Case study

Harley-Davidson Navigates Down New Roads

According to Harley-Davidson management, the company does not sell motorcycles

or riding gear. Instead, according to H-D's mission statement, the company is in the business

of "fulfilling dreams." Over the years, H-D has developed a business culture that it describes

as "Harleyness." Prospective employees are screened to determine if they have the cultural

fit. The company encourages employees to own and use the same types of motorcycles

used by customers. Harley people ride their bikes to work and spend vacations touring and

attending rallies with fellow Harley riders. Maintaining a strong relationship with customers

is engrained in H-D culture. When a person buys a Harley-Davidson motorcycle, he or she

receives a free 1-year membership to the Harley Owners Group (HOG), which was

developed in 1983 as a program to keep people active with their Harley. Simultaneously, it

keeps the company close to its customer. Through HOG, the company supports rallies, club

meetings, and weekend parties featuring free food and drink. H-D executives routinely

attend bike rallies across the country to stay in touch with Harley-Davidson customers and

enthusiasts. H-D employees want to hear first-hand from fellow riders about great riding

experiencesor problemsthey might have had. And they're able to tell those riders, "I

know what you mean" because those employees are riders too.

Harley-Davidson enjoyed a monopoly in the motorcycle industry for many decades.

In the 1970's, Japanese manufacturers flooded the market with high quality, low priced

bikes. From 1973 - 1983, Harley's market share went from 77.5% to 23.3% with Honda

having 44% of the market by 1983. Harley Davidson could not compete on price against the

Japanese motorcycle producers, so it had to establish other market values and improve

quality.

Adapted from: Lamb, Hair & McDaniel (2009) MKTG3 Principles of Marketing, p.108.

Please answer the following questions based on the above given case study "only".

Top of Form

1. Based on the Harley-Davidson's mission statement in the case study, indicates which marketing philosophy they are using?

2. Describe any FOUR (4) marketing philosophies that may suitable for Harley-Davidson.

a) Customer value

Harley-Davidson's customer-driven approach embodies an organization-wide commitment to service and support so that customers attain benefits relative to the price they pay for the product. Define above terms and explain why these concepts are important to Harley Davidson marketing strategy?

b) Satisfaction

Harley-Davidson's customer-driven approach embodies an organization-wide commitment to service and support so that customers attain benefits relative to the price they pay for the product. Define above terms and explain why these concepts are important to Harley Davidson marketing strategy?

c) Competitive advantage

Harley-Davidson's customer-driven approach embodies an organization-wide commitment to service and support so that customers attain benefits relative to the price they pay for the product. Define above terms and explain why these concepts are important to Harley Davidson marketing strategy?

d) Unique value proposition

Harley-Davidson's customer-driven approach embodies an organization-wide commitment to service and support so that customers attain benefits relative to the price they pay for the product. Define above terms and explain why these concepts are important to Harley Davidson marketing strategy?

e) Internal marketing

Harley-Davidson's customer-driven approach embodies an organization-wide commitment to service and support so that customers attain benefits relative to the price they pay for the product. Define above terms and explain why these concepts are important to Harley Davidson marketing strategy?

f) Product quality

Harley-Davidson's customer-driven approach embodies an organization-wide commitment to service and support so that customers attain benefits relative to the price they pay for the product. Define above terms and explain why these concepts are important to Harley Davidson marketing strategy?

4 a) Define marketing mix.*

4 b) Generate marketing mix (4p's) for Harley Davidson offerings based on information from the case study.