1. Does this sound remind
you of any particular
bike??

3. History
 Founded in 1903 in Wisconsin, United
States by William S. Harley Arthur
Davidson &William A. Davidson
 Leading American manufacturer of
Heavy weight motorcyles
 After the World War II, It was the
leading manufacturer of motorbikes
market in the US and had monopoly in
the market due to closure of its main
rivals
 Sells through over 1500 dealers
worlwide

4. MISSION
“We fulfill dreams through the experience of motorcycling, by providing to
motorcyclists and to the general public an expanding line of motorcycles
and branded products and services in selected market segments”

5. A Biker’s Sign
• Synonymous to:
– adventure
– attitude
– freedom
– individualism
“I would rather push a Harley than drive a
Honda”

6. ADVERTISEMENT

7. Harley Experience !!

8. Harley Owner’s Group (HOG)

9. Harley Owner’s Group (HOG)

10. Product Extension

11. Competitive Position
Europe Market
Share - 9%
Asia Pacific
U.S Market Share Market Share
48% 25.8%

12. Describe the HD’s general pricing strategy.
What does the company’s positioning have
to do with its pricing strategy?
•Harley Davidson doesn’t sell you a bike, they sell you experience.
•Harley Davidson quickly learned they could not compete with the foreign
competitors on price.
•Therefore they developed a strategy of value over price.
•Japanese manufacturers used plastic while Harley used steel, which is able to be
rebuilt.
•Harley was careful not to exceed demand in production of their motorcycles.
Currently, people must wait six to eighteen months for a new motorcycle and the
price for a year-old Harley is 25% to 30% higher than a new one.
• By not being able to meet demands, an attitude of must-have has developed.
•Communication through pricing – a premium brand.

13. Should Harley alter its price, given
strong price pressures from rivals?
Prices of Harley Davidson
Prices of rivals
SPOSTER 6,95,000- 11,95,000
KAWASAKI NINJA 2,70,000
DYNA 13,95,000-15,45,000
SUZUKI HAYABUSA 12,50,000
SOFTAIL 18,45,000-19,45,000
DUCCAITTI 14,09,705
V-ROD 18,95,000
YAMAHA YZF 12,50,000
TOURING 20,45,000-21,95,000
CVO 34,95,000

14. Reasons for not altering its price even though there is
pressure from rivals
 Brand Dilution
 It is positioned as Catering to the niche market of affluent customers
 Brand association
 Market leader in cruiser bikes in America
 Strong brand name
 Customization of bikes this is Harley Davidson's major revenue maker
 Rivals have competitive pricing
 Harley Owner’s Group

15. Recommendations for reducing
price pressure from rivals
 Plan to assemble the bikes in Asian countries so starting a new
plant in India can solve this problem. Negotiations with the
Government can solve these problems.
 Harley-Davidson has a good brand name so it’s easy for them
to eat up the competitor market share if they can provide
some more customer benefits
 Expand the HOG (Harley Owners Group) to Asian countries, if
the company can provide the customer satisfaction that they
are providing to the U.S customers to the Asian customers they
can increase the sales.

16. Cont…
 Younger generation and female(11%) are now
coming to this segment so expand the motor cycle
segments to younger generation and females.

17. What should HD do to improve
its market share in Europe?

18. Recommendations
• HD is not available in some European
countries like Austria , Spain , Sweden etc
• There is no customization facility available in
Europe which are there in U.S like alloys,
customized paint , customized paint, stage kit
etc
• No events are organised in Europe as
compare to events are organised in U.S such
as men’s motorcycle boot camp , Harlistas ,
Iron elite etc
• All the products of HD are not available in
European countries such as TRIKE , and some
variation of sportster , touring etc

19. Recommendations
• They need to more advertise but not to be
advertise as an American biking icon because it
depicts that it is only for Americans
• They need to make changes in their product
according to Europe culture like custom
American chopper producers such as Big Dog
Motorcycles and American Iron Horse are
promoted as All-American bikes
• HD bikes create so much noise pollution that it
create a negative image of product in mind of
some Europeans
• As the demand for HD bikes increasing in Europe
market it increased by 22.7% in last year they
should set up a new assembly centre in Europe it
will also helps in decreasing cost of production

20. What can Harley do to justify a
near double Price tag an
create buyers interest in India?

21. Reason For the Double Price
• Imports its bikes into India as
Completely Built Units (CBU’s), paying
60 % import duties for the bikes and 30
% local taxes which double the MRP
• So for eg. Ultra Classic Electra
Glide(CVO) which costs USD 35,999
(INR 16,02,000) in US, costs INR
34,95,000 in India

22. Harley Davidson in India
• “We are not a motorcycle company. We are a culture on two wheels. And
we want to convert dreams of owning a Harley into a reality for Indian
motorcyclists.”
• Strong motorcycling culture already present
• Harley Owners Group (HOG)- initially, these rides in India were coordinated by
the company, but now, these events are coordinated by dealers themselves
• Rock Riders mates music with Harley-Davidson motorcycles(thoroughbred
biker’s taste in music in Rock).
• The Indian customer belongs to a state of mind rather than a particular
demographic profile.
• India-specific model in consideration(could displace a lower capacity than
the 883)
• Targeting younger riders with offerings like the Forty-Eight, Iron 883, and Cross
Bones. These bikes have the (retro styling popular with younger riders today)
• The customization programme will help the customers make their bike unique
(Whatever is available to Harley owners abroad in terms of accessories and
customized parts is also available to the Indian buyer)
• Boot Camps, Harley-Davidson(invites riders to come and taste life aboard its
thick two-wheeled slice of Americana)
• Breakthrough initiatives - Boot Camps, Founders' Ride, Harley Rock Riders and
Freedom Film Festival
• Income Alliances with banks for financing (Down payment + EMI’s)

23. Future Plans of the Company
• Planning to assemble its bikes in India after
countries like Malaysia, Brazil, Indonesia and
Singapore, to lower its prices and boost sales.
• The company could bring this Figure down to
30 % if it starts to assemble its bikes from
Completely Knocked Down (CKD) kits
sourced from abroad.
• Product development centre for the design
and development of bikes for the Indian
market.
• The company is also looking to start rental
services of its bikes through its dealer network
by the end of next year

24. The Indian Scenario
• To be the biggest market in Asia in the next ten years
• High on Harley’s priority list because of its burgeoning
middle-class population and desire for American
products.
• Premium bikes to account for 1-2% of total motorcycles
sales in 6-8 years (Annual motorcycle sales currently
stand at 12 million)
• Potential buyers
– Upgraders from smaller motorcycles , mostly young working
professionals with a high disposable
– older (40 and above) born again bikers who had a passion
for bikes in their younger days
– Diehard believers in SUVs(Another symbol of adventure
and escape into the great outdoor) SUVs were considered
outdoor vehicles. Now the big bikes are becoming the
'getaway vehicles’

25. Recommendations
• Bikes from other manufacturers don’t
have the heritage that a HOG does,
which gives Harley a leg up and can help
to justify its higher price points.(Attached
Class)
• Brand Ambassador( in harmony with the
brand image, sophisticated, affluent,
raw)
• India Specific Models (Price Rationalizing)
• Focus campaigning/advertising
(Marketing Niche-Lifestyle – class
focused)

26. Thank You