Table of Contents TITLE Introduction History BRAND EQUITY The value of brand to customers The value of brand to organization

Creation of the Harley-Davidson brand Factors responsible for the success of the brand Branding & the consumers decision making process Conclusion Recommendation Bibliography PAGE NO. 2 3 4 6 6 7 9 16 18 19 20

Introduction: Its a journey, not a destination Harley-Davidsons mantra clearly suggests the image and the story built around this legendary machine. In America the enthusiasts of the Harley-Davidson are one of the most distinct subculture. Seemed to be like the most proud American and patriotic the individuals are generally rough looking to the outsiders. The base of the brand of the HarleyDavidson is regarded as Live and ride captured the consumers mind very effectively to achieve brand loyalty. The customers are keen to jump on their hogs and interested in cruising throughout highways of the nations freely. The Harley-Davidson gradually discovered the core need of the customers for the adventure and escape and by this taken they assessed the need for converting the individuals to make effective customization of the customer needs. Building strong relationship and maintaining this with the customers are recognized by Harley-Davidson very significantly. Thus their brand integrity become seen in the customers minds as they established customer loyalty along with providing the customers with the licensing programs that facilitated them to construct a strong interpersonal relationship with the licensees and the customers. History: William Harley and Arthur Davidson was the pioneer of the Harley-Davidson Motorcycle Company by building it in 1903 who, in the shed of Milwaukee, constructed three motorcycles. The firm launched its trademark in 1909 with the V-Twin engine having a speed of 60 mile per hour along with 2 cylinders. The demand for the motorcycles in the US during the World War first was increased very rapidly. Due to this the Harley-Davidson became the most gigantic business in fabricating the motorcycle in the US in 1920 in the engineering of the innovation. Another reason for that was the launching of the teardrop and front brake tanks enclosed with the motorcycles. However after the First World War the demand of the motorcycles was reduced due to the great depression because the economic state of the country was collapsed. Due to the sales and the exports of the military and the police the Harley-Davidson was survived.

After eve of the First World War the Harley-Davidson became prospered as the military of the US purchased motorcycles during the Second World War and it business also flourished. The production of the motorcycles turned into an innovative form when the Harley-Davidson started to fabricate the recreational bikes from the military bikes. In 1952 the K model was developed by Harley-Davidson and subsequently the Duo Glide was introduced in 1958 and Sportster was introduced in 1957. The Harley-Davidson became the last major motorcycles in the US in 1953. Trying times and the way out: The Harley became the last of the more than 200 American motorcycles in 1960 being able to maintain to success in term of profitability. The onslaught of the motorcycles of the Japan and the lower level management of the firm caused it to bankruptcy and ultimately turned into bankrupt. Being freighted with the alleged dumping of the Japanese motorcycles producers the management of the firm took the position against of the management of the Japanese firms. The Harley tried to persuade the president Ronald Reagan for imposing strict tariff on the import of the Japanese motorcycles. Meanwhile the management of the Harley-Davidson was visiting the Japan to assess the production system of them and explored the quality circles and the JIT (just in time) as the major drivers of the success of the Japanese motorcycle. On the other hand the management of the Harley-Davidson realized that the other major driver of the success of the Japanese firm to capture the market share in the US is the brand itself and the customer affiliation of the customer built by providing superior service or the quality. The Japanese competitors were analyzed by the Harley-Davidson and ultimately they realized that they ought to follow the new technology adopted by the Japanese firm. On the other hand by talking with the customers Harley-Davidson realized that they are demanding the choppers of the old age. Then Harley took decision to attach to the root of it. As Harley-Davidson possessed the mystique, tradition and heritage this were regarded as the major strength of the Harley. On the other hand the company took different measure to reinforce the brand which is illustrated below: To construct the HOG (Harley Owners Group) To conduct the sponsor the rallies that would facilitate the culture of the riding that would also include the massive gathering in Beach of Daytona, Sturgis and Fla. The company facilitated the association by the extensions of the brand and the licensing of the brand maintaining with the merchandise of upper class. Brand equity The long term trust built among the customers by being loyal to the specific products and the strong commitment to be loyal to the existing products among the customers is seemed to be brand loyalty. The definition of the brand loyalty given by Aaker (2003, p.173) the brand loyalty is considered as the set of asset and liabilities and sometimes it is seemed to be the symbols and sign adding or subtracting value to the customers by providing superior products or services. The assets and liabilities are categorized into four types such as the brand associations, perceived quality, brand awareness and brand loyalty. .

Brand Loyalty The degree to which the customers of a particular product are committed to the existing brand and the consistency to be clinked to their perceived brand is called brand loyalty. Ensuring the brand loyalty is also important for the firm to ensure their profitability.

Brand Awareness

The degree to which the existing customers are concerned regarding the new offer and promotion about the existing products or services of the company is referred to as the brand awareness. The brand awareness creates a familiarity to the new brand to the customers and facilitates the firm to ensure profitability by influencing the buying decision of the customers.

Perceived Quality According to Asker (1991 p. 85) the overall evaluation of the customers towards the quality of the products and services with respective to relative alternatives to the other offering is referred to as he perceived quality. However perceived quality can be differentiated from the total quality and can be derived from the past experiences related to the offerings.

Brand Association The customer perception about the brand and the responses of the customers about the brand is referred to as the brand association. As mentioned by Armstrong et al (2005) the associations that have significant influence on the physical characteristics and attributes are referred to as the brand association. However to establish a brand, brand association is seemed to be a crucial part. The values provided by brand equity to consumers as well as to the organization are shown in the following figure.

Figure: Brand equity (Source: Aaker, 1991)

Brand performs numerous functions that add following values and customer benefits (Kapferer, 1992): Identification - To be clearly seen, to make sense of the offer, to quickly identify sought after products Practicality - To save time and energy through identical repurchasing and loyalty Guarantee - To be sure of finding the same quality no matter where or when you buy the product or service Optimization - To be sure of buying the best product in the category, the best performer for a particular purpose Characterization - To have confirmation of your self-image or the image that you present to others Ethical - Satisfaction linked to the responsible behavior of the brand in its relationship with society

For a company brand creates value through following ways: Brands, market share and profits - Typically a brand leader obtains twice the market share of the number two brand, and the number two twice the share of the number three. The brand leader is the most profitable and all beyond number two are unprofitable. Brand Leverage - The brand leader benefits from two main leverage effects: Higher volume leads to economies of scale in development, production and marketing; Premium pricing increases revenue. Brand Loyalty and Beliefs - Strong brands are more attractive to investors. Brand loyalty also reduces marketing costs and enables firms to override occasional problems. Motivating Stakeholders - Companies with strong brands attract good recruits. They also tend to elicit community and government support.

Creation of the Harley-Davidson brand: Over the long period many of the renowned bran throughout the world became reached the pedestal of this for the large period of the campaigns of the high visibility and established them as the most attractive and powerful brand. Due their large amount of advertising and promotions they became able to gain this brand loyalty through the huge promotional activities. In case of occasion the brand emerged as the strong brand without conducting massive advertising in the face of the customers face to market the product. On the other hand the gratitude from the customers mind comes from the efforts of the market product on the basis of core features within it by following the own way and the own time of it. The Harley-Davidson has established itself as a brand in the motorcycle industry. There had been various events in the Harley-Davisson 108 year operations facilitated it to establish it as a symbol of brand. The major determinants facilitated it to represent it as brands are illustrated below: 1. Efforts in Army Expeditions The military expeditions and the association of them facilitated it to represent itself as the prominent brand. The general people were interested in realizing the parts used by the US army in the expeditions and the legendary thus the Harley-Davidson became an integral part of it: In 1916 the Pancho Villa expedition of the US army to prevent the farmed Mxican revolutionary Pancho villa infiltration and the Harley-Davidsons arms were used in this expedition. During the eve of the First World War the Harley-Davidson shipped about 15000 motorcycles to facilitate the soldiers of the US. In the time of the Second World War the Harley-Davidson dispatched about 90000 bikes that were custom made for the army of the Canada and the US. In the fabrication sector the Harley-Davidson acquired the Army-Navy E award for the production and excellence in considering the motorcycle.

2. Harley-Davidson Racing In the tradition of the Harley-Davidson the motorcycle racing became a most prominent part in

considering the tradition of it. The Harley-Davidson created many records in term of the operations and the performance in delivering the motorcycles in many suppliers and the customers and it also broke many records created by many companies earlier. With pace of the growing popularity of the Harley-Davidson on the sports the general people were expecting to possess the motorcycles that would be designed with many improved features along with the flexibility as like as the features of the racing motorcycles. The Otto Walker, by using the motorcycle produced by the Harley-Davidson became first in the motorcycle race having able to maintain a average speed of 100 mile per hour in 1921. In 1958 and 1961 the Harley-Davidson racer named as Carroll Resweber became won in the national championship four years running which brought reputation for the HarleyDavidson. In 1931 to 1936 (six year stretch) most national points of five times was won by the Joe Petrali racing the Harley-Davidson motorcycle. 3. Outlaw Image The outlaw image and several associations were made over the years facilitated the HarleyDavidson. The Hollywood mainly accelerated this by perpetuating the bad boy riders influencing them in term of the stereotypical image. Thus the bad suggestions concerned with the riders became reduced and is considered with the friendly manner. 4. Harley Owners Group (H.O.G) The major intention behind the construction of HOG (Harley Owner Group) was to provide special promotional packages, sponsoring rallies and maintain close contract with other companies etc. Because of this the performance evaluation of Harley-Davidson becomes critical. As for example in 1984 Harley-Davidson arranged a rally in California and in this rally 28 people expressed up their interest in this firm. However, now days there exists 365000 members of the Harley-Davidson and 940 chapters all over the world.

5. Brand Extension

The Harley-Davidson is concerned about its extensions of brand significantly. For example in 1986 the Harley-Davidson introduced its Motorclothes having the features of shirts with the collars, baby clothes , bright colored items of fashion for female and denim blue jeans. This introduction of new brand caused this firm to license it as a top brand like Zippo and LOreal. In Las Vegas the Harley-Davidsons restaurant in Manhattan will be made to be joined with another restaurant in Las Vegas. The contribution of the licensing in the revenue of the Harley-Davidson is about 6 percent of the total revenue. Factors responsible for Harley-Davidsons success: Management Though Harley-Davidson takes pleasure in huge proceeds throughout World War I as well as

World War II, the achievement was short-lived. In 1970 subsequent to the leveraged buyout, new owners of Harley-Davidson understood that so as to build the essential development, they had to recognize the limitations. Later than cautious study, the organization identified probable causes for the troubles this organization faced: 1. Business organization focused typically on short time income. 2. Organization did not pay attention to the workers otherwise provide them accountability for the excellence of that these workers completed. 3. High inventory of part gobble up money as well as abridged efficiency. 4. Organization that awaken late to the danger of overseas rivalry. 5. The growth of method for development as well as to gain business wide assistance for completion was the solution. Relationship Building: The initial achievement was for organization learning the significance of relations. Harley- new management of Davidson understood to stay alive they wanted becoming a continuous knowledge as well as civilizing association. Open message in every level of workers was necessary. Organization wanted to get the admiration as well as faith of the staffs. Incorporate each of the ethical principles into the whole corporation arrangement as well as expect not anything less as of workers, at every stages, assisted stress commitment of Harley-Davidson to the group of staffs. Co-operation and unity The difficulty that might happen was that workers of Harley-Davidson were unionized as well as therefore they might not be capable adapting to the strategy. Other than, as the union fixed to Harley-Davidson when period was hard, they stay faithful to Harley-Davidson. The promise permitted for Harley-Davidson to button to self managed team. This is an ability devoted to lifelong education. The main position is serving workers who desire to stay developing the ability. Continuous Improvement and continuous growth Harley-Davidson is determined through a steady dream of that a brilliant corporation might be: one what is never content by means of the position quo other than is forever penetrating for habits to leave do belongings improved. Nonstop development demand participation as of staff. In the case of Harley-Davidson, every worker takes part in a gain allocation course as well as is paid cash inducement to attain as well as maintain excellence, productivity, with shaped release goal. This course assisted the corporation to be further spirited as well as to promote personal growth of the employees as well as growth.

Marketing Harley-Davidson got pleasure from a monopoly in the motorbike business for a lot of years. In the 1970s, Japanese manufacturer swamped the marketplace by high excellence, low price bike. As of 1973 to 1983, market share of Harley-Davidson go as of 77.5% to 23.3%, by Honda containing 44% of the marketplace by 1983. Harley-Davidson might not fight on cost next to the Japanese motorbike producer; consequently it had to institute other marketplace principles to get better superiority. Harley-Davidson has to alteration as of a business that uttered what the clientele might have to strategy basing on straight contribution as of clientele. An advertising attitude was identified basing on the desires of the customers, collected during survey, interview as well as focus

group. Image Brand name faithfulness for Harley-Davidson is exciting. This organization measured further than motorbike they are mythology. The Harley-Davidson sign is base on an outline of relations what comprise the flag of America as well as the eagle; thoughtful of the fervor as well as liberty American like. The demography includes a broad variety of bike choicer. At the same time as the competitor base their marketing on product knowledge with natures, Harley-Davidson promote: a mystique appearance, uniqueness, the emotion of ride free.

Customer Relations (People) While an individual purchases a Harley-Davidson motorbike, he or she obtains a free 1 year membership to the Harley-Davidson Owners Groups that was grown in 1983 as a curriculum keeping people lively by means of their Harley-Davidsons. At the same time, it remains the corporation shut to the client Harley-Davidson Owners Group has 295,000 universal member, 900 local chapter with is the main corporation sponsor motorbike aficionado cluster. Promotion The main marketing instrument for Harley-Davidson motorbike is the HOG behavior. Not only do it serve up as a client relationship machine, other than as a method to display case as well as show fresh foodstuffs. The corporation is preliminary to promote in magazine geared to the universal community. Two times a year, a fashion as well as figurines list is shaped a variety of Harley-Davidson goods. Additional advertising policies, Harley-Davidson caf contain open in otherwise close to a lot of dealerships to entice nation keen on the display area. Product Harley-Davidson establishes the power was in the hardwearing separation. They are too recognized as well as browbeaten small niche. While Harley-Davidson was shaped, it merely obtainable one color of motorbike gray as well as three essential styles. The corporation learns it wanted to provide the clientele an option as well as now offer a diversity of model. While a method is distorted otherwise urbanized, Harley-Davidson forever develop it approximately their name picture to build certain that the manufactured goods is not only a lofty excellence part of gear but also magnetic. Price Harley-Davidson rapidly erudite it could not struggle by means of the overseas manufacturer on price. Not only does Honda contain a low price manufactured goods, it was capable to beat Harley-Davidson in marketing. Consequently, Harley-Davidson identified a policy of worth in excess of cost. It was shaped from side to side the growth of small niche as well as the serious building of the part. Japanese manufacturer utilized plastic at the same time as Harley-Davidson utilized steel, what is talented to be rebuilt as well as re uninterested. Manufacturing At first, manufacturing plants of Harley-Davidson were intended to utilize a batch processes in the run of fabric on the plant ground as well as the incidence of goods completed. The batch processes had neither in-flow nor loss of raw-materials at the same time as the procedure is in

operation, as well as have the difficulty of lofty work expenses per unit manufacture as well as was hard by means of production of large scale. The primary stair was determining the exact area that wanted improvement. A better procedure was resolute as well as implement, productively, merely subsequent to the synergies of that is recognized as the efficiency harmony was envisaged. Therefore high-quality relations, incessant development, worker as well as organization participation, team construction or worker teaching as well as empowerment have added to building Harley-Davidson a global famous brand. Merely through adoption those organization technique as well as construction a hard base in the organization plus the staff, completed it probable for Harley-Davidson improving its organization procedure. The culture of Harley: What is a record of an instrument exclusive of discussion as regards the public whose survives it cover pretentious? In the container of Harley-Davidson, it inquiry might obtain numerous manuscripts to respond. The Harley-Davidson has generated an intact messenger traditions and method, among its motorbikes provided that the extractions, and has extremely factually distorted the way of American times past. Motorbikes a tradition has its conventional ancestry in proscribe ethnicity. The messengers self-esteem is that of an inaccessible requirement, windblown, cut without charge starting the culture whose regulations are boxing him in. However the period forbid in motor biking is impossibility. The appearance was not initially related through something disturbing. It basically inevitable was that you competitions motorbikes other than were not authorized with the AMA. Existence publication represent the biker as an forbid through its renowned portrait of a brawny, drunken messenger on his control delimited with dozens of vacant tipple containers spread in the roads of Hollywood next spoon-fed it picture to the municipal. Believe Harley-Davidson with singer, songwriter Jim Steinmans shapes arrive to mentality. You preserve sense the beat of the concrete persisting similar to an escapee pony. The passageways are blistering also the pelt of the avenues is luminous by worry. This is the knowledge of solidarity, of traveling on release streets, of states independence, of fervor. The Harley-Davidson traditions is while greatly regarding its exceptional approach as the motorbikes themselves, plus that contains all as of melody, traveling device, divisions also garnishes, free time traveling. The Harley way of life is in sync among these characteristic. Additional than something, it engages the thoughts, the individuality. The Harley way of life is regarding lengthy traveling with anything you can take among physically to obtain you present. Single will forever observe public tiring a bundle of Harley stuff; be it covers ornament or else hood. The Harley-Davidson was present for each chief conflict of the history 100 times with usual four Navy E rewards for superiority in period of war creation. Several consider to it was the combat experts who ongoing the Harley biker traditions. Experts arrive residence starting battle also go absent and bought Harleys since they destroy in worship by the bicycle also the corporation while they were at battle. Starting this biker evolves the uneven with tough breed of messengers by their leather covers, tattoos, with extended locks. Harley-Davidson as a variety arouses such brutal faithfulness that numerous enthusiasts obtain tattoos of the commercial symbol which is established as division of the traditions. These bikers might appear solid as spikes, except they are constantly there to assist additional in require. Obtain for instance the well-known Harley holders Group (HOG) which is a subsidize community marketing union, activated by Harley-Davidson in favor of fanatics of that variety motorbikes. The HOG has also provided to release fresh proceeds torrents on behalf of the business, through the invention of tie-in products obtainable to union associates, numeral more than one million muscular, assembly it the principal factory-sponsored traveling association in the earth. The Harley holders assemblage was shaped in 1983 as mode to construct longer -permanent and stronger association by Harley-Davidsons clients, by assembly binds among the corporation, its workers, with customers... Greatly of the target of this varying attempt is current

Harley-Davidson while an American representation, through the centers on faithfulness and conceit in organism American-made. All of this is accredited by rotating waning trades approximately, and permitting the Harley-Davidson Corporation to cultivate another time. The styles, fascinations with civilization of the operational folk who assist construct Harley-Davidson single of the majority documented commercial symbols in the earth have been ethnically suitable by the wealthy town messengers. Sideways as of the characteristic picture of a biker, there are lots of additional unreliable kinds of citizens who like the attraction of a Harley-Davidson. The Harley does not categorize, with that actuality only is what creates the Harley traditions so extensive with famous.

Women and Harley: Individual of the belongings predictable in the extremely original of Harley-Davidson corporation proceedings as well as the special compilations of stipulations is the eagerness that women have had in favor of Harley-Davidson motorbikes. Untimely publicity picture explain women in proper garments affectation amid the newest sculpts. Smooth further rich are financial records and snapshot as of individual compilations. Since the decades development, entity women would position out as enormous devotee. Vivian Bales of Albany, Ga., draw awareness used for her 5,000-mile around excursion journey as of her residence during the higher Midwest and rear, counting an appointment to the Harley-Davidson industrial constituent on Juneau street in Milwaukee. The 1930s provides techniques to the beginning of the Motor Maids, the worlds primary womens motorbike union. Found by Wellesley College graduate Linda Dugeau, the Motor Maids have been a union residence to Dot Robinson with innumerable other enthusiastic to the nearby daylight. Additional contemporary periods have witness the formation of the union Ladies of Harley.

Branding & the consumers decision making process In arrange to appreciate the framework with the position of variety; it is significant to illuminate consumers decision making process. The consumers decision making process consists of five phases-

Figure: consumers decision making process (Source: Kotler, 1996) The procedure creates while the consumer distinguish requires. This is able to be activating by interior otherwise exterior stimuli (announcements). One time stimulate, a customer resolve be disposed to investigate for additional in sequence, moreover during sensitive concentration or else during a vigorous in sequence investigate. Throughout assembly in order, the customer study regarding rival varietys, and appraise them in conditions of the quantity to which their

study regarding rival varietys, and appraise them in conditions of the quantity to which their reimbursements and package of quality please their wants. As a result, it is significant to comprehend what attribute customers worth.

Customers expand allocate of variety attitude regarding the quality of opposing variety. This variety attitude creates awake the variety icon. These values depend on their earlier occurrences among the variety, with the consequence of discerning awareness, discerning deformation, with discriminating preservation. In the assessment phase, the purchaser structure partiality between varieties with might structure a obtain purpose to acquire the variety they favor. Though, two issue be able to interfere among the acquire meaning and the procure resultfeelings of further and surprising circumstances issues.

A customers results to adjust, suspend, otherwise evade a acquire resolution is seriously partial by supposed threat. Luxurious acquire engage several hazard attractive. A customer struggle to agreement with this by assembly in sequence as of associates, and a favorite for predictable variety they canister faith.

Subsequent to a customer has really acquired the invention otherwise service, they will appraise their stage of pleasure - the client will be greatly fulfilled, fairly pleased, or else displeased by the procure choice. An approval depends on how intimately the variety supposed recital equivalent the clients potential. If apparent concert with excellence surpass their prospect then they are pleased, smooth charmed. If recital waterfall beneath their potential, they resolve be displeased and seem used for substitute variety in the expectations.

Brand equity is the long term trust built among the customers by being loyal to the specific products and the strong commitment to be loyal to the existing products among the customers is seemed to be brand loyalty. When a company creates this type of customer preference and loyalty, it can build a strong market share, maintain good price levels and generate strong cash flows. This, in turn, drives up share price and provides the basis for future growth. HarleyDavidson has been able to build a community of enthusiasts around its brand that includes members from very diverse groups, and with almost no advertising. In America the enthusiasts of the Harley-Davidson are one of the most distinct subculture. Seemed to be like the most proud

American and patriotic the individuals are generally rough looking to the outsiders. The base of the brand of the Harley-Davidson is regarded as Live and ride captured the consumers mind very effectively to achieve brand loyalty. As an American icon, Harley has come to symbolize freedom, rugged individualism, excitement and a sense of bad boy rebellion. That kind of passion explains how Harley has been able to cross so many socioeconomic boundaries. Its owners are buying much more than a mode of transportation. What bonds them to the bikes and ultimately to each other, at rallies and other events is a mutual appreciation of the look, feel and sound of the machines. Building strong relationship and maintaining this with the customers are recognized by Harley-Davidson very significantly. Thus their brand integrity become seen in the customers minds as they established customer loyalty along with providing the customers with the licensing programs that facilitated them to construct a strong interpersonal relationship with the licensees and the customers.

An organization starts its branding process by developing of a strong value proposition. After developing a strong value proposition the next step is to get customers to try the brand. To entice trial and repeat purchase requires triggering mechanisms, which are created through advertising, promotion, selling, public relations, and direct marketing. The company needs to communicate the values of the brand and then reinforce brand associations to start the wheel of usage and experience, and keep it turning. Through the combination of the stimulus of consistent communications and satisfactory usage and experience, brand awareness, confidence and brand equity are built. This is illustrated in the following figure: PRODUCT / SERVICE

BIBLIOGRAPHY Article and books: 1. Aaker, D., 'Building Strong Brands', (New York: Free Press), 1996 2. Aaker, D., 'Managing Brand Equity: Capitalising on the Value of a Brand Name', (New York: Free Press), 1991 3. Kapferer, J., 'Strategic Brand Management', (New York: Free Press), 1992 4. Keller, K. L., 'The Brand Report Card', Harvard Business Review , January-February 2000, pp.147-175 5. Kotler, P., 'Marketing Management - Analysis, Planning, Implementation, & Control', (Europe: Prentice Hall) 1996, 8th Ed. 6. Newell, F., 'Loyalty.com', (New York: McGraw Hill), 2000 Websites: www.harleydavidson.com www.harleysons.de