception• BRAND BUILDING EVENTS• After huge response, expanded to Kolkata,

Jaipur, Kochi• India, 2nd biggest market for motor cycle

Brand awareness

Brand building in India

There is a lack of brand recognition of Harley in India as compared to its competitors Yamaha and Suzuki

brand strategies:

H-D VS ROYAL ENFIELD

• Longer presence in India and hence loyal customer base. First mover advantage.

• Can be serviced anywhere in India.• What HD is to US, Enfield is to India.

SWOT analysis

STRENGTHPremium brand imageExcellent product quality Presence of customizationBrand and product extensionHarley owner group(HOG)brand loyalty

WEAKNESSIndian customer is price sensitiveSales is only allowed through dealerPoor availability of spare parts and skilled mechanicsNon availability of fuel

OPPORTUNITY Increase of cruiser heavy bikes in India FDI in IndiaIncrease of young people with disposable income

THREATPresence of competitors like Yamaha and HondaEmission standards in India are stringent Slowdown of Indian Economy

Marketing mix

Product• Heavy weight motorcycle• Also deals in used bikes• Offers regular and extended warranties• Unique accessories- saddle bag• Revolution engine

Price• Price ranges between $ 8000 & $ 40,000• Being speciality product price should be high to maintain brand

image• Harley offers financing for about 60 months

Marketing mix

Place• Should be located in bustling cities for market exposure• Face to face or direct sales are crucial for harley sales

Promotion• Create new commercials• Social media marketing• Lucky draw, free services

PORTER’S FIVE FORCE MODEL

Rivalry Among Existing Firms

• 4 major competitors in heavy-weight motorcycle segment: Harley Davidson, Yamaha, Suzuki, and Honda

• Some of the other competitors have more financial and marketing resources

• However, Harley Davidson’s help from government allowed them to catch up to their competitors and gain some ground in market share

Threat of New Entrants• Very high entry barrier – requires

high capital investment and is a mature industry

• Low economies of scale

PORTER’S FIVE FORCE MODEL

Threat of Substitutes

• Cars, sports bikes, and scooter bikes are main substitutes

• Harley is a luxury vehicle, so there are few close substitutes for this heavy-weight motorcycle

Power of Suppliers

• Steel, basic electric equipment, and shipping of the final motorcycles are the needs of Harley Davidson from its suppliers

• “Preferred suppliers” strategy decreased the number of suppliers Harley Davidson worked with and increased the quality of the suppliers as well; these long-term contracts protected Harley Davidson from supplier price increases and also created a trust between them and their preferred suppliers because the suppliers generated a lot more profit as well

PORTER’S FIVE FORCE MODEL

Power of Customers

• Since Harley Davidson market is aging, they must attract new markets and make new brand loyal riders

• Each Harley Davidson purchase is by an individual, so though one person will not significantly affect the financial earnings of the company, it is important to sell the individual experience to each customer in order that Harley Davidson can reach more markets and combine these sales to create financial growth

PORTER’S FIVE FORCE MODEL

CONSTRAINTS IN THE INDIAN MARKET

• Lack of service dealers in the owners’ hometown leading to cumbersome servicing process.

• Lack of trained mechanics.

• High priced spares and service.

• Non availability of specialized fuel(97 octane).

• Unsafe roads.

• Customer dissatisfaction owing to lack of infrastructure in India which prohibits them from the Harley-Davidson experience.

Lack of service dealers in the owners’ hometown leading to cumbersome servicing process.

Reason : Not too many Harley owners in specific towns. Profitability is reduced if service dealers are opened in towns with less concentration of Harley owners.

Solution :

• Harley can collaborate with US luxury brands like GM to provide spare parts and servicing through their service centres till the time they have their own centres..

CONSTRAINTS IN THE INDIAN MARKET

Non availability of specialized fuel(97 octane).

Reason : fuel stations have to buy atleast 12,000 litres of 97-octane petrol in one go. There are not many takers of this fuel. A good portion of the fuel is wasted as it evaporates fast.

Solution :

• Identify cities with a high concentration of luxury vehicles and enter into collaboration with petrochemical companies.

• For example, Audi , Porsche have tied up with petrochemical companies to make 97 octane available at various pumps in tier 2 and tier 3 cities.

CONSTRAINTS IN THE INDIAN MARKET

Customer dissatisfaction owing to lack of infrastructure in India which prohibits them from the Harley-Davidson experience.

Reason : the biking culture is not prevalent in India.

Solution :

• Organise regular events for the HOG members like mountain trips, adventure weekends.

• Participating in famous events would help bring limelight to the brand along with help the target customers associate the brand with famous events. For example, Goafest where Rajputana motors organised a rally proved a very good platform. So target youth oriented festivals like Sunburn9Goa), Autoexpo, National youth festival.

CONSTRAINTS IN THE INDIAN MARKET

CURRENT SCENARIO

• Ten fold increase in sales in India by 2015-16 to 10,000 units a year.

• Export Street 750 model to U.S from India in 2014 – low cost model for the Indian consumers who are price-sensitive (Rs 4,10,000).

• Street 750 model-• Custom built for Indian roads.• The design can be customised by the owner.

THANK YOU..