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Business and market overview of harley davidson

Harley-Davidson celebrated its 100th year’s success on August 31, 2003. H-D is known as among the largest in developing of motorcycles on earth. 2001 was the entire year when H-D was awarded as the business of the year for best effectiveness in Earnings and expansion in sales, and in addition for substantial effectiveness in finance. The next year can be marked as the business of the year because of its everlasting growth in net gain and revenue. Apart from advertising motorcycles on the brand of Buell named manufacturer and H-D, the business started the market for accessories, spare parts for a product and universal trade.

Source: http://www.icmrindia.org/casestudies/catalogue/Marketing1/Harley%20Davidson.htm

Company background

The Harley-Davidson motorcycle’s period was started in Milwaukee Wisconsin in 1903. In Milwaukee, one-cylinder motorcycle originated by Bill Harley and Arthur Walter Davidson. Gasoline engine was developed and one-cylinder engine was brought in. The first motorcycle unveiled was Indians in 1901 and accompanied by Mitschell, Merkel and Yale in 1903.

One-cylinder gasoline combustion engine was powered for this motorcycle which was initially built for racing.

Bill Harley and Arthur Walter Davidson built up a one-cylinder motorbike in 1903 in Milwaukee. One-cylinder motorbike was a dependable in addition to a lovely cycle. And … an individual bought it! That they had constructed 11 motorcycles in 1905 and which grew to 154 in 1908 and they owned a provider, in a little wooden barn, and Davidson’s father built the wooden barn.

The small company expanded swiftly and William from the Davidson relatives joined them. In a very short span of time 20 staff members were hired in a particularly build stone-factory.

The earliest 1000cc V-Twin project was drawn by Bill Harley in 1909. V-Twin developed a lowly seven hp. The 45-level V-Twin became among the perceptible pictures for the Harley-Davidson motorbike. It’s hard to believe V-twin was invented by Harley-Davidson but nonetheless it stayed with Harley-Davidson for a long time!!

"Bar and Shield" emblem was laid on their motorcycles and that worked well as the legendary from 1910. This started to be the identifying symbol for Harley-Davidson till day. Harley-Davidson began a growing number of recognised by earning races in the first place and gave endurance contests and achieving the great position.

In 1911 "F-head" engine came into marketplaces. When the "Flathead" engine was innovated, this is seen as a power workhorse until 1929.

Harley Davidson owns up 62 % of the marketplace of motorcycles with 850 CC or even more in America, nowadays!!

Harley is a brand which act as a fun stuff for the niche sector, this sector will not believe in age and appearance when compared with money. This manufacturer gives tantalising effect for the loyal fans of the manufacturer who increased the product sales even following the hype has ended.

‘Harley Davidson’ the brand describes arrogance, massive and cool cycle. It really is one and the only one which is usually incomparable with riding any various other bike. But, Harley is still not the speediest and manageable cycle.

Page: http://www.powerpassion.nl/harley/story-engels.html


Macro Economics:-

P.E.S.T Analysis:

PEST analysis describes about "Political, Economical, Social, and Technological elements". These factors affect the external environment or macro-environment and will be looked at for enforcing any Online marketing strategy as well as strategic management.

Political: Every marketplace as government Regulations like, pollution control, work surroundings and discharge of plant. For betterment of the business’s reputation, it’s legal and personal rebound Harley-Davidson company required the knowing of the safeness and environmental requirements to be implemented. "Saving the planet" and "Looking at the influence of business progresses environment" will be the rules and obligations for the Harley-Davidson. Loud sound made by Harley engines are likewise taken into consideration for governing the electric motor noise emissions that was quiet natural point because of its owners.

After the occurrence of 11th September 2001 event, American people started showing the raising patriotism towards its region. Most of the American people have seen Harley as one of the main U.S. representative brands and continuously earning the hearts of People in america.

Economical: Harley extended itself in Europe and opened its industry since May 2004 because of the EU enlargement. It was looking forward to this moment from long time and could not spread the market in Europe due to financial and political influence. However, sales revenue from European trade is recognized as low because of the decrease in the dollar value in comparison to Euro. Harley-Davidson feels this as a confident sign because decrease in dollar may attract buyers to buy Harley motorcycles and also could increase much more sales in Europe.

Social: In the sector we can look up to two important public factors of Harley-Davidson. First of all, Harley-Davidson customers adapt only one culture that was formed by H-D, despite the fact that they participate in various cultures. Secondly, the feminine Harley-Davidson buyers have tremendously increased from 7% to more than 15% from the entire year 1997 to 2003.

Technology: One of many advantageous divisions for just about any company is Technology. More the technology implies in additional rise in customer outlooks. To check the business is following good quality Harley started an Business Quality Plan.

Micro Economics:-

S.W.O.T Evaluation:

SWOT analysis describes about "Strengths, Weaknesses, Opportunities, and Threats". These elements affect the inner environment or micro-environment and these analyses help the organization to determine to take over the options and cheek the threats.


The Brand name of "Harley Davidson "is the most biggest and most important power of Harley Davidson. The graphic of the Brand "Harley Davidson Created a big and commercial Effect on the various kinds of target groups.

Usage of Demo drives, Bike riding advertising was the principal method to get closer to the prospective audience, and influence the people by the concept of word of mouth was the principal focus of the marketing strengths of Harley Davidson.

The Image of the Bike available in the market, the brand identification of the bike available in the market, the trustworthiness of the bike, spoke considerably more for its brand.

Seeing the Photograph of the Manufacturer and the marketplace that Harley Davidson got the primary Customers were also faithful to the brand, plus they proved them loyalty by influencing various other potential consumers towards the brand.

The Owners of the Manufacturer as a matter of fact tried out to improvise the brand and concentrate on providing good support to potential customers by supplying a good service on the brand.

Hence client retention was the principal focus of Harley Davidson.


One of the Major Drawback of Harley Davidson was the declining pattern of Harley Davidson ,

Average pay for of the bicycle was just up to and age of 42 – 43, up to a long time frame , no steady improvement in the age buying category of Harley Davidson Bike , in simple terms Harley Davidson could capture only one forms of target group or crowd i.e. Between your generation of 38- 43 yrs.

Increase in the amount of competition as well created downward product sales for the Brand.

Introduction of New product brands with new item features also added the sales figures to go on

a down fall.

Emerging Brands Have diverse product lines, whereas Harley Davidson Features only 1 unique name. Hence the amount of completion has become intense for the product brand of Harley Davidson to exist available in the market.

Marketing Mix

Product: H-D though initially offered only three fundamental models in mere grey colour it recognized that it had to provide more choice to its customers so that you can endure. Acquisition of H-D by AMF led to less dependable bikes hence forth a loss of popularity as AMF tripled the end result without intention of maintaining the product quality. This problem was encountered by H-D by improving the quality adopting employee involvement programmes, statistical handles, V-Twin engine technology, soliciting the clients for recommendations and complaints, improved sales of accessories and new H-D apparel.

In this circumstance we get to learn the marketing strategies adopted by the manufacturers of Harley – Davidson and the various steps and techniques to advertise the brand identity and the brand image of Harley – Davidson.

Harley Davidson being the very best in the manufacturer, had to introduce the merchandise in the market with the help of the advertising media, because the brand was specialized by the brand itself not much of detailed explanation of the brand was required, Therefore the markers of the manufacturer only concentrated on the Identity of the company, the Tag line of the brand, and the physical image of the brand.

Under this Paragraph we reach learn few important marketing concepts such as for example:-

1.Brand Identification :- "Visible components of a brand (such as for example colors, design, logotype, brand, symbol) that jointly identify and distinguish the brand in the consumers’ brain".

Source: (http://www.businessdictionary.com/definition/brand-identity.html)

Ex: – Associated with the concept of Harley Davidson the makers of Harley Davidson , did not want to advertise about the brand in a completely fledged manner as the company had a strong identity already existing on the market .

2. Brand Impression: – "Impression in the consumers’ minds of a brand’s total individuality (real and imaginary characteristics and shortcomings). Brand picture is developed over time through advertising campaigns with a regular theme". See also corporate image.

Source: (http://hubpages.com/hub/Management-Tutorial-Branding-Definition)

Ex:-In the present case of Harley Davidson we get to know from the lines "keep carefully the identity how to write an interview essay and keep carefully the look how to write a psychology research paper and sound of the bikes because they are unique". Since the brand was much familiar and popular a graphic or an image of the brand was already made on the mindset of the persons, in simple conditions the image of the brand spoke more than the merchandise itself.

Source: (http://www.gccrm.com/eng/content_details.jsp?contentid=2087&subjectid=104)

Also in cases like this we reach learn the many marketing mix elements such as :

sales promotion


Point of Sales Contact

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Under the concept of Harley Davidson the Marketplaces used an extremely formal approach to promoting the brand .Because the brand was a high end product not much of promotional activities were used in the marketing of this brand, the brand of the brand was satisfactory to create a direct effect on the potential buyers.

Advertising: – As a tool for marketing the product advertising as a method was introduced to market the band on a big scale. Usages of Company logo T-t shirts, Leatherjackets, Distribution of Pamphlets, Demo drives of the bikes were a number of the methods used in advertising the product.

Pricing: Competition with for Japanese manufactures to get a stand in the market on light-weight motorcycles Japanese suppliers was tricky, for, they, aside from maintaining low-priced high-quality products, spent even more on advertisement. Concentrating only on heavy excess fat motorcycles by H-D managed to get easy.

Place: All the sellers had been independent through whom the company started selling their goods first in 1904, of which the first getting CH Lang of Chicago. For successful expansion abroad Harley promoted export growth by publishing their magazine in international languages and limiting their creation and then two plants in America for quality maintenance.

Promotion: Several approaches were followed by H-D over the years like sales to suppliers through dealer’s promotions, consumer events, advertising through tv set and internet Etc…Actions such as for example pull and push Strategies were introduced the gauge the market visitors and the responsiveness of the viewers towards the brand.

Two Concepts to be learnt under this method of promotion utilized by Harley Davidson are :-

Pull Strategies:-Marketing strategy where a new product is greatly advertised before its general distribution, to make a pent up demand which draws clients into retail retailers whenever it is possibly available. See likewise push promotional strategy.

Source: (http://www.businessdictionary.com/definition/pull-promotional-strategy.html)

Push Strategies:- "Filling the distribution channels with something on the assumption that customers will be attracted by the ubiquity and additional factors such as price. See pull promotional strategy".

Source: (http://www.businessdictionary.com/definition/push-promotional-strategy.html)

Thus we come to learn from all these case that Harley Davidson Boy to promote the product used the Strategy of pull strategy to attract its market, and promote product sales over a short period of time. The manufacturer Harley-Davidson falls in the pull strategies as it always attract and pull in customers to get its motorcycle rather advertising and marketing itself over the press to push its manufacturer towards the customers.

Source: (http://www.whybike.com/motorcycle262.htm), (http://www.icmrindia.org/casestudies/catalogue/Marketing/Marketing%20Strategies%20of%20Harley-Davidson-Case%20Studies.htm#The_Marketing_Mix)


Definition: "The process of splitting clients, or potential consumers, in market into different groupings, or segments, within which clients share a similar level of fascination in the same or similar group of needs satisfied by a definite marketing proposition".

Source: (http://www.marketsegmentation.co.uk/segmentation_tmsc.htm)

Under this Paragraph we reach learn few essential bases for promoting segmentation strategies such as for example:-

Geographic: H-D as covered its accomplishment story of motorcycle market from west to east. It had been started in United States of America and spread its popularity to United Kingdom, Canada, India, and also China. Worldwide H-D offers 1065 dealers.


Demographic: H-D as proved itself among all of the age group of individuals by its unique style of motorcycles. Harley covered 90% of the male gender, 6% of the female gender, 60% of the people married, 15% of the persons divorced/widowed, 40% of the people living in the home. H-D is considered as one of the expensive and an extremely classy motorcycle, and that was affordable by persons earning approximately $38,000 p.a. H-D majorly concentrated on middle aged man gender between 30-40 years.

Source: (http://www.freeessays.cc/db/29/mul45.shtml),(http://www.freeessays.cc/db/29/mul45.shtml)

Psychological: People using Harley-Davidson bicycles are hardcore, tattoo-laden. The huge most H-D customers are mellow, people who are really friendly who make an effort to stand for the community. Commonly known truth of Harley-Davidson bikers are extremely passionate, enthusiastic, and diehard fans of the brand.

Source: (http://www.yousaytoo.com/what-type-of-person-owns-a-harley-davidson-motorcycle/255938)


H-D concentrated for three major targets. You start with the males whose age group is between 35-44 including both enthusiast and non-enthusiast to flourish its very likely customer base. This is partially fulfilled by presenting the V-ROD style to the demographic youth.

Second aim for for H-D was to draw the first time buyers of motorcycles in order to increase its market share. By setting up the proper pricing strategy, which would attract the mark customers was the third aim for for the H-D plus they believed that this could be achieved only by market research.

Source: (http://www.icmrindia.org/casestudies/catalogue/Marketing1/Harley%20Davidson-Marketing%20Case%20Study.htm)

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Posted by on January 21, 2018 in News


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