Marketing Strategies of Harley-Davidson
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : MKTG174
Case Length : 19 Pages
Period : 1995-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : Harley-Davidson
Industry : Automobile - Motorcycle
Countries : US
To download Marketing Strategies of Harley-Davidson case study
(Case Code: MKTG174) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra
» Marketing Case Studies
» Marketing Management Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
Excerpts
The Problems
|
In the year 1969, H-D was taken over by the American Machine and Foundry (AMF).
During this period, the production of motorcycles increased by more than 300
percent to 14,000 motorcycles per annum. However, the quality of the motorcycles
was one aspect which was totally ignored. Adding to H-D's problems, Japanese
manufacturers began flooding the market with high-quality, low-priced light to
medium-weight motorcycles in the 1970s at a time when H-D was manufacturing
mainly heavy-weight motorcycles. The company earned a bad name for poor quality
products. Coupled with the competition from the Japanese companies brought H-D
to the verge of collapse...
|
|
The Marketing Mix
In order to overcome the problems that H-D faced in the early 1980s and help
the company regain its market share, a restructuring plan was implemented.
Teerlink developed an innovative system known as Circles of Management for
bringing both workers and dealers together and involving them in taking key
decisions relating to the company. A new marketing philosophy was developed
based on the desires of the customers and H-D made efforts to position
motorcycles as a lifestyle product...
Product
At the time when H-D was formed, it offered only grey colored motorcycle to
its customers and provided three basic styles. However, the company realized
that in order to survive, it had to offer its customers more choice...
Pricing
H-D realized that it would not be possible for it to compete with the
Japanese manufacturers on the pricing front. This was because manufacturers
like Honda not only manufactured a low-priced high-quality product, but also
spent heavily on advertising their products...
Distribution
H-D started selling its motorcycles through its dealers in 1904. The
company's first dealer was CH Lang of Chicago, Illinois (Refer to Exhibit IV
for the number of H-D's full-line dealer outlets in the US). All the dealers
were independent individuals with a business orientation...
Promotion
Over the decades, H-D had adopted several strategies to promote its
motorcycle brand. The products of H-D were sold to retail customers mainly
through dealer promotions, customer events, and advertising through national
television, print, radio, direct mailings, and through advertising on the
Internet...
|
|
The Road Ahead
Though H-D was able to successfully overcome the crisis which had
confronted the company during the early 1980s, it came in for plenty of
criticism in the process.
Industry experts criticized the company's move
to license several of its products.
They opined that H-D should focus on
its core competency i.e. motorcycles and said that by putting its logo
on several products, the company was selling out and diluting its
brand... |
Exhibits
Exhibit I: The Famous 'Bar and Shield Logo' of H-D
Exhibit II: Features of H-D Motorcycles
Exhibit III: H-D's Suggested Retail Price-List of Motorcycles in the US
Exhibit IV: Number of Full-Line Dealer/Dealer Outlets in the US
Exhibit V: H-D - Dealership Evaluation Process/Norms
Exhibit VI: H-D: Number of Alternative Retail Outlets and Secondary Retail
Locations in the US
Exhibit VII: H-D Print Ads in the Year 1999
Exhibit VIII: H-D Print Ads in the Year 2000
Exhibit IX: Demographic Profile of H-D Customers in the US
|
|
