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	Harley Davidson Motorcycles

Way back in the year 1970, Harley Davidson motorcycles were the only heavy weight motorcycles produced in the US. As they catered to the niche market, these motorcycles immediately dominated the motorcycle sales. This left light to medium-weight market open to their competitors. The Japanese quickly entered this market and captured it quickly. This made Harley Davidson change their marketing strategy to fulfill the requirements of its customers.

PRODUCT- When AMF (American Machine and Foundry) took over Harley Davidson, they increased the production three times but lowered the product quality. This damaged Harley's reputation as people considered these bikes to highly unreliable. To prevent financial disaster, they improved the quality of the product. The Harley's facilities and production process were enhanced significantly. They introduced statistical controls and employee involvement programs for quality improvement. They used the latest V-twin engine for better reliability. They contacted their customers for their feedback. They focused a lot more on sales of parts and accessories, and started a clothing line.

PROMOTION- The company started promoting their new improved product. They started a Harley Owners Group (HOG). This enabled the company to develop closer relationships with customers, involving HOG members in Harley Magazine and supported the weekend rallies and with concerts most of the times.

PRICE- When confronted with financial disaster, Harley tried to control their costs. Downsizing the company, reducing salaries and perks, and improving relationships and contacts with a handful of suppliers were some of the methods adopted by the company. They introduced the just-in-time delivery approach. Harley's management requested the government to impose a stiff tariff on imported motorcycles, since they thought that Japanese competitors were selling inferior quality motorcycles. This allowed Harley's sales team a chance to regain the lost ground and become competitive.

PLACE- Harley started overseas expansion to help export growth. They brought out Harley Magazine in foreign languages and stageed beer and band fests modified as per the local culture. These Harleys were manufactured only in their 2 American plants and did not start any overseas plants. They adopted the view that by restricting production, it is possible to maintain high quality.

1. They have started stressing more on sales of parts and accessories. Most of their customers want their bikes customized to tell the world their individuality. Their image changed from "bad-boy" in the 1970s to a route to express yourself and flee from the everyday pressures. As a result, the profile of their customers changed. Their Motor clothes apparel line brought in new type of customers who didn’t necessarily drove Harleys. These strategies proved successful and their sales have increased.

2. As a section of population is not interested in waiting for a product, Harley Davidson could have lost some sales. There may not be decrease in the level of quality if Harley decided to start more production units. Taking this step can increase their sales by fulfilling the demands of their customers quickly. Besides a few more plants can reduce the costs making the bikes more affordable. This will increase their customer base.

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