Which segment would you suggest they target and what strategic advice would you give in targeting this particular segment? CHAPTER 6 • GLOBAL INFORMATION SYSTEMS AND MARKET RESEARCH171THE CULTURAL CONTEXTBikers Go “Hog" WildIn 2013, Harley-Davidson (H-D) celebrates its 110th anniversary.The company has grown impressively during its first 100-plus years ofoperation; as the second decade of the twenty-first century gotunderway, H-D posted revenues of $4.1 billion. Savvy export marketingenabled H-D to dramatically increase worldwide sales of its heavy-weight motorcycles. From Australia to Germany to Mexico City, H-Denthusiasts were paying the equivalent of up to $25,000 to own anAmerican-built classic. In many countries, dealers put would-be buyerson a 6-month waiting list because of high demand.H-D's international success came after years of neglecting overseasmarkets. The company was also slow to react to a growing threat fromJapanese manufacturers. Early on, the company used an export-sellingapproach, symbolized by its underdeveloped dealer network. By thelate 1980s, after recruiting dealers in the important Japanese andEuropean markets, company executives discovered a basic principle ofglobal marketing. "As the saying goes, we needed to think global butact local," said Jerry G. Wilke, vice president for worldwide marketingduring that time. Managers began to adapt the company's interna-tional marketing to make it more responsive to local conditions.In Japan, for example, H-D's rugged image and high quality helpedmake it the best-selling imported motorcycle. After learning that ridersin Tokyo consider fashion and customized bikes to be essential, H-Dopened stores specializing in clothing and bike accessories. RecentlyH-D has begun catering to Japanese women who enjoy riding (seeExhibit 6-3). Today, Japan generates 5.6 percent of company revenuesfor motorcycles, parts, accessories, and merchandise.In Europe, H-D discovered that an "evening out" means some-thing different than it does in America. The company sponsored a rallyin France, where beer and live rock music were available until midnight.Recalls Wilke, "People asked us why we were ending the rally just asthe evening was starting. So I had to go persuade the band to keepplaying and reopen the bar until 3 or 4 A.M."Today, the company has a clear picture of its core Europeancustomers; as Klaus Stobel, European affairs director for Harley-Davidson Europe, explained, "The people who buy Harleys in Europeare like the people who buy BMWS in the U.S. They are dentistsand lawyers." H-D currently ranks second in overall market share forthe European heavyweight motorcycle segment; in 2010, Europeaccounted for 16.7 percent of global revenues.The global economic crisis has cut into worldwide sales. Thereason is straightforward: Credit is tight and, for many people, amotorcycle is a discretionary purchase, not a necessity. In 2010, thecompany shipped 210,494 motorcycles, down from about 350,000units in 2006. Despite the current slump in demand, in some yearsthere are not enough bikes to go around. This is a situation thatseems to suit company executives just fine. As former H-D presidentJames H. Paterson once noted, "Enough motorcycles is too manymotorcycles."Sources: Harley-Davidson Annual Report, 2010; Stephen Wisnefski and Susan Carey,"Credit Squeeze Threatens 'Hog' Sales," The Wall Street Journal (October 17, 2010),p. A1; Jeremy Grand and Harold Ehren, "Harley-Davidson Eyes Europe," Financial Times(July 28, 2003), p. 17; Kevin Kelly and Karen Lowry Miller, "The Rumble Heard Roundthe World: Harleys," BusinessWeek (May 24, 1993),. pp. 58, 60; Robert L. Rose,"Vrooming Back: After Nearly Stalling, Harley-Davidson Finds New Crowd of Riders,"The Wall Street Joumal (August 31, 1990), pp. A1, A6.Exhibit 6-3 A top priority for chiefexecutive Keith Wandell is expandingH-D's global presence. Harley-Davisonis diversifying its customer base bytargeting female riders in key marketssuch as Japan. New dealerships havebeen added in India, Russia, Mexico,and other emerging markets. Today,Harley has more full-service dealershipsabroad than in the United States. PlansROcall for international sales to accountfor more than 40 percent of total salesby 2014, up from 25 percent in 2006.Source: Charles Pertwee/Bloomberg News/Getty Images.

Question

Which segment would you suggest they target and what strategic advice would you give in targeting this particular segment? CHAPTER 6 • GLOBAL INFORMATION SYSTEMS AND MARKET RESEARCH171THE CULTURAL CONTEXTBikers Go “Hog&#34; WildIn 2013, Harley-Davidson (H-D) celebrates its 110th anniversary.The company has grown impressively during its first 100-plus years ofoperation; as the second decade of the twenty-first century gotunderway, H-D posted revenues of $4.1 billion. Savvy export marketingenabled H-D to dramatically increase worldwide sales of its heavy-weight motorcycles. From Australia to Germany to Mexico City, H-Denthusiasts were paying the equivalent of up to $25,000 to own anAmerican-built classic. In many countries, dealers put would-be buyerson a 6-month waiting list because of high demand.H-D's international success came after years of neglecting overseasmarkets. The company was also slow to react to a growing threat fromJapanese manufacturers. Early on, the company used an export-sellingapproach, symbolized by its underdeveloped dealer network. By thelate 1980s, after recruiting dealers in the important Japanese andEuropean markets, company executives discovered a basic principle ofglobal marketing. &#34;As the saying goes, we needed to think global butact local,&#34; said Jerry G. Wilke, vice president for worldwide marketingduring that time. Managers began to adapt the company's interna-tional marketing to make it more responsive to local conditions.In Japan, for example, H-D's rugged image and high quality helpedmake it the best-selling imported motorcycle. After learning that ridersin Tokyo consider fashion and customized bikes to be essential, H-Dopened stores specializing in clothing and bike accessories. RecentlyH-D has begun catering to Japanese women who enjoy riding (seeExhibit 6-3). Today, Japan generates 5.6 percent of company revenuesfor motorcycles, parts, accessories, and merchandise.In Europe, H-D discovered that an &#34;evening out&#34; means some-thing different than it does in America. The company sponsored a rallyin France, where beer and live rock music were available until midnight.Recalls Wilke, &#34;People asked us why we were ending the rally just asthe evening was starting. So I had to go persuade the band to keepplaying and reopen the bar until 3 or 4 A.M.&#34;Today, the company has a clear picture of its core Europeancustomers; as Klaus Stobel, European affairs director for Harley-Davidson Europe, explained, &#34;The people who buy Harleys in Europeare like the people who buy BMWS in the U.S. They are dentistsand lawyers.&#34; H-D currently ranks second in overall market share forthe European heavyweight motorcycle segment; in 2010, Europeaccounted for 16.7 percent of global revenues.The global economic crisis has cut into worldwide sales. Thereason is straightforward: Credit is tight and, for many people, amotorcycle is a discretionary purchase, not a necessity. In 2010, thecompany shipped 210,494 motorcycles, down from about 350,000units in 2006. Despite the current slump in demand, in some yearsthere are not enough bikes to go around. This is a situation thatseems to suit company executives just fine. As former H-D presidentJames H. Paterson once noted, &#34;Enough motorcycles is too manymotorcycles.&#34;Sources: Harley-Davidson Annual Report, 2010; Stephen Wisnefski and Susan Carey,&#34;Credit Squeeze Threatens 'Hog' Sales,&#34; The Wall Street Journal (October 17, 2010),p. A1; Jeremy Grand and Harold Ehren, &#34;Harley-Davidson Eyes Europe,&#34; Financial Times(July 28, 2003), p. 17; Kevin Kelly and Karen Lowry Miller, &#34;The Rumble Heard Roundthe World: Harleys,&#34; BusinessWeek (May 24, 1993),. pp. 58, 60; Robert L. Rose,&#34;Vrooming Back: After Nearly Stalling, Harley-Davidson Finds New Crowd of Riders,&#34;The Wall Street Joumal (August 31, 1990), pp. A1, A6.Exhibit 6-3 A top priority for chiefexecutive Keith Wandell is expandingH-D's global presence. Harley-Davisonis diversifying its customer base bytargeting female riders in key marketssuch as Japan. New dealerships havebeen added in India, Russia, Mexico,and other emerging markets. Today,Harley has more full-service dealershipsabroad than in the United States. PlansROcall for international sales to accountfor more than 40 percent of total salesby 2014, up from 25 percent in 2006.Source: Charles Pertwee/Bloomberg News/Getty Images.

Accepted Answer

Market segmentation refers to the activity of grouping the entire customer market into smaller and…