LMM358 Marketing Management Name: _________________________
Case Analysis For: _ Harley Davidson (marketing strategy)
___________________________________________________
Current Situation
A. Environment (Macro/External)
1.Economic
(General economy, consumers ability or desire to spend) Recession is the main economic problem facing the company since globally recession has become an economic crisis. Measures are in place however, to counter this problems, the company is considered to be recession proof since it was able to counter recession problem.
2.Social
(Trends that may impact this industry) Harley-Davidson populace has been influenced by its ability to produce environmentally friendly motorcycles in addition to manufacturing quality and standard products that attract customers.
3.Political
(Political activity affecting this industry) The company is facing problems dominating in sales in foreign companies due to political situations of some countries making the business less politically unfriendly.
4.Legal/Ethical
(Changes in law or ethical requirements affecting this industry)
5.Technology
(Current or upcoming technology affecting this industry or that could influence consumers thus affecting this industry) Harley-Davidson company focused on ongoing innovation; currently the company has embarked on evolution to ensure they remain unique and on top in the market. For instance, it has introduced a new engine called V-twin engine, teardrop gas tanks and oversized speedometer that have made customers to have faith on the company’s products.
B. Industry (specific
industry name i.e.
transportation, restaurant,
clothing, etc.) Industry name: motorcycle company
1.Competitors (who & what companies; market share)
Honda and Yamaha are the main competitors of Harley-Davidson.
The company however, has a large market share in US and neighboring countries.
2.Competitors
(strengths & weaknesses) Main competitors of Harley-Davidson exist outside the US that is the Honda and Yamaha companies. To counter competition the company has embarked on enhancing the quality of its products, reliability, and unique style. Outside the US the company has dominated sales in Japan; nevertheless, the company has dropped in sales in Asian-pacific countries due to high competition from Honda company which is rich in resources.
3.Potential Entrants
Threat of potential entrance does not exist because to start-up a motorcycle company large amount of capital is required.
4. Substitute
Products Customers are substituting Harley-Davidson motorcycles with sport cars and bicycles, especially in snow affected geographic regions.
5. Supplier position
The company has established a long lasting relationship with its suppliers thus switching from one supplier to another does not cost the company much. Generally, there no threats posed by suppliers.
6. Buyer position
The company has established dealerships that cater for buyers. The company has a large market share in addition to a large base of customers if one buyer opts out the company will not feel threatened.
7. External Threats,
Opportunities The company is facing the threat of increased tariffs on imported resources such as steel needed for manufacturing their products.
C. The Organization (internal)
1. Clear Mission, Vision,Objectives, Strategy The objectives and goals of Harley-Davidson company include fulfilling people’s dreams of gaining motorcycling experience by providing, to its customers diverse cycling products and services.
2. Strengths &
Expertise The company has established a good brand name for itself for many years; in addition the company also uses its logo on other products to strengthen the brand name. Manufacturing of quality, and diverse products has been the main area of expertise for the company. The company also enjoys a stable financial position that assist provide required resources to the company.
3. Weaknesses –
Limitations Harley-Davidson has focused on making motorcycles for the male gender forgetting the growing female gender customer base. Although the company has embarked on curbing this weakness by manufacturing female friendly motorcycles. The company also faces the weakness of lack of dominance in European countries, because of existence of Suzuki and Honda companies that give competition.
D. Marketing Strategy
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1. Strategy &
Objectives
clearly stated Consumers agree that being in possession of a Harley-Davidson product is like being an American icon. the objectives and goals of Harley-Davidson are;
• The company aims at fulfilling people’s dreams of gaining motorcycling experience by providing, to its customers diverse cycling products and services.
• The company uses technological innovation and creativity to its products so that they can still remain in the market, and also to counter their competitors for instance, Honda Company.
• The objectives if well implemented will assist the company to achieve its set goals and satisfy target customers’ needs.
2. Target Market (Who/groups/demographics)
The company targeted young males between the ages of 18-44 age groups.
3. Products offered
(Product Line)
Harley-Davidson provides motorcycles to motorcyclist and the public at large. The company also provides other renowned goods and services in selected market sections. The diverse services, and products offered by the company give customers a range of products and services to select.
4. Promotion
Of the 5 types which are primary, should they use others
Harley-Davidson should use advertisement, and commercials as their main promotional tools. From the 1980s the company has been using advertisement and commercials as their main tools for promotional and a majority of young people have always been intimidating in purchasing products from Harley-Davidson. Harley-Davidson can also establish a website whereby the company gets the chance to develop its workings online. The most crucial promotional tool is the brand image that promotes the product locally, as the people of America will be glad using a product manufactured in their own country and not imported.
5. Marketing
Research The company advocates to go international and export its products to other countries, before embarking on the idea the company must ensure the target customers will embrace their products, and services. The company must also be aware of the competitors providing similar products to the countries targeted for export. In addition, the company must ensure in order, to go international the political environment in targeted countries is conducive.
The company advocates increasing manufacturing motorcycles that are women friendly, since research shows the purchase of motorcycles by women has more than doubled.
II. Problem or Opportunity for Improvement
The company has the opportunity of designing smaller and sportier bikes in order to please the market requirements.
Based on the information that you have researched and listed above, describe your proposed change for the organization and how would you implement that change (using marketing strategies you have learned to date): [Note: After writing this section, copy and paste it to the specific DB question AND attached this completed form as an attachment].
Harley-Davidson should concentrate on product positioning to counter competition and to establish their stand in the market. The company should ensure the products sold are of reasonable and affordable prices, this will assist the company to attain smaller clients who are not quite financially stable. The strategy mix approach is an advisable because consumers will have a variety of products and services to select from. Building a strong brand name should be the main focus of expanding the market strategy as potential and target clients will be reached soon.
LMM358 Marketing Management Name: _________________________
Consumer Analysis For: _______________________________________________
I. Need(s) fulfilled?
(by this product/service)
Harley-Davidson fulfills the need of motorcyclist by providing them with high quality motorcycles, and other products that satisfies them accordingly
2. Who is the
consumer?
Males of the ages 20-44 who enjoy cycling; the female gender is accommodated too by the company.
3. Who/what
would influence
purchase?
Purchases would be affected by increased competition and economy downfall that influence buyers not to purchase Harley-Davidson products.
A. Culture/subculture
Harley-Davidson has been able to get pretty good reviews regarding their products and services, which has played an important role in the success of Harley-Davidson.
B. Social class
The middle class and upper class represent the majority of Harley-Davidson customers and has proven to be a successful strategic approach provided the company’s position in the market.
C. Family/reference
group It includes particular group of people that like to consume quality products.
4. How does
organization
influence
customer? (Product,
Price, Promotion, Place) The mission, vision, and objectives of a company will play a huge role in how well a company can influence it customers. Harley-Davidson has been able to influence their customers by sticking to their mission statement and providing good quality products.
5. How does
situation
influence
customer? Physical
features, social features, time,
current conditions, alternative
choices? Situations that would motivate a customer include standard quality, product uniqueness and diverse products. Harley-Davidson has been successful at influencing customers because and style to introduce new products.
6. Psychological
influence (Product
knowledge or involvement)
The psychological influence of Starbucks has been great because of the way the company penetrated into the market and succeeded very fast. This has been influenced by the word of mouth implications, which created brand identity. People were amazed with the standard of products of Harley-Davidson.
7. What consumer decision elements are involved? (Need rcognition, evaluation, purchase & post purchase evaluation.) There are various decisions elements involved in deciding to use Harley-Davidson products which include: price, quality, product variation.
