Harley Davidson Case

The economics of the business are in a constant state of transition. Publishers have to be ready to adapt their business to what their audience and advertisers want. The ones that are unwilling to adapt will not survive. There are a number of companies taking very innovative steps and trying new things. That is the best, most practical approach; if any one company had figured it out, everyone else would be copying the model.

Harley Davidson faced problems on positioning in its core market segment, that is, those middle aged male baby boomers, since Harley try to gain business from new segments by targeting on female and young users, with new bike that acquired features that is small in size, which totally contrast with the products being offered by Harley previously. When Harley tries to change from only targeting middle age male baby boomers into targeting female and young users in addition, Harley needs huge amount of financial sources, use for research and development (R&D) on the new product, as well as for conducting marketing communication with the new targeted prospects.

Compounding the problem, traditionally millenials (20-30 year olds) have shown a desire to differentiate themselves from their parents...meaning, the liklihood of them purchasing a big Harley cruiser when they're 30 or 40 isn't too good. Harley is getting great reoccurring sales from its current customers, but isn't gaining any new customers. Harley understands the baby-boomer consumer incredibly well, in a holistic sense, but to grow and thrive, they must create a deep emotional connection with younger consumers." if Harley tries to infuse youth into its core brand, it risks alienating its loyal core riders, and attempts like the V-Rod have shown that these efforts don't seem have the traction necessary to bring younger riders into the fold.