14/17/2015

2

Socio cultural and economic factors that Harley Davidson should take into consideration

Presented toSAMUEL KOFI AFFUM(MUCG)

by

Paa Kantu Quaye - MBAA/WT/150009Samuel Ampim Hesse(Rev Fr) -MBAF/WT/158299Stephen Oglie Tetteh - MBAF/WT/158334Roger Wepia Amipare – MBAH/WT/150494Koranteng Aaron Baah – MBAM/ WT/147894

Group 8

4/17/2015

3

Introduction

• Harley Davidson is a motor bike company primarily based in the USA. They like every other company is faced with Socio-cultural and Economic factors that affect the way it takes it decisions

4/17/2015

4

Socio-cultural Factors

4/17/2015

5

Socio-cultural Factors

What they are;• Consumer lifestyles, beliefs, and values• Business norms and approaches• Cultural and social norms• Languages

4/17/2015

6

Annual House Hold Income

INR(US$)

Number of Households

Typical Occupations

Luxury Products Luxury Services

Luxury Assets

1.0 million to 5.0 million ($22,280 to

$111,400.00)

280,000 Service Industry

Professionals

Low-ticket items such as accessories, wines and personal

care Items

Spas, Infrequent fine dining

-

5.0 million to 10.0 million ($111,400 to $222,800.00)

200,000 Corporate Executives;

Self-employed professionals

Watches, Apparel, wines and Spirits,

Personal care items

Travel, Frequent

Fine Dining, Hotels, Spas

-

10 million to 50 million

($222,800 to $1,114,000.00)

120,000 to 150,000

Medium-sized Enterprise owners;

traditionally wealthy CEOs;

Top Professionals

All All Cars, Yachts,

Real Estate,

Artwork

EXHIBIT 4 per caseTYPICAL CONSUMER PATTERNS IN URBAN INDIA: METROS AND TEIR

Source: AT Kearney; “The Indian Luxury Market: A Snapshot (Part I)” India Biznews, May 27, 20114/17/2015

7

• High-net-worth individual is a person with a high net worth. In the western, and primarily American, private banking business, these individuals typically are defined as having investable finance (financial assets, excluding primary residence) in excess of US$ 1million

4/17/2015

8

EXHIBIT 3 per caseHIGH-NET-WORTH INDIVIDUAL POPULATION BY COUNTRY, 2010

COUNTRY YEAR GROWTH %2009 2010

United States 2,866,000 3,104,000 8.3

Japan 1,650,000 1,739,000 5.4

Germany 862,000 924,000 7.2

China 477,000 535,000 12

United Kingdom 448,000 454,000 1.4

France 383,000 396,000 3.4

Canada 251,000 282,000 12.3

Switzerland 222,000 243,000 9.7

Australia 174,000 193,000 11.1

Italy 179,000 170,000 -4.7

Brazil 147,000 155,000 5.9

India 127,000 153,000 20.8

Source: World Wealth Report by Capgemini and Merrill Lynch Wealth Management4/17/2015

9

EXHIBIT 5 per case INDIAN LUXURY CONSUMERS

LUXURY BUYERS BY PROFESSION

PERCENTAGE LUXURY BUYERS BY AGE

PERCENTAGE

Industrialist 49 25-34 53

Corporate 29 35-44 32

Self-Employed 9 44-50 and above 15

Information Technology Business Process

Outsourcing

8

Professional 5

Source: AT Kearney; “The Indian Luxury Market: A Snapshot (Part I)” India Biznews, May 27, 20114/17/2015

10

• Exhibit 3, 4 and 5 all show that there are people in India whose luxury lifestyle puts them in the target market of the company.

• There is a growing young population with disposable income. These young professionals also take biking as a hobby. People who fall within the age of 25 to 65 have developed high interest for the bikes and were jumping on for the “look and ride”

• We must however not forget that majority of the Indian Bike Market is for commuter bikes. This is not the target of the company

4/17/2015

11

Economic Factors

4/17/2015

12

Economic Factors

• GDP size and growth• Income distribution• Industrial infrastructure• Natural resources• Financial and human resources

4/17/2015

13

• The GDP of India from 2009 to 2012 shows an increasing growth rate, even though there are occasional dips.

4/17/2015

14

• High-net-worth individuals in the country was growing rapidly. In 2010, it grew by 20.8%. This is shown in the exhibit 3

• Rise in market for luxury goods in 2011 by 20% even when there was economic slowdown since 2010. “A Look St Why India’s Luxury Market Is Exploding,” Business Insider, November 2011

• A substantial number of households( 120,000 to 150,000)have high annual incomes ($222,800 to $1,114,000)

DISTRIBUTION OF INCOME

4/17/2015

15

INFRASTRUCTURE

• The Harley Davidson bikes are high speed beasts and can move from 0-100km/hr. Poor road network and stray animals does not encourage you to use a bike from 0-100km/hr

• The availability of specialized fuel, such as 97-octane in selected towns was a limiting factor

4/17/2015

16

Financial and human resources• There was lack of trained mechanics in certain areas of India and very

high priced spare parts. So servicing the bikes became a problem. People either had to transport the bikes over long distances to the mechanics or fly the mechanics to where the bike is.

• Nonetheless India has a large population that will give the company access to a large work force for general factory work in their assembling plants

4/17/2015

17

CONCLUSION

The socio cultural and economic situations in India affects Harley Davidson in diverse ways. In this

regard, A critical attention to each one of them will help the company to

get the best out of every situation.

4/17/2015

184/17/20154/17/2015