Strategy Harley Davidson

Topics: Motorcycle, Harley-Davidson, Marketing Pages: 16 (4357 words) Published: March 17, 2013
Final Assignment INTERNATIONAL MARKETING

08/01/2013

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SUMMARY:

Introduction

1) Industry Analysis a. Definition of the industry b. Market trends in the last three years c. Economic structure d. Basic business model

2) Description of the company a. Main product b. Main geographical market

3) Marketing Mix a. Main competitors b. Analysis of the marketing strategy c. Analysis of the marketing mix d. Main environmental and market reasons behind the strategy e. Propositions

4) Methodology a. Main sources

Conclusion

References

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Introduction:

I decided to choose the case of Harley-Davidson because I'm keen on sport automobile, I'm pilot of karting (Go-kart) and I share this passion that I loved nice mechanics. Furthermore, I have my motorbike license and I tried for the first time a Harley-Davidson there is few days and I was surprised by the sensations that I had because I thank that it was a motorbike for the elderly. So I think Harley-Davidson is a great case to study because they have a strong brand image after all of years, and represent really the "American-Dream". So we will study how Harley-Davidson, the only American manufacturer of motorbikes, continues to sell their products and continues to make people dream through the world.

1) Industry analysis (1000-1200 words) a. Definition of the industry

First, Harley-Davidson, created in 1981, operates in two segments: the Motorcycles & Related Products (Motorcycles) segment and the Financial Services segment. In fact, the primary business of the company is the Motorcycles segment designs, manufacturing and selling premium motorcycles for the heavyweight (with a power higher than 651cc). Harley-Davidson has generated 76%, 76% and 75% of the total net revenue during 2011, 2010, and 2009. Furthermore, Harley-Davidson motorcycles own a line of motorcycle parts, accessories, general merchandise and related services. Today, products of Harley-Davidson are sold to retail customers through an international network of independent dealers, with sales in over 67 countries that include North America, Europe, Middle East, Africa (EMEA), Asia-Pacific and Latin America. In 2009, the Company decided to sell the Buell product line and its production and in 2010 was the turn of MV Agusta who has been sold due to principally to the prolonged economic downturn.

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However, we will analyze the last annual report from Harley-Davidson from 2011 (2012 is not ready yet), so if we look the tabs we can see that Harley-Davidson continue to increase its profits with 55,7% in 2011 that was 53,2% in 2009 on the U.S Heavyweight Motorcycle market.

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harley-davidson.com, Annual Reports 2011

But also on the European Heavyweight Motorcycle market, with 12% in 2009, who obtain today 13,7% of the market.

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harley-davidson.com, Annual Reports 2011

The annual report of Harley-Davidson stated that "American et European market accounted 83% of total annual independent dealer retail sales of new Harley-Davidson motorcycles in 2011". But the company is active on other markets where they are important like Canada, Japan, Australia and Brazil.

Furthermore, another point where Harley-Davidson is present are parts and accessories. In fact, this sector contain the replacement parts and mechanical and cosmetic accessories that comprised "a net revenue of 17,5%, 17,9% and 17,9% in 2011, 2010 and 2009".

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http://www.harley-davidson.com/en_US/Media/downloads/Annual_Reports/2011/10k_2011.pdf http://www.harley-davidson.com/en_US/Media/downloads/Annual_Reports/2011/10k_2011.pdf

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Then, Harley-Davidson has the sector of general merchandise where the customer can buy clothes in order to identify them through the brand. Harley-Davidson has an important revenue in this segment but has decreased a bit with "5,9%, 6,2% and 6,6% in 2011, 2010 and 2010 respectively."

With a strong brand image, the sector of licensing is very important. That why...

References: -http://www.bizjournals.com/milwaukee/stories/2009/05/04/story7.html -http://www.mycommunitymanager.fr/harley-davidson-quand-les-bikers-font-ducommunautaire/ -http://letemps.ch/Page/Uuid/5823c82c-a28d-11e0-86da-cb6c8d8d576b|1 http://news.moto-journal.fr/hot-news/marche-mondial-les-ventes-de-harley-davidson-
augmentent - http://tdimedia.blogspot.fr/2010/03/analysis-on-harley-davidsons.html - http://infotechdesign.net/itd/a-case-study-of-harley-davidsons-business-practices.html - http://www.moto-net.com/actualites-motos-5050-March%C3%A9-moto-2012-BILANMENSUEL-Le-marche-du-motocycle-baisse-encore-en-octobre.html -http://www.lesechos.fr/entreprises-secteurs/auto-transport/actu/0202388425756-lemarche-moto-limite-la-casse-grace-aux-gros-cubes-et-aux-scooters-511373.php http://www.lerepairedesmotards.com/actualites/2011/actu_111130-salon-moto-bilan-
2011-perspectives-2012-six-constructeurs.php -http://www.moto-net.com/actualites-motos-p4-4661-March%C3%A9-moto-2012BILAN-MARCH%C3%89-MOTO-Marche-+-de-125-:-6-539-immats%28+10,0%29.html -http://www.moto-net.com/actualites-motos-4745-March%C3%A9-moto-2012-BILANMENSUEL-Le-marche-du-motocycle-:--4,2-au-premier-trimestre-2012.html -http://www.moto-net.com/actualites-motos-4879-March%C3%A9-moto-2012INTERVIEW-CONSTRUCTEUR-Premier-semestre-2012-:-le-bilan-marche-de-HarleyDavidson.html - http://motomag.com/Marche-moto-l-Europe-au-ralenti.html - http://www.lesechos.fr/formations/entreprendre/articles/article_5_9.htm http://www.e-marketing.fr/Marketing-Direct/Article/-Chez-Harley-nous-vendons-du-
reve-americain--36404-1.htm - http://www.mercator-publicitor.fr/IMG/pdf/CasHarley.pdf -http://www.harleydavidson.com/en_US/Media/downloads/Annual_Reports/2011/10k_2011.pdf -http://www.harleydavidson.com/en_US/Media/downloads/Annual_Reports/2011/HD_Annual2011.pdf 21
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