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SWOT analysis of Harley Davidson

By Hitesh Bhasin April 2, 2015

Table of Contents [hide]

1 Strengths in the SWOT analysis of Harley Davidson

2 Weakness in the SWOT analysis of Harley Davidson

3 Opportunities in the SWOT analysis of Harley Davidson

4 Threats in the SWOT analysis of Harley Davidson

5 Related Posts:
Strengths in the SWOT analysis of Harley Davidson
1.

Cult Brand: Harley Davidson has transformed itself as a cult brand &
positioned itself in niche segment of High CC cruiser bikes.

2.

HOG Rallies: Harley has its characteristic rallies of Harley Owners


Group or HOGS on a continuous basis which involves Harley owners
from different parts of the country to interact & experience a different
lifestyle.

3.

High Customer Pull: Its distinguished promotional strategies &


branding has helped Harley in creating a strong customer thereby
having a high TOMA score. (Top of the mind awareness score)

4.

Product Range: With its diversified product range like recently


introduced Street 500CC & 750 CC, Harley is trying to solve the ageing
problem of the current customer base so as to make it more promising
to the younger diaspora.

5.

Loyal Customer Base: With its strong image of quality and freedom
Harley has crafted its niche position in the market which is also backed
by Harley Davidson Merchandising.

6.

Due to a rich heritage and financial stability parent company is on


the growing path.

Weakness in the SWOT analysis of Harley Davidson


1.

Outside U.S Harley Davidson has a manufacturing unit only in India


& one assembling plant in Brazil which makes price to the exported
countries a bit higher. Also they are dependent on these 3 facilities to
fulfill the global demand.

2.

Over-dependence on the U.S market: More than 65% of the revenue


is coming from the U.S market. The U.S market has its own limitation in
terms of growth. So its became more risky for Harley to generate
majority of its revenue from U.S.

3.

Suppliers: Relaying on Single/Limited Suppliers can affect the


companys business in long run. As in case of increase in Input cost will
lead to increase in operational cost which in course will affect the cost
of commodities resulting capacity constraints, lower production,
financial distress to suppliers which will ultimately result in delivery
delay & customer dissatisfaction.

Opportunities in the SWOT analysis of Harley Davidson


1.

Asian & Europe Markets: The demand in the developing Asian &
European nations is increasing for Harley and there are very (rather no)
players

competing in

this

segment.

Thus, it is

a very

attractive

opportunity for Harley to capture these markets aggressively.


2.

Lower CC bikes: With its own set of loyal & cult followers, it can
attract the young customers for whom if it can launch low end
heavyweight vehicles (say 350 CC) which will help the company to
increase its Customer base.

3.

Women & Young Riders: Harley can use its increased marketing
efforts to further increase the customer base by marketing towards
untapped segments. For example, in 2000, women riders were
purchasing about 15,000 motorcycles per year. In just 5 years, sales to
women had jumped to over 30,000 motorcycles per year. In 2006,
women accounted for 12% of all bike sales.

Threats in the SWOT analysis of Harley Davidson

1.

Myopic Approach: Being market myopic can affect the Harley


brand .As its 65% of sales comes from the U.S market, this over
dependence can lead to internal distress.

2.

Substitutes: With more & more companies in heavyweight segment


going global Like Royal Enfield, Indian Motorcycles, Vector Motorcycles,
Triumph Motorcycles, these substitutes with low price offering can
affect the overall business of Harley.

Marketing mix of Harley Davidson


By Hitesh Bhasin July 7, 2016
The legacy of Harley Davidson began in the year 1903, in Milwaukee,
Wisconsin, U.S.A when two young and exuberant minds of two friends
William S. Harley and Arthur Davidson, started working on a project which
was to overcome a hurdle of climbing hills on a cycle, in the nearby up
hills. They planned to equip their cycle with a motorized engine to solve
this situation and utilized a garage space in the house of Mr. Davidson,
where the very first engine with a capacity of 116 cc was developed and
fit into a cycle.
What started as a mere experiment went on to become one of the most
iconic brands in motorcycle industry, which is sought after by people
across age groups and borders alike, and has created a niche for itself, by
providing out of the box designs and latest technology, constantly
changing with times, and in fact remaining abreast sometimes.

Table of Contents [hide]

1 PRODUCT IN THE MARKETING MIX OF HARLEY DAVIDSON

2 PRICE IN THE MARKETING MIX OF HARLEY DAVIDSON

3 PLACE IN THE MARKETING MIX OF HARLEY DAVIDSON

4 PROMOTIONS IN THE MARKETING MIX OF HARLEY DAVIDSON

5 Related Posts:
Currently, after more than 100 years of its inception, the company is
headed by C.E.O Keith E.Wandell, and hasoperations in almost all major
countries across the globe and a strong employee base of more than
6000. This paper is focused on the marketing function of Harley Davidson,
and bring forth its marketing-mix and related strategies.
PRODUCT IN THE MARKETING MIX OF HARLEY DAVIDSON
From the very beginning, Harley Davidson has maintained a certain level
of WOW factor in providing its bike models in the market and has always
aimed at heavily built bikes, which contain a strong engine, which gives
both power and the trademark thumping sound, which in a way is also its
identity. Another trademark of Harley davidson are its design, which are
customized as per the biker and there are so many unique bik designs
that even the customer is spoilt for choice. All the designs are dashing and
most importantly UNIQUE to Harley Davidson only.
These bikes are considered as mean machines that inspire awe and
enchant millions with uniquely benchmarked shapes and designing.
Harley Davidson is the icon in terms of highway cruising bikes, which

allows long stretch drives, inspired from widespread road network of its
parent company. Heavy and high displacement engines have been an
inseparable part of Harley Davidson association, which have been known
to bear any condition and outperform in severity. In all, they offer
customers variety of models to choose from, apart from dealing with
accessories, and engines, that can be traded cheaply, as the bikes are
highly customizable and option windows are open to its customers and
prospects.
Salient points for product in the marketing mix of Harley Davidson
1.
2.

Very
Personalization

strong
of

product

product

really

impresses

portfolio
customers

3. High technology product which ignites passion for bikers


PRICE IN THE MARKETING MIX OF HARLEY DAVIDSON
As the company deals in mainly heavy built chassis and high displacement
engines, it denotes that it aims at a particular level of quality in its
products, and at the same time, aims at a particular segment or class of
customers. Harley DAvidson has always been a ultra premium priced
product for the motorcycle segment and it makes no excuses for the
same.
However, due to this policy, the company has even experienced certain
setbacks and has gone through red periods in its profit curves, which were
overcome by means of rightsizing and layoffs. Still, it carries its
bandwagon forward with similar strategies in pricing function. The effect is
that Harley Davidson probably has the best positionings when it comes to
names of premium Motorcycles. And a lot of this premium positioning is
contributed because of the price of the motorcycle.
Salient points for Price in the marketing mix of Harley Davidson
1.

Ultra

premium

pricing

for

the

motorcycle

segment

2. High price has contributed immensely to premium positioning in the


minds of the customers.
PLACE IN THE MARKETING MIX OF HARLEY DAVIDSON
An ideal place is where the customer is. This is undoubtedly the motto of
any successful business strategist and market analyst, and in Harley
Davidson, it seems this motto is being widely publicized and followed. Due
to massive exposure that it has achieved with promotions and media, and

with the passage of time, Harley Davidson has got a fantasticbrand equity
which has resulted in extensive demands from across the globe.
Furthermore, a rise in buying potential has given the power in the hands
of the customers and thus it was likely that Harley Davidson decided to
expand globally. It has been exporting bikes and spares to most parts of
the world since a very long time; however it affects its pricing to a greater
extent, due to involvement of tax structure and heavy custom duties,
which in turn limits this product to only the ardent fans or the growing
markets.
Major strategic changes are made in production policies, and two major
production units are now announced outside home country, namely in
India; for the Asian market, and Brazil; to cover distributions in Latin
Americas, which is a major Placement advantage for Harley Davidson.
1.

Selective

distribution

2. Showrooms are found in premium locations only.


PROMOTIONS IN THE MARKETING MIX OF HARLEY DAVIDSON
Promotion function has always been very strategically designed and
intricately executed by Harley Davidson, which has maintained its class.
Rather than going out and out in terms of promotion, it has carried out its
campaigns in a very subtle manner by sensibly lpacing Harley bikes and
displaying their muscle and glorifying them in movies and television
series.
It has promoted rallies, bike ride tours, cross country marathon for Harley
Davidson owners and introducing HOG (Harley-Davidson Owners Groups)
culture, which has enticed new customers, and promoted loyalty among
current owners. Apart from these, it has organized sale fares, which
promote heavy discounts in times of low sales and constantly has been
carrying out lucky draws and coupons for discounts on services, free
services and spare parts, making the promotion function innovative,
classy and out of the box, with the complete package.
Because of the strong product portfolio, Harley Davidson does not believe
in generalizing itself and therefore advertises only in the top of the line
magazines, hoardings and print media vehicles. The major pull for the
product is created through the product and the display of the product.
Most importantly, Harley Davidson over the year stands for qualities such
as strength, friendship,

and

enjoying

the journey of

life. Harley

encourages its customers to take to the road, and drive the bike to the fill
of their heart. With such brand elements, it is hard not to become a top
brand in the market.

Marketing Strategy of Harley Davidson Harley Davidson Strategy


By Hitesh Bhasin August 20, 2016
A cult brand with 6500+ employees, Harley Davidson is leading the heavy
weight motorcycles segment worldwide due to its rich design and
innovative

marketing

strategies.

Its

Heritage

with

120

years

of

experience & Socio-cultural environment is shaping the companys


offering across the different regions.
A little known fact about Harley Davidson is that it is primarily in two
segments with company name as Harley Davidson Motor Company
(HDMC) & Harley Davidson Financial services (HDFS). While HDMC sells its
power packed Harley motorcycles all over the world, HDFS provide Retail
& wholesale, and Insurance related services to only United States &
Canada.
Segmentation, targeting, positioning in the Marketing strategy of Harley
Davidson
Harley uses psychographic segmentation to cater to the changing needs
of consumers, primarily because it is a lifestyle brand. You choose a
Harley over others because you love to ride and you love buying premium
motorcycles. The distinct & innovative design has helped the company in
making Harley motorcycles popular across the world.
Table of Contents [hide]

1 Segmentation, targeting, positioning in the Marketing strategy of


Harley Davidson

2 Competitive advantage in the Marketing strategy of Harley


Davidson

3 BCG Matrix in the Marketing strategy of Harley Davidson-

4 Distribution strategy in the Marketing strategy of Harley Davidson

5 Brand equity in the Marketing strategy of Harley Davidson

6 Competitive analysis in the Marketing strategy of Harley Davidson

7 Market analysis in the Marketing strategy of Harley Davidson

8 Customer analysis in the Marketing strategy of Harley Davidson


o

8.1 Related Posts:

In this competitive market, it is very important for a company to target the


market accordingly. Differentiated targeting strategy is used by Harley
Davidson.
The positioning of Harley Davidson is very strong in the mind of
consumers as a premium motorcycle brand which is known for its
advanced technology and for its design. Harley Davidson has achieved
this positioning by giving hit after hit of products, each of which is
excellent and loved for the customization it offers.
Marketing mix Click here to read the Marketing mix of Harley Davidson
SWOT analysis Click here to read the SWOT analysis of Harley
Davidson
Mission Its our purpose and passion; we bring a commitment of
exceptional customer experience to everything we do- from innovation of
our products to the precision of our manufacturing- culminating with our
strong supplier and dealer networks.
Vision- Not found
Tagline American by birth, Rebel by choice.

Competitive advantage in the Marketing strategy of Harley Davidson


Broad product portfolio ranging from Harley Street in lower segment to
cruiser & touring bikes in the higher range has helped the company in
increasing its sales. At the same time, these products have driven the
premium brand image in the market.
Customization and accessories are the major competitive advantage of
Harley Davidson. People love their Harleys and there are numerous
customizations possible in an Harley, from the handle, the stand to the
overall looks including the accessories the driver can wear.
Harley has created a rich culture for the bikers through its Harley Owners
Group (HOG) which has rallies regularly and on continuous basis, where
Harley owners from different parts of the nation can interact & live a
lifestyle of passionate bikers.
Harley has started focusing on the emerging & developing markets so as
to decrease its dependence on the developed nations which forms the
majority of its sales. Around 60% of its sales generated from U.S in year
2014.
BCG Matrix in the Marketing strategy of Harley DavidsonHarley Davidsons standard, Touring & Cruiser models are meant for those
who believe in customization and interstate touring. These are Stars in the
BCG matrix due to its high acceptability in different markets.

Its Sportbike which is technically advanced and Dual range of bikes are
question mark as these segments have large number of players and
Harley is not able to distinguish its offerings than competitors.
Distribution strategy in the Marketing strategy of Harley Davidson

Harley distributes its bikes through their independent showrooms &


dealerships spread worldwide. The premium dealerships are supported by
HDFS so as to enable them to run the business effectively and control the
operational cost.
In some of the markets the non-traditional outlets such as AROs
(Alternate retail outlet & SROs (seasonal retail outlets) are helping the
company in further penetrating the market. These outlets are the
extension of the main dealerships.
Brand equity in the Marketing strategy of Harley Davidson
Harley Davidson is the 279th ranked brand in the world. Company
promotes an extensive motorcycling experience worldwide through
events, rides & rallies including the one organised by Harley Owners
Group (H.O.G).
It creates awareness among the riders & non-riders through wide range of
products

trademarked

with

the

name

Harley

Davidson.

Company

promotes Harley Davidson products and related lifestyle products through


H.O.G.
Competitive analysis in the Marketing strategy of Harley Davidson
Classic style, distinctive sound & design, degree of customization and
superior quality has given Harley edge over other players in the market
whether it is Indian motorcycles, Triumph or any other competitors.
Harley has been successful in creating customer experience which is
helping the company in being ahead of its rivals.
Market analysis in the Marketing strategy of Harley Davidson
Developing nations are the most emerging & growing markets which is
being targeted by the 2- wheeler companies because developed nations
sales are becoming stagnant due to large number of players eating up
each-others share. High bargaining power of suppliers & government
regulation are also making it difficult for the players to sustain. Emerging
nations are the only hope & is the biggest opportunity that if tapped will
give sustainable advantage to the company.
Customer analysis in the Marketing strategy of Harley Davidson
Harley Davidsons customers are the passionate bikers who love to ride
for long hours and to great lengths. Harley targets those customers who
are Born to ride. These customers are from upper middle income group
and are in the age group of 25-40 years. However, the age group barrier
of Hogs is long since crossed because even senior citizens love to own a
Harley and go on long drives.