Harley Davidson Biking Company: Bonding with the Biker
Syndicate 2 Harley Davidson Motor Company:
-------------------------------------------------
Bonding with the Biker
Prepared for: Marketing Management Bus 5043
Prepared by: S. Maharaj
February 2012
Case Study
PESTLE ANALYSIS * Harley Davidson Motor Co was established in 1903. * Despite faring badly in the 1970’s due to the threat that Japanese Competitors posed, by 2006 the company held over half the share of the US heavyweight motorcycle market, and a third of this market worldwide. This was as a result of a new strategy that was implemented in the 1980’s, that shifted the focus of the company onto its customers. * Harley Davidson was introduced to the South African market in 2006. Since then, 6 new dealerships have opened, nationwide. * While the growth of the company locally has been tremendous (largely attributed to the weather, that encourages people to be outdoors), the South African market accounts for only 0.29% of the total Harley market. * Locally, Harley dominates its market by holding 67% of the total market share. * The Riders Academy and HOG are initiatives that have boosted the company’s status in the minds’ of customers. These customer-orientated services are what have differentiated the company from competitors, in the minds of customers. * The average purchaser of a Harley Davidson motorcycle is male and in his mid-forties, with an average income of R596 000 (these purchasers make up 88% of the market). A large percentage of these riders are married, professionals. * Female purchasers account for 12% of the market and are usually career-orientated, independent and unmarried women who are around 29-30 years of age. South Africa has the highest representation of female riders worldwide. Research has also indicated that female riders are buying more expensive bikes (ranging from R137 000 upwards). * There is growing interest from the black diamond segment in South Africa, but the
-------------------------------------------------
Bonding with the Biker
Prepared for: Marketing Management Bus 5043
Prepared by: S. Maharaj
February 2012
Case Study
PESTLE ANALYSIS * Harley Davidson Motor Co was established in 1903. * Despite faring badly in the 1970’s due to the threat that Japanese Competitors posed, by 2006 the company held over half the share of the US heavyweight motorcycle market, and a third of this market worldwide. This was as a result of a new strategy that was implemented in the 1980’s, that shifted the focus of the company onto its customers. * Harley Davidson was introduced to the South African market in 2006. Since then, 6 new dealerships have opened, nationwide. * While the growth of the company locally has been tremendous (largely attributed to the weather, that encourages people to be outdoors), the South African market accounts for only 0.29% of the total Harley market. * Locally, Harley dominates its market by holding 67% of the total market share. * The Riders Academy and HOG are initiatives that have boosted the company’s status in the minds’ of customers. These customer-orientated services are what have differentiated the company from competitors, in the minds of customers. * The average purchaser of a Harley Davidson motorcycle is male and in his mid-forties, with an average income of R596 000 (these purchasers make up 88% of the market). A large percentage of these riders are married, professionals. * Female purchasers account for 12% of the market and are usually career-orientated, independent and unmarried women who are around 29-30 years of age. South Africa has the highest representation of female riders worldwide. Research has also indicated that female riders are buying more expensive bikes (ranging from R137 000 upwards). * There is growing interest from the black diamond segment in South Africa, but the