harley by zhangyun


									      Welcome to the Family

Chris DeMicco, Laura Dunne, Dave Gelber, Sarah Haight, Sarah Hunkins
                        November 4th, 2005
Problems & Issues
Competitive Forces
 Industry Substitutes Japanese and European
  models are better built and cheaper
 Buying Power Customers evaluate brand by
  talking to others, reading and watching
  competition results; can negotiate price and
 Supplier power Suppliers only dealt with
  dealer with good reputations and strong demand
Problems & Issues
Competitive Forces
 New Entrants  BMW closely resembled HD’s
  product line of traditional bikes but also offered
  a large number of performance bikes
 Competing Sellers  HD has to compete with
  Japanese and European sellers in the US;
  potential loss of market share for poor past
Problems & Issues
Other Problems
 Target market growing older; next generation
  lacks interest
 EPA standards are increasing
 Stigma of the Hell’s Angels left over from past
 Increasing number of motorcycle deaths
Rebuilding the Company

 Management needed to rely on their main
  resource strength, customers’ allegiance to the
  Harley Davidson brand
 To broaden appeal to include new audience
 Turnaround strategy focused on three primary
Improving Product Quality

   Adding clothing and accessories to product line
   Licensing name to more than 100 manufacturers
   Starting Custom Vehicle Operations (CVO) unit
   Co-developing and purchasing Buell
Abandoning Advertising

   Offering promotions
   Forming Harley Owner Groups (HOGs)
   Holding demo rides
   Offering rentals
Improving Dealer Network

 Offering test-rides
 Operating in-house service departments
 Distributing newsletters and promoting local
 Training mechanics and personnel
 Offering motorcycle training courses
Strategic Recommendations

 More products directed towards women
     New marketing campaign
     Website changes
     Better fitting and customized bikes
     Rider’s Edge program
 Recreate the Buell image
   Evolution by Harley Davidson
   Color availability
Strategic Recommendations

 Organize the Evolution Rally
   Nationwide tour targeting 18 to 30 year olds
   Familiarize consumers with the new Evolution brand
 Lead the customer through the entire experience
   New IT innovations in the ordering process
      E-systems in every retail store
      On-demand printing services
      Put the customer in the assembly plant
   Deliver the bike to the customer’s front door
Technology and Production

 U-Shaped Production line
   Combination of manual and robotic labor
 Softail production line is ergonomically correct
 Customized bikes are made by two people in a
  separate section of the manufacturing plant
 JIT and MAN
 Mechanics and other dealership personnel can
  be trained via a web-based distance learning
  program that teaches over 100 online classes
Continual Improvement
Employee Satisfaction

 No Employee loses his/her job to technology
 Employees do not perform the same job every
   Six day cycle
 Waiting list to become employee
 Employees wear Harley Davidson apparel by
Case Update
Financials 2004
Revenue        ▲ $5.02 Billion (8.5% Increase)
Net Income     ▲ $889.8 Million (16.9% Increase)
Retail Sales   ▲ 7.1% (United States)
                  (Market Share Lead of 49.5%)
               ▲ 1.5% (International)
Stock Price    ▲ 27.8% (Averaged $60.75)
               Yesterday’s Close: $51.25
Case Update
Evolutionary Systems 2004
 About Bar Code Solutions, Inc.
   Automotive Shipping Solutions/Inventory Tracking
 Sterling Web Forms
   Harley Davidson users send and receive purchase
    orders and invoices electronically
Case Update
Corporate Leadership
 Jeffrey Bleustein – CEO announced retirement.
 Jim Ziemer – New CEO

2004 Awards and Honors

 Prestigious Catalyst Award—Role of Women
 Fortune Magazine – 100 Best Companies to
  Work For
Current Product Lines

            Buell Ulysses

                            Harley V-Rod

     Traditional Harley
Models and Paint Colors
     Thank you!
Questions or comments?

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