KOLEHIYO NG LUNGSOD NG LIPA

Marawoy-Dagatan, Lipa City, Batangas 4217

BUSINESS ADMINISTRATION Department
OperationsMarketing Financial
Kolehiyo ng Lungsod ng Lipa
Marawoy-Dagatan Lipa City

Bachelor of Science in Business Administration
Marketing Management

In Partial Fulfilment
of the
Requirements
in Strategic Marketing Management

Strategies in Action
Harley Davidson, Inc.

Submitted by:
FUNDAMIERA, JANINE ELIZABETH S.
LANDICHO, RONEL JOHN O.
NAYANGA, KARLA ANN G.

Submitted to:
Miss Marie Joahnna Aranda

August 8, 2014

KOLEHIYO NG LUNGSOD NG LIPA
Marawoy-Dagatan, Lipa City, Batangas 4217




BUSINESS ADMINISTRATION Department
OperationsMarketing Financial
Harley-Davidson is the largest manufacturer of heavyweight motorcycles in
the world by market share, capturing half the U.S. market and a third of the global
market. As a luxury good, Harley competes primarily on design and quality, rather
than price, which keeps margins high for the past several years.
Studying the case of Harley Davidson Inc for year 2009, it shows that
competition have significantly affected the companys sales performance. Major
competitors such as Honda, Suzuki, Yamaha, and BMW have wider territories in
terms of production and market share. However, sticking with the bad boy image
and American dream and spirit connotation, Harley Davidson is still on its journey on
bringing luxury motorcycles to male adults.
Given the marketing, sales, and distribution performance of Harley Davidson,
one can easily figure out why the company is still glorified as the number one
American motorcycle compared to its competitors in the United States.
The hundred year old company utilizes different strategy to survive
competition and imitation such as:

1. INTEGRATION STRATEGIES

a. Forward integration involves gaining ownership or increased control over
distributors or retailers. Increasing numbers of manufacturers (suppliers)
today are pursuing a forward integration strategy by establishing Web
sites to directly sell products to consumers.

Harley-Davidson has approximately 686 independently owned full-service
dealerships in the United States.

In terms of non-U.S. distribution, Harley-Davidson has 71 full service
dealerships in Canada, 383 in Europe, 201 in Asia Pacific, and 32 in Latin
America. The MV brand, to independent dealers primarily through
subsidiaries located in Germany, Switzerland, and the United States. In
Italy and France, MV distributes its products to independent dealers
directly. MVs network of approximately 500 independent dealers is
primarily located in Europe with approximately 40 independent dealers in
the United States.

KOLEHIYO NG LUNGSOD NG LIPA
Marawoy-Dagatan, Lipa City, Batangas 4217




BUSINESS ADMINISTRATION Department
OperationsMarketing Financial
The company Web site, www.harley-davidson.com, is also used to market
its products and services. The Web site features an online catalog that
allows retail customers to create and share product wish lists, use a dealer
locator, and place catalog orders.

b. Horizontal integration refers to a strategy of seeking ownership of or
increased control over a firms competitors. One of the most significant
trends in strategic management today is the increased use of horizontal
integration as a growth strategy. Mergers, acquisitions, and takeovers
among competitors allow for increased economies of scale and enhanced
transfer of resources and competencies.

Taking place in 2008 was Harley-Davidsons acquisition of MV Agusta.

In February 2009, billionaire Warren Buffets Berkshire Hathaway invested
$300 million in Harley-Davidson. Harley says Berkshire and Harleys
biggest shareholder, Davis Selected Advisers, L.P., are each committed to
buying $300 million in senior unsecured notes, due in 2014. The money
will be used to support Harleys finance company and its ongoing
motorcycle lending activities.


2. INTENSIVE STRATEGIES

a. A market penetration strategy seeks to increase market share for present
products or services in present markets through greater marketing efforts.
This strategy is widely used alone and in combination with other strategies.
Market penetration includes increasing the number of salespersons,
increasing advertising expenditures, offering extensive sales promotion items,
or increasing publicity efforts.

Nostalgia is also badge of Harleys success. Its unique potato potato-
potato sound created by its famous V-twin engine is still heard in the
rumblings of its motorcycles on the road today, and its legendary styling,
overseen by Willie G Davidson, himself an icon, has created continuity
over the decades

KOLEHIYO NG LUNGSOD NG LIPA
Marawoy-Dagatan, Lipa City, Batangas 4217




BUSINESS ADMINISTRATION Department
OperationsMarketing Financial
Harleys Web site announces to online visitors that this is Where Dreams
Come True and beckons readers to Join the Family Youve Always
Wanted. The mystique of Harley begins with two families, the Harleys and
the Davidsons, who had big dreams back at the turn of the twentieth
century in Milwaukee, Wisconsin.
The marketing efforts are divided between dealer promotions, customer
events, and advertising through national television, print, radio and direct
mailings, as well as electronic advertising. Harley-Davidson also sponsors
racing activities and special promotional events, and it participates in all
major motorcycle consumer shows and rallies.
Harley actively promotes the motorcycling lifestyle in the form of events,
rides, rallies, and Harley Owners Group (HOG). Harley considers the
availability of financing through HDFS as a competitive advantage.
On an ongoing basis, Harley-Davidson promotes its products and lifestyle
through The Harley Owners Group (HOG), which was founded in 1983
and currently has approximately1.1 million members worldwide. HOG is
the industrys largest company-sponsored motorcycle enthusiast
organization (www.hog.com). The Buell Riders Adventure Group (BRAG)
formed in recent years has grown to approximately 10,000 members. Both
HOG and BRAG sponsor events, including national rallies and rides,
across the United States and around the world for motorcycle enthusiasts.
To reach out to current non riders as well as expert riders, Harley-
Davidson created its Academy of Motorcycling in 2000. The Academys
Riders Edge program offers a series of rider education experiences that
provide both new and experienced riders with deeper engagement in the
sport of motorcycling by teaching basic and advanced motorcycling skills
and knowledge in a way that is fun and engaging. The courses are
conducted by a network of select Harley-Davidson dealerships nationwide
enabling students to experience the Harley-Davidson lifestyle,
environment, people, and products as they learn. The company Web site,
www.harley-davidson.com, is also used to market its products and
services. The Web site features an online catalog that allows retail
customers to create and share product wish lists, use a dealer locator, and
place catalog orders.
The average U.S. retail purchaser of a new Harley-Davidson motorcycle is
a married man in his mid to late forties (nearly two thirds of U.S. retail
purchasers on new Harley- Davidson motorcycles are between the ages

KOLEHIYO NG LUNGSOD NG LIPA
Marawoy-Dagatan, Lipa City, Batangas 4217




BUSINESS ADMINISTRATION Department
OperationsMarketing Financial
of 35 and 54) with a median household income of approximately $87,000.
Nearly three quarters of the U.S. retail sales of new Harley-Davidson
motorcycles are to buyers with at least one year of education beyond high
school, and 32 percent of the buyers have college/graduate degrees.
Approximately 12 percent of U.S. retail motorcycle sales of new Harley-
Davidson motorcycles are to female buyers.

b. Market development involves introducing present products or services into
new geographic areas.

The European heavyweight motorcycle market is roughly 80 percent of
the size of the U.S. market. Traditional U.S.-style touring motorcycles
represent less than 5 percent of the European heavyweight motorcycle
market. Harley-Davidson continues to expand its product offerings to
compete in the standard and performance segments with motorcycles
such as Harley-Davidsons XR1200 and Nightster, the Buell 1125R,
and MV models. Harley-Davidsons traditional Harley-Davidson
products compete primarily in the custom and touring segments.
In addition to Europe and the United States, Harley-Davidson also
competes in Canada, Japan, and Australia. In Canada, the companys
market share based on registrations was 41.9 percent, 39.0 percent,
and 38.2 percent during 2008, 2007, and 2006, respectively.
In terms of non-U.S. distribution, Harley-Davidson has 71 full service
dealerships in Canada, 383 in Europe, 201 in Asia Pacific, and 32 in
Latin America. The MV brand, to independent dealers primarily through
subsidiaries located in Germany, Switzerland, and the United States.
In Italy and France, MV distributes its products to independent dealers
directly. MVs network of approximately 500 independent dealers is
primarily located in Europe with approximately 40 independent dealers
in the United States.

c. Product development is a strategy that seeks increased sales by improving or
modifying present products or services. Product development usually entails
large research and development expenditures.


KOLEHIYO NG LUNGSOD NG LIPA
Marawoy-Dagatan, Lipa City, Batangas 4217




BUSINESS ADMINISTRATION Department
OperationsMarketing Financial
Motorcycles sold through the CVO program are available in limited
quantities and offer unique features, paint schemes, and accessories.
Buell motorcycle products emphasize innovative design, responsive
handling, and overall performance. Buell manufactures four families of
motorcycles: (1) Sportbike, (2) Street, (3) Adventure, and (4) Blast. The
Blast features a smaller 492cc single-cylinder engine, ideal for many new
riders. MV motorcycle products emphasize exquisite design and high
performance.

3. DIVERSIFICATION STRATEGY

a. Businesses are said to be related when their value chains posses
competitively valuable cross-business strategic fits

The motorcycle and related products segment of Harley-Davidson includes
(1) Parts & Accessories (P&A); (2) General Merchandise; (3) Licensing; and
(4) Motorcycles. The major P&A products are replacement parts and
mechanical and cosmetic accessories. Worldwide P&A net revenue
comprised 15.4 percent, 15.2 percent, and 14.9 percent of net revenue in the
Motorcycles segment in 2008, 2007, and 2006, respectively. Worldwide
General Merchandise net revenue, which includes apparel and collectibles,
comprised 5.6 percent, 5.3 percent, and 4.8 percent of net revenue in the
Motorcycles segment in 2008, 2007, and 2006, respectively.
With regarding to licensing, the company creates an awareness of its most
significant brand, Harley-Davidson, among its customers and the nonriding
public through a wide range of products by licensing the name Harley-
Davidson and other trademarks owned by the company.
Licensed products include T-shirts, jewelry, small leather goods, and toys.
Although the majority of licensing activity occurs in the United States, Harley
continues to expand these activities in international markets, such as into
India in 2010. Royalty revenues from licensing, included in Motorcycles
segment net revenue, were $45.4 million, $46.0 million, and $45.5 million in
2008, 2007, and 2006, respectively.




KOLEHIYO NG LUNGSOD NG LIPA
Marawoy-Dagatan, Lipa City, Batangas 4217




BUSINESS ADMINISTRATION Department
OperationsMarketing Financial
Through the utilization and improvement of the companys website, Harley
Davidson was able to reach customers around the globe and maintain customer
relationship. With its strategy in distribution, consumers can easily find a dealer
whether from U.S. or from different locations. Since Harley Davidson brand is
claimed as a luxurious motorcycle, constant effort of the company for financing,
insurance, and product development have been widely implemented to retain and
gain market share. The availability of related product lines such as apparels through
licensing has also proactively increased the companys revenue for the past few
years.
Harley Davidson is also on its endeavour of reaching different market segments
aside from male adults. Females and young adults are now part of their priority to
increase brand identity while keeping its feet on its bad boy image. This is done
through modification and diversification of motorcycles produced.
Integration, intensive, and diversification strategies are adapted by the Harley in
order to continuously satisfy their stakeholders. Integration strategy was employed to
have a control over its distributors and dealers which are important channels of
distribution. Through increasing the company-owned dealers in the United States
and increasing global dealers, Harley made it possible that their brand will be
available at any continent. Intensive strategy was utilized not to hard sell the product
but to increase consumer awareness about the brand which was achieve through
exerting efforts for advertising and financing. Diversification strategy was also
applied which is beneficial for the companys product development progress.
Just how a strategic plan is important to a business, it will not be complete
without a concrete strategy which will guide the overall framework of the plan. Harley
Davidson, though experienced a slight downfall in year 2009 because of intense
competition, still they were able to sustain their weakness and formulate a strategy
to lead in the competition for luxury motorcycles.











KOLEHIYO NG LUNGSOD NG LIPA
Marawoy-Dagatan, Lipa City, Batangas 4217




BUSINESS ADMINISTRATION Department
OperationsMarketing Financial
STRATEGIC FINANCIAL

MCDONALDS
Place more emphasis on delivering an
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Reduce general and administrative spending
as a percent of total revenues
Add approximately 350 net new McDonalds
restaurants
Achieve a system-wide sales and revenue
growth of 3% to 5%. Annual operating
income growth 6% to 7%, and annual returns
on incremental invested capital in the high
teens

H.J. HEINZ COMPANY
Increase the focus on the companys 14
power brands and give top resource priority
to those brands with number one and two
market positions
Achieve 4-6 % sales growth, 7-10 % growth
in operating income, EPS in the range of $
2.35 to $ 2.45, and operating free cash flow
of $900 million to $1 billion in fiscal 2006
Continue to introduce new and improved
food products
Pay dividends equal to 45-5- % of earnings
Add to the Heinz portfolio of brands by
acquiring companies with brands that
complement by acquiring companies with
brands that complement


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Solidify the companys No. 1 position in the
overall market for hard-disk drives
Maintain gross margins of 24-26 %
Get more Seagate drives into popular
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Hold internal operating expenses to 13-13.5
% of revenue
Take share away from Western Digital in
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Maintain leadership in core markets and
achieve leadership in emerging markets


3M CORPORATION
Double the number of qualified new 3M
product ideas and triple the value of products
that win in the marketplace
To achieve long term sales growth of 5-8%
organic plus 2-4 % acquisitions
Build the best sales and marketing
organization in the world
Annual growth in earnings per share of 10%
or better, on average
A return on stockholders equity of 20% -
25%
A return on capital employed of 27% or
better