ASSIGNMENT 2

MARKETING MANAGEMENT FOR GLOBAL

Student Name :Mohammad Kamal Altork ID no : 172788

SUPERVISED BY : DR ABDALLAH BATYNEA
DR ANAND WASLER
Table of Contents

1-Introduction 3

1.1 Background 3

1.2 -Mission and Vision 3

1.2.1-Vision of Harley Davidson 3

1.2.2-Mission of Harley Davidson At Morocco 3

1.2.3-Reasons for Choosing Morocco 4

2.-Situation analysis 5

2.1.-Pestel Analysis 5

2.1.1-Politics 5

2.1.2-Economy 5

2.1.3-Social 6

2.1.4- Environment 6

2.1.5-Technology 6

2.1.6-Legal Factors 6

2.2-Micheal porter five Forces 7

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 2.2.1-Competition in the industry 7

2.2.2-The bargaining power of suppliers 8

2.2.3- The bargaining power of customers 8

2.2.4-Threat of substitutes 8

2.2.5-Threat of new entrants 9

2.3-Swot Analysis 10

2.4-Direct Investment Approach 11

2.5-Major Target For Harley Davidson 12

2.6-Positioning strategy 13

2.7-Harley Davidson 7Ps Marketing Mix Strategy 13-15

3-Conclusion 16

4-Recommendations 16

5- Resources 17-18

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1-Introduction

1.1 Background

In 1901, Youngman named William Harley to start thinking about things in the future and started to
make sketches about Motorcycles enriched with creativity. In 1903, his friend Arthur Davidson Joined
him to build the Dream of Harley Davidson at Wisconsin, Milwaukee. In 1904, After they Finished
establishing the manufacture, they allocated the first dealer of Harley Davidson at Milwaukee. In 1910,
They trademarked their Famous Logo. After that, A Doctor was Watching the Motorcycles Races Decided
to Create the Egg-shaped Helmet to help the rider to avoid the crushes and the side effects of the
Motorcycle. Despite the Civilian use for the Harley Davidson Motors, the US Army at the first and second
world wars choose them to supply the Military with the Motor Cycles because of the High Reputation
they built, and the main task was to be way of Transportation between the Borders.

1.2 -Mission and Vision

1.2.1-Vision of Harley Davidson

In 1920, the company hit the target by having 2000 worldwide dealer at 76 Countries worldwide. Built
on this Vision, the companies owner worked to expand its brand all around the world. No matter the
location of the country supplying all the Products, the dealer is the main task. Continuing to this journey,
Harley Davidson worked at four pillars: Continues improvement, Leadership Development,
Sustainability, and growth.

1.2.2-Mission of Harley Davidson At Morocco

Our Foreign Direct Investment (Greenfield) will establish in Morocco, the mission to establish a factory
for assembling parts to provide the market and the Region with Harley Davidson motorcycles. In
addition to that, Choosing Morocco to be our case study comes after a lot of research and analysis to the
Moroccan Economy, Culture, and demographics.

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1.2.3-Reasons for Choosing Morocco

- the population of the Moroccan in 2020 reached 36,029,138, with 49% percent of males(According to
(Data.worldbank.org, 2020).

-The Morocco GDP 270 billion Dollars ((Imf.org, 2020).

-Doing business websites also gives Morocco a high score on the doing business website, which is 73
score and 53 ranking all over the world (Doingbusiness.org, 2020). The measurement built on Doing
different Indicators Such as Credit conditions, electricity Availability, Dealing with construction permits,
paying taxes, and Trading across borders deals.

- Morocco is the second-largest automotive market in Africa, with annual new-vehicle sales forecast to
be north of 175,000 units by year-end 2018(Automotive-fleet.com, 2020).

- Many Brands start to establish assembly plants in Morocco such as Peugeot Citroen, which announced
in June 2018 that it would build a greenfield assembly plant, And the Chinese brand OEM BYD to
manufacture battery-powered cars, buses, trucks, and batteries.

-The geographic location of Morocco is near to Europe, the Middle East, and sub-Saharan African
countries.

- The labor costs are cheap in comparison with the other Evolved and developed countries (Heritage.org,
2020).

- Considering the political stability of morocco can also be one of the most significant roles for gaining
new investors who look for a haven for their investment.

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2-Situation analysis

2.1.-Pestel Analysis

2.1.1-Politics

-The Governmental politics rule plays an essential role in the work environment, which the Moroccan
Kingdom gives investors incentives for investing in Morocco, Such as the Tax Policies, Cheap prices for
renewable energy resources.

- Morocco Politics Environment is stable and has good relations with the neighbors and the brand origin
country in the United States of America.

- The risk of instability is also could be under concern because The united nation has monitored and
reached an agreement between Morocco and Polisario front group to cease the fire at Western Sahara,
Western Sahara is rich with phosphate and many other resources(Heritage.org, 2020).

2.1.2-Economy

- Morocco is ranked 6th among 14 countries in the Middle East and North Africa region with
improvements in fiscal health, property rights, and judicial effectiveness outpacing lower scores for
government integrity, labor freedom, and trade freedom (Heritage.org, 2020).

- The GDP of Morocco compromised of 83.5 percentage of Import and Export (Heritage.org, 2020).

-The Moroccan Economy is having growth with a percentage of 4.2%, and the Unemployment rate with
a percentage of 9.3%. (Heritage.org, 2020).

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2.1.3-Social

The social factor which can give us indicators of the social Environment of the Moroccan market. The
population and Demographics of the Moroccan. As they always love to belong to communities and the
ability of Harley-Davidson to establish this community.

2.1.4-Environment

-solar power in Morocco generated by having one of the highest rates of solar insolation among other
countries— about 3,000 hours per year of sunshine but up to 3,600 hours in the desert (Tiyou, 2016).

- In 2014, The government inaugurated the continent's biggest wind farm at Tarfaya in the southwest of
morocco (Unesco.org, 2020).

2.1.5-Technology

The Moroccan Market has the infrastructure for telecommunication channels, Which encourages Harley
Davidson to establish a website and mobile applications for selling their items.

2.1.6-Legal Factors

Trading across Borders: Morocco made trading across borders easier by reducing the number of export
documents required. Which encourage Harley-Davidson to export the manufactured products in the
factory to the North Africa region and Europe (Doingbusiness.org, 2020).

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2.2-Micheal porter five Forces

Michael Porter is a model that identifies and analyses the competitive forces that impact and shapes the
industry. Those undeniable Five forces are usually analyzed to identify the industry structure to
determine future planning and strategy (porter,1980).

2.2.1-Competition in the industry

- number of existing competitors (strong)

The competition in the industry will face much competition from famous brands such as the Austrian
motorcycle KTM and the Chinese origin brand luojia motorcycle.

-Switching Cost (Strong)

Also, for the same reason, the switching cost from the low-cost Chinese motorcycles such as luojia and
the Italian brand Vespa, the cost of switching will be expensive from those brands to Harley-Davidson.

-Industry Growth (weak)

The industry growth, according to the Association of Importers of Vehicles in Morocco (AIVAM) will have
a massive impact on the Harley Davidson sales, which published that the end of July 2018 sold 104,678
vehicles compared to 99,831 vehicles sold in the same period in 2017, (Automotive-fleet.com, 2020).

-Quality differences (weak)

Harley Davidson quality different than the competitor's motorcycles quality such as KTM,Loujia
Motorcycles, which have strong

impact for the drivers searching for reliable and heavy-duty motorcycle with the availability of spare
parts.

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2.2.2-The bargaining power of suppliers

- the number of suppliers of raw materials(weak)

-The suppliers of Steel and metals are available with the international prices of the steels, such as
Maghreb steels and Thyssenkrupp Materials.

-As the primary target for assembly planet to assemble parts that are imported globally from the
international factories owned by Harley-Davidson.

2.2.3- The bargaining power of customers

-Number of customers(weak)

Moroccan population 36,029,138, with 49% percent of males (Data.worldbank.org, 2020), gives us a
strong indicator that this population can help to establish a factory to supply them with the motorcycles
and spare parts they want.

-Price Sensitive (weak)

Also, price sensitivity can have a massive impact on the customers, so manufacturing motorcycles with
reasonable prices can be attractive for new customers.

2.2.4-Threat of substitutes

-Brand Loyalty (strong)

So Far, many market segmentation strategies can change brand loyalty from one brand to another
Easily.

-close substitutes availability (Strong)

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Also, the Automotive sector in morocco is stable and attractive for companies to establish marketing
campaigns to attract the customers of the other companies, which can play a significant role in changing
interests from 2 wheels to 4 wheels.

2.2.5-Threat of new entrants

-Capital Requirements(weak).

The Capital requirement for new companies can be a positive impact because many global competitor
companies are facing challenges in number of sales. Those challenges do not encourage new companies
to emerge in new markets or to expand their factories out of their origin countries. So those challenges
will keep the Harley Davidson factory solely in the market.

-Governmental policies (strong).

On the Other hand, The Governmental policies Encourage new investors to enter the market, which
means many competitors can enter the market, and the world Trade agreements signed by the kingdom
can attract them to enter the market, whether by Direct Foreign investment or In-Direct Investment.

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2.3-Swot Analysis

Strong Weakness

- The Brand name of "Harley Davidson "is the most - Average purchase of the bike was only up to, and
significant and primary strength of Harley the age of 42 – 43, Harley Davidson should work
Davidson. on encouraging all the ages to buy the
motorcycles.
- The image of the Name "Harley Davidson Created
a significant and commercial Impact on the various -Customers search for unusual motorcycles with
forms of targeted groups. new exterior colors. Harley Davidson works only
for providing classic colors that reflect the
- Government initially set the goal of reaching
strongness of the motor, such as black, orange.
42% of the renewable energies in
the energy mix in 2020,So working to produce
Electrical Motorcycles will help to attract new
potential customers (Legislative framework for
renewable energy in Morocco - Renewable Energy
World, 2020).

Opportunity Threat

-Increase market share in the Moroccan market
and north Africa.
-Increase market profit in the Moroccan market
and north Africa.
-The threat of the changeable Exchange rate.
-The threat of changeable oil prices that would
affect the consumer behavior toward gas
motorcycles.

-Expand Brand Awareness in the Moroccan market

and north Africa.

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2.4-Direct Investment Approach

According to Hymer (1970), The decision which took to invest overseas means that a strategy used to
capitalize on specific sectors that are not shared or used by competitors in foreign markets. Harley
Davidson will choose the Direct Investment mode (Greenfield Investment), which will build its factory to
supply the Moroccan and the region with their Assembled products by taking advantage of its location
and the International world trade agreement signed by the kingdom.

- Advantages:

Choosing this approach to have many advantages, Such as:

- Increase Brand Awareness between the Moroccan and the north African.

-Take advantage of the cheap labor costs.

-Take advantage of Incentives given by the Moroccan kingdom for Investors(Bouhlal, 2019).

-Strategic location of morocco, which connects North Africa with Europe.

-Entering the European market by exporting from the Moroccan Harley-Davidson Factories to Europe.

- Increase market share In the Moroccan market, which has massive competition from the other famous
brands such as the Chinese brand lauiji and the Austrian brand KTM.

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- Disadvantages

After considering the most Advantages of Direct Investment of Harley Davidson at Morocco, Those
Disadvantages can be briefed such as:

1- Instability of all the North African and the middle region ,such as facing many political changes like the
Arab Spring

2- Government policies indirectly affect FDI by monetary policies concerning the money transfers in-out
of the countries, Such as the profit and the capital transfers (Brewer, 1999).

3-The Unqualified labor can be a challenge for the management.

4-Culture differences for the directors and how they can manage the diversity of the laborers (Verburg
et al., 1999).

2.5-Major Target for Harley Davidson

Target market means the group of consumers that are targeted by the company to be attracted to the
product, and Those groups targeted on different factors like demographics, behavioral patterns, and
lifestyle characteristics (Dibb and Simkin, 1991). The importance of targeting enables brands to direct
their products to customers with the potential for increasing sales and loyalty to the brand. So Harley-
Davidson targeted plan will usually be built on :

1-Caucasian Male with age 35+ (Roese and Kompella, 2017).

2-Average Income of $78,000 (Faruque, 2006).

3- Amicable Individuals who strive to stand for the community.

4- first-time buyers of motorcycles to increase its market share between the Moroccan
(Vedpuriswar.org, 2020).

5- A proper pricing strategy, which would attract the targeted Moroccan customers.

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2.6-Positioning strategy

Market Positioning refers to the ability to make a substantial impact on consumer perception regarding
a brand or product relative to the competitor. The main objective of market positioning is to establish
the image or identity of a brand or product so that consumers perceive it in a certain way. The most
crucial positioning points would strengthen the brand name and help to emerge the Moroccan market: -

1-Harley Davidson Prices higher than Competitors prices, targeting will be positioned to the mid-high-
level class in morocco (Bronson and Beaver, 2004).

2-Creating lifestyle for Harley Davidson owners (Schembri, 2009).

3-Encouraging the owners to create communities and groups for sharing the same activities and
interests.

4- They keep the technology to a minimum so that the core focus is on the feel and experience of riding
a luxurious motorcycle (McDiarmid, 2006).

5-The only motorcycle factory in morocco

2.7-Harley Davidson 7Ps Marketing Mix Strategy

Neil Borden claims to be the first to have used the concept of "marketing mix" (Goi, 2009). The
marketing mix (7P's) means the mixing of the seven elements of marketing that have the same objective
to be done. Those Elements are product, price; place; promotion; people; process, and physical. Harley-
Davidson will ensure to apply this marketing mix strategy to enable it to meet the needs and
expectations of the customers. In addition to that, this strategy is extended with three new(people;
process and physical )elements to break the traditional marketing mix. The importance of marketing mix
strategy can change a firm's competitive position (Grönroos, 1994)

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2.7.1-Products

-Variety of products such as Motorcycles, accessories, and partnered designed products.

-products manufactured in high-quality standards

-Harley-Davidson Products are famous for their traditional design.

-Spare parts are available for all the products.

2.7.2-Price

-The current pricing strategy to set prices that worth the brand name of Harley Davidson.

-Using pricing bundles were buying the motorcycle bundled, for example helmet, Jackets, Gloves sold as
package will be cheaper than buying individual Pieces.

-Final products have fixed prices, and Distribution channels spread the products with prices that save
their margins.

2.7.3-Place

-Purchase can be made physically from the dealer, or it can be done online by the website or mobile
application.

-Channel distribution systems help the process of integrating the online store with the physical
store(Dealer, Wholesaler).

2.7.4-Promotions

-Harley Davidson uses the classic type of channels to promote its products, such as TV and radio. Of
course, they rely on their big name for using those channels to attract new and recent customers.

-Harley Davidson always enhance dealers to create events for the owners of Harley Davidson bikes to
launch new products.

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2.7.5-People

-Harley Davidson has people working in customer service departments to provide them with all the
information they need.

-Harley Davidson has its own qualified sales team to help customers with a compatible choice for them.

2.7.6-Process

-Harley Davidson has a system applied to the retailer shops, and This system helps to supply the dealer
with any shortage by sending a notification to the retailer.

-Harley Davidson evolved the online system by fasting the process of receiving orders and shipping
those orders.

2.7.7- Physical Evidence

-Harley Davidson Website can give customers the advantage of viewing the products in high-quality
images.

- Harley Davidson sells its products such as accessories in a Harley Davidson logo color packaging that
easily identifiable on retail shelves.

After considering the 7'P's strategy, Concerning the importance of after-sale service can give support to
targeted marketing mix strategy. As the Moroccan always looks for long term relationships between the
brand and the customers, So providing them with many after sale services such as Delivery, warranty, 24
hours maintenance, and customer service will help to assure the success of our marketing strategy.

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3-Conclusion

The leading global expanding plan for Harley-Davidson is to expand the brand all around the world, and
Entering Morocco will give the ability to Enter the north African and the European market by
establishing the assembling factory. Of course, this thing will happens due to the Strategic geographical
location it has and the signed global trading agreement with all the countries . Also, Harley-Davidson
Selling plans to Introduce a bike mixed with the passion of the American dream, So working in this aim
will always attract new customers from the new generation, which have interest addiction to speeds,
mixed with the life style changes with luxurious bike like Harley Davidson. For sure, this thing cannot be
do without following new market strategies to sell and supply the market potential customers. These
marketing strategies need to adopt the Moroccan market and positioned by the most important positing
points. In addition to that, the Planning of Direct Investment approach in morocco will be an essential
step for Harley-Davidson to excel their worldwide accomplishment and attain a considerable market
share at the North African market.

4-Recommendations:
 The Research and development of Harley-Davidson needs to study the new market by
considering all the segmentation approaches for the new market.
 Harley-Davidson needs to increase the budget of the operating expenses, because they
needs consider the high cost of marketing expenses at morocco .
 Harley-Davidson management may consider that Expanding in the international market
will not affect the attention at the other global factories , Because the all the factories
will works as chain for the manufacturing products for the same brand .

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5- Resources:

1-Automotive-fleet.com. (2020). Morocco Fleet Market: Robust and Growing. [online] Available at:
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[Accessed 5 Mar. 2020].
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destination for FDI? (Doctoral dissertation, University of New York in Prague).
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