Harley Davidson Case

Harley Davidson Case

[pic 1]

   Matías Costabal

Consumer Behaviour sección 4

Profesora Flavia Cardozo

Definition of the problem: What target segment the Company Harley Davidson should focus on having two different brands so that their revenues and market share increase in the most important countries in the motorcycle category.

Alternatives: Choosing whether to focus on investing in the Buell brand, focus on using brand extensions for Harley Davidson or focusing on untargeted consumers till now with black heavyweight motorcycles are the best three options I thought of. The idea is to increase the existing market share on countries where there is already competition in the motorcycle industry and penetrate new markets such as the Indian, Brazilian, Russian and China focusing on young adults in different ways depending on the culture of each country, changing the positioning of the brands (Harley and Buell) among the consumers.[pic 2]

1) Invest on the Buell brand 

+ Better market share on Europe than the United States which meant it could expand the possibility of target cultures and expand profits for the company

+ Cheaper than Harley can target lower income consumers rising the market share and targeting new consumers

+ Can penetrate better other target segment as it competes in sport light weight motorcycles for new consumers

+Innovation in technology as a proposition value attracts rising market share for the company

+Gross margins will increase fomr 5% to 10% if the Sales volume increases for the company

-Strong competition (Japan has high competition with brands such as Yamaha, Kawasaki and others) in the sport motrocycles which offer lower prices, higher quality and technological advances

-Actually has a lower gross margin of 5%

- High investment as there will be two brands now (Buell and Harley Davidson) under the same management.

- It is not a highly recognized brand by the consumers (brand awareness)[pic 3]

2) Invest on Harley Davidson brand 

+ High Brand awareness among the competition

+ Best Gross Margins in comparison to the competition (35%)

+ Leader on the Japanese market of heavyweight motorcycles with the biggest market share on this area among the competition

+ The Brand is well positioned as it offers values, ideals and lifestyles for the consumer

+Buying meant loyalty to the brand as they automatically become part of a subculture for the consumers (membership)

+ Close contact for the consumers with the management area of Harley Davidson motorcycles

- Costumer image is seen as people think it is for men with tattoos and piercings

- It is seen as a higher cost brand than what it is really

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