Founded in 1903 in Milwaukee, Wisconsin, Harley Davidson has grown into an international company, with over 1,400 independent dealers in more than 100 countries. The motorcycles are renowned as the ultimate biker status symbol. Harley doesn't just sell motorcycles, but also the experience and the idea of freedom and passion. Although the Asia-Pacific region was a key market between 2012 and 2017, the company saw a decline in motorcycle sales in 2018-2019, particularly in Canada.
The assignment focuses on Harley-Davidson's marketing strategies in the US and China. In China, Harley faces challenges such as government restrictions and a market dominated by domestic brands. Nevertheless, demand is rising in urban areas. In the US, the company struggles to engage a younger audience.
The marketing strategies in the US and China differ in some aspects, though both markets pursue a premium price approach. In the US, Harley positions itself as a unique product, whereas in China, the luxury aspect takes precedence.
Recommendations include adjustments in marketing to better address both the Chinese and American markets, such as developing smaller motorcycles for younger buyers.
Table of Contents
HARLEY DAVIDSON PROFILE
MARKETING ENVIRONMENT OF THE UNITED STATES AND CHINA
MARKETING STRATEGY
HARLEY-DAVIDSON’S MARKETING STRATEGY: UNITED STATES
HARLEY-DAVIDSON’S MARKETING STRATEGY: CHINA
COMPARATIVE ANALYSIS OF THE MARKETING STRATEGIES IN THE UNITED STATES AND CHINA
RECOMMENDATIONS
LESSONS LEARNT
Objectives and Core Topics
This report aims to compare and analyze the distinct marketing strategies employed by Harley-Davidson within the United States, its home market, and China, an emerging and challenging market for the company, while evaluating how environmental factors and target audiences shape these approaches.
- Brand identity and "the Harley experience" as a global strategic asset.
- Contrast between the established motorcycle culture in the US and the practical utility-focused market in China.
- Application of premium pricing strategies and distribution models in culturally diverse economic environments.
- Challenges related to market development, luxury positioning, and the demographic-specific reception of the brand.
Excerpt from the Book
Harley Davidson Profile
Set up in 1903 in the American city of Milwaukee, Wisconsin, Harley Davidson is now classified as an international company because of its over 1,400 independently owned dealerships spread out over 100 countries. The motorcycles have grown in popularity because they are perceived as the “ultimate biker status symbol” (Grant, 2015:506). It suggests that the owner is adventurous and free. The distinct “rumbling sound” (Grant, 2015:503) of its engines is further used to promote the idea of freedom and passion. The Harley brand is central not just to the company’s marketing but its strategy as a whole. The company sells the Harley experience, which forms the core theme of almost all of its external communication.
The firm manufactures its different brands of motorcycles at factories located in Pennsylvania, Wisconsin, India, Brazil, and Thailand (Rocco, 2017). Between 2012 and 2017, the Asia-Pacific market represented a key market for the company, accounting for over 7.4% of its sales (Figure 1). In 2018 and 2019, Harley Davidson witnessed a major decline in the sales of its motorcycles of over 4.3 percent (Figure 2). The decline was highest in such American markets as Canada, where sales went down by around 7.7 percent (Loesche, 2018).
This report aims on comparing and discussing Harley-Davidson´s key marketing strategies in the US and China.
Summary of Chapters
HARLEY DAVIDSON PROFILE: This chapter provides an overview of the company's historical origins, its global dealership network, and the core brand identity centered on freedom and the "Harley experience."
MARKETING ENVIRONMENT OF THE UNITED STATES AND CHINA: The chapter examines the stark differences in market conditions, contrasting the long-standing motorcycle culture in the US with the regulatory and utility-oriented barriers faced in China.
MARKETING STRATEGY: This section details specific approaches in both countries, highlighting the small product mix and distribution focus on authorized dealerships in the US, while emphasizing a luxury-niche approach for China.
COMPARATIVE ANALYSIS OF THE MARKETING STRATEGIES IN THE UNITED STATES AND CHINA: A critical review that contrasts niche branding in the US against the luxury-focused premium pricing strategy required to reach affluent customers in the Chinese market.
RECOMMENDATIONS: Suggestions are provided for navigating the Chinese market through community-based marketing and for adjusting the US strategy to better resonate with more price-conscious younger demographics.
LESSONS LEARNT: A synthesis reflecting on how targeting, positioning, and integrated communication strategies significantly influence the company's ability to maintain its survival and growth across varying global economic landscapes.
Keywords
Harley-Davidson, Marketing Strategy, International Marketing, Premium Pricing, Motorcycle Industry, Brand Identity, United States, China, Market Positioning, Consumer Behavior, Distribution, Luxury Goods, Product Mix, Global Expansion, Dealer Network
Frequently Asked Questions
What is the primary focus of this study regarding Harley-Davidson?
The paper focuses on the divergent marketing approaches Harley-Davidson employs when operating in its deeply entrenched home market of the United States versus the emerging, high-barrier market of China.
Which key thematic areas are discussed in the analysis?
Key areas include the influence of existing biker culture, the challenges of premium pricing, the impact of government regulations, and the strategic importance of brand community and luxury positioning.
What is the core objective of the research?
The objective is to critically compare the effectiveness and execution of Harley-Davidson’s marketing mix in both countries to understand how the company tailors its strategy to local environments.
What primary scientific methods were used to compile this report?
The report utilizes a comparative analysis methodology, relying on descriptive research, industry reports, and secondary data sources like market statistics and case study evaluations.
What aspects of the business are covered in the main body?
The main body covers the marketing environment, product mix configurations, distribution methods, integrated marketing communication, and pricing structures in both the US and China.
Which twelve keywords best describe this research?
Harley-Davidson, Marketing Strategy, International Marketing, Premium Pricing, Motorcycle Industry, Brand Identity, United States, China, Market Positioning, Consumer Behavior, Distribution, Luxury Goods.
Why has Harley-Davidson found it difficult to penetrate the Chinese market?
The difficulty stems from a lack of established motorcycle culture, stringent government regulations, competition from domestic utility-vehicle manufacturers, and infrastructure limitations.
How does the US customer profile differ from the Chinese customer profile?
In the US, older demographics and a long-standing motorcycle tradition dominate, whereas in China, the brand primarily appeals to younger, affluent individuals seeking luxury rather than practical transportation.
What role does the Harley Owners Group play in the company's strategy?
This group acts as a powerful customer relations tool, fostering a sense of community and family that the company leverages to create positive brand experiences and increase market loyalty.
What conclusion does the author reach regarding premium pricing?
The premium pricing strategy is deemed effective in both markets but acts as a stronger tool for exclusive luxury positioning in China, where fewer consumers can afford the high cost due to import taxes.
- Arbeit zitieren
- Anonym (Autor:in), 2021, Harley-Davidson Marketing Strategy in the US and China, München, GRIN Verlag, https://www.grin.com/document/1387801
