Strategic Brand Management
Case study: Harley-Davidson
Contents
Question 1 3 Question 2 5 1. Brand elements 5 2. Criteria 6 Question 3 8 1. Custom Vehicle Operations program (CVO) 8 2. Harley Owners Group (HOG) 8 3. Bar café 8 4. Exchange of motorcycle 9 5. Companies can learn from H-D 9 Question 4 10 1. Definitions 10 2. Equally successful 10 3. Non-equally successful 10 4. Co-branding or not? 11
Question 1
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Make a detailed SWOT Analysis of the Harley-Davidson Company, paying particular attention to the marketing mix (Product, Price, Promotion, Distribution, Personnel)
STRENGTHS | WEAKNESSES | * Net income of 2003 was $760mn,
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Name of motorcycles:
The first letter reveals the engine series, the second one the front head , the third one the frame style and the last one the frame family. http://www.factoryfat.com/hdbikemodels.html Characters:
The Harley-Davidson brand characterizes the mid – forties American willing freedom by riding wildly without any constraints. Slogan: “Ride free”, “The Wild Ones”, “Easy Rider”
2. Criteria
Memorability:
The names, the symbol and the logo of H-D are known by everyone.
In fact, the logo is easily recognized by customers.
Meaningfulness:
American flag and the eagle allow the association between the brand and its country of origin. IN fact this symbol recalls the customers that Harley-Davidson is the best American motorcycle producer.
The name can also give historical references to customers. Harley and Davidson are the co-founders names.
The name of the motorcycle helps the customer to recognize the products.
Likeability: This brand has this image of “free riding “ride wildly without any constraints. Many people and customers look for that “freedom”.
Moreover, American customers like the fact that the American flag because they are a very patriotic country.
Transferability:
H-D is a unique product and lifestyle which represent the same symbol all around the world.
The “ride free” slogan and the “easy rider “ one can be easily transfer to other market segments such as Europe
Harley-Davidson, Inc. (NYSE:HOG) was founded in 1903. The home base was originally founded in and even today remains in Milwaukee Wisconsin. Harley-Davidson’s popularity grew significantly during World War I, when the U.S. infantry used 20,000 of the company’s motorcycles in its war effort (Taylor, 2010). Best recognized for its manufacturing of heavyweight motorcycles, Harley-Davidson has captured half the U.S. market and a third of the global market (Wikinvest, 2010). Harley-Davidson motorcycles are noted for their classic lines, custom paint jobs, dependability, fine craftsmanship and the Harley-Davidson signature choppy sounding engine. Most importantly, it has been
Harley Davidson is a motorcycle manufacturing company whose headquarters are located in Milwaukee Wisconsin. The company is the biggest motorcycle producer in the United States .it is over a century old. Started by the Davidson brothers- Arthur, William, and Walter together with William s. Harvey, the company designs, manufactures, and distributes motorcycles not only in the United States but also to the rest of the world. It has since been producing heavyweight machines for its loyal customers. It has maintained its stability and growth, and this expected, for years to come.
Currently H-D is the leading seller of heavy weight motorcycles across the entire world. Because they are at the pinnacle they are the target for the competition. Some of Harley Davidson 's advantages are name recognition, brand loyalty, brand quality and customer loyalty (Hitt, Ireland & Hoskisson, 2013, p. 81). The company benefits by having “the made in America” image attached to its products. The image of a Harley rider and owner is one of a tough, independent, free spirit, ready and willing to take on the world type of man. The sound of a H-D motorcycle in idle or being ridden is unique and very identifiable.
How can a simple flag evoke so much patriotism and pride, even after this many years? Veterans may say the flag represents our freedoms- freedom of speech, freedom of the press, freedom of religion. In 1985, at the Maryland Flag Day ceremony, President Reagan stated: “The colors of the flag signify the qualities of the human spirit, we Americans cherish. Red for courage and readiness to sacrifice; white for pure intentions and high ideals; blue for vigilance and justice.” At the presentation to Congress in 1782, Charles Thomson, Secretary of the continental Congress explained the significance of the colors of the Great Seal and Flag that represents the United States. Thomson said at the time, “The Colors used in the flag of the United
By 1920, the company was producing almost 30,000 bikes annually and was the world’s largest motorcycle manufacturer, taking the title away from Indian Motorcycle. However, a combination of a mild economic depression and Henry Ford’s Model T began eating away at Harley-Davidson’s profits, and the motorcycle company even had to reject a potential business partnership with Ford Motor Company to protect themselves (“William S. Harley, Arthur”). The partnership involved manufacturing Harley-Davidson bikes with a sidecar to be used to deliver mail, albeit under the Ford name. Harley-Davidson rejected this deal, but later used the idea to sell their own bikes to the Postal Service (Harley and the Davidsons). In 1914, the U.S Postal Service was using 4,800 Harley-Davidson motorcycles to deliver mail. To save their company, Harley designed motorcycles to be used by law enforcement across the United States. By the mid-1920s, roughly 3,000 law enforcement personnel would be riding a Harley-Davidson, a testament to William Harley’s engineering genius. In addition, Harley would design bikes with larger engines and brakes which helped boost sales for a short while before the Great Depression came. To counter the resulting plummet in sales, Harley gave the bikes a facelift, designing new bikes with more appealing fuel tanks and adding both stylized eagle designs and the company logo on the bikes to increase appeal. Around this time, bikes were also designed with different color patterns (“William S.
There are many ways to analyze the performance of a company, some more popular than others. According to the Barney text the accounting method is the most popular way of measuring a firm's performance (Barney, 2002). Some of the reasons for the popularity could include the fact that accounting measures of performance are publicly available on many firms and they communicate a great deal of information about a firm's operations. Other methods of performance analysis include firm survival and the multiple stakeholder approach.
Harley managed to remain profitable by introducing larger, more powerful motorcycles, becoming the undisputed leader of the market with over 60% market share. It earned a commanding lead of 50% market share in the United States and 32% globally in the 1950’s. The Harley motorcycle became a part of American iconography and was associated with the U.S. flag and the bald eagle, America’s national symbol. This resulted in unprecedented brand loyalty, especially among U.S. customers, which is prevailing till today.
Celebrating their 100th anniversary next year, Harley-Davidson is a true American success story. From their modest beginnings in Milwaukee, Wisconsin to one of the most recognized company names worldwide, they have been passionate about motorcycles. Harley offers an experience like none other with the one of a kind look, feel, and sound only available on a Harley. Besides their main business of building and selling motorcycles, they have began to offer financing and insurance through Harley-Davidson Financial Services, and they also offer a full line of accessories and apparel to make the Harley experience complete.
The advertising copy instituted by Harley-Davidson is particularly limited. Beyond simply mentioning the name of the company and the
Since the founding of Harley-Davidson in 1903 by Arthur and Walter Davidson and William Harley, the company has a rich heritage and a loyal following. The company has proven to be resilient and innovative throughout the years. They have made their fair share of mistakes, especially while under the ownership of AMF, whose decisions almost destroyed Harley-Davidson. They have also made an inspiring come back, recapturing their share of the market and more. Harley-Davidson has managed to attract all sorts of riders including motorcycle “rebels”, women and blue and white color workers. In fact, in our church small group there are two
Historically, Harley-Davidson has managed to dominate the U.S. market by becoming a staple of American culture. Specifically, the Harley-Davidson motorcycle is considered “a part of American iconography” and is typically associated with well-known American symbols, including both the U.S. flag and the bald eagle. As a direct result of this association, the company has achieved strong and long-lasting brand loyalty among U.S. customers, which has undoubtedly contributed to its great success in the U.S. market.
Harley Davidson is known as one of the main motorcycle manufacturers and sellers in the United States. The company had good business and great market share in the early 1960s when it commanded a total of about 70% 0f the motorcycle market, before the invasion or the intrusion of a small Japanese firm that manufactured lighter motorcycles, known as the Honda. The case study as identifies that Harley Davidson assumed the invasion by the Japanese firm and instead of tackling the competition, it waited for a long time which resulted in the company losing its command in the motorcycle market in the United States. Lack of action by the management of Harley Davidson resulted in the failure of the company
Regardless of their emergence in the market in the year, in 1903, Harley-Davidson together with the motorcycle industry did not have an easy start until the end of the Second World War. Many people used motorcycles during the period the war took place. Harley-Davidson was instrumental in supplying around 90,000 motorcycles to the American military during this period. Many veterans opted to buy motorcycles after returning home. This is because they enjoyed riding the motorcycles during the war and desired to continue riding them after the end of the war. This generation was called the "baby boomers" and became the primary target for Harley-Davidson to market their products.
The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base.
Milwaukee is where it all started for Harley Davidson. In 1903, William Harley Walter and Arthur Davidson created the first of millions Harley Davidson. It was one of the two major motorcycles that were able to survive the great depression. Since 1977, the only motorcycles sold to the public under the Harley-Davidson brand have been heavyweight motorcycles, with engine displacements greater than 700 cc, designed for cruising on highways. It is one of the most well known brands in the world of motorcycles and otherwise as well. Harley-Davidson maintains an enormous brand community, which keeps active through clubs, events, and a museum. The worth of Harley Davidson brand and its logo was somewhere around $40 million which was 0.8% of the