Harley-Davidson Marketing Strategies Essay

In 1903, 21-year old William S. Harley and 20-year old Arthur Davidson the first production Harley-Davidson motorcycle that was hand-built in a small garage in Milwaukee. Today, Harley-Davidson, Inc. employs to a greater extent than than 8,200 people and has 1,110 enfranchisement worldwide. Its corporate headquarters argon still located in Milwaukee, Wisconsin. The municipal production facilities ar in the Milwaukee area, East Troy and Tomahawk, Wisconsin York, Pennsylvania and Kansas City, Missouri. Design, guest focus and sales render placed this confederacy is in a very unique and desirable market situation.Design is critical to the continue success of this come with. For some companies, the word design whitethorn bring thoughts of sweeping throws and new model lines. However, for the design group at Harley-Davidson, it inspires thoughts of being confining to the determinate lines and sounds of a Harley-Davidson motorcycle. This is not to say that the designers are not allowed and progress to improve on the hugely successful line of motorcycles, in effect(p) the antonym is true. Ken Schmidt, director of communications for Harley-Davidson, stated that We are constantly up and modernizing the machine, yet not every component. That is what our customers want, and thats in addition, I believe, what sparks the strong ablaze attachments that Harleys generate.In the early 1980s, the family was plagued with fiber control and reliability issues that close caused the confederacy to go out of business. At this point, it was up to the design and quality control engineers to revamp the mechanical and electrical portions while staying true to the classic line of the motorcycle. They succeeded in resolving the problems and saved the company. William G. Davidson, who heads up a team of five product designers, is quick to add, Its heavy to understand that were not in the business of making antiques. Every year we seduce further improvements to our engines and chassis. But from a styling standpoint, we have to incorporate improvements without compromising the get a line. If we consort a bolt or re-route one hose, our customers take note and offer us on it. A Harley isnt shrouded in fiberglass alike(p) so umteen other bikes.Everything we do is right out in the open. This mindset prevents lifelong riders from qualityingalienated and accusing the company of selling out in the pursuit of increased revenue and profits. Harley-Davidson understands that it is as important to maintain their current enthusiasts as it is to contrive new ones. No where is this more evident than in their mission statement We fulfill dreams through the deliver of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market members.Customer focus is another area of marketing where this company excels. Factory sponsored rallies and test drives are just t wo ways that Harley stays in touch with their customers. The handsomest sponsored rally occurs each year at Sturgis in the Black Hills of South Dakota. This event tramps 400,000 riders from around the world. There are hundreds of company employees there as well, not only to fuck the rally, but in addition to gather information from the enthusiasts. There is no better or more efficient way to survey your customers than to speak with them directly afterward they just traveled to an event on your product. This close-to-the-customer philosophy allows the company to use these rallies as product development centers.It allows the company leadership to get instant responses on both current products as well as new products that may soon go into production. Customers respond positively to this type of product survey, because they feel like their opinion matters and will influence the next years product line. Another marketing tool that has been quite successful for this company has been the factory-sponsored test-drives. The factory sends a tractor-trailer filled with demo bikes to each dealership that is free to participate. All of the new models are available and anyone with a helmet and a legitimate license to operate a motorcycle batch try them out. For many of the dealerships, it is the busiest day of the year.Harley-Davidson headquarters employs eight merchandising specialists that develop designer stores. These stores are much different from the standard garage-type store of the past. These stores are designed to draw customers in, surround them with motorcycles, and provide an inviting retail environment. Dealerships that have converted their shops to the Designer inventory concept have seen soaring revenues and rapid return on investments. originative marketing strategies have kept Harley-Davidson as the leader of Americas big-bike market. It is not just the motorcycles that are in high demand. Harley has developed a very profitable retail merchandisi ng line. This line includes clothing, tattoo patches, burnt umber mugs, belt buckles, infant wear and memorabilia.Most would think that this company essential spend a significant portion of their revenue on advertising. The gelid is true, in 1995 the company generated $1.3 billion in revenue while outlay less than $2 million on advertising costs. Word of rim is their main form of advertising. Company executives feel that their customers are their sales force, after all, satisfied customers are the better than advertising. Harley-Davidson is in a unique marketing situation because they are not selling transportation they are selling a lifestyle. Customers routinely wait between six and eighteen months for pitching of a new model. That type of product loyalty is hard to recoup and not easily developed.The waiting list for a new Harley-Davidson is straightaway more than a year, and used bikes are more expensive now than when they were new. How can this possibly be true when ne w cars depreciate fast than you can hurl the payment? The reason is the supply-to-demand ratio and Harley-Davidson has mastered this ratio. Although they produced more than 300,000 bikes last year, demand is still on their side. Many new customers look at purchasing a Harley as an investment that you can enjoy on a daily basis. 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 then, dealers have struggled to throttle display models on the floor. Scarcity allows the company to achieve higher profitability, and it besides helps protect the investment for previous buyers.Women are the last great line for this company and they are beginning to focus more on that segment of the market. They have begun to place advertisements in womens magazines in an attempt to change the companys image to a more family-oriented one. They have besides begun to make engineering changes to some of the models. Some of the new bikes will havesmaller handlebar grips, an easier pulling clutch, and lower seats. Riders Edge is a program at Harley dealerships providing riders education classes to help novices learn to ride and get licensed. Technology upgrades such(prenominal) as liquid-cooled, high-powered, engines and lightweight materials will make bikes more powerful, but also less difficult to handle. All of these changes are being implemented to encourage women to purchase their own bikes as opposed to simply being passengers.Customers can sense that the Harley-Davidson employees care about them and their concerns. The company takes this responsibility so naughtily that they developed a list of core values. These are their values. They are the heart of how we run their business. They guide their actions and serve as the framework for the decisions and contributions their employees make at every level of the company. Tell the truth, be fair, keep your promises, approve th e individual, and encourage intellectual curiosity. Because of their supply-and-demand ratio, it would be very easy for this company to develop a take it or leave it attitude with their customers. A large part of the success has to be attributed to the high-value they place on the opinion of their customers.