| p
 : 1903

| p
 : William S. Harley, Arthur Davidson

| ’
  : Milwaukee, Wisconsin
| ½
: Keith E. Wandell
| 

 : $4.29 Billion (p
)
$798.8 million(3rd quarter 2010)
| a  : 33% Worldwide
| ½    : Honda , Suzuki , Yamaha , Kawasaki
a
| ½    : Gurgaon
|   : Barakhamba road,New delhi
’
 

MISSION STATEMENT "We fulfill dreams through the
experience of motorcycling- by providing to motorcyclists and
to the general public an expanding line of motorcycles, and
branded products and services in selected market segments."
 ’




| 1901 William S. Harley, age 21, completes a
blueprint drawing.
| 1903 William S. Harley and Arthur Davidson make
available to the public the first production Harley-
Davidson motorcycle.
| 1905 Harley-Davidson motorcycle wins a 15 mile
race in Chicago with a time of 19:02.
| 1918 almost all the Harley-Davidson motorcycles
produced are sold for used by the U.S. military in
world war 1.
 ½ 

| 1920 Harley-Davidson is the largest motorcycle

manufacturer in the world.
| 1922 Harley-Davidson riders sweep all eight National
championship races.
| 1933 an art deco Dzeagledz design is panted on all gas tanks.
| 1936 introduces Ǯknuckle headǯ.
| 1941 production of civilian motorcycles is almost entirely
suspended in favor of military production.
| 1952 launched sportster.
| 1969 HD mergers with the American machine and foundry
company(AMF), a long time producer of leisure products.
| 1971 A new class of motorcycle, the cruiser, is born .
 ½ 

| 1981 13 executives leveraged buyout (LBO).

Struggled under heavy loans.
| 1982 the materials as needed (MAN) application is
introduced to production. This dramatically lowers
the production costs and improves quality.
| 1992 joint venture with Buell.
| 2003 more then 250,000 people come to
Milwaukee for the final stop of open road tour and
the HD 100th anniversary celebration and party.
 ½    
 


| ivalry criteria- performance, styling, breadth of

product line, image, reputation, quality of after
sales services, price.
| Low price by the Japanese company like Suzuki,
Honda ,BMW,Yamaha,Kawasaki
| Product ange
| Dealer's eputation and knowledge
   
  
 


| European parliament and European countries

reduce pollutant by 60% after 2003 & more 60%
after 2006.
| U.S. producer are subject to certification by
environmental protection agency (EPA).
| California air resource board (CAB)- new
tailpipe emission standards.
| Safety standards, Health Insurence
| Quality Standards
 ’   


 
   


| After Leverage Buyout, repositioning began

| Focused on product quality
| Introduced pilot program
| Formation of Harley Ownership Group
| Created an image of lifestyle for biker
| Associated itself for the law abiding riders
| Introduced Buell model to lure young bikers
| Establishment of Harley-Davidson University
 ] 
   ’
| HD bikers Daytona & Sturgis ally in late 1930ǯs
| Indecent behavior, public exposures, drunkenness, etc
| owdy, rebellious, outlaw image of bikers were
formed
| Different such small clubs of rowdy bikers formed
across US who rode only HD(Hells Angels, Sturgis ,etc)
| Honda leveraged the tarnishing image
| 1969 Movie DzEasy iderdz portrayed bikers as less
villainous
| Print ads and campaigns help improved the image of
HD riders
{

Lower cost Differentiation

Broad target
½





Narrow target




½
 

 

 DIFFEENTIATION STATEGY
TANGIBLE :
Low tech , premium priced, high quality,
heavyweight engines, innovation , Expanded line
of exciting motorcycles(standard, performance,
custom, touring)

INTANGIBLE :
1. Aura created of distinct image, lifestyle &
adventure- ugged American Individualism
2. Strong Brand Identity
 ]]  


 
| Heavyweight engine
| Innovative design & product features
| Strong Brand Equity
| Financial Strengths
| Strong brand loyalty and HOGs
| Strong distribution network
ñ
| Over leveraged financial position
| Competency only in Heavyweight motorcycle segment
| Maintaining the cost differential between low-cost competitors
and HD
| Lack of appeal to young riders
    

 
 
| The international heavy weight market is growing and is almost as the U.S. heavy weight
market.
| Alliances with other automobile manufactures are possible.
| Market share increasing in Europe and Asia for the two years.
| Increasing demand in U.S. markets for bikes.
| Product and services expansion
] 

| Harley ongoing capacity restraints caused a shortages supply and a loss in domestic
market share in recent years.
| Baby boomers who are the potential buyers are aging
| The European Unionǯs motorcycles noise standard are more stringent then those of
environmental protection agencies in the U.S. and increases environmental stand.
| Some competitors of Harley Davidson have larger financial and marketing resources and
they are more diversified.
| Shift in buyer need and tastes.
| Cost could become expensive from international importing- for example in India 60% tax
on total cost for importing an automobile and 30% road tax.
×        
  



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