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Marketing Analysis of Harley Davidson

Harley-Davidson Motor Company is a dominant producer of heavyweight cycles throughout the world. Although it is an American company, 30% of its products are exported mainly to Japan and Europe. The other 70% of their products, consisting of motorcycles, parts, accessories, and MotorClothes, are in high demand, the motorcycle demand actually exceeding the supply. All their products are sold through dealers, who Harley has worked with to improve showrooms, facilities, and employee performance to give Harley an exclusive feel. Merchandising plays a big role in their promotional strategy, where 70% of their MotorClothes are sold to non-bikers. Harley-Davidson products are also promoted through Harley magazine, which is also distributed in different languages, and rallies usually with free concerts made to adapt to local culture both in the U.S. and abroad. Harley-Davidson's advertising strategy focuses heavily on the Harley lifestyle, not just the motorcycles.

Harley-Davidson was started in 1903, where they sold 150 units of their 7 horsepower 45


degree v-twin engine. This is much different to where they are now, selling 95,800 units in 1994. Between 1903 and 1994, though, the company went through 2 owners and much turmoil. Harley-Davidson survived the depression in 1933 by supplying bikes for the U.S. Troops. Sales steadily rose and in 1969 the company was bought out by the American Machine and Foundry, who tripled the output of motorcycles, and gained 78% of the market, but sacrificed on quality and it showed in 1980, where their market share was down to 30%, a 48% drop in 11 short years. In 1981, the company, on the brink of bankruptcy was bought out again by Harley top executives, and with a 100 million dollar loan, they improved their product quality, and created a new V-twin engine that provided increased reliability. They also charged the Japanese in 1983 for selling cycles below cost, to take advantage of Harley's batt!

le-stricken state, and in turn were imposed a 5 year tariff of 49% on imports by the U.S. government. This gave Harley a noticable price advantage, and Harley

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Approximate Word count = 711
Approximate Pages = 3 (250 words per page double spaced)


  

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