Executive Summary
The LiveWire, an e-motorcycle launched by Harley Davidson in its electric motorcycle range, was part of a strategic plan to target a new, younger, more environmentally aware demographic while capitalizing on the brand’s heritage. At first, marketing strategies signaled innovation but needed to align with changing consumer preferences, especially among the target group. As the price set up for the Livewire motorcycle was considered premium, market accessibility was affected by price affordability barriers. The alignment of the target market led to the realization of the discrepancy between buyer demographics, prompting the formulation of specific marketing platforms.
The paper aims to present a comprehensive assessment of a LiveWire project by Harley-Davidson for electric motorcycles. This analysis used the following data: market reports, consumer surveys, some industry publications, official statements, and Harley Davidson’s financial reports. The study’s conclusions identify key issues, including tactical marketing, pricing, target market, promotion, and competitive environment. Although the LiveWire marketing plans at the start seemed revolutionary to fit changing consumer perceptions, especially among younger and nature-friendly people, they needed to be in sync with this particular group. In conclusion, the study demonstrates the significance of keeping pace with customer preferences, deploying precise pricing approaches, and developing continuous discoveries for overcoming challenges and improving market performance. By exploiting these findings and delivering the suggested strategies, Harley Davidson can strengthen LiveWire’s competition level and eventually win a significant market share in the EV motorcycles.
Introduction
“The Harley Division Company developed electric motorcycles, including the LiveWire model, to rally a generation of riders and attract new ones. Starting in September 2019 and ending in May 2022, LiveWire’s story is an exciting path on which we can consider what affected its sales performance and its ultimate failure (Singh, 2019). LiveWire’s launch marked the beginning of Harley Davidson’s venture into the electric vehicle market, an area of interest that pursues sustainability and technological advancement. On the other hand, despite the cross-channel marketing approach and the youth-centered focus of the company, the product could have resonated with its young and wealthy target market. It highlights pricing strategies, market positioning approaches, consumer insights, dealers’ insights, and an overview of the competitive environment in the electric motorcycle market.
The fundamental purpose of this evaluation is to critically explore the reasons behind LiveWire’s relatively low sales in the electric-powered bike market. Specific objectives are comprised of the following: evaluating how effective Harley-Davidson’s marketing strategies are in communicating LiveWire; the impact of the pricing decisions on the extent of market penetration and customer adoption; and analyzing the degree of connection between LiveWire’s features and benefits and the preferences of the target audience. The paper that I am commenting on raised a few issues that, in some instances, contradicted some of the arguments posed. The study is based on the information acquired from the case study, academic articles, and marketing materials, which may be affected in real time by the changing market trends and the firm’s undisclosed strategies. Moreover, possessing confidential information on Harley-Davidson’s strategy may help address specific issues.
Results
Marketing Strategies
Harley-Davidson’s decision to place Livewire on the high-end motorcycle market was a step forward towards its innovation and ecological significance. Another model was developed, boasting comprehensive innovation and outstanding performance. This was a unique marketing strategy, as the company aimed to present itself differently from others and thus attract a more environmentally friendly audience. Nevertheless, they needed help transforming the positioning benefit into the affordability expectations of the younger riders, who sometimes had to sacrifice a large amount of money compared to traditional entry-level motorcycles and other electric competitors.
Target Market Alignment
Target market alignment is an essential marketing attribute in Harley Davidson’s LiveWire venture, which is necessary for future success. The idea is based on coming up with the targeted customers’ demand, acceptance, and behavior and then doing all the marketing and product compliance per the requirements (Camilleri, 2017). LiveWire had a set of determinants, such as target market alignment with the case. First, Harley-Davidson endeavored to approach the younger market of eco-friendly riders with its new line of LiveWire electric motorcycles. The age group was a deviation from the typical class of customers that the company had always served: mature, veteran motorcyclists. However, the reality of the consumer reaction revealed a discrepancy between the product’s relevance and the outlined target audience.
The age group and target group of buyers of the LiveWire bikes turned out to be different from what the company planned to buy. To align with its target market, Harley Davidson should have conducted a thorough market segmentation analysis before that (Brian, 2015).
Competitive Positioning
For Harley Davidson’s LiveWire, the company’s competitive positioning was an essential facet of its market strategy (Bosch & Rossouw, 2021). The company competed with several competitive motorcycle manufacturers and other reputable electric motorcycle companies such as Zero Motorcycles Inc. Three crucial points required scrutiny to optimize the situation, with product differentiation mainly taking the leading role (Edwards, 2014). As a result, LiveWire needed the features and advantages that made it different from similar products on the market. This would have involved integrating ground-breaking technology, high benefits like range and fast charging, and an attractive design that appealed to the target customers. Amplifying those would have ensured Live Wires distinguished itself from other products.
Furthermore, unlike its competitors, LiveWire should present its value proposition. This entailed emphasizing environmentally friendly, cost-reducing features and providing superior riding comfort (Samuli Patala et al., 2016). By displaying these advantages, Harley-Davidson could have facilitated acquiring and retaining clients who wanted these attributes. The other critical part is positioning the product well in the market. Targeting sub-segments of the electric motorcycle market where LiveWire could have had an advantage would have been crucial. The area to which urban commuters, adventure riders, or tech enthusiasts can be targeted and the provision of custom-tailored messages and specific features as a competitive advantage compared to the simpler ones could be achieved.
Discussion
Electrification was Harley-Davidson’s key marketing strategy in the early phase when the company was trying to enter the electric motorcycle market. What needed to be corrected was the need to align these strategies with the changes happening in the market. Harley-Davidson needs to conduct appropriate market research to strengthen its credibility in the market and understand customers’ expectations and preferences towards electric motorbikes (Lewin, 2021). This, in turn, would have led the company to devise tailored, specific marketing campaigns that would speak to each segment’s particularities.
SWOT ANALYSIS
Strengths
Harley Davidson’s existing brand image and extended heritage in the motorcycle manufacturing industry became a robust platform for the project LiveWire. Nevertheless, the company’s success in this area proved challenging when it was transferred to the electric motorcycle environment, where brand loyalty and reputation still needed to be improved in conventional combustion motorcycles. The brand’s technical expertise and innovation potential were evident in LiveWire’s design and functions. However, the challenge was communicating this expertise and making it more potent than other products.
Weaknesses
The small localized market in the electric motorcycle sector had been a significant weakness that directly impacted LiveWire Company’s performance. Harley-Davidson needed help to tie marketing campaigns to new customer tastes successfully, and, as a result, it found itself in a discoordination between LiveWire’s features and target audience expectations. The top pricing strategy combined with the need for more pricing affordability to the market (especially among the younger and highly price-sensitive clients who are fast becoming a growing segment in the electric vehicle market) put EV manufacturers in a tricky situation.
Opportunities
Harley-Davidson had several chances to enhance Live Wires’ performance. The increasing need for electric vehicles and the eco-friendly transport system market brought a favorable trend in which the company can reap the benefits. The possible entry to the market of emerging countries with an increasing electric motorcycle demand could have created new growth prospects. Collaborations with technology companies for innovation provide the potential to maximize the popularity of LiveWire and also stay competitive in the market. Besides, adding cheaper electrical models that fit consumers’ purchasing aims and trends might also have led to the growth of Harley-Davidson’s customers and the market size.
Threats
Intense competition from established and emerging electric motorcycle manufacturers significantly threatened LiveWire’s success. Competitors were quick to innovate and introduce competitive offerings, challenging Harley Davidson’s market position. Regulatory changes impacting the automotive and electric vehicle industries also posed threats, requiring adaptability and compliance from Harley Davidson. The potential backlash from traditional motorcycle enthusiasts over the shift to electric vehicles added another challenge, necessitating effective communication and strategic positioning of LiveWire.
Conclusion
The case study into Harley-Davidson’s LiveWire venture demonstrates the complexity and difficulties that may arise when entering the electric motorcycle market. Through a thorough appraisal of marketing tactics, pricing decisions, target market suitability, advertising initiatives, and competitive positioning, insightful remarks are made about the factors affecting LiveWire’s success. Although the brand’s audacious marketing techniques displayed innovation, there needed to be more suitability in the plans for changing customer preferences, especially for the targeted youth and the nature-loving population. The pricing strategy placed LifeWire in a niche premium category; however, practical price barriers limited access to a broader market segment. Marketing segmentation enabled matching the target and actual markets, thus emphasizing the value of the integrated marketing strategies and product range. Harley Davidson can integrate these data-driven recommendations to make informed decisions and restore the brand’s sales and stability.
References
Rajesh Kumar Singh. (2019, October 7). Harley needs help to fire up a new generation of riders with an electric bike debut. Reuters. https://www.reuters.com/article/idUSKBN1WM0YJ/
Mark Anthony Camilleri. (2017, December). Market Segmentation, Targeting, and Positioning. ResearchGate; unknown. https://www.researchgate.net/publication/319085560_Market_Segmentation_Targeting_and_Positioning
Brian, J. (2015). Segmentation Marketing: A Case Study on Performance Solutions Group, LLC. https://dc.etsu.edu/cgi/viewcontent.cgi?article=1294&context=honors
Edwards, J. (2014, September 12). Diversification Strategies. Opentextbc.ca; BCcampus. https://opentextbc.ca/strategicmanagement/chapter/diversification-strategies/
Bosch, Z. J., & Rossouw, D. (2021, April 30). Strategic positioning of a motorcycle manufacturer during the Fourth Industrial Revolution. ResearchGate; AOSIS. https://www.researchgate.net/publication/351434845_Strategic_positioning_of_a_motorcycle_manufacturer_within_the_Fourth_Industrial_Revolution
Samuli Patala, Jalkala, A., Joona Keränen, & Risto Soukka. (2016, April). Sustainable value propositions: Framework and implications for technology suppliers. ResearchGate; Elsevier BV. https://www.researchgate.net/publication/299597856_Sustainable_value_propositions_Framework_and_implications_for_technology_suppliers
Lewin, W. (2021). The Sound of Silence Applying Disruptive Innovation in the Electric Motorcycle Industry. https://www.diva-portal.org/smash/get/diva2:1565853/FULLTEXT01.pdf
Allcot, D. (2021, November 15). What Are Tiered Pricing Models? Uschamber.com; CO- by U.S. Chamber of Commerce. https://www.uschamber.com/co/start/strategy/tiered-pricing-models
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