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Communication Plan

Harley-Davidson has been operating in the sale of motorcycles for a long time. The company has been quite effective as far as its marketing is concerned. The company’s touring bikes have been said to be the best sellers worldwide. For instance, in 2014, the company established its Project Rushmore which encompasses a customer-driven package that aims at enhancing designs in order to generate the renowned Harley luxury tourer with extra power. Other structural components include enhanced ergonomics, better brakes and upgraded infotainment having voice-recognition software. Despite these structural enhancements, the model also has new physical appearance. The new 2014 touring model is also characterized with low profile cast, aluminum wheels, that are lighter than former units, as well as sophisticated front lenders (Scott, 2015). Nonetheless, these factors have not shielded the company from competition with other international players. One of the ultimate mechanisms that the company has adopted is the selling off-road vehicles.

Purposes

Harley-Davidson is in the middle of making protracted sales despite having been experiencing a consistent rise in sales over time. From the recent decline in the sales with a 1.4 percent globally in 2014 and a subsequent drop of 2.5 percent in US over the same time, the company has resolved to reduce its total shipment guidance by a 4 percent to work between a range of 265,000 and 270,000 units of motorcycles. One of the main challenging scenarios that could be associated with the company’s decline is its insistence on constant price levels. Subsequently, the company provided to protect its margins unlike majority of players in the industry, who have resolved into discounting. During the same period, when Harley-Davidson experienced a sharp decline in sales, its counterpart Polaris Industries from India had a 154 percent gains in the sale of motorcycles. (Scott, 2015).

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Structure

Harley-Davidson’s main consignment product has been the street bikes that have been highly favored by its esteemed customer base including the army riders. Apart from the sale of the motorcycles, the recurrent challenging situation of falling motorcycle market as a result of declining international market due to competition, Harley-Davidson has resolved into providing riding training to the army and other players at a cost of about $300. However, the company has also adopted dealership providing the partakers with the opportunity to engage in the riding training, while ultimately refraining the training fee if the riders buy one of them. These moves are made towards enhancing sales revenue of the company. However, even with these structural changes in the marketing, competitions has pushed its revenue further downwards (Scott, 2015).

This has led to another critical resolve to change its market focus on motorcycles, but rather gear up towards off-road vehicles to increases revenue generation and outwit external adversities posed by stiff competition. These advances are based on research by the company that discloses an unexploited potential in the off-road vehicle market (Scott, 2015).  Every move that the company makes is focused on promoting its market leadership and competitive capacity.

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Relationship

Harley-Davidson has been characterized with relatively good internal relationship with its employees. However, its cost leadership in the industry has been making it experience stiff rivalry from its competitors. The company is also enjoying a potential loyal customer base that has been instrumental in its sustained growth.  In particular, the Polaris Company of India has been manufacturing recreational vehicle and distributing them in competitive market shared with Harley-Davidson. This market sharing premix has led to increased rivalry between the two players. Recently, the market for motorcycles has been declining gradually due to multiple factors including entry of competitors in the market. This has threatened Harley-Davidson, thus compelling it to seek alternative measures to combat the problem (Ryan, 2014). While seeking to enhance its performance capacity relative to other direct and indirect competitors, the company has swept into the off-road vehicle market as a matter of distinction while attempting to spearhead a revolution in the market and retain its competitive capacity.

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Helpful Mechanisms

The success of Harley-Davidson relied on many factors, mainly based on technological capacity and its leadership competence which has been instrumental in developing a solid competition base. The Polaris, which has been a major competitor of Harley-Davidson, has also been distributing off-road vehicles though at a lower scale. Its industry (Polaris’) has been very attractive to wider growth investors. The extension of off-road vehicles in Polaris network has not been well established, neither its co-players in the industry. Consequently, Harley-Davidson has sort to exploit the new market through diversification towards upholding its market dominance despite dwindling sales volume in the motorcycle market segment due to competition. The off-road vehicles have been a potential growth point for the company (Ryan, 2014).  Some of the mechanisms drawing upon this development are high customer loyalty,  long-stimulation of clients to purchase its product, and technological upgrade that has facilitated the growth of the company through diverse projections.

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Finally, the main reward for the adoption of selling off-road vehicles by the company is that  it has been considered to raise the nominal returns to investments. As a result, this process is intended to engage high capital formation process that will see enhanced product development over its competitors, besides enabling competitive diversification based on demand. This will in turn raise the company’s resilience to changes in the production cycles as well as the market performance mechanisms in the local and international market (Ryan, 2014).  The basic decision-making organ that has seen the advanced capacity of the company to withstand stiff competition is based on ideal production and marketing processes.