Brand Identification Of Harley Davidson example essay topic

... 's major motorcycle producers, BMW, offered a product line that most closely resembled 6. EXTERNAL ANALYSIS Competitor Analysis Global Marketing Competitors: Heavyweight Motorcycle SegmentationStrengthsProduct Features Harley-Davidson Honda Suzuki 1. Style / Model Uniqueness models, not varieties Variety engine models Less model but specific 2. Consumers Hi-end consumers (Speciality group) High variable consumer High variable consumers 3. Price Fixed price Variability / Sensitive/Negotiate Variability / Sensitive Negotiate 4. Image Strong reputation cognitive brand in the heavyweight motorcycle industry Strong image brand in the automobile industry Easy perceived brand in motorcycle industry 5.

Dealers Strong dealers network, but limitation Dealers distribution worldwide Weaknesses Product Features Harley-Davidson Honda Suzuki 1. Style / Model Narrow model in " CC" engine Mislead cognitive brand in motorcycle (Familiar in Sedan Cars preferable) & not uniqueness 2. Consumers Narrow demographic group 3. Price Expensive margin cost High bargaining 4.

Image Poor perception for the new generation esp... Baby Boomers Less powerful image in heavyweight motorcycles 5. Dealers Not available dealers network 5 Forces Analysis Threat of New Entry: Low Requiring high capital investment to enter the business because of the scale economies in production, research, marketing and service of this industry is high. Brand Identification of Harley Davidson has been strongly established for years. The entrants will face a big barrier to overcome customer loyalty of Harley. Harley has developed its limited distribution channels via licensed private dealer and distributor.

The new entrant of this industry most probably has to create its own distribution channel and make another investment which causes a barrier to entry this industry become high. Powerful Buyers: Low The product is targeted to individual buyer rather than large-volume buyer therefore buyers will have only small power to force the price down. The product is differentiated or targeted for niche market therefore the buyer will not easily find the alternative product. Harley also produces parts and accessories as proprietary components for their bikes which are not produced by other company.

There is quite a small number of this industry in the same market. Since the product is differentiated, the customer tends not to price sensitive. Substitute Products: High Customers' taste is shifted into Japanese motorbike. Products with the sophisticated features, high quality and new design have been available in the market to adopt the trend-shifting. Powerful Suppliers: Low The supplier's customer are not fragmented so they have a high bargaining power Switching cost of changing suppliers is not too high since it doesn't require to invest heavily (e.g. machine or heavy system) to be a supplier. Competitive Rivalry: High Lack of products differentiation or narrow product line.

Industry growth is slow, precipitating fights for market share that involve expansion minded members Exit barriers are high. Harley has a high loyalty to keep the business survive. The rivals, for example Honda, are diverse in strategies, origins and 'personalities' to compete and continually run head-on into each other. BEST Analysis Legal Political Factors Work stoppages Terrorism U.S. Trade Policy - 45% tariff surcharge U.S. Trade Laws U.S. Government Economic Factors Fluctuation of currency exchange Interest rate increase Commodity Price increase Increase outsourcing construction Social cultural Public image for bikers not so good i.e. drinkers, relate to alcohol, drugs or crime activities Risk of public scandal Employee involvement (EI) - To support community Demographics range Technological Factors Just-In-Time (JIT) Inventory 7. INTERNAL ENVIRONMENT ANALYSIS McKinsey 7 "S" AnalysisSystemThe company implements Quality Management and standard manufacturing method. Brownfields expansion - To require an investment in brick and mortar Statistical Operator Control (SOC) - Statistical techniques control chartStructuresFlat organization structure to maximize employee involvements Staff 8000 employees Salaried and unionized employees are fully participated in many key business decision Empowered workforce to take initiative to identify problem and solve problem Employees are considered as foundation of company success and are the engine to drive company to success Diversity background Employee involvement is "strong culture" of Harley Davidson Participation of employee is an essential component of the company success Style of management Flexible Encourage employee involvement and development Belief that contributions of each people lead to company success Value both similarities and different among employees Foster diversity Have "open door" policy to allow employee to communicate and contribute his and her idea to senior management or CEO.

Strategy The company will plan to develop the capacity of its distributor and dealer network and also produce the supply chain issues. Increase motorcycle availability to improve customer satisfaction. Stimulate interest among prospective customers. In response to current market conditions and strong Euro, Harley Davidson is reducing suggested retail prices in 2005 on selected motorcycles model in EU markets. This will make it more affordable to broader range of customers. Improve product quality by adopting Japanese management practice Increase promotion at motorcycle rallies and improve dealer network to broaden its appeal to new customers.

Marketing The U.S. consumer base was undergoing a revolution which mandated consumer driven products. Harley had to change from a company which dictated what its customers could have to strategies based on direct input from customers. A marketing philosophy was developed based on the customer desire, gathered through surveys, interviews and focus groups. While the competitors base their advertising on product technology and features, Harley has promoted: a mystique appearance, individualism, the feeling of riding free, the pride of owning a legend. Promotion- HOG (Harley-Davidson Groups) Activity Program: To keep people active with their Harley and also developed a trademark licensing program which provides income for dealers and the factory while expanding the total Harley experience.

- Capitalized product as an image chic advertisement: T-Shirts, Public Magazines, Fashion & Collectibles catalog, Harley-Davidson Caf'e, One-Stop Shop for bikes (accessories, clothing etc.) Product- Focus on Heavyweight Products including a variety of models; Sports ters, Dyna (Super) Glides, Low Riders, Soft ails, Sport Glides, Tour Glides, Electra Glides in numerous vivid colors. Distribution- Sponsored training programs to the dealers Shared values The following values guide actions of Harley Davidson's employees and serve as framework for their decisions: tell the truth be fair keep your promise respect individual encourage intellectual and curiosity Value Chain Analysis Human resources- bonus plan tied to the company's performance Operations- HD operation are grouped into 3 broad functional area Marketing and advertising Harley Owner Group convoys free advertising Promotions at motorcycles rallies and improve dealer network to broaden appeals to new customers Not much spending on advertising Licensing brand / logo to more than 100 manufacturers thereby increasing exposure to customer Distributing newsletter and promote rallies Human resources Harley Davidson mechanics and dealership personnel were trained at Harley Davidson University. They took course in retail management, inventory control, merchandising, customer service, diagnostics, maintenance, engine service technique. Provide in -dealership courses through its web based distance learning program Service Demo ride in various location through all US Daily rental to decide whether they want to buy Motorcycle can be rented for long distance trip with 29 location in US and Europe Providing training course for inexperienced riders in America, Europe and Asia (25 hour Riders Edge Program) contributed to company increased sales from female buyers (increased from 2% total sales before adopting to 9% in 2003). The company found that woman more likely to purchase after taking training course Financial service to make it more affordableOperationsThe company's expansion plan of its York and Pennsylvania expects to allow the company to increase production to 400,000 units by 2007. Distribution Through dealerships Showrooms offer a large assortment of clothing items and accessories in addition to new motorcycles Dealers are responsible for operating showrooms, stock parts and accessories.

161 dealers in Japan. 50 dealers and 3 distributors in Australia and New Zealand. 7 dealers in South East Asian and East market. Infrastructure Public listed company Quality system Strategy & planning are not clear.