Market Segmentation and Product Positioning

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.

BCH Executives have agreed to begin the new touring motorcycle project with larger motors for long distance driving. The proposed target audience suggested for this product would maintain an income up to 100,000 annually. The project completion goal is within five (5) years of the marked beginning date. The company will use the current facilities where the medium-sized manufacturing are created with modification of the equipment and as well as additional staff. With an estimated goal of 100 larger motor motorcycle production at a cost determined by the approved budget, this project will utterly build additional profit for the company.

The quality of engineering and the safety are other essential points that the marketing plan should include. These parameters are important for both age groups. Having certain extra safety features on the motorcycles can contribute to the need of the younger buyers. Because there funds are low there has to be consideration toward what is affordable. There are possibilities that parents might help to purchase. Within seeing the extra safety features on the car. Quality of engineering is important to the life of the motorcycle. Indeed this will assure the long lifespan and the quality put into all products sold by this organization.

* Publicize the motorcycle by promoting it in Hollywood films that could portray the cool, fee lifestyle of owning the motorcycle would be which is important to the brand

Thorr has decided to launch RRoth. $12,649,000 is spent out of allotted $13 million dollars for the marketing plan. Keeping the young people and their salary range in mind, new motorcycle will be priced between $13000 and $15000. Wide range of promotional techniques will be used including sponsoring mega events like Daytona and getting celebrity endorsements. It also included insurance facility, protection offerings, and featuring of RRoth in Hollywood movies. Movies were specially focused because of young target audience. Dealers will sell the motorcycle all over the country. Official website will give complete information about the product including financing options. Planned services include customization options, club memberships and dealer training program. Financing option will ensure the customer from lower income group. Thorr is performing much better after the implementation of all the recommendations. Now, young people are opting for the new product enhancing company’s market position as well as sales.

Motorcycles are growing in popularity around the nation, but many people are worried about their

Consumers are not limited to a single market, many of them will be purchasing multiple bikes, but all of them have specific preferences. Successful company will meet customer’s needs and maximize sales by growing the potential market size as well as taking sales from competitors.

According to me, the motorcycle industry is very attractive. The main reason to back my claim is the level of competition in the industry. There is a very high level of completion between all the companies present in this particular segment. The main factors that drive this rivalry are different positions of different players within the industry, differences in technical know-how, different marketing campaigns, differences in core nature of the products and differences in strategies. The players in this particular industry don’t fight over price of their products, they rather compete with each other in terms quality of their products and the nature of their services to different segments of customers. Each player had its own unique strategy and nature of the product for a particular segment of customers, this tends to intensify the competition amongst companies in the industry.

The Harley motorcycle had a unique look and the sound of the engine too was different attracting the customers especially the older males.

Market segmentation is usually regarded as one of the main elements of marketing, with benefit segmentation commonly referred to as the most meaningful form of segmentation. Even though the importance of segmentation is broadly accepted, limited research, do exist about cosmetic medical products (Mohr, Sengupta, & Slater 2010, 79). There are very few real examples of segmentation studies available. This article has focused on Johnson and Johnson products marketing strategy globally. The spread of global culture is normally facilitated by the rise of global capitalism, the proliferation of transitional corporations, homogenization of global consumption, and widespread aspiration for material possessions. International market researchers have discussed the breadth of convergence of cultural values across countries.

The major forces for change in the external environment of motorcycles industry are political, economic, social-cultural, technological, environmental and legal factors (Cadle, Paul, & Turner, 2010). The political factors affect the external environment of motorcycle industry by affecting the markets. The government has influenced changes through free trade agreements, ensuring patent protection and encouraging e-commerce. Political influences provide both opportunities and threats, the free trade agreements have allowed expansion into other markets but also has increased the inflow of cheaper substitutes into the market that a company operates in. Political factors affecting this industry has brought opportunities for the Harley-Davidson.

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.

Increase of sales and the growth in the industry resulted to creation to motorcycle clubs as well as rallies were established. Unfortunately, lewd behavior exhibited by many people linked to the motorcycle clubs and rallies, had an image of being messy and raucous. This gave the bikers a terrible reputation. The image of Harley-Davidson was negatively affected because of the Hells Angels. All of these factors combined resulted to a sharp decline lead in demand and purchase of the motorcycles throughout the whole industry in the 1970's.The motorcycle industry provides products, which are often viewed as luxuries or desires rather than necessities. In regard to Harley-Davidson many motorcycle owners bought their bikes as a second vehicle, to use often

The website of Harley Davidson gave us a new concept of Motorcycles! The extension of this website is exceptional. The virtual Customer Service in this website is notorious and extremely helpful. From other motorcycles websites this is one of the most professionals ones where the customer can get a flavor of the company from products up to their businesses profits and others...Harley Davidson publishes material related to all aspects of their motorcycles and provides to their own and the general public good information, expanding their products and other services with local information for countries around the world. Their information and technology, including digital libraries, metadata, authorization and

motorcycle and automobile maker by the mid-20th century, and today it is an internationally respected