Harley Davidson Market Entry Strategies In IndiaLive to Ride , Ride to Live
PRESENTED BY :- DHARNA JOSHI JAYA JENNIFER JOSHI HARSH YADAV SWAYAM DATTA PANKAJ MUNDRA SAURBH RATHORE
Overview Indian MotorcycleIndustry Introduction of H-D H-D’s struggle Marketing strategiesto enter IndiaCurrent scenario inIndia Future Aspect
Indian Motorcycle IndustryShift from other two-wheelers likescooters and mopeds to Motorcyclesdue to rise in income levelsOther drivers- Advanced technology,ability to perform on rough roads, newbrands, auto financing and servicenetworksMajor driving force is- EconomicDevelopment of the economyMarket players have reduced prices,introduced freebies and improvedbrands- wide choices
Emerging MarketThe ‘First New Motorcycle Buyer’ is thelargest market for motorcyclesHigher engine capacity is the criterion forfuture purchase‘Auto Mission Plan 2006-16’ by Indiangovernment to make India a globalproduction hubReduction in the excise duties is also oneof the agendas
Introductiono Harley-Davidson oftenabbreviated H-D or Harley isan American motorcyclemanufacturer. Founded inMilwaukee, Wisconsin, duringthe first decade of the 20thcentury.o The company sellsheavyweight(over 750 cc)motorcycles designed forcruising on the highway.oSymbol of ‘ruggedindividualism, freedom andrebellion’
Struggle in IndiaH-D attempted to enter India in September2005 because of growing motorcyclemarket at a faster paceThrough Sourcing routePlan was hampered due to high importduties and stringent emission norms in2005H-D tried to negotiate 1) Fresh issuance oflicenses for opening branches of ICICI,SBI and BOB in US 2) to start the importof mangoes banned earlier
Marketing Strategy in IndiaPost liberalization, Foreign investors can enter in theform of liaison office, in the form of joint venture anda wholly owned subsidiary.H-D opted for Wholly Owned Subsidiary option-toattract a major initial investment for infrastructuraldevelopmentStrong inclination to Source Route
Objectives To gain share in the Indian Market and be revered as a brand. To gain market share by creating and meeting needs of a ‘Harley Experience’ in the Indian Market. To create Loyal Harley Biker’s Community in India.
Identifying the Customers Age 27-35 Years Income 20-22 lakhsSportster Series- XL Behaviour-Speed Enthusiast,Style 883L Oreiented XL Age 27-35 Years 1200N Income 20-22 lakhs Behaviour-Sport Lovers,Street Bikers Age 27-35 Years Income 24-26 lakhs XL Behaviour- 883R Dreamers,Experience Riders Age 27-35 Years XL Income 24-26 lakhs 1200 X Behaviour-Dreamers,Experience Riders
H-D’s Vision for IndiaAccording to Industry watchers, the Harley bikeswould range between Rs 4 lakhs to Rs 14 lakhs inIndia, including the 60 per cent import duty. "AsIndias economy takes bigger strides, a youngerpopulation with expendable income are embracingluxury as never before.Maybe 10 years out it will be more fertile, it’s a hopeand prayer at this moment.
Market Targets Quality Lead Generation: Engage the prospective customers at places they are likely to visit: Auto-Expo, Yacht Clubs, Golf Clubs, Hard Rock Café’s and then collect contact information there. Hospitality Segment: Hoteliers, Resort owners in tourist destinations are always looking to add new luxury items into their fleet for their clients to indulge into leisure.
Contd.Loyal Biking Community:One must drive lessons from social networkingwebsites. Invites for friends, recommend HarleyExperience to a friend.Festive season:Harley Davidson can organize parties that leavean impression on the attendees. Few of theseattendees will certainly be induced into buying aHarley if they are made to engage with theBrand while attending these parties.
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Future AspectIt would prove favorable because of populationH-D has to position itself as a status symbol, as anexpensive accessoryH-D is likely to face mechanical problems whichwould require careful maintenanceMajor problem can be fuel efficiency as Indiancustomers are mileage conscious.Records in Europe say that it has not done wellon curve roads
Continued.Major constraint will be competition from Yamaha,Honda and SuzukiVery high price also hinders sales- the cheapest H-Dcosts 0.4 million in India- cost of two Maruti 800 cars.Competitor Royal Enfield bike is not that expensive.Its costliest bike is of rs. 93,200Royal Enfield’s price may hinder H-D’s business as itdid to BMW-Hero joint ventureCompetitor Honda would do well because it has a widenetwork of dealers and an on-going business wouldalso sell high end bikes in good numbers
Current Scenario in INDIA Manufacturing Plant :- Rewari in Khushkera (Rajisthan) Assembly plant Import duties reduced to 30% Headquarters :- Gurgaon Haryana Founded :- 2009 9 outlets