Harley Davidson Strategy – Marketing Strategy of Harley Davidson: Harley Davidson, a cult brand that employs 6500+ people, is the leader in heavy-weight motorcycles worldwide thanks to its rich design and innovative market strategies. Its heritage of 120 years and its socio-cultural environment is shaping the company’s offerings across all regions.
One little-known fact about Harley Davidson’s business is that it operates primarily in two segments, Harley Davidson Motor Company(HDMC) and Harley Davidson Financial Services(HDFS). HDMC sells Harley motorcycles around the globe, but HDFS provides retail and wholesale services, as well as insurance-related services, to only the United States & Canada.
Harley Davidson At A Glance – Marketing Strategy of Harley Davidson
Company : Harley-Davidson Inc
CEO: Jochen Zeitz
Founder: Arthur Davidson | Walter Davidson | William Harley | William Davidson
Year founded: 1903, Milwaukee, Wisconsin, United States
Headquarters: Milwaukee, Wisconsin, United States
Annual Revenue: US$4.05 billion
Profit | Net income: US$2.3 billion
Number of employees : 5,000
Products & Services: New Motorcycles | Sport. Sportster® S | Cruiser | Adventure Touring | Grand American Touring | Trike | Electric
Harley Davidson Competitors
Competitors: Triumph Bikes | Yamaha Motorcycles | Ducati | Royal Enfield | Victory Motorcycles | Viper Motorcycle | Polaris | Kawasaki
Harley Davidson Fun Facts: The first Harley-Davidson motorcycle was equipped with an engine of about 2 horsepower. It could not climb the hills around Milwaukee (the production was there) without pedaling.
Marketing Strategy of Harley Davidson
Harley Davidson’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Harley Davidson? Let us discuss.
Segmentation, Targeting, Positioning – Harley Davidson Marketing Strategy
Harley employs psychographic segmentation to meet the evolving needs of consumers. This is mainly because Harley is a lifestyle company. A Harley is a motorcycle you choose because you enjoy riding and because you love premium motorcycles. This unique and innovative design has made Harley motorcycles very popular all over the world.
A company must target the market in this highly competitive market. Harley Davidson uses the targeted strategy.
Harley Davidson’s positioning is very powerful in the minds of consumers. It is a premium motorcycle brand that is well-known for its advanced technology as well as its design. This positioning has been achieved by Harley Davidson through the release of hit after hit. Each of these products is exceptional and beloved for the customization they offer.
Harley Davidson Mission Statement
“It’s our purpose and passion; we bring a commitment of exceptional customer experience to everything we do- from the innovation of our products to the precision of our manufacturing- culminating with our strong supplier and dealer networks.”
Harley Davidson Vision Statement
“Harley-Davidson, Inc. is an action-oriented, international company” a leader in its commitment to continuously improve our mutually beneficial relationships with stakeholders
Harley Davidson Tagline
“American by birth, Rebel by choice”.
Competitive Advantage – Harley Davidson Marketing Strategy
The company has seen a broad product portfolio that includes Harley Street in the lower segment and cruisers & touring bikes at the upper end. This has allowed it to increase its sales. These products have also helped to build a premium brand image on the market.
Harley Davidson’s competitive advantage is customization and accessories. Harley-riding enthusiasts love their Harleys. Many customizations can be made to a Harley from the handle and the stand to the overall appearance, including accessories.
Through its Harley Owners Group (HOG), Harley has fostered a rich culture among bikers. This group holds rallies regularly where Harley owners can meet and share their passion for bikes.
Harley began focusing on emerging and developing markets to reduce its dependence on developed countries, which makes up the bulk of its sales. In 2014, 60% of Harley’s sales were generated in the U.S.
BCG Matrix – Harley Davidson Marketing Strategy
The standard, Touring and Cruiser models of Harley Davidson are for people who value customization and interstate travel. This is why these models are Stars in the BCG matrix because of their high acceptance in different markets.
The sportbike is technologically advanced, and the dual range of bikes is questionable as there are many players in these segments and Harley is unable to differentiate its offerings from those of other competitors.
Distribution Strategy – Harley Davidson Marketing Strategy
Harley sells its bikes through independent dealers and showrooms around the globe. HDFS supports premium dealers to help them run their business efficiently and manage operational costs.
The company can penetrate certain markets through non-traditional outlets like ARO’s (Alternate Retail Outlets) and SRO’s, which are seasonal retail outlets. These outlets serve as an extension of main dealerships.
Brand equity – Harley Davidson Marketing Strategy
The 279th ranked brand is Harley Davidson. The company promotes a wide motorcycling experience by organizing rides, rallies, and events around the world.
Through a wide variety of Harley Davidson products, it creates awareness among riders and non-riders. Through H.O.G., the company promotes Harley Davidson products as well as related lifestyle products.
Competitive Analysis – Harley Davidson Marketing Strategy
Harley has a distinct style, superior sound, and design that gives it an edge over all other players on the market, whether they are Triumph, Indian motorcycles, or Triumph. Harley can create a positive customer experience, which has helped the company stay ahead of its competitors.
Market Analysis – Harley Davidson Marketing Strategy
Because developed nations have a lot of competition, the 2-wheeler companies are focusing on developing nations. The high bargaining power of suppliers and government regulation makes it difficult for players to sustain. The only hope is in emerging nations, which if exploited will provide a sustainable advantage for the company.
Customer Analysis – Harley Davidson Marketing Strategy
Harley Davidson’s customers include passionate bikers who enjoy riding for long periods and over long distances. Harley targets customers who are “Born to Ride”. These customers come from the upper-income bracket and range in age between 25-40. The age barrier for Hogs has been crossed, however, as even seniors love riding a Harley and taking long drives.
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