HARLEY DAVIDSON

Live to ride, ride to live.

CONTENTS

1. INTRODUCTION 2. BRAND PERSONALITY 3. PRODUCT ATTRIBUTES 4.UNDERSTANDING INDIAN PREMIUMBIKES MARKET 5.MARKETING OBJECTIVES 6.MARKETING SEGMENTATION AND TARGETING 7.POSITIONING 8.MARKETING STRATEGY 9.MARKETING MIX

PRODUCT AND PRICE PLACE PROMOTIONS

10.APPENDIX

Introduction:

Harley-Davidson often abbreviated H-D or Harley is an American motorcycle manufacturer. Founded in Milwaukee, Wisconsin, during the first decade of the 20th century, it was one of two major American motorcycle manufacturers to survive the Great Depression. The company sells heavyweight (over 750 cc) motorcycles designed for cruising on the highway. Harley-Davidson motorcycles (popularly known as "Harleys") have a distinctive design and exhaust note. They are especially noted for the tradition of heavy customization that gave rise to the chopper-style of motorcycle

Brand Personality:

1. Masculine

2. Free spirited

3. Rugged

4. Macho

5. Strong

6. Adventurous

PRODUCT ATTRIBUTES: Harley Davidson attributes can be grouped according to kind of Purpose it is used for-:

Touring Bikes- Big Twin engines and large-diameter telescopic forks

Sports bikes-For the Sportster Evolution engines used since the mid 1980s, there have been two engine sizes XL1100, XL1200

Dyna- Models utilize the big-twin engine (F), small-diameter telescopic forks

Revolution- Models utilize the Revolution engine (VR), and the street versions

are designated Street Custom (SC)

Softail- Models utilize the big-twin engine (F) and the Softail chassis (ST)

UNDERSTANDING INDIAN PREMIUM BIKES MARKET

The Market Stands at 700 units/year for premium bikes (800cc & above)*

Premium Bikes consists the likes of Suzuki’s Hayabusa , Kawasaki’s Ninja & Ducati’s Hypermotard.

105 Units of Hayabusas have been sold since Suzuki’s entry in this segment in Nov’09

127 Units of Ninja have been sold in a span of 14 months. The increase in per-capita income to more than 1000$ by

2014 is expected to fuel the growth of premium bikes market.

Kawasaki Harley Davidson

Suzuki Royal Enfield^

Ducati *Source-SIAM, ^-350cc

PREMIUM BIKES

SUPERBIKES CRUISERS

MARKETING OBJECTIVES:

To gain Heart-Share in the Indian market and be revered as a brand.

To gain Mind-Share in the Indian market as being the ‘premier bikes for leisure riding’

To gain Market share by effectively creating and meeting needs for a ‘Harley Experience’ in the Indian market.

To create a loyal bikers community in India (HOG-Harley Owners Group)

Market Segmentation & Targeting

Geographic

Cities:

Tier-1

Tier-2

Demographic

Income :High Income Groups

Age : 27-45 years

Psychographic

Lifestyles :

Touring Enthusiasts

Outdoor-Oriented

Personality Types : Innovators

Achievers

Professional: Executives

Entrepreneurs Self-employed businessmen

Neo rich youth.

Behavioral

Benifit sought

Occasions: Leisure

riding,Planning weekend rides

User status :

Attitude towards product :

Readiness to buy , Prestige

Associated with the brand.

Gender : Male

SPORTSTER

XL 883L SPORTSTER

• Age-27-35 yrs

• Income-Rs 20-22lakhs

• Behaviour- Speed enthusiast, style oriented flamboyant personalities

XL 1200N NIGHTSTER

• Age - 27-35 yrs

• Income-Rs 20-22Lakhs

• Behaviour- Sport lovers,street bikers

XL 883R ROADSTER

• Age - 27-35 yrs

• Income-Rs 24-26Lakhs

• Behaviour- Dreamers, Experience riders.

XR 1200X

• Age- 27-35 yrs

• Income-Rs24-26Lakhs

• Behaviour-Dreamers, Experience riders

DYNA

SOFTAIL

FXDB STREET BOB

• Age-35-40 yrs

• Income- 28-32Lakhs

FXDC SUPER GLIDE

CUSTOM

• Age-35-40yrs

• Income-28-32lakhs

FLSTF FAT BOY

• Age-35-40yrs

• Income-Rs36-40Lakhs

• Behaviour-Heritage bikers, experience riders

FLSTC HERITAGE SOFTAIL CLASSIC

• Age-35-45yrs

• Income-Rs 36-40Lakhs

• Behaviour-Traditional bikers who loves vintage bikes.

TOURING

FLHR ROAD KING

• Age- 40-45 yrs

• Income-Rs40-42Lakhs

• Behaviour-it is a knock out classic made for touring enthusiat and leisure riders.

FLHX STREET GLIDE

• Age-40-45yrs

• Income- Rs 40-42Lakhs

• Behaviour- It provides a ultimate blend of custom and comfort and is meant for those whp is into long haul tour drives.

FLHR ROAD KING

• Age-40-45

• Income-Rs 70 lakhs and more

POSITIONING:

Among Premium Bikes, Harley Davidson is a brand of high-performing cruisers that has been giving a unique riding experience to bikers since 1903.

MARKETING STRATEGY:

All the marketing communication made will be centered on the positioning statement of the product. In addition to it, The Communication will focus upon the brand personality which will mirror the aspirations of the prospects and will encourage them to make the bikes & the brand a part of their lifestyle.

We will target:

1) HNI: People who Golf, Who Own Yachts, Indulge in leisure activities. (Yacht owners are in Kochi, Goa & Mumbai). Obtain data from State Maritime Boards and Mail Brochures to generate leads or be physically present there and engage the prospective customers. (Many of these yacht owners live in non-coastal areas of Delhi and Punjab. Source : Telephonic Conversation with Capt. Mathews (CEO) Nautilus Yachts)

Quality Lead Generation: Engage the prospective customers at places they are likely to visit: Auto-Expo, Yacht Clubs, Golf Clubs, Hard Rock Cafes etc. and then collect contact information there. Engagement Strategies will vary from place to place.

2) Hospitality Segment: Hoteliers, Resort owners in tourist destinations are always looking to add new luxury items into their fleet for their clients to indulge into leisure activities. Premium Hoteliers in Manali , Shimla , Kolkata (North East) along with others located near the strategically located

dealerships of Harley Davidson . ( Pitch : Include a Ride to Himalayas on a Harley for guests in their holiday planners)

3) HOG Culture: To cultivate a loyal biking community, one

must drive lessons from social networking websites. Invites for friends, recommend Harley Experience to a friend, list building by asking for emails can help create a network of Harley Enthusiasts. (Readers Digest added many new customers by getting recommended themselves by the prospect’s knowns. This may seem to be an obsolete strategy but can be made very effective if done with a touch of class. For Eg : The New Owner’s photograph is taken on a Harley at the time of purchase (HOG hall of fame). The Photo is Pimped and then shared with the person via mail or a facebook application. Now this person is very much likely to share this with his knowns living nearby and far and thus generating a buzz among his knowns , giving us the valuable Word of Mouth. The fb application will actually ask the person to send invites to people for riding with him on his new Harley)

4) Clubs & Parties : Many Wealthy businessman and their 2nd generation kids party at places like F-Bar (Hotel Ashoka Delhi) , Score (Chandigarh) etc. where during festive season Harley Davidson can Organize parties that leave an impression on the attendees. Few of these attendees will certainly be induced into buying a Harley if they are made to engage with the Brand while attending these parties.

Tactic 1: “Eye-Candies showing admiration for the Cruisers which in turn generates interest in the cruisers among the target customers” Tactic 2: Theme Based parties, Story-Telling while live bands are performing. (Pictures on LCD’s dynamically changing with the change in modulation of sound) We make sure to collect contact information of the interested people. (To ensure that these prospects are brought to the showroom from these clubs or cafes for further interaction and eventual sales)

Marketing Mix

1) PRODUCT AND PRICE :

PLACE :

PROMOTIONS

Integrated marketing channels

000

FOUNDER’S RIDE 30th AUGUST 2009

BOOT CAMP 14th NOV 2009

LAUNCH AT DELHI AUTO EXPO 5TH JANUARY 2010

MEDIA RIDE 25th FEBRUARY 2010

ROCK RIDERS 9th SEPTEMBER 2010 TILL DATE

RALLIES TO PROMOTE HOG EVERY TWO MONTHS IN 2011

Cost incurred on the various integrated marketing channels

Print media

The above rate card is for Business world which falls under the category of business magazines

Assuming that they post it on the front and back gate fold the total cost of visibility is

1. Business world- Rs 187500/-

2. Business today- Rs 250000/-

3. Overdrive - Rs 100000/-

4. Total cost- Rs 537500/-

Once advertisements have been given on the front and last page for initial visibility slots on the inside the

magazines can be booked at cheaper rates.

Television commercial

A 30 second advertisement on a premier nationwide channel would cost approx Rs. 17500000. Total cost for 3

channels like CNBC, ZOOM, FTv would be Rs 52500000/-

Billboards

A 40x40ft billboard at Mahim, Mumbai, would cost about Rs 14-16 lakh a month. Considering that 3-4 such

billboards will be put up to cover posh areas of all the places where the showroom has been opened up (

Chandigarh, Hydrabad, New Delhi, Mumbai, Bangalore) the total cost of using billboards would be approx

15*3*5= Rs 22500000/-

Rallies & HOG Parties

Cost of promoting a rally is approximately around Rs. 250,000/- and 5 such rallies in the major cities would cost

around Rs 12, 50,000/-.

Total budget for advertising therefore is Rs.7,12,50,000 /-

All these costs are shown as one time but over the time the spending on the print media will remain

consistent but the cost incurred on rallies would be reduced. Rallies would be only once a year at one location

but the cost incurred on print and Television would be year round.

Pie chart depicting various costs :

print media

television commercial

billboards

rallies & hog parties

APPENDIX :

The Income Groups were calculated on the assumption that the person buying the bike pays 20% on the bike upfront and then pays installments over a 5 year period. http://www.harley-davidson.in/harley-davidson-india-emi-calculator.html

The Market Potential and Growth Rate was taken from ET Articles and SIAM (Society for Automobile Manufacturers)

Cost Structures were requested to various magazines.