A look at one of the most successful bike brands, Harley Davidson

2. P R E P A R I N G F O R T H E N E X T C E N T U R Y
A D I T Y A A S H I S H J I B I N P A Y A L

3. H A R L E Y D A V I D S O N P R E P A R I N G F O R T H E N E X T C E N T U R Y
T H E H A R L E Y S T O R Y

4. 1 A LEGENDARY BIKE

5. Presentation Title
Your company information
A M E R I C A N M O T O T C Y C L E M A N U F A C T U R E R
750 CC A N D A B O V E M O T O R C Y C L E S
Y E A R OF F O U N D I N G
P L A C E OF O R I G I N
C U L T S T A T U S : A L L A M E R I C A N B I K E

6. M O R E T H A N A C E N T U R Y O F L E G A C Y
C O N S T A N T I N N O V A T I O N
H I G H B R A N D L O Y A L T Y
M A R K E T L E A D E R : U S H E A V Y W E I G H T M O T O R C Y C L E S
E P I T O M E O F R A W P O W E R

7. 2
T H E F O U N D E R S

8. W I L L I A M H A R L E Y
A R T H U R D A V I D S O N
W I L L I A M D A V I D S O N
W A L T E R D A V I D S O N

10. 3
H I S T O R Y M A T T E R S

11. THE WORLD WARS
•F E A T U R E D IN WW 1 / WW 2/ GREAT DEPRESSION
•WW1 : 15000 BIKES TO US ARMY PROVIDED
•ONE OF THE COMPANIES TO SURVIVE THE GREAT DEPRESSION
•90000 BIKES PROVIDED IN WWE
•MILITARY SPECIFIC VEHICLES
•RECEIVED 2 NAVY ‘E’ AWARDS FOR EXEMPLARY WAR SERVICE

17. 4
DIFFERENTIATE TO DOMINATE

18. “four wheels move the body but two wheels move the soul”
-
The Eternal Biker

19. •B I K I N G IS A PASSION
•AN EXPRESSION OF FREEDOM
•HARLEY CAPTURES THE ESSENCE OF BIKING LIKE NO OTHER
•LEGENDARY : CULT : EPIC : FEW WORDS TO DESCRIBE HARLEY
•QUALITY : IMAGE : UNIQUENESS : 3 PILLARS OF HARLEY’S SUCCESS
•HARLEY CARRIES THE HARLEY BADGE : HARLEY LOOK : THE HARLEY SOUND

20. OWNING HARLEY IS A MATTER OF PRIDE
THE BIKE OF THE REBEL
HARLEY HAS BECOME A LEGACY, A HEIRLOOM OF SORTS
AN ALL AMERICAN TREASURE TO BE CARRIED FROM ONE GENERATION TO OTHER
SUMPTUOUS DESIGN
V TWIN ENGINE
RAW POWER
A SYMBOL OF QUALITY : FREEDOM AND NATIONAL PRIDE

21. 5 THE EVOLUTION

24. 5
SAMURAI SIEGE : THE JAPANESE CHALLENGE

25. •1950’S : HONDA SMELLS BLOOD
•UNTAPPED CUSTOMER BASE OF OLDER MEN AND YOUNGER WOMEN
•HONDA RELEASES FAMILY ORIENTED ADS
•SWEET : NICE : PLEASANT : STABLE APPROACH
•FASTER , LIGHTER AND LESS EXPENSIVE BIKES
•50CC – 250 CC BIKES RELEASED
•YAMAHA : SUZUKI : KAWASAKI FOLLOWED SUIT

26. •JAPANESE MADE GRADUAL INROADS
•DEMOGRAPHIC CHANGE : FIRST TIME BUYERS FAVORED JAPANESE
•MASS PRODUCTION : EFFICIENT
•CONSTANT IMPROVEMENT : REDESIGN
•REDUCTION IN TIME TO INTRODUCE NEW MODELS
•SOON JAPANESE ACCOUNTED FOR 85 % US BIKE SALES
•HARLEY PUSHED TO NICHE CATEGORY

27. •HARLEY ACCQUIRED BY AMF
•HARLEY PANICS : TRIES TO IMITATE JAPANESE MODEL
•LESS SKILLED WORKFORCE ADDED
•QUALITY COMPROMISED FOR QUANTITY
•AD POSITIONING TWEAKED : THUMBS DOWN BY TRADITIONAL BUYERS
•EXISTING BUYERS ALIENATED
•HONDA UPS THE ANTE : INTRODUCES GOLDWING 1000 CC
•HARLEY LOSES OUT IN HEAVYWEIGHT CATEGORY

28. 6
LEARN FROM THE ENEMY

29. •HARLEY ADJUSTS ITS SIGHTS
•REDEFINES GOAL AS “SURVIVAL”
•EXECUTIVES VISIT HONDA FACTORY : LEARN THE (JIT) METHOD USED BY HONDA
•HARLEY’S MULTIMILLION DOLLAR INVENTORY SYSTERM INEFFECTIVE
•HARLEY’S PRODUCTION SYSTEM FLAWED
•HARLEY REDESIGNS : ADOPTS PRODUCTIVITY TRIAD
•SEEKS GOVT SHIELD FROM JAPANESE AMBUSH

30. 7
THE COUNTER PUNCH

31. •PRODUCTIVITY TRIAD WORKS
•INVENTORY TURN INCREASED TO 17 TIMES/YEAR
•PRODUCTIVITY UP BY 50 %
•WIP REDUCED BY 75 %
•US REVENUES INCREASE BY 80 % : GLOBAL INCREASED 1.7 TIMES
•MARKET SHARE IN HW SEGMENT INCREASED BY 97 %

32. •1989 : HARLEY GOES PUBLIC THROUGH A WELL RECEIVED IPO
•LEADERSHIP INSTITUTE INTRODUCED
•ORGANIZATION RESTRUCTURED
•REWARDS/INCENTIVE SYSTEMS PUT IN PLACE
•HOG : HARLEY DAVIDSON OWNERSHIP GROUP INTRODUCED
•HOG, WITH 900000 MEMBERS IS THE LARGEST COMPANY SPONSORED CLUB

33. •WOMEN RIDERS WERE CATERED WITH “THE WOMEN OF HARLEY” GROUP
•NEW CEO JEFFREY BLEUSTEIN COMES ON BOARD IN 1997
•HARLEY TRANSFORMS WITH NPD, UPGRADED TECHNOLOGY
•BETTER DEALER NETWORK
•ANNUAL REVENUES GROW TO $5 BN : NET INCOME T0 $890 MILLION IN 2004
•2005 :BLEUSTEIN RETIRES AS CEO : STAYS AS CHAIRMAN

34. 8 THE ROAD AHEAD

35. •MARKET FOR HARLEY BIKES MATURING
•CORE CUSTOMER BASE : BABY BOOMERS ARE AGEING
•YOUNGER GENERATION NOT CONNECTING WITH HARLEY
•NEEDTO FACE JAPANESE AUTOCORPS HEAD ON
•STRONGER THE BRAND WITH THE OLDER GENERATION, WEAKER IT IS WITH THE YOUNGER LOT
•HARLEY NEEDS TO SHIFT DEMOGRAPHICS

36. •HARLEY ACCQUIRES BUELL TO CATER TO YOUNGER BUYERS
•V-ROD AND NEW SPORTSTER LINE UNVEILED
•V-ROD IS A SHIFT FROM TRADITION FOR HARLEY WITH ITS LIQUID COOLING
•SPORTSTER REDESIGNED WITH LOWERED PRICES
•MORE FOCUS ON WOMEN RIDERS
•MARKETING THROUGH EVENTS AND MEDIA

37. 9
INNOVATIONS

44. 10
CONCLUSION

45. •HARLEY NEEDS TO ALTER ITS DEMOGRAPHICS
•NEEDS TO CATER TO YOUNGER LOT
•BUT WITHOUT LOSING ITS CORE MARKET
•NEED TO REWORK COSTS WITH DEALERS FOR ITS CUSTOMER PROGRAMS

47. 1
THE BRAND EXCELS IN DELIVERING THE BENEFITS CUSTOMERS TRULY DESIRE

48. •HARLEY COMMANDS EXCEPTIONAL BRAND LOYALTY
•EVERYTHING ABOUT HARLEY : THE BIKE : THE PERFORMANCE : THE STYLE IS A CUSTOMER’S PRIDE
•LEGACY : LEGENDARY POSITIONING GIVES CUSTOMERS A SENSE OF ESTEEM
•FANTASTIC INNOVATIONS LIKE RIDER’S EDGE, RENTAL BIKES, RALLIES
•HOG/ THE LADIES OF HARLEY BRING IN A SENSE OF COMMUNITY
•SHARES THE PASSION FOR BIKES AND BIKING
9/10

49. 2
THE BRAND STAYS RELEVANT

50. •YOU CANNOT THRIVE FOR A CENTURY WITHOUT BEING RELEVANT
•HARLEY HAS ALWAYS BEEN INNOVATING RIGHT FROM ITS V TWIN ENGINE
•A GLUT IN BETWEEN WHERE HARLEY STRUGGLED WITH RELEVANCE
•STRONG COMEBACK WITH V-ROD /SPORTSTER
•ACCQUISTION OF BUELL
•CATERING TO WOMEN BIKERS
8/10

51. 3
PRICING STRATEGY IS BASED ON CUSTOMER’S PERCEPTIONS OF VALUE

52. •HARLEY WAS ALWAYS A PREMIUM SEGMENT BRAND
•THE VALUES IT PROVIDES OUTWEIGHS THE PRICE
•HARLEY HIGH ON SENSORIALS AND HIGH SELF ESTEEM IT GIVES TO CUSTOMERS
•ONLY IN 2004 , TO CATER TO THE YOUNGER AND NON TRADITIONAL MARKET , PRICES WERE REDUCED TO $6500
•THIS WAS A BID TO CAPTURE THE ENTRY LEVEL, LOWER PRICED MARKET
•RENTAL PROGRAMS INTRODUCED FOR EASY BUY
9/10

53. 4
THE BRAND IS PROPERLY POSITIONED

54. •POSITIONING IS HARLEY’S GREATEST STRENGTH
•ALL AMERICAN : RAW POWER : MACHO BIKES
•CAPTURES THE PASSION OF BIKING/SENSE OF FREEDOM
•THE BIKE FOR THE REBEL : ROCKSTARS, HOLLYWOOD REBELS
•ADS POTRAYING LEATHER CLAD RIDERS , MILITARY RIDERS GAVE AN IMAGE OF TOUGHNESS
10/10

55. 5
THE BRAND IS CONSISTENT

56. •HARLEY HAS ALWAYS BEEN CONSISTENT WITH ITS POSITIONING
•THE MARKETING CAMPAIGNS POTRAYED THE TOUGHNESS
•HOLLYWOOD REBELS LIKE BRANDO REPRESENTED HARLEY
•THE LOOK : THE SOUND : THE CELEBRITIES : EVERYTHING ABOUT HARLEY EXHUDES RAW POWER
•LEATHER JACKETS : ACCESSORIES : HOG Etc POTRAY GRIT AND POWER
•9/10

57. 6
THE BRAND PORTFOLIO AND HIERARCHY MAKES SENSE

58. •HARLEY HAS A WIDE RANGE OF BIKES
•CATERS TO VARIOUS SEGMENTS RANGING FROM BABY BOOMERS, WOMEN AND YOUNGSTERS
•UMBRELLA BRAND HD IS THE BLOCKBUSTER BRAND
•V-ROD /SPORTSTERS CATER TO THE NEWER GENERATION
•SPORTSTERS PRICED LESSER TO CAPTURE NON TRADITIONAL MARKETS
9/10

59. 7
THE BRAND MAKES USE OF AND COORDINATES A FULL REPERTOIRE OF MARKETING ACTIVITIES TO BUILD EQUITY

60. •MARKETING MAJORLY THROUGH EVENTS AND MEDIA
•APT USE OF CELEBRITIES
•HOG RIDES, HD NIGHTS, RIDE OF A LIFETIME, BOOT CAMPS
•RELEVANT ADVERTISEMENTS
•HARLEY CAMPAIGNS ARE HANDS ON WITH HIGH CUSTOMER PARTICIPATION
•SHORT FILMS , PROMOS, ROCK EVENTS
9/10

61. 8
THE BRAND MANAGERS UNDERSTAND WHAT THE BRAND MEANS

62. •THE HARLEY MANAGERS ALWAYS UNDERSTOOD THE CORE VALUES OF HARLEY
•UNTIL 80s THE BRAND WAS CONSISTENT IN QUALITY
•POST AMF , THE BRAND SUFFERED IN QUALITY
•TEERLINK BECAME CFO AND HE BEGAN THE RESURGENCE
•SINCE THEN BLEUSTEIN FOLLOWED SUIT WITH RETAINING THE EPIC HD QUALITY
8/10

63. 9
THE BRAND IS GIVEN PROPER SUPPORT AND ITS SUSTAINED OVER THE LONG RUN

64. •APART FROM ITS BRILLIANT PRODUCT, HD IS SUPPORTED WITH MANY INITIATIVES
•HOG CLUB
•THE HARLEY LADIES GROUP
•LIVE EVENTS
•HOG NIGH OUTS, BIKE TREKS
•HOG MEMBERSHIP 900000
10/10

65. 10
THE COMPANY MONITORS THE SOURCE OF BRAND EQUITY

66. •BRAND EQUITY IS EVERYTHING IN HD
•MANAGERS MAKE SURE THE BRAND EQUITY NEVER FADES
•CONSISTENT POSITIONING AND BRANDING HELPS IN CONSISTENT BRAND EQUITY
•INNOVATIVE CAMPAIGNS HAS STRENGTHTENED THE BRAND EQUITY
•HOG CLUBS, SOCIAL GROUPS , EVENTS MAKE SURE BRAND EQUITY IS NEVER LOST OUT
9/10