Harley Davidson 's Strategic Global Marketing

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, Inc. since its inception has specialized in selling dream motorcycles that are of high quality and distinctive in styles. The company in the past have seen turbulent business environment to the extent of leveraged buyout, infiltration of foreign made bikes as well as government regulations. Yet despite these factors, Harley-Davidson continues to reap profits, yield high growth of approximately 15% a year and retain its customer base (Official Website 2004). This position in the market is however limited to the US whereas in other countries of the world Harley-Davidson products remain luxury item requiring emotional attachment with American iconism.

Harley-Davidson, Inc. (www.harley-davidson.com) is a comprehensive strategic management case that includes the company’s calendar December 31, 2008 financial statements, competitor information and more. The case time setting is the year 2009. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Milwaukee, WI, Harley-Davidson, Inc. is traded on the New York Stock Exchange under ticker symbol HOG.

Harley-Davidson has been operating as a U.S. motorcycle manufacturer since 1903. Throughout its life, it has been through many hardships, but just as many successes. Throughout the 1970s and 1980s Harley-Davidson experienced tremendous difficulties and almost went bankrupt in 1985. To its dismay, in the 1990s Harley-Davidson experienced several years of record growth and was ranked in 1990 by BusinessWeek as one of the top U.S. companies with a market value of $515 million. As a sign of their success, they remain the only U.S. motorcycle manufacturer still in business.

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.

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.

Harley-Davidson business strategy is relating towards making decisions that are vital for market brand dominance with the targeted audience. The decision approach will give the information strategies used to improve sales forecast objectives. Over the years Harley-Davidson re-invent their strategies to adapt to market changes and improve efficiency in the manufacturing design and safety features. Harley-Davidson has used the cost leadership strategy through the alliances with other corporation when there is an opportunity to lower the cost of production for a given level of quality and gain market share through the sales in large quantities targeting broad markets (QuickMBA, 2010). Harley-Davidson customized motorcycles depending on the customer needs and wants which offers unique attributes that are valued by customers

Harley-Davidson is likely the famous motorcycle manufacturer on the planet and is situated in the headquartered in the United States, Milwaukee, Wisconsin. Even hard considers 1903 as its base year, could just as 1901 considered, because that's when Bill Harley completed the foreground of a Harley engine .In 1903, the same Bill Harley and Arthur Davidson uncovered their initially mechanized exertion, calling it the first Harley motorcycle. It was a racing bike, built in a wooden shed that had Harley-Davidson Motor Company scrawled on it. That same year, the brother of Arthur - Walter Davidson - joined the company. In no time, the first Harley-Davidson dealer opens store (1904) and manages to sell three Harley motorcycles. In true American style,

We believe that the firm must find ways to broaden the appeal of its brand without alienating its core customer base. Harley has grown in recent years in the international market , and revenues generated abroad have risen to 25% of total revenues in 2007 from 19% in 2004. Although the firm has recently introduced a performance motorcycle for the European market, I think that it may find it difficult to deliver customized products for overseas markets while supporting its brand franchise.

Harley Davidson Company has a long history of building quality motorcycles that have been well receipted in various niches. The company has actually helped to shape a part of the American culture through its products. Its product positioning and marketing strategies can served as a classic example of building a brand icon. Harley Davidson has developed immense levels of brand loyalty over the years. However, the historic company has also been affected by the economic volatility since the recession. The company must know reinvent itself as it turns the next page in its history.

Harley Davidson Inc. is an American motorcycle manufacturer. Founded in Milwaukee, WI, USA, during the first decade of the 20th century, It has become one of the most formidable players in the US motorcycle industry. Harley Davidson holds 50.2% of the motorcycle market share in the US. Demand for motorcycle is elastic hence Harley Davidson cannot price fix.

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.

Historically Harley-Davidson to be a Niche Marketer, which is they had focused in on one particular aspect of the market. Kotler and Keller identified the following characteristics of niche marketing; customers have a distinct set of needs, they are willing to pay more to the firm that best suits their needs, it is not likely to attract competitors, gains economies through specialized products and it has a size, profit and to grow. Almost all of these hold true for the “heavyweight” segment of motor cycles that Harley-Davidson produced.

Since Harley Davison Motor Company started in 1903, they have been successfully “taking the work out of bicycling” better than any other motorcycle manufacturing company. They have experienced great success recently with growing numbers in their percentage of motorcycles shipped, up 14 percent from 1997, and their target market size, up 13.8 percent from 1997. Their brand has also grown so strong over the years that customers are willing to wait up to two years for a motorcycle. The problems that Harley Davison is faced with are how to improve their existing purchasing process, how to integrate their existing procurement methods together, and how to develop longer term

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.