Phoenix Hybrid Team D: Alison, Anita, Bryan, Chelle, & Jason

Kathy DeckerApril 6, 2009

HARLEY RIDERS HAVE A ROMANCE WITH THE ROAD…

History and Organization

Product Description

Marketing Research

Segmentation & Target Market

Position & Placement in Market

Competitive Landscape

SWOTT Analysis

Distribution Strategies

Product Lifecycle

Pricing Strategy

Advertising Plan

Public Relations Opportunities

Controls & Monitoring

American Legend…

Established 1903 – Milwaukee, WI - 105th Birthday 2008

Harley Davidson, Inc. – Parent Co. of HDMC, Buell, MV Agusta, & HDFS

Survived World Wars, Depression, Tarnished Reputation, Restructuring and

Revival, Claims of Stock Price Manipulation, Strikes, & Other Unforeseen

problems

Trademarked Sound

Sold in more than 70 countries

More than just motorcycles

Commitment to Society

Production and Key Facilities World Wide

Phoenix is Born

Environmentally Friendly – The “Phoenix” is born with protection of our environment at heart.

Fuel Efficient - As required to meet the “Environmentally Friendly” aspects, and offsets rising fuel costs.

Hybrid Technology – Brings parallel hybrid technology to the motorcycle industry and increases operational efficiency

by 50%. Integration - Allows for a reduced cubic inch displacement gasoline engine, which is where the economies are realized via reduced fuel consumption.

Electrical System - The Phoenix utilizes 24V lithium ion battery construction to reap the benefits of maximum range capabilities.

High electrical demands of advanced drive train system – frame is modeled to accommodate over 40% of batteries needed to support the electrical drive system.

The remaining 60% of batteries are provided by dual 24V - C900A rear mount batteries.

Authenticity – An optional accessory, the uproar tailpipe allows for the signature Harley sound.

Phoenix Hybrid

Marketing Research Research Information (Primary) – Collect information from current customers & dealers / analyze additional info through industrial & competitor analysis.

Specialized Focus - Identify areas where motorcycle travel is advantageous, Glean further data from our targets.

Consideration (Secondary) - Given to readily available market research data specific to motorcycles and environmental concentrations

Goal - Provide an eco-friendly motorcycle, Out-perform our competitors, Price that satisfies the consumers in our target

markets, and Maintain reputation of our brand.

Segmentation & Target Markets

Two Step Process – Name / Divide

Segmentation Criteria include: Demographics,

Psychographics, Behaviors, and Geography.

Determine Target Markets Develop Marketing Mix

Metro & College Areas Young Adults – 20 to 48 Women Slightly Lower Income -

$50,000 to $80,000 Married & Single Economically &

Environmentally Conscious Warmer/Temperate

Climates

Position & Place in Industry

Reputation as an American

Legend

Image of Prestige

Fun

Unique

Classic Style

Superior to Competitors

“With half the U.S. Market

and a third of the global

one, Harley-Davidson is

the largest

manufacturer of

heavyweight

motorcycles in the

world.” (Wikinvest, 2009)

SWOTT ANALYSIS

Strength: over a 1.5:1 ratio in 2006, 2007 and 2008

Weakness: lack of sufficient assets aside from inventory

Opportunity: create a hybrid with “Harley sound”

Threat: current economic recession and competition

Trend: commuters decrease expenditures and think “green”

Our Competitors: From shoes to other motorcycle companies

Economic Environment:Changes in consumer needs

Historical Lessons:GM’s electric car surpassed by foreign hybrid vehicles despite being “first zero-emission vehicle on the market”

Customers as Partners:

Focus on loyalty and encourage investment

Why Now?

Distribution Strategies

Harley StoresPrimarySecondary

Market SaturationUSA 684Europe 370Canada 74Japan, Australia, Asia, &

Latin America 240Least Costly

Product Lifecycle Categorical – Adding a product to an existing line of products in which we are creating a new category.

Market Introduction – Very streamlined due to large network of dealerships as well as exceptional following. Word will travel fast and we well have large success In this phase.

Market Growth - Primary emphasis will be on price sensitivity and customer satisfaction. Great indicator of how successful our test markets really were. Large growth anticipated. When competition enters, focus on market share

Market Maturity – Upon entry we are at this phase by nature of product, new technology gives us renewal and vigor. As competition enters and sales slow we will know we have hit this point.

Sales Decline – As new technology or better products we will enter this phase.

Pricing Objectives & Strategy

Combination Approach – Sales & Profit

To Increase Market Share & Sales

Goal - Sustainable Profit over Product Lifecycle

Administer Prices through Channels

Range of Prices

Cap Suggested Retail Price

Communicate Objectives to Dealers

Set Lower List Price & Accept Lower Mark Up

“This is not your dad’s old bike; this is a new motorcycle

for a new generation.” Combination of methods - Personal, Mass Selling, & Sales

Promotions Communication with Dealers - Exclusive ad materials Ads in Print, on Radio, Television, & Billboards Press Releases New Section on Harley Website Sales Promotions - Sweepstakes, Trade-in and/or Trade-up

options, Freebies New Symbols = New Image

Lightening BoltsNature ScenesYouthful Riders

Public relations opportunities

Strategic ApproachMaximize sales while minimizing advertising

costs

Create a monopolistic competition

Corporate LevelExtreme Makeover: Home Edition

Authorized Dealership Level

“Harley Davidson Environmental Revolution”

Controls & Monitoring

Market Feedback

Customer Feedback

Dealer Feedback

Website Tracking

Profit Margins

CONCLUSION Maintain Position in Industry

Maintain Edge over Competitors

Encourage Investments

Caring for Community

Release in 2010 – First on the scene

Monopolistic Competition

Extend Lifecycle of Phoenix

Ensure Business Success & Sustainability

Questions?

REFERENCESAmerican marketing association (2009). Dictionary. Retrieved March 14, 2009, from

http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=M

Armstrong, G., & Kotler, P. (2005). Marketing: an introduction (7th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.

Harley Davidson USA (2009). This is where we live between friends. Retrieved March 9, 2009, from http://www.harley davidson.com/wcm/Content /Pages/Company/company.jsp

Harley Davidson (2001-2009). Harley-Davidson USA/Company/History. Retrieved March 15, 2009, from https://www.h-dmedia.com/?locale=en_US&bmLocale=en_US

Harley Davidson (2001-2009). Harley-Davidson Media Site. Retrieved March 15, 2009, from https://www.h-dmedia.com/?locale=en_US&bmLocale=en_US

Customer Relationship Management Systems (2009). Finding profit in customer behavior. Retrieved March 22, 2009, from http://www.crm2day.com/content/t6_ librarynews _1.php?id=EpyZAulVVyRGtadgVR

REFERENCESPerreault, Jr., William D., & McCarthy, Jerome E. (2005). Basic Marketing (15th ed.). New York:

McGraw-Hill/Irwin.

Recklies, Dagmar (2001). Why Segmentation? Introduction and Definition. Retrieved March 20, 2009, from The Manager .org Web site: http://www.themanager.org/marketing/segmentation.htm

Wikinvest, (2009). Harley-Davidson (HOG). Retrieved April 1, 2009, from Wikinvest Web site: http://www.wikinvest.com/stock/Harley-Davidson_(HOG)

All Background pictures from Photobucket and Google Images.