HARLEY DAVIDSON Live to ride, ride to live.

CONTENTS 1. INTRODUCTION 2. BRAND PERSONALITY 3. PRODUCT ATTRIBUTES 4.UNDERSTANDING INDIA N PREMIUMBIKES MARKET 5.MARKETING OBJECTIVES 6.MARKETING SEGMENTATION AND TARGET ING 7.POSITIONING 8.MARKETING STRATEGY 9.MARKETING MIX PRODUCT AND PRICE PLACE ROMOTIONS 10.APPENDIX

Introduction: Harley-Davidson often abbreviated H-D or Harley is an American motorcycle manufa cturer. Founded in Milwaukee, Wisconsin, during the first decade of the 20th cen tury, it was one of two major American motorcycle manufacturers to survive the G reat Depression. The company sells heavyweight (over 750 cc) motorcycles designe d for cruising on the highway. Harley-Davidson motorcycles (popularly known as " Harleys") have a distinctive design and exhaust note. They are especially noted for the tradition of heavy customization that gave rise to the chopper-style of motorcycle

Brand Personality: 1. Masculine 2. Free spirited 3. Rugged 4. Macho 5. Strong 6. Adventurous

PRODUCT ATTRIBUTES: Harley Davidson attributes can be grouped according to kind of Purpose it is use d for-: Touring Bikes- Big Twin engines and large-diameter telescopic forks Sports bikes -For the Sportster Evolution engines used since the mid 1980s, there have been two engine sizes XL1100, XL1200 Dyna- Models utilize the big-twin engine (F), small-diameter telescopic forks Re volution- Models utilize the Revolution engine (VR), and the street versions are designated Street Custom (SC) Softail- Models utilize the big-twin engine (F) and the Softail chassis (ST)

UNDERSTANDING INDIAN PREMIUM BIKES MARKET The Market Stands at 700 units/year for premium bikes (800cc & above)* Premium B ikes consists the likes of Suzukis Hayabusa , Kawasakis Ninja & Ducatis Hypermotard . 105 Units of Hayabusas have been sold since Suzukis entry in this segment in No v09 127 Units of Ninja have been sold in a span of 14 months. The increase in per -capita income to more than 1000$ by 2014 is expected to fuel the growth of prem ium bikes market. PREMIUM BIKES SUPERBIKES Kawasaki Suzuki Ducati CRUISERS Harley Davidson Royal Enfield^ *Source-SIAM, ^-350cc

MARKETING OBJECTIVES: To gain Heart-Share in the Indian market and be revered as a brand. To gain Mind -Share in the Indian market as being the premier bikes for leisure riding To gain Market share by effectively creating and meeting needs for a Harley Experience in the Indian market. To create a loyal bikers community in India (HOG-Harley Owner s Group)

Market Segmentation & Targeting Geographic Demographic Income :High Income Groups Psychographic Behavioral Lifestyles : Touring Enthusiasts Outdoor-Oriented Age : 27-45 years Cities: Tier -1 Tier-2 Gender : Male Benifit sought Occasions: Leisure riding,Planning weekend rides User status : At titude towards product : Readiness to buy , Prestige Associated with the brand. Personality Types : Innovators Achievers Professional: Executives Entrepreneurs Self-employed businessmen Neo rich youth.

SPORTSTER Age-27-35 yrs Income-Rs 20-22lakhs Behaviour- Speed enthusiast, style oriented f lamboyant personalities Age - 27-35 yrs Income-Rs 20-22Lakhs Behaviour- Sport lo vers,street bikers XL 883L SPORTSTER XL 1200N NIGHTSTER XL 883R ROADSTER Age - 27-35 yrs Income-Rs 24-26Lakhs Behaviour- Dreamers, Experience riders. XR 1200X Age- 27-35 yrs Income-Rs24-26Lakhs Behaviour-Dreamers, Experience riders

DYNA FXDB STREET BOB Age-35-40 yrs Income- 28-32Lakhs FXDC SUPER GLIDE CUSTOM Age-35-40yrs Income-28-32lakhs SOFTAIL FLSTF FAT BOY Age-35-40yrs Income-Rs36-40Lakhs Behaviour-Heritage bikers, experi ence riders FLSTC HERITAGE SOFTAIL CLASSIC Age-35-45yrs Income-Rs 36-40Lakhs Behaviour-Traditional bikers who loves vintage bikes.

TOURING Age- 40-45 yrs Income-Rs40-42Lakhs Behaviour-it is a knock out classic made for touring enthusiat and leisure riders. FLHR ROAD KING FLHX STREET GLIDE Age-40-45yrs Income- Rs 40-42Lakhs Behaviour- It provides a ultimate blend of cu stom and comfort and is meant for those whp is into long haul tour drives. FLHR ROAD KING Age-40-45 Income-Rs 70 lakhs and more

POSITIONING: Among Premium Bikes, Harley Davidson is a brand of highperforming cruisers that has been giving a unique riding experience to bikers since 1903. MARKETING STRATEGY: All the marketing communication made will be centered on the positioning stateme nt of the product. In addition to it, The Communication will focus upon the bran d personality which will mirror the aspirations of the prospects and will encour age them to make the bikes & the brand a part of their lifestyle.

We will target: 1) HNI: People who Golf, Who Own Yachts, Indulge in leisure acti vities. (Yacht owners are in Kochi, Goa & Mumbai). Obtain data from State Mariti me Boards and Mail Brochures to generate leads or be physically present there an d engage the prospective customers. (Many of these yacht owners live in non-coas tal areas of Delhi and Punjab. Source : Telephonic Conversation with Capt. Mathe ws (CEO) Nautilus Yachts) Quality Lead Generation: Engage the prospective custom ers at places they are likely to visit: Auto-Expo, Yacht Clubs, Golf Clubs, Hard Rock Cafes etc. and then collect contact information there. Engagement Strategi es will vary from place to place. 2) Hospitality Segment: Hoteliers, Resort owners in tourist destinations are alw ays looking to add new luxury items into their fleet for their clients to indulg e into leisure activities. Premium Hoteliers in Manali , Shimla , Kolkata (North East) along with others located near the strategically located

dealerships of Harley Davidson . ( Pitch : Include a Ride to Himalayas on a Harl ey for guests in their holiday planners) 3) HOG Culture: To cultivate a loyal bi king community, one must drive lessons from social networking websites. Invites for friends, recommend Harley Experience to a friend, list building by asking fo r emails can help create a network of Harley Enthusiasts. (Readers Digest added many new customers by getting recommended themselves by the prospects knowns. Thi s may seem to be an obsolete strategy but can be made very effective if done wit h a touch of class. For Eg : The New Owners photograph is taken on a Harley at th e time of purchase (HOG hall of fame). The Photo is Pimped and then shared with the person via mail or a facebook application. Now this person is very much like ly to share this with his knowns living nearby and far and thus generating a buz z among his knowns , giving us the valuable Word of Mouth. The fb application wi ll actually ask the person to send invites to people for riding with him on his new Harley)

4) Clubs & Parties : Many Wealthy businessman and their 2nd generation kids part y at places like F-Bar (Hotel Ashoka Delhi) , Score (Chandigarh) etc. where duri ng 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. Tactic 1: Eye-Candies showing admiration for the Cruisers which in turn generate s interest in the cruisers among the target customers Tactic 2: Theme Based parti es, Story-Telling while live bands are performing. (Pictures on LCDs dynamically changing with the change in modulation of sound) We make sure to collect contact information of the interested people. (To ensure that these prospects are broug ht to the showroom from these clubs or cafes for further interaction and eventua l sales)

Marketing Mix 1) PRODUCT AND PRICE :

PLACE :

PROMOTIONS Integrated marketing channels 000

FOUNDERS RIDE BOOT CAMP LAUNCH AT DELHI AUTO EXPO MEDIA RIDE ROCK RIDERS RALLIES TO PROMOTE HOG 30th AUGUST 2009 14th NOV 2009 5TH JANUARY 2010 25th FEBRUARY 2010 9th SEPTEMBER 2010 TILL DATE EVERY TWO MONTHS IN 2011

Cost incurred on the various integrated marketing channels Print media The above rate card is for Business world which falls under the cate gory of business magazines Assuming that they post it on the front and back gate fold the total cost of visibility is 1. 2. 3. 4. Business world- Rs 187500/Busi ness today- Rs 250000/Overdrive Rs 100000/Total costRs 537500/Once advertisements have been given on the front and last page for initial visib ility slots on the inside the magazines can be booked at cheaper rates. Televisi on commercial A 30 second advertisement on a premier nationwide channel would co st approx Rs. 17500000. Total cost for 3 channels like CNBC, ZOOM, FTv would be Rs 52500000/Billboards A 40x40ft billboard at Mahim, Mumbai, would cost about Rs 14-16 lakh a month. Considering that 3-4 such billboards will be put up to cove r posh areas of all the places where the showroom has been opened up ( Chandigar h, Hydrabad, New Delhi, Mumbai, Bangalore) the total cost of using billboards wo uld be approx 15*3*5= Rs 22500000/Rallies & HOG Parties Cost of promoting a rall y is approximately around Rs. 250,000/- and 5 such rallies in the major cities w ould cost around Rs 12, 50,000/-. Total budget for advertising therefore is Rs.7 ,12,50,000 /All these costs are shown as one time but over the time the spending on the prin t media will remain consistent but the cost incurred on rallies would be reduced . Rallies would be only once a year at one location but the cost incurred on pri nt and Television would be year round.

Pie chart depicting various costs : print media television commercial billboards rallies & hog parties

APPENDIX : The Income Groups were calculated on the assumption that the person buying the b ike pays 20% on the bike upfront and then pays installments over a 5 year period . http://www.harley-davidson.in/harley-davidson-india-emi-calculator.html The Market Potential and Growth Rate was taken from ET Articles and SIAM (Societ y for Automobile Manufacturers) Cost Structures were requested to various magazines.