harley davidson

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ADM 4322 - Marketing Strategy Ali Mirza Asif A. Ali Justin Joshua Chieffallo Matt Conley Raj Gill Shana Tannis

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Marketing Strategies: Past, Present and future for Marketing Strategy course at Ottawa U

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  • 1. Ali MirzaAsif A. AliJustin Joshua Chieffallo Matt ConleyRaj GillShana Tannis

2. Harley Davidson: Summary ThePast: The Good, The Bad and the Ugly The Present: 2007 2012 The Future: Where is the brand going? Conclusion 3. Harley-Davidsonwas founded in 1903 in Milwaukee, Wisconsin. Thecompany incorporated in 1981 and went public in 1986. Theycurrently sell at 1,300 different dealerships in 70 countries. 4. Builta Community and Fostered a Sense of Belonging Repositioned Brand without Alienating Traditional Customer Base Built an Extremely Strong and Highly Recognizable Brand Created Added Value 5. Sponsorship of Harley Owners Group (H.O.G.) in 1983 We are committed to motorcycling. Its not hardware; it is a lifestyle, and emotional attachment. Thats what we have to keep marketing to. - Richard F. Teerlink, Harleys former chairman and former chief executive 6. Association with the Muscular Dystrophy Foundation Group begin riding for charity (1980s) Harley Davidson Foundation Supports educational, health, and environmentalcauses in local communities 7. All-American brand that symbolizes freedom Recognition dates back to World War II Culture promotes and represents: Individualism Freedom Non-conformism Empowerment Most people cant understand what would drive someone to profess hisor her loyalty for our brand by tattooing our logo onto his or her body orheart. My fellow employees and I understand completely. - Richard F.Teerlink, Harleys former chairman andformer chief executive 8. Ride Free marketing campaign Aftermarket for Harley parts and customizing kits Value of used Harleys has skyrocketed 9. Poor Quality Brand Over Extension Narrow Target Market Negative Perception 10. Over Production Leads to Poor Quality Oil Leaks CompetitorBikes Lighter Quieter Better Handling 11. Began to Extend the Brand Too Far Wine Coolers After Shave and Perfume Cake Decorating Kit Upset Brand Loyal Consumers Wanted Company Focus on Bikes and Bike Accessories. 12. Middle Aged Men (Ad) Limited Consumer Base Put Harley Davidson in a Niche Market Only Targeting Middle Aged Men Ultimately Limiting Harley Davidsons Out reach 13. Harley Davidson known as a Hells Angles bike. 14. One-size-fits-all agency solution. Market Share dropped from 48.8% to 45.6%. US sales dropped 9.4% in first quarter 2007. Target new segments: Youth Women & Minorities 15. Research showed they liked less-chromed,light and smaller bikes with heritage classicstyle. H-D added a product line: Dark Custom Price was an obstacle: 883 Iron Sportster. About six bucks a day. Cheaper than your smokes, A six-pack, a lap dance, a bar tab, another tattoo, a parking ticket, a gas station burrito or more black T-shirts Negative connotation AD Result: Young-adult segment went from beingworse to best performing segment in 2008. 16. Empowerment and Liberating theme. Garage parties and women riders month: Women onlyenvironment, sharing experiences and learning. Educational Program: learn to ride over the weekend,meet other riders. One in four riders is a woman. 17. Crowdsourcing: and user generatedcontent. New targeted segments: Masscustomization Build your bike, build your freedom 18. Theme: Liberation, Individuality,Independence, Empowerment Campaign: No Cages AD (Liberation) 19. Social Media Campaign:#StereoTypicalHarley AD 20. Traditional styling e.g. features and design Building a positive image Organizing promotional events Milwaukee. 21. Extending the brand e.g. merchandise Extending the enterprise Adding value Training new riders 22. Harley-Davidson is a relevant brand because it represents America. The brand relies on two factors: Relevance to Americans Global Admiration of American Culture 23. Nearly1 in 5Americans will bean immigrant by2050. Current ratiois 1 in 8. Americans ofHispanic origin willbe 1/3 of thepopulation by 2050. 24. Its not quite new apparently the Harlistagroup is 50 years old but it has beengrowing quickly in recent years. 25. Alejandra is a Harley-Davidson fan http://www.harley-davidson.com/en_US/Content/Pages/harlistas/harlista_stories.html?locale=en_US&bmLocale=en_US# 26. In 2006, Harley-Davidsonopened its first full servicestore in Beijing. Today, ithas 8 different locationsacross China. Typical customers inChina are between theages of 35 and 55 years Use in China is for leisureriding only 27. Inrecent years, Harley-Davidson has increased sales % Internationally. 28. Inrecent years, Harley-Davidson has increased sales % Internationally.Sales have declined 5.2% in 2012 in the US Latin America sales (Brazil and Mexico) have increased by 32%Sales in Asia are up 9.8%Overall International Sales 7.6% 29. Harley-Davidsonscore strength is theirability to maintain their image, through anymeans and methods possible. Their success is not contingent on bikequality. The day they stop being American orAmerica stops being admirable theywont be around.