Harley Davidson: A Marketing Analysis of Challenges and Solutions

This report provides a comprehensive marketing analysis of Harley-Davidson, examining the company's challenges and strategic opportunities. It begins with an executive summary and table of contents, followed by an introduction that outlines Harley-Davidson's historical significance and the issues it faced, particularly after 2007. The discussion section delves into key market research indicators, including brand logo and design, product quality, diversity, safety, and social issues. It then explores the application of the ANSOFF matrix to address these issues, focusing on market penetration, development, product development, and diversification strategies. The report highlights specific issues in 2007, including the company's point of view, and recommends strategies such as penetration pricing, digital marketing, and social campaigns. The conclusion reiterates the need for marketing analysis and offers opportunities for Harley-Davidson to revitalize its brand. The report includes a bibliography and an appendix with a figure illustrating the ANSOFF matrix.

Running Head: MARKETING ANALYSIS OF HARLEY DAVIDSON
MARKETING ANALYSIS OF HARLEY DAVIDSON
Jeffrey Coster

1MARKETING ANALYSIS OF HARLEY DAVIDSON
Executive summary
Harley-Davidson is considered to be one of the epic bike manufacturing companies in the world. The company is
popular for its cruise model bikes that overwhelm bikers since time immemorial. However, since 2007 the
company faces an array of issues in expanding the business rapidly. In this context, the report tried to highlight
those issues and recommended some measures that could help the company to re-establish its business superbly.
Moreover, the report also pointed out the strategic steps that Harley-Davidson should take in 2007 in order to
prevent the crisis. The report concluded that there were still possibilities for Harley-Davidson to prove its value and
tradition again.

2MARKETING ANALYSIS OF HARLEY DAVIDSON
Table of Contents
Introduction...................................................................................................................................................................4
Discussion.....................................................................................................................................................................4
Key market research indicators and consumer insights................................................................................................4
Brand logo and design..........................................................................................................................................4
Product quality......................................................................................................................................................4
Product diversity...................................................................................................................................................4
Safety and comfort................................................................................................................................................4
Social issues..........................................................................................................................................................4
Marketing strategy........................................................................................................................................................5
ANSOFF matrix........................................................................................................................................................5
Market penetration................................................................................................................................................5
Market development.............................................................................................................................................5
Product development............................................................................................................................................5
Diversification......................................................................................................................................................5
Issues in 2007................................................................................................................................................................6
Company’s point of view..........................................................................................................................................6
Penetration pricing strategy......................................................................................................................................6
Digital marketing strategy........................................................................................................................................6
Social campaign strategy..........................................................................................................................................6
Conclusion....................................................................................................................................................................6
Bibliography.................................................................................................................................................................7

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Appendix.......................................................................................................................................................................8
Figure 1.....................................................................................................................................................................8

4MARKETING ANALYSIS OF HARLEY DAVIDSON
Introduction
Harley-Davidson is considered to be one of the popular bike makers across the globe. Founded in 1903 the
company gradually expanded its market capitalisation with a unique style design and powerful engines. In fact, it
can be argued that the Harley-Davidson bikes created an heavy impact on the American culture after 1950s where
motorcycle clubs and gangs were going to adapt the Harley-Davidson bikes as their dominant style. However, in
course of time the company faced severe challenges in the international market due to the presence of more
eccentric and cheap motorbikes mainly provided by the Japanese companies. Based on this understanding, the
purpose of this report is to portray an understanding of the target customers of Harley-Davidson and the intense
competitive market that creates a number of challenges in the market capitalisation of the company. In addition to
this, the report also encompasses the implementation of Product differentiation strategy for the benefit of Harley-
Davidson to attract the young generation.
Discussion
Key market research indicators and consumer insights
Brand loyalty is an important aspect for any company that wants to expand its market more extensively. In
this regard, there are some factors that can influence the new customer segments.
Brand logo and design
The brand logo of Harley-Davidson has a cult essence and it creates a great craving for customers to buy
the product. Moreover, the design of the bike is crude and classic that attracts customers heavily. In fact, people are
more interested in expressing their interests regarding the design and logo of the Harley-Davidson. It keeps them
nostalgic and sensitive about the cruise design and stylish logo of the bike.
Product quality
Moreover there is no doubt about the quality of the Harley-Davidson bikes and the bikes are very useful for
long run. It can be argued that the technology and the engine support in Harley-Davidson are so excellent and
heavy that for travelling and meeting long distance journey the Harley-Davidson bikes provides the best benefits.
However, there are also the disadvantages of the Harley-Davidson bikes that decrease the market
capitalisation of the company in a rapid pace. In this regard, the responsible factors are
Product diversity
The cruise model of the Harley-Davidson bikes are not in trend nowadays. The sports bikes become most
popular among the young generation. As a result of that lack of product diversity creates great problem for Harley-
Davidson to create new loyal customers.
Safety and comfort
The safety and comfort issues are also caused detrimental impact on the organisations in a robust manner.
Due to its heavy weight and lack of comfort the young generation is not so fond of purchasing the Harley-
Davidson bikes.
Social issues
The logo and fame of Harley-Davidson created a number of fan clubs like the Boozefighters and the
Galloping Goose Motorcycle but in later time these biking groups turned into criminal gangs dealing with narcotics
and armed clashes. It damaged the brand value of the company.

5MARKETING ANALYSIS OF HARLEY DAVIDSON
Marketing strategy
ANSOFF matrix
For resolving the issues in the Harley-Davidson the ANSOFF matrix is very relevant and has the ability to
mitigate the problem. The ANSOFF matrix has four different growth strategies in terms of the market penetration,
market development, product development and the diversification strategy.
Market penetration
This strategy creates less risk in the market because it relies on the firm’s existing resources and capabilities. The
market penetration strategy is very accurate in the growing market and it will be a strategic stance taken by the
organisation in order to incorporate the core competencies related to a specific product1. In addition to this, the
market penetration strategy puts more emphasis on the existing opportunities to increase the market shares if
competitors reach the capacity limits. However, the market penetration will be effective in an existing market with
existing products. In this context, the existing products of the Harley-Davidson are the cruise bikes only and the
young generation does not show any fondness towards it. Therefore there is no point for Harley-Davidson to
procure such measure of market penetration.
Market development
The market development strategy is an essential part for the organisations that are facing huge risks and
challenges in their market occupation. In this regard, it can be argued that market development puts focus on the
additional market segments in order to increase the market capitalisation. The firm’s core competencies are an
essential part of the market development strategy where the organisation tries to expand its market internationally
or domestically or both2. However, in case of the market development strategy the process can always be
applicable for the new markets only. It is not possible for the existing market to develop the market further where
the company already invests a lot. Therefore, the market development strategy is relevant to enter the new market
with the help of the existing products. However, in case of the Harley-Davidson it can be seen that the existing
products become fade away its popularity and as a result of that it will never be a good option for Harley-Davidson
to expand its market further on the basis of the existing products.
Product development
Based on the present case scenario it can be argued that the product development measure is considered to
be one of the major aspects that the company can leverage upon. The product diversification strategy is identified
as the most risky strategy as it requires both product and the market development3. As a matter of fact, the product
development process imposes more importance on the new products and the existing market. It is coincided with
the process of product differentiation where Harley-Davidson intends to develop new products in the existing
market with the intention to compete in the existing market.
Diversification
The diversification strategy is considered to be an important and challenging step taken by any company. It
is resembled with the relationship between market and product. In other words, in case of entering into a new
market sometimes the companies are choosing the option of new products as a strategic step that can create high
possibilities as well as high risks for the organisation4. However, in case of the Harley-Davidson the company
requires a fresh start to expand its market and attract customers especially the young generation as far as possible.
1 Yin, N., 2016. Application of AHP-Ansoff matrix analysis in business diversification: The case of Evergrande Group. In MATEC Web of
Conferences(Vol. 44, p. 01006). EDP Sciences.
2 Vignali, C., 2015. Sustainable Management; Model Building for Decision Making. CULTUR-Revista de Cultura e Turismo, 6(3), pp.11-
18.
3 dos Santos, A. and Fukushima, N., 2017. Sustainable Product Service Systems Design: Tools For Strategics Analysis. Mix
Sustentável, 3(4), pp.149-156.
4 Loredana, E.M., 2016. The Use Of Ansoff Matrix In The Field Of Business. In MATEC Web of Conferences(Vol. 44, p. 01006).

6MARKETING ANALYSIS OF HARLEY DAVIDSON
It will foster a new image for the company that enables the young generation to buy the new product without
having any nostalgia about the past experiences. Moreover, Harley-Davidson also able to set up a new momentum
to the development of the new product with rapt enthusiasm and aggressive marketing.
Issues in 2007
Company’s point of view
In case of dealing with the growing challenge Harley-Davidson tried to diversify its products by
introducing new brand with the name of Buell. The Buell model aimed at younger customers and intended to
maximise the market capitalisation in a more robust manner. In this regard, it can be argued that the Buell model
was focused to develop the image of the product in such a way that would be separated from the parent Harley-
Davidson motorbikes extensively. Moreover, the Buell bike was built on the cutting edge technology used in
developing super bikes. The lighter, sportier and the cheaper form of Harley-Davidson in terms of Buell intended
to create a better market orientation. However, the product failed to encapsulate the market intensely.
In the light of creating an understanding regarding the product issue that created enormous damages to the
tradition of Harley-Davidson, it is important to suggest some recommendations that the company could implement
in 2007.
Penetration pricing strategy
Market penetration pricing strategy is a process that keeps the product price low beyond the anticipation of
the competitors. The purpose of this strategy is to attract new customers on the basis of low cost5. Harley-Davidson
should use such strategy to attract the young generations.
Digital marketing strategy
Digital market strategy still has relevance in 2018 where the social media marketing reaches its pinnacle. In
case of Harley-Davidson the company might use robust digital marketing strategy in 2007 based on the tradition
and brand value of the company but there was no such measures taken by the company
Social campaign strategy
Social campaign helps to engage the local communities drastically. Despite of knowing the benefits of
social campaigns Harley-Davidson did not care to implement such measures. As a result of that the company failed
to cope with the demand of the customers and fell behind in the competition.
Conclusion
Based on the above discussion, it can be argued that dearth of marketing analysis and strong believes in its
products ushered great problem to the extensive market capitalisation for the company. Harley-Davidson failed to
anticipate the demand of the customers and as a result of that did not create new customer base. The report rightly
pointed out these facts and opined a number of recommendations that the company could and can incorporate in its
marketing objectives that will be a remedy for the crisis. Therefore, the report concludes that there are still
opportunities for Harley-Davidson to reinvigorate its lost tradition.
5 Spann, M., Fischer, M. and Tellis, G.J., 2014. Skimming or penetration? Strategic dynamic pricing for new products. Marketing
Science, 34(2), pp.235-249.

7MARKETING ANALYSIS OF HARLEY DAVIDSON
Bibliography
dos Santos, A. and Fukushima, N., 2017. Sustainable Product Service Systems Design: Tools For Strategics
Analysis. Mix Sustentável, 3(4), pp.149-156.
Loredana, E.M., 2016. The Use Of Ansoff Matrix In The Field Of Business. In MATEC Web of Conferences(Vol.
44, p. 01006).
Spann, M., Fischer, M. and Tellis, G.J., 2014. Skimming or penetration? Strategic dynamic pricing for new
products. Marketing Science, 34(2), pp.235-249.
Vignali, C., 2015. Sustainable Management; Model Building for Decision Making. CULTUR-Revista de Cultura e
Turismo, 6(3), pp.11-18.
Yin, N., 2016. Application of AHP-Ansoff matrix analysis in business diversification: The case of Evergrande
Group. In MATEC Web of Conferences(Vol. 44, p. 01006). EDP Sciences.

8MARKETING ANALYSIS OF HARLEY DAVIDSON
Appendix
Figure 1
ANSOFF Matrix
(created by Jeff Coster et al)