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branding strategy of Harley Davidson

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  • Beans: 66 - the road, 1903 - Year of creation of the brand, the eagle - America/freedom, the logo Harley Davidson, the US flag revisited by Harley Davidson, the star and the V-Twin engine),
  • This successful co-branding, unmatched in the industry, offers customers true specialized truck luxury. The Ford brand linked with an industry leader to offer the best of the best.
  • The tradition of customization and the ability to express an individual personality on a motorcycle is what makes Harley-Davidson so appealing to millions around the world. Gibson Guitar enjoys the same notion of customisation through its legendary guitars
  • Most “failed” brand extensions don’t jibe with how consumers understand the core brand or just seem incongruous with a company’s existing product line
  • While Harley Davidson’s core fans may have accused the company of ‘Disneyfying’ the brand, the real problem occurred when Harley Davidson attached its name to a range of aftershave and perfume.
  • Extension in international work company: for example to follow bikes on the road, interview them… In French: Société de production
  • Transcript

    • 1. Global Branding Strategies
      • Clara Dorval
      • Satheesh Kumar Chinnappan
      • Kannan Jaganathan
      • Pierre-Henri Reix
      • Jessica Sarrade
      May 10, 2011
    • 2. History of HD
      • 1903 – William S. Harley & William, Arthur, Walter Davidson
      • 1909 – First V-twin powered bikes, it became most enduring icons of Harley Davidson history.
      • 1917 – 1/3 rd of the bikes were sold to the U.S military, at last 20,000 HD bikes were used in World War I (1918).
      • 1922 – HD dealerships spread across 74 countries.
      • 1933 – An Art deco “Eagle” is printed on tanks this starts the graphic design on HD.
    • 3.
      • 1953 –Attractive logo was created for 50 th anniversary with caption “50 years-American made”.
      • 1983-1986 – Entered into American & New York stock exchanges.
      • 1997 – Two big plants constructed in Milwaukee & Kansas cities.
      • 2002 – “Open Road Tour” debuted in Atlanta to celebrate upcoming 100 th Anniversary.
      History of HD
    • 4. History of HD
      • 2002 – demand for heavy weight motor cycle in U.S grew up by 17% compared to IGR of 10%.
      • 2003 – more than 950,000 bikes were sold in U.S & 28 million world wide expect to grow 5% every year.
      • HD recorded its 19 th consecutive year of record earnings in 2004.
      • Harley is the only major American Manufacturer of heavy weight motor cycles.
      • Have more than 15,000 employees.
    • 5. Main features
      • Harley Davidson Softail Family
      • eg:narrow seats, tombstone tail lights, full length floor boards
      • Harley Davidson Sportster Family
      • eg: low-rise handlebars, bullet style headlight.
      • Harley Davidson Touring (Dressers) Family
      • large windshield & have a full front fairing. leather saddlebags, optional sidecar, & option to customize.
      • Engines
      • Big V-twins, Small V-twins, and the Revolution engine
    • 6. Main figures
      • 2009 - HD’s share of the U.S. heavyweight (651+cc) market was 53% &12% in Europe. (app.)
      • Capital Expenditures were $116.7 million in 2009 & $1.0 billion in the last 5 years.
      • $100 invested in Harley-Davidson at the end of 1986 would be worth approximately $9,000 at the end of 2009
      • The Company incurred R&D expenses of $143.1 million, $163.5 million and $185.5 million during 2009, 2008 & 2007 respectively.
    • 7. HD’s motorcycle Shipments HARLEY-DAVIDSON, INC. NYSE: HOG Fact Sheet
    • 8. World wide Revenue HARLEY-DAVIDSON, INC. NYSE: HOG Fact Sheet
    • 9. 2009 Worldwide Retail Sales of Harley-Davidson Motorcycle HARLEY-DAVIDSON, INC. NYSE: HOG Fact Sheet
    • 10. VALUES OF HD
      • Values are the heart of HD business,they guide our action and serve as the framework for the decisions and contribution of our employees make at every level of the company.
      • Tell the truth
      • Be fair
      • Keep your promises
      • Respect the individual
      • Encourage Intellectual curiosity
      Source HD website
    • 11. Product extensions
      • Motor Cycles
      • Bike accessories
      • Buell motor cycles: wholly owned subsidiary of Harley by 2003 (closed now)
    • 12. Brand extensions
      • Merchandise
      • Helmet
      • Clothes (Jackets…)
      • Mugs
      • Collectibles….
      • Beer
      • Bars
    • 13. SWOT - ANALYSIS
      • HD operates in two segments- HD Motor Cycles& related products and HD Financial services(hdfs).
      • HD is the only American heavyweight motorcycle manufacturer.
      • Strong brand name & relationship with customers
      • HD having good marketing division and its divided as a dealer promotion, customer events, magazine and direct mail advertising and public relations.
      • Customization of the bike is HD’s major revenue maker.
      Strengths
    • 14. Weakness
      • High price
      • Top board of directors were all men
      • Lack of employee diversity
      • HD has problem in gaining more market share in some European countries.
      • Required production is not met.
    • 15. OPPORTUNITIES
      • Women & younger riders are showing more interest in bikes
      • The international heavy weight market is growing and is now larger than the U. S. heavyweight market
      • Market share increasing in Europe and Asia for the last two years
      • Increasing demand in US markets for bikes Customers value quality parts
    • 16. THREATS
      • Harleys average buying age is 42 years old & it still increasing.
      • The European Union’s motorcycles noise standards are more stringent than those of Environmental Protection Agencies in the U.S and increased environmental stand.
      • Some competitors of Harley Davidson have larger financial and marketing resources and they are more diversified.
      • Environmental protection laws.
      • Shifts in buyers needs & taste.
    • 17. DIAGNOSTIC
      • The market: good
      • The brand: good
      • But we can increase the brand and the market
      • always improve
    • 18. Positioning Expensive Good engineering Quality Innovative
    • 19. Strategical view
      • Real experience through messages «  living between two ballads » and the new offer of rent.
      • Guaranteeing quality.
      • Style and custom especially with HOG ( harley owners group).
    • 20. Existing Brand Alliances
      • In USA: Shell and Harley Davidson (joint communication)
      • In offers about mapping oil-pit stations through the HD ride planner
    • 21.
      • Shell also will be the exclusive fuels sponsor of the Harley-Davidson 105th Anniversary Celebration
      • in August 2008 (joint communication)
      +
    • 22. Existing Brand Alliances
      • In France: Lenôtre and Harley Davidson via the agency Fidback.
      • (joint communication)
      • Lenôtre, creator of High Fondness and the American legendary brand Harley Davidson joined with the agency of Fidback communication to present Wafer of Kings
      • Harley Davidson, limited edition 2011:
      • cake eaten in France on Twelfth Night.
    • 23.
      • These two famous brands have strong common values: the share, creativity, quality and the requirement.
      • The seven silver bean and engraved emblematic symbols of Harley Davidson were hidden in the cakes but also proposed in box collector (symbolic co-branding)
    • 24. Existing Brand Alliances
      • Ford and Harley Davidson: Trucks (ingredient co-branding)
      • Ford and Harley-Davidson delivers a new standard of "custom cool," combining the smooth handling and legendary durability of America's best-selling truck with the authentic styling of Harley-Davidson.
    • 25. Existing Brand Alliances
      • Bell & Ross and Harley Davidson (ingredient co-branding)
      • Luxury watch maker Bell & Ross have teamed up with british bike customizers Shaw Harley Davidson (the most distributing) to create this custom chopper: the Bell & Ross inspired Nascafe Racer.
    • 26. Existing Brand Alliances
      • Gibson and Harley Davidson (joint communication)
      • Harley-Davidson and Gibson Guitar hosted  “Night of Custom”, celebrating the art of ‘customization.’
      • Bringing together music and motorcycles,
      • the event saw exclusive music performances
      • including a phenomenal set from British rock band
      • Feeder who headlined in front of an intimate
      • audience of 100 people
    • 27.
      • Similar to the Harley-Davidson motorcycle brand, no other musical instrument brand encapsulates the Rock and Roll culture like Gibson.
    • 28. Brand Extensions Failures
      • The Harley Davidson Cake Decorating Kit
      • It didn’t do well with its cake-decorating. Customers don’t like this type of product. They didn’t subscribe to this idea.
    • 29. Brand Extensions Failures
      • Perfume/ Shampoo / Shower gel
      • For lovers of the motorcycle, this was an extension too far.
      • Harley Davidson had fallen into the trap of thinking that more products equals more sales. And it usually does, at least in the short term.
    • 30.
      • But after, the image of Harley Davidson is less good.
    • 31. Brand Extensions Failures
      • Wine coolers
      • As you would expect, the bikers were not impressed. It was a bad idea, customers prefer beer Harley Davidson.
    • 32. Conclusion
      • The brand need to focus on the quality and not on cheap products: out of DNA.
      • Customers want coherence.
      • So the DNA is very important: it’s the heart.
      • The company need to do entension brand but to concentrate on the quality, like alliances brand in the european market successful association
    • 33.  
    • 34.
      • « Making real dreams caused by worldwide roads by offering our customers exceptionnal sensations. We nurture their passion for freedom so that they can express their mind. »
      Our Vision
    • 35.
      • « Providing bikes and all the world around through a faithful community »
      Our Mission
    • 36.
      • « Organizing a complete offer including not only a bike but also some clothes, accesories, routes and integration to a community  »
      Our Action
    • 37.
      • Profile ( 3 axis)
      • Gender: girls 10 boys 19
      • Age : students 22 older people 7
      • Nationality: foreigners 10 french 19 = 29
      • The profile of questioned people is more masculine, younger and quite well-balanced.
      Brand structure methodology
    • 38. Statiscal Analysis répétition % YES % NO % band 50 9 15 7 35 12 look 46 8 15 7 31 10 famous 30 6 8 4 22 7 bike 20 4 3 2 17 6 legend 22 4 4 2 18 6 leather jacket 22 4 4 2 18 6 USA 25 5 19 9 9 3 landscape 22 4 16 8 6 2 masculine 27 5 13 6 14 5 culture 21 4 12 6 9 3 travel 32 6 12 6 20 7
    • 39. Brand structure Periph ery CULTURE Band Look Famous Brand Travel Legend Bike Core USA LANDSCAPE MASCULINE
    • 40. proposed strategies
    • 41. Brand extensions
    • 42.
      • Extension in international work company / Television and video production company
      • ( TV shows, TV programs)
      • Potential in a customized channel or some biking entertainment shows:
      • The more possible opportunity is to sell motor shows.
      • Otherwise, we can maybe take over an existing motor channel ( AB moteur, motor TV).
      • Risk: very expensive.
    • 43.
      • Create a independent label of music
      • Potential to sign rock bands.
      • To help young and old bands.
      • To have very strong values: creativity and quality.
      • To endure
      • the Rock & Roll image.
    • 44. Core CULTURE Periph ery Band Look Famous Brand Travel Legend Bike Core USA LANDSCAPE MASCULINE
    • 45. Brand alliances
    • 46.
      • Restaurant chains for a symbolic co-branding
      • Potential in quality and close-to-greater major
      • routes restaurant chains:
      • We can collaborate with Buffalo Grill for a flavour roadtrip (bull, corn, eggs..) in Europe.
      • +
    • 47.
      • In USA and around the world, we can focus on Morton’s steakhouse:
      • a special meal Harley Davidson for Morton’s
      +
    • 48. Core Band Look Famous Brand Travel Legend Bike Core LANDSCAPE MASCULINE USA CULTURE Periph ery
    • 49.
      • Johnny Hallyday for a symbolic
      • co-branding (In France)
      • limited edition : To create new features,
      • new customization
      • Johnny reflects the image of the brand
      • because he has the physic and the music:
      • Rock & roll
    • 50. Core Band Look Famous Brand Travel Legend Bike Core LANDSCAPE USA CULTURE MASCULINE Periph ery
    • 51.
      • Lady Gaga for a symbolic co-branding
      • Joint communication is done, in her clip « Judas »
    • 52.
      • But create for this co-branding a new
      • motorcycle: more little, more sport
      • (like Buell motorcycles) for females and
      • young customers
      • With Lady Gaga: because joint communication was successful for the image of the brand and:
      • controversial image
      • rock’n’roll attitude
      • strong, popular image
      • american image
      • talented singer and creative person
    • 53.
      • To concentrate on a new segment: female, more young people.
      • Motorcycle: less expensive (like Buell)
      • Young image for Harley Davidson with this alliance.
    • 54. Core Periph ery LANDSCAPE USA CULTURE MASCULINE Look Band Travel Bike Famous Brand Legend
    • 55.
      • Joint communication with WWF
      • The World Wide Fund for Nature ( WWF ): an international non-governmental organization working on issues regarding the conservation, research and restoration of the environment.
      +
    • 56.
      • Communicate on the respect of the environment.
      • The nature is important for customers.
    • 57. Core Band Look Famous Brand Travel Legend Bike Core CULTURE USA LANDSCAPE MASCULINE Periph ery
    • 58. Recommandations
      • Expand european market
      • Made new alliances with some local bike companies to produce low cost motor bikes eg: India
      • Increase diversity programming (Tour, museum)
      • Explore opportunities for physical plant expansion into other geographical areas to increase labour pool (US + international)
    • 59. Conclusion
      • Harley- Davidson have to change American culture and helped the future of motorized vehicles.
      • Must implement latest technology & facilities.
      • Loyal customers are not sufficient for company to survive.
      • “ it’s a journey but not a destination”
    • 60.
      • Thanks for paying attention

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