The expanded marketing mix: Harley Davidson #1
Harley Davidson operates internationally in two directions, which are motorcycles and related products and financial services associated with motorcycle sales (Marketline Industry Reports, 2014). Motorcycles and related products segment includes heavyweight, touring, custom and performance motorcycles, as well as motorcycle parts and accessories. Financial services segment is focused over the wholesale and retail financing, property and casualty assurance, consumer retain installment sales contracts and extended services to motorcycle owners. Being initially oriented for heavily built motorcycles with strong engines, as well as diversified product portfolio, Harley Davidson’s products acquired a reputation of mean machines that possess a strong quality from the beginning (Bhasin, 2015). Thus, quality or style improvements are applicable to the associated services provided by the company, since the primary segment already possesses strong customer recognition.
For instance, financial services division could be optimized in order to address the market threat of rising materials costs, which increases cost of production and, consequently, cost of the final product. They could seek for extended and alternative payment methods for customers that could not afford the product at the moment, or seek for making international transactions using alternative payment methods rather than on cash or credit card.#2. According to the Marketline Industry Report (2014), the forecast for the global motorcycle manufacturing growth rate is capped at CAGR of almost 9% through 2011-2016, with particular case of United States bringing 71% of revenues to Harley Davidson, where the expected motorcycle consumption in 2015 will raise by 5% comparing to the 2012. Positive growth of end market creates incentives for developing new products that would satisfy changing tastes of end consumers.
Thus, Harley Davison could consider worth adding new products and brands in its product line, but make it with a precaution towards market threats of economic crises and rising costs of raw materials. It might be more reasonable for Harley Davison to concentrate on existing brands while introducing new motorcycle models, so that its marketing communications would be consistent with visions and attitudes of their existing consumers (Jobber, 2011). Harley Davidson should also consider cultural differences while operating internationally, which might require adjustments of motorcycle parts production process.
For instance, perception of oil smell and engine running effect might be considered as dirty and defective in countries other than United States (Prevot & Hsieh, 2011).#3. Harley Davidson operates in ultra premium priced segment, since it mainly deals with heavy built chassis and high displacement engines (Bhasis, 2015). This pricing policy denotes the strategy of aiming towards very high quality standards available for particular segment or class of customers. Company has never changed the aforementioned pricing policy and strategy since, above all, this is an essential pint of its reputation and brand exclusivity.This strategy, however, was not always favorable for the company in terms of its revenues, especially during times of global financial crisis. In 2009, for instance, the company has executed restructuring activities that were aimed on reducing excess capacity; quitting non-core business operations …