Product details

In 2005, the $5.34 billion Harley-Davidson is the leading motorcycle manufacturer in the US with over 50% market share. Hailed as the classic example of a cult brand, Harley depends on innovative products, premium pricing, unique retail environment and experiential and relationship marketing to maintain its status as a cult brand. It enjoys huge brand loyalty. Deeply connected to American culture and values, Harley has become a symbol of rugged individualism, freedom and rebellion. Harley has cultivated its image and relationships over a long period of time and effectively wrapped itself around its customers using multiple marketing techniques. Every touch point - the product itself, its distribution channels, sales, customer service, design, communications and brand extensions - has been harnessed to enhance the company''s brand identity. Harley has historically controlled the demand-supply gap of its products to create a scarcity value for the brand. With the changing demographic and market scenario, Harley is slowly changing its strategy on all fronts. In 2005, all eyes were trained on Harley as it made the transition from operating in the unique, high growth, selling environment that it experienced in the 1990s and early 2000s, to one that is sustainable on an ongoing basis. In recent times, the scarcity value has reduced as a result of its aggressive strategy to match demand and supply. Although the company''s efforts to correct the demand-supply gap are going in the right direction, they are also leading to rising dealer inventory and reduced value of pre-owned vehicles. The case discusses: (1) Harley''s product development strategy; (2) brand merchandising; (3) pricing; (4) its promotion strategy; (5) the Harley Owner Group (HOG); and (6) its designer stores, which promote lifestyle experience.