What kind of consumer owns a Harley?

Harley Davidson is an American motor bike company and for many Americans it is there “Big
American Dream’ to own a Harley Davidson. The people are passionate about bikes and aged
between 30-50. Healy Davidson has a loyal customer base who are loyal to them not because
HD’s performance but because the value of the brand. It has an image of tough and heavy
manly feeling which attracts the customer most.

What accounts for Harley owners’ satisfaction and brand loyalty?

Harley-Davidson is the only remaining American motorcycle. For consumers who value buying
American products, Harley is the only option also it has a macho, rough and hard-core image and it
is an honor for biker to have a Harley. Also it is a prestigious product and have a high resale value.

SWOT analysis of Harley Davidson.

Strengths

Cult Brand: Harley Davidson has transformed itself as a cult brand & positioned itself in niche
segment of High CC cruiser bikes.

HOG Rallies: Harley has its characteristic rallies of “Harley Owners Group” or HOGS on a
continuous basis which involves Harley owners from different parts of the country to interact &
experience a different lifestyle.

High Customer Pull: Its distinguished promotional strategies & branding has helped Harley in
creating a strong customer thereby having a high TOMA score. (Top of the mind awareness
score)

Product Range: With its diversified product range like recently introduced Street 500CC & 750
CC, Harley is trying to solve the ageing problem of the current customer base so as to make it
more promising to the younger diaspora.

Loyal Customer Base: With its strong image of quality and ‘freedom’ Harley has crafted its niche
position in the market which is also backed by Harley Davidson Merchandising.

Due to a rich heritage and financial stability parent company is on the growing path.

Weakness
International manufacturing: Outside U.S Harley Davidson has a manufacturing unit only in
India & one assembling plant in Brazil which makes price to the exported countries a bit higher.
Also, they are dependent on these 3 facilities to fulfill the global demand.

Over-dependence on the U.S market: More than 65% of the revenue is coming from the U.S
market. The U.S market has its own limitation in terms of growth. So it’s became more risky for
Harley to generate majority of its revenue from U.S.

Suppliers: Relaying on Single/Limited Suppliers can affect the company’s business in long run.
As in case of increase in Input cost will lead to increase in operational cost which in course will
affect the cost of commodities resulting capacity constraints, lower production, financial
distress to suppliers which will ultimately result in delivery delay & customer dissatisfaction.

Opportunities

Asian & Europe Markets: The demand in the developing Asian & European nations is increasing
for Harley and there are very (rather no) players competing in this segment. Thus, it is a very
attractive opportunity for Harley to capture these markets aggressively.

Lower CC bikes: With its own set of loyal & cult followers, it can attract the young customers for
whom if it can launch low end heavyweight vehicles (say 350 CC) which will help the company
to increase its Customer base.

Women & Young Riders: Harley can use its increased marketing efforts to further increase the
customer base by marketing towards untapped segments. For example, in 2000, women riders
were purchasing about 15,000 motorcycles per year. In just 5 years, sales to women had
jumped to over 30,000 motorcycles per year. In 2006, women accounted for 12% of all bike
sales.

Threats

Myopic Approach: Being market myopic can affect the Harley brand .As its 65% of sales comes
from the U.S market, this over dependence can lead to internal distress.

Substitutes: With more & more companies in heavyweight segment going global Like Royal
Enfield, Indian Motorcycles, Vector Motorcycles, Triumph Motorcycles, these substitutes with
low price offering can affect the overall business of Harley.
What role do you think the Harley Owner Group plays in the success of the company?

People are so much passionate about owning a Harley that they have made a community of
Harley Davidson owner. They feel loved and affectioned by the brand an they play a vital role in
the marketing of Harley. Harley owners have a community that’s the first thing to attract and
second thing is referral marketing. As a community they influence many bikers and they
obviously recommend Harley to others.

What threats do you think Harley-Davidson faces in the next few years?

There is other manufacturer such as Indiana motor bike company also produces the same
category of bike as Harley Davidson, they can be a threat to them. New generation may not be
interested in muscular looking bike instead they must want more [performance and efficiency
and less costly but th3re will some biker who will still purchase a Harley because class is never
out of style.