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.
Threat of New Entrants The cruiser market has important entrance barriers. First, entering it requires high investment (17 million euro), substantial costs (26 million euro) and high mechanical expertise. Those first barriers make it difficult and risky for small or starting organizations to enter. Then, the strength of Harley Davidson’s brand and heritage in cruiser segment built a high customer loyalty and a strong association between the brand and the cruiser bikes in customers’ mind. However, the market size of the segment, though decreasing, remains approximately one fifth of the global motorcycle market making it therefore attractive to new entrants.
Luxury Cars The automobile has been one of the most revolutionary inventions in the past few centuries. The invention of the automobile has completely reshaped our way of life. We are now able to go farther distances in shorter periods of time than ever before. Yet with every great invention is the product that is a step above the rest. What I am talking about is luxury cars.
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.
Age and lifestyle are hand and glove to faithful CruiserThorr customers. The motorcycle conveys a message of status, power, timelessness, and masculinity that customers between 35 and 50 respond to most. Although the CruiserThorr appeals to all ages, the cost of the motorcycle causes consumers, younger than 35, to purchase economical alternatives from Thorr Motorcycles’ competitors. The perceptional map reveals that the CruiserThorr, although stylish and appeals to a particular lifestyle, no longer can compete with the pricing and service offerings of its competitors. Although the suggested marketing plan includes quality engineering as a key
It offers market share and sales information for global competitors in three regions, North America, Europe, and Asia/Pacific, and briefly discusses the product offerings of competitors including BMW, Honda, Kawasaki, Suzuki, and Yamaha. The case has been kept relatively short since the Web sites for Harley and its competitors contain abundant additional information. The major objective of the case is to get you to visit these Web sites, compare them, and evaluate them as strategic marketing tools Questions 1. Why is the Internet a particularly good promotion medium for Harley-Davidson? Discuss at least three (3) reasons.
Ducati Meccanica’s competitive advantage was its engine. Ducati’s new types of engines, high in performance, were among the leading racing brands in Italy. Technically strong, Ducati could utilize its distinct competitiveness to enter into engine businesses for boats, recreational vehicles, and cars similar to Honda. Ducati has proven itself in the motorcycles market in terms of its performance and reliability. However, if Ducati wants to enter into other markets, it would have to first address manufacturing and financing issues to meet the potential demand.
(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.
Their products would appeal to wealthy people who wanted the luxury & convenience of a premium car, without taxing on the environment. Tesla have achieved this goal by implementing various features in their products: long range batteries, premium price points, reasonable sizes (not too small) and installing battery swap locations across the US, to remove the hassle of charge times. IDENTIFYING OPPORTUNITIES Tesla Motors founded their brand on appealing to the needs and wants of consumers in the auto-industry, their success can be linked directly to effective marketing techniques utilised when designing products. The business recognised a need for luxury and 'eco-friendly' cars that are capable of driving reasonable distances without requiring lengthy recharges. Elon Musk (Co-founder & CEO of Tesla Motors) outlines his reasons for deciding to appeal to the higher / premium end of the auto market as “where customers are prepared to pay a premium” (2), but finishes saying that the company's eventual goal is to “drive down market as fast as possible to higher unit volume and lower prices with each successive model” (2).
This is clearly shown in the variation of sales in its two major markets, one at home in the U.S and the other in Europe. As shown in the in the graph chart in 2006, Custom models accounted for 47.4% in the U.S while only 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 other 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.