The History Of Harley Davidson Marketing Essay

The History Of Harley Davidson Marketing Essay Harley-Davidson  (formerly HD), often shortened  H-D  or  Harley, is an American  motorcycle maker. Founded in  Milwaukee, Wisconsin, during the first decade of the 20th century, it was one of two major American motorcycle manufacturers to survive the  Great Depression.   The company sells heavyweight (over 750cc) motorcycles designed for cruise on the  highway. Harley-Davidson is a reliable brand name  which keeps active events,functions a museum. Harley-Davidson logo accounts for almost 5% of the brand companys net revenue. In 1901,Mr.  William S. Harley, was the founder of this plans for a small engine with a design of 7.07  cubic inches (116 cc) and four-inch (102  mm) flywheels.The prototype of the new loop-frame Harley-Davidson was assembled in a 10  ÃƒÆ'-  15  ft (3.0  ÃƒÆ'-  4.6  m) shed in the Davidson family backyard. Most of the major parts, however, were made elsewhere, including some probably made-up at the West Milwaukee rail shops where oldest brother William A. Davidson was then  tool room  foreman. In 1906, Harley and the Davidson brothers built their first factory in Chestnut Street. still this location name Harley-Davidsons corporate headquarters  today. Harley davidson first manufacturing plant was a 40  ÃƒÆ'-  60  ft (12  ÃƒÆ'-  18  m) single-story wooden construction. this plant was produced aprox 50 motorcycles that year. In 1907, William S. Harley graduated from the  University of Wisconsin-Madison  with a degree of  mechanical engineering and the same year additional factory expansion came with a second floor and later with facings and editing of Milwaukee pale yellow brick. With the new services and stuff production increased to 150 motorcycles in 1907.They also began selling their motorcycles to police departments to others departments around this time, a market that always been important to them ever since. Harley davidson which was produced in 1905 n 1906 they all were in single cylinder with 26.84 cubic inches ( 440cc ) engines.in feb 1907 they manufactured V-Twin engine with 45 degrees and was displayed at the chicago Automobile showroom. between 1907 n 1910 a very few v twin model were built as well as shown and advertised.Harley davidson first V-Twins model displaced in 1907 and 1910 was 53.68  cubic inches (880 cc) and produced about 7  horsepower (5.2 kW). This gave about double the power of the first singles. Top speed was about 60  mph (100 km/h). and the company Production jumped from 450 motorcycles in 1908 to 1,149 machines in 1909. In 1911,some 150 motorcycles company had already been built in united stated so harley davidson improved V-Twin model was introduced for the market. The new V Twin engine had advance operated intake valves, as opposed to the automatic intake valves used on previous V-Twins that opened by engine vacuum. having displacement of 49.48  cubic inches (811 cc), the 1911 V-Twin was smaller than earlier twins, but gave better performance and good result. After 1913 the majority of bikes produced by Harley-Davidson would be V-Twin models. By 1913, Harley davidson improved there market so they demolished and constructed the yellow brick on the site a new 5-story structure of resistant concrete and red brick had been built for the new site.In spite of the competition with other brands, Harley-Davidson was the one who already pulling ahead of  Indians  and would dominate motorcycle racing after 1914. the manufactured that year swelled to 16,284 machines. Golden time period for the Harley-Davidson was in the 1920 become the largest motorcycle manufacturer in the world. and the dealer of the HD motorcycles were sold by dealers in 67 countries. Production was about nearly 28,189 machines. In 1921,Otto Walker who riddent harley davidson, he was the first motorcycle ridder ever to win a race at an average speed of over 100  mph (160 km/h). During the 1920s, several changing put in place for the race, such as a new 74 cubic inch (1200 cc) V-Twin, introduced in 1922, and as well the Teardrop gas tank in 1925. A front brake was added in 1928. In the late summer of 1929, Harley-Davidson introduced V twin flathead with 45  cubic inches (737 cc) to compete with the Indian 101 Scout  and the  Excelsior Super X.  This was belong to D model, produced from 1929 to 1931.  Riders of Indian motorcycles irreverently referred to this model as the three canister Harley because the generator was upright and parallel to the front cylinder.  The 2.745  in (69.7 mm) bore and 3.8125  in (96.8 mm) stroke would continue in most versions of the 750 engine; exceptions include the XA and the XR750. (Ref. by Harley-Davidson eNotes.com Reference ). The Great Depression After the introduction of their 45 cubic inch model  Great Depression  began a few months. Harley-Davidsons sales plummeted from 21,000 in 1929 to 3,703 in 1933. Despite those dismal numbers, Harley-Davidson proudly unveiled its lineup for 1934, which included a Art Deco Styling with flatthead. In order to survive the remainder of the Depression, the brand company manufactured industrial powerplants based on their motorcycle engines for the best output. They also designed and built a three-wheeled delivery vehicle called the  Servi-Car, which was based in production until 1973. Claims of stock Price Manipulation In late 1990s the golden time periods of the harley davidson was on the peak demand and early first decade of the 21st century, Harley-Davidson took a look on a program of expanding their dealerships throughout the 67 countries. At the mean time, its present dealers had waiting for the lists that extended up to a year for some of the most popular models. Harley-Davidson, like the auto manufacturers or the producers,they records the sale when it is deliverd to the dealer not when a consumer buys their product. Therefore, it is quite possible for the manufacturer to inflate sales numbers by requiring dealers to accept more inventory than desired in a practice called channel filling.This news led to a dramatic decline in the stock price when demad softened following the unique 2003 model year. Financial crisis In 2009 According to  Interbrand, the value of the Harley-Davidson fell by 43% to $4.34 billion. the company profits droped in 2009 in two quarters and which fall in value is believed to be connected to the 66% .  On April 29, 2010, Harley-Davidson explore alternate u.s site to achieve that they must cut the amount of $54million in modern cost from the production. The statement came in the wake of a massive company-wide reformation, which began in early 2009 and involved the closing of two factories, one distribution center, and the planned removal of nearly 25% of its total workforce (around 3,500 employees). (Ref by ridley choppers vs harley davidson Google Search) Softail Harleys strong value of tradition was based on these big-twin motorcycles. With the rear-wheel suspension hidden under the transmission, they are visually similar to the hardtail  choppers  popular in the 1960s and 1970s, as well as from their own earlier history. Harley davidson kept the tradition and made few amendments like, they offerd Softail models with Springer front ends and Heritage styling that integrate design cues from throughout their history. Dyna Dyna motorcycles feature age -old styling and big-twin engines. They can be distinguished from the Softail by the traditional coil-over delay that bonds the swingarm to the frame and from the Sportster by their larger engines. On these models, the program also houses the engines oil tank. In 2006, Harley-Davidson introduced their five best Dyna models: Super Glide, Super Glide Custom, Street Bob, Low Rider, and Wide Glide. In 2008, the Dyna Fat Bob was introduced the unique Dyna line-up featuring violent styling, featuring a new 2-1-2 tire out, having twin headlamps, a 180  mm rear tire and a 130  mm front exhaust. The Dyna family uses the 88 cubic inch twin cam from 99-06. From 2007-and on the dislodgment was increased to 96 cubic inches. This was the result of the factory increasing the hit to 4 3/8 inches. Sportster In 1957, the Sportster is the longest-running model family in the Harley-Davidson brand. They were prepared as racing motorcycles, and were popular on dirt and flat-track race courses through the 1960s and 1970s. Smaller and lighter than the older Harley models, contemporary Sportsters make use of 883  cc or 1,200  cc Evolution engines and though often modified, remain similar in appearance to their racing ancestors. In 2003 model year, the engine on the Sportster was rigidly attached to the frame. The 2004 Sportster taken a new frame featuring a rubber-mounted engine. Due to these ammendments these bike become heavier and reduced the available lean angle, it decreased the amount of vibration transmitted to the frame and the rider.  Just because of the rubber mounted engine it provides a significantly smoother ride for rider and passenger, for the longer trips. In the year 2007 , Harley-Davidson celebrated its 50th anniversary of the Sportster and introduced a limited edition called XL50, of which only 2000 were distributed for sale purpose among the dealers. Each motorcycle was individually camed in one of two colors, Mirage Pearl Orange or Vivid Black. In 2007, a new category having electronic fuel injection was introduced to the Sportster , and the Nightster model was introduced in mid-year. In 2009, Harley-Davidson added the Iron 883 to the Sportster line, the newest in the Dark Custom series. Environmental record According to the  Environmental Protection Agency  conducted emissions-certification and representative emissions test in Ann Arbor, Michigan, in 2005. Harley-Davidson produced an environmental warranty. The warranty ensures each owner that the vehicle is structured and built free of any defects in materials and workmanship that would cause the vehicle to not meet EPA standards.  In 2005, the EPA and the  Pennsylvania Department of Environmental Protection(PADEP) confirmed Harley-Davidson to be the first corporation to willingly enroll in the  One Clean-Up Program. This program is structured for the clean-up of the affected soil and groundwater at the former York Naval Ordnance Plant. The program is backed by the state and local government along with participating organizations and corporations. Harley-Davidson culture Harley-Davidson motorcycles have long been associated with the sub-cultures of the: Biker Motorcycle club Outlaw motorcycle clubs, bikers, one per centers Origin of Hog nickname In 1920, a team of farm boys, including  Ray Weishaar, who became known as the hog boys, continuously won races. The group had a live  hog  as their mascot. The HOG BOYS made the Harley towin the races and make a victory lap.  In 1983, the Motor Company introduced a club for owners of its product taking advantage of the long-standing nickname by turning hog into the acronym HOG., for Harley Owners Group. Harley-Davidson attempted to  trademark  hog, but lost a case against an independent Harley-Davidson organisation, The Hog Farm of West Seneca, NY,  in 1999 when the  appellate panel  ruled that hog had become a  generic term  for large motorcycles and was therefore unprotect able as a trademark. On August 15, 2006, Harley-Davidson Inc. had its NYSE ticker symbol changed from HDI to HOG. COMPETITORS OF HARLEY DAVIDSON American Iron Horse Choppers A new firm has been introduced in the market i.e. American Iron Horse Choppers. They have a custom bike shop that dealt with various brands of choppers. They are a dealer for APC, Ironworks,  Iron Horse, and Swift. They also do repairs on other brands. There are a couple of Big Dog choppers along with many  Iron Horse bikes. Out of all the bikes we worked with I consider Iron Horse and Big Dog to be some of the best out there nevertheless they are not better than Harley Davidson. I loved dealing with Iron Horse as they really provide a lot of proper maintenance documentation. One thing that I think is the biggest problem with custom choppers is the wiring. Iron Horse went the extra mile and in my opinion did a great job making  proper wiring harnesses for their bikes. If a bike came out of the crate with any chrome or paint issues they were real quick to send new parts to correct the problem.   Big Dog also does a good job as far as warranty stuff and they have designed a new primary set-up that allows you to replace the starter without having to take the primary apart. IIRC both bikes run SS engines. They make some really good material and usually dont give much problems.   As far as aftermarket parts both bikes use standard Softail forward control mounts so just about any aftermarket Softail forward control setup will fit. The tripple trees are also standard Harley stuff so any handlebar setup will fit. They look great but to me they are not fun. I like bikes that you can lean in to a corner with. But the super wide tires on the choppers will just laugh at you if you try to take a corner faster then a car. Theyre great in a straight line but I hated making turns with them as it didnt take much before you were scraping the street with a part of the bike. So I cant help you much in that category. (Ref. by American IronHorse vs. Big Dog (Choppers only) Yahoo! Answers) West Coast Choppers West Coast Choppers motorcycles are known as  old school.  WCC bikes have been known as more exposed down when contrasted with decades-long established chopper builders like  Arlen Ness, that is, a bike having, not much there but engine, what the law requires, and something to hold on.  In spite of this information, a WCC product is the use of  9 mm  and  .44 Magnum  shell casings  as purely non-functional art, adorning the fuel or oil filler caps or top of the motorcycles handlebar risers. The presence of this 20th Century gun ammunition is intended to evoke Jesse G. James distant ancestor,  old west  outlaw  and  fighter Jesse James.  A tough brand tie between the chopper-riding biker and old west outlaws is a mainstay of biker culture, established by the biker worlds Norman Rockwell,  and its painter  David Mann. The bikers cross logo, a version of the  Iron Cross  or the  Maltese Cross, is also typical of a WCC bike, though that symbol is nea rly everywhere in Kustom Kulture  in any case. The old firm label of WCC bike labels fits loosely as well, moreover in recent years as WCC has moved away from the traditional  Harley-Davidson  chopper, seen by James as too ordinary, and enhanced the style to grooms its look. Specific ammendments include  Lambretta  scooters,  Honda 305 Scramblers, and  Schwinn Black Phantombicycles. Labels used by West Coast Choppers have been designed to make it professional look firm Atkins Parker Creative, who carefully observed the colours and motifs dear to old firm bikers, such as Vietnam war squadron patches. This is crafted to remanufactured for mass consumption the odd, imperfect shapes of old hand-painted bike art in order to gratify the customers keen sense of authenticity. (Ref by american iron horse choppers Google Search ) SWOT Analysis of Harley-Davidson This case is an analysis of the strengths, weaknesses, opportunities and threats for Harley-Davidson. Name recognition Harley-Davidson is possibly the most recognizable name in the motorcycle industry, anywhere in the world. This is possibly because of the typical, rough crash (sounds like potato-potato-potato) which made its bikes famous. Or perhaps its because the name Harley-Davidson is the core of the motorcycle industry, and the Harley-Davidson is the motorcycle that almost every rider aspires to own. Whatever the case, HDI enjoys brand name acknowledgment that other companies strive to obtain, yet fail to achieve. History Harley-Davidson has a long history, beginning in 1909, with the introduction of the V-Twin engine. Harley-Davidson motorcycles were in high demand during World War I, and HDI was one of only two motorcycle companies to survive the Great Depression of the 1930s. The military used Harleys during WWII, and law enforcement agencies around the country either have used or are currently using Harley-Davidson motorcycles as a tool for their Police Officers, Sheriffs Deputies and Highway Patrol Troopers enforce the laws of this great nation. Today most of the youngsters have a passion to buy and keep Harleys as an antique. These bikes have grown in popularity around the globe because of their reliability and durability. World Wrestling Entertainment Super Star Undertaker also used to enter the wrestling arena on a Harley Davidson bike. Harley-Davidson Performance Analysis There are many ways to test the output of the company, some more famous than others. According to Barney text ,the accounting method is the most useful and famous way of measuring a firms output (Barney, 2002). Some of the reasons for the popularity could include the fact that accounting measures of output are publicly their on many firms and they can make a great deal of material related to the firms operations. Other methods of the frims output analysis consist of firm survival and the multiple stakeholder approach.   The first method we will check is the accounting method. Through this accounting method we will take a look on specific ratios and their possible impact on the companys output. The specific ratios we will analyse contains the return on total assets, return on equity, gross profit margin, earnings per share, price earnings ratio, debt to assets, debt to equity, accounts receivable turnover, total asset turnover, fixed asset turnover, and average collection period. I will explain each ratio in complete detail, and why I have included it in this check, when I give the results of each specific ratio calculation. The return on total assets is an overall measure of prosperity which measures the total success of management in generating profits according to its ratios. This ratio shows the amount of net income generated by each dollar invested in these assets. The higher the firm returns on total assets, the better. The return on total assets of Harley davidson was 14.04% for 2001, 14.27% for 2000. These percentages are up and shows an upward trend, this shows strong output in this area for the previous two years.   Return on equity (ROE) showsthe profitability from the stockholders perspective. The ROE is a step to check the return earned on the common stockholders investment in the firm. Generally, the higher this return, the better off the stockholders are. Harley Davidsons return on Harley Davidson Case Analysis In 2007, Harley Davidson was the worlds most profitable motorcycle company.    They had just released great earnings and committed to achieve earnings per share growth of 11-17% for each of the next three years.    Their CEO of 37 years, James Ziemer, knew this would be an extremely difficult task seeing Harleys domestic market share recently top off at just under 50%.    The domestic market was where Harleys achieved the most growth over the past 20 years and with it leveling off, where was Harley going to get the 11-17% was the million dollar question. Harley Davidson has built a brand that is more than just the spread eagle on a load rumbling motorcycle, but for those who purchase a Harley they are purchasing a lifestyle, an experience, or piece of American culture if you will.    Due to this differentiating factor Harley has been able to charge a premium for its products and still be successful against its lower priced competition.    Harley built upon this lifestyle when it created the Harley Owners Group (HOG).    Harley would promote shows, rallies and rides through HOG in the US and even in other countries. This helped to build its coveted image into more of an exclusive club.          In the 1990s, Harley Davidson saw tremendous growth and looked for resolutions to its one problem of balancing production with its soaring demand.    In 1996, Harley announced Plan 2003.    Plan 2003 was a huge undertaking to increase its production capacity, introduce several new models and increase international expansion.    At the end of this planned expansionary period, Harleys sales had grown tenfold over just 23 years.    However in 2007, domestic demand was starting to slip, as several economical factors weighed on the American consumer, making it more difficult to buy luxury products. In 2007, Harley Davidson finds itself in a battle with heavyweight contenders with deep pockets and a lot of engineering resources.    Harley lacks the Harley Davidson Strategic Analysis William Harley and Arthur Davidson wanted to take a look of riding bicycles in 1901.    After joining of the Arthur brothers, Walter and William in their firm, they came up with the new idea of making a motor and a bicycle together.    Many engine ammendments were made before the satsfaction of the builders.    In 1903, they manufactured the first Harley-Davidson motorcycle and they produced three that year.    Harley built its first building in 1907 on Juneau Avenue in Milwaukee.    That same year, they manufactured 150 motorcycles.    As they were used for rebuilt purposes, they were also came in the useage of military .    They fullfill the military useage in border skirmishes and the government called for 20,000 bikes to be shipped overseas.    During the war, other companies also tried to challenge the market of Harley, but Harley remained the largest.    The depression had an unfavorable effect on Harley as it did with most firms, but they overcome on that iss ue and the crisis and celebrated its fiftieth year in 1953 as the sole survivor in the bikes industry.   Harley attract public in 1965, but was bought by thirteen heavy Harley-Davidson executives in 1981.    It was returned to public useage in 1986 by calling two million shares of common stock.    It was accepted by the New York Stock exchange in 1987 and has been there ever since. 2. A firm with the history of Harley-Davidson has few defects and threats, but a SWOT analysis can help them turn them into favorable conditions and strengths. Strengths- Customer satisfaction is the first strength of Harleys business.    Once a person bought a Harley, it seems as they trapped in the entire Harley business.    Once they bought a Harley, they usually never buy another brand of motorcycle. Once a person purchases a bike, the jacket, bandanas, etc. become a must.    Opportunity for Harley is that the economy is at a place where people will go out and buys a motorcycle for recreational purposes.    (Ref by Harley-Davidson eNotes.com Reference).