Phoenix Hybrid
Team D: Alison, Anita, Bryan, Chelle, & Jason
Kathy Decker
April 6, 2009
HARLEY RIDERS HAVE A
ROMANCE WITH THE ROAD…
 History and Organization
 SWOTT Analysis
 Product Description
 Distribution Strategies
 Marketing Research
 Product Lifecycle
 Segmentation & Target
 Pricing Strategy
Market
 Position & Placement in
Market
 Competitive Landscape
 Advertising Plan
 Public Relations
Opportunities
 Controls & Monitoring
American Legend…
 Established 1903 – Milwaukee, WI - 105th Birthday 2008
 Harley Davidson, Inc. – Parent Co. of HDMC, Buell, MV Agusta, &
HDFS
 Survived World Wars, Depression, Tarnished Reputation,
Restructuring and Revival, Claims of Stock Price Manipulation,
Strikes, & Other Unforeseen problems
 Trademarked Sound
 Sold in more than 70 countries
 More than just motorcycles
 Commitment to Society
 Production and Key Facilities World Wide
Phoenix is Born
 Environmentally Friendly – The “Phoenix” is born with
protection of our environment at heart.
 Fuel Efficient - As required to meet the “Environmentally
Friendly” aspects, and offsets rising fuel costs.
 Hybrid Technology – Brings parallel hybrid technology to
the motorcycle industry and increases operational efficiency
by 50%.
 Integration - Allows for a reduced cubic inch displacement
gasoline engine, which is where the economies are realized
via reduced fuel consumption.
Phoenix Hybrid
 Electrical System - The Phoenix utilizes 24V lithium ion
battery construction to reap the benefits of maximum range
capabilities.
 High electrical demands of advanced drive train system –
frame is modeled to accommodate over 40% of batteries
needed to support the electrical drive system.
The remaining 60% of batteries are provided by dual 24V C900A rear mount batteries.
 Authenticity – An optional accessory, the uproar tailpipe
allows for the signature Harley sound.
Marketing Research
 Research Information (Primary) – Collect information
from current customers & dealers / analyze additional info
through industrial & competitor analysis.
 Specialized Focus - Identify areas where motorcycle travel
is advantageous, Glean further data from our targets.
 Consideration (Secondary) - Given to readily available
market research data specific to motorcycles and
environmental concentrations
 Goal - Provide an eco-friendly motorcycle, Out-perform our
competitors, Price that satisfies the consumers in our target
markets, and Maintain reputation of our brand.
Segmentation &
Target Markets
 Two Step Process –
Name / Divide
 Segmentation Criteria
include:
Demographics,
Psychographics,
Behaviors, and
Geography.
 Determine Target
Markets
 Develop Marketing Mix
Metro & College Areas
Young Adults – 20 to 48
Women
Slightly Lower Income $50,000 to $80,000
 Married & Single
 Economically &
Environmentally
Conscious
 Warmer/Temperate
Climates




Position & Place
in Industry
“With half the U.S. Market
and a third of the global
 Reputation as an
American Legend
one, Harley-Davidson is
 Image of Prestige
the largest manufacturer
 Fun
of heavyweight
 Unique
motorcycles in the
 Classic Style
world.”
 Superior to Competitors
(Wikinvest, 2009)
SWOTT ANALYSIS
 Strength: over a 1.5:1 ratio in 2006, 2007 and 2008
 Weakness: lack of sufficient assets aside from inventory
 Opportunity: create a hybrid with “Harley sound”
 Threat: current economic recession and competition
 Trend: commuters decrease expenditures and think “green”
Why Now?
 Our Competitors:
From shoes to other motorcycle companies
 Economic Environment:
Changes in consumer needs
 Historical Lessons:
GM’s electric car surpassed by foreign hybrid vehicles
despite being “first zero-emission vehicle on the market”
 Customers as Partners:
Focus on loyalty and encourage investment
Distribution Strategies
Harley Stores
Primary
Secondary
Market Saturation
USA 684
Europe 370
Canada 74
Japan, Australia, Asia, &
Latin America 240
Least Costly
Product Lifecycle
 Categorical – Adding a product to an existing line of products in which
we are creating a new category.

Market Introduction – Very streamlined due to large network of
dealerships as well as exceptional following. Word will travel fast and we
well have large success In this phase.

Market Growth - Primary emphasis will be on price sensitivity and
customer satisfaction. Great indicator of how successful our test markets
really were. Large growth anticipated. When competition enters, focus on
market share

Market Maturity – Upon entry we are at this phase by nature of
product, new technology gives us renewal and vigor. As competition enters
and sales slow we will know we have hit this point.

Sales Decline – As new technology or better products we will enter
this
phase.
Pricing Objectives &
Strategy
 Combination Approach – Sales & Profit
 To Increase Market Share & Sales
 Goal - Sustainable Profit over Product Lifecycle
 Administer Prices through Channels
 Range of Prices
 Cap Suggested Retail Price
 Communicate Objectives to Dealers
 Set Lower List Price & Accept Lower Mark Up
“This is not your dad’s old bike;
this is a new motorcycle
for a new generation.”
 Combination of methods - Personal, Mass Selling, & Sales
Promotions
 Communication with Dealers - Exclusive ad materials
 Ads in Print, on Radio, Television, & Billboards
 Press Releases
 New Section on Harley Website
 Sales Promotions - Sweepstakes, Trade-in and/or Trade-up
options, Freebies
 New Symbols = New Image
Lightening Bolts
Nature Scenes
Youthful Riders
Public relations
opportunities
 Strategic Approach
Maximize sales while minimizing advertising costs
Create a monopolistic competition
 Corporate Level
Extreme Makeover: Home Edition
 Authorized Dealership Level
“Harley Davidson Environmental Revolution”
Controls & Monitoring
 Market Feedback
 Customer Feedback
 Dealer Feedback
 Website Tracking
 Profit Margins
CONCLUSION
 Maintain Position in Industry
 Maintain Edge over Competitors
 Encourage Investments
 Caring for Community
 Release in 2010 – First on the scene
 Monopolistic Competition
 Extend Lifecycle of Phoenix
 Ensure Business Success & Sustainability
Questions?
REFERENCES
American marketing association (2009). Dictionary. Retrieved March 14, 2009, from
http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=M
Armstrong, G., & Kotler, P. (2005). Marketing: an introduction (7th ed.). Upper Saddle River, NJ:
Pearson/Prentice Hall.
Harley Davidson USA (2009). This is where we live between friends. Retrieved March 9, 2009,
from http://www.harley davidson.com/wcm/Content /Pages/Company/company.jsp
Harley Davidson (2001-2009). Harley-Davidson USA/Company/History. Retrieved March 15,
2009, from https://www.h-dmedia.com/?locale=en_US&bmLocale=en_US
Harley Davidson (2001-2009). Harley-Davidson Media Site. Retrieved March 15, 2009, from
https://www.h-dmedia.com/?locale=en_US&bmLocale=en_US
Customer Relationship Management Systems (2009). Finding profit in customer behavior.
Retrieved March 22, 2009, from http://www.crm2day.com/content/t6_ librarynews
_1.php?id=EpyZAulVVyRGtadgVR
REFERENCES
Perreault, Jr., William D., & McCarthy, Jerome E. (2005). Basic Marketing (15th ed.). New York:
McGraw-Hill/Irwin.
Recklies, Dagmar (2001). Why Segmentation? Introduction and Definition. Retrieved March 20,
2009, from The Manager .org Web site:
http://www.themanager.org/marketing/segmentation.htm
Wikinvest, (2009). Harley-Davidson (HOG). Retrieved April 1, 2009, from Wikinvest Web site:
http://www.wikinvest.com/stock/Harley-Davidson_(HOG)
All Background pictures from Photobucket and Google Images.