Harley Davidson’s Focus Strategy

Presented by:Sandeep MishraNidhi AgarwalGaurav SawlaniNaveen Sharma

Vision

• “We fulfil 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.”

Mission• We ride with our customers and apply this deep

connection in every market we serve to create superior value for all of our stakeholders.”

Focused differentiation

Company exclusively focused on heavy weight motorcycle segments. Distinctive design and well known for heavy customization. Best style and quality. Not just a product but symbols of American Free-spiritedness. Brand focused on becoming a "lifestyle brand” or “a cult brand”. A strong bond between Customers and Product. Had made it beyond competition. Majorly the target group is people age between 35 and above. First to launch “The ladies of Harley” for women.

SWOT Analysis

Strength

Strong marketing

Product Quality

Brand Recognition

Trademark

Licensing

Supplier

relationship

Designer Store

Service

Distribution

Channel

Wow Biking

experience

Weakness

Price factor Brain drain Reliant on few suppliers Market share Ongoing capacity constraints Lengthy lead time

Threats

Harleys ongoing capacity

restraints

Loss in domestic market

share in recent years

Competitors of Harley

Davidson

Environmental

protection laws

Higher production Costs

Recession

Opportunities

The international market is

now larger than the U. S.

Customers value quality

parts.

Women and younger riders

are increasing becoming

interested in bikes.

Industry registrations of

heavyweight motorcycles

are increasing.

Trouble Ride

• 2008 Global recession sales fell by 29.9%.• Tough competition from Japanese side.• Losing aging customers i.e Baby Boomers• Revenue fell by 17.1% i.e US$ 3.57 billon

Delivering Results Through Focus

• For Productivity and Profitability.• Plan for sustained long-term growth.

Basic pillars of this strategy Continuous improvement Leadership development Sustainability

Objective“To increase sales to its core customers and expand

strength”.

Intensıve Strategıes

Market Development• Harley-Davidson can bring in

their vehicle to Asian countries (India, China), because these countries have a high population and the market potential is also high.

• The cost to bring in the old vehicles (old product) to India is so much difficult:

- There are so much environmental laws

-Taxes are problems -Levis are high in India

• So starting new plant in India can solve this problem. Negotiations with the Government can solve these problems

Product Development

• Younger generation and female are now coming to this segment so expand the motor cycle segments to younger generation and females.

• In Europe they can increase or expand the Buell’s market share by introducing new motorcycles.

Expanding Global footprints

European Market Share

• Honda 21.00%• Yamaha 17.70%• BMW 15.10%• Suzuki 14.80%• Kawasaki 8.50%• Harley-Davidson 6.60%• Ducati 5.70%• Triumph 3.50%• Other 7.00%

Asia/Pacific Market Share

• Harley-Davidson 21.30%• Honda 19.10%• Kawasaki 15.80%• Yamaha 13.60%• Suzuki 10.10%• BMW 7.30%• Ducati 6.90%

. Other 5.90

Conclusion

• Harley- Davidson have to change American culture and helped the future of motorized vehicles.• Must implement latest technology & facilities.• Loyal customers are not sufficient for company to survive.• “it’’s a journey but not a destination”

Possible strategies

Expand into Foreign Markets• Asia• Europe

Product Development• Expand Motorcycle line for younger market• Buell expansion

Made new alliances with some local bike

companies to produce low cost• India

Increasıng dıversity programing• Tour• museum

Increasing advertising

Thank You