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branding strategy of Harley Davidson


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Published in: Business, Automotive

branding strategy of Harley Davidson

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