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Futurist Team #6 Joe Amado, Frank Bartos, Jackie Conner, Kimberly Fuller, Kimberly Montgomery Harley-Davidson.

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Presentation on theme: "Futurist Team #6 Joe Amado, Frank Bartos, Jackie Conner, Kimberly Fuller, Kimberly Montgomery Harley-Davidson."— Presentation transcript:

1 Futurist Team #6 Joe Amado, Frank Bartos, Jackie Conner, Kimberly Fuller, Kimberly Montgomery Harley-Davidson

2 Company Updates Retirement of CEO Jeffery L. Bleustein New models such as Softail Deuce, VRSCA V-Rod, Blast and Firebolt Used Twin Cam 88B in engines instead of Twin Cam 88 Expanded facilities Open Road Tour began in 2002 in Atlanta Georgia

3 Company Updates Intoduced three new motorcycles in 2005 2006 VRSCR Street Rod 15 th Anniversary Edition 2005 Fat Boy 2005 Sportster 883R

4 Company Updates Changed Warranty “Operation Extend the Ride”

5 Inside Harley-Dvidson Harley-Davidson’s revenue for 2004 was $5.02 billion compared to 2003’s revenue of $4.62, an increase of 8.5 percent. This is Harley-Davidson’s nineteenth consecutive record year in revenue and earnings. They dominate the market in North American. In 1998 they had the smallest market share in Europe at 6.4% and in Asia/Pacific it had the fourth smallest market share at 15.6% (Mattson 13). Five years later in 2003 they had the biggest market share in Asia/Pacific at 25.8% and the sixth smallest market share in Europe at 8.1% (Harley-

6 Harley Owners Group (H.O.G.) H.O.G. was established by Harley-Davidson in 1983 in response to a growing desire by Harley-Davidson owners and riders for an organized way to share their passion and show their pride ( Today H.O.G. has 900,000 members and is the largest factory-sponsored motorcycle organization in the world ( Benefits: Subscriptions to Hog Tales and Enthusiast, membership manual, membership only site, toll-free number, touring handbook, mileage program, pins and patches, insurance, travel center, events, etc.

7 Harley-Davidson Services Financial services- motorcycle loans, cycle insurance, and the Harley-Davidson Visa credit card Rider education- new rider, skilled rider, and group riding courses Rentals and tours- allow customers to rent a Harley from their Harley-Davidson Authorized Rentals and gives tours through their Harley-Davidson Authorized Tours These services can be beneficial to many customers and help them through the whole process of buying and owning a Harley.

8 Marketing Strategy Original Strategies - Tradition - American Made - Feeling of Freedom Problems - Baby Boomers - Generation Y - Sports Bike Phenomenon - Global Competition

9 Marketing Strategy New Strategy - Appeal to “young riders” of Generation-Y - 2005 VRSCA V-Rod motorcycle series - H.O.G. (Harley Owners Group)

10 Expanding Internationally From its inception, Harley Davidson has enjoyed success in most of North America. Harley Davidson has not been as successful abroad, particularly in Europe and Asia.

11 Expnading Harley Davidson faces fierce competition in Europe and Asia, primarily from manufacturers such as Honda, Kawasaki, Yamaha, Suzuki and BMW. These manufacturers produce a variety of motorcycles that draw consumers away from Harley Davidson. Since 1998 however, Harley Davidson has increased its market shares in both of these regions.

12 Expanding In 1998 Harley Davidson had a 5.9% market share in Europe. In 2003 that number increased to 8.1%. For Asia, Harley Davidson had a 14.8% market share in 1998 and in 2003 that number increased to 25.8%

13 Why the increased market share? 100 th anniversary model Increased supply channels Introduction of sportster models in 2003 Sportster – 1200 Roadster

14 Expanding Harley Davidson has also increased its brand recognition abroad. Harley Davidson is now selling police motorcycles to 45 different countries around the world Increases in “H.O.G.” membership

15 Positive Marketing Strategies Leading manufacturer of motorcycles in the U.S. “Anti-internet” website Only produce motorcycles

16 Harley-Davidson in the Future Expand manufacturing facilities Market to all age groups instead of just middle-aged males Use television marketing Price product in Europe based on annual income

17 Questions?

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