Harley-Davidson Marketing Strategies Essay

August 6, 2017 Marketing

In 1903. 21-year old William S. Harley and 20-year old Arthur Davidson the first production Harley-Davidson bike that was hand-built in a little garage in Milwaukee. Today. Harley-Davidson. Inc. employs more than 8. 200 people and has 1. 110 franchise worldwide. Its corporate central offices are still located in Milwaukee. Wisconsin. The domestic production installations are in the Milwaukee country. East Troy and Tomahawk. Wisconsin ; York. Pennsylvania ; and Kansas City. Missouri. Design. client focal point and gross revenues have placed this company is in a really alone and desirable selling state of affairs.

Design is critical to the continued success of this company. For some companies. the word design may convey ideas of sweeping alterations and new theoretical account lines. However. for the design squad at Harley-Davidson. it inspires ideas of being faithful to the authoritative lines and sounds of a Harley-Davidson bike. This is non to state that the interior decorators are non allowed and encouraged to better on the enormously successful line of bikes. merely the opposite is true. Ken Schmidt. manager of communications for Harley-Davidson. stated that: “We are invariably bettering and overhauling the machine. yet non every constituent. That is what our clients want. and that’s besides. I believe. what sparks the strong emotional fond regards that Harleys generate. ”

In the early 1980’s. the company was plagued with quality control and dependability issues that about caused the company to travel out of concern. At this point. it was up to the design and quality control applied scientists to revamp the mechanical and electrical parts while remaining true to the authoritative line of the bike. They succeeded in deciding the jobs and saved the company. William G. Davidson. who heads up a squad of five merchandise interior decorators. is speedy to add. “It’s of import to understand that we’re non in the concern of doing old-timers. Every twelvemonth we make farther betterments to our engines and human body. But from a titling point of view. we have to integrate betterments without compromising `the expression. ’ If we move a bolt or re-route one hosiery. our clients take note and name us on it. A Harley isn’t shrouded in fibreglass like so many other motorcycles.

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Everything we do is right out in the unfastened. ” This mentality prevents womb-to-tomb riders from experiencing alienated and impeaching the company of “selling out” in the chase of increased gross and net incomes. Harley-Davidson understands that it is every bit of import to keep their current partisans as it is to develop new 1s. No where is this more apparent than in their mission statement: “We fulfill dreams through the experience of motorbiking. by supplying to motorcyclists and to the general populace an spread outing line of bikes and branded merchandises and services in selected market sections. ”

Customer focal point is another country of selling where this company excels. Factory sponsored mass meetings and trial thrusts are merely two ways that Harley stays in touch with their clients. The largest sponsored mass meeting occurs each twelvemonth at Sturgis in the Black Hills of South Dakota. This event draws 400. 000 riders from around the universe. There are 100s of company employees at that place every bit good. non merely to bask the mass meeting. but besides to garner information from the partisans. There is no better or more efficient manner to study your clients than to talk with them straight after they merely traveled to an event on your merchandise. This “close-to-the-customer” doctrine allows the company to utilize these mass meetings as merchandise development centres.

It allows the company leading to acquire instant responses on both current merchandises every bit good as new merchandises that may shortly travel into production. Customers respond positively to this type of merchandise study. because they feel like their sentiment affairs and will act upon the following year’s merchandise line. Another selling tool that has been rather successful for this company has been the factory-sponsored test-drives. The mill sends a tractor-trailer filled with demo motorcycles to each franchise that is willing to take part. All of the new theoretical accounts are available and anyone with a helmet and a valid licence to run a bike can seek them out. For many of the franchises. it is the busiest twenty-four hours of the twelvemonth.

Harley-Davidson central office employs eight selling specializers that develop “designer stores” . These shops are much different from the standard “garage-type” shop of the yesteryear. These shops are designed to pull clients in. environ them with bikes. and supply an ask foring retail environment. Franchises that have converted their stores to the Designer Store construct have seen surging grosss and rapid return on investings. Imaginative selling schemes have kept Harley-Davidson as the leader of America’s big-bike market. It is non merely the bikes that are in high demand. Harley has developed a really profitable retail selling line. This line includes vesture. tattoo spots. java mugs. belt buckles. baby wear and memorabilia.

Most would believe that this company must pass a important part of their gross on advertisement. The opposite is true. in 1995 the company generated $ 1. 3 billion in gross while passing less than $ 2 million on advertisement costs. “Word of mouth” is their chief signifier of advertisement. Company executives feel that their clients are their gross revenues force. after all. satisfied clients are the better than advertisement. Harley-Davidson is in a alone selling state of affairs because they are non selling transit ; they are selling a life style. Customers routinely wait between six and 18 months for bringing of a new theoretical account. That type of merchandise trueness is difficult to happen and non easy developed.

The waiting list for a new Harley-Davidson is now more than a twelvemonth. and used motorcycles are more expensive today than when they were new. How can this perchance be true when new autos depreciate quicker than you can do the payment? The ground is the supply-to-demand ratio and Harley-Davidson has mastered this ratio. Although they produced more than 300. 000 motorcycles last twelvemonth. demand is still on their side. Many new clients look at buying a Harley as an investing that you can bask on a day-to-day footing. The first turning point for the company was when they changed the engines back in 1984. The second was when the “baby boomers” hit their mid-life crisis. Since so. traders have struggled to maintain show theoretical accounts on the floor. Scarcity allows the company to accomplish higher profitableness. and it besides helps protect the investing for old purchasers.

Womans are the last great frontier for this company and they are get downing to concentrate more on that section of the market. They have begun to put advertizements in women’s magazines in an effort to alter the company’s image to a more family-oriented 1. They have besides begun to do technology alterations to some of the theoretical accounts. Some of the new motorcycles will hold smaller handlebar clasps. an easier pulling clasp. and lower seats. “Riders Edge” is a plan at Harley franchises supplying riders’ instruction categories to assist novitiates larn to sit and acquire licensed. Technology ascents such as liquid-cooled. high-octane. engines and lightweight stuffs will do motorcycles more powerful. but besides less hard to manage. All of these alterations are being implemented to promote adult females to buy their ain motorcycles as opposed to merely being riders.

Customers can feel that the Harley-Davidson employees care about them and their concerns. The company takes this duty so earnestly that they developed a list of “core values” . These are their values. They are the bosom of how we run their concern. They guide their actions and serve as the model for the determinations and parts their employees make at every degree of the company. State the truth. be just. maintain your promises. esteem the person. and promote rational wonder. Because of their supply-and-demand ratio. it would be really easy for this company to develop a “take it or go forth it” attitude with their clients. A big portion of the success has to be attributed to the high-value they place on the sentiment of their clients.

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