Harley-Davidson was formally established by William S. Harley and Arthur Davidson in 1907.

Headquarters in Milwaukee, Wisconsin, U.S.A.

Global intentions of Harley-Davidson manifested in 1912 when it started exporting to Japan.

Prominent customers include : U.S military

Global Objective : Selling at least 40% of its bikes

outside U.S.

Total sales (in 2012) :2,49,849 bikes.

Revenue : US $ 5.31 billion (2012)

More than a million members in

Harley Owners’ Group (H.O.G) across

the world.

International dealer network comprising more

than 100 dealers.

HARLEY-

DAVIDSON

BRANDS

FAT BOY

STREET-

GLIDE

ELECTRA

GLIDE

ROAD

KING

IRON

883

Political

•More politically stable and business friendly geographies

•Markets having flexible bureaucratic structure

•Countries having huge defense market can offer an additional sector to Harley which already carries a

legacy of supplying motor bikes to the world’s strongest military

Economical

•Open economy, lesser trade barriers like tariffs and quotas on imported items

•Emerging market economies with a pinch of LPG

•Markets having developed infrastructure

Social

•Society with a high demographic dividend

•High disposable income and an increasing propensity to spend for fulfilling the desires

•Passion for biking and liking for MADE IN U.S

•Harley has a very high brand resonance with “freedom” ,”Liberty” and “Fraternity”. Thus, a

society having an inclination towards these concepts will be an ideal market for Harley.

Technology

•Harley follows a “Brick and Click” model world wide so a market which offers high internet

penetration will be highly preferable

•Availability of 97 OCTANE fuel in the market as it is primary fuel for Harley Davidson motor

bikes

Environment

•Markets having liberal emission norms for bikes having more than 500 cc engine.

•Markets excepting EURO -3 emission standards.

Legal

•Markets having proper licensing and regulatory bodies.

How does

Harley’s

business

compare to it’s

competitors ?

How many

customers are in

the market ?

Do these

customers are

having money

to spend?

How many

competitors are

competing for this

business?

Do these

customers have

the need that

Harley Davidson

solves?

Yes No

Category Annual Income (INR) Number of House Holds

Super Rich 10 million + 120,000 – 150,000

Sheer Rich 5-10 million 200,000

Clear Rich 1-5 million 2,80,000

Source: From Case

Luxury Assets

Luxury

Services

Luxury Retail

•Cars & Two Wheelers

•Luxury Homes

•Yachts

•Spas

•Luxury Hotels

•Artwork

•Apparels

•Watches

•Electronics

62%

21%

17%

• Segment which purchase for their superior

Functionality and Quality.

• Take Longer Decision Making Process.

Luxury As

Functional

• Segment which purchase in order to showcase

their achievements.

• Motivated by their desire to be successful.

Luxury As

Reward

• Segment which purchase to self-indulge.

• Willing to pay premium for good and express

their individuality.

Luxury As

Indulgence

Harley

Davidson

High Spare Parts

and

Logistic Cost

Competition in

Super Bike

Segment.

53% of Indian

Luxury Buyers in

age bracket of

25 to 34 years.

Lack of Trained

Mechanics

Stringent emission

normsHigh import duties

No Direct

Marketing channelCompetitive forces

Challenges

Zero level channel

•Dealership model

•Strong dealership model for market penetration

Stringent Emission norms

•Euro III

Import duties

•Tariff Rate Quotas, second fully owned subsidiary outside US

•Completely Knocked Down strategy

Competitive forces

•Localization, pride in V-twin engine

•Completely knocked down operation

Diversity

•Avenue for varied models

•Brand building

Post selling issues

•Transportation, Dearth of trained mechanics

•Service centre, Spare parts

Post selling transportation

•Collaborating with existing distribution channels

Dearth of trained mechanics

•Proper trained mechanics by Harley specialists – can support WOM

Expensive spare parts

•Need to outsource, but dangers of brand dilution

58%

42%

Want to own a super bike

YES

NO

57%

43%

Do you know about Harley

Davidson India

YES

NO

0 20 40 60 80 100

Tier I

Tier II

Tier III

NO

YES

" I am a bike fan but not actually a Harley Davidson follower ...when I was purchasing my new bike ..like few months ago I visited both the showrooms in Bandra West ...there the Royal En-field and HD showrooms were opposite to each other ..I went inside both of them ..but some how I felt the sales people had a mental block with people of middle -class not that forthcoming I would say... ..also I took a free bike ride in the En-field, though I knew there were free bike rides in HD also but there it was no where advertised or shown outside the showroom ..unlike in the Royal En-field ...I would say there is still an awareness problem" ......excerpts from interview ..Mr. C.P. Bijukrishnan Senior Manager Tata Power Age 42

“I know they have showrooms in the main tier 1 cities right? They sell merchandise already there don't they? Which is always good but never good enough. You want to sell hardware not key chains i know they have a sub 10lakh model…..not sure if it's a CKD or not…but if they can keep lowering the price point till maybe they have something at say a 2-3 lakh price point that's still quintessentially Harley without sacrificing quality big ask…Also .. they didn't come to India to sell perfumes and hats now did they? They’re primarily here to sell bikes…Your sole point is about price ?“not exactly it also has to do with the type of bike Sportster at a push but rest is all cruisers and choppers of various shapes and sizes Especially fat boy not a superbike. You'll die trying to go at high speeds on that on anything but adead straight road They're meant for grand touring….”# Arka Dyuti Sarkar; Age:- 22; Student :- Imperial College London ; Ardent Follower of cars and bikes

“ Yes of course I know about Harley Davidson India …that day in Andheri I saw a big guy ..with tattoo all over his body riding the V rod …they are conducting a road trip in Nashik on 13th April ..the H.O.Gs ..u know ?? yeaah ..i seriously believe that if I had to purchase a Harley it would do it outside India ..where are the roads in India , the condition is very bad !!! ..there they conduct the grand touring from Mumbai- Pune expressway where even three wheelers are not allowed ..there they pay fine and ride their Harleys ….regarding advertisement I have not seen any except that before they conduct their grand tourings they advertise on paper” ...# Mr. Dayanand Srinivasan Age:- 26 yrs ; Quality and Testing Engineer Aditya Birla Group; A regular viewer of the Harley Bike Rally Mumbai