The Harley-Davidson Motor Company

INTRODUCTION

The Harley-Davidson Motor Company was founded in 1903 by William Harley and Davidson brothers. The company expanded rapidly, building motorcycles aimed at leisure, sport racing, police forces, delivery services and the military. It had a sportier sister brand named Buell. The company had commanding share in heavyweight motorcycle market. However, Harley-Davidson’s riders were aging and the company saw this as a threat to its existence. It needed to take new actions so as to sustain its growth. For this purpose and for the very first time Mark-Hans Richer was appointed as Chief Marketing Officer. The company wanted a new generation of riders and more diverse customer base, all without losing current customers.

PROBLEM IDENTIFICATION

Harley’s core customer base comprising of Caucasian men was ageing. In 2007 the median age of customers was 47. Neither Harley nor Buell (separate brand manufactured by Harley Davidson) could penetrate the emerging markets like India, China or Brazil. It has not been able to cater to the customers comprising of Young adults (18-34), Caucasian women (35+), Hispanic men and women (35+) and African men and women (35+). Younger generations felt that visiting the dealership as major obstacle and the cost of Harley bikes are becoming unaffordable. Moreover, they are attracted towards Harley’s Japanese competitors because of low price and faster speeds. Harley was not aware of the preference of young adults who preferred the stripped down, elemental, dark bikes over the chrome cruisers unlike its core customers. Unlike the baby boomers the younger generations are not very loyal. In 2007 and 2008 due to recession the sales of Harley plummeted, so making further investments in attracting the outreach customers may cost its core customers.

STRATEGIC ANALYSIS OF HARLEY DAVIDSON

PARENT COMPANY HARLEY DAVIDSON

CATEGORY Motorcycle

SECTOR 2 – Wheeler

SWOT ANALYSIS

STRENGTH • Strong customer base due to brand value.

• High Product Quality.

• Loyal customers.

• Premium market share for cruiser segment.

WEAKNESS • Very expensive.

• Customer Base not diverse.

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