Some of the work i have done

Harley Davidson Business Analysis

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Harley Davidson Business Analysis

Part I: Differentiation Strategies

Harley-Davidson has seven different main brands of motorcycles in 2014. We will take a closer look below at the brands target market. Their similarities and the possibilities that they can be merged to make a better product.

The first are Sportster brand of motorcycles; there are six different types of bikes under this brand. Super Low, Iron 88, 1200 Custom Super Low, 1200T Forty-Eight and Seventy-Two. The Sportster motorcycles have been introduced into the market as beginner bikes. The bikes target market is mainly less experienced riders and women as it is a lighter bike than the other models. They are cost effective as they cost from $8249 upwards. It has been introduced in the emerging market of India with some success (Thakar, 2012).

The second are the Dyna brand of motorcycles; there are five different types of bikes under this brand. They are the street bob, Low Rider, Wide Glide, Fat Bob, and the Switchback. The target market for the bikes is for the more experienced biker. This brand of bikes is also being introduced in new markets such as India.

The third are the Softail brand of motorcycles; there are six different types of bikes under this brand. They are Fat Boy, Fat Boy Lo, Softail, Deluxe, Heritage Softail Classic, Softail Slim, and the Breakout. The target market for the bike is the riders between the ages of 30-45 years of age (Carpenter, 2012).

The fourth are the V-rod brand of motorcycles; there are two different types of bikes under this brand. They are Night Rod Special and the V-Rod's Muscle. They are designed to appeal to the younger male riders who want a bike with a bit more power than the traditional Harley (Rider plus, 2011).

The fifth are the touring brand of motorcycles; there are five different types of bikes under this brand. They are the Road King, Street Glide, Street Glide Special, Electra Glide, Ultra Classic, and the Ultra Limited. This model of bikes targets the long range bikers who like to travel for long trips using their bikes (Crowe, 2006).

The sixth are the Custom Vehicle Operations (CVO) brand of motorcycles; there are four different types of bikes under this brand. They are the CVO Road King, CVO Breakout, CVO Softail Deluxe, and the CVO Limited. This brand of bikes targets the enthusiast Harley-Davidson customer. They are a limited edition of the factory built models from the brands above that come with unique custom parts, upgrades or paint jobs not available in the regular models.

The seventh brand is the Trike, which targets the traditional bike enthusiasts who might be getting on in age. It also targets foreign markets such as Japan where the Trike is considered a vehicle not a motorcycle thus one can buy it and have something unique (Hyuga and Mukai, 2014).

From the information above the Dyna brand of bikes and the Softail bikes are similar, the major difference between is the performance between the two. The Softail bikes are from the more powerful and thus a bit pricier. The Harley Davidson name alone is a unique selling point due to its long history of over 100years. The company needs to work on its V-Rod brand though they are powerful for a Harley. When compared to its compatriots in Honda or Kawasaki, they need to work on making them meet the competition in terms of speed and torque.

Another advantage of the Harley brand is that you can upgrade an older model, by buying a newer version of parts to make it more powerful. Something is not easy to do with other brands. The brand name helps as the Harley bikes maintain their resale value better than their compatriots. For example, when one mentions Honda one can think of an outboard machine for a boat, but the Harley brand name is easily recognizable because they have specialized in the motorcycle industry.

Part II: SWOT Analysis for Harley Davidson

Strengths

It provides financial services for its potential customers who want to make purchases. This is a good marketing tool. It dominates the luxury heavyweight motorcycle industry within the United States. Its brand name gives it an edge over the competition as it has a long history with the public over 100years. It provides the spare parts for its motorcycles ensuring the quality are good. It has maintained a good relationship with its suppliers ensuring that the quality of the workmanship is good while still being relevant in terms of price.

It has formed a club for owners of its motorbike owners which is a strong marketing gimmick as once one joins after buying they will easily repurchase from Harley again. It also participates in the motorcycle shows and sponsors such events. The management ensures that they have a long lasting relationship with the employee that makes the workmanship keep getting better. The company also takes part in corporate social responsibility it supports the breast cancer network of strength and the muscular dystrophy association. This is good for the brand and also for marketing. It also helps customers to customize their motorcycles. They can build on customer loyalty by ensuring that they provide the best quality luxury heavy motorcycles in the USA.

Weaknesses

Their products are quite pricey compared to the competition as the cheapest motorbike is about eight thousand dollars. In October 2013, it recalled some of its bikes due to some issue with the clutch system. This could dent their image for quality though Harley Davidson management voluntarily did the recall.

Majority of the company’s sales are from the USA although it has been making inroad in countries such as Japan, India and China. It needs to get a better marketing strategy for it to increase its market share in these foreign markets. The company is unable fully to analyze the need for the heavy bikes in the future; this may result in underproduction. The company also has a low credit rating.

Opportunities

They have seen increased demand for their motorbikes especially in emerging markets such as India. They have introduced the Sportster brand of Harleys that is targeted at nontraditional Harley Davidson customers such as minorities and women. If they can capture this market, they can be able to diversify which is always good.

They have a strong brand name that they can use to penetrate the international market easily. Environmental laws on emissions are advantageous to the company as compared to vehicle or automobile motorbikes emit less carbon. The international market for heavyweight motorbikes is growing this is an opportunity for the company to take advantage and aggressively tap into this market. It needs to invest in its research and development department more to do this well.

Threats

The first threat to the company is the new emission standards set for two-wheeler’s which may cause the cost of production to go up. The company faces stiff competition from its rivals such as Suzuki, Honda and Kawasaki. The company depends on a single supplier for certain raw materials this may be detrimental to the company if the supplier is unable to fulfill his obligations (Global data, 2013).

Part III: Growth and Profitability Strategies

In my opinion, the company can make the following changes in its strategy in the international market

My first suggestion would be to boost the research and development team which has been doing a good job in the USA market. The company should also use the R&D team to focus on the international markets specifically. For example, the best motorbike brand I think that would do well in emerging markets such as India would be a cross between the Dyna and Sportster. The bike would be powerful yet cost-effective so that it can appeal to more consumers in the country.

The second suggestion is to replicate the marketing strategy currently in the USA of having a Harleys owners Group (HOG) club. This will increase the interaction between the company and these new customers. The advantage of this is it also encourages loyalty to the brand as any queries or suggestions can be dealt with at club meetings. This meeting could be first held with the help of local dealers who can provide feedback to the company for implementation.

The third suggestion would be holding bike shows and events in the European markets specifically to attract more customers. The intention of this is to create awareness of the availability of the Harley Davidson motorbikes outside of the USA. It will also act as a way to advertise the motorbike.

References

Carpenter, S. (2012). Harley-Davidson unveils Seventy-Two and Softail Slim motorcycles. Retrieved from http://articles.latimes.com/2012/feb/02/business/la-fi-harley-new-models-20120202

Crowe, P. (2006 ). Harley Davidson and Changing Demographics. Retrieved from http://thekneeslider.com/harley-davidson-and-changing-demographics/

GlobalData. (2013). Harley-Davidson, Inc. - Financial and Strategic Analysis Review. Retrieved from http://callisto.ggsrv.com/imgsrv/Fetch?banner=4d609cd7&digest=27b6b6d33026b58ef227e0025dda7d42&contentSet=SWOT&recordID=47405_GDAUT29887FSA

Huga, T & Mukai, A. (2014). Harley-Davidson Targets Car Drivers With Trikes in Japan Push. Retrieved http://www.bloomberg.com/news/2014-02-27/harley-davidson-targets-car-drivers-with-trikes-in-japan-push.html

Ketan, T. (2012). Harley Davidson targets ten-fold jump in India sales by 2016. Retrieved from http://articles.economictimes.indiatimes.com/2012-05-11/news/31669270_1_harley-davidson-india-anoop-prakash-harley-davidson-motor

riders plus. (2010). Ten Years of the Harley Davidson V-Rod. Retrieved from http://www.ridersplus.com/articles/bike_reviews/Ten_Years_of_the_harley_Davidson_V_Rod_printer.php