Introduction
Harley-Davidson Inc. is a US-based motorcycle manufacturer established in 1903 by collaboration between William Harley and Arthur Davidson. The company was considered world’s leading designer of motorcycles comprising of heavyweight, touring as well as performance motorcycles.
The company also deals with line of motor cycle parts and accessories. The supplies of motorcycles from Harley-Davidson were recognized based on their distinctive design as well as heavy customization.
The brand image of the company based on raw power formed crucial part of its unique selling proposition (Whalen et al, 2010). This made the company to focus on differentiation strategy targeting more specific products within various niche segments in the market (Whalen et al, 2010).
The nature of the powerful brand image HD uses within the market, led to building of deep relationship between the company, customers and matchless riding experiences. This contributed towards massive loyal brand following since the needs of customers using heavyweight motorcycle were catered for.
Marketing strategy of the company focused on company-sponsored events, various dealer promotions as well as advertisements in the media. Target market majorly comprised of baby-boomers who happened to be men above thirty five years of age.
However, the age limit has risen over the years to over forty years. This represented the age group who contributed towards Harley-Davidson’s iconic figure within United States of America.
Due to decline of customers within this segment, the company strategized in the year 2010 to re-organize their marketing efforts and at the same time focus on multigenerational and multi-cultural marketing strategy.
Such strategy focused on various age-groups, ethnic backgrounds and also being gender sensitive (Doole and Lowe, 2008).
Impact of new and emerging technologies on transport and it applications is currently evident. Advancement in technology have taken very sharp dimension and on upper dimension within the market.
Such technologies have been identified to include advances in automobile, accessories and computer production. Increase in the number of automobiles having web superior capabilities as well as new display technologies are on the growing trend.
Despite all these, experience within automobile industry reveals that it’s rather expensive to operate within developed countries due to expensive demands from consumers.
Such reasons should ensure that the identified gaps in knowledge regarding lucrative markets, and identified opportunities are dealt with amicably (Kotler and Keller, 2007).
However, as one of the best managed companies within various regions, HD takes pride on the high technological and modernized level of products and services provided.
Summary of environmental appraisal analysis for the U.K. market
Internal analysis
Harley-Davidson line of production deals with automobiles whereby they retail new and used products. Their market supply has been considered adequate by customers for close to over ten decades.
There is provision of various unique heritage and culture to employees which enables them to offer excellent services within the automobile industry.
HD stands as one of the world leading companies within automobile industry dealing with heavyweight motorcycles, motorcycle parts, accessories, apparel and general merchandise (Whalen et al, 2010).
The company has ensured concrete development within its various business segments. Such segments include that of motorcycles and that dealing with provision of financial incentives. The financial service segment deals particularly with wholesale as well as retail financing and insurance (Whalen et al, 2010).
There has also been much focus on various innovation- related measures which assist in enhancement of differentiation and methods of costing.
At the same time, much difference occurred from economic conditions and finance management within the organization. It is easier to develop performance indicators from the company’s financial records.
SWOT analysis
Strengths
Harley Davidson commands a considerable market share within European countries owing to the nature of its products which includes most sorted out heavy- weight motorcycles.
Part of the company’s strength emanates from its area of specialization which is narrowed down to two segments; motorcycles and its accessories as well as Financial Services. Harley-Davidson supplies heavyweight motorcycle within various international markets such as Middle-East region and Asia.
Additionally, the company boasts of a strong brand name which at one point was used as trade mark amongst American population. Such nature of strength exhibited enabled perpetual attraction of customers especially amongst baby boomers.
The Harley Owners Group (HOG) association established within the company has enabled expansion of customer base with approximately since they command approximately 750,000 members globally. This makes HD appear sole sponsor of motorcycle enthusiast within the industry.
Buell Riders Adventure Group (BRAG) is one of the affiliate company’s granted rights of manufacturing products under HD’s brand name.
Further strength can be identified through various market segments dealing with different issues such as promotions, customer events, media advertisements and direct-mailing (Magretta, 2002, pp 86-92).
Weakness
HD’s weak points as it gears up for the UK market can easily be identified in the nature of pricing they use on their products. This has made it difficult for the company to extend its market share within Asia and European other countries.
At the same time, there are internal problems revolving around capacity in production which limits HD’s supply of heavy motorcycles to future market segments (Whalen et al, 2010).
Opportunities
There’s currently high demand for Harley Davidson motorcycles within regions having high percentage of Middle-Class earners. These countries are found within the European market which at the moment presents the largest motorcycle market in the world.
There is potential market amongst the younger generation as well as sports events within America and Asia with quality being the major concern.
Threat
The loss of considerable domestic market is attributed to emergence of innovative competitors such as BMW and Hyundai which supplies quality but relatively cheap products to the market.
At the same time some of the competitors within the market have stronger financial base and well coordinated marketing network which ensures smooth operations of their diversified products lines.
Potential threat may arise from subsidiary companies using HD’s brand name since they can be tempted to compromise quality (Doole and Lowe, 2008).
External factors
External Strategic analysis
The general environment of Harley Davidson will be analyzed by use of PEST analysis model. For the purposes of capturing various changes within the environment, it is important that Degree of Turbulence (DOT) model be utilized.
At the same time, the motor cycle industry within the United Kingdom from which HD is expected to operate will be analyzed by use of Porter’s Five Forces analysis (Whalen et al, 2010).
The Degree of Turbulence
Strategic analysis of the UK environment requires the application of DOT which reveals on the stability of the industry within the current market situation. The choice of strategy is very important since it will determine the mode of entrance the company uses within various markets.
There are always two main approaches used either emergent or prescriptive approach. However, various factors within specified market environments determine the level of turbulence within the environment. The factors considered in such a case include; changeability and predictability (Whalen et al, 2010).
According to UK statistics, changeability can be recognized through high chances and probability for environment to change. Changes within the environment are brought about by many other factors categorized as either complexity or novelty.
Such factors providing complex impacts include; political, technological as well as social aspects. Global economy represents one of the complex potential factors which might affect penetration of Harley-Davidson Company into United Kingdom market.
This is because HD is a multinational company having most of its operations within the international market. Based on this, various changes on technology, prices as well as overall GDP ultimately affect overall performance of HD within emerging markets (Whalen et al, 2010).
On the other hand, Novelty factors focuses on the frequency of occurrences of new situations towards the company. Harley-Davidson is considered to operate within high technology environment as exhibited by its major competitors from Japan and other such as BMW.
This makes it possible for any company to turn things up-side down within the market based on its level of advancement in technology. Such changes as described above can be determined through application of predictability factor.
Predictability is usually determined based on “rapidity of change” or “anticipation on future impacts”. These qualities are used to determine rate of transformation within the market as well as availability and quality of information applied on future prediction respectively.
Rapidity of change within the UK can be evaluated by examining changes on market responses towards products supplied. This can be linked to the nature of GDP within the regional countries which will ultimately determine the level of supply of HD heavy motorcycles, other premium goods and services.
However, with respect to “visibility of the future”, HD should be capable to predict the trend within the future market of motorcycles within the region. This is since the trend is shifting towards environment friendly automobiles, hence “forecastable” to predict market inclination.
The company’s positioning based on pricing will largely determine their profit margin. Various changes within the environment, calls for adjustments to the strategies applied by Harley-Davidson within other regions. Such changes within the UK environment can best be described through application of PEST analysis (Whalen et al, 2010).
PEST Analysis
PEST analysis is basically built based on historical data, making it more challenging to predict the future form previous events within the market.
Despite the analysis from degree of turbulence which could be used in predicting the future, PEST analysis cannot be utilized for the same purposes making it difficult for the company to predict their future trends from past events. Further, such results cannot be directly transferred to the future.
For the purposes of analyzing UK market, HD will divide its results based on short-term and long-term events which are done based on the provided financial data. Scale of 1 to 5 can be used to quantify events based on most and least favourable environment for HD products.
Using such scales can make it easier comparison between factors. However, HD Company will utilize the most relevant factors within the analysis to predict their performance within the target market.
Political factors
Previously as revealed from the case study, several obstacles in the form of political factors have led to stagnation of HD products within some markets.
This could be seen through enforcement of new laws within countries. However, the most defined area within the market which has attracted several legal enactments is rate of global warming based on greenhouse gas emissions.
Additionally, nature of disposal of old products and durability of the products determines market acceptance within some territories (Whalen et al, 2010). There are tight legislative restrictions on emissions within the OECD member states.
This presents some challenge to HD’s heavy motorcycles since they consume much fuel leading to unwanted emissions (Whalen et al, 2010). European countries have enacted their own standard of operation i.e. EURO 5 which gives directions of operations within automobile industry.
The law ensures that all manufacturers are responsible for their product’s performance for the first five years of operation within the market (Whalen et al, 2010).
This is the same as United States market which has defined rules enforcing regulations on green house gas emissions. Such restrictions on emission have the capacity if increasing costs within various areas of development, testing and manufacturing for Harley-Davidson.
The process of recycling used and old vehicles is also given equal importance within UK, with the laws stating that various automobile manufacturers are under obligation to retrieve back specific components of their gadgets.
Such directives provide additional operational costs on HD, since they are required to be responsible for recyclability of various automobile components. This would make the company to forcefully take into account cost of scraping various components expected from used motorcycles.
Consequently, there are various forms of crises based on political instability within the emerging markets in the region. Such cases affect the company’s profitability depending on the size of the market and total revenue collected.
Despite all these, there exist high prospects on company’s future based on the nature of the UK market. Political instability results into unexpected outcomes which poses adverse effects on HD’s bottom line.
This shows that the state of political stability will have tremendous effect on HD’s operations within emerging markets (Whalen et al, 2010).
Economic factors
Statistics reveals drastic fluctuations in the world GDP growth within the last few years. Records reveal that in the year 2008, GDP was recorded to be at a decline of over 2.5%. The successive years recorded growth rate of over 1.5% followed by approximately 2.5% (Whalen et al, 2010).
Such projections are true reflections on the expected nature of recovery within the future anticipated to be over 3% by the year 2015. It is therefore important for various automobile companies such as HD to carefully differentiate their target markets.
This involves analyzing growth within emerging markets and already established markets within western economies. The GDP growth within the European countries is estimated to be at 1.8% (Duval, 2010). However, within the UK region, there is threat based on credit risk especially with big percentage from debt financing.
Based on its financial records, HD should position itself to finance its operations within UK market from matching maturities of bonds to various activities. At the same time, derivatives could be used neutralize risk on interest rates.
The other risk faced within European market involves fluctuations in various currencies used. However, this can be reduced through natural hedging where production facilities of the company are stationed within the major market.
This would ensure that the revenue generated is spent in the same currency leading to reduction on rather anticipated currency risk. United Kingdom market requires specialized facilities capable of serving the elite population present.
This leads to increase in cost of production hence making it difficult to control revenue and operational costs. Currency risks within this market are majorly associated with US dollar and British pound which would account for significant percentage of HD’s total currency exposure.
However, deals within foreign countries are neutralized through hedging which happens between Euro and US dollar based on the fact that large revenue is obtained from United States operations which happen to be HD’s country of origin (Whalen et al, 2010).
The nature of strength exhibited by dollar against Euro makes currency risk one of the major concerns within the UK market. Current globalization makes operational and manufacturing costs high owing to high cost of raw materials of which in this case comprises of steel and aluminium.
Such trends affect ultimate prices of goods due to scarcity of raw materials and increasing demand for motorcycles.
Socio-cultural factors
The demographics of the market within UK are promising owing to growth experienced within the middle-class. This would represent HD with the desired market segment. However, the market within UK usually demands for products which are environmentally friendly.
Technological factors
There are lots of difficulties when it comes to technology since there is emergence of highly innovative firms hence gaining competitive advantage is not easy task. However, the nature of engines within their heavy motorcycles makes HD to gain significant competitive advantage over other competitors.
Inclination towards environmental issues is creating avenues for the development of environmentally friendly products within the area of transportation.
There are certain peculiar attributes notable within market segments which have been singled out. In this context, it is evident that whenever all these socioeconomic factors get managed, the consumer rates of HD’s products might just be equivalent to those high rates observable within other industries.
Therefore, there is an evidence of the increasing importance of the institutional elements of the decisions and performance of motorcycles and associated products.
The role of the marketing department in influencing major decisions and the fate of technologically out-dated innovations is seemingly vital and can never be underscored.
There are also indications that the various underlined cognitive factors act synergistically with other institutional factors to influence buying decisions of most customers within UK (Daley, 1993).
Identification of two new target markets appropriate to HD in the U.K. market
The company has for the past years developed new line of products contributing towards enhancement of their products based on value-added services and at the same time utilizing business customers.
The new target market would be defined as knowledgeable and maturing but very much familiar with older product technologies. This requires HD to lower their prices and at the same time be innovative for the purposes of maintaining their level of relevance amongst consumers within the target market.
They should focus majorly on needs-based segmentation process which provides opportunities for reaching different consumers. Such segments are usually characterized by low pricing, reliability in quality as well as constant supply.
Implementation of new products amongst the younger generation within UK should be accompanied by new branding systems for the purposes of eliminating cases of confusion amongst customers (Whalen et al, 2010).
The recreational industry within UK also provides one of the most lucrative market segments.
One of the marketing strategies that managers should apply for the purpose of remaining competitive within this industry is advanced technology and at the same time upgrading their establishments with the intention of appealing to more customers.
Available literature demonstrates that sports organizations spend considerable sums of money each year to design, build, and elegantly furnish their establishments. The organization should focus on needs of trainees using HD’s products such as motorbikes.
Such applications assist in implementation of effective organization’s goals and objectives. There should be reinforced elaborate plans focused on establishment of relationship amongst participants within various sporting sections.
The organization should be capable of supplying high profiled riders and their sponsors through application of appropriate technologies within their gadgets.
Such actions enable tremendous contributions towards individual enhancement of skills which at times is necessary for productivity purposes. At the same time, HD should utilize performance ratings for the purposes of establishing anticipated results from various sports segments.
Such performance ratings are based on departmental components and their accomplishments based on organization’s goals. The process involves defined planning of activities whereby objectives from various activities are aligned to those of the company for the purposes of efficient management.
Various positive experiences are identified in the process of supervision and major decisions made based on efficiency of applied concepts. Such activities are based on consumer’s learning processes and ability to match the required standards.
Overall performance ratings are done on annual basis hence making it possible identification of incompetent areas and afterwards implementation of appropriate plans (Chan and Lynn, 1991).
Harley-Davidson as an organization should focus on individual social benefits. This is based on frequent review of articles containing cases on social enterprises within sporting industry which enables them perform various adjustments within some of their respective units such as gymnasium.
However, most of their operations should focus on business prosperity in case of recessions. This acts as strong contributor towards frequent updating of their system based on market trends.
The management should unveil possible trend showing sustained growth and better long-term prospects for such enterprises compared to other for-profit enterprises. This discovery echoes true sentiments for companies operating within such industry.
For example, stories within various articles focus on products and services provided through service industry. At the same time, there are more online discoveries concerning necessary improvements required in making customer experience of executive standards within automobile industry (Whalen et al, 2010).
In the process of allowing access to information, the management of HD should consider operating common website alongside other sports websites within the region. Such operations allows for easy coordination between fans, management and players.
The only lacking facility is that which enables payment to be done over the internet, such improvement would facilitate more online bookings hence decreasing overall transaction costs (Mintzberg et al., 2003).
Management of growth processes with HD focuses on intangible and tangible assets as well as available sports products and accessories. This focuses on providing intended returns based on organization’s marketing strategies.
The management at the same time should focus on issues touching vital points such as management of capital investment alongside appropriate working systems.
Smooth flow of processes within HD is influenced by availability of highly skilled and motivated employees, having updated and accurate information on the current marketing trends within UK segments.
Various measures have been implemented by the company some of which include acceptable level of satisfaction from consumers and balancing on various innovations based on gender.
At the same time, HD should incorporate instruments for the purposes of measuring every initiative undertaken in the process of improving level of competency (Mintzberg et al., 2003).
Development of differentiated marketing mixes for each target market identified
Harley-Davidson products and services accommodate economy to upscale class within business, sports and leisure market environment. Various brand names are used under the umbrella of HD depending on the region of operation.
The brand name HD is identified to have strong positioning within the upper and medium scale market range. The brand’s presence in all the continents is felt through durability and nature of HD’s products.
At the same time the hotel has strong positioning within transport sector. There is well developed and established information technology which HD utilizes to attract customers such as online technology.
The younger generation comprising of X, Y- generations as well as millennial can be easily reached through computerized technologies such as mobile phones and social media. Such marketing channels ensure that services are rendered by use of accurate information regarding specific tasks.
Such technological adjustments create possibility of using services creating some sense of attraction amongst users since they expect quick responses. This calls for IT technicians to develop highly accurate and fast search engine software.
Emergence of new technology with the integrated marketing mix has led to creation of new software capable of handling rapidly growing market segments. This enables use of new technologies for the purposes of content management and deliveries.
Development of social networks comprising various groups such as colleagues can possibly be exploited for the purposes of providing efficient and effective marketing services to customers.
However, such new technologies have led to emergence of such activities as abandonment of courses, display of boring content and at the same time difficulties in real assessment of work done by sales team.
Such problems can be dealt with by use of semantic technologies capable of providing new connections and content deliveries suitable for destines occasions. Such progress with new technology has enabled vendors to create messages capable of adapting to the device’s content and location (Kruk and Grzonkowski, 2006).
Creation of semantic digital libraries such as JeromeDL assists in software controlled repositories capable of running eLearning content. Due to new technology, it is vital to develop research team capable of reviewing online social projects after every short period during the project cycle.
The audit team should be self- dependent without personal interest in the project. New technology demands that auditing on IT system should be carried out to avoid unnecessary hacking of company’s records and data.
New technology has advantages and disadvantages of carrying out the project, achievements and relevance of the management’s priorities. Finally, integrative management process that meets the priority, definition, scope, mission, budget schedules, and control are made possible by the technology.
Management within HD is however endowed with responsibility of ensuring that online social enterprise applied in reaching the market set clear conditions for achievable schedule, budget and tasks.
A standard contract for the signature should be drawn for the purposes of allowing various considerations on all necessary obligations.
Such projects allows existence of good auditing which depends on appropriate processes, essential setting priorities, goals, schedules, project definition, supportive culture, and budgetary control for project implementation.
The lessons learned from technological innovations should be stored to ensure that clients are comfortable (Reiter, 2005).
Concept of globalization has led to generation of various changes within every industrial sector and creates a path towards the modernization. Introduction of computers and mobile phones are said to be the first modernized communication system.
There is an agreement that use of computers and use of the information technology can enhance the effectiveness of communication in terms of operation of the organization, therefore, the same effectiveness can be also present in its application in every department.
Computerization can be the most basic yet efficient process that an organization can demand in their every department. In accounting department, it is common for the accountants to commit mistakes in recoding the accounts because of the similarities of most of the accounts.
However, the application of a computerized system in the accounting can only lead the entire processes into obtaining appropriate solution into organization’s computerized accounting system (Sharma, 2008).
Integrated marketing mix utilizes existing Information Technology comprising of various elements contributing to their current monetary and non-monetary operations.
To satisfy the shareholders, the continuous change in operations has led towards complete evolution of computerized accounting system (Sharma, 2008). Computerization of the bookkeeping system can assist the financial and cost-accounting system, administration, and over all control in the accounting department.
It is expected that the computerization or the application of the information system provides technical basis for the purposes of developing sound managerial decisions.
In the long-run existing information can be analysed and then applied for the operation of Information Technology based companies. Such computerization methods assist in effective management of all segments and at the same time providing additional support required.
Related studies capturing the intricacies of analyzing nature of market segments within UK with respect to desired consumer needs have been conducted. Particularly, these have been conducted within the ethnographic investigations of most upper-middle-class and the sub-urban Shaker Heights society.
Most studies have also applied the cultural-ecological explanation model to investigate and analyze the many intertwining elements or conditions that may influence buying behaviour of consumers within such segments.
For instance, the cultural-ecological model related to the minority population segment integrates major groups of factors that may easily shift their based on the nature of goods supplied to them.
These include:
- the manner in which a particular community manage and handle various transportation means based on culture;
- how these minorities interpret and consequently respond to such technological advancements.
It is critical to observe that the first set of factor deals with the general system prevalent within a society. However, the second factor deals with personal or individual predisposition about certain manipulative or affective factors eminent from the major systems of the society.
The last factor is also unique because it majorly relies on the distinct history as well as the minority conditions or status within the larger European market. In general, these factors may be viewed to be the set of conditions originating from the community forces.
The focus of most studies have also intensively reviewed and analyzed the general consumer perceptions based on beliefs and practices. Some of these have potentially included factors such as their fundamental educational convictions as well as behaviours.
Their associations with the general market system and effective products and their explicit convictions and behaviours have also been critically analyzed and investigated.
The manners in which target population interprets and consequently respond to the notable cultural and technological disparities remain significant. This is due to their united identity citation.
In addition, the marketing strategies and approaches applicable and pertinent to these target markets are vital in the analysis and examination of the basic reasons or factors influencing and leading to product’s success or underperformance.
The information or facts from most of such investigations and studies have been assisting in the comprehension of the existence of performing automobiles not just within the urban setting, but again within the suburban communities.
Thus, it is notable that the class-based inspection of the challenges confronting UK market is still insufficient. Evidently, current studies on rate of use of motorcycles amongst younger generation seem limited and minimal.
Thus, the research will contribute considerably to the mentioned marketing catastrophe currently experienced by HD. It is crucial to consider these provisions within the marketing context. The marketing trends assumed by some competitors within the industry have proved devastating within recession periods.
These require immediate attention from the concerned sectors. This has been evident even within most research cases and study findings in automobile industry.
Therefore, it can no longer be assumed that the prevalence or domineering of some companies within certain market segments has potential influence or manipulation within their performance levels.
Harley-Davidson have to build great brand awareness throughout different international markets in order to play a crucial role in the consumer selection, and that could be achieved by establishing foreign representative sales and marketing offices within their desired target market countries.
International representatives would be divided on 3 main parts:
Asia (Beijing, China) – Beijing, the capital of the People’s Republic of China, is the nation’s political and cultural centre. It has become a well-developed modern city, an economic centre and being one of the biggest industrial bases in China.
It is the centre of China’s politics, culture, science, commerce, international interchanging, etc. In addition to that, China has a very large share of business in Chicago.
Hotel Tempus would comfortably accommodate business customers, as well as we would be attractive for leisure travellers due to a current “Mad Men” hype in China.
In Europe, London is the main business hub and the most cosmopolitan city in the United Kingdom. It exhibits a great cosmopolitan culture courtesy of its endless array of skyscrapers and a bustling city-life.
Having an office in London would benefit HD in terms of strategic location being close to largest companies, establishing corporate connections and gaining more business oriented customers.
In addition to that, London has direct flights to other strategic regions hence providing huge market advantages. In Canada, Toronto serves as its financial capital serving as the cultural capital of English Canada, and the largest city in Canada.
Whereas, Montreal is the most expensive city in Canada, situated in French part of Canada, being very historical and artistic. Establishing representative office and marketing campaign in these two regions, would generate flow of both leisure and business customers to HD products.
Sales and Marketing Department structure and work process (Fill, 2005)
Hiring of sales and marketing staff for an operation comes with the responsibility to provide effective sales management, which is controlled by Director of Sales and Marketing.
Sales team main focus should be reaching out to new and existing customers, through the primary channels that are individual for each particular type of guest, and conducting personal sales. Personal sales are often the most effective means of customer contact, especially in cases where market demand is high.
Personal sales call is used for the purposes of building rapport with clients or potential clients and selling those intended products and services.
Responsibility of a sales team would be equally distributed among employees of Sales division, each member of staff having a personal relationship with a population segment hence providing individual level of service and care in order to accommodate needs of customers.
Sales provide large revenue generating centre, which bring in direct profits.
Marketing
Marketing is a complex process that requires thorough research and focus on customers, marketing staff would provide sales team with a lot more tools to help them know the customer, for example creating a well-organized and professional sales kit.
Only the information pertinent to the client’s particular needs should be included, in order to get the business and convince consumers on the quality of HD’s products.
Accordingly to a desired target audience (domestic and international), the marketing department should serve as an extensive unit, consisting of small groups of people, especially at the phase of pre-opening marketing and launch.
Such individual employees should be held responsible for: Managing Social media and response, twitter, blogs, maintain and expansion of email database.
Performing creative marketing strategies, direct work with analytics and research agencies as well as engaging in publicity and corporate branding.
In addition to that, there should be an advertising agency serving the purposes of improving media decisions. This enables precise work on target markets and hence making efficient use of stipulated advertising budget.
The selection process of an ad agency should be conducted based on certain criteria’s, which would include mandatory portfolio experience with automobile firms, reputation, and ability to do a research and work within international markets.
Moreover, outsourcing company’s work would provide additional advertisement and marketing of the established network within HD’s brand.
Channels of reservations
Being in such aggressive and highly competitive environment HD must consider working with a suitable distribution channels for the purposes of reaching major target markets.
Technology has created a massive change within automobile industry; the days where there were no reliable ways of guaranteeing delivery of goods are gone.
As things move there is no escape from the digital revolution, and as a modern market, HD should consider these changes for long-term strategy based on attracting more customers.
There is a new breed of third party intermediary i.e. Google, Face book, Apple); their power grows, as they gradually become the preferred points of entry for consumers to do purchasing of equipments.
The categories of meta-search (Google, hotel Finder, Room Key), social, (Face book, Trip Advisor) and mobile (mobile apps) European actual economy requires a much more aggressive approach to sales and distribution.
As a matter of fact, the ultimate goal of any motorcycle company is to be visible on all distribution channels so that consumers can easily access the products.
Channel management is about managing a multitude of channels along with optimizing the level of sales and revenue which could generate and additionally manage company’s reputation online and offline (Van-Weele, 2005).
Each channel should be audited in an organized manner for the purposes of ensuring efficiency within potential markets. The channel and the processes supporting sales should be designed to be customer-centric where it is best suited to serve, and position appropriately within the distribution ecosystem.
This makes company products accessible and compelling in comparison to other competitors. Online customers would require individual channels of purchase. This would ensure that HD’s sales and marketing department reach out to customers through correct channels, foe example women from the target market.
HD’s task should focus on satisfaction of different customers having different needs, and ensuring they are satisfied for the purposes of maintaining relationships with existing customers and gaining new ones (Chandon et al, 2000).
Conclusion
From the information contained in the case study, there is necessity of HD’s management to develop and implemented electronic management system which enables bringing together of all operations within common network. There should be total improvement in chain management within the entire market.
This can be justified from the overall market performance which makes it possible, the necessary adjustments within consumers’ trends and market developments. Renovations within the revenue management system has contributed towards development of forecast system meant to optimize sales and pricing strategies.
Such developments enables managers to have easy time in following various developments within the entire market hence making necessary adjustments based on informed decisions.
Efficiency experienced in the operation of revenue management within can be attributed to the technological development within entire market system (Reiter, 2005).
On an annual basis, HD should establish new level of knowledge concerning consumer buying patterns based on psychology. Within this line of thought, it is easier to discover the necessity of developing significant marketing strategies.
Their effort to deliver to individuals, groups and organizations should be prompted by secure and knowledgeable workforce capable of identifying and satisfying consumer needs within different segments.
Harley-Davidson should invest in consumer behaviour research which enables the organization to have the capacity of obtaining extensive data on consumer spending patterns.
This can be very instrumental in strategizing for emerging markets. Consequently, they have improved on their responses and decision-making processes for the purposes of ensuring relevance within motorcycle industry.
There are decisions that are always very important when establishing strong base within potential market segments. In addition, HD should manage to keep their competitors in consideration, since main focus is on finding differences in superiority and taking advantage of such situations.
As an organization they should strive to identify where they record best performances, and at the same time focus on the quality of products within the market. Service branding appears to be a very important factor owing to the fact that consumers normally make their judgment based on their previous experiences.
In such cases HD should maintain an attractive brand name hence prompting an increase in market share.
The management should meanwhile set-up an investigation team charged with responsibility of looking into the various milestones hence come-up with concrete results and solutions capable of countering any form of failure.
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