Risk-Minimization with 360-Degree Market-Entry Strategy Reframe
Harley-Davidson (NYSE:HOG) is an American motorcycle manufacturer founded in 1903 in Milwaukee, Wisconsin, noted for a style of customization that gave rise to the chopper motorcycle style.
The company, of approximately 5,000 employees, markets its products worldwide.
It also licenses and markets merchandise under the Harley-Davidson brand, among them apparel, home decor and ornaments, accessories, and toys.
- Industry: Consumer Goods – Automotive.
- Harley Davidson’s Business Goals: Expand brand in sub-Saharan Africa as part of the executive-level agenda to grow business in high-growth markets – Nigeria being a key focus.
- Results: Got a realistic understanding of the opportunities for luxury motorcycles in Nigeria’s price-sensitive market. Developed a low-risk approach to expand into the market in the long-term.
Harley Davidson was looking to expand its business presence across Sub-Saharan Africa and entry into the Nigerian market, Africa’s largest economy, was a top priority.
After a few unsuccessful attempts to engage eager investors and distributors excited about the brand, Harley Davidson chose KPA to guide its entry into the luxury motorcycle market in Nigeria.
KPA arranged a 3-month long comprehensive market study of the automotive bike market in Nigeria to help Harley Davidson understand the market structure and meet the right partners to grow its sales channels in Nigeria.
The customized market intelligence and partnership-sourcing solution provided Harley Davidson with:
- Realistic and granular understanding of the luxury automotive industry in Nigeria.
- Competitive landscape analysis.
- An in-depth understanding of the needs of its target customer base.
- A localization strategy to fit its product to the intended target market.
- Supply chain analysis
- Pricing research to understand competitive pricing and assist with pricing strategies in a price-sensitive market.
- Assistance with visa and business visit requirements necessary for visit to Lagos, Nigeria.
- Shortlist of vetted distributors and resellers for partnership.
- A local tour of the city to get an in-person understanding of the local landscape and how it fits into their business priorities.
- Targeted face-to-face meetings with the top automotive distributors and resellers interested in the brand.
During the entire project, KPA’s dedicated client engagement manager provided strategic advice and actionable insights for Harley Davidson’s team to act on as they built their market-entry strategy for their products.
Outcome – A Complete Reframing of Market-Entry Strategy While Minimizing Risk
- Minimized Investment Risk While Gaining Local Insights For Long-Term Approach
Harley Davidson got a low-risk approach to understanding their opportunities in Nigeria’s price-sensitive market that was still recovering from a recession. It became clear that their approach in Nigeria had to be reframed. They realized that understanding the local market needs was necessary to hit their goals in Africa’s largest market. They decided to deprioritize the Nigerian market in the short-term while staying in touch with the top potential contacts for their long-term growth goals.