Thus, it is a very attractive opportunity for Harley to capture these markets without much delay. • Harley has its own set of loyal and cult followers which also attracts young customers. Thus, the company can launch low end heavyweight motorcycles which will help the company to expand its customer base. • Harley can use its increased marketing efforts to further increase the customer base by marketing towards untapped segments as females and youngsters are showing more inclination towards cruise bikes. For example, In 2006, women accounted for 12% of all bike sales.
The company had to competes with a large number of firms. Also, substitutes such as private cars and public transportation were available to their potential customer. Based on the Five Forces Analysis, Harley-Davidson must maintain competitiveness, especially in terms of product quality, to protect its business from other firms. Threat of Subtitles: This identifies the effect of substitute product in Harley’s industry. There are many substitutes to Harley’s products such as cars, and public transportation, however the overall force of threat of subtitles are moderate as Harley’s customers are into riding chopper motorcycles and would not prefer to shift to other
Market Penetration to gain more share with its current products in its current market Another option is to follow the “market penetration strategy” i.e keep on doing what you do best and stick to it. This strategy will help them gain more market share with its current products in its current markets just by focusing on their customer needs. This would be the easiest strategy to do because their target segment is full of passionate riders who immediately fall for their products. Advantages-The main point behind this idea is to ensure that their existing clients keep on riding the bikes into their retirement, which will help promote the idea “bike for any age”. It is clearly evident that Harley-Davidson is not just the bike it’s a lifestyle
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.
These factors have allowed the heavyweight riders to build up a mystique culture around the brand name Harley Davidson. The below mentioned figure explains how the above mentioned factors will influence the growth and success of Harley Davidson. Core Competencies The Harley Davidson’s operations strategy consists of core competencies which allow them to thrive in their success. Those can be listed as follows. • The implementation of modern systems of operations to survive the great depression and later to make it the reason for successful product line.
Honda was more family oriented and communal, smaller, quieter, faster and more important less-expensive. By the time the market was more oriented to first time buyers and 80% percent of the sales accounted to first time buyers, the Japanese started acquiring the market and they accounted to more than 85% of the motorcycle sales in the U.S. Harley Davidson believed in their own methods and was not ready to go any drastic change in their organization in the early stages and they suffered a huge setback in the industry and the sales, which was beginning to being dominated by Japanese companies led by Honda. The Japanese companies were skilled at mass-production. Harley Davidson did not make any unique technological innovations in this period. The company went public after 60 years, and was also taken over friendly by AMF, a conglomerate looking to diversify in leisure
By 1911 Harley had 150 at least of other brands of motorcycles competing for their share of the market. The public liked the Davidson cruiser but the cruiser did not have a racing past. Harley Davidson Timeline In 1901 William S. Harley completes a blueprint drawing of an engine designed to fit into a bicycle. In 1903 Harley and Arthur Davidson made available to the public the first production of a Harley-Davidson motorcycle. The bike was built with a 3 by 1/8 inch bore and a 3by ½ inch stroke.
Its greatest strength lies in its loyal following including its traditional customers in defence and village landlords. But now, with the entry of Harley Davidson and Triumph, the scenario is going to become very competitive for Enfield. Its low cost and loyal customer base will hold it in good stead but brands like Harley have their own following, which will be a threat. Politically, with talks of GST and labour law reforms on the way, things look good for manufacturing firms like Enfield. The new government too, is focused on reviving the economy by pushing growth in manufacturing sector.