English 3345 - Business Team #4:
Natalie Martell
Martha Martinez
Virginia Lopez
Myles Melendez
The birth of the Harley-Davidson legend began in
1903, in a small shed in the Davidson family
backyard in Milwaukee.
H
I
S
T
O
R
Y
In 1907, they had one full-time
employee and sold 50 motorcycles.
• 1908
– Standard was raised
• Walter’s Harley motorcycle
– V-twin engine
– Transformed itself into the world's leading producer of
motorcycles
• 1918, Harley-Davidson
became the world's
largest motorcycle
company
- 28,000 motorcycles
sold
– Larger and more powerful
motorcycles are built
Mid-1950s
– Harley-Davidson became the
undisputed leader of the
motorcycle market
– Harley motorcycles were used by
the U.S. military, highway patrol
officers, the Hell's Angels, and
Hollywood rebels, including actors
James Dean and Marlon Brando.
Late 1950’s- young "Elvis types"
attracting dates with their Harley
• Teerlink's leadership
– company began to transform
itself from an informal to a
formal organization
– Believed that in changing the
pay system, the workers
would be able to understand
empowerment
• Harley differentiated itself
from its Japanese
manufacturers
– Offering support to various
enthusiast and social groups
• “Hogheads”
– Breaking 65 years of
tradition
– Creating the V-Rod
clothing, helmets,
boots, jewelry, and
pet accessories
– “A new generation”
• Harley-Davidson was
accomplishing what it
set out to do
• Verge of bankruptcy in
1970
• Successfully shed its
product and marketing
doldrums
• 2003 once again HD
became the market
leader of the U.S.
heavyweight motorcycle
industry
Celebrating its 100th
birthday
Communication Strategy
• 1950’s
– High market share
– Loyal customer base
• Police departments
• Emergence of new
competitors
– Honda
• Lightweight, fuel efficient
motorcycles
• HD market share decline
– Lack of quality
…cont.
• Resurrection
– Vaughan Beals, VP of Sales
– Willie G. Davidson, grandson of founder
• Main concern: quality
– Drove to rallies to meet with consumers
• Learned about complaints, concerns
• Promised change
• HOGs (Harley Owners Group)
– Leaders of movement
…cont.
• Image problem
– HOG’s
• “Pot-smoking, beer-drinking, woman-chasing, tattoocovered, leather-clad bikers.”
– Imitators & bootleggers
• Tarnishing brand-image with low-quality products
• HD began licensing their products
• New customer segment
– “Rubbies” (Rich, urban, bikers)
– “One in three of today’s Harley-Davidson buyers are
professionals or managers. About 60 percent have
attended college .”
PROBLEMS HARLEY
-DAVIDSON FACES
•Competitors coming out
with cheaper, sleeker
faster bikes
• “Harley's close
association with
boomers could
make the brand
harder to sell to
younger
customers
• The stronger the brand is
with the older generation,
the weaker it is with the
younger generation.”
(Nolan & Kotha,
2007).
Proposed Solution
• Focus Groups and Market Analysis
– Focus groups can give Harley that insights that it needs to
improve its motorcycles
– Will get a good sense of what the majority wants, a good look
at trends, and opinions
– Segment the market by age brackets and get information on
what each bracket likes and dislikes
Marketing
•Harley has positioned itself as a
“bikers” motorcycle.
•They are alienating a large segment of
people who buy motorcycles that do no
fit this image.
•Needs a new marketing campaign
Evidence of problem:
•Shutdown of Buell line
•Sale of MV Augusta Brand Harley
•Did not Invest time and money into
research
•Lost 125 million dollars
•Top Management and marketing
departments not listening to
innovations and creativity
•Must understand diversity of bike
riders
Price
•Other brands offer
high quality cheaper
motorcycles
•A drawback to Harley- prices are
higher
•Need to find a way to make
a cheaper bike with high quality
•Start creating brand loyalty
at a younger age.
SWOT Analysis
• Harley Davidson’s history and success has
strived, and is growing bigger each decade.
• Even though the company needs no help in
bringing in revenue, it wouldn’t hurt to gain
more attention from the younger audience
Strengths
• Harley Davidson is known by the quality and new developments
of their products.
• The biggest strength in this company is the name and reputation
this company has built and constructed for over 100 years.
• Not only provides a product but as well as services that provide
financing.
• A Creation of varieties of products from
leather boots to Build-your-own-motorcycle.
• A complex and vivid internet official site
you can read feedbacks and stories from
loyal customers.
Weaknesses
• Harley Davidson is struggling in targeting the younger
audience.
• The median age of an actual Harley Davidson rider ranges
from 42 to 49.
• The generations of baby boomers have contributed hugely
to the gross sales but once they get older, Harley Davidson
is faced with major conflicts in the future.
• Baby boomers have already past their midlife crisis phase
and big expenditures are past their objectives at this point.
Opportunities
• Harley Davidson has developed an image only
related to the baby boomer generation.
• Their research and development group need to
construct products that can create more
attention to the company from the younger
audience.
• Their decisions have to be chosen wisely because
their sales are dropping as their majority of their
audience are getting older.
Threats
• Decrease in demand for their bikes
• Continuing to be a traditional loyal brand of
motorcycles.
• Choice and selection that this generation has
shown is far from the buel look
• This generation is looking more for slimmer
sports like bikes which Harley Davidson doesn’t
manufacture.