harley davidson history, pricing, STP, HOG
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Harley dividson
1. “You don't see people tattooing Yamaha on
their bodies”
“Its all about independence, freedom,
and power”
“Four wheels move the body,
Two wheels move the soul”
“Its much more than a
machine”
4. Is to fulfill the dreams of motorcyclists and the
general public and to expand the line of
motorcycles and branded products and services
in their selected market segments.
Is to improve its relationships with stakeholders
(customers, suppliers, employees, shareholders,
government, and society).Harley Davidson believes
the key to success is to balance stakeholders’ interests
through focus on value-added services.
5. 1901: William Harley and Arthur Davidson started company
1903: They made available to the public the first production Harley
Davidson Motorcycle. Three were built and sold.
1904-06: Production increased to eight motorcycles. First factory was built
on Chestnut street (Harley Davidson’s headquarter today.)
1907: The company was officially incorporated.
1918: Almost half of all Harley Davidson motorcycles produced are sold for
use by the U.S. military in World War I (20,000 estimated used by the war’s
end).
1920: Harley Davidson is the largest motorcycle manufacture.
1933: An art-deco “eagle” is painted on all gas tanks.
1945: World War II ends and HD has produced almost 90,000 models for
military use.
1969: HD merges with American Machine and Foundry Company (AMF), a
longtime producer of leisure products.
6. 1981: Vaughn Beals, head of HD, and 13 other executives conducted
a leveraged buyout of the company for $65 million.
1985: Citicorp refused to lend HD any more funds, 4 hour.
1993:
Acquired 49% interest in Buell Motorcycle Co. , a
manufacturer of sports performance motorcycles. Buell’s mission
was to develop and employ innovative technology to enhance “the
ride” and give owners an experience no other brand could provide.
1995: HD acquired Eagle mark Financial Services, Inc. They
provided credit to product manufacturers , their dealers, and
customers in U.S. and Canada.
1996: They concentrate their financial and human resources on its
core motorcycle business.
2000: Several models were introduced. First female racer added to
Harley Davidson racing team in an effort to capture female support.
2007: Harley Davidson Financial Services financed 55% of new HD
motorcycles retailed by independent dealers in the U.S.
7. HARLEY DAVIDSON AS A BRAND
Long-term relationships with the customers
Harley Davidson – Brand Values
Freedom – Go wherever you want to, whenever
you want to.
Authenticity – Noted for the tradition of heavy
customization, Oldest and quality name in
manufacturing bikes.
Community Building– HOG has 1.4 million
members, Ride Planner to plan trips, H-D Photo
Center for posting photos of memorable trips.
8. Rituals
Community festivals and monthly or annual
rides/events are conducted regularly, buttons and pins from
an activity/event are worn on jackets.
Masculinity :
Unique sound of the exhaust, association
with icons in films.
Toughness : Rugged heavy design and look of the bikes.
Brand Extension.
Brand over-extension.
9.
10. Retails sales : 70,517 vehicles
Share Price : $ 67.44
Total Income : $ 623,925,000
20. STRENGTHS
Domestic and International Market share
Product quality
Strong brand loyalty
H.O.G.s (Harley Owners Group) &
B.R.A.G. (Buell Riders Adventure Group)
Strong distribution network
21. WEAKNESS
Harley Davidson does not emphasize
price in it’s product
Harley Davidson has had difficulty
gaining market share in some
European countries.
22. OPPORTUNITIES
The international heavy weight market is growing and
almost as large as the U.S. heavyweight market.
Women and younger riders are increasingly becoming
interested in bikes – Japan has more female H.O.G. members.
Alliances with other automobile manufacturers are possible.
Industry registrations of domestic heavyweight motorcycles
are increasing.
Customers value quality parts and accessories.
23. THREATS
Harleys ongoing capacity restraints caused a shortage of supply and a
loss in domestic market share in recent years.
Harleys average buying age is 46 years old and increasing.
Some competitors of Harley Davidson have larger financial and
marketing resources and they are more diversified.
Shifts in buyer needs and tastes.
Customer loyalty in European and Asia countries.
Costs could become expensive from international importing – for
example – in India 60% tax on total cost for importing an automobile
and 30% road tax.
24. What makes buyers so loyal ?
What is the reason behind high price ?
Do you know that many people buy H-D just to join
in H.O.G ?
1000000 members in H.O.G
What is this H.O.G ?