The New Harley-DavidsonTeamAwesome
Harley-Davidsons Mission StatementWe ride with our customers and apply this deep connection in every market we serve to create superior value for all of our stake holders. Harley-Davidsons Vision"We fulfill dreams inspired by the many roads of the world by providing extraordinary motorcycles and customer experiences. We fuel the passion for freedom in our customers to express their own individuality. (Harley)
Harley Davidson's current problem is the fact that their main target consumers, the baby boomers are getting older.
Their current strategy in not effective in reaching numerous potential customers.
They have choosen to focus their investments in to the HD brand because they believe it will provide them with substantial long term opportunities in the global market
CompetitorsYamaha has an advantage because it offers a variety of different products beyond motorcycles, only 50% of it's revenue is generated from motorcycle sales.Suzukiafter forming an alliance with Kawazaki in 2001, Suzuki was able to strengthentheirproduct in many areas (product development, design, engineering, and manufacturing), allowing them to become a true global cometitor.Honda is Harley Davidson's main competitor.
Our Proposed Marketing PlanTo create a new target audience that would in turn increase the overall sales of the company.
Strategy: Identify New TargetAudienceProposed target market:men & women, age range is 25-55, who according to the U.S. Census 2000 make up 43.6% of the total U.S. population. Brite Lites Lil CityMedian HH Income is 75,000~ 1.6% of U.S. Households. Boomtown SinglesMedian HH Income is 41,000~ 1.4% of U.S. households. (Prizm)
ProductWide range of products and prices
Unique Features different from our competitionBenefitsthat come along
Positioning - Creative
Expansion - International
Channel Type - Mix of new and old audience
Current Stores - Plans for new ones
PriceContinue with the same price
Wide Range of Prices:
Base Low - $7,999
Base Middle - $24,000
Base High - $36,499
PromotionObjectives Utilizes social media to get more people involved in the brand, the next generation is the ones who are using this media outlet, why not utilize it and grab their attention, not to sell the actual product, but to sell the brand
Marketing Tactics1. College Campus Tours2. To better utilize the forum that exists that is meant for communication between Harley owners.3. Hold expos in larger more urban cities with younger populations.4. When advertising focus more on selling the "image" rather than the product to the younger generation, focusing on women and that Harley is an American way of life, while continuing some advertising towards the older generation.
http://www.youtube.com/watch?v=EnN_u1PDgK4Allocation of FundsAdvertising
Positioning Identifying as a "Dream" machine.Marketing the less expensive bikes.Focusing advertising on the bike, rather than the rider.
Differentiation Encouraging their less expensive products.Focus on tradition.Merge thenew identy and the HOGmentality
StrengthsSolid NameSolid AudienceInnovation
WeaknessessCutting off possible new audiences
Oppurtunities Reach out to younger generationReach out to womenBridging the gap
ThreatsThe greatest threat to Harley Davidson is other companies who sell motorcycles. Specific companies, such as Yamaha and Suzuki, market to a younger audience, and not only sell motorcycles, but other sports vehicles such as snow mobiles that appeal to a younger audience. Another threat would be car companies, because that would be a competition to the motorcycle.
Implementation and ControlBuild relationships with college campuses and set the goal to go to one campus per stateRedesign and promote the current forumfocus discussions within forumContacting businesses in cities (ex: Grand Rapids) to participate in the expos while promoting our productCreating a series of advertisements for the new target audienceincluding social mediaConduct evaluations
*1. College Campus Tours2. To better utilize the forum that exists that is meant forcommunication between Harley owners.3. Hold expos in larger more urban cities with younger populations. 4. When advertising focus more on selling the "image" rather than the product to the younger generation, focusing on women and that Harley is an American way of life, while continuing some advertising towards the older generation.