For Question #1
Harley-Davidson is one of the most popular, yet could be one of the dominant players when it comes to selling motorbikes. However, for the past year, the company’s stock price went down as well as the market share within the large motorcycle category in the U.S. market. Harley-Davidson wanted to reposition itself and its products due to various reasons. Primarily, the company was negatively affected by the recent issues about defective bikes that resulted to recalls of the company’s motorcycle models (Hagerty n.p.). Such event did not help Harley-Davidson in sustaining its market position, as it provides negative impression to its target customers. It might have impacted the company negatively in terms of the products’ quality. Therefore, by repositioning Harley-Davidson along with its products will help the company in regaining its industry reputation. It is essential that Harley-Davidson knows how to sustain its current market position so as to attract new customers. Based on the article, the company also wanted to reposition itself as it aims to appeal women and younger adults in general. Lastly, the company’s effort to reposition itself and its products because it aims to sustain its appeal to the older adults as its primary target market. Thus, the company would be able to use its “macho act” in order to sustain its old customers and add more techniques to its current marketing strategies. This is to provide appeal both to the younger adults, women, and the old customers, by providing a youthful and regain from previous defective bikes issue. Repositioning the company would also help them when it comes to turning the negative perception back to its previous dominance within the motorcycle industry.
For Question #2
Harley-Davidson employed various strategies when it comes to marketing its products. In order to increase its sales, the company has decided that it will increase its spending on marketing by 65% in order to prevent the further decline in its stock price and market share in the United States. This will be implemented starting year 2016 as part of its marketing strategy. For instance, the Scottsdale, Arizona giant dealership hired the Doobie Brothers during the opening of this Scottsdale-based dealership. Part of its strategy is to attract older customer by using women in swimwear as endorsers of the products. When it comes to attracting younger adults, the dealership in Manhattan applied a youthful image to its marketing strategy, to which it uses photos of Harley-Davidson motorcycles on its social media account, such as Instagram. Therefore, these three strategies; such as increase in marketing spending, using celebrities to endorse products, and penetrating the market through social media would help the company in repositioning itself and at the same time, introduce its new products to new and younger customers. On the other hand, the criteria that the company used in assessing their partners when it comes to entering the strategic relationship includes discussion of marketing spending plans with their partners in order to target older male in reliving their youth. Additionally, the partners must also able to introduce new motorcycle models with lower prices, so as to attract younger buyers. In fact, the Tribeca dealership offers Street models, which has a tag price of less than $9,000 and are purposely designed for younger set (Hagerty, n.p.). Lastly, there is a criterion that focuses on retaining the company’s tough-macho look when it comes to marketing the products.
Works Cited
Hagerty, JAmes R. "Harley-Davidson Tries to Rejuvenate Motorcycle Sales." Wall Street Journal. N.p., 12 Jan. 2016. Web. 25 Feb. 2016. <http://www.wsj.com/articles/harley-davidson-tries-to-rejuvenate-motorcycle-sales-1452552030?mod=djem_jiewr_MK_domainid>.
