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
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.
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).
The effect of the product life cycle and the effect it had on the simulation. Situation Thorr Motorcycles, Inc., a $5 billion motorcycle company, produces over 200,000 units per year. CruiserThorr is brand which represents strength,
Geico and Allstate are two of the more recognized car insurance companies in America. Each year they spend millions of dollars are spent on print, television and internet advertising in an attempt to lure you into one of their car insurance policies. Have you fallen for their advertising tactics? Are you a current customer of GEICO or Allstate? If so, why did you move your auto insurance business to one company over the other?
And for that moment I wished it was me on that bike because I was late for work. The way gasoline prices are going up all over the world, biking to work instead of driving will be the best way to offset the rising cost of gas, and also to avoid getting stuck in traffic. According to Michael Bluejay, an award winning writer of “The seven- best on the web! “Automobiles are the second largest source of carbon dioxide (CO2) pollution in the U.S. They create nearly 1.5 billion tons of CO2 each year”.
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.
(Ducati Case pg 1). The motorcycle industry has a customer loyalty that that is truely unique. According to Exhibit 16 in the Ducati case, these percentage of customers in each of these brands expressed repeat purchase intentions in 2000: BMW (68%), Harley Davidson (70%), Ducati (64%), Honda (54%), and Kawasaki (38%). These high repeat purchase intentions indicate that not only is there brand loyalty, but the motorcycle itself represents much more than simply a vehicle to get you from point A to point B. 2.
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.
for sustainability. Industry Products: Ducati’s products in Hyper-sport, Super-sport, Naked,S port-Touring subsegment products have a great success and they also have limited editions. Also spare parts, accessories and apparels Spare parts availability catalogue went from 10,000 items to 15,000 from 1997 to 2000 Custom-made bike components , high-quality Ducati-branded riding gear “they should emphasis this and can grow like this” “Suggestion” Harley has too, (12 % of total revenue) they should follow them. Outsourcing: policy is aggressive 87 % Majority of its suppliers belonged to the Emilian district “collaborating some firms to form the Engine Technology District” Number of suppliers decreased to be more selective Only short-terms contracts with its suppliers elasticity as the need arose something else But eventually they have to create sustainable models Distribution: First multi-franshising distribution Now new strategy:”taking control of distribution and marketing in strategic markets by establishing ttotally owned sales and marketing subsidiaries .Ducati established subsisieries in Japan,France,Germany,UK and Holland. Not increase geographical reach but improve average quality of the dealers-competent sales force Ducati stores chains They can…grow…..