Phoenix Hybrid Team D: Alison, Anita, Bryan, Chelle, & Jason Kathy Decker April 6, 2009

1. Phoenix Hybrid Team D: Alison, Anita, Bryan, Chelle, & JasonKathy DeckerApril 6, 2009

2. History and Organization Product Description Marketing Research Segmentation & Target Market Position & Placement in Market Competitive Landscape SWOTT Analysis Distribution Strategies Product Lifecycle Pricing Strategy Advertising Plan Public Relations Opportunities Controls & Monitoring HARLEY RIDERS HAVE A ROMANCE WITH THE ROAD…

3. Established 1903 – Milwaukee, WI - 105th Birthday 2008 Harley Davidson, Inc. – Parent Co. of HDMC, Buell, MV Agusta, & HDFS Survived World Wars, Depression, Tarnished Reputation, Restructuring and Revival, Claims of Stock Price Manipulation, Strikes, & Other Unforeseen problems Trademarked Sound Sold in more than 70 countries More than just motorcycles Commitment to Society Production and Key Facilities World Wide American Legend…

4. Phoenix is Born • Environmentally Friendly–The “Phoenix” is born with • protection of our environment at heart. • Fuel Efficient -As required to meet the “Environmentally Friendly” aspects, and offsets rising fuel costs. • Hybrid Technology –Brings parallel hybrid technology to • the motorcycle industry and increases operational efficiency by 50%. • Integration -Allows for a reduced cubic inch displacement gasoline engine, which is where the economies are realized via reduced fuel consumption.

5. Phoenix Hybrid • Electrical System -The Phoenix utilizes 24V lithium ion battery construction to reap the benefits of maximum range capabilities. • High electrical demands of advanced drive train system – frame is modeled to accommodate over 40% of batteries needed to support the electrical drive system. • The remaining 60% of batteries are provided by dual 24V - C900A rear mount batteries. • Authenticity –An optional accessory, the uproar tailpipe allows for the signature Harley sound.

6. Marketing Research • Research Information (Primary)– Collect information from current customers & dealers / analyze additional info through industrial & competitor analysis. • Specialized Focus -Identify areas where motorcycle travel is advantageous, Glean further data from our targets. • Consideration (Secondary) - Given to readily available market research data specific to motorcycles and environmental concentrations • Goal -Provide an eco-friendly motorcycle, Out-perform our • competitors, Price that satisfies the consumers in our target markets, and Maintain reputation of our brand.

7. Two Step Process – Name / Divide Segmentation Criteria include: Demographics, Psychographics, Behaviors, and Geography. Determine Target Markets Develop Marketing Mix Metro & College Areas Young Adults – 20 to 48 Women Slightly Lower Income -$50,000 to $80,000 Married & Single Economically & Environmentally Conscious Warmer/Temperate Climates Segmentation & Target Markets

8. Reputation as an American Legend Image of Prestige Fun Unique Classic Style Superior to Competitors “With half the U.S. Market and a third of the global one, Harley-Davidson is the largest manufacturer of heavyweight motorcycles in the world.”(Wikinvest, 2009) Position & Place in Industry

9. SWOTT ANALYSIS • Strength:over a 1.5:1 ratio in 2006, 2007 and 2008 • Weakness:lack of sufficient assets aside from inventory • Opportunity:create a hybrid with “Harley sound” • Threat:current economic recession and competition • Trend:commuters decrease expenditures and think “green”

10. Why Now? • Our Competitors: From shoes to other motorcycle companies • Economic Environment: Changes in consumer needs • Historical Lessons: GM’s electric car surpassed by foreign hybrid vehicles despite being “first zero-emission vehicle on the market” • Customers as Partners: Focus on loyalty and encourage investment

11. Harley Stores Primary Secondary Market Saturation USA 684 Europe 370 Canada 74 Japan, Australia, Asia, & Latin America 240 Least Costly Distribution Strategies

12. Product Lifecycle • Categorical – Adding a product to an existing line of products in which we are creating a new category. • Market Introduction – Very streamlined due to large network of dealerships as well as exceptional following. Word will travel fast and we well have large success In this phase. • Market Growth - Primary emphasis will be on price sensitivity and customer satisfaction. Great indicator of how successful our test markets really were. Large growth anticipated. When competition enters, focus on market share • Market Maturity – Upon entry we are at this phase by nature of product, new technology gives us renewal and vigor. As competition enters and sales slow we will know we have hit this point. • Sales Decline – As new technology or better products we will enter this phase.

13. Pricing Objectives & Strategy • Combination Approach – Sales & Profit • To Increase Market Share & Sales • Goal - Sustainable Profit over Product Lifecycle • Administer Prices through Channels • Range of Prices • Cap Suggested Retail Price • Communicate Objectives to Dealers • Set Lower List Price & Accept Lower Mark Up

14. “This is not your dad’s old bike; this is a new motorcycle for a new generation.” • Combination of methods - Personal, Mass Selling, & Sales Promotions • Communication with Dealers - Exclusive ad materials • Ads in Print, on Radio, Television, & Billboards • Press Releases • New Section on Harley Website • Sales Promotions - Sweepstakes, Trade-in and/or Trade-up options, Freebies • New Symbols = New Image Lightening Bolts Nature Scenes Youthful Riders

15. Public relations opportunities • Strategic Approach Maximize sales while minimizing advertising costs Create a monopolistic competition • Corporate Level Extreme Makeover: Home Edition • Authorized Dealership Level “Harley Davidson Environmental Revolution”

16. Controls & Monitoring • Market Feedback • Customer Feedback • Dealer Feedback • Website Tracking • Profit Margins

17. CONCLUSION • Maintain Position in Industry • Maintain Edge over Competitors • Encourage Investments • Caring for Community • Release in 2010 – First on the scene • Monopolistic Competition • Extend Lifecycle of Phoenix • Ensure Business Success & Sustainability

18. Questions?

19. REFERENCES American marketing association (2009). Dictionary. Retrieved March 14, 2009, from http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=M Armstrong, G., & Kotler, P. (2005). Marketing: an introduction (7th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall. Harley Davidson USA (2009). This is where we live between friends. Retrieved March 9, 2009, from http://www.harley davidson.com/wcm/Content /Pages/Company/company.jsp Harley Davidson (2001-2009). Harley-Davidson USA/Company/History. Retrieved March 15, 2009, from https://www.h-dmedia.com/?locale=en_US&bmLocale=en_US Harley Davidson (2001-2009). Harley-Davidson Media Site. Retrieved March 15, 2009, from https://www.h-dmedia.com/?locale=en_US&bmLocale=en_US Customer Relationship Management Systems (2009). Finding profit in customer behavior. Retrieved March 22, 2009, from http://www.crm2day.com/content/t6_ librarynews _1.php?id=EpyZAulVVyRGtadgVR

20. REFERENCES Perreault, Jr., William D., & McCarthy, Jerome E. (2005). Basic Marketing (15th ed.). New York: McGraw-Hill/Irwin. Recklies, Dagmar (2001). Why Segmentation? Introduction and Definition. Retrieved March 20, 2009, from The Manager .org Web site: http://www.themanager.org/marketing/segmentation.htm Wikinvest, (2009). Harley-Davidson (HOG). Retrieved April 1, 2009, from Wikinvest Web site: http://www.wikinvest.com/stock/Harley-Davidson_(HOG) All Background pictures from Photobucket and Google Images.