Significant Issues

Harley-Davidson was regularly producing bikes ,nicknamed the

‘silent Grey fellow’in 1907, Harley-Davidson was incorporated as a
company and produced 150 bikes in first year. Inspired by the
success of their initial efforts, other family members assisted the
partners, and an upgraded version of bike was developed by
1909.

This model had a new engine, know as the ‘V-twin’ (because the
engine had two cylinders arranged in a ‘v’ angle)

The company kept its focus on innovation and up-gradation

technologies, introduced front-brake system and the unique
teardrop-shaped gas tank.these innovation and sales strategy
helped beat competition successfully.

In 1916,Harley-Davidson took another step and launched

The enthusiast’ magazine for its customer.the idea was to provide

its customers with the latest information on the company
products and the motorcycle industry.

In 1952, the company launched the K-model in the market.harley-

Davidson became the sole manufacture of motorcycles in the
countr.

in 1950s and 1960s Harley-Davidson,s popularity and sales grew

it out a new range of SUPER-BIKES –the sportster,Duo-
Glide,Electra-Glide and super- Glide.These loud and heavy-weight
bikes soon became the symol of counterculture in the US.

In 1983 the company launched a trademark –licensing

programme for its dealers, which helped the company eliminate
the problem of bootlegged merchandise.
HD also produced a number of models in other than ,grey,
colours. This helped company to attract repeat purchase .

What factors have been responsible for Harley-Davidson

becoming a cult.

In 1990 when H-D realised that a lot of women were buying its
motorcycles and merchandise, the company began offering
products to suit the tastes of its new customer profile

Anyone interested in motorcycles is definitely familiar with name

Harley –Davidsion.the idea of innovation became popular.william
Harley and Arthur Davidson opened a small moter shed in 1903.

Harley- Davidson was quite aware of the fact that its brand was
its biggest strength and decided to leverage the same for
boosting growth.the enthusiast magazine had contributed to
enhancing the customer experience the magazine was also
provide a platform for HD customers to share their views &
opinions.

Every HD owner was given a one-year free membership to

HOG(Harley Davidson Group) so 33000 members joined the group
in a short time.Hog was to involves customers in a way that
would forge stronger relations & bond between the customers and
the company.Through this itsorganised several bikes rallies &
tours.

HD organised a three-day dealer-tanning programme, which came

to be known as Harley- Davidson University. Through this tranning
program they trained his dealers to develops their bussiness and
communication and leadership skills to be able to sales more
effectively.
Tattooed motorcycle enthusiasts travelling across the US group
on their HD chopper Peter Fonda blockbusters movie Easy Rider
epitomised.The culture of bikers are raised fonda to iconic status
rivalling that of his legendary henry fonda motorbikes in black
leather gear became an image increasing associated with the
nature.

HD produced new ranges of superbikes like the Sporter,Duo-

Glide,Electra-Glide and Super-Glide.These loud & heavy-weight
bikes soon became the symbol of counterculture in US.

Positioning & Secret of the fanatical customer loyalty to

HD.

The part of Harley-Davidsons success was due to Davidson’s

innovative idea of setting up a network of dealers that would sell
only H-D motorcycles. The company was able to attract large
number of dealers to this network as it promised them a
handsome share in profits and also offered product guarantees.

HD realised that alot of women were buying its motorcycles and

merchandise the company began offering products to suit the
taste of its new customer profile for the different colors that was
liked by women.

HD had also expanded into niches that were looking for other
than heavyweight vehicles from the company such as
customised touring ,sports touring,and sport-street motorcycle
categories.

HD ensured that production did not exceed the demand for its
motorcycles. This led to an increase in demand to such an extent
that in the late 1990s customers had to wait for six months to
eight month for buying HD motorcycle.

HD motorcycles craze and ‘halo’ was such that old model were
fetching prices 25%-30% higher than the list price for the new
models.
The company worked on the premise that the customers
experience transcended the product.Product is no doubt the core
but HD sold its customers the total ‘HD riding experience’.