Professional Documents
Culture Documents
Executive Summary
Table of Contents
Executive Summary...................................................................................................................1
Part A..........................................................................................................................................2
Target Market.............................................................................................................................2
Competitive Analysis.................................................................................................................3
SWOT Analysis..........................................................................................................................5
Part B..........................................................................................................................................8
Q1- Innovation of relationship marketing practices...................................................................8
Q2- Mass marketing to one-to-one marketing.........................................................................12
Q3- Customer Relationship Management recommendations..................................................14
References................................................................................................................................15
Part A
Target Market
Demographic
The core customer base of Harley-Davidson products in the U.S. are Caucasian men over 35
years of age. In 2014 H-D were the number one seller in that demographic, which consists of
mainly older men (Investor.harley-davidson.com, 2015). However in the recent past the
company has been marketing to a wider audience focussing on women and young adults
(aged 18 to 34). This includes redesigning bikes to appeal to non-caucasians, hosting womenonly Garage parties and holding rallies to encourage new riders (Kelleher, 2013).
The women-only Garage parties have become social events that allow women to learn about
basic motorcycle controls, riding etiquette and provides guides on how to customize a bike
while meeting other women who share these interests (Harley-davidson.com, n.d.).
Income status of the customers also matter has the unique, customized bikes are considered to
be a luxury cruiser and is targeted at the upper or upper middle income classes.
Geographic
64% of net sales H-D bikes in 2013 was reported in the United States. The company has
regional locations catering to South America, Europe, Middle East and Asia-Pacific regions
but the outreach is limited by high export costs which drives the already steep price up. The
mass appeal of heavyweight cruisers is also not prevalent outside the U.S. To counter that HD has released lightweight street bikes Street 750 that cost lower that has peaked in interest
I India
Psychographic
H-D has always promoted a Harley Davidson lifestyle which involves groups of bikers
cruising down open roads. The sense of community and shared values among Harley riders
who usually sport H-D branded merchandise as casual attire have lead them to a formidable
official riding club known as the Harley-Davidson Owners Group or the HOG.
Membership offers exclusive event privileges, access to the HOG magazine and even road
side assistance (Members.hog.com, 2015).
Behavioural
3
Competitive Analysis
Criteria
Harley-Davidson
BMW
Global reception
Ducati
popular
with
almost
9000
markets in Europe,
Switchback
R1200GS
Monster 1200 S
Price range
USD 17,000
USD 20,000
USD 15,000
Features
Smart
of
4
system, 2014.
Evolution
engine
proprietary
Utilizes
liquid
traction
fuel
and
flexible ergonomics
Mileage
:82
Mileage : 34 miles
per gallon
miles
per gallon
Customization
options
and
touring
available
in for accessories.
and
packages
available.
customization
gallery. Consultation
provided.
(Source : www.ducati.com, www.bmwmotocycles.com, Harley-davidson.com, 2015)
SWOT Analysis
Strengths
Weaknesses
1.Brand recognition
Harley Davidson is a well known motorbike While popular in the U.S. Harley Davidson
brand that has served customers for over 100 bikes do not have a wide appeal worldwide.
5
The
promotional
strategies
branding has ensured that H-D is instantly bikes. Currently with only 3 manufacturing
recognized. The designs are iconic and are and assembly plants, it is difficult to fulfill
constantly ranked among the worlds most the global demand for a lower price.
valuable brands.
2. Loyal customers
H-D customers are as unique as their bikes. come from domestic sales there is a
Their ardent following has achieved a cult limitation in terms of growth as H-D bikes
status. More than two-thirds of the customers attract a specific customer base. While not as
are domestic (U.S.A) and have a strong sense wide as in the U.S. there is still an appeal for
of community among them.
3. Product and service portfolio
H-D products all have a signature style that is
instantly recognizable. They design and While the bikes are unique and desirable the
manufacture heavy weight touring and expensive price tag definitely turns away
performance motorcycles and provides spare potential customer who would opt for less
parts and branded merchandise. H-D also expensive brands.
operates a financial services division to
provide financial assistance to customers who
4. Lawbreaker perception
would like to purchase a product and to aid The stereotypical biker image associated with
gangs and criminal entities put off some
motorcycle dealers.
4. HOG rallies
Regular gatherings of Harley Davidson around bikers may reduce the pull of the
Owners Group members to ride or attend products.
events build the sense of community and
declares their presence. These events could
be for pleasure or to raise awareness for a
cause.
5. Business Development program
H-D endorses inclusion of women-owned
6
Threats
1. Substitutes
H-D already has an emerging presence in Many of H-Ds competitors offer a wide
India and in Brazil. They are already leading range of motorcycles at a much lower prices.
the motorcycle market in the 800cc+ and the Triumph racing bikes, Polaris electronic
new lightweight street motorcycle is gaining bikes have recently peaked in popularity.
popularity among the younger customers Electronic bikes may not loo as unique as H(Team, 2014). With the growing popularity in D bikes do but they are lighter and greener
European markets, there is a n opportunity and appeal to the younger generations. While
increase sales if some marketing strategies unique in appearance, sound and experience,
are applied.
2. Expand target market
Even with an extensive outreach marketing
program to attract a wider audience for H-D
products, the core customer base still remains Harley Davidson relies on mostly American
in the Men older than 35 years of age manufacturers for most of the raw materials
demographic. Appealing to younger riders and components necessary to build the bikes.
could potentially increase sales.
3. Low priced bikes
With the popularity of the Street 750 model, expensive and maybe limited to one supplier
it is clear that there is a demand for lower which could potentially lead to delays in
priced H-D bike especially among young production.
adults. Manufacturing an entire line of
3. Aging target market
models will attract more of this demographic
to purchase bikes.
Part B
10
14
References
Ar.harley-davidson.com, (n.d.). Harley Davidson Annual Review 2014. [online] Available at:
http://ar.harley-davidson.com/broadening-horizons.php [Accessed 4 Jun. 2015].
Bmwmotorcycles.com,
(2015).
BMW
Motorrad
USA.
[online]
Available
at:
http://www.bmwmotorcycles.com/us/en/index.html?
content=http://www.bmwmotorcycles.com/us/en/fascination/ride-of-your-life/the-newr1200gs.html¬rack=1 [Accessed 16 Jun. 2015].
Crowe, P. (2006). Harley Davidson and Changing Demographics. [online] The Kneeslider.
Available
at:
http://thekneeslider.com/harley-davidson-and-changing-demographics/
Available
at:
http://www.harley-davidson.com/en_us/content/pages/women-
Riders
RideApart.
[online]
RideApart.
Available
at:
Available
at:
http://adage.com/article/cmo-strategy/cmo-harley-davidson-
at:
http://www.inc.com/laura-montini/a-lesson-from-harley-davidson-on-
Forbes.
Available
at:
17