Similarities, wir die vorliegende Seminararbeit selbstständig verfasst, und

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Similarities, wir die vorliegende Seminararbeit selbstständig verfasst, und

Similarities, differences and key success factors in the marketing
strategy of the companies ´Harley Davidson Motorcycles´ and ´KTM Motorcycles

 

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submitted
at the

IMC Fachhochschule
Krems

 

 

Bachelor programme

Unternehmensführung und E-Business Management

 

by

Michael
Teufl

 

 

 

 

Supervisor: Dr. Thomas Handler

Submitted on: 11.01.2018

Eidesstattliche Erklärung

„Wir erklären an Eides statt, dass wir die vorliegende
Seminararbeit selbstständig verfasst, und in der Bearbeitung und Abfassung
keine anderen als die angegebenen Quellen oder Hilfsmittel benutzt, sowie
wörtliche und sinngemäße Zitate als solche gekennzeichnet haben. Die
vorliegende Seminararbeit wurde noch nicht anderweitig für Prüfungszwecke
vorgelegt.”

 

 

Datum:  11.01.2018                                                                                                             

Michael Teufl

 

 

 

 

Inhaltsverzeichnis

Inhalt
Eidesstattliche
Erklärung. I
Inhaltsverzeichnis. II
1…….. General Introduction. 1
1.1…….. Research Question. 1
1.2…….. Approach in the seminar paper 1
2…….. Harley Davidson Motorcycles. 2
2.1…….. Marketing Strategy. 2
2.1.1……. How the company go to market 3
2.2…….. Group of Costumers. 3
2.3…….. Product Range. 3
2.4…….. Harley Davidson Marketing Mix. 4
3…….. KTM Motorcycles. 5
3.1…….. Marketing Strategy. 5
3.2…….. Group of Costumers. 5
3.3…….. Product range. 6
3.4…….. KTM Marketing Mix. 6
4…….. Why does Harley lose
costumers?. 8
4.1…….. What is Harley already doing?. 8
4.2…….. What can Harley do?. 9
5…….. Differences and similarities
in the marketing Strategy of KTM and Harley Davidson  10
6…….. Conclusio. 11
7…….. List of Literature. 12
 

 

1      
General Introduction

The purpose of this work is to give an overview on two Motorcycle
manufacturers KTM Motorcycles and Harley Davidson Motorcycles. They are
companies that produces motorbikes for the public road. But even though they
produce products in the same segment, they are completely different. KMT
produces for rather younger group of customers. Harley Davidsons special field
concentrate on older costumers.

Furthermore, this paper provides a comparison of the similarities and
differences in the marketing strategy.

1.1    
Research Question

The research Question is to find Similarities,
differences and key success factors in the marketing strategy of the companies ´Harley Davidson Motorcycles´ and ´KTM Motorcycles

1.2     Approach in the
seminar paper

In the first part of the paper general information about both company’s
Harley Davidson and KTM will be explained.

In the second part of the document it will be discussed why Harley
Davidson lose costumers and what Harley Davidson even do or additionally can do
to stop losing customers.

In the third part the differences and similarities in the marketing
strategy of both companies will be described.

 

 

 

2     Harley Davidson
Motorcycles

This chapter contains the marketing strategy, group of costumers and the
product range. Harley Davidson Motorcycles is a manufacturer of high end
heavyweight motorcycles and it was founded in Milwaukee in 1901. The vison from
this company is “Fulfilling dreams of personal freedom”. They think that this
bond brings customers, employees, suppliers, enthusiasts and dealers together. (Davidson, Harley Davidson Company Webseite, 2018)

2.1    
Marketing Strategy

The market positioning strategy that Harley Davidson follows is that
they sell cult products and they are priced well above the average price
that is normal in this industry. This is possible because the company enjoys a high
customer loyalty.

Their Vision is also a very important point relating to the marketing
strategy, the company´s idea was not to sell only bikes, they sell ´Harley
Experience` in association with a positive sense of life. They create an
image of lifestyle for biker. (Förster, 2006)

HD pursues the following strategy to seek on the market until 2027. (Davidson,
Harley Davidson Company Webseite, 2018)

·       The company
want to attract about 2 million new customers in the U.S. Market

·       At
international level H-D want to grow their business up to 50% of the annual
Volume. They want to grow their brand awareness and scope in these markets.

·       Until 2027,
their product plan is to release 100 new high Impact Bikes. Their product plan
is the most aggressive in their history.

·       HDMC also want
to satisfy their shareholders by bring superior high returns to them.

·       To care about
environmental impact is as important as grow business, it is important to the
company to paying close attention to the effect they create on the planet and
society.

 

2.1.1     How the company
go to market

All products produced by Harley Davidson are vended through a network of
1400 independent dealers in about 100 countries. (Daidson,
2018)

2.2    
Group of Costumers

HD motorcycle riders come from many different cultural groups. What
brings all riders together is that they are all freedom-loving and incredible
adventure searching. It doesn’t matter what gender, age or ethnical background
they have.

Harley-Davidson stands for – independence, authenticity and the passion
for being on the open road.

They want to build a different generation of motorcycle riders and want
to bring the fabulously feeling of freedom to costumers. (Davidson,
Harley Davidson Company Webseite, 2018)

2.3    
Product Range

Products and Services HD offer are Motorcycles, additional requirements
like Parts and Accessories, general Merchandise and financial service.

The first segment are motorcycles HD manufactures and sell custom
cruiser and touring motorcycles. The product range is partitioned into five
segments: Sportser ®, VRSC™, Dyna®, Softtail® and Touring. Every family
includes a variety of models.

The second segment are motor parts and motor accessories. These products
meet the same high standards as the motorcycles. They are produced for
individual customers who want to customize their bike with decorative parts and
performance parts.

The third part of the product line is the Motorclothes® Merchandise. The
company sell clothes for on- and off-road driving. There the customers, riders
and non-riders can find a variety of items to choose from. (Davidson,
Harley Davidson, 2017)

 

2.4    
Harley Davidson Marketing Mix

The marketing mix, also known as the 4P´s is the strategy and tactic
used from a company to place their brand and their products in a market. (Goi, 2009)

Product

The company offers a limited product assortment (also mentioned at 1.5
product range), motorcycles, engines, parts and accessories.

Additional they offer Rentals through authorized rental dealers. This
component shows they have their business to a limited number of product lines. (Davidson,
Harley Davidson, 2017)

Price

The price strategy that is used by Harley is the premium pricing
strategy. The company justifies their high prices by the quality of its
products. (Davidson, Harley Davidson, 2017)

Place

The company has three channels to sell their products, authorized
dealers and rental dealers. The third part is the Harley Davidson Online store. (Davidson, Harley Davidson, 2017)

Promotions

Promotion takes place commonly alongside the biker community. Personals
selling is important to Harley Davidson they encourage customers to try the
company´s products at dealers. In addition, advertising is also important to
reach new customers. (Davidson,
Harley Davidson, 2017)

3     KTM Motorcycles

This chapter contains the marketing strategy,
group of costumers and the product range of KTM, its Europe’s biggest Motorcycle
Manufacturer, on their way they always want to race ahead. They want to develop
their leading position across all market segments. Furthermore, they are
expanding into new and emerging markets.

3.1    
Marketing Strategy

KTM´s Company Vision – Our vision is to create high performance motor
vehicles that are never anything short of premium and made form the highest
quality components.

KTM Motorcycles say that building high quality performance vehicles in
only half of the task. Because it is as important to build these first-class
vehicles as connecting customers with it.

KTM group contain two brands to perform in every area, this includes KTM
and Husqvarna to provide first class service for costumers. KTM thinks that
customer intimacy (Kundennähe) comes to the success of organizations so they
investing in growing this area and optimize the services that offered to
customers.

To provide employees knowhow about larger sales and marketing process
KTM hold training courses (inside out perspective). (KTM M. , 2018)

Most costumers buy a KTM motorcycle to own a high-quality product with
durable parts that last for a long time, also because the latest racing
technology is implemented in their bikes.

KTM´s actual strategy is to ensure product quality to meet demands from
customers, while reducing costs for materials and production. (KTM,
2016)

3.2    
Group of Costumers

In
partnership with 31 international sales subsidiaries and two additional joint
ventures in New Zealand and Dubai, KTM GROUP staff service and attend to over
2,000 dealers and importers worldwide on behalf of both KTM Sportmotorcycle
GmbH and Husqvarna Motorcycles GmbH.

3.3    
Product range

KTM manufactures a big assortment of off-road motorcycles, Street bikes
and since 2008 the KTM X-Bow is in the product range. They produce a wide
variety of off-road bikes motocross, enduro and free ride.

The KTM motocross and free ride bikes are only designed for
off-road riding, customers are not allowed to drive this bikes on public roads.
The enduro versions are the legal to ride on the street because they are
supplied with equipment that a driver need to drive at public streets.

Street bikes are divided in the following segments, Supermoto, Adventure
tourers, Sports tourer, Naked bikes, Supersport and Superbikes. All those bikes
are street-legal

The last vehicle segment is the KTM X-Bow, lightweight sport car
designed for two persons. The whole chassis material is carbon fibre, the car
is powered by an engine designed by Audi.

KTM also produces Parts and Wear for motorcyclists, it contains tuning
parts for costumers to customize their street and off-road bikes. Clothing and
accessories also included in this segment. (KTM
M. , 2018)

3.4    
KTM Marketing Mix

Product

The Point Product is mentioned at 1.9 product range KTM

Price

KTM is a premium brand, but they follow a mid-premium price strategy.
Because as a result of this they are able to reach a big number of costumers
and so they are able to oversell a lot of its products.

Place

KTM´s headquarter is located in Mattinghofen in Austria. The company has
a widespread network, where they distribute their products they are available
for sale at about 400 independent dealers in the international market. Every
vendor who is able to sell product manufactured by KTM is authorized by the
firm.

Promotions

The enterprise use every possible way to promote their products. They
are present at social media. Magazines and print media are also used to promote
the brand.

4     Why does Harley
lose costumers?

In this chapter, it will be discussed why Harley lose costumers and what
Harley even do or additionally can do to stop losing customers.

Harley Davidson´s Motorcycles are popular for their customers who are
born in the time of the Baby Boom, the Baby Boomer generation, which forms the
biggest customer base. The problem is that this customer segment is aging. The
company is battling to replace its core customer base. (Forbes, 2017)

The next reason is that the average age of costumers who buy heavyweight
motorcycles increased since 1990 from 32 to 47. Data form the motorcycle
industry show that nearly 50 percent of the riders are over 50 and only about
10 percent are 30 to 34.

The heavyweight motorcycle marked in the U.S has not risen since 2005,
and it will not in near future. This is because the young Costumer born between
1980 and 2000, called the millennials are more price-conscious. The market also
hit because of the growing uncertainty relating to politics in this country. So
the manufacturer hast so be strong in competition and also grow in a slowing
market. (Forbes,
2017)

The millennials buying a lot of bikes, but they are not new, the Company
has to motivate the millennials to buy new bikes instead of used ones. But the
problem is that the new 2018 models start at over 11.000 $

Another reason is that only a few women drive a bike like a Harley
Davidson. Actual data shows that only 14 percent of the riding population are
female. (if mom rides, the kids will ride) (Readingeagle,
2017)

4.1    
What is Harley already doing?

 The company is concentrating on
grow the sport of motorcycling. As the core customer base ages, they must win a
new generation of riders. In 2017 they win over 100.000 new customers in the
whole world, but the majority is in the U.S market.

As the core customer segment, the Baby Boomer generation, is aging
Harley starts to diversify its customer base, since the last years. With their
marketing strategy, they want to reach more women, African-Americans and the
young adults (18 to 34).

The next measure is that Harley Davidson try to extract the growth
opportunity in the segment of used bikes. With this sanctions they also win new
costumers and bring costumers back who already bought a bike like a Harley, so
the company could profit from the high brand loyalty that they build over more
than hundred years. (Forbes,
2017)

4.2    
What can Harley do?

How to win in the industry that Harley plays, create the right
experience for the target market, membership in exclusive clubs, feeling roaring
engine, high quality bike, exclusive look and benefit from premium brand
status.

5     Differences and
similarities in the marketing Strategy of KTM and Harley Davidson

In this
chapter, the difference and similarities in the marketing strategy of both
companies will be discussed. On the one hand Harley Davidson sell cult products
for a small customer group on the other hand KTM sell high performance bikes
for a wide assortment of customers.

Harleys
products are delivered in a high-end quality, in this point both companies
follow the same strategy.

KTM follow
a two-brand strategy with a wide product range, to cover as many parts of the
market as possible. Harley Davidson has a narrow assortment of products,
because they only act in the market of heavy weight motorcycles.

The typical
costumers of Harley Davidson are older, freedom loving and male. KTM provides
bikes for nearly every costumer group, but the strategy focuses rather young
costumers, because freeriding bikes and superbikes mostly used by younger customers.

What is
sure is that customers of Harley Davidson are very loyal with the brand. They
like to live the `Harley Experience, it is very important for them to live the
freedom feeling that every Harley Davidson motorcycle provides. On the other
side, KTM sells standard products for every customer who wants a bike with high
quality (without the special experience).

KTM sells
standard bikes in comparison to Harley Davidson who sells individual bikes with
the special `Harley Experience`.

6     Conclusio

The author
come to the following conclusion even if both manufacturer are producing and
bring products from the same product category to market they differ in their
marketing strategy and in the way, how their customers act.

7      
List of Literature

Daidson, H. (01. 01 2018). Harley Daidson.
Von Harley Daidson:
https://www.harley-davidson.com/us/en/about-us/company.html abgerufen
Davidson,
H. (12. 12 2017). Harley Davidson. Von Haley Davdison: https://www.harley-davidson.com/gb/en/company/becoming-a-dealer/the-product.html
abgerufen
Davidson,
H. (01. 12 2017). Harley Davidson. Von Harley Davidson:
https://www.harley-davidson.com/us/en/company.html abgerufen
Davidson, H. (2017). Harley Davidson. US: Halrey
Davdison. Von Harley
Davidson: one_pager_v4 abgerufen
Davidson, H. (02. 01 2018). Harley Davidson Company
Webseite. Von Harley
Davidson Company Webseite: https://www.harley-davidson.com/us/en/company.html
abgerufen
Förster, A. (2006). Marketing Trends . Germany :
Gabler.
Forbes. (7.
02 2017). Forbes. Von Forbes:
https://www.forbes.com/sites/greatspeculations/2017/02/07/harley-davidson-works-to-reverse-the-declining-sales-trend-in-the-home-market/#1d1bc3d6a897
abgerufen
Goi, C. (2009). A review of marketing mix. n.g: n.g.
KTM. (2. 2
2016). KTM. Von KTM:
http://www.ktmgroup.com/globalassets/media/files/financial-reports/2017/gb2016-e_web.pdf
abgerufen
KTM, M.
(01. 01 2018). KTM Motorcycles. Von KTM Motorcycles:
http://www.ktmgroup.com/en/company/ abgerufen
Readingeagle.
(28. 12 2017). Readingeagle. Von Readingeagle:
http://www.readingeagle.com/money/article/harley-davidson-wants-to-teach-more-to-ride
abgerufen
 

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