Harley-Davidson: Chasing a New Generation of Customers

Harley-Davidson: Chasing a new generation of customers.

The American manufacturer of motorcycles – Harley-Davidson (HD) is known for having a nearly 45% market share of the US market in 2007. Harley-Davidson offered products in both the heavy-weight and the sport bike category. Harley-Davidson’s competitors were based mainly in Europe and Japan. Their main customers were “baby boomers” whose age was approaching the line when they would stop buying their products. Although Harley Davidson had record sales prior to the year 2007, they needed to take a new action and explore new categories of customers such as “young adults” and women. The obstacles that were in the way were the image of a brutal man, possibly involved in illegal activities and outdated, not in high demand looks of manufactured models (use of chrome), as well as the distorted perception of price range. This set of problems explains Harley Davidson’s narrow target group and a possible future drop in demand.

Objectives:

Sustainable growth

Introduce a new line of products that will attract the “younger adults” target group and ensure that units are available

Keep entering developing markets with a new product line

Offer new promotions to own Harley Davidson that will respond to new target groups such as “young adults and women”

Information is needed for creating new solutions and marketing strategies: target customer analysis, environmental analysis, SWOT analysis

SWOT analysis

Founded in 1903 by William Harley and Davidson Brothers. The company manufactures heavyweight bikes and sport bikes. They specialize in manufacturing motorcycles designed for cruising

The Strengths are as follows:

The only American brand that manufactures heavyweight bikes.

Has a strong brand.

Expansive membership and belonging to the groups in the US and around the world.

Good relationship with suppliers, government representatives, all who they have a contact with.

Strong relationship with employees.

Regular participation in charity events.

Participation in educational activities.

Customer loyalty – after buying the customer becomes a part of The Harley Davidson family.

Strong marketing and distribution channels.

Custom motorcycles.

The Weaknesses are as follows:

The price is higher than competitors.

“Outreach” customers are not aware of the price range often overestimating it.

A Gradual loss of market share in European countries.

A Design that doesn’t respond to the needs of younger adults as a new possible target group.

A Controversial reputation in society.

Opportunities:

European market (new models), Japanese market and new developing markets (Asian continent with fast economic growth and fast growing population with growing disposable incomes)