Strategic Brand Management
Case study: Harley-Davidson
Custom Vehicle Operations program (CVO)
Harley Owners Group (HOG)
Exchange of motorcycle
Companies can learn from H-D
Co-branding or not?
Make a detailed SWOT Analysis of the Harley-Davidson Company, paying particular attention to the marketing mix (Product, Price, Promotion, Distribution, Personnel)
* Net income of 2003 was $760mn, its more than 30% as compared to the previous year 2002 ; * The standard and performance segments of Harley Davidson make up 70% of the European heavy weight motorcycle market ; * Harley-Davidson operates in two segments: Harley-Davidson motorcycles & related products and HDFS (Harley-Davidson Financial Services) ; * Harley-Davidson is the only major American heavyweight motorcycle manufacturer ; * Strong brand name ; * The HOG (Harley Owners Group), which have a 750,000 members worldwide is the industry’s largest company sponsored motorcycle enthusiast organization ; * Buell Riders Adventure Group (BRAG) was also formed recent ; * Customization of the bikes, this is Harley-Davidson’s major revenue maker; * Harley-Davidson have a good marketing division and its divided as dealer promotions, customer events, magazine and direct-mail advertising, and public relations.
| * High price ; * Harley-Davidson has problems in gaining more market share in some European countries (That’s one of the main markets for Heavyweight motorcycles outside U.S) ; * They didn’t yet start its sales in India, one of the biggest markets ; * Required production is not met, analyzing the future of Heavyweight motorcycle market.
* The European demand for Harley Davidson is the highest in the international market and represents the single largest motorcycle market in the world ; * Women and younger riders are increasing becoming interested in bikes ; * The international heavy weight market is growing and is now larger than the U. S. heavyweight market ; * Market share increasing in Europe and Asia for the last two years ; * Increasing demand in US markets for bikes ; * Customers value quality parts.
| * Harleys ongoing capacity restraints caused a shortage supply and a loss in domestic market share in recent years ; * Harleys average buying age is 42 years old and increasing ; * The European Union’s motorcycles noise standards are more stringent than those of Environmental Protection Agencies in the U.S and increased environmental stand ; * Some competitors of Harley Davidson have larger financial and marketing resources and they are more diversified; * Environmental protection laws ; * Buell division needs to continue to produce a quality motorcycle under Harley’s brand name.
Identify all of Harley-Davidson’s Brand Elements and assess their ability to contribute to brand equity according to the choice criteria discussed in the lecture and in Chapter 4 of the textbook.
1. Brand elements
Names: Harley Davidson
URL - Website addresses: www.harley-davidson.com
Logo: “Bar & Shield” logo
* American icon of freedom and liberty and long distance riders. It was based on a pattern of associations which comprised the American flag and the eagle, reflecting the passion and freedom enjoyed by the Americans. * Harley Davidson has come to symbolize freedom, rugged individualism, excitement and a sense of “bad boy rebellion” * Lifestyle product
* Flag and eagle
* Motorcycle riders wear black leather jackets and black t-shirts...
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