HarleyDavidson Futurist Team 6 Joe Amado Frank Bartos

Harley-Davidson Futurist Team #6 Joe Amado, Frank Bartos, Jackie Conner, Kimberly Fuller, Kimberly Montgomery

Company Updates n Retirement of CEO Jeffery L. Bleustein n New models such as Softail Deuce, VRSCA V -Rod, Blast and Firebolt n Used Twin Cam 88 B in engines instead of Twin Cam 88 n Expanded facilities n Open Road Tour began in 2002 in Atlanta Georgia

Company Updates n Intoduced three new motorcycles in 2005 n 2006 VRSCR Street Rod n 15 th Anniversary Edition 2005 Fat Boy n 2005 Sportster 883 R

Company Updates n Changed Warranty n “Operation Extend the Ride”

Inside Harley-Dvidson n Harley-Davidson’s revenue for 2004 was $5. 02 billion n n compared to 2003’s revenue of $4. 62, an increase of 8. 5 percent. This is Harley-Davidson’s nineteenth consecutive record year in revenue and earnings. They dominate the market in North American. In 1998 they had the smallest market share in Europe at 6. 4% and in Asia/Pacific it had the fourth smallest market share at 15. 6% (Mattson 13). Five years later in 2003 they had the biggest market share in Asia/Pacific at 25. 8% and the sixth smallest market share in Europe at 8. 1% (Harley. Davidson. com).

Harley Owners Group (H. O. G. ) n H. O. G. was established by Harley-Davidson in 1983 in response to a growing desire by Harley-Davidson owners and riders for an organized way to share their passion and show their pride (Harley-Davidson. com). n Today H. O. G. has 900, 000 members and is the largest factory-sponsored motorcycle organization in the world (Harley-Davidson. com). n Benefits: Subscriptions to Hog Tales and Enthusiast, membership manual, membership only site, toll-free number, touring handbook, mileage program, pins and patches, insurance, travel center, events, etc.

Harley-Davidson Services n Financial services- motorcycle loans, cycle insurance, and the Harley-Davidson Visa credit card n Rider education- new rider, skilled rider, and group riding courses n Rentals and tours- allow customers to rent a Harley from their Harley-Davidson Authorized Rentals and gives tours through their Harley-Davidson Authorized Tours n These services can be beneficial to many customers and help them through the whole process of buying and owning a Harley.

Marketing Strategy n Original Strategies -Tradition - American Made - Feeling of Freedom n Problems - Baby Boomers - Generation Y - Sports Bike Phenomenon - Global Competition

Marketing Strategy n New Strategy - Appeal to “young riders” of Generation-Y - 2005 VRSCA V-Rod motorcycle series - H. O. G. (Harley Owners Group)

Expanding Internationally n From its inception, Harley Davidson has enjoyed success in most of North America. n Harley Davidson has not been as successful abroad, particularly in Europe and Asia.

Expnading n Harley Davidson faces fierce competition in Europe and Asia, primarily from manufacturers such as Honda, Kawasaki, Yamaha, Suzuki and BMW. n These manufacturers produce a variety of motorcycles that draw consumers away from Harley Davidson. n Since 1998 however, Harley Davidson has increased its market shares in both of these regions.

Expanding n In 1998 Harley Davidson had a 5. 9% market share in Europe. In 2003 that number increased to 8. 1%. n For Asia, Harley Davidson had a 14. 8% market share in 1998 and in 2003 that number increased to 25. 8%

Why the increased market share? n 100 th anniversary model n Increased supply channels n Introduction of sportster models in 2003 Sportster – 1200 Roadster

Expanding n Harley Davidson has also increased its brand recognition abroad. n Harley Davidson is now selling police motorcycles to 45 different countries around the world n Increases in “H. O. G. ” membership

Positive Marketing Strategies n Leading manufacturer of motorcycles in the U. S. n “Anti-internet” website n Only produce motorcycles

Harley-Davidson in the Future n Expand manufacturing facilities n Market to all age groups instead of just middle -aged males n Use television marketing n Price product in Europe based on annual income

n. Questions?