Analysis of Harley-Davidson’s market research indicators and consumer insights
Harley-Davidson is considered to be one of the popular bike makers across the globe. Founded in 1903 the company gradually expanded its market capitalisation with a unique style design and powerful engines. In fact, it can be argued that the Harley-Davidson bikes created an heavy impact on the American culture after 1950s where motorcycle clubs and gangs were going to adapt the Harley-Davidson bikes as their dominant style. However, in course of time the company faced severe challenges in the international market due to the presence of more eccentric and cheap motorbikes mainly provided by the Japanese companies. Based on this understanding, the purpose of this report is to portray an understanding of the target customers of Harley-Davidson and the intense competitive market that creates a number of challenges in the market capitalisation of the company. In addition to this, the report also encompasses the implementation of Product differentiation strategy for the benefit of Harley-Davidson to attract the young generation.
Brand loyalty is an important aspect for any company that wants to expand its market more extensively. In this regard, there are some factors that can influence the new customer segments.
The brand logo of Harley-Davidson has a cult essence and it creates a great craving for customers to buy the product. Moreover, the design of the bike is crude and classic that attracts customers heavily. In fact, people are more interested in expressing their interests regarding the design and logo of the Harley-Davidson. It keeps them nostalgic and sensitive about the cruise design and stylish logo of the bike.
Moreover there is no doubt about the quality of the Harley-Davidson bikes and the bikes are very useful for long run. It can be argued that the technology and the engine support in Harley-Davidson are so excellent and heavy that for travelling and meeting long distance journey the Harley-Davidson bikes provides the best benefits.
However, there are also the disadvantages of the Harley-Davidson bikes that decrease the market capitalisation of the company in a rapid pace. In this regard, the responsible factors are
The cruise model of the Harley-Davidson bikes are not in trend nowadays. The sports bikes become most popular among the young generation. As a result of that lack of product diversity creates great problem for Harley-Davidson to create new loyal customers.
The safety and comfort issues are also caused detrimental impact on the organisations in a robust manner. Due to its heavy weight and lack of comfort the young generation is not so fond of purchasing the Harley-Davidson bikes.
Marketing strategies for Harley-Davidson
The logo and fame of Harley-Davidson created a number of fan clubs like the Boozefighters and the Galloping Goose Motorcycle but in later time these biking groups turned into criminal gangs dealing with narcotics and armed clashes. It damaged the brand value of the company.
For resolving the issues in the Harley-Davidson the ANSOFF matrix is very relevant and has the ability to mitigate the problem. The ANSOFF matrix has four different growth strategies in terms of the market penetration, market development, product development and the diversification strategy.
This strategy creates less risk in the market because it relies on the firm’s existing resources and capabilities. The market penetration strategy is very accurate in the growing market and it will be a strategic stance taken by the organisation in order to incorporate the core competencies related to a specific product. In addition to this, the market penetration strategy puts more emphasis on the existing opportunities to increase the market shares if competitors reach the capacity limits. However, the market penetration will be effective in an existing market with existing products. In this context, the existing products of the Harley-Davidson are the cruise bikes only and the young generation does not show any fondness towards it. Therefore there is no point for Harley-Davidson to procure such measure of market penetration.
The market development strategy is an essential part for the organisations that are facing huge risks and challenges in their market occupation. In this regard, it can be argued that market development puts focus on the additional market segments in order to increase the market capitalisation. The firm’s core competencies are an essential part of the market development strategy where the organisation tries to expand its market internationally or domestically or both. However, in case of the market development strategy the process can always be applicable for the new markets only. It is not possible for the existing market to develop the market further where the company already invests a lot. Therefore, the market development strategy is relevant to enter the new market with the help of the existing products. However, in case of the Harley-Davidson it can be seen that the existing products become fade away its popularity and as a result of that it will never be a good option for Harley-Davidson to expand its market further on the basis of the existing products.
Based on the present case scenario it can be argued that the product development measure is considered to be one of the major aspects that the company can leverage upon. The product diversification strategy is identified as the most risky strategy as it requires both product and the market development. As a matter of fact, the product development process imposes more importance on the new products and the existing market. It is coincided with the process of product differentiation where Harley-Davidson intends to develop new products in the existing market with the intention to compete in the existing market.
Actions taken by the company in 2007 and changes that could be made
The diversification strategy is considered to be an important and challenging step taken by any company. It is resembled with the relationship between market and product. In other words, in case of entering into a new market sometimes the companies are choosing the option of new products as a strategic step that can create high possibilities as well as high risks for the organisation. However, in case of the Harley-Davidson the company requires a fresh start to expand its market and attract customers especially the young generation as far as possible. It will foster a new image for the company that enables the young generation to buy the new product without having any nostalgia about the past experiences. Moreover, Harley-Davidson also able to set up a new momentum to the development of the new product with rapt enthusiasm and aggressive marketing.
In case of dealing with the growing challenge Harley-Davidson tried to diversify its products by introducing new brand with the name of Buell. The Buell model aimed at younger customers and intended to maximise the market capitalisation in a more robust manner. In this regard, it can be argued that the Buell model was focused to develop the image of the product in such a way that would be separated from the parent Harley-Davidson motorbikes extensively. Moreover, the Buell bike was built on the cutting edge technology used in developing super bikes. The lighter, sportier and the cheaper form of Harley-Davidson in terms of Buell intended to create a better market orientation. However, the product failed to encapsulate the market intensely.
In the light of creating an understanding regarding the product issue that created enormous damages to the tradition of Harley-Davidson, it is important to suggest some recommendations that the company could implement in 2007.
Market penetration pricing strategy is a process that keeps the product price low beyond the anticipation of the competitors. The purpose of this strategy is to attract new customers on the basis of low cost. Harley-Davidson should use such strategy to attract the young generations.
Digital market strategy still has relevance in 2018 where the social media marketing reaches its pinnacle. In case of Harley-Davidson the company might use robust digital marketing strategy in 2007 based on the tradition and brand value of the company but there was no such measures taken by the company
Social campaign helps to engage the local communities drastically. Despite of knowing the benefits of social campaigns Harley-Davidson did not care to implement such measures. As a result of that the company failed to cope with the demand of the customers and fell behind in the competition.
Conclusion
Based on the above discussion, it can be argued that dearth of marketing analysis and strong believes in its products ushered great problem to the extensive market capitalisation for the company. Harley-Davidson failed to anticipate the demand of the customers and as a result of that did not create new customer base. The report rightly pointed out these facts and opined a number of recommendations that the company could and can incorporate in its marketing objectives that will be a remedy for the crisis. Therefore, the report concludes that there are still opportunities for Harley-Davidson to reinvigorate its lost tradition.
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