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