Global Branding Strategies

May 10, 2011

Clara Dorval Satheesh Kumar Chinnappan Kannan Jaganathan Pierre-Henri Reix Jessica Sarrade

History of HD
1903 William S. Harley & William, Arthur, Walter Davidson 1909 First V-twin powered bikes, it became most enduring icons of Harley Davidson history. 1917 1/3 rd of the bikes were sold to the U.S military, at last 20,000 HD bikes were used in World War I (1918). 1922 HD dealerships spread across 74 countries. 1933 An Art deco Eagle is printed on tanks this starts the graphic design on HD.

History of HD
1953 Attractive logo was created for 50th anniversary with caption 50 years-American made. 1983-1986 Entered into American & New York stock exchanges. 1997 Two big plants constructed in Milwaukee & Kansas cities. 2002 Open Road Tour debuted in Atlanta to celebrate upcoming 100th Anniversary.

History of HD
2002 demand for heavy weight motor cycle in U.S grew up by 17% compared to IGR of 10%. 2003 more than 950,000 bikes were sold in U.S & 28 million world wide expect to grow 5% every year. HD recorded its 19th consecutive year of record earnings in 2004. Harley is the only major American Manufacturer of heavy weight motor cycles. Have more than 15,000 employees.

Main features
Harley Davidson Softail Family eg:narrow seats, tombstone tail lights, full length floor boards Harley Davidson Sportster Family eg: low-rise handlebars, bullet style headlight. Harley Davidson Touring (Dressers) Family large windshield & have a full front fairing. leather saddlebags, optional sidecar, & option to customize. Engines
Big V-twins, Small V-twins, and the Revolution engine

Main figures
2009 - HDs share of the U.S. heavyweight (651+cc) market was 53% &12% in Europe. (app.) Capital Expenditures were $116.7 million in 2009 & $1.0 billion in the last 5 years. $100 invested in Harley-Davidson at the end of 1986 would be worth approximately $9,000 at the end of 2009 The Company incurred R&D expenses of $143.1 million, $163.5 million and $185.5 million during 2009, 2008 & 2007 respectively.

HDs motorcycle Shipments

HARLEY-DAVIDSON, INC. NYSE: HOG Fact Sheet

World wide Revenue

$282.2 $4.3 billion 2009 million motorcycles

$767.3 million
$3.2 Billion

parts & acce. general merchandise

HARLEY-DAVIDSON, INC. NYSE: HOG Fact Sheet

2009 Worldwide Retail Sales of Harley-Davidson Motorcycle

HARLEY-DAVIDSON, INC. NYSE: HOG Fact Sheet

VALUES OF HD
Values are the heart of HD business,they guide our action and serve as the framework for the decisions and contribution of our employees make at every level of the company. Tell the truth Be fair Keep your promises Respect the individual Encourage Intellectual curiosity
Source HD website

Product extensions
Motor Cycles Bike accessories

Buell motor cycles: wholly owned subsidiary of Harley by 2003 (closed now)

Brand extensions
Merchandise Helmet Clothes (Jackets) Mugs Collectibles.

Beer Bars

SWOT - ANALYSIS
Strengths HD operates in two segments- HD Motor Cycles& related products and HD Financial services(hdfs). HD is the only American heavyweight motorcycle manufacturer. Strong brand name & relationship with customers HD having good marketing division and its divided as a dealer promotion, customer events, magazine and direct mail advertising and public relations. Customization of the bike is HDs major revenue maker.

Weakness
High price Top board of directors were all men Lack of employee diversity HD has problem in gaining more market share in some European countries. Required production is not met.

OPPORTUNITIES
Women & younger riders are showing more interest in bikes The international heavy weight market is growing and is now larger than the U. S. heavyweight market Market share increasing in Europe and Asia for the last two years Increasing demand in US markets for bikes Customers value quality parts

THREATS
Harleys average buying age is 42 years old & it still increasing. The European Unions motorcycles noise standards are more stringent than those of Environmental Protection Agencies in the U.S and increased environmental stand. Some competitors of Harley Davidson have larger financial and marketing resources and they are more diversified. Environmental protection laws. Shifts in buyers needs & taste.

DIAGNOSTIC
The market: good
The brand: good But we can increase the brand and the market always improve

Positioning
Expensive

Good engineering

Quality

Innovative

Strategical view
Real experience through messages living between two ballads and the new offer of rent.
Guaranteeing quality. Style and custom especially with HOG ( harley owners group).

Existing Brand Alliances

In USA: Shell and Harley Davidson (joint communication) In offers about mapping oil-pit stations through the HD ride planner

 Shell also will be the exclusive fuels sponsor of the Harley-Davidson 105th Anniversary Celebration in August 2008 (joint communication)

Existing Brand Alliances

In France: Lentre and Harley Davidson via the agency Fidback. (joint communication)

Lentre, creator of High Fondness and the American legendary brand Harley Davidson joined with the agency of Fidback communication to present Wafer of Kings Harley Davidson, limited edition 2011: cake eaten in France on Twelfth Night.

 These two famous brands have strong common values: the share, creativity, quality and the requirement.
The seven silver bean and engraved emblematic symbols of Harley Davidson were hidden in the cakes but also proposed in box collector (symbolic co-branding)

Existing Brand Alliances

Ford and Harley Davidson: Trucks (ingredient co-branding)

Ford and Harley-Davidson delivers a new standard of "custom cool," combining the smooth handling and legendary durability of America's best-selling truck with the authentic styling of Harley-Davidson.

Existing Brand Alliances

Bell & Ross and Harley Davidson (ingredient co-branding) Luxury watch maker Bell & Ross have teamed up with british bike customizers Shaw Harley Davidson (the most distributing) to create this custom chopper: the Bell & Ross inspired Nascafe Racer.

Existing Brand Alliances

Gibson and Harley Davidson (joint communication) Harley-Davidson and Gibson Guitar hosted Night of Custom, celebrating the art of customization. Bringing together music and motorcycles, the event saw exclusive music performances including a phenomenal set from British rock band Feeder who headlined in front of an intimate audience of 100 people

 Similar to the Harley-Davidson motorcycle brand, no other musical instrument brand encapsulates the Rock and Roll culture like Gibson.

Brand Extensions Failures

The Harley Davidson Cake Decorating Kit
It didnt do well with its cake-decorating. Customers dont like this type of product. They didnt subscribe to this idea.

Brand Extensions Failures

Perfume/ Shampoo / Shower gel
For lovers of the motorcycle, this was an extension too far. Harley Davidson had fallen into the trap of thinking that more products equals more sales. And it usually does, at least in the short term.

 But after, the image of Harley Davidson is less good.

Brand Extensions Failures

Wine coolers As you would expect, the bikers were not impressed. It was a bad idea, customers prefer beer Harley Davidson.

Conclusion
The brand need to focus on the quality and not on cheap products: out of DNA. Customers want coherence. So the DNA is very important: its the heart. The company need to do entension brand but to concentrate on the quality, like alliances brand in the european market successful association

 Making real dreams caused by worldwide roads by offering our customers exceptionnal sensations. We nurture their passion for freedom so that they can express their mind.

Our Vision

Our Mission
Providing bikes and all the world around through a faithful community

 Organizing a complete offer including not only a bike but also some clothes, accesories, routes and integration to a community

Our Action

Brand structure
Profile ( 3 axis)

methodology

Gender: girls 10 boys 19 Age : students 22 older people 7 Nationality: foreigners 10 french 19 = 29 The profile of questioned people is more masculine, younger and quite well-balanced.

Statiscal Analysis
rptition % YES % NO %

band
look

50
46

9
8

15
15

7
7

35
31

12
10

famous bike legend leather jacket

USA landscape masculine

30 20 22 22
25 22 27

6 4 4 4
5 4 5

8 3 4 4
19 16 13

4 2 2 2
9 8 6

22 17 18 18
9 6 14

7 6 6 6
3 2 5

culture
travel

21
32

4
6

12
12

6
6

9
20

3
7

Brand structure
USA CULTURE LANDSCAPE
Look Band

Bike

Core
Famous Brand

Travel Legend

Periphery

MASCULINE

proposed strategies

Brand extensions

 Extension in international work company / Television and video production company ( TV shows, TV programs) Potential in a customized channel or some biking entertainment shows: The more possible opportunity is to sell motor shows. Otherwise, we can maybe take over an existing motor channel ( AB moteur, motor TV). Risk: very expensive.

 Create a independent label of music Potential to sign rock bands. To help young and old bands. To have very strong values: creativity and quality.

To endure the Rock & Roll image.

USA

CULTURE

LANDSCAPE

Look

Band

Bike

Core
Famous Brand

Travel Legend

Periphery

MASCULINE

Brand alliances

 Restaurant chains for a symbolic co-branding Potential in quality and close-to-greater major routes restaurant chains: We can collaborate with Buffalo Grill for a flavour roadtrip (bull, corn, eggs..) in Europe.

 In USA and around the world, we can focus on Mortons steakhouse: a special meal Harley Davidson for Mortons

USA

LANDSCAPE

Look

Band

CULTURE
Travel Legend

Bike

Core
Famous Brand

Periphery

MASCULINE

 Johnny Hallyday for a symbolic co-branding (In France) limited edition : To create new features, new customization Johnny reflects the image of the brand because he has the physic and the music: Rock & roll

USA

CULTURE

LANDSCAPE

Look

Band

Bike

Core
Famous Brand

Travel Legend

Periphery

MASCULINE

 Lady Gaga for a symbolic co-branding Joint communication is done, in her clip Judas

 But create for this co-branding a new motorcycle: more little, more sport (like Buell motorcycles) for females and young customers
With Lady Gaga: because joint communication was successful for the image of the brand and: controversial image rocknroll attitude strong, popular image american image talented singer and creative person

 To concentrate on a new segment: female, more young people. Motorcycle: less expensive (like Buell) Young image for Harley Davidson with this alliance.

USA

CULTURE

LANDSCAPE

Look

Band

Core
Bike

Travel Legend

Periphery

Famous Brand

MASCULINE

 Joint communication with WWF The World Wide Fund for Nature (WWF): an international non-governmental organization working on issues regarding the conservation, research and restoration of the environment.

 Communicate on the respect of the environment. The nature is important for customers.

USA

LANDSCAPE

Look

Band

CULTURE
Travel Legend

Bike

Core
Famous Brand

Periphery

MASCULINE

Recommandations
Expand european market Made new alliances with some local bike companies to produce low cost motor bikes eg: India Increase diversity programming (Tour, museum) Explore opportunities for physical plant expansion into other geographical areas to increase labour pool (US + international)

Conclusion
Harley- Davidson have to change American culture and helped the future of motorized vehicles. Must implement latest technology & facilities. Loyal customers are not sufficient for company to survive. its a journey but not a destination

Thanks for paying attention