Harley Davidson

• Mishal • Ramesh • Satyendra • Sreekumar • Suraj • Vikash

Mission: We fulfill dreams through the experience of motorcycling, by providing an expanding line of products & services in selected market segment.

Atlanta

Tokyo

Toronto

Hamburg

UK

Sydney

•Type

Public-1984, NYSE-1987

•Founded

1903

•Founder

William S. Harley Arthur Davidson Walter Davidson William A. Davidson

•Headquarters

Milwaukee, Wisconsin, USA

•Key People

James L. Ziemer (CEO) Thomas E. Bergmann (CFO) James A. McCaslin (COO) Syed Naqvi (President, HDFS)

•Industry

Recreational Vehicles

•Revenue

▲ 8.8 Billion USD (2008)

•Employees

9,700 (2006)

•Subsidiary

Buell, HDFS

•Website

www.harley-davidson.com

• 1901- Genesis, William S Harley plans for 116cc Pedal cycle engine • 1903- Developed power cycle with Arthur & Walter Davidson at Milwaukee's, Wisconsin • 1907- Harley-Davidson motor Company Was Incorporated • 1913- Famous ‘V-Twin’ Engine built. Produced >16,000 units • 1917- WW1, 20,000 units to U S Military • 1920- Largest Producer, Dealers in 67 nations, >28,000 units • 1933- Manufactured 3wheeler goods carrier to Survive • 1942- WW2, 90,000 units to U S Military • 1969- Acquired by American Machinery & Foundry Co. (AMF) • 1970’s- Labour Strike & Japanese competition, on the brink of bankruptcy contd….

•1981- Acquired by group of 13 investors, led by William G Davidson •1990- Launched Fat Boy, became Market Leader •1990’s- Acquired Buell motors & entered Sports segment •1998- Claims of Stock Price Manipulation •2002- The famous ‘V-ROD’ •2007- Strike of Workmen •2008- Acquired MV Agusta for $109 mn •2008- Opening of Harley-Davidson Museum, 12th july

Product Line Motorcycles

>$6,999 Men's

>$11,999 >$15,899 Accessories Womens Kids

>$14,999 Gifts Items

FIRE DEPT.

Income over years 1200000 1000000 800000 600000

Net Income(in US $)

400000 200000 0

97

99

01

03

05

07

Competition !!!!

• • • • • • • • •

BMW, Germany 02.3% Daelim, S. Korea02.6% Ducati, Italia 00.9% Honda, Japan 21.7% Kawasaki, USA 13.6% Polaris, Britain 01.5% Suzuki, Japan 12.6% Yamaha, Japan 10.0% HDMC, USA 34.8%

2007

HDMC

INDUSTRY

Median age

44.4 yrs.

32.6 yrs.

Median Household Income $80,700

$42,500

Male

95%

90%

Married Occupation

57%

49%

Blue Collar

53%

55%

White Collar

40%

31%

High School Graduate

90%

75%

College/Degree

44%

38%

Education

52%

Owned Harley-Davidson® motorcycle previously at any point during lifetime

33% Owned a competitive motorcycle previously 15% First motorcycle purchased

The Indian Connection •

Meeting with Mr. Kamal Nath (Minister of Commerce and Industry) on April 2007

•

13th April 07 relaxation of emission norms

•

Quid-pro-Quo with American government

•

Initial sales target 500 units for 3 years

S W O T analysis Strengths •American company •Huge fan following •Range of good products

Opportunity •Large untapped market •Booming tourism sector •Movement of customers towards high end products

Weakness •Bad boy image •High cost •Poor emission records

Threats •Competitors •Restrictive government policies •Time

HARLEY DAVIDSON ON INDIAN ROADS

Model

US $

Indian Rs (approx)

$6,999

5,97,000/-

Dyna®

$11,999

10,23,000/-

Softtail®

$15,899

13,55,000/-

VRSC®

$14,999

12,80,000/-

Touring®

$16,999

14,50,000/-

Sportster®

•Prices have been arrived at by calculating the various surcharges and import duty amounting to 103% of original rate (www.thekneeslider.com) •Exchange rate – US $ (in Rs.) 42.79/- as on 30/07/2008 •Price in US $ courtesy –www.harley-davidson.com

Facts & Figures from www.harley-davidson.com

THANK

YOU