1. Harley Davidson
Market Entry
Strategies
In
India
Live to Ride , Ride to Live
2. PRESENTED BY :-
DHARNA JOSHI
JAYA JENNIFER
JOSHI
HARSH YADAV
SWAYAM DATTA
PANKAJ MUNDRA
SAURBH RATHORE
3. Overview
Indian Motorcycle
Industry
Introduction of H-D
H-D’s struggle
Marketing strategies
to enter India
Current scenario in
India
Future Aspect
4. Indian Motorcycle Industry
Shift from other two-wheelers like
scooters and mopeds to Motorcycles
due to rise in income levels
Other drivers- Advanced technology,
ability to perform on rough roads, new
brands, auto financing and service
networks
Major driving force is- Economic
Development of the economy
Market players have reduced prices,
introduced freebies and improved
brands- wide choices
5. Emerging Market
The ‘First New Motorcycle Buyer’ is the
largest market for motorcycles
Higher engine capacity is the criterion for
future purchase
‘Auto Mission Plan 2006-16’ by Indian
government to make India a global
production hub
Reduction in the excise duties is also one
of the agendas
6. Introduction
o Harley-Davidson often
abbreviated H-D or Harley is
an American motorcycle
manufacturer. Founded in
Milwaukee, Wisconsin, during
the first decade of the 20th
century.
o The company sells
heavyweight(over 750 cc)
motorcycles designed for
cruising on the highway.
oSymbol of ‘rugged
individualism, freedom and
rebellion’
7. Struggle in India
H-D attempted to enter India in September
2005 because of growing motorcycle
market at a faster pace
Through Sourcing route
Plan was hampered due to high import
duties and stringent emission norms in
2005
H-D tried to negotiate 1) Fresh issuance of
licenses for opening branches of ICICI,
SBI and BOB in US 2) to start the import
of mangoes banned earlier
8. Marketing Strategy in India
Post liberalization, Foreign investors can enter in the
form of liaison office, in the form of joint venture and
a wholly owned subsidiary.
H-D opted for Wholly Owned Subsidiary option-to
attract a major initial investment for infrastructural
development
Strong inclination to Source Route
9. 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.
10. Identifying the Customers
Age 27-35 Years
Income 20-22 lakhs
Sportster 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
11. H-D’s Vision for India
According to Industry watchers, the Harley bikes
would range between Rs 4 lakhs to Rs 14 lakhs in
India, including the 60 per cent import duty. "As
India's economy takes bigger strides, a younger
population with expendable income are embracing
luxury as never before.
Maybe 10 years out it will be more fertile, it’s a hope
and prayer at this moment.
12. 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.
13. Contd.
Loyal Biking Community:
One must drive lessons from social networking
websites. Invites for friends, recommend Harley
Experience to a friend.
Festive season:
Harley Davidson can organize parties that leave
an impression on the attendees. Few of these
attendees will certainly be induced into buying a
Harley if they are made to engage with the
Brand while attending these parties.
15. Future Aspect
It would prove favorable because of population
H-D has to position itself as a status symbol, as an
expensive accessory
H-D is likely to face mechanical problems which
would require careful maintenance
Major problem can be fuel efficiency as Indian
customers are mileage conscious.
Records in Europe say that it has not done well
on curve roads
16. Continued.
Major constraint will be competition from Yamaha,
Honda and Suzuki
Very high price also hinders sales- the cheapest H-D
costs 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. 93,200
Royal Enfield’s price may hinder H-D’s business as it
did to BMW-Hero joint venture
Competitor Honda would do well because it has a wide
network of dealers and an on-going business would
also sell high end bikes in good numbers
17. Current Scenario in INDIA
Manufacturing Plant :- Rewari in Khushkera (Rajisthan)
Assembly plant
Import duties reduced to 30%
Headquarters :- Gurgaon Haryana
Founded :- 2009
9 outlets
