Harley Davidson in

India
Presented to : Dr Diwakar Kamath
By
Govind Krishnan K A
Mayank Kumar
Sahib Lamba
Ashar A Latheef
Hari Manwani
Aashna Manaktala
Kshitij Mundhada
Omkar Maraballi
Prateek Nanda
 Introduction

Harley-Davidson often abbreviated H-D or Harley is an American motorcycle manufacturer.

Founded in Milwaukee,Wisconsin, during the first decade of the 20thcentury.

The company sells heavyweight(over 750 cc) cruiser motorcycles in the luxury motorcycle
segment.

It is a symbol of rugged individualism, freedom and rebellion.

Entered the Indian market in 2009.

it was not simple for creating a segment in India(especially in this sovereign, socialist,
secular, democratic republic called India).

Be it Cola or Cornflakes, cars or mutual funds India has not been an easy market for global
majors to crack but Harley has defined that trend.
 Vision:

Harley-Davidson, Inc. is an action-oriented, international company, a leader in its commitment to continuously

improve our mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders,
government, and society). Harley-Davidson believes the key to success is to balance stakeholders interests
through the empowerment of all employees to focus on value-added activities.

Components :

1. Action-oriented business

2. International scope

3. Leadership in stakeholder management

4. Employee empowerment

5. Value-added activities

Mission:

We fulfill dreams through the experiences of motorcycling, by providing to motorcyclists and to the general
public an expanding line of motorcycles and branded products and services in selected market segments.

Components :

1. Fulfilling dreams through motorcycling

2. An expanding line of products and services

3. Selected market segments

 Harley Davidson in India

We are not a motorcycle company. We are a culture on two wheels. And we want to convert dreams of owning a
Harley into a reality for Indian motorcyclists.

When the Govt of USA & India decided to trade H-D for Alphonso mangoes in 2009 they were probably
presenting a huge challenge to the cult-driven company.

India was the largest motor-cycle market in the world with 10.5 Mn bikes sold in 2010but barring the few
imported superbikes the premium bike segment was practically non- existent in India

Harley started with a big-bang by launching 10 Models to begin with rather than being stingy or bringing just 1 or
2 models.

It invested in a completely knocked down facility(CKD) in 2011 that began with the assembly of its sportster line
followed by the Dyna line in 2012 & Softail in 2013

The more important programme by H-D was its dedicated dealership programme which started off with having
the right people at right place
 Harley Davidson in India
Harley Owners Group (HOG)- initially, these rides in India were coordinated by the
company, but now, these events are coordinated by dealers themselves

Rock Riders mates music with Harley-Davidson motorcycles(thoroughbred bikers taste in

music in Rock).

The Indian customer belongs to a state of mind rather than a particular demographic profile.

India-specific model that displaces a lower capacity than the 883

Targeting younger riders with offerings like the Forty-Eight, Iron 883, and Cross Bones.
These bikes have the retro styling popular with younger riders today

The customization programme will help the customers make their bike unique (Whatever is
available to Harley owners abroad in terms of accessories and customized parts is also
available to the Indian buyer)
 Harley Davidson in India

Boot Camps, Harley-Davidson(invites riders to come and taste life aboard its thick two-
wheeled slice of Americana)

Breakthrough initiatives - Boot Camps, Founders Ride, Harley Rock Riders and
Freedom Film Festival

Alliances with banks for financing (Down payment + EMIs)

Reason For the Double Price in India :

(i)Imports its bikes into India as Completely Built Units (CBUs), paying 60 % import duties
for the bikes and 30 % local taxes which double the MRP

(ii) So for eg. Ultra Classic Electra Glide(CVO) which costs USD 35,999 (INR 16,02,000) in
US, costs INR 34,95,000 in India
Core Competencies

Custom
Brand
er Image
Loyalty

Dealer Financial
Developme Assistan
nt Program
ce
PESTEL Analysis
Political
Influenced U.S. president Reagan in
1983 to increase tariff on imported
motorcycles to 45%
The Indian Government imposed an
import duty of 60% on CBD units and
30% on CKD units
Harley Davidson was allowed in India
in exchange of export of mangoes to
U.S.
Trump indirectly asks India to reduce
import duty on motorcycles imported
from U.S Social
PESTLE
Associated with countercultural
elements like the protagonist of movie
Easy Rider
Indian made components for bikes
increased the demographics likelihood
to buy
The Japanese and German auto
manufacturers didnt let Indians to run
their companies. it hired Indians from
other companies to make an impact in
India
The initial buyers in India associated
Environmental
themselves with the core values of
camaraderie and freedom H.O.G.
organizes
Harley Davidson
events.was fined $15
million for selling tuners which
increased air pollution from bikes
and violated EPA norms
Harley Davidson should focus on
making electric bikes
Economic
Due to 2008 economic crisis, U.S. sales
by volume went down by 35% in 2 years
Planned to enter India because of
steadily growing GDP and middle class
In order to cut the prices and also target
upper middle class, it currently
manufactures in Haryana. The lowest
priced model is Street 750 which is
available at 5 lakhs rupees
The implementation of GST has
increased the tax rate from 30 % to 31%
Technological
on bikes above 350 cc
Implemented just in time and statistical
process to increase production of defect
free bikes.
Introduced V rod design featuring
overhead cams and liquid cooling
Anoop figured that in India, dealers did
not have technical knowledge for fixing
the bikes.
Currently, it has implemented IoT in its
NY plant, plants in India should also be
Legal
upgraded to support industry 4.0
Focused on lighter bike because in some
countries licensing rules required young adults
to get familiar with lighter bikes first.
Lack of emission standards in India for 500cc
and above bikes delayed launch
100% Foreign Direct investment (FDI) is
allowed under the automatic route in the auto
sector .Manufacturing and imports are
 SWOT Analysis
Internal
Strengths
Brand Appeal
Passive distribution approach
Production methodologies
Product selection
High customer pull
Opportunities
Emerging markets
Large motorcycle markets
Market reforms in India
Indian markets flooded with
lightweight bikes
Untouched segments
External
Weaknesses
No direct control over
revenue growth
Vary of entering into small
markets
High selling price in emerging
markets
Threats
Volatile markets
Japanese manufacturers
High duties and taxes
Emission standards in India
Negative returns in initial
years
 Ansoffs growth strategy matrix

Market penetration Product development

Existing

Market: US, Canada and Europe
Product: Five basic model families
between the price range $8000 to
$37000
M Limited edition bikes
A
National rallies and visiting dealerships
General merchandising- T-shirts
New Product: Bikes for youth and
women/girls
Harley owners were pre-dominantly male
Sportster was considered as a girls bike
and as a compromise for a cheaper Harley
Price range below $8000 to make it
affordable for the youth

R Customizing and modification options

K
E Market development Diversification
Market: India Product: Smaller and lighter bike
New

T Untapped Indian market for bikes in the Market: India

500cc-1,000cc range
Average age of 25 and median income:
$40,000
Distributing and selling CBU motorcycles
Assembling and selling CKD motorcycles
Market research resulted in a water-cooled
concept bike with aggressive styling
Locally manufactured bike for $6000
Addition to other emerging and developed
markets

Existing New
PRODUCTS
 Strategic Groups
Experience Focused
Harley enjoys exceptional
brand recognition
Apart from technological
expertise, the main advantage
is driving a Harley- the loud,
rumbling noise and showing
off the wings on the brand
Harley and Ducati fall under
this group
Performance Focused
Harley struggles in countries
like India & China as most
people here use bikes to
commute for work and loud
heavyweight bikes are not
ideal for daily commuters
Honda and Yamaha lead
technological innovation and
hence fall in performance
focused categories
These companies perform
better in India as they better
cater to the demographics
demand
 VRIO ANALYSIS

Valuable Rare Imitability Organization

HD valuable Though the bikes Market position is The un-substitutable
because of lifestyle are not rare, difficult to imitate capabilities are
factor however the knowledge and the
Neutralizes other reputation and encouragement
competitors as personal value is provided to suppliers,
these factors cannot rare employees and
be duplicated customers
 Porters 5 Forces

4 major Requires Choice in Suppliers of Passenger

competitors high capital switching manufacturi cars, sports
but none in investment between the ng units- bikes,
500-1000cc products low scooter
segment 60% import offered in bikes
duty and the industry Repair parts
Competitors 30% tax High as Luxury
have larger rate Expensive supply was vehicle, so
resources product and low there are
and are Low less buyers few close
more economies substitutes
diversified of scale
Enfield close
 IE MATRIX

Internal-External (IE) matrix used to

analyze the working conditions and
strategic positioning of a business.

Based on analysis of internal and external

business factors which are combined into
one suggestive model.

Composed of EFE and IFE matrices.

Suggests the company to adopt one of the

following strategies:
Grow and Build Strategy
Hold and Maintain Strategy
Harvest or Exit Strategy
 IFE MATRIX
InternalFactorEvaluationMatrix(IFE)

Strengths Weight Rating WeightedScore

1.
Clearbrandpositioningbetweenpremiumbrandandinclusivity 0.15 4 0.60
2.
LocalexecutiveteamconsistingofhiresfromJapanesevehiclebrands 0.08 3 0.24
3.
Highbrandloyalty 0.12 4 0.48
4.
Completebrandexperienceastheprimarydifferentiatingfactor 0.12 3 0.36

Weaknesses Weight Rating WeightedScore

1.
Qualityissuesforapremiumlypricedmotorcycle 0.12 1 0.12
2.
Lackoftrainedaftersalesservicesupportintheinitialdaysoflaunch 0.08 2 0.16
3.
Heavy,aircooledbikesnotsuitableforIndianconditions 0.12 1 0.12
4.
HighsellingpriceinemergingmarketslikeIndia 0.12 1 0.12
5.
FailureinsuccessfullaunchofHDBrandthroughHBTshirts 0.09 2 0.18

TOTAL 1.00 2.38

 EFE MATRIX
ExternalFactorEvaluationMatrix(EFE)

Opportunities Weight Rating WeightedScore

1. Nocompetitioninthe500ccto1000ccrangeofmotorcyclemarket 0.17 3 0.51
2. HDbikeclubssprungupinvariouscitiesarossthecountry 0.08 3 0.24
3. TheonlycompetitorinleisureridingspaceinIndiaRoyalEnfield. 0.15 3 0.45
4. MarketResearchindicatingdemandforsmaller,lightermotorcyclewhichcanbeimported 0.10 4 0.40
tootheremergingmarkets

Threats Weight Rating WeightedScore

1. Cheaper&highqualityJapanesemotorcycles 0.12 2 0.24
2. HighimporttariffsinIndia,forCBUaswellasCKD 0.10 3 0.30
3.
Lowtrafficspeeds&highambienttemperaturewhichnecessitateswatercooling 0.08 1 0.08

4.
Lowqualityroadswhichrequirehighergroundclearanceforthemotorcycles 0.08 1 0.08

5. EmmissionStandardsinIndia(notspecifiedforabove500cc) 0.06 3 0.18

6.
Nike/BenettonascompetitorsfortheGMdivisionofHD 0.06 2 0.12

TOTAL 1.00 2.60

 IE MATRIX

IE Matrix suggests a Hold and Maintain strategy, according to

which, Harley Davidson should focus on Market Penetration &
Product Development.
 RECOMMENDATIONS

Make the reporting structure more decentralized

Break the product driven silos and focus more on a

suite of products and services
Look for local sources of parts for the new bike model

Revamp the strategy for GM segment for better

revenue generation
Create a more global image rather than an American
image with the new and future customers
THANK YOU!!