OBJECTIVE: Determining the Strengths, Weaknesses, Opportunities and Threats of the firm Harley Davidson. INTRODUCTION OF THE FIRM: HARLEY DAVIDSON is an American motorcycle manufacturer which was founded in Milwaukee, Wisconsin in 1903. It is one of the worlds largest motorcycle manufacturers and an iconic brand widely known for traditional styling ,design simplicity ,durability ,quality and its loyal following. It is one of the two major American motorcycle manufacturers to have survived the Great Depression. STRENGTHS: • It has established a strong brand image as its motorcycles have been achieving iconic status.
Harley Davidson’s brand actually sells much more than just motorcycles and spare parts. It has a range of products comprising helmets, jackets, sunglasses, gloves, jewelry, pants, watches, T-shirts, among others. However, the main thing this company offers customers is its brand symbolic’s universe, which is transferred to customers’ personal and collective lives. The marketing communication strategy carried out by this company makes customers believe if they buy Harley Davidson’s motorcycles, clothes, jewelry, etc., they will become part of a special and selected group of motorcyclists, able to live a desired lifestyle by using the concept of this brand. Thus, customers can take part, as well as benefit from the symbolically created Harley Davidson’ style and culture.
Focus on Generation Y by Product development-As we know that Younger generation is kind of untapped market for Harley-Davidson that has a global and local potential. If the company decides to choose this strategy they can develop a new sports bike especially designed for the young generation (Include customer friendly attributes like fast speed, cheaper prices, light weight and sleek looking motorcycle and yes not to forget elemental dark colors) that will help touching the “black world” of the younger generation. Advantages-It will appeal more to Generation “Y” and pose a threat by competing in the same category as their competitors (BMW,Suzuki and Yamaha) Being a new product price point can be set according to the market needs which allows more people to own brand like Harley Davidson which was not possible before. Disadvantages-This strategy will lose their existing loyal customers, as they would not see any value the new product. Another drawback could be that the lower priced motorcycle will actually dilute the Harley-Davidsons exclusivity
Harley Davidson Motor Company; About Harley Davidson is a stylish, state of art American motorcycle producer, founded in Milwaukee, Wisconsin in first decade of the 20th century. Later this heavyweight motorcycle producer was one of the major American motorcycle manufacturers to survive the Great Depression, whereas they also survived the competition from Japanese manufacturers and poor quality control period. It’s a highly argued fact that this stylish manufacturer focuses a specific segment of customers which is so contradictory to its competitors. Later in 1908 they were able to establish dealerships in New York, Chicago, Philadelphia, Atlanta, Newark and many more cities. Starting from 1912, Harley Davidson was marketed with over 200 dealerships and began distributing
Depending on product market and situations corporations are using different extension method either it be horizontal or vertical brand extension . Brand extension should be based on compatibility between parent and extended brand . If the extended brand matched with the parent brand then it 's acceptability or progress may be high .
The Effects of Brand Extension toward the Brand Image Loh Jia Cong. Student Multimedia University Introduction Generally, brand extension is a common way that a company use to launching a new product with use same or existing brand name for that new product in a different category. The existing brand name is also called parent brand. Brand extension also representative a company utilizes their brand name to a new product and leverage equity for expansion. Every company hopes to utilize brand extension leverage with its competitors and increase the sales or profits with the new product they offer.
DISADVANTAGES OF BRAND EXTENSION: Some of the disadvantages of brand extension are as follows: • Brand extension which don’t have strength to compete with those of its competitors then it fails • People may be not aware of the new brand extension this happens when the management regarding new product is not fully done and its marketing ids not done properly because in some cases manager of new brand think that the parent brand name will compensate the spin off brand. • Brand extension in different market create brand to suffer so for that the organization should need to conduct a research and see that in which product category the extension of a brand will
Talking about rare pieces of works, what entering right into our minds is to preserve it. In a business world, we also decide to preserve our position to strengthen our images. For some entrepreneurs, the word ‘Brand Extension’ might mean ‘devalue’ because this action brings about some consequences that lead to change the brand positioning according to several cases that have been failed with brand extension. For instance, in 1999, the famous women magazine named Cosmopolitan has launched the new product that really contrast with what they actually do, The Cosmopolitan yogurt. Sounds awkward?
Moreover, the parent brand loyalty, equity and personality also play a huge part in the brand extension process. Ranjabraien et al., (2013) researched analyzing brand extension strategies in Service Companies indicate that the probability of success and acceptance of brand extension in order to have a competitive advantage are strongly influenced by the Perceived product quality and the perceived fit between the extended product and other products of the brand and consumer 's attitude to extension. If the extension is according to the perceived fit the brand extension strategies can be a success. Dr. Jayakrishnan et al. (2015) concluded that a recognized brand name could provide competitive advantage and hence, is considered as one of the firm’s most valuable assets.