Brompton Bicycle is well known manufacturer of folding bikes and they want to improve and gain more shares in this fast growing global market. But according to Will Butler-Adams the new managing director of Brompton Bicycle, they are lagging behind on the sales growth. He identifies slow production as main reason behind weak sales and being not able to present their products on time to the global market. However, they are now improving their production line by changing their management and using a system of double shifting, to boost their production. Butler-Adams is aware that the new management system has cost a lot of money to the debt-free company, while facing competition from rival firms, which manufacture bikes of the same quality with higher production and much lesser production cost.
The European markets desires performance bikes made for the open roads and high speed demands. Also in some major cities maneuvering a traditional heavyweight bike is an obstacle consumers are not willing to take. While consumers at home are loyal to the freedom and rebellious image Harley provides with its distinct sound these bikes are capable of producing. Besides the U.S and European market dilemma Harley faces other challenges in the Asian and Latin America market. The demand of these markets are a low cost bike which Harley will need to address if they want to succeed in these competitive markets, while there already exists a big presence of low cost competitors such as Honda, Suzuki and Yamaha as well as counterfeiters.
Using more effective manufacturing systems and double shifts has been implemented to achieve this. This is a small increase in comparison to the sales of competitors, showing that the global market could provide a number of new opportunities for the company as it grows. However, the opinion of the managing director, Butler-Adams,the company believes is that a significantly higher number of sales in a short time period could undermine the brand’s image which may decrease the desirability of the
It sounded like nothing else on the road, and even Elvis Presley longed to ride one. The Harley-Davidson Motor Company has had its ups and downs, and at times, the downs seemed as if they would end in bankruptcy. In the sixties, Honda, along with other Japanese branded motorcycles invaded the American market, and when sales at Harley-Davidson dropped drastically due to decreasing quality and increasing competition, the company began to look for buyers and was finally sold. However, the new owners of Harley Davidson knew little about how to restore profitability. The quality
Original Penguin represent a cultural change for Perry Ellis International in the sense that it is the first time that Perry Ellis has reintroduced a old brand which they had acquired years ago and reinvent it to attract a different target audience. As mentioned in the video, the fashion industry is now dictated by the demands of the younger consumers. The things they seek in purchasing apparels are fashionable, affordability and not only wearable during sports. Chris Kolbe reintroduction of Original Penguin with his ideas and innovation into the market has not enable the Penguin logo apparel but also Perry Ellis to attract young consumers below the age of 30 which previously was not possible. By granting Chris Kolbe full control of the Original Penguin
The target customers of the company are middle-aged people who are now ageing and the youth is more attracted towards technologically advanced sports bike. Moreover, the strategy with which Harley Davidson got so much popularity in US is not paying off in international market, as it can be seen by their market share which is 55.7%, 13.7%, 21% and 7% in North America, Europe, Asia Pacific and Latin America respectively in the year 2011 for heavyweight motorcycle segment. Even low production volume in comparison to its competitors has imposed significant cost disadvantages to Harley Davidson. Analysis From 1984 to 2008, Harley Davidson enjoyed dominance in US market and a continuous growth rate in its output and revenue. It can be attributed to its 3M strategy, i.e., Management, Marketing and Manufacturing.
Most riders will stick to the market segment that they enjoy, but some riders may transition their market segment as well as their riding style as they age. (A lot of Harley riders will tell you there first motorcycle back in the day was an old Honda.) * An automobile can be considered a substitute product, however more than likely a consumer is looking to purchase a motorcycle because they want a motorcycle, not necessarily because they strictly need transportation and they are looking at all transportation industries. * Competing sellers * The largest force that the sport bike world faces is competition from competing sellers. The appeal of sport bikes and the brands themselves (including Ducati) all came from roots of competitive motorcycle racing.
The “market philosophy” emphasized 1. Capturing market share and 2. Increasing sales volumes above short-term profitability. Honda’s approach began by re-conceptualizing the motorcycle in the minds of consumers (“You meet the nicest people on a Honda”), based on identified customer need, and supported by high advertising expenditures. This had the several direct effects: a) The new market positioning expanded the size of the motorcycle market out of leisure and into affordable transportation, initially in an area where the U.S. and European motorcycles were less competitive in terms of product features and pricing.
If the product is perceived as different and is repositioned using price, service offering, quality engineering, Hollywood/internet advertising, and financial services, the results will be a successful repositioning among the critical parameter, namely contemporariness. The second major phase is to decide whether to reposition Thorr Cruiser or to launch a new motorcycle based on an analysis of the present products. The situation was that Thorr Cruiser was not able to differentiate itself from its competitors, it was making losses and its customers were leaving. In other words, the perceptions of Thorr Cruiser were such that they were causing a financial drag on the company, diluting the brand equity of Thorr Cruiser, and losing its market share. The question at this phase was if Thorr Cruiser should go in for a launch of a new product or should Thorr Cruiser be repositioned.
At one point, the idea of using a car that was electric powered may have seemed outrageous. Several questions emerged, such as: can it be done; would it work; how would it work; when would it happen; and how much would it cost. “Record-high oil prices have pushed consumers towards fuel-efficient vehicles and prompted many governments to consider electric transport as a way to escape their dependence on imported petroleum and to address climate change” (ebscohost.com). Here are a few of the many reasons why cars should be more efficient. First, cars should be more efficient because the cost to the consumer may decrease.