The Harley Davidson, Case Study Example

Harley-Davidson case is about the Harley Davidson chasing a new generation of customers. The old Baby Boomers have gotten older with a different set of needs while choosing not to use their disposable income on Harley Davidson motorcycles. The case discusses the needs of the new generation that warrants new product lines. The standard categories for Harley Davidson bikes are heavyweight bikes and sports bikes.  The new generation is more versatile and most active in different types of leisure activities along with a different taste than previous Baby Boomers customers.  The issues they face are finding a way to connect with the new generation while attempting to appeal the Baby boomers. The primary key issue is the Baby Boomers are aging with different set of needs because of health and limited activities based on aging. The male customer can no longer handle the long rides, the vibrating bikes, and the arthritis including joints that hurt. Harley Davidson has refused to move away from the white male older customer because they believe the trend would not last because two-thirds of sales are attributed to Baby Boomers. It is time for a new market for younger customers (Kelleher 2).

The Harley Davidson cased study discusses the marketing team finding new ways to bring the Baby Boomers back to the market. They have the key and disposable income to purchase the Harley Davidson motorcycle. However, more importantly they can return Harley Davidson back to the head of the pack. The number of people and the size of the past generation are very important to reestablishing the market shares for Harley Davidson including the older client ability to buy. According to Nesto(2013), the baby boomers are have a large portion of the household wealth controlling 70% meaning more disposable income. The Baby Boomers are spending those disposable dollars on healthcare industry of a new Harley Davidson bike. In addition, the price ranges are getting to expensive for the aging male that is on a new budget called healthcare.

The Harley-Davidson case study suggested the Harley Davidson lifestyle is outdated from the outlaw biker on an adventure. It is a symbol of easy riding, fun loving, and adventurousmotorbike riders. The motorcycles are unique that the organization attempted to trademark the “Harley sound. The marketing plan was ingenious because competitors never dared to emulate the Harley sound. Harley Davidson current customers are dwindling because the core business customers are aging Baby Boomers. The Baby Boomers have reached middle-aged lifestyle, which the Harley Davidson style of bike was not updated to fit the needs of the Baby Boomers. In order to understand Harley Davidson dilemma is the IBM downfall. IBM was the best at building mainframes, however, when the markets change to new PC technology them ignore the trend. IBM continues to build mainframes that ultimately lead to losing market shares and large employee layoffs. They should have changed to making microcomputers for the market needs. Harley Davidson is in that same bubble like IBM that needs to burst.

The Haley Davidson case study talks about the Baby Boomers groups that have the disposable income to purchase Harley Davidson. There is a definite need to market to the younger generation. There are other key issues such as the quality of the Harley Davidson needs to improve because the Japanese have taken a large portion of the Haley Davidson market shares just on quality. The Japanese did their homework by listening to the needs and wants of the old Harley customers and the new generation of younger customers. According to Veseth (2002), the Japanese have increased their share of the motorcycle market shares by 20 percent in 2008 and rising. The case study discussed other competitors that are taking over the market. The younger generation does not want the Harley Davidson antiquated models that do not represent speed. The younger generation wants speed Ducatis and Kawasakis, which brands are colorful and attractive to the eye for younger buyers.

The best marketing plan for attracting a younger set of customers for Harley Davidson is twofold. The first step in attracting the younger generation is creating a Harley Davidson bike in the same traditional but with color changes. The do not have to lose the style of Harley but they have to package the Harley differently. The best example is a Harley Davidson that still has the black and chrome theme however for the younger crowd that black can be mixed with red or blue. It is about attracting younger generation with colors including adding new technology such as phone messaging, texting, and adding other new technology keeping up with the new millennium. The best example of this new bike for the younger generation would be a Harley Bike that has an Ultimate Fighting Championship(UFC) seat cover or a chrome pipe with UCF logo on it. Here is the proof concerning UFC customer base. The younger generation is following UFC at 48%, whichis the eight largest following. The numbers show that sixteen percent of Americans are following the fighting championships with 7^th place in most fans in sports (Alexander 1). In addition, the Harley Davidson marketing team should market to the younger generation following the Mixed Martial Arts(MMA). The new generation is the new James Dean crowd that is following martial arts instead of motorcycles. However, Harley Davidson can collaborate with the MMA using creative campaigns that launch products giveaways at the events.

The secondmarket that Harley Davidson should pursue is the Hispanic audience because they represent large booming populations that are reaching millions. The combination of the Hispanic market along with soccer customers would boom the Harley Davidson sales. There is a new trend of customers increase in the Hispanic audience following soccer from 37.7 million to 50. 7 million and rising (Alexander 1).

The elements of the marketing strategy will target the MMA, UFC and Hispanic crowds because they represent combined the largest group of potential youthful clients. Our goal is to position ourselves with relationships with MMA, UFC, and Hispanic business partners to push the new Harley Davidson brand. The motorbikes will have a more sports oriented style because the new generation is flocking to biking competitions but not Harley Davidson because they do not have racing bikes inventory. The strategy is to create a new slick Harley Davidson line that appeals to new colorful and streamline younger generation. The marketing plan would market the new generation by creating a new Sportster in a price range that the new generation can afford. In addition, the Sportster would have city and road racing model to attract a larger demographics.

The Sportster would have a street version for the youths just like skateboard competitions brand and the street skateboard brand. They can emulate the success of companies like Mule that builds beautiful bikes for the younger generation. This strategy will not only bring the younger generation to the market but the Baby Boomers would have another version of Harley Davidson that might create a new phenomenon.

The marketing approach would be integrated with different tactics. The advertising would include the Sportster bikes with Harley Davidson emblems, which would bring more customers from the racing community to Harley Davidson. The advertising would be televised which new target customers would want to purchase the new slick looking chrome Harley Davidson models. New demonstrations in the Harley Davidson showrooms that include innovative products that make the younger generation eager to purchase on the spot. The sales displays will remind the new age customer that Harley Davidson will finance any person with a long-term plan to keep the payments low. The promotional spokesperson would be from the market that is known to the younger generations. For example, the UFC stars like Anderson Silvia would be a spokesperson for Harley Davidson. The strategy would bring another class of customers to the showrooms and the sales floor. The UFC has millions of followers around the world; Harley Davidson can give away a new Sportster model at each match that has TV coverage. This would be a dual marketing approach with product placement and television sales from exposure.

Many of the UFC and MMA fighters have to supplement their earnings. The Harley Davidson logo could become the new advertising magnet with MMA shirts the Harley Logo, UFC Belt with Harley Logo as sponsor. The power move in marketing with Harley Davidson is position themselves with diverse contracts with ESPN, XBOX,SportsNet, and Fox Sports. The integrated marketing exposure could breathe new life into Harley Davidson. The integrated marketing strategy for Harley Davidson would be connecting the younger generation in Social Network sports environment.

Here are the reasons why Harley Davidson should purse this MMA and UFC markets. According to Brausen(2014), the Social Networking environment with sports enthusiast have reach astronomical numbers such as broadcasting in 28 languages, 50 billion impressions of hits in the Social Network arena, 1.6 million Twitters followers. These phenomena would benefit the marketing efforts of Harley Davidson. Harley Davison should utilize Anderson Silvia as the spokesperson. When Anderson Silva has his last match, the fight reached 100% of 11. 5 million followers(Brausen 2). The marketing strategy is genius because the sports crowd includes the pulse of the younger generation, which means global advertising to the entire globe. The relationship with major UFC and MMA starts would set a new pattern in this market. At this time, most athletes in professional basketball and football have multiple streams because of the adverting from sports products. However, the difference with UFC and MMA athletes they do not have lucrative product endorsements. In addition, that products that can be branded with advertising on the gloves, t-shirts, towels, robes, head bands and even the logo on the UFC belt.

The pricing strategy should be marketed letting the customers understand that Harley Davidson is affordable for everyone. It is no surprise that the Harley Davidson customers are aging which is not excuse for Harley Davidson. They knew that the customer base was getting older 20 years ago. They should have been spending Research and Development (R&D) funding on the futuristic models. Most other markets in the in world have made adjustments to the economic buying power of the baby boomers. The aging population is fast approaching their later years and spending slows down, as they get older because of knee pain, health problems and less risky lifestyle. The adjustment should be with some of the price ranges that would help the new generation and the older generation. Harley Davidson needs to set some new price ranges like Mercedes. Mercedes has a range that is affordable for middle-class and upper class as well. The Harley Davidson market campaign needs to change the pricing structure. The average twenty-year-old client has some disposable income based on credit cards. Harley Davidson can send applications to the younger generation with pre-approved down payments and credit limits to bring the young customer into the store. The pricing has to be lower enough to the younger client to walk out the store with a new motorcycle. The pricing would allow Harley Davidson to reach a new line of young customers because they have a chance to qualify while in the showroom. The older generation who is on a budget might consider a purchase if the Harley Davidson had a lower, mediums, and higher end selections for the new customers. The one price fits all male riders who are going the buy the name of Harley Davidson regardless of price those days are gone forever. Harley Davidson needs to make the pricing change before it is too late the competitors already have made the change.

Worked Cited

Alexander,M. (2012).Fan data shows bright future for the UFC combat sports. Retrieved October 31, 2014 from http://www.bloodyelbow.com/2012/10/4/3451586/mma-analysis-fan-data-shows-bright-future-ufc-combat-sports

Brausen, B. (2014).How UFC is throwing big blows  on social media. Retrieved October 31, 2014 from http://www.toprankblog.com/2014/01/ufc-social-media/

Kelleher, J.B. (2013). Analysis: As boomers age, Harley hunts for younger riders. Retrieved October 31, 2014 from http://www.reuters.com/article/2013/06/21/us-harleydavidson-boomers-analysis-idUSBRE95K0GU20130621

Nesto, M. (2013).Baby boomer trade: Aging and buying big expensive toys. Retrieve October 31, 2014 from http://finance.yahoo.com/blogs/breakout/baby-boomer-trade–aging-and-buying-big-expensive-toys-163127575.html

Veseth, M. (2002).The rise of global economy. Chicago, IL. Fitroy Dearborn Publisher