Group #3

Mohit Mahal - 12020841029Ankit Suveer - 12020841067Advait Bhobe - 12020841116Sharad Gupta - 12020841117Monika Solanki - 12020841030Vrushali Sawant - 12020841174

Introduction• Harley-Davidson 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.

• Harley-Davidson also survived a period of poor quality control and competition from Japanese manufacturers.

• The company sells today only heavyweight motorcycles with over 700 cc, designed for cruising on highways. Harley-Davidson motorcycles, or "Harleys", are noted for the tradition of heavy customization that gave rise to the chopper style of motorcycle.

• Harley-Davidson sustains a large brand community which keeps active through clubs, events, and a museum.

• Licensing of the Harley-Davidson brand and logo accounted for $40 million (0.8%) of the company's net revenue in 2010.

• The company sells today only heavyweight motorcycles with over 700 cc, designed for cruising on highways. Harley-Davidson motorcycles, or "Harleys", are noted for the tradition of heavy customization that gave rise to the chopper style of motorcycle.

• Harley-Davidson sustains a large brand community which keeps active through clubs, events, and a museum.

• Licensing of the Harley-Davidson brand and logo accounted for $40 million (0.8%) of the company's net revenue in 2010.

Time Lines• 1901 – William Harvey completes the blue print of the engine that would into the bike.

• 1910 –The famed ‘ Bar & Shield’ logo was used for the first time. It was trademarked at the US Patent Office one year later.

• 1920s - The first HD engine was made available to the public. The bike is capable of speed between 85- 100 kmp.

• 1933 – An art- deco design ‘eagle’ is painted on all the gas tanks.

• 1953 – HD celebrates it 50th Anniversary in style. New logo is created

• 1979 - HD introduces the FEFX Fat Bob. ‘Fat’ because dual gas tanks, & ‘Bob’ because of the bobbed fenders.

• 1983 – Harley Owners Group (HOG) Harley Davidson’s unique community is formed.

• 1990 - HD FEFX Fat Bob is released. It was hailed as the modern bike design then.

The Harley-Davidson motorcycle. Twice at the brink of bankruptcy since the 1960's, the Harley-Davidson Motor Company and its parent, Harley-Davidson Inc., have undergone a stunning metamorphosis in the past decade, fueling a level of demand that is the goal of corporate chieftains everywhere.

This case depicts the turn around of this American brand and how it was able to not only survive but also enhance its standing in the highly competitive and lucrative market for big motorcycles, where it had been pummeled for years by waves of aggressive Japanese imports

Harley has also extended the brand's reach to previously untapped businesses as far afield from two-wheel behemoths as fashion and food. Having largely reinvented itself, as both a company and a brand, the Milwaukee-based motorcycle maker is now reaping the benefits of a hip.

With its feet firmly planted in both the present and the past, Harley offers traditional -- many say retro -- styles and the best, most-refined 1940's technology around. That approach -- marked by ample bulk (some models weigh almost 800 pounds, about twice that of otherwise comparable BMW machines)

Case Summary

• HD offers the blend of what is called as retro and classic designs with modern technology.

• What makes Harley enjoy the brand equity it possess is, the plain fact that the motorcycle it makes is not just a product but rather the centerpiece of a lifestyle.

History

Today

Visual Identity• The Logo• The layout and format of the Showrooms.• The notorious, distinct sound they make.

– The sound is so uniquely associated with these American-made motorcycles that before you even see it, you know what it is. You know what's coming.

Brand Differentiation• Till '80s the company referenced the quality

workmanship and materials that went into these bikes. They also used power of the engine and the speed of the bikes to differentiate.

• Their marketing initiatives were largely about feature and attributes i.e differentiation.

• After the advent of the Japanese manufacturers the company learnt new lessons.

• The Japanese were global, into long-term strategic planning, did a lot of advertising and had great diversity in their global markets. They could take a concept from idea to product in 18 to 24 months.

• The HD team analyzed the competitor and their strengths.

Contd.• The were able to infer that the Japanese

manufacturer would be competing more on the feature and attribute. i.e POD( new engines, new frames, new suspensions, very high-tech).

• HD took alternate path .

• Harley made a clear choice to stay with its traditional styling, a classic 1940's and 50's design that aficionados believe motorcycles were meant to have.

• They leverage their classic and traditional design heritage.

• HD offers the blend of what is called as retro and classic designs with modern technology.

• Harley’s branding strategy post this period went beyond the realms of differentiation.

POP• The advent of Japanese manufacturers marked the change in

rules of the game.

• The quality and operational excellence became the POP for the industry.

• To be in the race HD applied the concept of Japanese-style manufacturing and quality-control methods.

• Unless the bike was amongst the fastest the engine Horsepower and pickup were also one of those mandatory concepts.

Brand Positioning• Harley has come to symbolize freedom,

rugged individualism, excitement and a sense of "bad boy rebellion.“

• The bad boy and macho image was tried to enforced with various associations and ads.

• • The Steps they took as a part of brand

positioning exercise.

• HOG

Hog Community• The Harley Owners Group (HOG) is a sponsored

community marketing club, operated by Harley-Davidson for enthusiasts of that brand's motorcycles.

• The Harley Owners Group was created in 1983 as way to build longer-lasting and stronger relationships with Harley-Davidson's customers, by making ties between the company, its employees, and consumers.

• HOG members typically spend 30% more than other Harley owners, on such items as clothing and Harley-Davidson-sponsored events.

• Much of the intent of this branding effort is presenting Harley-Davidson as an American icon, with the focus on authenticity and pride in being American-made.(The bald eagle is national bird of the United States)

Construct of Core Values• Harley-Davidson stands for independence, freedom, individuality,

expressing one's self, adventure on the open road, and experiencing life to its fullest."-Joanne Bischmann, VP of Marketing for Harley-Davidson.

• Slogan for latest tour campaign is – “Find your Freedom”.

Brand Identity• HD went from focusing on how the

products were made-the quality workmanship and materials-to the dream and passion of the bikes.

• It's not about what the motorcycle does. It's what it will do for you.

• HOG gives the owners a sense of belongingness. What bonds them to the bikes -- and ultimately to each other, at rallies and other events -- is a mutual appreciation of the look, feel and sound of

the machines.

Kapferer Model of Brand Identity

Relationship Culture

Self ImageReflection

PersonalityPhysique

• American spirit• Individuality• Rebellious• Freedom

• American spirit• Individuality• Rebellious• Freedom

• Harley Owners Group (HOGs)

• Harley is not for everyone

• Harley Owners Group (HOGs)

• Harley is not for everyone

•Rebel•The enthusiasts•Rebel•The enthusiasts

• Joy of individualism

• Commitment to adventure

• Reward of fulfillment

• Joy of individualism

• Commitment to adventure

• Reward of fulfillment

• Inventive design• Custom cruisers• Loud & powerful

engines• Dealer

development• elegance of 40's

classics

• Inventive design• Custom cruisers• Loud & powerful

engines• Dealer

development• elegance of 40's

classics

•For love of the open road•Lingering loyalty for their products into a revived passion

•For love of the open road•Lingering loyalty for their products into a revived passion

Brand Equity• When an individual buys a Harley Davidson

they perceive to be buying much more than a mode of transportation.

• That kind of passion explains how Harley has been able to cross so many socioeconomic boundaries.

• What bonds them to the bikes -- and ultimately to each other, at rallies and other events -- is a mutual appreciation of the look, feel and sound of the machines.

Contd.

• As production shortfalls over the past six or seven years have led to waits of up to two years for new bikes, the value of used Harleys has skyrocketed and owners can often sell their machines for more than they originally paid.

• The company hardly spends on advertizing.

• In 1996, Harley spent not a single penny on advertising

• The company's bikes are so cool that it puts them in ads for countless other products, giving Harley millions of dollars' worth of free exposure.

Brand Portfolio Analysis Motor Cycles

• Customization: There is a huge aftermarket for Harley parts

and customizing kits. Personalizing a Harley by innovative paint

jobs, scads of new chrome and pricey saddlebags has become its own time-honored Harley tradition.

Bike Accessories:

Buell motor cycles: wholly owned subsidiary of Harley by 2003 (closed now)

Brand Extension

HD for Women

Brand AlliancesUSA: Shell and Harley Davidson (joint communication)

Offers about mapping oil-pit stations through the HD ride planner

Shell also will be the exclusive fuels sponsor of the Harley-Davidson 105th Anniversary Celebration in August 2008 (joint communication)

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Contd.

Contd. In France: Lenôtre and Harley Davidson via the agency Fidback. (joint communication)

Lenôtre, creator of High Fondness and the American legendary brand Harley Davidson joined with the agency of Fidback communication to present Wafer of Kings

Harley Davidson, limited edition 2011: cake eaten in France on Twelfth Night.

These two famous brands have strong common values: the share, creativity, quality and the requirement.

The seven silver bean and engraved emblematic symbols of Harley Davidson were hidden in the cakes but also proposed in box collector (symbolic co-branding)

Contd. Ford and Harley Davidson: Trucks (ingredient co-branding)

Ford and Harley-Davidson delivers a new standard of "custom cool," combining the smooth handling and legendary durability of America's best-selling truck with the authentic styling of Harley-Davidson.

This successful co-branding, unmatched in the industry, offers customers true specialized truck luxury. The Ford brand linked with an industry leader to offer the best of the best.

Contd. Bell & Ross and Harley Davidson (ingrédient co -branding)

Luxury watch maker Bell & Ross have teamed up with british bike customizers Shaw Harley Davidson (the most distributing) to create this custom chopper: the Bell & Ross inspired Nascafe Racer.

Contd. Gibson and Harley Davidson (joint communication)

Harley-Davidson and Gibson Guitar hosted “Night of Custom”, celebrating the art of ‘customization.’

Bringing together music and motorcycles, the event saw exclusive music performances including a phenomenal set from British rock band Feeder who headlined in front of an intimate audience of 100 people .

Similar to the Harley-Davidson motorcycle brand, no other musical instrument brand encapsulates the Rock and Roll culture like Gibson.

The Turnaround

• The Japanese competitors, such as Honda, Kawasaki, Suzuki and Yamaha, along with German giants like BMW, have taken straight aim at the heavyweight or so-called cruiser market, which accounts for about 45 percent of total motorcycle sales in the United States.

• And while they have captured a bit more than half of that market ,producing high-quality machines that look and sound something like Harleys, while costing less , they have been unable to match the Harley mystique at least in US it can be said.