This is a company situated in America and majors on manufacturing process of motorcycles. The company was founded in Milwaukee, Wisconsin during the 20th century (Wagner, 34). This was the period during which the great depression was recorded in major parts of the world but the company stood the intense shock of the years.
Its main competitor includes the Japanese companies manufacturing Honda, Kawasaki, Suzuki, and Yamaha. However Harley Davidson Motorcycle Company has managed to out beat these products consequently maintaining its market niche. Harley Davidson Motorcycle Company participates in the manufacturing and selling of 750 cc motorcycles which are designed to be used on the American highway system.
The motorcycles therefore are heavyweight in nature. In addition to this, Davidson Motorcycle Company sells parts of the motorcycles, its accessories, and general products related to motorcycle (Howard, 108). Buell Motorcycle Company which is a subsidiary of Harley Davidson Motorcycle deals with production of sport motorcycles. Harley Davidson financial services, is also a subsidiary company of Harley Davidson, Inc.
In the year 2009, Harley Davidson Company considered joining the Indian market in a bid to expand on its market niche. This was facilitated by trade agreement between India and USA to allow importation of mango. Harley Davidson Motorcycle therefore managed to establish a subsidiary company in India located in Gurgaon. In the resent years the value of the HD brand reduced by 43% a value associated with a drop in profits by approximately 66% in the previous years (Doug, 56).
Organizations marketing mix
In recognition of the fact that the company encountered major problems related with its marketing in the year 1980s, the management explored the possibility of new innovative plans to increase its market share.
Teerlink Richard, who was the former CEO of Harley-Davidson, came up with a strategy of management circles aimed at converging dealers and workers together to formulate specific critical decisions. Products were also manufactured to suite the needs of the customers. This paper presents four marketing mix used by Harley-Davidson Company in its marketing criteria.
Product
This makes up the decisions to ensure continuity of the development of the brand of the company while shaping the outlook of the brands so as to attract more customers. During the formation of the company, motorcycles with grey color were offered to the customers but have continuously developed its brand in order to maintain its profits at a higher level.
V-Ron was a new product developed by the company in an attempt to capture the young population and ultimately increase its share in the market to a proportionally greater extent (Edge, 42). So as to sharpen more the product, HD considered reshaping its production criteria by improving the production process and facilities. Another point to note is the inculcation of statistical controls in quality improvement procedures.
While recognizing the customer as an important person in business, HD found it good to importune customers during their rallies. As stated by Howard (107), HD plans to hit the market with new and sophisticated makes during the year 2010. The products will give customers a real taste.
Promotion
There are several approaches to promotion available to HD Company in its distinct promotional program. The use advertisement beautiful images of female gender are seen to capture the attention of the target group who in this are the male gender. Cyber cafes located in most of the outlets have served a great advantage to the company by exposing its product to a variety of internet visitors.
Its website has an aspect of interactive therefore bring the customers to the point of care. Visitors to the site can get detail information about the variety of products and services. One of the key promotional programs is its brand outlook (image) of being a real American product. This image orients a person to a position of self-importance in an American environment. Subsequently, formation of HOG closed the gap between the company and the customers.
Price
After the financial crisis which had reduced the asset base of HD, cutting on cost remained the objective of the company. This necessitated reducing on the capacity of the company and subsequently slashing the salaries of the employees. With an aim of fighting products from Japan (Honda, Kawasaki, Suzuki and Yamaha), HD participated in delivering its products in real time basis. Furthermore, introduction of tariffs on imports came as advantage to HD since it managed to offer competitive prices.
The company uses low-end method of targeting its customers. The price of V-Ron is the second highest after MSRP. Some of the factors which have contributed to the pricing of V-Ron in its 22% market niche are is the inability of the company to be in congruent level with demand, the low priced motorcycles and the market available from the used motorcycles (Edge, 42). These factors offer an aspect of competition to the company consequently shaping the price technique.
Place (distribution)
HD has seen its branches infiltrate the international market like India. Some of the promotional magazines available in international market have substantially elevated the company’s products to an internal recognition. The availability of dealers in most of the parts of America with largest focus of customers offers a good distribution network.
The dealers mainly indulge in distribution of HD products to an extensive customer base. In the same vein, HD expands its distribution network by the use of dealership programs, shows, and PR. It is also in its distribution programs that Demo bikes are availed at proceedings like Daytone (international convention). Some of the outlets of HD are designed to target customers with low enthusiasm. Such departments include: Costco’s and BL’s (warehouse clubs located in the USA) which are non dealer network.
Reference List
Doug, Mitchel. Harley-Davidson Chronicle – An American Original. Lincolnwood: Publications International Limited, 2009.
Edge, Dirck. ‘‘ 2009 Harley- Davidson Touring Models and V- Ron Muscle- MD Firstrides’’. Web.
Howard, Wilson. “The Encyclopedia of the Motorcycle”. London: Dorling-Kindersley Limited, 2005.
Wagner, Herbert. At the Creation: Myth, Reality, and the Origin of the Harley-Davidson Motorcycle, 1901–1909. Madison: Wiconsin Historical Society Press, 2003.