Case: Harley-Davidson: Chasing a New Generation of Customers
Despite record gross revenues in 2006 and a dominating portion of the heavyweight bike market for the old decennary. Harley Davidson had to take new action to keep its growing. Although the company enjoyed continued growing in the 2000s and its trade name image was strong. its nucleus client base of Baby Boomers was aging. In 1987. the average age of a Harley-Davidson client had been 35 ; by 2007. it was 47. Hence. Harley Davidson’s major focal point of its outreach attempt was to pull more immature grownups. who somehow perceived this trade name to be expensive and intimidating to a certain grade. Furthermore. Harley-Davidson encountered ferocious competition from companies chiefly based in Europe and Japan. For illustration. many of the Nipponese companies competed chiefly in the athletics motorcycle class. but they all offered copycat designs of Harley’s manners in the sail infinite.
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The Nipponese motorcycles clearly competed with the Harley Davidsons in its end to pull younger clients in the U. S. . since they had lower monetary value points. faster velocities and the coveted quality for the immature coevals. Hence. Harley-Davidson was in the quandary to either continue to lodge to its pillars – “the large loud machines or to vie with Nipponese rivals for the sporty. less costly bikes geared toward the younger. hipper crowd. ” Despite the on-going outside competition and its battle to happen client base of immature coevals. the company did non give up easy and tested hard to remain in the market. For illustration. in order to excite its growing degree and to maintain its selling attempts traveling. Harley-Davidson hired Mark-Hans Richer. CMO who through the mean 27-month term of office ( for CMO’s Harley ) had teamed up with others to come up with a scheme to happen a solution that would be appealing to younger clients and make trueness while continuing the trueness of the nucleus clients.
For case. Richer and his squad conducted studies and surveies of immature grownups that identified barriers to purchasing a Harley-Davidson. which helped Harley-Davidson to bring out many consumer penetrations that validated its challenges in appealing to younger clients. Traveling frontward. the two quality trade names – Harley-Davidson & A ; Buell – will hold to come up with ways for a trade name direction scheme. The possible “house of brands” scheme introduced by Proctor & A ; Gamble or the “branded house” scheme could be used as illustrations to explicate a trade name direction for Harley-Davidson in future.
Further. Richer and his squad should be given sufficient clip to carry on more market research and surveies to happen out the gustatory sensation and penchant of immature peoples in respects to drive rhythms manners and outlooks. Besides. it’s worthwhile for the selling squad to pass more money and clip on R & A ; D and design to convey out fashionable. sporty. and less costly Harleys that could give competition to Japanese and European challengers. Finally. Harley-Davidson could keep its growing by perforating emerging new markets such as China. India. Brazil or Russia ( BRIC ) and utilize its historical trade name strengths to pull the “Baby Boomers” of these states.
