Harley Davidson International Management

I. Summary of the case study “Harley-Davidson – rockers’ idol”

So, this case study is about Harley-Davidson, a brand of motorcycles and more precisely about its development since his foundation in 1903 by 21-year-old William S. Harley and 20-year-old Arthur Davidson.

So, in 2003, it was the celebration of the 100th birthday of the Harley-Davidson. And, in order to commemorate it, fans of this famous brand rode until Milwaukee to see the parade of 10 000 Harley-Davidson motorcycles. Through this celebration, we can see how recognized this brand is for the owners, or should I say fans. Indeed, this case also shows how the strategy and the marketing of Harley-Davidson are good; because Harley has fans and they will do all they can for their bikes and their brand.

For its 100th year, Harley Planned for selling 290 000 bikes. And in 2002, the firm reported a gross profit of US$ 1.4 billion on US$ 4 billion sales.

But, its history has never been so easy. Indeed, after 50 years of growth destroying the local competition in the US, Harley has known almost 20 years of hard competition in his market, and especially with Honda. And seeing a deterioration of its market share (only 30%), Harley has decided to abandon overseas markets. 1969 saw Harley-Davidson merge with the American Machine and Foundry Company (AMF). The merger would last until 1981, when 13 senior executives from Harley Davidson buy back the company. After the buyout is made official, the phrase “The Eagle Soars Alone” becomes a rallying cry.

So, this merger has ensured Harley-Davidson to continue its development and its improvement, and succeeded its come back in the first line. This new team achieved this thanks to a good marketing strategy, in other words creating customer value. This new strategy has ensured to create the feeling for the owners to belong to a family, such as the Harley Owners’ Group. One of the key issue of the new strategy is thus to accord importance to fidelity.

The most interesting point of this case is that Harley has different marketing strategy according to countries. Indeed, in some markets (US, Australia, Japan, Spain, Denmark) Harley-Davidson tries to attract new customers using advertisements, but in other markets such as the Europe, the strategy is more the usage of the promotion in specialized magazines. Another interesting point is tha...

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...ording to me, this is the reason why the median age of Harley riders is growing up. So, Harley-Davidson should try to go to other segments, in order to diversify its customers. Harley has well understood this promising gap in the market, buying back the firm Buell, famous for sport bikes. And, according to Jean-Luc Mars, CEO of Harley-Davidson France, “Buell ensures to conceive radical bikes without endanger the foundations of Harley’s brand. Buell also ensures to develop internally Harley-Davidson France and its network, our entire acknowledge of the bikes market, and to innovate on original marketing techniques”.

But, this is the first step in this promising segment, where young people are for sure the more present. Honda and Yamaha, for instance, are very well recognized in this market. And, according to me, the reason is the fact that they are present in “grand prix” doing races and winning championships, and thus becoming famous all over the world. Indeed, races can prove the quality, the competitiveness, and the reliability of a brand. It is not a hazard that Honda won from 1994 to 2003 the 9 championships in the biggest and the hardest class, 16 championships won in total.