The Marketing Environment: Manufacturing Prowess Of Harley-Davidson (Essay Sample)

The Marketing Environment Name of Student Institution Affiliation The Marketing Environment: Competitors Known for its royal following especially by the Baby-Boomers, Harley-Davidson represents a tradition of America’s manufacturing and engineering prowess. However, Harley-Davidson continues to face competition from motorcycle manufacturers. The major competitors include; Honda, Yamaha, Kawasaki, Polaris, Suzuki, and BMW. The market share of these competitors has been on a steady increase with the 2014 statistics indicating the following: Harley Davidson-35%, Honda- 15%, Yamaha- 13%, Kawasaki- 9%, Polaris- 5%, Suzuki- 5% and BMW- 4% (Statista.com, 2018). Harley Davidson is primarily known for the production of heavyweight motorcycles ((601+cubic centimeter (cc) engines) for recreational purposes. With the aging Baby Boomers, the demand for heavyweight recreational motorcycles has declined. Between 2013 and 2017, Harley Davidson has recorded a decrease of $400 million in sales from $4.2 billion to $3.8 billion representing a decline of 8 percent (Coffin, 2018). On the contrary, smaller motorcycles have experienced a higher interest from the millennial for their affordability, lightweight as well as accessibility of motorcycles (Coffin, 2018). The overall demand for motorcycles in the US has gone down, for example, there was an overall demand decline for motorcycles in 2015 by more than 8.6% (Trefis Team, & Great Speculations, 2016). The demand for motorcycles with large engines (601+cc engine) has experienced a more significant decline recording a reduction of 17,000 units during 2013-2017 as compared to an overall motorcycle reduction of 12,000 units in new registrations over the same period (Coffin, 2018). Therefore, Harley Davidson continues to lose its market share to its competitors. The competitors have increased their market share through the manufacture of entry-level, lightweight and inexpensive versions of motorcycles as compared to Harley Davidson. The overall motorcycle imports in the US declined by 14 percent from $2.1 billion to $1.8 billion during 2013-2017. However, for the period between 2013 and 2017, imports share of smaller motorcycles in the US increased to 55 percent down from 48 percent. Nonetheless, consumers exhibited a much lower demand for heavyweight motorcycles as compared to smaller motorcycles. For instance, large motorcycles with more than 800 cc engines had a reduction of 25% in import preference in the US as compared to a two percent reduction in imports for smaller motorcycles (Coffin, 2018). In retaliation, Harley Davison has introduced smaller motorcycles that are more appealing especially to the millennials as well as providing training classes for these riders. Harley-Davidson Differentiation Target on Heavyweight Market Segment Harley-Davidson has primarily focused on the production of heavyweight recreational motorcycles for its clients. Instead of merely catering for transportation, Harley Davidson sells a lifestyle, and its clientele is willing to pay a premium for it. Established Internal and External Integrity of their Products Harley Davidson has created more connection between its employees and the customers through, for instance, identical jackets and biking leathers that make it easy to identify one another ("Men's Motorcycle Jackets | Riding Jackets | Harley-Davidson USA," 2018). Further, Harley Davidson engages in motorcycle customization to suit the specific needs of its clientele. The strategy is significant in maintaining high brand recognition among the client. Customer Value-Chain Harley Davidson invests in differentiation advantage by creating customer value that builds its reputation and increases loyalty among the clients. For example, this is achieved through providing facilities for conducting test rises f...