Harley Davidson Marketing

Never before has any organization ever had such brand recognition as the shield and bar of Harley Davidson. There are hundreds, probably thousands of biceps, ankles, backs and shoulders permanently branded with the easily identifiable logo. These people pay money to have their bodies tattooed with this emblem, when the company should be paying them to advertise their company.

HISTORY OF THE COMPANY AND PRODUCT

Harley Davidson Company is the largest United States motorcycle and the only custom motorcycle company in the world. Arthur Davidson and William S. Harley were friends from early childhood. They shared a mechanical passion and a strong desire to join other motorcycle pioneers that were popping up across the United States. They rekindled their relationship while working at the same factory in Milwaukee. Together they began to study mechanics focusing on motorcycle engines. In 1903, William Harley and Walter, William and Arthur Davidson established the Harley-Davidson Motorcycle Company when they built the first three motorcycles in a shed in Milwaukee. This first motorcycle was a 3-1/8 bore and 3-1/2 stroke, single cylinder. 1909 saw the arrival of the first Harley Davidson V-Twin powered who became the trademark of Harley Davidson and even today's Harley are all in this shape.

The first bike was designed by Bill Harley and hand made by Walter Davidson. History contains a story that states that the first carburetor was made from a discarded tomato can. This first bike was a single carburetor machine and served its purpose, it ran. It was later modified and changed to actually put out three horsepower. Through the course of the next several years, the men were able to actually crank out several others bikes that affectionately carried the name "Silent Gray Fellow". It was this first bike that started them on the path to infamy.

In 1907, the company became Harley-Davidson, Inc and became prominent in selling their product to law enforcement agencies. Extra staff was hired, William Harley was working on receiving his engineering degree and leaders were beginning to take on a more professional approach to production of these beauties.

PRODUCT STRATEGY

Product design of the Harley-Davidson legendary bikes started out as a simple project. The first bikes actually looked like regular bikes with an engine mounted on them. One thing completely unique to only Harley-Davidson bikes is the sound. This stand out sound comes from the pistons being connected to the crankshaft in such a way that they both fire with 45 degree offsets before and after a full 360 degree revolution of the crankshaft, thus giving the sound of two 'pops' and then a pause, thus creating the unmistakable 'pop-pop' sound of the Harley-Davidson. It was further explained to me that the arrangement of the engine is such that it vibrates from front to back, which is unique only to Harley products. The competition bikes engines vibrate from side to side.

Product branding is infamous. As I indicated in my opening paragraph, the shield and bar grace many bodies across the continent. My research turned up no meaning behind the logo that is now highly recognizable. The trademarks of Harley-Davidson go hand in hand with the product logo. Highly recognized is the name Harley-Davidson and bar and

shield logo. These marks are often copied but never duplicated. They are trademarked and cannot be used by other entities. However, my experience has been that often times, you'll see a similar shape that immediately catches your eye. Clever marketing on their behalf, but upon closer inspection, it is merely a knockoff logo.

Warranties and guarantees that come with the purchase of a motorcycle exceed the imagination. Each bike sold carries a two-year full factory warranty. The customer then also has the option of purchasing an extended warranty of up to 7 years. Secondly, it is the expectation of Harley dealers that every Harley owner will only replace parts with Harley parts. Harley manufacturers work diligently to ensure that every Harley-Davidson motor part and accessory sold on the market today is manufactured exclusively for Harley Davidson. In as such, it is created and designed to deliver uncompromising style, quality, fit and performance. It is also recommended that only Harley authorized dealer's work on your bike after purchasing.

Product lifecycle on a Harley Davidson is amazing. These bikes are the workhorses of the industry. With proper care and maintenance, your bike can be expected to give you many miles of great riding experiences. The thing is though that most Harley owners don't keep their bikes for that long. They are always looking for the next new product on the market. That's why it is easy to purchase a used bike that looks like brand new. Harley is continuously upgrading their fleet of what they offer to the discerning rider. The company itself has used this brand loyalty to establish a niche market for themselves among bike enthusiasts. There exists a sort of brotherhood that separates them from the competition.

Also, Harley-Davidson offers its customers a one-year membership to a local riding group (I'll discuss this a little later on), books and magazines, private receptions at motorcycle events, insurance, emergency roadside service, rental arrangements for vacation trips. Available at all Harley dealers and on-line is the clothing line. What dedicated motorcycle rider would wear anything that didn't carry the Harley-Davidson logo?

PRICE STRATEGY

Harley Davidson bikes are not cheap. The company learned early on that they could not keep up with foreign competitors in terms of pricing. Manufacturing costs for the foreign competitors was considerably lower than here in the states. Statistics showed that Honda was able to produce a much lower priced product and along with their advertising, they were able to out pace Harley. With this in mind, Harley Davidson developed a strategy of value over price. Another example is that Japanese producers used plastic, while Harley continued to use steel. Strategically speaking Harley ensured that the demand does not exceed the production of their motorcycles. Speaking from experience, when you order a bike, you must wait 6 to 18 months for your bike to be built and arrive. Harley, in their future vision has created a market where they cannot meet demands, thus creating a must-have mentality for the Harley line.

Demographic Profile (2001-2005)

GENDER 2005 2004 2003 2002 2001

Male 89% 90% 90% 91% 91%