“Its all about independence, freedom, and power”

“You don't see people tattooing Yamaha on their bodies”

“Four wheels move the body,

Two wheels move the soul”“Its much more than a

machine”

PRICING STRATEGIES

H.O.G

Dhruv Chronicle

Dipika Marketing Strategies

Adarsh Demographics

Kaustub Pricing StrategiesNamratha PLCSivaditya H.O.G

MISSION –VISION Is to fulfill the dreams of motorcyclists and the general public and to expand the line of motorcycles and branded products and services in their selected market segments.

Is to improve its relationships with stakeholders (customers, suppliers, employees, shareholders, government, and society).Harley Davidson believes the key to success is to balance stakeholders’ interests through focus on value-added services.

chronicle1901: William Harley and Arthur Davidson started company 1903: They made available to the public the first production Harley Davidson Motorcycle. Three were built and sold. 1904-06: Production increased to eight motorcycles. First factory was built on Chestnut street (Harley Davidson’s headquarter today.)1907: The company was officially incorporated.1918: Almost half of all Harley Davidson motorcycles produced are sold for use by the U.S. military in World War I (20,000 estimated used by the war’s end).1920: Harley Davidson is the largest motorcycle manufacture.1933: An art-deco “eagle” is painted on all gas tanks.1945: World War II ends and HD has produced almost 90,000 models for military use.1969: HD merges with American Machine and Foundry Company (AMF), a longtime producer of leisure products.

1981: Vaughn Beals, head of HD, and 13 other executives conducted a leveraged buyout of the company for $65 million.1985: Citicorp refused to lend HD any more funds, 4 hour. 1993: Acquired 49% interest in Buell Motorcycle Co. , a manufacturer of sports performance motorcycles. Buell’s mission was to develop and employ innovative technology to enhance “the ride” and give owners an experience no other brand could provide. 1995: HD acquired Eagle mark Financial Services, Inc. They provided credit to product manufacturers , their dealers, and customers in U.S. and Canada. 1996: They concentrate their financial and human resources on its core motorcycle business.2000: Several models were introduced. First female racer added to Harley Davidson racing team in an effort to capture female support.2007: Harley Davidson Financial Services financed 55% of new HD motorcycles retailed by independent dealers in the U.S.

Marketing Strategies HARLEY DAVIDSON AS A BRAND

Long-term relationships with the customersHarley Davidson – Brand ValuesFreedom – Go wherever you want to, whenever you want to.Authenticity – Noted for the tradition of heavy customization, Oldest and quality name in manufacturing bikes.Community Building– HOG has 1.4 million members, Ride Planner to plan trips, H-D Photo Center for posting photos of memorable trips.

Rituals Community festivals and monthly or annual rides/events are conducted regularly, buttons and pins from an activity/event are worn on jackets.Masculinity : Unique sound of the exhaust, association with icons in films.Toughness : Rugged heavy design and look of the bikes.Brand Extension.

Brand over-extension.

SEGMENTATION TARGETING POSTIONING

DEMOGRAPHICS @ 2012

Retails sales : 70,517 vehicles

Share Price : $ 67.44

Total Income : $ 623,925,000

U.S Market Share48%

Europe Market Share 9%

Asia Pacific Market Share 9%

DEMOGRAPHICS @ 2012

EPS : $ 2.72Dividend / Share : $ 0.62Operating Income : $ 284.7 M

HD in Pune

PRICING STRAGIES

PremiumValueGeographicalPsychological

PremiumIt is strategy in which

setting higher price for the similar products.

Skim the cream

Prices of Harley DavidsonIn Rupees

SPOSTER 6,95,000- 11,95,000

DYNA 13,95,000-15,45,000

SOFTAIL 18,45,000-19,45,000

V-ROD 18,95,000

TOURING 20,45,000-21,95,000

CVO 34,95,000

ValueIt creates prices base on the

customer value.Customer delightment and

satisfaction.Niche market.Value pricing against Japanese

producers.

Prices of rivals

KAWASAKI NINJA 2,70,000

SUZUKI HAYABUSA 12,50,000

DUCCAITTI 14,09,705

YAMAHA YZF 12,50,000

Psychological pricing

Its denotes as the symbol of royalty

Durability

Masculinity

Brand name

Willingness to pay more

PRODUCT LIFE CYCLE

110

SWOT ANALYSISSTRENGTHS

Domestic and International Market shareProduct qualityStrong brand loyaltyH.O.G.s (Harley Owners Group) & B.R.A.G. (Buell Riders Adventure Group)Strong distribution network

Harley Davidson does not emphasize price in it’s product

Harley Davidson has had difficulty gaining market share in some European countries.

WEAKNESS

OPPORTUNITIES

The international heavy weight market is growing and almost as large as the U.S. heavyweight market.

Women and younger riders are increasingly becoming interested in bikes – Japan has more female H.O.G. members.

Alliances with other automobile manufacturers are possible.

Industry registrations of domestic heavyweight motorcycles are increasing.

Customers value quality parts and accessories.

THREATSHarleys ongoing capacity restraints caused a shortage of supply and a loss in domestic market share in recent years.

Harleys average buying age is 46 years old and increasing.

Some competitors of Harley Davidson have larger financial and marketing resources and they are more diversified.

Shifts in buyer needs and tastes.

Customer loyalty in European and Asia countries.

Costs could become expensive from international importing – for example – in India 60% tax on total cost for importing an automobile and 30% road tax.

H.O.GHarley Owners Group

What is this H.O.G ?

What makes buyers so loyal ?

What is the reason behind high price ?

Do you know that many people buy H-D just to join in H.O.G ?

1000000 members in H.O.G

Customer Loyalty & Retention Program. Offer members special benefits and create member communities

H.O.G, gives Harley riders a way to share their common passion of making the H-D dream a way of life

H.O.G benefits include 2 magazines HOG Tales and Enthusiast.

Fly & Ride program enables members to rent Harleys

That’s a little about Harley