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 Latinos, and to female riders. This paper will serve as a memorandum to the marketing director at Harley Davidson, Mark-Hans Richer, offering suggestions and strategies to increase market share.
Memorandum to Mark-Hans Richer, Senior Director of Consumer Segment Marketing:
To Mark-Hans Richer:
Clearly, as you are well aware, Mark-Hans Richer, there is a need for Harley Davidson to have the vision, the desire, the needed grasp on market dynamics and the energy to embrace new strategies and bring on a new phase. We're anticipating an exciting new outreach phase in our development that can provide the company with not just additional buyers and higher revenue, but to create a new image in the process of this needed expansion.
Everyone familiar with this market knows that Harley Davidson has as its highest priority, "…reaching customers in new demographic segments" (Redwine, 2010). The Dealer News press notice explains that you will direct marketing "…for all core and outreach consumer segments within North America, with a special focus on women, young adults and diverse markets" (Redwine).
Harley Davidson's Traditional Targeting and Positioning Strategy
We know that traditionally, when a big, loud, beefy motorcycle rolls by on an otherwise quiet city street, a passerby expects to see a 30-or-40-something male at the wheel, likely wearing a thick black leather jacket (with a biker club logo on the back), myriad tattoos, aviator sunglasses, engineer boots and a headband under the helmet. But in order to increase sales, the company needs to not escape from but provide alternative images to this stereotypical biker.
University of British Columbia marketing professor Paul Cubbon notes that there are several motorcycle brands that are in the same category as Harley Davidson, and if all those...
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