Global Branding Strategies

Clara Dorval
Satheesh Kumar Chinnappan
Kannan Jaganathan
Pierre-Henri Reix
May 10, 2011 Jessica Sarrade
 History of HD

• 1903 – William S. Harley & William, Arthur, Walter

Davidson
• 1909 – First V-twin powered bikes, it became most enduring
icons of Harley Davidson history.
• 1917 – 1/3 rd of the bikes were sold to the U.S military, at last
20,000 HD bikes were used in World War I (1918).
• 1922 – HD dealerships spread across 74 countries.
• 1933 – An Art deco “Eagle” is printed on tanks this starts the
graphic design on HD.
 History of HD

• 1953 –Attractive logo was created for 50th anniversary with

caption “50 years-American made”.
• 1983-1986 – Entered into American & New York stock
exchanges.
• 1997 – Two big plants constructed in Milwaukee & Kansas
cities.
• 2002 – “Open Road Tour” debuted in Atlanta to celebrate
upcoming 100th Anniversary.
 History of HD
• 2002 – demand for heavy weight motor cycle in U.S grew up
by 17% compared to IGR of 10%.
• 2003 – more than 950,000 bikes were sold in U.S & 28 million
world wide expect to grow 5% every year.
• HD recorded its 19th consecutive year of record earnings in
2004.
• Harley is the only major American Manufacturer of heavy
weight motor cycles.
• Have more than 15,000 employees.
 Main features
• Harley Davidson Softail Family
eg:narrow seats, tombstone tail lights, full length floor
boards
• Harley Davidson Sportster Family
eg: low-rise handlebars, bullet style headlight.
• Harley Davidson Touring (Dressers) Family
large windshield & have a full front fairing. leather
saddlebags, optional sidecar, & option to customize.
• Engines
Big V-twins, Small V-twins, and the Revolution engine
 Main figures
• 2009 - HD’s share of the U.S. heavyweight (651+cc) market
was 53% &12% in Europe. (app.)
• Capital Expenditures were $116.7 million in 2009 & $1.0
billion in the last 5 years.
• $100 invested in Harley-Davidson at the end of 1986 would be
worth approximately $9,000 at the end of 2009
• The Company incurred R&D expenses of $143.1 million,
$163.5 million and $185.5 million during 2009, 2008 & 2007
respectively.
HD’s motorcycle Shipments

HARLEY-DAVIDSON, INC.
NYSE: HOG Fact Sheet
World wide Revenue

HARLEY-DAVIDSON, INC.
NYSE: HOG Fact Sheet
2009 Worldwide Retail Sales of
Harley-Davidson Motorcycle

HARLEY-DAVIDSON, INC.
NYSE: HOG Fact Sheet
 VALUES OF HD

• Values are the heart of HD business,they guide our action

and serve as the framework for the decisions and
contribution of our employees make at every level of the
company.
• Tell the truth
• Be fair
• Keep your promises
• Respect the individual
• Encourage Intellectual curiosity

Source HD website
 Product extensions

 Motor Cycles

 Bike accessories

 Buell motor cycles: wholly owned subsidiary of

Harley by 2003 (closed now)
 Brand extensions
 Merchandise
• Helmet
• Clothes (Jackets…)
• Mugs
• Collectibles….

 Beer

 Bars
 SWOT - ANALYSIS
Strengths
• HD operates in two segments- HD Motor Cycles&
related products and HD Financial services(hdfs).
• HD is the only American heavyweight motorcycle
manufacturer.
• Strong brand name & relationship with customers
• HD having good marketing division and its divided
as a dealer promotion, customer events, magazine and
direct mail advertising and public relations.
• Customization of the bike is HD’s major revenue
maker.
 Weakness

• High price
• Top board of directors were all men
• Lack of employee diversity
• HD has problem in gaining more market share in some
European countries.
• Required production is not met.
 OPPORTUNITIES

• Women & younger riders are showing more interest in

bikes
• The international heavy weight market is growing and is
now larger than the U. S. heavyweight market
• Market share increasing in Europe and Asia for the last
two years
• Increasing demand in US markets for bikes
Customers value quality parts
 THREATS

• Harleys average buying age is 42 years old & it still

increasing.
• The European Union’s motorcycles noise standards are
more stringent than those of Environmental Protection
Agencies in the U.S and increased environmental stand.
• Some competitors of Harley Davidson have larger
financial and marketing resources and they are more
diversified.
• Environmental protection laws.
• Shifts in buyers needs & taste.
 DIAGNOSTIC

 The market: good

 The brand: good

But we can increase the brand and the market

always improve
 Positioning

Expensive

Good Quality
engineering

Innovative
 Strategical view

 Real experience through messages « living between

two ballads » and the new offer of rent.

 Guaranteeing quality.

 Style and custom especially with HOG ( harley

owners group).
 Existing Brand Alliances

 In USA: Shell and Harley Davidson (joint communication)

 In offers about mapping oil-pit stations through the HD ride

planner
 Shell also will be the exclusive fuels sponsor of the
Harley-Davidson 105th Anniversary Celebration
in August 2008 (joint communication)

+
 Existing Brand Alliances

 In France: Lenôtre and Harley Davidson via the agency Fidback.

(joint communication)

 Lenôtre, creator of High Fondness and the American legendary

brand Harley Davidson joined with the agency of Fidback
communication to present Wafer of Kings
Harley Davidson, limited edition 2011:
cake eaten in France on Twelfth Night.
 These two famous brands have strong common values: the
share, creativity, quality and the requirement.

 The seven silver bean and engraved emblematic symbols of

Harley Davidson were hidden in the cakes but also proposed
in box collector (symbolic co-branding)
 Existing Brand Alliances
 Ford and Harley Davidson: Trucks (ingredient co-branding)

 Ford and Harley-Davidson delivers a new standard of "custom

cool," combining the smooth handling and legendary
durability of America's best-selling truck with the authentic
styling of Harley-Davidson.
 Existing Brand Alliances
 Bell & Ross and Harley Davidson (ingredient co-branding)

 Luxury watch maker Bell & Ross have teamed up with british
bike customizers Shaw Harley Davidson (the most
distributing) to create this custom chopper: the Bell & Ross
inspired Nascafe Racer.
 Existing Brand Alliances
 Gibson and Harley Davidson (joint communication)

 Harley-Davidson and Gibson Guitar hosted “Night of

Custom”, celebrating the art of ‘customization.’

 Bringing together music and motorcycles,

the event saw exclusive music performances
including a phenomenal set from British rock band
Feeder who headlined in front of an intimate
audience of 100 people
• Similar to the Harley-Davidson motorcycle brand, no other
musical instrument brand encapsulates the Rock and Roll
culture like Gibson.
 Brand Extensions Failures

 The Harley Davidson Cake Decorating Kit

• It didn’t do well with its cake-decorating. Customers don’t like

this type of product. They didn’t subscribe to this idea.
 Brand Extensions Failures

 Perfume/ Shampoo / Shower gel

 For lovers of the motorcycle, this was an extension too far.

 Harley Davidson had fallen into the trap of thinking that more
products equals more sales. And it usually does, at least in the
short term.
 But after, the image of Harley Davidson is less good.
 Brand Extensions Failures
 Wine coolers

 As you would expect, the bikers were not impressed. It was a

bad idea, customers prefer beer Harley Davidson.
 Conclusion
 The brand need to focus on the quality and not on
cheap products: out of DNA.

 Customers want coherence.

So the DNA is very important: it’s the heart.

 The company need to do entension brand but to

concentrate on the quality, like alliances brand in the
european market successful association
 « Making real dreams caused by worldwide
roads by offering our customers exceptionnal
sensations. We nurture their passion for freedom
so that they can express their mind. »

Our Vision
 Our Mission

« Providing bikes and all the world around

through a faithful community »
« Organizing a complete offer including not only a bike
but also some clothes, accesories, routes and
integration to a community »

Our Action
 Brand structure
methodology
 Profile ( 3 axis)

 Gender: girls 10 boys 19

 Age : students 22 older people 7
 Nationality: foreigners 10 french 19 = 29

 The profile of questioned people is more

masculine, younger and quite well-balanced.
 Statiscal Analysis
répétition % YES % NO %

band 50 9 15 7 35 12
look 46 8 15 7 31 10
famous 30 6 8 4 22 7
bike 20 4 3 2 17 6
legend 22 4 4 2 18 6
leather 22 4 4 2 18 6
jacket
USA 25 5 19 9 9 3
landscape 22 4 16 8 6 2

masculine 27 5 13 6 14 5

culture 21 4 12 6 9 3
travel 32 6 12 6 20 7
Brand structure
USA

CULTURE
Band
LANDSCAPE Look

Travel
Bike
Core
Legend
Famous
Periphery Brand

MASCULINE
proposed strategies
Brand extensions
 Extension in international work company / Television
and video production company
( TV shows, TV programs)

 Potential in a customized channel or some biking

entertainment shows:

 The more possible opportunity is to sell motor shows.

 Otherwise, we can maybe take over an existing motor
channel ( AB moteur, motor TV).
Risk: very expensive.
 Create a independent label of music

 Potential to sign rock bands.

To help young and old bands.

 To have very strong values: creativity and quality.

 To endure
the Rock & Roll image.
 USA

CULTURE
Band
LANDSCAPE Look

Travel
Bike
Core
Legend
Famous
Periphery Brand

MASCULINE
Brand alliances
 Restaurant chains for a symbolic co-branding

Potential in quality and close-to-greater major

routes restaurant chains:

 We can collaborate with Buffalo Grill for a flavour

roadtrip (bull, corn, eggs..) in Europe.

+
 In USA and around the world, we can focus on
Morton’s steakhouse:
a special meal Harley Davidson for Morton’s

+
 USA

CULTURE
Band
LANDSCAPE Look

Travel
Bike
Core
Legend
Famous
Periphery Brand

MASCULINE
 Johnny Hallyday for a symbolic
co-branding (In France)

 limited edition : To create new features,

new customization

 Johnny reflects the image of the brand

because he has the physic and the music:
Rock & roll
 USA

CULTURE

Band
LANDSCAPE Look

Travel
Bike
Core
Legend
Famous
Periphery Brand

MASCULINE
 Lady Gaga for a symbolic co-branding

 Joint communication is done, in her clip « Judas »

 But create for this co-branding a new
motorcycle: more little, more sport
(like Buell motorcycles) for females and
young customers

 With Lady Gaga: because joint communication was

successful for the image of the brand and:
controversial image
rock’n’roll attitude
strong, popular image
american image
talented singer and creative person
 To concentrate on a new segment: female, more
young people.

 Motorcycle: less expensive (like Buell)

 Young image for Harley Davidson with this alliance.
 USA

CULTURE

Band
LANDSCAPE Look

Travel
Core
Bike
Legend
Famous
Periphery Brand

MASCULINE
 Joint communication with WWF

 The World Wide Fund for Nature (WWF): an

international non-governmental organization working
on issues regarding the conservation, research and
restoration of the environment.

+
 Communicate on the respect of the environment.

 The nature is important for customers.

 USA

CULTURE
Band
LANDSCAPE Look

Travel
Bike
Core
Legend
Famous
Periphery Brand

MASCULINE
 Recommandations

 Expand european market

 Made new alliances with some local bike companies
to produce low cost motor bikes eg: India
 Increase diversity programming (Tour, museum)
 Explore opportunities for physical plant expansion
into other geographical areas to increase labour pool
(US + international)
 Conclusion
• Harley- Davidson have to change American
culture and helped the future of motorized
vehicles.
• Must implement latest technology & facilities.
• Loyal customers are not sufficient for
company to survive.
• “it’s a journey but not a destination”
Thanks for paying attention