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Harley - Davidson Inc. ...
INDUSTRY AND COMPETITIVE MARKET
The industry under study is the motorcycle industry consisting of five
major manufacturers: one American (Harley Davidson), and four Japanese (Honda,
Yamaha, Kawasaki, Suzuki) and some European companies (mainly BMW of Germany and
some other Italian companies). Most companies market their motorcycles and
accessories on a worldwide basis, handling international trade through foreign
distributors and domestic sales through franchised outlets. Industry sales of
motorcycles were shrinking in the early l990s because of the recession and the
competition from computers and electronic products decreasing consumers
discretionary income.
Sales of accessories and parts make up 36% of total retail sales and is a
viable area for producers to explore because people want something to
differentiate their bikes. ... This group accounts for 44% of all sales. ... This group accounts for about 11% of motorcycle sales.
The heavyweight touring class and the middleweight road bike categories account
for most of the sales here. ...
Motorcycles: It includes mopeds or scooters (with engines under 125cc
which are used as an alternative to walking), accounting for about 17% of total
motorcycle sales; lightweight motorcycles road bikes, dirt bikes, dual purpose
bikes (with engines ranging from 125cc to 499cc), accounting for 51% of sales;
sport motorcycles street bikes, and superbikes (with engines ranging from 450
to 749cc) accounting for 13% of sales; heavyweight motorcycles cruisers, tourers
(ranging from 750cc to 1500cc) accounting for 19% of sales. ...
MARKETS
Although motorcycles are sold internationally, 3 main geographic markets
comprise the bulk of motorcycle sales North America, Asia, and Europe. The
largest is the North American Market (USA and Canada account for about 60% of
this market) accounting for 60% of worldwide motorcycle sales. ...
To succeed in these markets, firms are to modify products to meet local
needs, provide after sales service, expand distribution networks, create strong
customer
COMPETITION
Competition in the motorcycle industry consists of only a handful of
producers worldwide. ... Harley Davidson is producing heavyweight motorcycles emphasizing
good quality product and after sales service, thereby building up brand loyalty. ... Yamaha produces Harley
clones but lacks Harleys image. ... BMW is famous of producing quality products but its high prices hold
it from expanding sales. ...
Harley is to produce high quality, safe bikes, with radical styles and provide
them at reasonable prices to build up brand loyalty.
30 50: Recent demographic profiles show that the median age of buyers
of Harley products is 35 and their customers median household income is about
$45,000. These customers account for a great market chunk and, therefore,
provide an opportunity for Harley, which is to provide them with safe, high
performance, good quality bikes to increase brand loyalty and succeed in this
segment. ...
Harley is to provide them with both of them in order to penetrate this market. ... Harley Davidson produces only heavyweight motorcycles (with
enginedisplacements of 750cc or greater) that are categorized into touring and
cruiser motorcycles. ... , trunks), and provide Harley with the greatest
profit margin. Cruisers are styled after early motorcycles and are the kind
most often associated with Harley. ... Harley
is to increase its R&D to improve product designs, quality, and safety. It is
also to offer a guaranteed resale value (that most Japanese firms are lacking),
offer a high quality after sales service and, therefore, build up its brand
loyalty. ... This category includes a new line of riding and fashion
apparel bearing the Harley Davidson insignia.
Approximate Word count = 2748
Approximate Pages = 11
(250 words per page double spaced)
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