Case Study Harley Davidson
Department of Marketing IV
Prof. Dr. Florian Kraus
University of Mannheim
Fall term 2011
Veilleux, Jacques-Olivier-1345802- email@example.com Vela Loira, Valentin -firstname.lastname@example.org
Viscosi, Jennifer - 1344990- email@example.com
Wang, Yi - 1326001 - firstname.lastname@example.org
Wijma, Ludwig - 1346338 - email@example.com
Yip, Lu Yi - 1342949- firstname.lastname@example.org
Mannheim, November 2011
Table of contents
CASE STUDY HARLEY DAVIDSON
Question 1) CUSTOMER RELATIONSHIP TOOLS
Question 2) CENTRAL ADVANTAGES OF A STRONG BRAND COMMUNITY
Question 3) WOULD YOU RECOMMEND HD TO IMPLEMENT A BONUS SYSTEM?
LIST OF REFERENCES
Harley Davidson was created in 1903 by William S. Harley and Arthur Davidson in Milwaukee, Wisconsin, when the first Harley-Davidson motorcycle became available to the public. Arthur’s brother’s Walter and William later joined Harley and Davidson’s efforts. Four years later, on September 17, 1907, Harley Davidson was incorporated and the stock was split four ways between the four founders. Staff had doubled from 1906 to eighteen employees and the factory size was also doubled. 1907 also marked the beginning of dealer recruitment, which was focused in New England. By 1920, Harley Davidson had become the largest motorcycle manufacturer in the word. (Harley Davidson 2011)
At the time, the company was already selling their products at over 2 000 dealers in 67 different countries. Nowadays, their products include motorcycles, parts and accessories as well as branded clothing. They also offer services such as a driving course and the possibility to test-drive any of their bikes. The company is well known because of its unique V-twin engine and the great sound that it procures. Harley Davidson is also the only major U.S.-based motorcycle manufacturer, which allows them to gain royalty since consumers may tend to “buy America”. Today, Harley Davidson has over 6 300 employees and is listed at the New York Stock Exchange. The company’s overall objective is to answer the needs of the recreational mobility market. (Harley Davidson 2011)
The motorcycle market is quite big. In the USA alone the market is expected to reach 21 billion by the end of 2011. This market is male dominated, with 90% of consumers being male and only 10% being female. Furthermore, 75% of the market is comprised of people between the ages of 31 and 60. (KNOL website 2011) As you can see on Figures 1,2,3,4 and 5 (See Appendix), Harley Davidson dominates every category of the market that it is focusing on. Harley Davidson’s market share is constantly growing. The market share for the core customer in the USA is 60.8% for Harley Davidson. Its nearest competitor’s market share is 10,1%. For the young adults segment, in 2010, Harley Davidson’s market share was 48,6%. The nearest competitor’s market share was 11,4%. For women, the market share was 64,1% for Harley Davidson and the nearest competitor’s was 11,8%. Finally, for the diverse customer like African Americans or the Hispanic the market share was more than 50% for Harley Davidson and the nearest competitor occupied only 13,7% of the market.
It is important to note that Harley Davidson is currently executing a multi-generational and multi-cultural marketing strategy in the U.S.A. The core segment is to target men over 35 years old. They are also targeting an outreached market: young adults (men and women aged 18-34), women 35 years old and older and both African-American and Hispanic men and women aged 35 years and older. As you can see on Figure 6 (See Appendix), the average annual salary of a Harley Davidson buyer was 85 000 US dollars in 2010. This figure allows us to conclude that Harley Davidson targets those who make above average salaries, or those who are willing to invest in this...
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