The New Harley-Davidson

Team Awesome

  Harley-Davidson’s Mission Statement “We ride with our customers and apply this deep connection in every market we serve to create superior value for all of our stake holders”.

Harley-Davidson’s Vision  "We fulfill dreams inspired by the many roads of the world by providing extraordinary motorcycles and customer experiences.  We fuel the passion for freedom in our customers to express their own individuality”.                                                                                                                                                  (Harley)

Harley Davidson's current problem is the fact that their main target consumers, the baby boomers are getting older. 

 Their current strategy in not effective in reaching numerous potential customers.

They have choosen to focus their investments in to the HD brand because they believe it will provide them with substantial long term opportunities in the global market

The Problem

Competitors     Yamaha has an advantage because it offers a variety of different products beyond motorcycles, only 50% of it's revenue is generated from motorcycle sales.     Suzuki  after forming an alliance with Kawazaki in 2001, Suzuki was able to strengthen their product in many areas (product development, design, engineering, and manufacturing), allowing them to become a true global cometitor.      Honda is Harley Davidson's main competitor.

Our Proposed Marketing Plan To create a new target audience that would in turn increase the overall sales of the company.

Strategy: Identify New Target Audience Proposed target market:men & women, age range is 25-55, who according to the U.S. Census 2000 make up 43.6% of the total U.S. population.   Brite Lites Li’l CityMedian HH Income is 75,000 ~  1.6% of U.S. Households.

Boomtown Singles Median HH Income is 41,000 ~  1.4% of U.S. households. 

                                (Prizm)

Product• Wide range of products and prices

• Unique Features different from our competition 

 • Benefits that come along

• Quality level

• Packaging 

• Branding 

Place

• New Objectives

• Positioning - Creative

• Expansion - International

• Channel Type - Mix of new and old audience

• Current Stores - Plans for new ones

http://www.enelmibor.com/all-about-harley-davidson-image-and-beyond/ http://www.allaboutbikes.com/everyday/news/3447-harley-davidson-riding-a-new-road-with-victors-a-spoils

Price

Continue with the same price 

Wide Range of Prices:

Base Low - $7,999

Base Middle - $24,000

Base High - $36,499

Promotion Objectives – Utilizes social media to get more people involved in the brand, the next generation is the ones who are using this media outlet, why not utilize it and grab their attention, not to sell the actual product, but to sell the brand   

http://nwhog.wordpress.com/2010/12/06/harley-davidson-reach-and-relevance/http://www.enelmibor.com/what-do-you-know-about-harley-davidson-american-culture/

SWAG 

Media Type

Marketing Tactics

1. College Campus Tours  2. To better utilize the forum that exists that is meant for communication between Harley owners. 3. Hold expos in larger more urban cities with younger populations. 4. When advertising focus more on selling the "image" rather than the product to the younger generation, focusing on women and that Harley is an American way of life, while continuing some advertising towards the older generation.

http://www.youtube.com/watch?v=EnN_u1PDgK4

Allocation of Funds

Advertising Advertising

Positioning  • Identifying as a "Dream" machine.• Marketing the less expensive bikes.• Focusing advertising on the bike, rather than the rider.

Differentiation  • Encouraging their less expensive products.• Focus on tradition.• Merge the new identy and the HOG mentality

SWOT Analysis

Strengths

• Solid Name• Solid Audience• Innovation

Weaknessess

 

• Cutting off possible new audiences

Oppurtunities

 

• Reach out to younger generation• Reach out to women• Bridging the gap

Threats

 • The greatest threat to Harley Davidson is other companies who sell

motorcycles. Specific companies, such as Yamaha and Suzuki, market to a younger audience, and not only sell motorcycles, but other sports vehicles such as snow mobiles that appeal to a younger audience. Another threat would be car companies, because that would be a competition to the motorcycle.

Implementation and Control

•  Build relationships with college campuses and set the goal to go to one campus per state

• Redesign and promote the current forumo focus discussions within forum

• Contacting businesses in cities (ex: Grand Rapids) to participate in the expos while promoting our product

• Creating a series of advertisements for the new target audienceo including social media

• Conduct evaluations 

Any Questions?