HARLEY-DAVIDSON’S

FOCUS STRATEGY
Presented By: Astha Joshi
Ashma Lohani
Ina Sakha
Introduction
• World’s leading manufacturer of heavyweight motorcycles

• Sold in more than 70 countries

• Unique selling proposition

Background
Problems
• Global Recession and Aging Customers
• Japanese Competitors
• Changed Advertising Strategy
 Strategies Used

• Niche Market- Customized, Touring,

Focused Performance and standard motorcycle in
heavyweight division
Differentiation
• Core Customer- Men over age of 35

• Non-Core Customer- Young Adults(18-34 age),

women and ethnically diverse adult
• In 1981, JIT and Statistical Operator Control (SOC) approach

• In 1992, adopted Circle based organization

• In 1999, Custom Vehicle Operations (CVO) program

Value over Pricing Strategy
• Production of motorcycle below the market demand

• Sparked attitude of “Must have” among customers

• Brand image as high commodity by providing high quality standards, commitment

to tradition and refusal to follow lead of foreign competitors
Branding and Marketing Strategy
• Create ‘Experience’ around the product

• Introduced Harley Owners Group (HOG), provided Sponsorship for conducting

events such as rallies and riding at local, regional, national and international level.
• Introduced range of Harley Motor Clothes

• Licensed its popular bar and shield logo

Identified Women’s Market

• Produced models suitable for women with

lower frames and saddles and soft clutches

• Created a group called “The Ladies of

Harley”

• Organized ‘garage parties’ to make women

aware about fundamentals of motorcycles,
which model suited them and customization
options
Rider’s Edge Program in 2000
• Initiated by Harley dealers

• Taught basic and advanced motorcycle skills and knowledge to new riders

• Also taught inexperienced female riders the techniques of handling and driving
heavy motorcycle
Delivering Differentiation Through Focus

Key Elements of Focus of the Four Pillars of the

this Strategy Strategy was on Strategy
• Drive growth • Product • Growth
• Improve development • Continuous
manufacturing • Global expansion Improvement
and • Commitment to • Leadership
development core customers Development
• Sustain long- • Sustainability
term growth
Discontinuing Buell, Divesting MV Agusta
• The company discontinued the Buell line of sports bikes
• The company believed their investments in that brand are a better utilization of
overall company resources
• Discontinuation of Buell line surprised many industry observers
• One of their biggest challenges
Transforming Product Development
• Leaner, faster and smarter
• Strengthen it’s leadership in heavy weight
motorcycle
• Develop modern bikes to attract customers
in new demographic segment
• Customer-led approach to product
development
• Customization
Restructuring Manufacturing Operations
• Expected to improve product quality,
reduce administrative cost and eliminate
excess capacity
• York operation plant
• Workforce reduced from 1950 to about
1000 employees
• $217 million cumulative saving from
restructuring by 2011
Expanding Global Footprint
• Company decided to expand its global
presence
• Planned to enhance its presence in
Latin American regions, Europe, Japan,
China, India and other emerging
markets
• Strengthen worldwide dealer network
• By 2014, company planned to grow its
brand globally by applying customer-
led principles
Customer-Led Marketing Approach
• Marketed its products by
promoting the experience of
motorcycle to core customers
• Adopted Multi Generation and
Multi Cultural marketing strategy
• Used crowdsourcing approach
• Worked closely with outside
expert media, digital marketing,
public relations and product
placement
Other Initiatives
• Continuous Improvement
• Sustainability
• Reduction in operational waste
• Team focused organization structure
• All these resulted in 13.5% increase in revenue in 2011
SWOT Analysis
Strengths
Weakness
• Brand image and Customer • High price
loyalty • Industry dependent in US market
• Customization
• Global presence
• Strong distribution network
• Merchandise

Opportunities
Threats
• Products and services expansion
• Potential buyers were aging
• Increasing demand for bikes
• Increased competition
Porter’s Five Force

Bargaining power of buyers

Threat of new entrants

Rivalry among
competitors

Threat of substitute products

Bargaining power of suppliers
Lesson Learnt
• Finding the right course and
choosing the right direction
• Identifying biggest assets
• Understanding and respect
of core audience