REPORT ON “HARLEY-DAVIDSON”

CLICK HERE TO DOWNLOAD REPORT ON “HARLEY-DAVIDSON”

HARLEY DAVIDSON  Report Transcript

ISSUES  DEFINING IMPORTANCE OF INNOVATION

1.    THE FIRST MOTORCYCLE: This was the first idea through which Harley Davidson stepped into the market. The first motorcycle was nicknamed as “Silent Grey”. It made easier to travel uphill. The product bought success for this unique feature. The idea behind the venture was to find a way that would ease the physical efforts needed to ride a motorcycle. The whole idea was taken up by William Harley and Arthur Davidson in a small motor-shed in Milwaukee in 1903.

2.    V-twin: After getting success, this small venture got help from an uncle  of Harley and Davidson who extended the loan and the partners built their first shop.  A new type of engine was innovated when the first shop was built in 1907. It was known as V-twin because the engine had two cylinders arranged in a V angle. This engine produced a deep-throated, distinct rumbling sound which no other motorcycle had at that time. The innovation of this engine resulted in an upgraded version of the bike which was developed by 1909. Secondly, the new bike had a capacity to manage a speed of 60 mph.

3.    TEARDROP- SHAPED GAS TANK: This innovation helped the company Harley- Davidson to carry its picture in the market. This was a unique feature at that time due to which company was able to beat the competition successfully. The company kept on focusing the innovation and up- gradation technologies and introduced front break system also. The Great Depression of 1930s put many motorcycle companies out of business and this helped Harley- Davidson stay in business, coupled with export and supplies to US postal service and police departments.
4.    K- MODEL: IN 1953, when India closed its operations ,this company took the advantage and became the sole manufacturer of motorcycles in the country.As a result, the sales grew more and more and the company dew to its high Glide, Electra- Glide and Super- Glide. These were all heavy- weight bikes and these acquired the counterculture in the US.

5.    ELECTRIC STARTER BIKE: By 1960, the H-D bikes were popular as a rebel and brand and its ‘bad boy’ image came up as a strong fighting competitor. As per the coping demand of fashionable automobile company it came up with ‘Electra-Glide’. This electric starter bike later on replaced Duo- Glide bikes.

6.    BUELL RIDERS ADVENTURE GROUP (BRAG): After the downfall of Harley  Davidson it came up with a lot of recovery. BRAG was a part of its improvement. BRAG an exclusive club for Buell motorcycles. Through this ,the overall experience of motorcycle enthusiasts were collected in order to know the on- the- road experiences of the customers. This helped the company in market research.
The company grew at a high speed from and fell for a period when it was acquired by American Machine and Foundry (AMF) but it recovered itself.

2. What factors have been responsible for Harley- Davidson becoming a cult?
Harley- Davidson becoming a cult
HD proved itself as a cult due to the following reasons:

1.    TECHNOLOGY: Due to the innovative technology HD proved itself as a cult as such it innovated many fashionable automobiles which were according to the demands of the customers, not only one but continuously it resulted in many innovations which were completely new at that time. As such Harley Davidson was the first in providing the latest technology hence it became popular among the consumers.

2.    CUSTOMER RELATIONSHIP: Harley Davidson maintained a good customer relationship at that time when it was at the initial stage and also when it had to maintain its position when it faced downfall in the market. It initiated a contact between the company and the customers with a magazine in which different feedbacks were collected and the market research was done according to that. The magazine was the “Enthusiast Magazine”.

3.    DIFFERENT PRODUCTS: HD achieved a strong position in the automobile sector apart from that it also began producing biker gear like leather motorcycle jackets and accessories such as boots, shoes and clothing. This made the company more popular among the mass.

4.    HARLEY- DAVIDSON UNIVERSITY: This was another key through which in 1983, a three day dealer- training programme was done. This was the way in which dealers got appropriate training which resulted in the efficiency in their work and also the company landed up building a healthy relationship with the customers and making clear the consumers doubts so that the consumers may have an ample number of information about the company.

3. What is Harley- Davidson’s positioning? What is the secret of the fanatical customer loyalty to Harley- Davidson?
POSITIONING: Harley- Davidson positioned itself in the consumers mind in the     following ways:
1.    FIRST SERVER: As the name suggests the name Harley- Davidson is popular in the market. At present it is the company which is globally popular and carries a good name. It was the first server of bikes. It is always noticed that everything which takes an initiative catches the eye of everyone, in this way Harley- Davidson believed in “first come first serve”.

2.    FASHIONABLE PRODUCTS: The company came up with many innovative products which were fashionable as well for example- the Sportster, Duo- Glide etc. These products captured the consumers mind.

3.    FREE TRIALS: After the downfall the company recovered itself by providing free trials for the automobiles, the company organised several motorcycle rallies and tours. These rallies involved giving customers trial rides, letting them interact with company officials and selling new bikes and merchandise.

4.    HARLEY- DAVIDSON CAFES: This was another move by the company which made many cafes at places where its dealer stores were located to attract a larger no. of people.

5.    HARLEY- DAVIDSON CHROME VISA CARD: The company build up subsidiaries, these subsidiaries offered dealers and customers a credit card. Dealers were also given special discounts and the customers were given insurance facilities too.

SECRET OF CUSTOMER LOYALTY
1.    BRAND IMAGE: The company experienced a good brand name due to which the customers had a faith over the company, this was the reason it regained back the faith of the customer after their downfall.

2.    QUALITY PRODUCTS: First, in the market to provide latest technology bikes as per the need. During World War II it coped up with the needs of the military force as well as to the police force. Finally, maintained faith of the customer providing quality products.

3.    DIVERSIFIED PRODUCTS: The company not only provided the bikes but also provided the accessories like leather motorcycle jackets, boots, shoes and clothing.