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Harley Davidson Final

Date post: 31-Oct-2015
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This is a case study on how Harley Davidson should launch their product line in India.The problems they may face and the way they can deal with it.
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HARLEY DAVIDSONSAMPRAKASH TRAVI KUMARSOBHNAT YADAV VINODH S SAI GAUTHAM SUMEET K DEEPAKCeo keith E Wandell1TypePublic companyFounded1903Founder(s)William S. Harley Arthur DavidsonWalter DavidsonWilliam A. DavidsonHeadquartersMilwaukee, WisconsinU.S.Key peopleKeith E. Wendell, CEOProductsMotorcyclesRevenueUS$5.31 billion (2011)Net incomeUS$599.1million (2011)

COMPANY PROFILECeo keith E Wandell2

FOUNDERS

Ceo keith E Wandell3TypePublic companyFounded1903Founder(s)William S. Harley Arthur DavidsonWalter DavidsonWilliam A. DavidsonHeadquartersMilwaukee, WisconsinU.S.Key peopleKeith E. Wandell, CEOProductsMotorcyclesRevenueUS$5.31 billion (2011)Net incomeUS$599.1million (2011)

Ceo keith E Wandell4VISION:HD believes, the key to success is to balance stakeholders interests through the empowerment of all employees to focus on value-added activities.

Ceo keith E Wandell5

MISSION:Constantly renewing ourselves and offer our customers the best motorcycle experience without compromising the quality. To be branded as the best motorcycle available in the world

Ceo keith E Wandell6CASE SUMMARY

Ceo keith E Wandell7

HARLEY DAVIDSON INDIA

Harley-Davidson India commenced operations in August 2009 and appointed the first dealership in July 2010.

Since early 2011, Harley-Davidson has been assembling motorcycles in India at its CKD (Completely-Knocked-Down) assembly unit at Bawal in Haryana.

India is the second country where Harley-Davidson has CKD assembly operations outside the US, after Brazil.

At present, the Company has nine authorized dealerships in India.

All the existing Harley-Davidson showrooms are in line with the global standards and together they form an important hub to showcase the legendary culture and lifestyle of the brand and engage with the customers and Harley enthusiasts across the country.

Ceo keith E Wandell9Issues in the caseHigh import duties.

Emission Norms.

Sales.

Promotion.

Servicing

Competition from other firms

HIGH IMPORT DUTIES

Ceo keith E Wandell11

High Import Duties

Import policies in India require the imported bikes to pay a customs duty of 60% and tax of 30%.

Where as with the ckd(Completely Knocked Down units) the customs duty is levied at 30%.

Currently Harley assembles 3 of its entry level bikes in Bawal, Rewari district of Haryana,India which are imported as ckds.

Introducing more models under the ckd assembly will bring down the prices of more models .

This will result in substantial reduction of prices for the high end models.

Ceo keith E Wandell13Sales

Sales are done through dealerships in India and hopes to promote the bike as a luxury product .

Although the bike is priced at a premium level promoting it in the form of a life style product would be much more beneficial to the company.

The company needs to create a cult image towards the brand and promote the outlaw biker image among the youth such that they can associate with the bike.

It should not only concentrate on the rich and affluent millionaires but also the youth in India who have a large amount of disposable income at hand thanks to the IT boom .

It needs to promote the entry level bikes such as Super low, iron 883 ,883 roadster and Forty eight among the professional youth

PROMOTIONCeo keith E Wandell15

Promotional activities

Advertising the cult outlaw image that the bike carries among the youth.This can be doe by promotional events such as rock concerts that can be held at various metros with native band which are slowly becoming prominent in the nation

These events which are widely famous in the us should be introduced in India alsoHOG the Harley owners group is another such initiative which can hugely promote the brand in India.

The HOG develops a sense of belonging among the members which is usually wanted by all individuals.

Promotion of this group will rouse interest in potential customers who crave for a sense of belonging and identity

Ceo keith E Wandell17

Servicing

Servicing and spares availability is another issue faced by the company in India.Customers find it usually hard to find the mechanics usually the ones in cities who find it hard to get their bikes serviced by dealers in metros.

Customers should be made a part of the production process by allowing customization such that the customer himself will be able to repair the bikes in case of mechanical problems.

Improving the dealerships and penetration into all major cities should be carried out.

Another novel idea would be promoting of high end service stations with collaborations of other super bike makers .These service stations will be able to service any high end bikes .

COMPETITORSCeo keith E Wandell19Competition from other firms

With the relaxing of emission standards post Bharath III induction lot of foreign super bike makers have entered India.

These bikes are usually being priced lower than the Harley price range and this is eating into the share of the company.

Promoting the product as a life style offering as none others have the cruiser style can be done to avoid this situation.

Promoting the bike as the ultimate in cruiser style bikes not just any another super bike will be a solution for this problem.

VIDEO PRESENTATION

Ceo keith E Wandell21


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