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Harley-Davidson Harley-Davidson is one of the most recognized brands all over the words as far as the company holds a position as a leader of the heavyweight motorcycle segment. Competition in the motorcycle industry is based on performance, breadth of product line, styling, quality of service after the purchase, and price. In order to retain its positions at the market, the motorcycle manufacturer should have good reputations for all elements of their competitive strategy. What concerns Harley-Davidson, in 1981 the company was not very effective in its performance. It was purchased from AMF and was reincorporated. By that time the objective was to retain jobs.
The company had to reshape its strategy in order to survive at the market. By that time the companys products were unreliable and had poorer performance compared to their competitors, who managed to flood the market with less-expensive motorcycle. The shops hardly could be called a pleasant place to visit. No wonder that Harley-Davidson's situation was poor. The customers reported lack of attention to the quality of motorcycles and to after-the-sale service. The managers implemented marketing strategy with the main objective to improve the product quality by following Japanese management practices, and to refuse from advertising.
Instead the company planned to starts promotions at different motorcycle rallies. Additionally, Harley-Davidson planned to enhance the dealer network and to improve the customer service. The company created a pilot program in Milwaukee to motivate the dealers building clean and attractive shops to display both the companys mainstream production (motorcycles) and additional merchandise the customers might wish to buy. Such remodeled dealerships assisted the company to enter into a new product category. Harley-Davidson stores offered a wide selection of about-cycling products, accessories and clothing items along with new motorcycles.
After the company found solution to quality problem, it placed high emphasis on improving the customer loyalty. Harley-Davidson created Harley Owners Groups (HOGs) to provide the customers an opportunity to communicate with each other and to ride with other Harley owners. In such a way, the customers were provided with the feeling of community. The community approach helped Harley-Davidson to attract plenty of new customers. Additionally, the company provided each new customer with a free HOG membership. In 2003 there were more than 793, 000 members of HOGs in 1, 200 chapters.
At their next step, the company reshaped its image. In 2003 the typical customer was a 46 -year-old male earning $ 78, 000 per year (C- 369). The company appealed to upscale audience in order to improve its performance without alienating the traditional customers. Although some customers were not satisfied by the new breed of bean counter Harley owners (C- 370), these concerns were calmed by William G.
Davidson's continuing involvement with the company, who was an old-school biker himself and managed to find a balance between old-school bikers and rich urban bikers. Harleys competitors claimed that the company sells lifestyles, not motorcycles. In response, Harley-Davidson CEO Jeffrey Bleustein answered that the company stands for freedom, adventure, individual expression and being a little on the edge, a little bit naughty (C- 370). According to him, people were becoming Harleys customers for those reasons. In addition, the company had to solve problem of The Hell Angels, who were often associated with organized crimes and rival gangs. The company balanced its objective to promote freedom and rebellion against its need to distance the company from criminal behavior (C- 370) and placed special text at its website, claiming that the majority of Harleys riders are law-abiding citizens and even those who felt certain alienation from society were not lawless anarchists, but people who saw the motorcycle as a way to express both their freedom and their identity (C- 371).
Harley-Davidson's strategy was quite successful and the companys performance improved. Harley had more than 700, 000 of the most loyal customers and successful years with revenues, earnings and record shipments. The company planned to increase its production to 400, 000 motorcycles by 2007. However, there were some concerns as the company entered its second century. Market analysts forecasted that the companys stock approaches its apex because the primary baby boomed customer group becomes too old to ride the motorcycles. The average age of Harleys customers was 46 compared to an average 38 -year-old competitors average customer.
In addition, there was a concern with unfavorable short-term production issue and over availability of 2003 models that forced the company to adopt a 0 % down payment financing program in 2003 - 2004. The companys performance is quite effective compared to their competitors, however, it is recommended to enhance its strategy in order to attract more Generation X buyers and to secure the companys position as the leader of the heavyweight motorcycle segment. Bibliography Gamble, John. E. , Schafer, R. "Case 20. Harley-Davidson in 2004. " Gamble, John. E. , Schafer, R.
Part 2: Cases in Crafting and Executing Strategy. University of South Alabama, 2004.
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Research essay sample on Heavyweight Motorcycle Segment E Schafer R Company
