Harley-Davidson Presentation

Presented By

Hafiz Sajjad Rasheed

Muhammad Ali Zaka

Muhammad Rashid

Introduction

• Harley-Davidson, Inc. manufactures heavyweight (engine displacement of 651+cc) custom and touring motorcycle and related products.

• Harley is the only major American manufacturer of Heavyweight motorcycle America.

• Has about 5700 employee's till 1997.

• Harley-Davidson acquired Eaglemark Financial Services, Inc.

History1903:

William S. Harley and Arthur Davidson make available to the public the first production Harley-Davidson motorcycle.

1907:The Company was Incorporated at Milwaukee, Wisconsin.

1969:Harley Davidson acquired by the American Machine and Foundry Company (AMF), a longtime producer of leisure products.

1974: Production expanded by AMF Inc.

History (cont..)1981:

Vaughn Beals Head of Harley Davidson and 13 other executives-leveraged buyout (LBO).

1993:Harley-Davidson celebrates its 90th anniversary in Milwaukee With a Family Reunion. An estimated 100,000 members ride in a parade of motorcycle.

1998:

Harley Davidson celebrates its 95th anniversary. 140,000 plus riders to participate in anniversary.

Overview

• In 1995 the company acquired Eaglemark Financial Services.

• Harley Owners Group (HOG) is the largest motorcycle club in the world.

• Company operates in 2 business segments, Motorcycles & related products and Financial Services.

• The company had licensed the production & sale of a broad range of consumer items.

• 577 internationally independent dealers in 55 countries.

Business Segment

Harley-Davidson have two Business Segments

1. Motorcycle and Related Products

2. Financial Services.

Global Competition

• Rivalry centered on performance, styling, breadth of product line, image and reputation, quality of after sales services & price.

• Great degree of price variability as compared to Japanese motorcycle. Japanese offer high performance bike at low prices.

• Resale prices of Harley-Davidson bikes are higher then the competitors.

Answers to the QuestionsAns # 1:

The company is using Direct Marketing strategy because the company’s marketing efforts were divided among dealer promotions, customer events, magazine and direct mail advertising, public relations and cooperative programs with Harley-Davidson dealers. The company also sponsored racing activities and special promotional events, the company also formed a riders club in 1983 with the name of HOG (Harley Owners Group)

Answers to the QuestionsAns # 2:

When in 1969 AMF Inc, acquired Harley-Davidson Company they ignored the Japanese Competition & only favored short-term profits instead of investing in R & D, So due to this Harley-Davidson began to turn out noisy, oil leaking, heavily vibrating & hard to handle machines.

In 1975 Honda Motors introduced its “Gold Wing” & there was a $2,000 price differential between Honda's “Gold Wing” & in Harley’s Top of the line motorcycles.

This caused American buyers to start switching to Japanese motorcycles.

Answers to the QuestionsAns # 3:

Because the company’s major competitors had greater financial and marketing resources. Their overall sales volume was greater than the company, and they were more diversified than the company. Harley Davidson only focusing on the heavyweight (651+cc) motorcycle segment.

Recommendations

• Increase Diversity Programs

• Explore opportunities for physical plant expansion in other geographical areas to increase labor pool.

• Increase sales to younger customers by expanding the Buell line. • Expand into European market.

• Modify the Prices.

Any Question

?