Harley DavidsonMarket Entry

StrategiesIn

India

Live to Ride , Ride to Live

PRESENTED BY :-DHARNA JOSHI

JAYA JENNIFER JOSHI

HARSH YADAV

SWAYAM DATTA

PANKAJ MUNDRA

SAURBH RATHORE

Overview Indian Motorcycle Industry

Introduction of H-D

H-D’s struggle

Marketing strategies to enter India

Current scenario in India

Future Aspect

Indian Motorcycle Industry

Shift from other two-wheelers like scooters and mopeds to Motorcycles due to rise in income levels

Other drivers- Advanced technology, ability to perform on rough roads, new brands, auto financing and service networks

Major driving force is- Economic Development of the economy

Market players have reduced prices, introduced freebies and improved brands- wide choices

Emerging MarketThe ‘First New Motorcycle Buyer’ is the largest market for motorcycles

Higher engine capacity is the criterion for future purchase

‘Auto Mission Plan 2006-16’ by Indian government to make India a global production hub

Reduction in the excise duties is also one of the agendas

Introductiono Harley-Davidson often abbreviated H-D or Harley is an American motorcycle manufacturer. Founded in Milwaukee, Wisconsin, during the first decade of the 20th century.

o The company sells heavyweight(over 750 cc) motorcycles designed for cruising on the highway.

oSymbol of ‘rugged individualism, freedom and rebellion’

Struggle in IndiaH-D attempted to enter India in September 2005 because of growing motorcycle market at a faster pace

Through Sourcing route

Plan was hampered due to high import duties and stringent emission norms in 2005

H-D tried to negotiate 1) Fresh issuance of licenses for opening branches of ICICI, SBI and BOB in US 2) to start the import of mangoes banned earlier

Marketing Strategy in India

Post liberalization, Foreign investors can enter in the form of liaison office, in the form of joint venture and a wholly owned subsidiary.

H-D opted for Wholly Owned Subsidiary option-to attract a major initial investment for infrastructural development

Strong inclination to Source Route

Objectives

To gain share in the Indian Market and be revered as a brand.

To gain market share by creating and meeting needs of a ‘Harley Experience’ in the Indian Market.

To create Loyal Harley Biker’s Community in India.

Identifying the Customers

Sportster Series- XL 883L

XL1200

N

XL 883R

XL 1200

X

Age 27-35 YearsIncome 20-22 lakhsBehaviour-Speed Enthusiast,Style Oreiented

Age 27-35 YearsIncome 20-22 lakhsBehaviour-Sport Lovers,Street Bikers

Age 27-35 YearsIncome 24-26 lakhsBehaviour-Dreamers,Experience Riders

Age 27-35 YearsIncome 24-26 lakhsBehaviour-Dreamers,Experience Riders

H-D’s Vision for India

According to Industry watchers, the Harley bikes would range between Rs 4 lakhs to Rs 14 lakhs in India, including the 60 per cent import duty. "As India's economy takes bigger strides, a younger population with expendable income are embracing luxury as never before.

Maybe 10 years out it will be more fertile, it’s a hope and prayer at this moment.

Market TargetsQuality Lead Generation:

Engage the prospective customers at places they are likely to visit: Auto-Expo, Yacht Clubs, Golf Clubs, Hard Rock Café’s and then collect contact information there.

Hospitality Segment:

Hoteliers, Resort owners in tourist destinations are always looking to add new luxury items into their fleet for their clients to indulge into leisure.

Contd.Loyal Biking Community:

One must drive lessons from social networking websites. Invites for friends, recommend Harley Experience to a friend.

Festive season:

Harley Davidson can organize parties that leave an impression on the attendees. Few of these attendees will certainly be induced into buying a Harley if they are made to engage with the Brand while attending these parties.

MEDIA ADVERTISING

ADOPTED BY

HARLEY DAVIDSON(INDIA)

MEDIA ADVERTISING

ADOPTED BY

HARLEY DAVIDSON(INDIA)

Future Aspect

It would prove favorable because of population

H-D has to position itself as a status symbol, as an expensive accessory

H-D is likely to face mechanical problems which would require careful maintenance

Major problem can be fuel efficiency as Indian customers are mileage conscious.

Records in Europe say that it has not done well on curve roads

Continued.Major constraint will be competition from Yamaha, Honda and Suzuki

Very high price also hinders sales- the cheapest H-D costs 0.4 million in India- cost of two Maruti 800 cars.

Competitor Royal Enfield bike is not that expensive. Its costliest bike is of rs. 93,200

Royal Enfield’s price may hinder H-D’s business as it did to BMW-Hero joint venture

Competitor Honda would do well because it has a wide network of dealers and an on-going business would also sell high end bikes in good numbers

Current Scenario in INDIA

Manufacturing Plant :- Rewari in Khushkera (Rajisthan)

Assembly plant

Import duties reduced to 30%

Headquarters :- Gurgaon Haryana

Founded :- 2009

9 outlets

Events

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