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 dealer 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 components 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 rallies 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 day Six day cycle Waiting list to become employee Employees wear Harley Davidson apparel by choice 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 Systems 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?
Pages to are hidden for
"harley"Please download to view full document