Harley Davidson’s distribution strategy has been best described by the Web design and the E-commerce technique to ship the products to the end users. The dealer network functioning over the online mode has made life of consumers worth experiencing by producing vast product offerings, providing knowledge and service to all the riders of Harley. The dealer network also are placed and located at strategic points where the customer potential exists and there is access to high concentration of consumer base who are interested in the purchase. These networks help in distributing the accessories, parts, products and goods.
In its dis...
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...tribution program, HD also markets its promotions through dealerships with shows, marketing programs, events and public relations functions. Costco and BJs are the non dealer networks in the form of departmental stores to provide services to the customers which help in igniting the purchase spirits of the non enthusiastic users (echeat, 2005). Ans 2: LOGISTICS? The supply chain management has been a tremendous effort by Harley with respect to the market demand, design, the engineering, raw material sourcing and component identification, efficient production facilities and the best and effective distribution system.
The engineering and the product design being a technical aspect, the suppliers are been considered to be the prime deciding factors to ensure the feasibility and the engineering process. The production successfully runs on JIT (just-In-Time) model which adds on to the complexity of inventory handling, quality and the cost. While sourcing the parts the customer is always kept in mind because in certain cases the customers who aim at a HD brand wants domestic content and American production and engineering skills.
The company participates in numerous customer events to directly get connected to them which ultimately balance the competitiveness of supply chain and the consumers’ perception of the HD brand (WISCONSIN, 2007). Ans. 3: RETAIL PHYSICAL ACTIVITY? speaking of the American Eagle HD retail store to site an example, the visual merchandizing, the ambience and the strategic aesthetics and the store design attracts a huge crowd of consumer pool. This sales area store is a huge two storied glass walled which deals with the Harley Davidson motorcycles and accessories business activity.
The first floor has a beautifully displayed HD parts, components and motorcycles which catches the customers’ attention at one glance. The floor has a well equipped computerized service department along with its strategically managed inventory and warehouse dealing. The top floor/second floor is meant for relaxation which provides a pool table, comfortable couches and a huge television which keeps the customers busy with getting entertained during the process of their motorcycle servicing. Harley uses excellent lighting to empower the look of the merchandise and its appearance.
The strategy of the retail activity of HD is that since the motorcycles are dark in color, the perfect lighting with halogen lights in the store provides a great ambience. The stores are shaped by a great architecturally designed entrance which provides security and a spaced passage for easy movement (generalcontractor, 2001 & Halophane, 2008). Ans 4: COMPETITIVE ADVANTAGE? Yes, Harley Davidson has a competitive advantage over the Japanese competitors like Honda, Yamaha and BMW and none comparatively has been able to match the mystique like Harley either in terms of costs or producing quality designed motorcycles.
Its traditional and stylish designed models along with company sponsored club for HD customers created the nostalgic feeling about its elegant looks and the beauty which was not attained in the competitors strategies. The edge Harley has over its competitors is based on the strategy of building a community which HD follows by way of its contributions to charity. Adding value, extending the enterprise and the brand along with coping the Harley’s sound and the designs and the style has been the up most concern of the major competitors.
Quality in fact has taken Harley to great heights along with its production facilities and building bikes firmly based on the advance orders from the dealers and not on the forecasted market demand (Rifkin, G. 2008).
echeat. (2005) Harley-Davidson’s Marketing Strategy Overcame Competition, viewed 9th Aug, 2008 http://www. echeat. com/essay. php? t=27170 Generalcontractor. (2001) American Eagle Harley-Davidson Retail Store, viewed 9th Aug, 2008, http://www. generalcontractor. com/construction-projects/texas/corinth/american-eagle-harley-davidson.asp Halophane. (2008)
Retail Lighting Guide, viewed 9th Aug, 2008, http://www. holophane. com/hlp_library/guides/HL-2146. pdf Rifkin, G. (2008) How Harley Davidson Revs its Brand, viewed 9th Aug, 2008, http://www. strategy-business. com/press/16635507/12878 WISCONSIN. (2007) When it comes to mastering supply chains, Harley-Davidson—the iconic, Milwaukee-based motorcycle company—is among the best, WISCONSIN School of Business, viewed 9th Aug, 2008, http://www. bus. wisc. edu/grainger/harley-davidson/