harley davidson case study essay
Harley Davidson Motor unit Company opened by William Harley and Arthur, Walt and William Davidson. It’s the producer and manufacturer of iconic and unique bikes, which are desired by lots of people around the globe. Is it doesn’t most recognized business in motorbike industry, creator of lifestyle, lifestyle and tradition. It really is one of few businesses which may have gained the admiration and respect of shoppers and rivals. History of Harley davidson Davidson Electric motor Company started in 1901, when ever William and Arthur started out building the engine that might suit into bicycle.
More than a century ago they introduced their initial motorcycle, from that time firm has been continuously growing now it is regarded as one of the most respect motorcycle firm in the world.
In the very beginning the essence the company was very clear, to be the leader in motorcycle sector and to produce the best quality motorcycles. Opinions if company were able to reach this kind of aim are contradictory, although undoubtedly Harley davidson Davidson has become a legend.
Harley Davidson is connected with freedom, excursion, wildness, self-expression and boldness. It’s rule says “It is not a destination, this can be a journey. Harley Davidson provides even it can own street songs, produced in 1994, it turned out to be a superb marketing strategy. Following your album has become released, organization gained more customers. One of the popular tracks is “Born to be wild. This tune has become a “soundtrack of Harley Davidson Company. It identifies the company’s traditions and has changed into a legendary song. Harley Davidson has remained faithful to tradition and lifestyle, it still represents precisely the same values since it did in early 90’s.
Number one power of Harley Davidson is definitely loyal manufacturer community. Harley Davidson has long been putting customers satisfaction like a priority. Customers remain devoted to the company not only because of high quality products and unique style of motorcycles, yet also as a result of image and values that Harley Davidson represents. The strength and power. Harley Davidson established the H. U. G (Harley Owners Group) organization. This kind of organization has become a home for 750, 000 members, who reveal passion and admiration for the manufacturer. H. O. G may be the example of what sort of brand is able to create a subculture. Harley Davidson promoted a wild, cost-free lifestyle. People were and still are attracted to all those ideas. Simply by joining the H. O. G they felt the feeling of owned by Harley’s bold culture.
Especially in 90’s Harley’s ideas had been extraordinary, persons wanted to be the part of that unique community. Manufacturer recognition, company preference, manufacturer insistence ” Harley features successfully attained all these criteria. It is around the world recognized firm, people tend to buy it’s motorcycles rather than other industry’s and continue to be loyal to it. Harley davidson Davidson broadened brand by simply producing equipment, like helmets, leather jackets, devices, which get a must for most of people who acquire a Harley davidson motorbike. Harley Davidson are likely to build good long-term associations with it’s stakeholders, what relates in positive impact on the company. Becoming the only main American producer of top quality motorcycles is extremely beneficial for the organization, as well as getting the one of main producer and consumer of V-engine configuration.
Strategy of competing of Harley Davidson focuses on design and quality of products, rather than on cost. Therefore , goods are expensive, which can be considered as a weakness. High price limits target audience, as certainly not everyone can spend the money for product. Harley Davidson because an American firm focuses it can market on the US. 67% of their revenue come from the United states of america. Depending on household market usually leads company to failure. In case the United States confronts economic crisis, income of the firm will extremely fall. Although Harley’s bikes are high quality, competitors including Kawasaki, Phazer, Suzuki seems to produce a lot better quality bikes. They are straight focused on top quality and rate of their motorbikes. Harley Davidson should consider implementing new technologies and improvements to their motor bikes.
The Asian and European market share have been increasing in recent season. The demands of Harley davidson Davidson in Europe happen to be increasing, which usually becomes a top one globally. Since plenty of women and more youthful riders had been interesting in motorcycle, the range of customers provides raised. (Richard, 2004, p9-10)
The European law of bike’s noise level is higher than the ones from U. T law, which in turn urge the U. S i9000 motorcycle how noisy is it to go up. At the moment, a lot of opponents are equipped with higher financial support and various marketing resource. It means there is higher competition from Harley-Davidson motor bike on community market. (Richard, 2004, p9-10)
Analysis of 8Ps which includes product, value, place, advertising, people, physical evidence, procedure and collaboration
Following Harley-Davidson was taken over by simply AMF, AMF only dedicated to production instead of product’s quality so that Harley-Davidson’s credibility continues to be seriously ruined and sales dropped down. Beers joint 13 senior executives Harley-Davidson redeemed from AMF, the business always put quality since the first consideration. Installed one hundred million dollars to boost equipment and production techniques in order to boost the quality of goods. Harley-Davidson is similar with Rolls-Royce and Ferrari in terms of the manual production and limited production. Every single motor should be ordered in advanced. In order to reflect the personality with the Harley-Davidson motorcyclists, each motorbike is custom-made according to every Harley-Davidson lovers and a lot of accessories are available for changes. Thus, it is difficult to find two Harley Davidson motorcycles as well.
Harley-Davidson’s customer orientation concentrates on clients who have are at the age of more than more than 30 years old and has high education and upper middle-income (HARI PRAKASH. N. V, 2004). Consequently , Harley-Davidson motor bike price is more pricey than the price of cars. It is reported that the basic popular Harley-Davidson motorcycle can be $15000-20000 and Harley STREET KING typical motorcycle style (in the 50s to 60s) may be worth $ 25, 000 plus the old motor bikes model (in the 30s to 40s) can still always be sold for much more than $ 31, 000 (Harley-Davidson Australia/New Zealand, 2012).
Since Harley-Davidson opened global market, they have not influenced the sale of Harley-Davidson in the US. So far, in the usa Harley-Davidson bike is still accounted for 70% of the market share. Harley-Davidson has conducted business in over 70 countries and continually boosts business durability with the knowledge of the specialist marketing. So far, it has more than 1, three hundred authorized retailers throughout the world. In Asia, Harley-Davidson Company provides about 35 authorized car dealership and its advertising network features covered twelve countries and regions, which include Japan, Brunei, Indonesia, Korea, Malaysia, Singapore, Thailand and China.
Harley-Davidson constantly insists on construction of product traditions. Harley-Davidson lifestyle has represented passion, personality and independence. Many persons regard that as the inheritance of the traditional American cowboy traditions. The main of the Harley-Davidson product design and online marketing strategy is concerned approach make the manufacturer distinctive for customers. In line with the customer’s preferences, the company would customize distinctive Harley-Davidson car for its buyer to enable customers to achieve the reason for demonstrating self-personality. Another great feature of the Harley-Davidson marketing strategy is actually concentration on its very own customers. Harley-Davidson focuses on the middle-aged guy of about a lot more than 35 years of age who have an increased income and a good education. The forex market segments brings the company even more profits.
Most of Harley-Davidson employees will be motorcycle enthusiasts and because of the for customers Harley-Davidson employees are usually passionate to fix their problems. The record (John W. Schouten, 1993) claimed that since 1983, Harley-Davidson set up the Harley davidson Owners Golf club and the goal is to present opportunities to associates to share the knowledge more conveniently. Till 2001 HOG distribution around the world offers 1200, and 660, 1000 members in 115 countries. HOG has established a Harley culture to link the consumers, motor bike and the company together and Harley-Davidson slowly but surely has attained more dedication from buyers in the past years.
According to a Harley-Davidson making report (Wikinvest, 2012), to get the initially quarter of 2011 that claimed that income got increased 73. 5% in comparison to that of recently and that totally is usually $119. 3 million. As well, retail product sales had improved by 3. 5% and comparing to last year one of the most sales quantity came from Europe. Finally, total income is $1. 1 billion via motorcycle product sales and had increased by 2 . 5%. Therefore , good creation and aim revenue of company can strengthen client’s loyalty.
Harley-Davidson has generated official site and it gives a quick means for customers to realize the company and gain the knowledge they want. In addition , the website items reservation support so the consumers can save their time.
Because of Harley-Davidson’s wonderful function, since 1980 Harley-Davidson motorbike has started to be used because the police car and the company has kept good supportive relations with local government. Presently, Harley-Davidson police motorcycle providers for more than 3600 police and government departments in the united states, Europe and Asia. They may be mainly placed on patrol and gratification on several special jobs.
1) The typical Harley-Davidson is yours around $30, 000. How is expenditure in a Harley-Davidson more than just a financial investment? Harley-Davidson has got more than just a financial expenditure because Harley- Davidson knows what the consumers are looking for and maintains rewarding the requirements of the customers. A better understanding of consumer patterns would affect the market strategy of the company. In addition , Haley’s spirit could be summarized since the following 3 points: passion, pursuit of flexibility, the excitement from life and others factors may represent just how attitudes towards life many people are looking forward to.
2) In what ways is the Harley davidson Davidson company more than a useful brand?
Functional brand fulfills basic customer needs using a product. Several brands become icons, including Harley Davidson. Harley Davidson not only creates iconic motorbikes but gives a life time encounter, allowing consumers to feel the liberty of driving such an famous item. Above the time H-D has gained millions of fans and customers who continue to be loyal to the brand. Numerous say when you trip H-D motorcycle it’s impossible to change it for any various other bike. In 1983 the HOG (Harley Owners Group) was established. This organization unites members from all over the world, providing opportunity to discuss love and keenness for Harley davidson Davidson. People organize trips, trips and events. HI-DEF created community and subculture.
3) The Harley-Davidson company is a great iconic American Brand, comprising the American way. Just how has this brand achieved this sort of a strong occurrence around the world, including Australia?
You will discover three ways that Harley-Davidson manufacturer has obtained success to become famous around the world. Firstly, the goal of product design and online strategy of the Harley-Davidson is centering on how to make the distinctive brand in the world; they have to work strongly with their clients to understand all their thinking and also needs. Second, Harley-Davidson Business has been able to establish their manufacturer image in the market since they continues to be focusing on the quality of their products. Third, Harley-Davidson Organization possesses the first brand culture.
4) A higher number of buyers chose to skin image a Harley Davidson company on their body. What could lead a consumer to skin image a brand just like HD issues body?
Harley davidson Davidson has turned into a cult. By simply tattooing brand’s symbol, one particular expresses devotion and want to the brand. These kinds of tattoos provide a feeling of of the unique community, relationship between a customer and a brand. Their express feelings, feelings and memories you have with the company. Harley Davidson is linked to freedom, electrical power, boldness and self-expression. Enthusiasm for HIGH-DEFINITION is so solid that many clients choose to skin icon HD’s image. It shows how much clients are involved in to the brand as well as its culture.
To sum up, a brief history of Harley-Davidson was showing in order to find out background of Harley-Davidson Organization. Also, SWOT Analysis which can be strength, weak point, opportunity and threat described the internal and external info of Harley-Davidson. This record described how 8Ps making marketing orientation more accurate through this company. We recommend that Harley-Davidson should think about reducing rates to satisfy youngsters consumers with lower eating level. In addition , Harley-Davidson may pay more awareness of expanding different regions to obtain more profit.
Harley-Davidson Australia/New Zealand (2012)
John W. Schouten (1993), Pages 389-393, Market Effect of A Usage Subculture: the Harley-Davidson Mystique http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=11476
Rich, A, C. (2004), ‘Strategic Management: Case Analysis ‘, Network world, http://www.scribd.com/doc/12517953/HarleyDavidson-Strategic-Analysis,(viewed 12 December 2012) HARI PRAKASH. N. Versus (2004) Approach management “Case analysis: Harley-Davidson http://zh.scribd.com/doc/12517953/HarleyDavidson-Strategic-Analysis
Wikinvest (2012) Harley-Davidson (HOG)