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.
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.
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.
HARLEY DAVIDSON: Preparing for the Next Century 1. Historically, how did Harley-Davidson mange to dominate the U.S. motorcycle market? How did it do so and what were its sources of competitive advantage? a. First move- early 1900’s b.
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. b) Honda valued market responsiveness as critical. Consequently, the company invested heavily in R&D, achieving a shortened conception-to-production cycle, and maintaining a “Cold Storage” of future designs at the ready. c) Design and product features supported the positioning and the sales volume: for example, a step through frame, one-handed controls, and an automatic transmission. d) Viewing unit costs as a curve inversely proportional to volume (the Experience Curve), the market philosophy drove down the curve faster.
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.
Identify Harley Davidson’s strategy and explain its rationale. Branding: They promote a special life-style and the brand image represented the fundamental American values: “Individuality, freedom and adventure”. The unique feature in Harley’s is their deep, rumbling sound for which they are renowned. Harley Davidson was selling a Harley experience which came at a heavy pricing. Central to their strategy was promoting the brand name and they did so well.
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.
t o The Economic Impact Of The Automobile Industry University of Phoenix XECO/212 – Economic Theory The Economic Impact Of The Automobile Industry Daniel Sach University of Phoenix XECO/212 – Economic Theory The Economic Impact Of The Automobile Industry Society as a whole has been changed by the advent of the automobile. The ability to quickly travel distances in a speedy manor has allowed for people to move further away from cities and logistics to become more efficient. The purchase of a vehicle has become a rather precarious adventured. Common points of contention when purchasing a vehicle could be price, terms, features or availability. Often consumers will argue to ensure that they receive the best possible deal in which they will benefit all areas equally.
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.