But now the tables have turned and Hondas marketing concept has a lot to do with their success and win of the market. What happened in the David VS Goliath clash? And what marketing strategies caused the all time favourite Harley Davidson sink so quickly? Harley-Davidson is an American motorcycle manufacturer. Founded in Milwaukee, Wisconsin, during the first decade of the 20th century, it was one of two major American manufacturers to survive the Great Depression.
It also offers wholesale financial services, including floor plan and open account financing of motorcycles, and motorcycle parts and accessories; and operates an insurance agency that offers point-of-sale protection products through Harley-Davidson dealers in the United States and Canada, including motorcycle insurance, extended service contracts, credit protection, and motorcycle maintenance protection. From 1977 to 2014 the only motorcycles sold to the public under the Harley-Davidson brand have been heavyweight
Full members in the owners group can take advantage of the company’s online travel service to schedule a Fly & Ride vacation to any of 41 different locations in the United States, Canada, Europe, or Australia, picking up a bike from a local Harley- Davidson dealership on arrival to tour in style or simply renting a bike at selected dealerships. 4. Would you say that Harley- Davidson adopts a consumer orientation in its marketing efforts? Explain your answer. Yes they do adopt a consumer orientation & I say this because of the length of time they’ve been in business as well as the number of repeat customers that they have.
Many of Harley Davidson’s competitors have achieved product diversity and offer a wide range of products. Harley Davidson, alternatively, has decided to focus on their primary product and improve and innovate their motorcycles. Additionally, it is arguable that they focus on a certain clientele demographic and geographical area. 80% of Harley Davidson’s products are sold in the US, although it is a multinational country, this is a large emphasis on one area. Also, they have focused on a narrow end of the motorcycle market paying particular attention to the slightly older clientele with higher disposable income.
The weaker economy resulted in sponsorship cutbacks for professional riders. The company expects the market will improve moderately in the upcoming year and has indicated it will not take any pricing actions to increase sales. However, the 3.2% increase forecasted for units sold and revenue in year 9 over year 8 is a concern since the company is not planning on any specific actions to spur sales or product awareness in the weakened economy. The next concern is the amount of components and frame materials budgeted in the raw materials budget. Each bicycle requires 42
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.
As we introduced a new version of the popular motorcycle we see the younger crowd affected by what it represents. The older consumers are able to hold on to the older version or may purchase the newer one at a lower cost. But the younger consumer has the opportunity to purchase a motorcycle that is stylish, dependable and cost effective. Lifecycle The impact of the product life cycle on marketing is that economic conditions will force the marketing strategy to be reformulated a number of times during the products life cycle (Kotler and Keller 2006. p 335). In the simulation, the product life cycle impacted the product by the fact that the sales decreased which called for a makeover in the marketing plan.
1)Can Ducati sustain its position in the sport segment? Can Honda and other Japanese manufacturers stop its growth in this segment? They followed mostly the path of Harley Davidson in their strategies in different activities. They have spare part card. They competed with quality service.
This is clearly shown in the diversification of sales in its two major markets, one at home in the U.S and the other in Europe. As seen in the sales mix for 2006, Custom models accounted for 47.4% in the U.S while only a mere 13.4% in the European market. Other sales based on style of bikes are in the U.S performance 15.1%, touring 35.5%, and standard 2.1% while its counter market sales in Europe were performance 41.4%, touring 26.1%, and standard 19.2%. The reason Harley faces such diversification is clearly due to consumer preferences. The European markets desires performance bikes made for the open roads and high speed demands.
The environmental factors that affect global and domestic marketing decisions for Harley-Davidson Motorcycles XXXXXX MKT/421 February 6, 2012 Gabriel Renero The environmental factors that affect global and domestic marketing decisions for Harley Davidson Motorcycles Harley Davidson Motorcycles has been building, selling, promoting, and marketing their motorcycles since William S. Harley completed a blueprint drawing of an engine designed to fit into a bicycle in 1901. In 1903 William S. Harley and Arthur Davidson make available to the public the first production Harley Davidson Motorcycle. One year later, the first Harley Davidson dealer opens for business (History of Harley Davidson, 2012). Harley Davidson is the world’s most recognized motorcycle and brand name for motorcycles, synonymous with words like; freedom, America, biker, 1%er, HOG, and more. It was 111years ago since that first blueprint drawing by William S. Harley, and Harley Davidson as of present time has five basic models (over 75 sub-models).