Another key failure factor is shifting consumer preferences. These are driven by shifting demographics, as Harley's core target market is aging out of the range at which it would consider purchasing a Harley bike. This core market -- white males in their 40s and 50s -- has been fuelled by the baby boomer generation, who are now growing too old for superheavyweight bikes (Steverman, 2009).
A third key failure factor for Harley is the company's recent credit practices. The firm engaged in subprime lending in order to sustain its business in the face of slowing sales. As a consequence, however, it now faces a credit crunch. The firm has raised only part of the operating capital it requires, and is paying a high rate of interest (15%) for the privilege (Hamner, 2009). Almost a quarter of Harley's consumer loans were subprime in 2008, resulting in defaults. Harley wrote down $80 million in bad loans for 2008. Such writedowns, especially in the face of slowing sales, have contributed to a poor financial situation.
The company's current situation is a unique mix of hitting key success factors to build a strong business, then suffering through some of the key failure...
Opportunities: The Harley-Davidson company stands to gain a significant share of the market by appealing to female consumers, if it uses marketing research to craft a successful promotional campaign. Threats: The main threat to a successful marketing campaign to attract female consumers come from competitors that already market to females, especially Japanese motorcycle manufacturers and the Italian company Vespa. Creative Strategy Communication objectives include promoting the Harley Davidson sportster as the motorcycle of
Harley Davidson 5304 Harley-Davidson Harley-Davidson Inc. is an American motorcycle manufacturer specialized in heavyweight cruiser and chopper style of motorcycles with over 700 cc. Founded in 1903 and headquartered in Wisconsin, United States, Harley-Davidson is one of the two major American motorcycle manufacturers and known as a classic American icon. Since its inception, Harley-Davidson has been setting remarkable records with its top quality motorcycles for miles per gallon, speed, racing, distribution strength,
Harley Davidson has led the heavyweight motorcycle market in recent years, capturing about 55% of the market, according to James R. Hagerty's article in The Wall Street Journal (Hagerty, 2011). But following the economic downturn, which had a negative effect on sales, and other market issues, the iconic motorcycle company needs to beef up sales and in addition the company is looking for ways to appeal to younger enthusiasts, to
Harley Davidson AMF took over Harley Davidson in 1969 (Motorcycle.com, 2012), a few decades before Treacy and Wiersma developed their theory about value disciplines (1992), so Harley management clearly did not have these theories in mind when setting strategies in those days. The three value disciplines are operational excellence, product leadership and customer intimacy. Arguably, Harley excelled at all three in those days. The company had a very high degree of
Harley Davidson -- Greatful Dead Harley Davidson Motorcycles is an American icon and a brand which is recognized the world over. Sixty years or so ago two things happened to HD which caused HD to almost go out of business. Then something happened to change that. What happened and how has HD used marketing in an effort to regain a large portion of the market that it lost? Over the last sixty
The younger crowd may be more attracted by the dangerousness of the bikes and by the sense of adventure involved. Older groups seek a certain return to youth and show an adherence to the idea of freedom. The motorcycle at one time had the aura of an outlaw lifestyle, as noted, an image that the company has not sought and often seeks to counter. Still, that image remains strong
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