It was once an icon of aspiration but Harley Davidson with its first ever affordable model has seen its

tribe increase in India

Harley Davidson-A brief Profile

-Harley Davidson was about American iron that evolved into a capable war machine.-Then came Hells Angels & the cult following-This was followed by the company re-inventing itself by selling time-warped cruisers with reliable Mechanicals. The end result is the iconic Harley Davidson today

Harley Davidson today is a 112-Year-Old brand that has now entered 93 Nations

Harley Davidson Mantra-We made the experience accessible to anyone who wanted to get a taste of the Harley DavidsonAnoop Prakash (MD, Harley-Davidson India)

India & Harley Davidson

For Harley Davidson, it was not simple for creating a segment in India(especially in this sovereign, socialist, secular, democratic republic called India).Be it Cola or Cornflakes, cars or mutual funds India

has not been an easy market for global majors to crack but Harley has defined that trend. In about 5 years H-D has managed to grow rapidly in India with revenue soaring over Rs.200 Crores & losses

declining quickly. In FY 14 it clocked Rs.212 Crores in revenue & losses went down from Rs.13.4 Crores to Rs.3.5 Crores. In FY 15sales volume for H-D was 4641 compared to 1927 in FY 14

When the Govt of USA & India decided to trade H-D for

Alphonso mangoes in 2009 they were probably presenting a huge

challenge to the cult-driven company.

India was the largest motor-cycle market in the world with 10.5 Mn bikes sold in 2010(up to 16 Mn in FY 15) but barring the few imported superbikes the

premium bike segment was practically non-existent in India & there came the opportunity

Harley started with a big-bang by launching 10 Models to begin with rather than being stingy or bringing just 1 or 2 models. It

invested in a completely knocked down facility(CKD) in

2011 that began with the assembly of its sportster line followed by the Dyna line in

2012 & Softail in 2013.The more important programme by H-D was its dedicated dealership programme which started off

with having the right people at right place.

When we entered India in 2010 there was really no

leisure motor-cycling market to be found in the premium space. We established the

segment says Anoop Prakash, MD(H-D)sitting in

his corner office on the ground floor of the Time

Tower in Gurgaon where H-D is headquartered

Harley’s strategy in IndiaDealer Network

Firstly H-D spent a lot of time on the dealer network making sure they were right partners

Target for Biking enthusiastsH-D roped in biking enthusiasts who understood the brand &

were convinced that they needed to be in high-street locations Boot Camps

H-D first boot camp kick-started in 2010.The boot camps organized across Delhi, Mumbai, Hyderabad, Bangalore

& Chandigarh gave people the whole experience particular the feeling of brotherhood of the brand

showcasing 12 models across the 5 families Harley had on offer

Test RideH-D made sure that the experience was accessible to anyone who wanted

to come in & get a taste of the Harley freedom.(It is quite normal for companies to offer test rides when they sell you cars/bikes but motoring

enthusiasts will tell you how interesting it is to test ride a luxury automobile)Rock Riders had custom bikes to ogle at, rock music to

let your hair down & live barbeque counters food connoisseurs.

The test ride would follow a different format from the usual drill of riding the bike .Here you ride in

groups with a proper lead & another 5 bikes in between so that as a rider you get the whole feeling of riding together. When you ride a Harley you don’t usually ride alone

you ride with your buddies.

• Rock Riders started in Delhi & then moved about 5 cities doing smaller gigs before eventually evolving into a bigger format.

• Season 5 of Harley Rock Riders happened in Mumbai last year & before that Bengaluru hosted some 10 bands as part of the event

H-D

• At a fundamental level, H-D support independent rock bands & give them a platform where they can showcase their talent & bring music & motor-cycle lovers together to celebrate

H-D• Alongside in the year 2012 Harley

also sponsored the India Bike Week here bikers from across the country rode to Goa for a week-long festival. That year saw some 700 members of the “famed Harley Owners Group(popularly known as HOG)riding to Goa

H-DROCK RIDERS FUNDA

The Harley Owners Group(HOG) itself is a very important piece of the Harley success story.HOG was created in the US in 1983 to build a strong connect between the company, dealers & customers and bring together Harley Owners wherever they are. With a million members across the world the HOG through its community activities perpetuates the cult & maintains Brand Loyalty.

The HOG community-building has

paid off. Skeptics who said

Harley may not take-off

in this country

because it was too

expensive or that pathole-ridden roads with cows coming in the way of

your cruise will be a

stumbling block were

proven wrong

within the first 3 years

In India the 17 Chapters of the HOG are led by an equal number of dealers .Every Chapter has its own Directors & Officers & plan its own activities. For Ex: The Delhi Chapter(called the captive chapter)has bout 5 HOG Officers.Life Membership-Rs.70,000Associate Memmbrship-Rs.3,500(1 Year) or Rs.35,000(For Life)

The chief takeaway from this membership is the 5 main events that H-D organizes ;1.National Rally(in addition to India Bike Week)2.4 Zonal ralliesYou can participate & avail discounts in terms of logistics & accommodationToday, H-D has a whole bunch of Corporate Honchos as

HOG members .A good example is Sanjeev Mohanty (MD, Benetton-South Asia)

Harley

Owners

Group

How Harley climbed the ladder to success in India(Introduction of H-D Street)

H-D ‘s 883 cc BikeHarley was operating in a market where 90% of the motor-cycles on offer had a displacement

of 100cc.The smallest engine from the H-D stable displaced 883cc when it hit the Indian road. Harley saw the biggest success of Royal Enfield(RE)(the Indian equivalent of H-D) with lost-

in-time pedigree that is now basking in 1,50,000 units a year –Thanks to some uncanny engineering & an inimitable exhaust beat

H-D’s Street cost twice as much as Royal Enfield’s Continental GT. Priced@Rs.4.1 Lakhs H-D started rolling out the Street 750 in December 2013 out of its 68,200

sq.ft facility in Bawal,Haryana

It is that affordable pricing that has created an extremely

buoyant market for H-D. In FY 15,the Street 750 sold 3,029 units while the Royal Enfield

Continental GT sold 2,799 unitsH-D also announced an

extended warranty program in the beginning of 2015

The Classic 350 still brings in the bulk of

Royal Enfield’s revenueTriumph’s Bonneville series

has seen a 3x rise in sales

The Street 750’s value proposition is reflected in H-D’s sales volume

Recently H-D also tied-up with Myntra to sell its casual merchandise through an exclusive online store. It offers a whole range of casual outwear, sportswear,

denims & accessories that gives H-D access to a larger audience. So far H-D ‘s merchandise in India was sold only through its dealerships across 17 locations

If any H-D customer wants to make a statement about the bike, they need screaming Eagle performance parts that helps to

announce ones arrival. These accessories do not come free with the bike & they start at Rs.30,000 for the Street 750 & can go

upto Rs.1,00,000 depending on the modelAs a Harley owner, you cant not have a basic

Harley T-Shirt that cost Rs.2,000

You have to have a Harley key-chain that cost Rs.1,300

A pillion seat & back-rest costs nothing short of Rs.38,000 for a Street 750

You have to have a H-D jacket (black leather) costing Rs.25,000

H-D Accessories adds value to your attitude

Harley’s target @ smaller cities in India V/s Triumph

In CY 15,H-D is looking to establish

their presence in Tier-2 Markets. The

cities include Lucknow,

Coimbatore, Guwahati, Nagpur &

Dehradun for dealershipsThe decision to open

existing stores in Indore, Jaipur & Surat

was driven by our existing customers who

had bought Harley’s

Harley’s strategy of getting into smaller cities has inspired

Triumph as well. When Triumph decided to

enter India it did exactly the same things

that Harley did. It rolled out 11 models from day-one in the

price range of Rs.6-22 lakhsTriumph did not just target

the Metros. Triumph knew where the bigger markets

were & they followed their customers. Now they

are planning to open stores in Jaipur, Lucknow,

Goa & also Nepal

What Harley rolled out in 5 years, Triumph has done in 1 year & now is becoming a close competitor. Triumph

sold 1,326 motorcycles in FY 15

as against 271 in FY 14On one hand the Street 750 is grabbing market share from Continental

GT, there are other bikes like Triumph that

are aggressively creating their own

following

Tier-2 Cities Triumph Triumph

Harley’s growth in different Markets

H-D entered China in 2006 & has since managed to open only 18 dealerships in the last 9 India is the only market in the region to have a manufacturing facility which doubles-up as an export hub.

Starting in 2010,H-D spent some time trying to implement a strategy on targeting foreign markets surveying more than 3000 prospective buyers in 10 countries & focusing on urban markets in

Mumbai, Sao Paulo & Tokyo among others. Retail sales in Asia-Pacific region in CY 14 were driven by growth in emerging markets especially in India & China. At the end of CY 14,the Asia-Pacific

region contributed 11.2% of H-D’s worldwide retail sales of 2,67,299 motorcycles(a rise of 11.8% as compared to 2013)

Till 2003,H-D’s overseas revenue was just about 17%.But

now the company has grown that by more

than half over the past decade but still only

does about 32% of its business outside the

United States

Harley’s new target Group in Street 750

The typical Harley owners age too has

seen a shift. For instance, if you look at the core customer age it was around 38-45

years but now H-D is seeing a lot of traction

from 25 year olds

H-D in Japan & ChinaWhile Japan is a mature market Harley believes it still has buyers who fit the profile for the Street

750.In addition H-D continues to make headway in China despite higher duties & restrictionsH-D EngineWhat draws H-D to most customers is the

performance & retro styling despite being a high-tech bike. The V-Twin engine is extremely

versatile & the handling & control is fantastic

Harley Festival

Young or old, members of the Harley cult love a good party. For Instance in Feb 2015 at the India Bike Week-There

were few thousand people at the rocky Vegator Beach in

North Goa. Usually dominated by western

backpackers, this time around one could see a whole bunch

of Indians with funky T-Shirts & trendy jackets, sideburns & sunglasses

As people look on, a Harley vrooms in with its signature screaming eagle sound followed by a trail lining up to a thousand

Harley’s. There are only 13 models in India but each bike has its own

look. The thunder storm lasts some 25 minutes

tearing ear drums

Harley-A “crazy Machine”

Rajiv Bajaj, MD, Bajaj Auto India

acknowledges the presence of H-D

as the reason behind the rising

aspiration for growth in the

segment. Despite not much

promotions, Bajaj Auto’s average

sales of Avenger(cruiser

bike) move from 3,500

motorcycles to 5000 a month in

FY 15

Harley need not feel like its share is being gobbled

by others since its growth will come from customers upgrading their bikes. Its a great

strategy by Harley-you make

the bike affordable to draw

in bikers who may not be able

to afford the brand & then they get sucked into it

Once a Harley owner is a part of that community you cant resist

upgrading. A lot of customers who bought Street 750 or Sportster are

upgrading to higher models

because they are riding longer

distances & they want more of

their motorcycle

With the various clubs across

cities. break-fast rides &

community gatherings becoming

common people definitely ride regularly even when Harley is not their main

commuter vehicle. Several bikers these days

put in about 20,000 to 30,000

kms a year

Gujarat Police-Purchase of Harley Street 750(Case Study)

Gujarat Police Department

indulged itself by buying 6 customized

Street 750’s in 2015

In fact Harley has started off

as a police bike in the US & that segment may bring in

some numbers

The main & real challenge

for Harley is to protect &

perpetuate its cult following

We are proud to add H-D Street

750 motorcycles to

the Gujarat Police arsenal. The Street 750

not only addresses the

Police Departments

need for performance

motorcycles in challenging

situations but also provides

great confidence &

maneuverability in urban

conditions-said on of the Police spokesperson

Anup George RebelloAsst.Manager

The Catholic Syrian Bank Ltd(anuprebello.6@gmail.com)

http://www.slideshare.net/anuppresentations