Harley

Harley Executive Summary The rate at which the world economy is growing is making companies to adopt management strategies which will enable them to increase their global market share as well as remain competitive and profitable in the global market. This paper will therefore discuss the various ways in which companies are shifting from their traditional means of production so that they can manage to catch up with the advanced means of production which will enable them to increase their productivity and competitiveness.Advertising We will write a custom report sample on Harley-Davidson specifically for you for only $16.05 $11/page Learn More The paper will focus on the operations of Harley-Davidson and the manner in which the company has been able to cope with the growing competition in the motorcycle industry. The paper will also illustrate the complexity that is associated with the global market and how it has influenced the performance of Harley-Davidson. The pa per will show the manner in which Harley-Davidson has adopted different management strategies that have enabled it to recover from the effects of the 2008 financial crisis. The paper will also stipulate the inefficiency that is associated with Harley-Davidson production process. It will also show the various strategies that Harley-Davidson should adopt in order to increase its competitiveness in the global market. The paper will also demonstrate how Harley-Davidson understands the competitive nature of the global market and how the company has been able to emerge as one of the most profitable companies in the America. Introduction With the rate at which the world economy is growing, companies are being forced to look for strategies which will enable them to increase their market share and hence remain competitive and profitable. Many organizations are being driven out of business because of their inability to adopt the production processes which are being adopted by the modernized c ompanies. Therefore, in order for organizations to boost their competitiveness, they are implementing strategies aimed at improving their marketing, management, and manufacturing techniques (Dess, Lumpkin, Eisner, 2009). With the complexity that is associated with the global market, businesses are implementing measures to enable them learn about effective business management strategies so that they can manage to keep producing products which meet the needs of their customers. Technology is changing together with the global market trends thereby making the tastes and preferences of consumers to change considerably. As a result, organizations are being forced to design products which meet the tastes and preferences of the modern consumer (Elliott Percy, 2007). However, they will find this strategy possible if they take time to learn about the needs of the modern customers. Organizations are therefore shifting from their traditional ideas and focusing on developing products that rhym e with the tastes of the consumers in the modern world.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The companies that have been resistant to change are finding it difficult to catch up with those companies which have incorporated technology in their production process. Though shifting from the traditional means of production is an expensive undertaking, it is worthwhile if a company wishes to remain in business for a long time. There are many companies which have been able to shift from their traditional production processes and they have hence been able to satisfy the needs of their consumers. An example of a company that has been able to shift from traditional means of production is Harley-Davidson. The company has been in existence since 1963. Since then, the company has been known to provide its customers with products that meet their specifications. The company’s main activities include the manufacture of motorcycles (Gamble Schafer, 2012). It has therefore been able to design motorcycles tailored for specific markets. The main classes of motorcycles that the company has been able to produce successfully include cruiser, touring, and performance motorcycles. These classes of motorcycles have been able to meet the different riding needs of the customers (Gamble Schafer, 2012). This paper will therefore carry out a case study analysis of Harley-Davidson and illustrate the various management strategies that the company should adopt to enable it to remain a dominant player in the motorcycle industry. The paper will also discuss the various challenges that the company has encountered while trying to take its operations to the international market as well as the effects of the global recession on the profitability and competitiveness of the company. Harley-Davidson Contemporary Strategy Analysis Company overview The revenues of Harley-Davidson declined significantly as a result of the economic recession that hit the US major markets between 2008 and 2009. The effects of the economic recession declared many people jobless while the purchasing power of the consumers also reduced significantly. The international market was also hesitant to purchase products from the US thereby reducing the number of motorcycles that Harley-Davidson sold to the overseas markets (Stermer, 2007). The effects of the global recession made the demand of motorcycles to reduce by 12.7 per cent. This reflected a 15.1 per cent reduction in the revenues that the company had made the previous year. This is an indication that the stability of the financial market plays a very important role in ensuring that the sales of a company remain constant. With the credit crunch that was encountered in 2008, Harley-Davidson was forced to finance its operations using loans (Schembri, 2009). This made the liquidity of the company to go down significantly.Advertising We will write a custom report sample on Harley-Davidson specifically for you for only $16.05 $11/page Learn More Harley-Davidson as a very profitable company Though Harley-Davidson is one of the most profitable companies in the world, the company has not been effective in its production processes. Since its establishment, the company has always been faced with the problem of insufficient production capacity. It has therefore not been able to meet the demands of its customers. This is a major weakness for any business enterprise. Customers of a company should not be made to wait for a long time for the products they demand to be processed (Schembri, 2009). However, Harley-Davidson has been unable to meet the demands of its customers. The delay in the production process has therefore made the company to lose a large number of customers. Harley-Davidson customers are forced to look for other companies that have the ability to supply the products that they dem and in time (Stermer, 2007). Therefore, to be able to retain its customers, Harley-Davidson needs to increase its production capacity to enable it supply its customers with high quality products when they demand them. Consolidating plants It is important for an organization to ensure that its manufacturing plants are consolidated at a common location in order to reduce the costs of production and also to improve the efficiency of the production process (Smit, 2000). However, the manufacturing operations of Harley-Davidson are dispersed. For example, the company manufactures its engines in Milwaukee and Wisconsin while the engines are assembled in York, Kansas City and Missouri (Fred, 2008). Therefore, in order for the company to cut down on its costs of production, it needs to develop a single facility which can manage to merge the engine manufacturing and assembly operations. This way, the company can be able to achieve a cost leadership advantage thereby enabling it to increase it s market share significantly. However, because of the company’s inability to keep its costs of production down, Harley-Davidson has been unable to expand the sales of its high-priced motorcycles outside the US market. Participating in riding activities In order for motorcycle companies to improve the riding experience of their customers, it is important for the managers and employees of different organizations to participate in organized riding activities together with their customers. This gives the customers a feeling that the products they purchase will meet their needs (Hitt, Ireland, Hoskisson, 2010). As a result, Harley-Davidson participates in HOG activities to enable it communicate with its customers (Cooney, 2005). This way, the managers and the employees are able to interact with their customers thereby convincing them about the importance of purchasing motorcycles from the company. These kinds of activities therefore serve as marketing tools for the company. Effic iency in the manufacture of different types of products A company should be efficient at manufacturing all types of products which can enable it to capture a substantial share of the market (Hopkins, 1999). However, Harley-Davidson is only efficient at manufacturing super heavy motorcycles but it is not able to design small bikes. This is an indication that the company is weak in terms of implementing certain production processes. In addition, it has been noted that the company is not able to incorporate research and development in its production process. The company also limits its ability to invest in new technology. The recent drop in the market share of Harley-Davidson can therefore be attributed to the technological backwardness of the company (Neghina , 2009). Technological backwardness is therefore a major issue that the company needs to address in order for it to increase its market share.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Importance of technology In order for a company to emerge successful in the global market, it needs to make use of the advancements in technology to enable it design products that are appealing to the customers’ eyes. Technology also facilitates the manufacture of quality and efficient products. It is therefore important for Harley-Davidson to invest in up-to-date means of production to ensure that the products it produces are efficient and that they respond to the needs of the customers. For example, it is true that the market share of Harley- Davidson motorcycles in Europe was the lowest in the year 2007 compared to the market share of Honda, Kawasaki, Suzuki, Yamaha and BMW (Hopkins, 1999). This is because the customers in Europe are more sensitive to technology while the consumers in the US market believe that Harley-Davidson incorporates the American culture in its manufacturing process. Therefore, in order for Harley-Davidson to increase its market share in the European region, it needs to make use of technology to enable it customize motorcycles for the European market. New Models A company can secure a significant market share by providing its customers with new models. Once new products are introduced in the market, the existing customers are the first to purchase the new models (Hitt, Ireland, Hoskisson, 2010). Harley-Davidson is well known for introducing new models in the market. As a result, it is able to increase its sales revenue and market share. However, this is not a very effective strategy because not all customers stand ready to replace their old models. Therefore, the introduction of new models alone may not enable the company to increase its revenue and market share to the levels that is desires. To increase its market share therefore, it is important for the company to ensure that the new models it introduces into the market incorporate the latest technology. This would motivate the customers to purchase the products and hence bo ost the company’s profitability. Emphasis on comfort The products that consumers purchase should be able to offer them comfort. It is therefore important for companies to design products which offer customers comfort while using them. Companies should therefore customize their products in a way that meets the specifications of the customers (Schembri, 2009). To increase the sales of its motorcycles therefore, Harley-Davidson customizes products for the customers who need certain specifications. Customers are therefore able to gain maximum satisfaction while riding the motorbikes. This strategy has enabled the company to win over a significant number of customers. Distribution networks The distribution network of products plays a very important role in determining whether an organization can manage to deliver products to its customers on a timely basis and at an affordable price. The channels of distribution used determine whether the customers can manage to gain access to the products that a company produces. Therefore, it is important for an organization to ensure that the distribution network it adopts makes it easy for the customers to access the products at a cheaper price. It has been noted that Harley-Davidson competitors implement distribution networks which are less costly and more efficient in Europe. As a result, the competitors have been able to acquire a larger market share in Europe because of the efficacy of their distribution networks (Cooney, 2005). Therefore, in order for Harley-Davidson to market its products in Europe successfully, it needs to carry out a study about the European market and determine which distribution network to implement. After sales services There are certain services that a business is supposed to offer in order to make people trust in the products that the organization produces. To ensure that customers keep coming back for more products, the management of Harley-Davidson ensures that the customers are accorded p re and after sales services. This way, the customers are able to get all the information and help that they need to begin using the products. In addition, Harley-Davidson offers test-ride services as well as rider instruction classes. The company also rents motorcycles to its trusted customers (Stermer, 2007). As a result, the company has been able to win the confidence of the customers thus making the customers to trust in the products that the company manufactures. This state of affairs has led to an increase in the market share of the company especially in the US. Addressing complexity The process of manufacturing motorcycles is complex. To address this complexity, Harley-Davidson created the Harley-Davidson University whose goal was to ensure that the employees within the organization became competent in dealing with all the products that the company manufactured. Since then the company has been able to boost the knowledge of its employees by showing them how they can come up wi th high quality products that would meet the needs of the customers. The company has therefore been able to manufacture motorcycles which are very competitive in the world market. It is therefore the responsibility of an organization to invest in projects which can boost its production potential. Customers are therefore confident in the motorcycles that Harley-Davidson manufactures because they are sure that the motorcycles are manufactured by experts. Diversification of business practices Before the credit crunch which hit the US market in 2008, Harley-Davidson used to give financial services such as supplying credit, insurance and extended warranties to its dealers. This activity used to generate huge profits for the company. For example, the profit that was generated from this activity was approximately 12 per cent of the total revenue. However, the credit crunch made it difficult for the company to securitize its customers loans (Neghina , 2009). Therefore, it is true that thoug h diversifying in various profit generating activities in a business enterprise is a commendable idea, it is important for an organization to ensure that it can manage to secure its customers from uncertainties. This way, the customers would be confident in the operations of the company and hence trust in the products it produces. However, the inability by Harley-Davidson to secure the loans of the customers made the customers believe that the company was not strong enough to address their needs. This state of affairs made many people to stop believing in the quality of the products that the company offers thus leading to a reduction in the company’s sales. Expanding operations to overseas markets Any company that wishes to gain recognition in the global business environment should expand its operations to overseas markets. This would increase the market share of the company and its sales revenue. However, Harley-Davidson has concentrated so much on the American market. The E uropean market share is very small. To make it easy for Harley-Davidson to acquire a substantial portion of the European motorcycle market, the company should establish headquarters in Europe which would be responsible for monitoring all the activities that the company undertakes in the region. The company should also expand its overseas dealership network. For example, Harley-Davidson made $1.75 billion non-US sales in 2008. These sales reflected 31 per cent of the revenue that the company had earned globally (Elliott Percy, 2007). This is an indication that the markets which are based out of the US also have potential to make the company become competitive. Company operations should rhyme with objectives It is the duty of every manager in any organization to ensure that the operations that the organization undertakes are in line with its objectives. For example, Harley-Davidson engages in practices such as Just-in-time scheduling, Total Quality Management, Computer Aided Manufact uring, and devolution of responsibilities to ensure that its productivity and efficiency remain high (Hopkins, 1999). Such practices are effective in that they make it possible for the manager to detect any flows within the organization and hence implement corrective measures before any serious damage can be realized. Positive relationship between employees and managers The manner in which employees relate with their managers determines whether the productivity of an organization rises or falls. The most successful organizations are known to facilitate effective communication between the employees and the managers. The employees are given the freedom to express their opinions on how they feel that their organization should be operated. Therefore, to ensure that the employees remain motivated, Harley-Davidson ensures that the managers and the employees are able to exchange ideas freely regarding how the productivity of the organization can be improved. This process has been effective in fostering cooperation between the employees and the managers thereby enabling the organization to increase its productivity and efficiency. Understanding competition Any company that wishes to succeed in the global market should understand what is meant by competition and how it can cope with it. For example, Harley-Davidson is well known for increasing its product range and geographical scope to capture a large market. However, the major challenge that is facing the company is the rate at which its products are being imitated by its competitors. In addition, competitors such as Honda, BMW, and Suzuki are known to share technology, marketing skills, engineering capabilities, and distribution knowhow thereby making it difficult for Harley-Davidson to successfully diversify the products that it offers to its customers (Hitt, Ireland, Hoskisson, 2010). This scenario is more prevalent in the European market because this is where Harley-Davidson has less impact. Conclusion From the analysis therefore, it is evident that Harley-Davidson is one of the most successful motorcycle companies in America. Though the company is one of the most profitable companies in the world, there are various key measures that the company should implement to enable it compete effectively in the global market. The company should ensure that it embraces technology, foster positive relationship between the employees and the managers, diversify its products range, expand operations to overseas markets, give the customers pre and after sales services, lower costs of production, seek loyalty from customers, and ensure that it offers the consumers new products and models. This way, the company will be able to increase its competitiveness in the global market. Reference List Cooney, J 2005, Why and How Harley-Davidson has Maintained Consumer Brand Loyalty. Web. Dess, G G, Lumpkin, G T Eisner, A 2009, Strategic Management: Creating Competitive Advantages, McGraw-Hill Irwin, London. Elliott, R Percy, L 2007, Strategic Brand Management, Oxford University Press, Oxford. Fred, A 2008, Harley Davidson Case Study Building Brand Communities. Web. Gamble, J E Schafer, R 2012, Harley-Davidson. Web. Hitt, M A, Ireland, R D Hoskisson, R E 2010, Strategic Management: Competitiveness and Globalization Concepts, Cengage Learning, New York. Hopkins, H D 1999, Using history for strategic problem-solving: The Harley-Davidson effect, Business Horizons, vol. 42, no. 2, pp. 52-60. Neghina , C 2009, Harley Davidson Case Study Building Brand Communities. Web. Schembri, S 2009, Reframing brand experience: The experiential meaning of Harley–Davidson. Journal of Business Research, vol. 62, no. 12, pp. 1299–1310. Smit, P J 2000, Strategy Implementation: Readings, Juta and Company Ltd, New York. Stermer, B 2007, Harley-Davidson Motorcycles: Everything You Need to Know, MotorBooks International, New York. Harley Background Marketing is an important exercise in both services and goods industry; it ensures that target customers access goods and services a company manufactures. Marketing involves processes that determine the kind of products or/and services of interest to customer then the company knows exactly what to manufacture or trade in.Advertising We will write a custom research paper sample on Harley-Davidson Motor Company Marketing Plan specifically for you for only $16.05 $11/page Learn More Other than advising a company on the kind of products to make, marketing goes further and establishes the right method, channels, strategies and systems to get the products/services to target market (Mullins, Walker, 2010). The American motor cycle industry is one of the fast growing economic sectors where motor cycles are used for various functions like trade, transport, sporting, as security officials automobiles, and sometimes for leisure. Harley is an international mo tor cycle manufacturing company based in the United States of America; the company is respected for making reliable heavyweight (over 750 cc) motorcycles and genuine motorcycle accessories. The automobile industry has been ventured by cheap aftermarket sales that compete with original accessories; the market is favoured by the cost and the room for customizing once motor vehicles offered by the automobile. The challenge by the secondary industry offers a challenge to Harley-Davidson Motor Company; report is a marketing plan that the company can adopt to compete effectively in the market. Company overview Harley-Davidson Motor Company was founded in 1903 by three childhood friends by the names William Harley, Arthur and Walter Davidson; the initial idea was to make racing bikes with engines however they advanced their idea to have the bikes used for transport. In 1905, the company had started to be recognized and advertising its products in media in the United States; currently the c ompany has its head quarters at Milwaukee, Wisconsin, United States and headed Keith E. Wendell, the company’s chief executive officer.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In 2010, the company recorded total sales of US$ 4.46 billion which translated to US$ 259.7 million; of the amount about thirty percent was derived from sale to foreign markets. As at December 2010, the company had 6302 members of staffs distributed in its outlets (Harley Official Website, 2011). Executive Summary No single statement can explain what is marketing; briefly, it is a link between customers and a company, the feedback from either side is crucial in improving goods and services produced. Harley-Davidson Motor Company is facing an increasing competition from aftermarket accessories, thus the marketing team has found it important to develop a marketing plan to form the base of an aggressive marketing for the products. The main target market that the plan will focus on are existing customers, which the plan will embrace customer relation management strategies to build, maintain and manage customer loyalty; the second fold will focus on automobile users where the company will aim at convincing buyers to use its genuine parts; this will embrace strategic marketing tools like communication marketing strategies (MARCOM). The last target market that the company will focus is diversification of its market base, to use this approach; the company will make use of blue ocean marketing strategies. The report will also include the suggested marketing budget for the launch of the strategy. Target Market The campaign strategy will be divided into three main target groups differentiated by their behaviour as far as use of Harley-Davidson Motor Company spare parts and those from after market sellers. The first category encompasses customers of Harley-Davidson Motor Co mpany spare parts; they can be seen as people who have loyal to the company and have the characteristic of using genuine products. The main focus on these customers involves enacting measures to maintain current market base and improve the relationship with the customers. The main activities that will take place focusing on this target market are the following: measure approach; this is an approach where information from customers is collected; the information is on the level of satisfaction that customers are getting from the company.Advertising We will write a custom research paper sample on Harley-Davidson Motor Company Marketing Plan specifically for you for only $16.05 $11/page Learn More The second move will be to manage products and service delivery, what the customers are finding as correctly done should be reinforced and what they find as wanting should be rectified. With the feedback from the customers, then the company can decide on ways to impro ve service delivery; by service delivery, the company should be interested on the level of service that aftermarket accessories suppliers are giving then aim at surpassing the level set. The second target market segment that the company will be looking at is the â€Å"undecided customers†, they are people who buy either Harley-Davidson Motor Company genuine spare parts or sometimes buy after market products. The reason for their behaviour should be determined by a market research. It is likely that they buy the available product, thus policies that make genuine parts available should be made. The third target market that the management should look into is the untapped market; this is market that is less competitive with the aftermarket products. To venture into this, it can be through robust marketing campaigns that sells both bikes and spare parts. The company can decide to open its own market where they sell bikes then later on reinforce the use of genuine spare parts. Comp etitors The main competitors that the company will have to deal with are aftermarket sellers; they are people who sell spare parts or body and engine parts that can fit certain models of Harley-Davidson products. There are many reasons why some people prefer to use these products other than using the genuine parts. One of the post quoted reason why some people prefer after market products is because they are made by specialists thus they are of high quality, other people prefer them because they are less costly than genuine parts. The above two reasons happens to be the strength of competitors; Harley-Davidson company should embrace the challenge and aim at countering the strengths of the companies. To challenge the competitors, the company should venture in programs that improve the quality of their spare parts, in the case there is a certain modification that can breakeven when made as an accessory, and then the company should adopt such an accessory.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Price has always been an issue when marketing for commodities, there may come sometimes that Harley-Davidson products are expensive than those of the aftermarket, the management has two interventions to make; one ensure than the price of accessories represent value for money. The second intervention that the company should ensure is that it has attained high quality products and efficiency in their products. The best weapon to counter competition rests in understanding customers, providing high quality products, aggressive marketing that educate users on differences, and products differentiation. Product or Service The subject of the matter in this marketing plan is the sale of genuine motor cycle parts; the accessories involve engine parts, body parts, and other related accessories like bolts and nuts. When creating the products, the company should be aware of the model and the demand that the parts will have in a specific area. The products aims at offering repair accessories owne rs of Harley-Davidson products, it aims at winning customer loyalty in the market filled with aftermarket products. Different model of bikes require different repairs parts, thus they need to be made available; one of the main characteristic that the product will be selling to the people is its originality, quality, guarantees, and genuineness. When developing and improving the products, the sales book will of great use as it will help the company analysis the market, on where is a certain product or certain model of bike; with the clear understanding, and then campaigns will be focused on the particular area that has a certain machine (Vorhies, Morgan Autry, 2009). Marketing Budget When making a marketing strategy, there is need to develop the budget that various activities involved will fall under. Budget follows some costs heads that is a consolidate figure involving different individual costs. The following budget will be incurred: Activity Cost (US $) Research and collect ion of data 20,000 Staffs subsistence and other fixed costs 10,000 Experts and professional fees 500 Structure and infrastructures laying 5,000 Policies support costs (they include costs of advertising, promotion etc) 5,500 Follow up costs 500 Total 41,500 The above costs heads involves costs that can be classified under the heading. Description of Location Since there are different models of bikes, the location of market will be determined by the model and type of spare parts that may be applicable to the particular area. When the above has been determined, the locations that will make them accessible will be determined by the marketing team. Some of the suggested places that the parts can be stocked include garages, supermarkets, automobiles accessories shops, and the bikes distributing channels. The main reason for determining the location is to ensure that the goods reach to the target customer at the right time in a form that is acceptable. With the suggested pla ce in mind, the marketing team should come up with the best transport, supply and logistics methods that should be implemented to get the goods to the customers. The right channel of communication should ensure that the company’s products get to the target market in the shortest time possible. The nature of some of Harley-Davidson products users is that they are likely to attend motor shows and other promotional events, the management should set a budget that can be used to market the products one on one in these places (Lyus, Rogers Simms, 2011). Pricing Strategy Price is an important marketing parameter that should be looked into when making a marketing strategy; it is through the price of a commodity that the company meets its expenses and gets a gain form the sale. There are two main elements that an effective price should have; the price should be high enough that the company will get some profit from the sale and the price must be affordable. Harley-Davidson products m arketing team will have to undertake a market price review where they will compare the costs and prices that competitors are able to sell, when they note them, they can work back and set their prices. In the situation of Harley-Davidson products, the best pricing approach to use is the premium pricing approach, under the method the management sets a price that is slightly higher than the prevailing price; the reason for the high price is both psychological and economical. From the psychological part, some people believe that quality is expensive thus they are likely to buy the products; the second reason is because the price set should represent quality offered by the company (Hsuen-Ho Jia-Wei, 2010). Summary and Implementation Plan The implementation stage has a number of processes that will be involved, they are as follows: Marketing research Marketing research involves the marketing team undertaking a desk and field research that determines the company’s rate of performan ce verses the rate at which aftermarket products are selling. The information offers the background that the strategy will be built on; the gaps realized should be analysed and meanings derived from them. The initial market research offers the team an overview of the areas they should address in the strategy. Analysis of data The initial stage was involved in the team collecting volumes of qualitative and quantitative data; the data from customers, bureaus, and internal information and industry reports should be reviewed to ensure that the problem that the company is facing is well understood. It is through problem and gap analysis that the company can come up with the most effective solutions. Strategy development With the data and problem well interpolated, there is need to have systems that are focused on the problem. The three main target markets needs different approach thus the marketing team should be clear on the approach to use and at which point they will have to quality a certain employee to the next higher level. Policy enactment and implementation Specific strategies to address a certain issue needs to be enacted through policies and infrastructures; the infrastructures needs to be put in place. For example to maintain customers there is need to have effective communication systems where the company can get feedback on various issues. Enforcing, monitoring and controlling When all is good to go, the management should ensure that it has enacted policies to maintain an improved relationship with customers. The policies enacted should be improved appropriately so that they do not fall out of relevance. In the implementation stage, the management should have the policy of marketing mix in mind; the following sample of an applicable marketing mix can be used: Diagram 1: The above diagram gives a guide of the areas that the management should look into when enacting the marketing strategy (Day, 2011). Conclusion An effective marketing strategy is a comp etitive advantage tool; Harley-Davidson Motor Company should embrace tools of strategic marketing to remain competitive amidst increased suppliers of aftermarket repair accessories. The company should embark on effective communication campaigns that create awareness and differentiation of its products; it should also embrace the concept of â€Å"Blue Ocean† to widen its market base indirectly. For an effective marketing campaign that can stand competition, Harley-Davidson Motor top and line managers need to support efforts made by the marketing department; on the other hand the marketing department should work closely with research and development segment for more informed decisions. References Day, G. (2011). Closing the Marketing Capabilities Gap. Journal of Marketing, 75(4), 183-195. Harley Official Website.(2011). Harley-Davidson Motor Company. Retrieved from https://www.harley-davidson.com/us/en/index.html Hsuen-Ho, H., Jia-Wei, T. (2010). A Model of Marketing Strategic Alliances To Develop Long-Term Relationships for Retailing. International Journal of Business Information, 5(2), 151-172. Lyus, D., Rogers, B., Simms, C. (2011). The role of sales and marketing integration in improving strategic responsiveness to market change. Journal of Database Marketing Customer Strategy Management, 18(1), 39-49. Mullins, J. W., Walker, Jr., O. C. (2010). Marketing management: A strategic decision making approach. Boston: McGraw-Hill Irwin. Vorhies, D. W., Morgan, R. E., Autry, C. W. (2009). Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and cash flow performance. Strategic Management Journal, 30(12), 1310-1334. Harley Overview The onset of the 21st century saw the inception of the Harley-Davidson Motorcycle Company. The motorcycle manufacturing firm started off its operations in Wisconsin, United States of America (Harley-Davidson, 2006). Although it had a small beginning, Harley-Davidson has grown to be a renowned global market leader in the manufacture and sell of heavy duty monocycles.Advertising We will write a custom assessment sample on Harley-Davidson specifically for you for only $16.05 $11/page Learn More The company successfully went through the hard economic times of the 1920s, which was largely contributed by its unwavering strong background in leadership, marketing and customer satisfaction (Armstrong Kotler, 2011). One of the major challenges faced by Harley-Davidson in its history of successful operation in United States is when the government failed to instituted as well as monitor market forces of demand and as well as quality checks which led to the inf lux of cheap imports into the U.S market. However, this just marked the beginning of a long journey for Harley-Davidson bearing in mind that the motorcycle manufacturer continued with the uninterrupted production of motorcycles with engine capacities above 750cc (Harley-Davidson, 2006). Customer satisfaction was and has been key to this overwhelming market presence. On the other hand, Harley-Davidson is still struggling to penetrate the lightweight motorcycle market. The competition is tough in this line of production and unless the company transforms its value proposition, it may completely miss out on the yet to be tapped profitable lightweight motorcycle market. In this paper, the case study of Harley Davidson has been discussed in terms of the marketing capabilities of the company (Harley-Davidson, 2006). In addition, some marketing strategies that can be adopted by the motorcycle firm have been proposed using relevant marketing theories. Harley-Davidson case study summary and m arketing theories One of the outstanding features of Harley-Davidson is the creation of brand loyalty among its chronic customers. As part of its fundamental marketing strategy, the company has developed a culture of consistent liking and consumption of its heavyweight motorcycles among the long term customers.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More As a result, it has managed to maintain its clients for a considerably long period of time in spite of the ever prevailing market competition (Armstrong Kotler, 2011). The most integral ideal being cherished towards customer loyalty is the ability of the company to critically consider the needs of its consumers. Harley-Davidson has a strong belief that customers from its most valuable asset add therefore should always be given the first priority. The department of marketing has put up efforts of reaching out not only the old customers but also the high end market that has not been tapped yet. In order to achieve the best customer loyalty, it has taken the marketing department significant amount of time to study and analyze the needs, tastes and preferences of consumers. The ease with which customers can purchase Harley-Davidson products has been enhanced. In any case, the company believes in serving its customers with a touch of their emotions. In other words, passion drives the marketability of the heavy duty motorcycles (Armstrong Kotler, 2011). The feelings of customers are studied, their perceptions and reactions towards the company products are also evaluated in a regular customer care initiative. Due to such an approach in marketing, the management at Harley-Davidson is quite convinced that they will also venture and conquer the light duty motorcycle market. Moreover, the marketing strategy is also viewed as the reason for the success behind the Harley Owners Group (HOG) that has grown to a 900,000 membership scheme. The sale of motorcycles per se is not the sole duty of Harley-Davidson; the motorcycle manufacturing firm has laid more emphasis on the needs of its customers to experience independence and a free purchasing environment. Customers should feel to be buying Harley-Davidson products without being coerced or technically convinced through advertisement without their own will. If this philosophy is anything to go by, then it implies that Harley-Davidson has a cultivated a buying culture of its motorcycles, a phenomenon absent in other brands (Armstrong Kotler, 2011). Therefore, customer experience, according to Harley-Davidson, goes beyond the manufacture and sale of motorcycles; it is a unique lifestyle of its own kind.Advertising We will write a custom assessment sample on Harley-Davidson specifically for you for only $16.05 $11/page Learn More Customers do not just buy for the sake of meeting their needs; they also do it as part and parcel of their lifestyle. Marketing a brand as a lifestyle product is an uphill task, so to speak. Harley-Davidson is not naà ¯ve of this fact. Consequently, the motorcycle manufacturing firm has set up rigorous marketing tools and devices to enable it maintain and reach out for the untapped markets. Through its marketing department, the company has imitated a high-powered team of individuals charged with the responsibility of marketing Harley-Davidson brand. For instance, there are quite a number of travel adventures that the firm has organized in the past. These adventures are meant to develop consumption and liking culture for its products. Both the existing and non-customers are usually invited to take part. The company also offers other after-sale services to customers. The marketing strategy adopted by Harley-Davidson is not void of relevant marketing theories in daily practice. Firstly, the brand name ‘Harley-Davidson’ has proved to be a very effective auto ma rketing tool for several decades now. Customers have been deriving satisfaction out of the motorcycles manufactured by the company. the fact they have built formidable trust around the brand of the company makes it possible for them to remain loyal in their purchases (Harley-Davidson, 2006). In addition, the consumption experience by Harley-Davidson’s customers is one of its own kind since the firm makes sure that the general and imperative needs of the customers are catered for. it is against this backdrop that the company’s brand name is not only popular, it is also a household name that both active and potential customers would like to identify with. On the same note, decision making by customers is yet another area that the marketing department has put more focus on. It is crucial to observe that the purchasing trend of customers is largely driven by the nature of decisions they make (Kotler, Roberto Lee, 2002). This can be explained from the utility theory of dec ision making.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The utility is paramount in marketing. Consumers will consider the best outcomes as the main driver to their decision making (Gilmore, 2003). The theory tends to perceive customers as rational beings who are not skewed on their choices but would rather settle at a particular brand since the anticipated results suit their needs well. Hence, optimum benefit is instrumental for customers. The utility theory is pragmatic on the usefulness of the product being purchased rather than the cost price of the product. Indeed, Harley-Davidson has taken this into consideration since the company has ensured that its heavy duty motorcycles are not just within the expected standards by customers but also of high quality. This has been laced with the marketing philosophy of selling with passion and touching the customers’ feelings right at the point of sale. However, consumers may lack rationality when making purchasing decisions in some cases (Baker Saren, 2010). Besides, the various intrin sic inputs that may influence decision making patterns when buying may not be easily recognized by customers. Such a limitation among customers when making decisions may not be fully addressed by utility theory. Hence, satisficing can be used to flesh up the limitations of utility theory. The satisficing model elaborates that the process of decision making does not continues once the anticipated outcomes are met. Drawing from the Harley-Davidson marketing experience, there is a higher probability that its chronic customers do no longer makes purchasing decisions when acquiring their purchases from the company since they are outside the brackets of utility theory. At this juncture, it is worthy to note that successful marketing should go beyond utility theory. Consumers can remain loyal to a particular brand irrespective of stiff competition from market rivals. Similarly, the use of a marketing theory referred to as consideration is a vital tool in marketing strategies. According to the theory of consideration, customers play an equally integral role as the identity of a business organisation (Gummesson, 2002). The theory further stresses that the decision making process by a firm should consider the relative value of consumers since they form a subset of a firm without which any decisions made may lack utility. The Harley-Davidson video case study emphasizes the momentous contribution and role of customers in the company. All the strategies are developed around the consumption experience of consumers. The marketing theory of involvement is yet another strong standing point for Harley-Davidson (Kleinaltenkamp Ehret, 2006). One way of attracting and sustaining the attention of customers is by involving them in most company activities that elicit fun and great feeling. The management at Harley-Davidson has made every attempt to involve its pool of customers as well as the prospective ones in lively activities like adventurous riding exercises. Sponsorship of suc h events by Harley-Davidson is a marketing decision I the right step. As mentioned earlier, the motorcycle manufacturing firm is not merely buying the advertising space for marketing its products; it is also in the process of creating a consumption culture of its heavyweight motorcycles alongside building a lifestyle from it. Case study questions How does Harley-Davidson build long term customer relationship? The management at Harley-Davidson value customer relationship as the foundation of business growth. In achieving this, two main building blocks are used. To begin with, the company employs customer satisfaction in its bid to create long term relationships. Unless customers are satisfied by the services and products on offer, it will be practically impossible to maintain their loyalty for long. Secondly, Harley-Davidson is very critical on the value of customers. It is common knowledge that customers who are treated with dignity, a sense of passion as well as liberty are highly likely to remain put with a particular brand (Sheth, 2006). The company values the choice, liberty and independence of its customers, attributes that go a long way in enhancing customer value. Moreover, Harley-Davidson has also made use of the Harley Owners Group (HOG) as a building block for long term customer relationship. For instance, the company has from time to time organized and sponsored outdoor events to boost the relationship between the company and customers and also among customers themselves. Besides, the numerous publications by the company have been viable outreach tool for harnessing customer relationship. What is Harley-Davidson’s value proposition? One of the value propositions for the company is that the price tag is rather on the higher end. The sale of heavy duty motorcycles costs more than the sale of lighter ones with engines capacities below 750cc. although the high price tag may be viewed as slightly disadvantageous to the company; it is indeed the bu siness strategy for Harley-Davidson. Specializing in this line of production attracts the high end of the market. This may be more profitable than dealing with lighter machineries. Besides, the motorcycles cannot be used during bad weather in addition to the fact that there are usually non-monetary costs associated with safe keeping of the motorcycles is yet another value proposition for the company. Nonetheless, the best value proposition should be the benefits received by the consumers of Harley-Davidson brand. Joanne Bischmann in the video case study attempts to emphasize the value received by customers (Harley-Davidson, 2006). As note in the video, customers stand to benefit from freedom, free will, and self-expression as well as the fun and full enjoyment brought about by the company products. Customers are not just buying the motorcycles, they are also interested with the value proposition derived from the purchases. Relate the concept of customer equity to Harley-Davidson. Ho w does Harley-Davidson’s strategy focus on the right relationships with the right customers? Customer equity is well covered under the derived profits as well as loyalty. There are other numerous possibilities through which Harley-Davidson could derive its profits. However, the company is not merely focusing on the other varied channels; it has laid more emphasis on building long term customer relationship through authenticated friendship. Its chronic customers who should also be profitable is the core concern for the company in as far as customer equity is concerned. This profitability is derived from the high-margin products from Harley-Davidson. As part of focusing on the right customer relationships, the company has largely focused on the delivery of three main marketing variables namely customer value, brand stability as well as retention equities. In order to maintain the brand quality and focusing towards the right customer relationship, Harley-Davidson continually ins pects and modifies its products to meet the expectations and needs of customers. Recommendations In spite of the global presence of Harley-Davidson in the manufacture and sale of heavy duty motorcycles, the company can still make a few more strides in capturing both the high and low-end markets. Firstly, Harley-Davidson should devise other competitive marketing strategies that will successfully land them in the light commercial motorcycles bearing in mind that the previous attempts by the company to venture into this market failed. This can be achieved by changing the consumption culture of its long term customers (Baker, Graham Harker, 1998). They should be educated on the relative benefits of embracing lighter motorcycles. The value proposition for the company should go beyond passion for its customers. It is vital for Harley-Davidson to focus on new markets through rigorous marketing campaigns like the internet, billboards and other mass media channels (Wierenga, 2008). Relying on old customers per se may not be sustainable for a long period of time. Finally, Harley-Davidson should also diversify its production portfolio as one way of minimizing market risks. The company can attain this by incorporating the manufacturing of both the heavy and light commercial motorcycles in its plant. References Armstrong, G. Kotler, P. ( 2011). Marketing: an introduction, (10th ed.), New York: Pearson Prentice Hall. Baker, J.M., Graham, P. Harker, D. (1998). Marketing: managerial foundations, South Yarra: Macmillan Publishers. Baker, J.M. Saren, M. (2010). Marketing Theory: A Student Text, London: Sage Publications. Gilmore, A. (2003). Services marketing and management, London: Sage Publications. Gummesson, E. (2002). Total relationship marketing, Oxford: Elsevier Science. Harley-Davidson (2006). Video Case. Web. Kleinaltenkamp, M. Ehret, M. (2006).Relationship theory and business markets Journal of business and industrial Marketing, 21(2): 63-64. Kotler, P., Roberto, N. Lee, N. (2002). Social marketing: improving the quality of life, London: Sage Publications. Sheth, N.J. (2006). Does marketing need reform?: fresh perspectives on the future, New York: M.E. Sharpe Inc. Wierenga, B. (2008). Handbook of marketing decision models, Rotterdam: Springer Science.