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.
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.
Mass production along with advancements in technology proved to be greatly Ford’s advantage; this strategy gave Ford the ability to make automobiles in large quantities and make them affordable to many. Ford did not view the production of his automobiles as a luxury item that would be off limits or unaffordable to many he envision for the company Ford to be an affordable item that many could enjoy. This was done easily through mass production and allowed Ford to grow into a large and profitable company. The success of Ford Motor Company was because its’ strategy encompassed a new way of manufacturing called mass production, advancements in technology, the supply chain and most of all changes in lifestyle. By the 1920’s Ford had 50% market share and
This strategy worked well to stabilize the market shares since early 90s to 2003. Concentration: Harley Davidson uses a differentiation strategy. They initially focused on heavy and super-heavy bikes targeting specific group of customers (men, in average 42-49 years old)??. (Rather be stated as mid to late forties, because I saw ages 35 – 54??). Unlike its competitors Harley was highly market focused.
Marketing Simulation Tammy Harris MKT/421 March 26, 2014 Chris Hudson Marketing Simulations As a marketing manager for Cruiser Thorr who sells high end motorcycles and we see that business is expanding at a rapid pace. Indeed there is more structure needed to the marketing piece to sustain a successful business and seeing that the industry of motorcycles is increasing annually. We must admit that the organization has to work to satisfy the needs of their target consumers. The organization must also work to differentiate themselves from other similar organizations in order to remain vital. Key components in my opinion are the product uniqueness, safety, quality engineering and price.
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.
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…..
The superb management of the corporation, as well as the customer loyalty the BMW Group possesses is due to the competitive advantages the large company exercises. One of the main competitive advantages of BMW is that of innovation. BMW has been known for its innovative technology and drivability throughout its history. From airplanes to motorcycles and most recently to luxury crossovers, BMW has always maintained its ability to stand out against the competition as an innovative force to be reckoned with. BMW’s product designs are truly and consistently innovative.
(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.
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).