Harley Davidson

A Debacle in Europe !

Group – 9
Priyanka Hans (46)
Puneet Vishwas (47)
Rajesh Jha (48)
Rajiv Piplani (49)
Rajneesh Panwar (50)
“I would rather push a Harley than
drive a Honda”!

Does the Image Justify the Prices ?

Harley Davidson (HD) Corporation
Mission Statement
“To fulfill the Dreams through the
experience of motorcycling, by providing
the motorcyclist and the General Public an
expanding line of motorcycles, and
branded products and services in selected
market segments”

A clear cut Contradiction !!

 HD Corporation
Offerings :
• Complete range of motorcycles
• Spare Parts
• Accessories
• Apparel
• General Merchandise
• Preparing Future Generation of HD
Enthusiasts
 HD Brand Image
Strengths : Strong Image and Sound customer
base
• Traditional Looks
• Sound
• 100 yr Legacy and Heritage

HD is an All American Symbol of :

• Desire for Freedom
• Adventure
• Individualism
 HD Customer Relationships
• Variety of programs thru Harley Owners
Group
• Daytona Bike Week
• Motor Shows
• Rallies
 HD Weaknesses
• Facing Stiff competition from Honda and
Yamaha
• Small Production Capacities
• Unfulfilled Demand for their products
• “Own an American Icon” Slogan
 HD Threats
• Sales are declining as the Average Age is
increasing.

HD New Developments
• Releasing new motorcycles :Buell” for
Young Professionals and Women !!
(Women buyers are just 10% ) as per Motor cycle
industry Council.
 HD Pricing
• Charges 30% premium over all other players.
• International Markets – 25% of share except
European Union.
• HD could not get a respectable share in Europe.
• Europe Likes Cruiser Bikes of Harley but not the
aggressive prices.
• Some bikes shipped back to US due to lack of
demand.
 European Market Share

BMW Harley
20% 9%
Honda
27%

Suzuki
20%

Yamaha
24%
Question & Answers

Analysis & Recommendations

 Harley Pricing Objective
Based on the 4 Cs of Price Variations :
• Company Goals
– Here the company’s goal is not to make extra profits but to project
a premium image.
• Company’s Cost
– Not relevant in Harleys case.
• Customer Demand : is a function of buying power, tastes,
habits and substitutes.
– Customers in EU have buying power, habits & substitutes but do
not have similar tastes.
• Competition
– Harley feels that there is a little competition in the premium
segment.

Harley Need to Redefine the objectives

 Harley Pricing Strategy !
Price
Higher Lower
Higher
Quality

Premium Good-Value
Good-Value
Strategy Strategy
Strategy
Lower

Overcharging
Overcharging Economy
Economy
Strategy
Strategy Strategy
Strategy
 Global Positioning Strategy- HD
Segment
Uniform Different
Uniform
Position Themes

1 22
Different

33 44
Global Positioning Strategy- HD
• HD adopted Uniform Segment Uniform theme
“Hedonism” for positioning the Bikes.
• HD was positioned considering Global Consumer Culture
similarity of Individualism, Musculanity, Adventurism and
Close Power Distance.
• “Own an American” and pay premium for the same had its
own doubts of success.
• Among the peers HD was positioned “Premium Bikes” vis-
à-vis Japanese and German Bikes.
• Wrong positioning and premium pricing led to low market
share and sales return in many cases.
 Price Alteration ?
• Mere Price Alteration may not improve
market share for HD.
• Thus a Balance between Pricing and
Positioning mix may be a better
alternative.
 Action Plan for Europe ?
• HD needs to get associated with European people.
• “Universal Segmentation and Different Positioning
Theme” is better option.
• Standardised Product but adapted communication can
be a better product.
• “Own an American” can be replaced with “Harley
Davidson for Europe” or “European Harley”.
• HD to initiate assembly of Bikes in Europe to economise
the cost and to justify the European Association.
• HD should respond to the EU need by selling at
competitive prices to create loyalty and then it can take
up the Hedonistic Approach of driving experience.
Thank You