"LIVE YOUR LEGEND"

HISTORY AND MISSION

Harley Davidson is an American motorcycle manufacturer, founded in 1903,at Wisconsin,United States. It was founded by Wiliam S. Harley, William A. Davidson and Arthur Davidson. After having suffered the period of the Great Depression ,two World Wars and numerous other periods of poor economic

health, it has emerged as the word's largest motorcycle manufacturer, iconic for its brand loyalty.

MISSION-"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.”

Harley Davidson is present in two segments -

1. Harley Davidson Motor Company(HDMC)-associated with manufacturing and selling the power packed

motorcycles. 2.Harley Davidson Financial Services(HDFS)-Associated with retail,wholesale and Insurance related services in

only Canada and U.K.

Marketing Mix -The 4 Ps

1. Product-Very strong product portfolio,line and category extension, customization and high technology product which impresses customers.

2. Price-Ultra premium pricing for the motorcycle segment,which has contributed to premium positioning in the minds of the customers.

3. Place-Selective distribution and the showrooms are only found in the premium places(place of the target customers).

4. Promotion-Test rides ,rallies, sponsoring in events,glorifying the bikes in movies and T.V. series.The major pull is the product and the

display of the product.

Marketing Strategy

Events for Harley Owners

Large Dealership

Network

Targeting variety of customers nowadays

Learn To Ride Program

Highly customized motorcycles

Cult Branding-Rules and Features

Harley Davidson can be considered to be cult brand. Cult brands have some key features.They are-

Cult brands have a small customer base with enormous brand loyalty.They attract customers with propositions different from the      mainstream  They tend to differentiate their product well as well as dare to be different.They are normally well priced.                                                       They promote a sense of personal freedom,determination and are inclusive.

The huge success of the company can be attributed to it gaining the loyal support of its customers.Its core

customers are primarily men above 35 but nowadays even women and young adults are joining the brand

community.The company strives towards customer satisfaction and providing the ultimate "Harley

Experience" Brand loyalty can be achieved by-

1.Interacting closely with customers. 2.Developing loyalty programs and a strong brand

community.

The Harley Davidson Riding

Academy personalizes experience

Operation Personal Freedom

Promotes loyalty

The Rolling Thunder Honours promotes a sense of comradeship

Introducing people to the Harley Experience with the excitement of baseball

Add subheading

The Harley Davidson Museum

The Harley Davidson Street 750 motorcycles in the flat track racing

event-X GAMES

A strong brand community-H.O.G The Harley Owners Group

Advertisements

The company has always come up with quirky ads which catches the eye.All its campaigns consist of a central theme

and it works on it.Its most recent campaign -"Live Your Legend"-inspires people to enjoy the freedom of life and

carry on the legacy of the brand. It is portrayed beautifully in the form of stories of the cult followers.

S.W.O.T. Analysis

Strengths:             Cult BrandH.O.G RalliesLoyal Customer BaseProduct RangeRich Heritage and Financial Stability

Weaknesses:           Limited manufacturing unitsOver dependence on the U.S. markets.Relying on limited suppliers.

Opportunities:            

Expansion into Asian and European markets.Develop low heavyweight vehicles for youngsters.Draw in female customers through marketing campaign.

Threats:                      Myopic approach-Over dependence on U.S. market.Competitors with lower price offering.

Questions from the book Marketing Management.

Q1. What has Harley Davidson done with its H.O.G. program to create an extraordinary customer experience that is unique and valuable to all its

customers? Has the motorcycle manufacturer been successful?

Ans:H.O.G stands for the brand community of Harley Davidson- Harley Owners Group. Members of H.O.G are able o enjoy exclusive benefits. They

are invited to new product launches, major  destination rides, charity events to be naming a few. Each and every country has their own H.O.G. whose

members organize rallies and various events.Harley  Davidson is a lifestyle brand. During H.O.G rallies while riding with other Harley owners ,riders

experience a sense of bonding,along with freedom and adventure. Families ,children and women are also a part of H.O.G.

All these initiatives are taken to promote a strong customer relationship with the brand and promote loyalty. Harley Davidson has been highly

successful in  it.

Q 2. To enlarge the customer base, what would you recommend Harley- Davidson do to cultivate long-term relationships with a younger

audience,aged between 18-34?

Ans. To enlarge its customer base and attract the younger customers. Harley Davidson should introduce low heavyweight motorbikes for them, with designs that would suit them. It should organize test rides for them

only and also organize events specially for the young customers. Also during the major H.O.G rallies these youngsters would be permitted to be

present so that they can glimpse the thrill of the Harley Experience. Young personalities can also be used for endorsement.

SUMMARY

History and Mission.The 2 segments- HDMC and HDFS.Marketing Mix-The 4 Ps.Marketing StrategyCult BrandingBrand loyalty-How is it acquiredEvents which draw loyal customers and promote freedom and thrill.The various advertisement campaigns.S.W.O.T. AnalysisQuestions from the book- Marketing Management- by Kotler and Keller.

DISCLAIMER These slides were created by Surabhi Shome, Nit Durgapur

during a marketing internship program under professor Sameer Mathur,IIM Lucknow.