Académique Documents
Professionnel Documents
Culture Documents
India
Presented to : Dr Diwakar Kamath
By
Govind Krishnan K A
Mayank Kumar
Sahib Lamba
Ashar A Latheef
Hari Manwani
Aashna Manaktala
Kshitij Mundhada
Omkar Maraballi
Prateek Nanda
Introduction
The company sells heavyweight(over 750 cc) cruiser motorcycles in the luxury motorcycle
segment.
it was not simple for creating a segment in India(especially in this sovereign, socialist,
secular, democratic republic called India).
Be it Cola or Cornflakes, cars or mutual funds India has not been an easy market for global
majors to crack but Harley has defined that trend.
Vision:
Components :
1. Action-oriented business
2. International scope
4. Employee empowerment
5. Value-added activities
Mission:
We fulfill dreams through the experiences of motorcycling, by providing to motorcyclists and to the general
public an expanding line of motorcycles and branded products and services in selected market segments.
Components :
We are not a motorcycle company. We are a culture on two wheels. And we want to convert dreams of owning a
Harley into a reality for Indian motorcyclists.
When the Govt of USA & India decided to trade H-D for Alphonso mangoes in 2009 they were probably
presenting a huge challenge to the cult-driven company.
India was the largest motor-cycle market in the world with 10.5 Mn bikes sold in 2010but barring the few
imported superbikes the premium bike segment was practically non- existent in India
Harley started with a big-bang by launching 10 Models to begin with rather than being stingy or bringing just 1 or
2 models.
It invested in a completely knocked down facility(CKD) in 2011 that began with the assembly of its sportster line
followed by the Dyna line in 2012 & Softail in 2013
The more important programme by H-D was its dedicated dealership programme which started off with having
the right people at right place
Harley Davidson in India
Harley Owners Group (HOG)- initially, these rides in India were coordinated by the
company, but now, these events are coordinated by dealers themselves
The Indian customer belongs to a state of mind rather than a particular demographic profile.
Targeting younger riders with offerings like the Forty-Eight, Iron 883, and Cross Bones.
These bikes have the retro styling popular with younger riders today
The customization programme will help the customers make their bike unique (Whatever is
available to Harley owners abroad in terms of accessories and customized parts is also
available to the Indian buyer)
Harley Davidson in India
Boot Camps, Harley-Davidson(invites riders to come and taste life aboard its thick two-
wheeled slice of Americana)
Breakthrough initiatives - Boot Camps, Founders Ride, Harley Rock Riders and
Freedom Film Festival
(i)Imports its bikes into India as Completely Built Units (CBUs), paying 60 % import duties
for the bikes and 30 % local taxes which double the MRP
(ii) So for eg. Ultra Classic Electra Glide(CVO) which costs USD 35,999 (INR 16,02,000) in
US, costs INR 34,95,000 in India
Core Competencies
Custom
Brand
er Image
Loyalty
Dealer Financial
Developme Assistan
nt Program
ce
PESTEL Analysis
Political Economic
Influenced U.S. president Reagan in Due to 2008 economic crisis, U.S. sales
1983 to increase tariff on imported by volume went down by 35% in 2 years
motorcycles to 45% Planned to enter India because of
The Indian Government imposed an steadily growing GDP and middle class
import duty of 60% on CBD units and In order to cut the prices and also target
30% on CKD units upper middle class, it currently
Harley Davidson was allowed in India manufactures in Haryana. The lowest
in exchange of export of mangoes to priced model is Street 750 which is
U.S. available at 5 lakhs rupees
Trump indirectly asks India to reduce The implementation of GST has
import duty on motorcycles imported increased the tax rate from 30 % to 31%
Technological
from U.S Social
PESTLE on bikes above 350 cc
Opportunities Threats
Emerging markets Volatile markets
Large motorcycle markets Japanese manufacturers
Market reforms in India High duties and taxes
Indian markets flooded with Emission standards in India
lightweight bikes Negative returns in initial
Untouched segments years
Ansoffs growth strategy matrix
Market: US, Canada and Europe New Product: Bikes for youth and
Product: Five basic model families women/girls
between the price range $8000 to Harley owners were pre-dominantly male
$37000 Sportster was considered as a girls bike
M Limited edition bikes
and as a compromise for a cheaper Harley
Price range below $8000 to make it
A
National rallies and visiting dealerships
General merchandising- T-shirts
affordable for the youth
K
E Market development Diversification
Market: India Product: Smaller and lighter bike
New
Existing New
PRODUCTS
Strategic Groups
Experience Focused Performance Focused
Harley enjoys exceptional Harley struggles in countries
brand recognition like India & China as most
Apart from technological people here use bikes to
expertise, the main advantage commute for work and loud
is driving a Harley- the loud, heavyweight bikes are not
rumbling noise and showing ideal for daily commuters
off the wings on the brand Honda and Yamaha lead
Harley and Ducati fall under technological innovation and
this group hence fall in performance
focused categories
These companies perform
better in India as they better
cater to the demographics
demand
VRIO ANALYSIS
4.
Lowqualityroadswhichrequirehighergroundclearanceforthemotorcycles 0.08 1 0.08