Harley-Davidson: Evolution of Marketing Strategy

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Case Details:

Case Code : MKTA014
Case Length : 14 Pages
Period : 1997-2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Harley-Davidson
Industry : Motorcycle Industry
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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No one can accurately predict the future. What I can predict with the utmost confidence are the things that won't change at Harley-Davidson - namely, our commitment to providing more great motorcycles; to enhancing the unparalleled Harley lifestyle experience; and to continuing to provide excellent financial performance.

- Jeffrey L. Bleustein, Harley-Davidson CEO¹

Introduction

August 31, 2003 marked Harley-Davidson's (H-D) 100th anniversary. H-D was one of the leading motorcycle manufacturers in the world. Forbes Magazine had named H-D as the Company of the Year² in 2001 for its record sales growth and earnings, and strong overall financial performance. The year 2002 marked the 17^th consecutive year of record revenue and net income for H-D. US consumers often waited as long as six to eighteen months to purchase a new H-D bike. In addition to its line of motorcycles marketed under the H-D and Buell³ brand names, the company also offered a complete line of aftermarket parts, accessories and general merchandise.

Background Note

Founded in 1903, H-D was the only major American player in the global motorcycle market. It had served in every major war of the past 100 years and received four Navy 'E' awards⁴ for excellence in wartime production. It was the war veterans who started the H-D biker culture. Veterans returned home from war and bought H-D because they had fallen in love with the bike and the company when they were at war. They started riding H-D with strong American pride.

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1] "Organizational Innovations in Harley Davidson Inc. – Transformation by Interactive stakeholder relationships," Working paper, Helsinki University of Technology, 2001.
2] Forbes Magazine, one of the world's leading business publications. The honor and accompanying article entitled 'Love Into Money' appeared in the 7th January 2002 edition of the magazine.
3] In 1993, H-D purchased a 49% stake in Buell Motorcycle Company to gain access to the performance motorcycle category and provided consumers with a lower cost entry point. In 1998, the company acquired the remaining Buell stock and began to consolidate operating results.
4] Navy 'E' award was put into effect by the Navy Bureau of Ordnance on July 1941as a recognition to push forward more swiftly with production of defense materials to arm Navy in all eventualities.


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