Case Study of Harley Davidson's Marketing Strategy

2776 Words Feb 3rd, 2018 11 Pages
The company is based in Milwaukee and competes largely in the heavyweight and superheavyweight bike segments. The company markets its motorcycles in branded dealerships. According to the 2010 Annual Report, the company earns 67.5% of its revenue in the United States and 75.5% of its revenue from motorcycles. Parts and accessories account for 17.9% of total sales. According to the company's website, most of the parts and accessories sold are new products that are used for customizing the bikes. There is no indication that the company has a substantial aftermarket parts business.

According to MSN Moneycentral (2012), the company earned net income of $599.1 million in the 2011 fiscal year, from revenue of $5.311 billion. Both figures represent a significant improvement over the prior two years, but are well below the company's highly successful 2007 and 2008 fiscal years. Harley Davidson is currently struggling to maintain sales momentum, as its core target market of baby boomers is entering its senior years, causing many to give up their motorcycles. The subsequent Generation X is too small and too young to make up for this difference. Harley needs to find additional sources of revenue to help stem what could well be a decade of more of challenging external demographic conditions. To this end, it is proposed that the company enter the aftermarket parts market. By convincing both…

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