CISBM ASSIGNMENT

M. Vamshi Krishna
NO:11135

1903 William S. Harley & William, Arthur, Walter Davidson
1909 First V-twin powered bikes, it became most enduring
icons of Harley Davidson history.
1917 1/3 rd of the bikes were sold to the U.S military, at last
20,000 HD bikes were used in World War I (1918).
1922 HD dealerships spread across 74 countries.
1933 An Art deco Eagle is printed on tanks this starts the
graphic design on HD.

History of Harley Davidson
1953 Attractive logo was created for 50
th
anniversary with
caption 50 years-American made.
1983-1986 Entered into American & New York stock
exchanges.
1997 Two big plants constructed in Milwaukee & Kansas
cities.
2002 Open Road Tour debuted in Atlanta to celebrate
upcoming 100
th
Anniversary.

2002 demand for heavy weight motor cycle in U.S grew up by
17% compared to IGR of 10%.
2003 more than 950,000 bikes were sold in U.S & 28 million
world wide expect to grow 5% every year.
HD recorded its 19
th
consecutive year of record earnings in
2004.
Harley is the only major American Manufacturer of heavy
weight motor cycles.
Have more than 15,000 employees.



Harley Davidson Softail Family
eg:narrow seats, tombstone tail lights, full length floor
boards
Harley Davidson Sportster Family
eg: low-rise handlebars, bullet style headlight.
Harley Davidson Touring (Dressers) Family
large windshield & have a full front fairing. leather
saddlebags, optional sidecar, & option to customize.
Engines
Big V-twins, Small V-twins, and the Revolution engine






Main features
2009 - HDs share of the U.S. heavyweight (651+cc) market
was 53% &12% in Europe. (app.)
Capital Expenditures were $116.7 million in 2009 & $1.0
billion in the last 5 years.
$100 invested in Harley-Davidson at the end of 1986 would be
worth approximately $9,000 at the end of 2009
The Company incurred R&D expenses of $143.1 million,
$163.5 million and $185.5 million during 2009, 2008 & 2007
respectively.
Main figures
Values are the heart of HD
business,they guide our
action and serve as the
framework for the
decisions and contribution
of our employees make at
every level of the
company.
Tell the truth
Be fair
Keep your promises
Respect the individual
Encourage Intellectual
curiosity

VALUES OF HD
Motor Cycles

Bike accessories

Buell motor cycles: wholly owned subsidiary of
Harley by 2003 (closed now)

Product extensions
Merchandise
Helmet
Clothes (Jackets)
Mugs
Collectibles.

Beer

Bars
Brand extensions
HD operates in two segments- HD Motor Cycles&
related products and HD Financial services(hdfs).
HD is the only American heavyweight motorcycle
manufacturer.
Strong brand name & relationship with customers
HD having good marketing division and its divided
as a dealer promotion, customer events, magazine
and direct mail advertising and public relations.
Customization of the bike is HDs major revenue
maker.

SWOT - ANALYSI S
Strengths
High price
Top board of directors were all men
Lack of employee diversity
HD has problem in gaining more market share in
some European countries.
Required production is not met.

WEAKNESS
Women & younger riders are showing more interest
in bikes
The international heavy weight market is growing
and is now larger than the U. S. heavyweight
market
Market share increasing in Europe and Asia for the
last two years
Increasing demand in US markets for bikes
Customers value quality parts

OPPORTUNI TI ES
Harleys average buying age is 42 years old
& it still increasing.
The European Unions motorcycles noise
standards are more stringent than those of
Environmental Protection Agencies in the
U.S and increased environmental stand.
Some competitors of Harley Davidson have
larger financial and marketing resources and
they are more diversified.
Environmental protection laws.
Shifts in buyers needs & taste.

THREATS
Ford and Harley Davidson:
Trucks (ingrdient co-branding)


Ford and Harley-Davidson
delivers a new standard of
"custom cool," combining the
smooth handling and legendary
durability of America's best-
selling truck with the authentic
styling of Harley-Davidson.

Existing Brand
Alliances
Bell & Ross and Harley
Davidson (ingredient co-
branding)

Luxury watch maker Bell
& Ross have teamed up
with british bike
customizers Shaw Harley
Davidson (the most
distributing) to create this
custom chopper: the Bell
& Ross inspired Nascafe
Racer.
Existing
Brand
Alliances
Gibson and Harley Davidson (joint
communication)

Harley-Davidson and Gibson Guitar
hosted Night of Custom, celebrating the
art of customization.

Bringing together music and motorcycles,
the event saw exclusive music performances
including a phenomenal set from British
rock band
Feeder who headlined in front of an intimate
audience of 100 people


Existing
Brand
Alliances
The Harley Davidson Cake Decorating Kit

It didnt do well with its cake-decorating. Customers dont like
this type of product. They didnt subscribe to this idea.
Brand
Extensions
Failures

Perfume/ Shampoo /
Shower gel

For lovers of the
motorcycle, this was an
extension too far.

Harley Davidson had
fallen into the trap of
thinking that more
products equals more
sales. And it usually does,
at least in the short term.

Brand
Extensions
Failures
Wine coolers

As you would expect, the
bikers were not impressed.
It was a bad idea,
customers prefer beer
Harley Davidson.
Brand
Extensions
Failures
The brand need to focus on the quality and not on
cheap products: out of DNA.

Customers want coherence.
So the DNA is very important: its the heart.

The company need to do entension brand but to
concentrate on the quality, like alliances brand in the
european market successful association


Making real dreams caused by
worldwide roads by offering harleys
customers exceptionnal sensations. They
nurture their passion for freedom so
that they can express their mind.

HD-Vision


Providing bikes and all the world
around through a faithful
community

Harley-Davidson Mission

Organizing a complete offer including not only a
bike but also some clothes, accesories, routes and
integration to a community

HD Action
Brand structure
Periphery
CULTURE
Band
Look
Famous
Brand
Travel
Legend
Bike
Core
USA
LANDSCAPE
MASCULINE

Harley-Davidson Cafe theme restaurant
located on the Las Vegas Strip
According to a recent Harley-Davidson study,
in 1987 half of all Harley riders were under age
35.[117] Now, only 15% of Harley buyers are
under 35,[117] and as of 2005, the median age
had risen to 46.7.[118][119][120][121]

The income of the average Harley-Davidson
rider has risen, as well. In 1987, the median
household income of a Harley-Davidson rider
was $38,000. By 1997, the median household
income for those riders had more than
doubled, to $83,000.[117][clarification needed]

Harley-Davidson attracts a loyal brand
community,[122] with licensing of the Harley-
Davidson logo accounting for almost 5% of the
company's net revenue ($41 million in
2004).[123] Harley-Davidson supplies many
American police forces with their motorcycle
fleets.[124]

Harley-Davidson motorcycles has long been
associated with the sub-cultures of the biker,
motorcycle clubs, and Outlaw motorcycle
clubs, or one percenters
Brand culture
Beginning in 1920, a team of farm boys, including Ray
Weishaar, who became known as the "hog boys,"
consistently won races. The group had a live hog as
their mascot. Following a win, they would put the hog
on their Harley and take a victory lap.[17] In 1983, the
Motor Company formed a club for owners of its product
taking advantage of the long-standing nickname by
turning "hog" into the acronym HOG., for Harley
Owners Group. Harley-Davidson attempted to
trademark "hog", but lost a case against an
independent Harley-Davidson specialist, The Hog Farm
of West Seneca, NY,[125] in 1999 when the appellate
panel ruled that "hog" had become a generic term for
large motorcycles and was therefore unprotectable as a
trademark.[126]

On August 15, 2006, Harley-Davidson Inc. had its NYSE
ticker symbol changed from HDI to HOG.[127]

WHQG, a mainstream rock radio station which serves
the Milwaukee metropolitan area, uses the moniker in
their official callsign (102.9 The Hog) as a tribute to
their home town motorcycle manufacturer, as well as
its fans and riders.
Origin of "Hog"
nickname
After nearly three years of restructuring its business,
Harley-Davidson has emerged with confidence and
focus.
The strategy seems to be paying off with signs of solid
performance and consistent growth. Even through
challenging economic times, there remains a strong
sense of community among Harley-Davidson fans.
Knowing that it cannot solely rely on baby boomers,
the company has been working hard to appeal to
women, minorities, Gen Y, and Millennials.
The challenge for the brand will be in balancing
traditional audiences with the new audience
segments. These newcomers to Harley Davidson,
however, are embracing the brand with passion and
enthusiasm. Of its 3.6 million Facebook fans, 40% are
aged 1834. The organization has also shed non-
Harley-Davidson brands and put its efforts into a
unified brand experience. This focus has helped to
build momentum in share gains, retail sales, and profit
in outreach markets. Despite strong competition from
Japanese manufacturers, Harley-Davidson opened 35
dealerships in international markets, including
Mexico, India, Turkey, Russia, China, and Brazil. With a
solid strategy in place, Harley-Davidson appears
poised to conquer the open road.
CONCLUSION