Fundamentals of Marketing

Assignment 1

Date Due: 9 February 2009

Harley-Davidson

Submitted by: Batirov Otabek Batch Number: 9

OTABEK BATIROV, 2009

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Harley-Davidson is the largest market share holder of motorcycles in the USA. Harley Davidson motorcycles are produced since 1903. The US army used HD motorcycles both in the first and second World War. The company operates in the US, Canada, Europe, Japan and Australia. HD headquarters is situated in Milwaukee, Wisconsin.

I.

Mission Statement 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.

II. SWOT analysis of HD 1. Strengths: a. High market b. High quality c. High brand awareness d. Stable contracts e. Experience 2. Weaknesses a. No adequate promotional strategy b. No permanent marketing research c. Bad distribution d. Price too high compared to the other existing similar products

e. No policy for acquiring new customers f. High labour cost 3. Opportunities: a. Economic boom b. American product c. New categories of customers d. Increase in the market

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4.

Threats: a. The developing car industry b. Entrance of the Japanese competitors

III. Business portfolio Harley-Davidson offers to the customers not just heavyweight motorcycles, but also motorcycle parts, accessories, large amount of apparel and general merchandise and services. Here is the list of products: Harley-Davidson motorcycles o Sportster, Dyna , Softail, Touring, VRSC Parts and Accessories (P&A) o Genuine Motor Parts, o Genuine Motor Accessories (backrest & racks, bags & luggage, brakes & suspension and etc.). General Merchandise o MotorClothers Apparel and Accessories (jackets, gloves, helmets, eyewear, and etc.) Financial services o Wholesale and retail financing, o Insurance programs. Thereby, the business portfolio of the company consists of those mentioned products. IV. Target Market Harley-Davidson segments the market by dividing its market into district groups of buyers with different needs. The HD try to satisfy the customers needs and wants by offering to each segment needed and wanted product. HD offers to consumers five types of motorcycles. Each of them is designed for current consumers. Some motorcycles are designed for city or countryside, some for touring or for racing. Harley has adopted several new marketing objectives to target the younger market with its new product line: expand its current market, diversify its product line, and modify its marketing mix to target a younger demographic. families.

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V. Consumers The consumers of HD motorcycles are not just men, but also women. Over the last years women have become a significant purchaser of Harley-Davidsons motorcycles. 88% of owners of HD motorcycles are men while the share of women is 12% (in 1987 it was 2%). The median age of owners is 47; the median income of households is $82,100 (2006)1. As you see, business portfolio of HD is very rich and products (MotorClothers) are designed for people of all age and wherever they live. It means that consumers of HD can be either adults or children at any age and either urban or rural person.

VI. Brand Positioning The Company reinforces its support of the Harley-Davidson brand, speeding up its current marketing efforts to reach out to up-and-coming rider groups, including younger and diverse riders. In addition, HD focuses on product innovations targeted at specific growth opportunities with its strong core customer base and new riders. In the U.S., the Company offers to Harley owners Sportster motorcycle trade-up program. Outside the U.S., the Company supports the product, dealer development and marketing activities which help drive strong retail sales growth. Jim Ziemer, Chief Executive Officer, Harley-Davidson Inc., suggests that standing for strength and resilience, and managing the business in any economic climate in ways can build long-term value into the Harley-Davidson brand. VII. Value proposition HD Value proposition offered to the consumers the following: o Tell the Truth. o Be Fair. o Keep Your Promises. o Respect the Individual. o Encourage Intellectual Curiosity.

CSI (Customer Satisfaction Index)

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Harley-Davidson in Uzbek Market VIII. Success? Uzbek motorcycle market is not so optimistically. The environment in Uzbek market is paradoxical. Underdevelopment of this market is not the opportunity of the company. It means that company, which wants enter, will not succeed. This irony can be explained with the following factors: o Unpopularity. People who are interested in and can be the segments of this market are very little. o Mentality. Uzbek people tend to ride motorcycle in early adulthood at the age of 18-34, whereas median age in the USA is 47(2006). Thereby, it narrows the number of consumers. o Value. Young part of the population, visible segment of this market, wants to buy a car (at least Nexia (GM Uzbekistan) for $12,000, whereas the average price HD motorcycle is $14,000). o Law. In Tashkent riding heavyweight motorcycles (any two wheeled machine) is banned by law. Most of streets have prohibiting signs. You can ride motorcycles only outside of Tashkent. o Custom. Because of the high custom duty (tariffs), the price of motorcycle increases twice. HD products become far beyond Uzbek consumers purse. Hence, all these factors show that achieving success of Harley-Davidson in Uzbek market is unlikely.

IX. Competitors In Uzbekistan the number of one motorcycles compared to cars is approximately one motorcycle to ten thousand cars. Most of these motorcycles are produced in the former USSR (Minsk and Ural), others in Japan (Honda and Yamaha) and a few by BMW. On the roads of Uzbekistan it is really hard to meet new motorcycles most motorcycles are resold within the

country and among the population. If Harley-Davidson in any way decides to enter our market the competitors can be mainly Honda and Yamaha, because nowadays these Japan companies are the monopolists in this small market.

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X. Marketing Mix

1.

Products All families of HD Motorcycle: Sportster, Dyna , Softail, Touring, VRSC .

And motorcycle parts, accessories, apparel and general merchandises. 2. Price Reasonable price, lower than competitors 3. Place Tashkent and the region centre cities (primarily Samarkand, Bukhara and Fergana). 4. Promotion Internet, television, periodicals ads, etc. Bike rallies and special events.

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References
1. Armstrong, G. & Kotler, F. (2008). Marketing: An introduction (9th ed). Singapore: Prentice Hall 2. Anonymous (n.d.). Company. Retrieved February 6, 2009, from http://www.harleydavidson.com/wcm/Content/Pages/Company/ 3. Anonymous (April 2005). Fact Sheet. Retrieved February 6, 2009, from http://www.harleydavidson.com/wcm/Content/Pages/Company/Financial_services/factsheet.pdf 4. John B. N. (January 2009.). Harley Owners Group. Retrieved February 7, 2009, from http://www.harley-davidson.com/wcm/Content/Pages/HOG/ 5. Nilsson M. Y. (June 2008). Motorcycles. Retrieved February 7, 2009, from http://www.harley-davidson.com/wcm/Content/Pages/Motorcycles/ 6. Kennedy B. (March 2009). Owners. Retrieved February 6, 2009, from

http://www.harley-davidson.com/wcm/Content/Pages/Owners/

DO NOT PLAGIARISE THIS ASSIGNMENT OTABEK BATIROV, 2009 ALL THE RIGHTS RESERVED

OTABEK BATIROV, 2009

ALL THE RIGHTS RESERVED