BRAND CASE STUDY HARLEY DAVIDSON KRUG by IOANA LUTIA
Contents Introduction……………………………………………………………………......... 4 HARLEY DAVIDSON....................................................................................................... 5 About.................................................................................................................................5 Product..............................................................................................................................5 Place.................................................................................................................................. 5 Price.................................................................................................................................. 5 Promotion........................................................................................................................ 5 The Logo........................................................................................................................... 6 Vision................................................................................................................................ 6 Values ............................................................................................................................... 6 Mission.............................................................................................................................. 6 Quality mission................................................................................................................ 6 Customer profile.............................................................................................................. 7 Product ............................................................................................................................. 8 Summary............................................................................................................................9 KRUG.................................................................................................................................... 10 About................................................................................................................................. 10 Product.............................................................................................................................. 10 Place................................................................................................................................... 10 Price................................................................................................................................... 10 Promotion......................................................................................................................... 10 The Logo ........................................................................................................................... 11 Vision................................................................................................................................. 11 Values ................................................................................................................................ 11 Mission .............................................................................................................................. 11 Customer profile............................................................................................................... 12 Product……………………………………………………………………...……… 13 Proposal 1 : Krug Notebooks ............................................................................................. 14 The Logo..............................................................................................................................14 About.................................................................................................................................. 14 Product Design ……………........................................................................................... 15 Customer profile .............................................................................................................. 16 Conclusion : SWOT.......................................................................................................... 17 Proposal 2 : Krug Bar............................................................................................................ 18 The Logo............................................................................................................................. 18 About ................................................................................................................................. 18 Product Design.................................................................................................................. 19
22
Contents Proposal 3 : Krug Tableware…………………………………………………………20 The Logo.......................................................................................................................... 20 Product Design............................................................................................................... 21
23
Introduction The objective of this report is to use a variety of tools to analize the development and efficiency of brand extensions in general, as well as to propose 3 such extensions for the champagne manufacturer, Krug. This process includes building two brand case studies : one for the Harley Davidson Motorcycles company and one for Krug.
4
HARLEY DAVIDSON About
Product
Price
Founded: 1903, Milwaukee Market level: Premium Target customer: Men 35+ Competitors: BMW, Suzuki
HD Motorcycles and parts HD Motorclothes HD Collectibles HD Household Items HD Financial Services HD Museum HOG Magazine HD CafĂŠ in Las Vegas
Motorcycles: approx. $7000 - $30000 Motorclothes: approx. $50 - $690 Gifts and Collectibles: approx. $3 - $100 Household Items: approx. $1 - $300
Place
Promotion
Independent stores
HOG group, Facebook
Vision
The Logo
We fulfill dreams inspired by the many roads of the world by providin extraordinary motorcycles and customer experiences. We fuel the passion for freedom in our customers to express their own individuality. The famous Harley Davidson logo has been left unchanged for most of the company’s brand extensions. The only 2 exceptions are the Harley Owners Group and the Harley Davidson Cafe in Las Vegas (see page 8).
Values -Tell the truth -Be fair -Keep your promises -Respect the individual -Encourage Intellectual Curiosity
Mission We ride with our customer and apply this deep connection in every market we serve to create superior value for all of our stakeholders.
Quality mission Customers for life...Harley Davidson values the deep emotional connection that is created with our customers through our products, services and experiences.We are fueled by our brand loyalty and trust in that our customers place in us to deliever premium quality and the promise of a fulfilling lifetime ownership experience.
6
Customer profile Name: John Age: 53 Upper Middle Class Preston, Lancashire Full nest 11 Previous owner of 3 Yamaha bikes.
7
Product HD Motorcycles & parts HD Motorclothes HD Collectibles HD Household Items HD Financial Services HD Museum HOG Magazine HD Café in Las Vegas
Sportster, DYNA, Softail, V-Rod, Touring, CVO, Trike as well as parts for all these models.
Men’s and Women’s Riding Gear; Men’s, Women’s and Kids Casual Wear
Occasion cards, Patches, Knives, Figurines, Holiday items, Gift Cards
Luggage, Home decor, Glassware, Bar furniture, Games, Outdoor gear, Pet supply items
HD Finances offer flexible repayment options, H-D Insurance services, H-D Visa Signature Card
Featuring the history, the motorcycles, the archives and a dining area (in Milwaukee).
Published 5 times a year. Riding stories, product info, HOG news, member stories etc.
The Harley Davidson Las Vegas Cafe opened on September 27,1997. Celebrities attended.
8
Summary To sum up, Harley Davidson Motorcycles is a top end brand that has diversified its product range by going into many different directions. All their product extensions share the same vision as the main brand, hence their strong appeal to the target market (which is the same for the extensions as it is for the main product). The extended range of products allows the consumer to improve his / her Harley Davidson experience.
9
KRUG About
Product
Price
Founded: Joseph Krug, 1843 Market level : Premium Target customer: mostly 21 - 24 year-olds with dispensable incomes Competitors: Moet et Chandon, Dom Perignon
Krug Grand Cuvee Krug Rose Krug Vintage Krug Collection Krug Clos du Mensil Krug Clos D’ambonnay
£50 - £ 1700 (depending on quantity,
Place
Promotion
age and packaging)
High end department stores Krug’s doesn’t usually Professional Wine advertise. distributors
Vision
The Logo
LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy.
Values - Be creative and innovate - Aim for product excellence - Bolster the image of our brands with passionate determination - Act as entrepreneurs - Strive to be the best in all we do
Mission The mission of the LVMH group is to represent the most refined qualities of Western “Art de Vivre� around the world.
11
Customer profile Name: Zhang Age: 23 Upper Class London, UK Bachelor Vice President at Jiangling Motors
12
Product Krug Grand Cuvee Krug Rose Krug Vintage Krug Collection* Krug Clos du Mensil Krug Clos D’ambonnay
* Krug Collection is “time’s second revelation of Krug Vintage. A very limited number of bottles of each Krug Vintage are kept in ideal conditions at the House of Krug cellars.”
13
Proposal 1 : Krug Notebooks The Logo NOTEBOOKS
About Customer
Product
Price
20-30 year-old individual with high disposable income who is fond of the Krug experience.
Five unique notebooks inspired by the five Krug Champagnes
Premium, to maintain exclusive image. (approx. ÂŁ70)
Market level
Place
Premium
At the House of Krug, in Reims In high-end department stores (e.g. Selfridges)
Competitors
Promotion
Smythson
14
- Krug Notebooks window display at Selfridges in the first two weeks announcing the product arrival. - Video campaigns inside the store promoting the Krug vineyard in Reims, making the customers aware of the possibility to live the Krug experience.
Product Design
NOTEBOOKS
NOTEBOOKS
NOTEBOOKS
NOTEBOOKS
15
NOTEBOOKS
Krug Grande Cuvée is the archetype of Krug’s philosophy of craftsmanship and savoir faire: A blend of around 120 wines from ten or more different vintages, some of which may reach 15 years of age. Blending so many vintages gives Krug Grande Cuvée its unique fullness of flavours and aromas, its incredible generosity and its absolute elegance - something impossible to express with the wines of just a single year. Its exceptional finesse is the result of a stay of at least another six years in the cellars. Over twenty years are needed to craft each bottle of Krug Grande Cuvée: the first prestige cuvee re-created each year, beyond the very notion of vintage.
Customer profile Name: Jessica Age: 56 Upper Class London, UK Empty nest 1 Living with her husband (household chief income). Has a son (age 31) and a daughter (age 34).
16
Works at home (manages her husband’s company’s finance). Is very tidy and organised. She enjoys going to the market to buy fruits and vegetables. She usually buys healthy foods. She cooks for her husband 4-5 times a week.She reads philosophy books. Her favourite holiday was in Greece, in 2007). She drives a Jaguar. She has a dog named George.
Conclusion : SWOT Strenghts
Opportunities
- premium quality, exclusive image
- improve Krug experience
Weaknesses
Threats
- high prices
- premium brands specialised in stationary products including notebooks
17
Proposal 2 : Krug Bar The Logo
About Customer
Product
Price
20-30 year-old individuals with high disposable incomes
Day and night cocktail bar serving Krug champagnes, Krug champagne based cocktails and mainstream cocktails.
Premium, to maintain exclusive image.
Market level
Place
Premium
In London, near Sloane Street
Promotion
Competitors Moet et Chandon Champagne bar, Asahi Bar
18
-Opening event advertised at the entrance with 1 week before the Grand Opening -However, I believe that waiting to be discovered can also be an option for this bar, since Krug doesn’t advertise very much
Product Design
Bar plan -lounge area -bar with stools
Design -dark wood panelling -white paint/panelling -dark wood/ marble (light or dark) flooring -warm dim lights near key items and powerful lights from above to avoid too much darkness -black&gold/ black&brown furniture -black/ dark brown bar
19
Proposal 3 : Krug Tableware The Logo TABLEWARE
About Customer
Product
Price
20-30 and 45+ year-old individuals with high disposable incomes
Tableware including plates, glasses (champagne and others), cutlery and ice supports.
Premium, to maintain exclusive image.
Market level Premium
Place
Promotion
In high-end department stores (e.g. Selfridges & Co., Harrods)
Competitors Royal Buckingham
20
- Krug Tableware window displays in the first two weeks announcing the product arrival. - Photo/Video campaigns inside the store
Product Design
Items -3 set of plates -complete set of cutlery -champagne glassware -water and whiskey glasses -steel ice support
Design -white & brown porcelain and bronze layer for the plates -silver cutlery -crystal glasses *Note : the tableware design should either be simple and clean or elegant and elaborate
21