Project motorcylces pt. 2

Project Motorcyles

Dr. Hakim Bey Allah

Project Management

Jasmyne Reed

May 28, 2014

Capabilities in Motorcycle Cruisers

Motorcycle Cruisers is known for creating a stream of customers who are an elite bunch of people and have their own level of desire for motorcycle. The main objective of Motorcycle Cruisers has been to maintain the brand image in the eye of the consumer so that the customers don’t ever feel the image to be diluted. It is the experience that the customer goes through makes the bond special. Company has integrated its supply chain so well that consumers gets to interact directly with the suppliers and get the motorcycle as per his requirements. It creates a long term bond towards the company from the customer side. This is the single most important strategy adopted by Motorcycle Cruisers to create successful relationship marketing with the customer. It makes the customer loyal towards the brand. Marketing personnel’s of the company are very well trained so that they can understand the actual needs and want of the customer, and assure the desired output from the supply side of the company. It is said that the company does not only sell motorcycle but they sell a complete ownership experience. This is possible only because of the employees of the company

The strategies that Motorcycle Cruisers could use are:

The aim of focused differentiation strategy is to secure a competitive advantage through offering customers of niche market with a product that they perceive as very well suited to their needs, tastes and preferences. The strategic target of focused differentiation strategy is a narrow market in which needs and preferences of the buyers are distinctively different. Attributes appealing specifically towards niche members forms the basis of competitive advantage in focused differentiation strategy. The production emphasis of products in focused differentiation strategy depends on customization meeting the tastes and requirements of targeted customers.

The value proposition for the company is to convert dreamers into customers for the company and then holding onto these customers. Motorcycle Cruisers has introduced the concept of ‘Ride free’ whereby prospective dreamers of the Motorcycle Cruisers brand are provided free ride which enforces the feeling and desire to own one someday. The work is to realize the dreamers and target them efficiently. The top bracket executives of the company has realized this and used the consumer sentiments to company’s advantage. Giving consumer the feel of the original product actually reinforces the desire among the consumer or the customer to own the product. This is the strategy initiative taken by the company Motorcycle Cruisers to target customers.

The company has historically based the organization on the basis of differentiation as its strategy. They bought a same product in differentiated form for niche audience. After the global economic crisis company has started focusing on cost leadership so that they can provide customer with the same product at a better price. This is done keeping in mind the economic scenario across the globe. Analysts have considered this to be a move whereby company will hamper its brand image which is company’s biggest asset.

The management of the company believes they are not playing with the brand image they are just focusing on streamlining some costs so that they can focus the saved money on enhancing brand image and various other promotional activities for the brand Motorcycle Cruisers. Brand image is the biggest asset for the company and has created what Motorcycle Cruisers is today. For any normal motorcycle buyer Motorcycle Cruisers is not into the consideration state. This is why relationship marketing becomes so important for Motorcycle Cruisers. The whole framework of the company is based on relationship marketing. The advertising strategy of the company has focused on creating an emotional attachment with the target segment. In Comparison to Motorcycle Cruisers which is more an integrated organization. Motorcycle Cruisers is capable organization and more than focusing on the brand image the company focus on providing integrated solution.

One of Motorcycle Cruisers’s Inc. strongest strengths is in its brand, commonly referred to as the “Bar and Shield” and the name Motorcycle Cruisers, which is well known by the public (Wheelen & Hunger, 2010, p. 16.24). The company has been around for 105 years and is known for producing quality products. Strength of Motorcycle Cruisers is the quality of the motorcycle that they produce, proven by the resale value of the motorcycles when they are resold. “In general, resale prices for used Motorcycle Cruisers motorcycles, as a percentage of prices when new, are significantly higher than resale prices for used motorcycles of competitors” (Wheelen & Hunger, 2010, p. 16.20 ). A strength that the company has is in its product differentiation. In 2008, Motorcycle Cruisers manufactured 30 models of Motorcycle Cruisers touring and custom heavyweight motorcycles while Buell sold eight different models (Wheelen & Hunger, 2010, p. 16.12). The company believes in providing a differentiated offering in comparison to Motorcycle Cruisers Incorporation which focusses on design and cost. Motorcycle Cruisers is an experience which one assocites himself with.

One of Motorcycle Cruisers threats is it customer base. The baby boomers that have the disposable income are beginning to age and with a weak economy could cause people to defer from purchasing a nice to have item such as a motorcycle. With economist predicting a recession for 2008, there is the possibility that this will cause dealerships to maintain a larger inventory of high priced motorcycles which will drop the prices of 2008 models as the company brings out the 2009 models (Wheelen & Hunger, 2010, p. 16.1). Another weakness is the percentage of the female market that Motorcycle Cruisers has been able to capture as the number of female riders increase. In 2006, 12% of Harley owners were female (Wheelen & Hunger, 2010, p. 16.12). While this is more than the 10%, there is still room for improvement since nearly 1 out of every 10 motorcycle owners are female, based on an owner survey conducted by the Motorcycle Industry Council (Wheelen & Hunger, 2010, p. 16.11). In 2006, the market share for standard bikes was 2.1, with a standard bike being a basic no frills motorcycle at a low cost (Wheelen & Hunger, 2010, p. 16.21 exhibit 10)

With Motorcycle Cruisers opening its first store in mainland China there are great opportunities to expand sales in this market and other markets internationally. With Motorcycle Cruisers’s brand and the expanding Chinese economy this is a great opportunity to expand its sales. Another international market I didn’t see them operating in India which has a huge population and the country is beginning to improve economically.

First, I would strong recommend the firm to focus on expanding into other nations. For instance, countries like India could be a great prospect for the firm. Since, the firm already has a manufacturing unit in China; it can target various nations in South East Asia for its sales.

Second, it must introduce and implement new advanced technology to reduce its costs and improve the quality of its manufactured goods. Japanese manufacturing firms are far more superior to Motorcycle Cruisers when it comes to quality management. Today, company is working in a global platform and therefore, must focus on competing on a global scale. Motorcycle Cruisers Company should focus on younger people, women and untapped foreign locations.

Wheelen, T., & Hunger, J. (2010). Strategic management and business policy: Achieving Sustainability (12th ed.). Upper Saddle River, NJ: Pearson.