Creator Influencer Strategy Master Class - Corinne Rose Guirgis
Harleydavidsonbrand
1. HARLEY -DAVIDSON INDIA
LEVERAGING THE BRAND ADVANTAGE
THE RIDERS-PARVEEN
CHOUDHURY
ARNIKA MINZ
2. The BEAST
• Harley Davidson is not a basic transport vehicle,
it is a LIFESTYLE LUXURY product aimed at the
premium segment in India.
• Iconic motorcycle manufacturer from U.S.
• Symbol of rugged individualism, freedom and
rebellion.
• The company sells heavy weight cruiser
motorcycle in luxury motorcycle segment.
• India, as one of the two top markets in Asia
Pacific region.
3. The BEAST
• HD operated in two segments- MRP unit & FS
unit
• MRP unit- motorcycle, parts, accessories and
related merchandise
• FS unit- retail financing and insurance to dealers
and retail customers in U.S & Canada
4. THE HISTORY
1900’S -SERIAL NUMBER ONE
William S. Harley and Arthur Davidson make
available to the public the first production Harley-
Davidson® motorcycle.
2010’S-It
softened its outlaw image just enough to entice a new generation of clean-cut
buyers to join a club that had long been synonymous with the Hell's
Angels -- yet without taking away the frisson of excitement that came from
being a member.
Indeed, membership now doesn't even require a driver's license.
5. BRAND IDENTITIES
• The characteristic H-D sound(pot-pot-pot). Some say the noise is
patented.
• The famed "Bar & Shield" logo patented in the 1900’s.
• GRAPHIC DESIGNS ON HARLEY-DAVIDSON ® MOTORCYCLES
An art-deco “eagle” design is painted on all gas tanks. This styling
decision was made in part to stimulate low sales numbers caused
by the Great Depression.
• Wartime vehicle.
• Modern merchandising.
6. The sweet smell
of failure
BRAND IDENTITIES
Harley Davidson – Brand Values
Freedom – Go wherever you want to, whenever
you want to.
Authenticity – Noted for the tradition of heavy
customization, Oldest and quality name in
manufacturing bikes.
Community Building– HOG has 1.4 million
members, Ride Planner to plan trips, H-D Photo
Center for posting photos of memorable trips.
Rituals – Community festivals and monthly or
annual rides/events are conducted regularly,
buttons and pins from an activity/event are worn
on jackets.
Masculinity – Unique sound of the exhaust,
association with icons in films.
Toughness – Rugged heavy design and look of the
bikes.
7. BRAND IDENTITY PRISM
PHYSIQUE PERSONALITY
RELATIONSHIP CULTURE
SELF
IMAGE
REFLECTION
•American spirit
•Individuality
•Freedom
•Rebellious
•Joy of
individualism
•Commitment
to adventure
•Reward of
fulfilment
•Rebel, bad-ass
•Inventive design
•Custom cruiser
•Loud and powerful
engine
•Dealer development
•HOG
•Harley is not for
everyone
•For love of the
open road
8. Model families of HD-
• Touring
• Softail
• Dyna
• Sportster
• Vrod
• Street.
These model families are distinguished by the
frame, engine, suspension, and other
characteristics.
9.
10. PRODUCT EXTENSION
• Bike accessories
• Buell motorcycle: wholly owned subsidiary of HD
by 2003(closed now)
12. HD-India
• 2010-1st showroom in Hyderabad
• 1st assembly facility in Haryana- reduced import
tariff and retail price
• By mid 2012, HD offered 15 models
• Govt of India rejected the demand for reduced
import duty but allowed entry through dealer’s
network
• 5 dealers across country
13. HD-India
• HOG to India in 2012
• Increased competition –emphasis on building
brand
• Developed customization kits
• Accessories, clothing, tattoos- customers
perception
• BRAND BUILDING EVENTS
• After huge response, expanded to Kolkata,
Jaipur, Kochi
• India, 2nd biggest market for motor cycle
15. Brand building in India
There is a lack of brand recognition of Harley in India as
compared to its competitors Yamaha and Suzuki
brand strategies:
16. H-D VS ROYAL ENFIELD
• Longer presence in India and hence loyal
customer base. First mover advantage.
• Can be serviced anywhere in India.
• What HD is to US, Enfield is to India.
17. SWOT analysis
STRENGTH
Premium brand image
Excellent product quality
Presence of customization
Brand and product extension
Harley owner group(HOG)brand
loyalty
WEAKNESS
Indian customer is price sensitive
Sales is only allowed through
dealer
Poor availability of spare parts and
skilled mechanics
Non availability of fuel
OPPORTUNITY
Increase of cruiser heavy bikes in
India
FDI in India
Increase of young people with
disposable income
THREAT
Presence of competitors like
Yamaha and Honda
Emission standards in India are
stringent
Slowdown of Indian Economy
18. Marketing mix
Product
• Heavy weight motorcycle
• Also deals in used bikes
• Offers regular and extended warranties
• Unique accessories- saddle bag
• Revolution engine
Price
• Price ranges between $ 8000 & $ 40,000
• Being speciality product price should be high to maintain brand
image
• Harley offers financing for about 60 months
19. Marketing mix
Place
• Should be located in bustling cities for market exposure
• Face to face or direct sales are crucial for harley sales
Promotion
• Create new commercials
• Social media marketing
• Lucky draw, free services
21. PORTER’S FIVE FORCE MODEL
Rivalry Among Existing Firms
• 4 major competitors in heavy-weight
motorcycle segment:
Harley Davidson, Yamaha,
Suzuki, and Honda
• Some of the other competitors
have more financial and marketing
resources
• However, Harley Davidson’s help
from government allowed them to
catch up to their competitors and
gain some ground in market share
Threat of New Entrants
• Very high entry barrier – requires
high capital investment and is a
mature industry
• Low economies of scale
22. PORTER’S FIVE FORCE MODEL
Threat of Substitutes
• Cars, sports bikes, and scooter
bikes are main substitutes
• Harley is a luxury vehicle, so there
are few close substitutes for this
heavy-weight motorcycle
Power of Suppliers
• Steel, basic electric equipment, and
shipping of the final motorcycles
are the needs of Harley Davidson
from its suppliers
• “Preferred suppliers” strategy
decreased the number of suppliers
Harley Davidson worked with and
increased the quality of the
suppliers as well; these long-term
contracts protected Harley
Davidson from supplier price
increases and also created a trust
between them and their preferred
suppliers because the suppliers
generated a lot more profit as well
23. PORTER’S FIVE FORCE MODEL
Power of Customers
• Since Harley Davidson market is
aging, they must attract new
markets and make new brand
loyal riders
• Each Harley Davidson purchase is
by an individual, so though one
person will not significantly affect
the financial earnings of the
company, it is important to sell the
individual experience to each
customer in order that Harley
Davidson can reach more markets
and combine these sales to create
financial growth
24. CONSTRAINTS IN THE INDIAN
MARKET
• Lack of service dealers in the
owners’ hometown leading to
cumbersome servicing process.
• Lack of trained mechanics.
• High priced spares and service.
• Non availability of specialized
fuel(97 octane).
• Unsafe roads.
• Customer dissatisfaction owing to
lack of infrastructure in India which
prohibits them from the Harley-
Davidson experience.
25. CONSTRAINTS IN THE INDIAN
MARKET
Lack of service dealers in the owners’ hometown leading to cumbersome
servicing process.
Reason : Not too many Harley owners in specific towns. Profitability is reduced if
service dealers are opened in towns with less concentration of Harley owners.
Solution :
• Harley can collaborate with US luxury brands like GM to provide spare parts and
servicing through their service centres till the time they have their own centres..
26. CONSTRAINTS IN THE INDIAN
MARKET
Non availability of specialized fuel(97 octane).
Reason : fuel stations have to buy atleast 12,000 litres of 97-octane petrol in one
go. There are not many takers of this fuel. A good portion of the fuel is wasted
as it evaporates fast.
Solution :
• Identify cities with a high concentration of luxury vehicles and enter into
collaboration with petrochemical companies.
• For example, Audi , Porsche have tied up with petrochemical companies to
make 97 octane available at various pumps in tier 2 and tier 3 cities.
27. CONSTRAINTS IN THE INDIAN
MARKET
Customer dissatisfaction owing to lack of infrastructure in India which
prohibits them from the Harley-Davidson experience.
Reason : the biking culture is not prevalent in India.
Solution :
• Organise regular events for the HOG members like mountain trips, adventure
weekends.
• Participating in famous events would help bring limelight to the brand along with
help the target customers associate the brand with famous events. For example,
Goafest where Rajputana motors organised a rally proved a very good platform.
So target youth oriented festivals like Sunburn9Goa), Autoexpo, National youth
festival.
28. CURRENT SCENARIO
• Ten fold increase in sales in India by 2015-16 to
10,000 units a year.
• Export Street 750 model to U.S from India in
2014 – low cost model for the Indian consumers
who are price-sensitive (Rs 4,10,000).
• Street 750 model-
• Custom built for Indian roads.
• The design can be customised by the owner.