STRATEGIC MARKETING MANAGEMENT

MUHAMMAD AHTRAM XXXXX SAIFULLAH BABAR 2048

1. 2. 3.

4.

5.

6. 7. 8. 9. 10. 11.

What do you think, what are the objectives of the company What strategies are being followed by the company analyze the general environment of the company (economic, technological, socio-cultral, political legal) Describe the competitive intensity in the industry (porter's five forces model) Discuss the financial strength of the company, you must calculate the following ratios for last three years Identify opportunities and threats and develop EFE matrix Identify Strength and weakness and develop IFE matrix Develop competitive profile matrix Develop TOWS matrix Identify three alternative strategies Recommend the strategy for Harley Davidson

OBJECTIVES

To increase the market share through world wide dealars network. Maximization of profit To improve long term share holder value while protecting the brand.

STRATEGIES

Product development Focus growth Market development

GENERAL ENVIROMENT

Economic
advance booking concept protected Harley Davidson in recession period

Technological
Harley Davidson has strong and high invested R&D to adopt technical changes

Socio-culture
Harley Davidson has favorable socio-culture factor because well defined customers for their product )

Political and legal

Harley Davidson has flexible policies for political and legal environment of the countries

POTER`S FIVE FORCES MODEL

6. Identify opportunities and threats and develop EFE matrix

EFE Matrix (External Factor Evaluation)

Key External Factors Opportunities
1. European Market (which is four times larger than US market) 2. Women and younger riders are increasingly 3. Merger with other bike manufacturers are possible (for decreasing the competition) 4. Innovation (Designs / Technology) 5. Good revenue in accessories of bike

Weight 0.16 0.12 0.06 0.06 0.07 0.14 0.10 0.05 0.10 0.05 0.09 1.00

Rating 3 3 2 2 3 2 3 2 2 4 3

Weighted Score 0.48 0.36 0.12 0.12 0.21 0.28 0.30 0.10 0.20 0.20 0.27 2.64

Threats
1. Lower prices of competitors (Honda, Suzuki...etc) 2. Strong competition in Europe Market 3. New players in the industry 4. Economic Recession 5. Environmental protection laws

6. Harleys average buying age is 42 years old and increasing (Social)

Total

7. Identify Strength and weakness and develop IFE matrix

IFE Matrix (Internal Factor Evaluation)

Key External Factors Strength 1. Strong Brand name 2. High resale value of their bikes 3. Harley Davidson is major American heavyweight motorcycle manufacturer 4. Good financial position 5. Credit Facility Available (for dealers and consumer) 6. Strong distribution/dealership network 7. Effective Research & Development Activities Weakness 1. Losing the shares of domestic market 2. Not diversified 3. Declining Revenue 4. Higher price almost 50% more than its competitors 5. Quality issues Total Weighted Weight Rating Score

0.10 0.06 0.07

0.12 0.10 0.06 0.05

4 3
3 3 3 4 3

0.40 0.18
0.21 0.36 0.30 0.24 0.15

0.10 0.07 0.10 0.07 0.10 1.00

2 2 2 2 3

0.20 0.14 0.20 0.14 0.30 2.82

8. Develop competitive profile matrix

Competitive Profile Matrix (CPM)

Harley Davidson Honda Yamaha

Critical Success Weight Rating Score Rating Score Rating Score Factors 1. Dealer System 0.05 4 0.2 3 0.15 2 0.1 2. Advertising 0.15 4 0.6 2 0.3 3 0.45 3. Quality 0.15 3 0.45 3 0.45 3 0.45 4. Management 0.05 2 0.1 4 0.2 2 0.1 5. Price 0.10 2 0.2 3 0.3 3 0.3 competitiveness 6. Financial Position 0.10 3 0.3 4 0.4 2 0.2 7. Loyalty of 0.15 3 0.45 2 0.3 2 0.3 customers 8. Market Position 0.25 3 0.75 2 0.5 2 0.5 Total 1 3.05 2.6 2.4

9. Develop TOWS matrix

TOWS Matrix Internal Factor
STRENGTHS 1. Strong Brand name 2. High resale value of their bikes 3. Harley Davidson is major American heavyweight motorcycle manufacturer 4. Good financial position 5. Credit Facility Available (for dealers and consumer) 6. Strong distribution/dealership network 7. Effective Research & Development Activities S-O Strategies (maxi maxi) i) Expand production in Europe & Asia (S1, S2, S4, O1) WEAKNESSES 1. Losing the shares of domestic market 2. Not diversified 3. Declining Revenue 4. Higher price almost 50% more than its competitors 5. Quality issues

External Factor
OPPORTUNITIES 1. European Market (which is four times larger than US market) 2. Women and younger riders are increasing 3. Merger with other bike manufacturers are possible (to decrease the competition) 4. Innovation (Designs / Technology) 5. Good revenue in accessories of bike THREATS 1. Lower prices of competitors (Honda, Suzuki, Yamaha...etc) 2. Strong competition in Europe Market 3. New players in the industry 4. Economic Recession 5. Environmental protection laws 6. Harleys average buying age is 42 years old and increasing

W-O Strategies (mini maxi) i) Launch new bike with low price + good quality (sport bike look) (W1, W2 W5, O1, O2) ii) Give some free bike accessories items with bike to attract consumers. (W1, W2, W3, O1, O2) W-T Strategies (mini - mini) i) Reduce expenditures from advertisements & promotions campaign, also reduce workforce. (W1, W3, W4, T1, T2, T4) ii) Effectively implement continuous improvement, just in time to reduce cost from operations. (W5, T1, T2, T4)

ii) Effective advertisement in US market to sell bikes to women & younger riders. (S1, S2, S3, S4, O2) S-T Strategies (maxi mini) i) Fulfill the maxi requirements of various environmental issues, to build a positive public Image (S3, S4, T5). ii) Give more financial facilities to European Market to gain the market shares. (S5, T2)

RECOMMENDATION

Expand European and Asian market. Increase the sales of Buell sport bike and HarleyDavidson to younger customers and females. Horizontal diversification: acquires or develop new products that could appeal to its current customer groups even though those new products may be technologically unrelated to the existing product lines . Concentric diversification: Bring in new recreational vehicles.