Marketing Plan Harley Davidson

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As a marketing consultant for Harley Davidson Motor Company to develop the marketing strategies by carefully analyzing the UK market situation. Bellow frame work is used to execute that.

First section is to use analytical tools such as SWOT, PESTEL and Porter’s five forces model to analyze the situation in more scientific way.

Based on the above analysis key strategies are identified and captured in the second section.

Key organizational learning’s and the recommendations based on that is discussed in the third section.

By developing following top line strategies, which will enables Harley Davidson to successfully lounge its range of products in UK market.

02 COMPANY BACKGROUND

Harley Davidson is one of the best motor cycle producers in the world and the largest motorcycle manufacturer in America. They design manufacture and sell heavy touring, custom and performance motorcycles. Currently, the company produces over 28 models of touring and custom motorcycles distributed through a network of 1300 dealerships worldwide. Motorcycle replacement parts, accessories, clothing and collectibles are also sold. The company also makes motorcycles under the Buell nameplate.

Harley Davidson began in Milwaukee in 1903 when two friends, Bill Harley and Arthur Walter Davidson, developed a one cylinder motorcycle. Harley Davidson (HD) grew quickly. By 1912 Harley Davidson was exporting motorcycles overseas. During World War 1, over 20,000 Harley-Davidson motorcycles were in use. By the end of the war there were over 2000 dealerships worldwide. After World War 1, the demand for motorcycles in Europe grew rapidly. HD became a leader in innovative engineering during the 1920's. However, during World War 2 Harley Davidson prospered with sales of motorcycles to the military. They earned the Army-Navy award for excellence in wartime production. After World War 2, Harley Davidson transformed from producing military to recreational motorcycles. By 1953, HD was the last surviving motorcycle manufacturer in the US.

By 1960 Harley Davidson had begun a gradual decline and merged with the American Machine and Foundry Company (AMF). This decision briefly raised sales. By the middle 1970s, a declining market, a slow economy and increasing competition from Japanese manufacturers was once again taking its toll on Harley Davidson. This ended in a management buyout in 1981 saving HD from bankruptcy and had to re-organize. Then HD focused on marketing and wanted to stand out from its competitors by projecting its heritage and its unique American styling. These improvements transformed HD into a successful company.

03 SWOT ANALYSES

Pursuing more opportunities is essential for any firm and to anticipate upcoming threats; it gives a better chance to develop competitive advantage. Firms should consider SWOT matrix to develop this strategy.

3.1 STREGNTHS

Harley Davidson has tremendous brand image. This identity creates a powerful psychological bond between the Harley Davidson company and its customers. Motor cycles made by Harley Davidson are thought of as legends.

Harley Davidson is the major American heavy weight motorcycle manufacturer.

Harley Davidson operates two segments, HD motorcycles and related products (products and financial services)

The HOG (Harley Owners Group) that have 750,000 members worldwide is the industry’s largest company sponsored motorcycle enthusiasts’ organization.

The loyalty of Harley Davidson customers are seen in the long run through repeat business and it is a tremendous source of income for HD. The unrivalled loyalty of Harley Davidson customers is evident with 45% of new purchases being made by existing customers.

The fact Harley Davidson motorcycles are unique allows its customers to feel as if they have a custom bike and that has led to acceptance of higher prices.

Due to higher market demand for Harley Davidson motorcycles, resale prices are higher than competitors allowing the owners to feel as though the price paid for their bikes is an investment. This allows customers to justify paying the higher price.

3.2 WEAKNESSES

Harley Davidson motorcycles are more expensive than their competitive brands. This applies to even lower-end models. The high price tag of Harley Davidson may not only be costing them current customers, but it may also cost them future repeat customers.

Harley Davidson face problems in gaining more market share in European Countries (That is one of the main markets for heavy weight motorcycles outside US)

Sales still not started in Asia, one of the biggest markets.

Required production is not met by analyzing the future of heavy weight motorcycle market.

Harley Davidson may be limited by their size. Its competitors have many more resources and products.

The diverse product range offered by the competition may allow them to make a smaller profit on some products to gain market share.

These companies may offer subsidies on entry-level motorcycles. The goal is attracting same customers into more profitable motorcycle purchasing due to loyalty of customer. It may be difficult for HD to attract this type of new customers due to their high entry prices.

3.3 THREATS

Harley’s current capacity restrains a shortage supply and a loss in domestic market share in recent years.

Harley’s average buying age is 42 years and increasing. The European union's motorcycle noise level standards are strict than those of environmental standards and some competitors of Harley Davidson have greater financial and marketing resources and they are more diversified.

New Environment protection Laws.

Harley Davidson's main competitive threats are Honda, Suzuki. Kawasaki and Yamaha. Domestically, the competitors are Polaris and Excelsior. They could create a strong brand image and cultural following similar to Harley Davidson.

As the only major current U.S. manufacturer of motorcycles, Harley Davidson's success may result in increasing competition from other domestic