Current Marketing Strategies
The Harley-Davidson Incorporated has been on top of the charts of motorcycle sales for years and possibly the future. Recent, presentations of that by the company shows that the company has always achieved the growth in sales through the years. The demand for big bikes has risen through the years, dwindling demands for the other types of bikes as a result. The secret to their success has been a puzzle to every manufacturer in the industry. Engaging in a good strategy of taglines, the company has achieved elite status in the industry as one of the only companies that remained on top for as long.
The best part is, the investors don’t have time to complain. (Cherng) The motorcycle company has found one of the best niches in any of the industries present now. With rising demand for their products despite of the fact that the quality of life continue to drop especially for the countries of Asia, the luxurious bike can be clearly qualified can be easily classified as a Giffen good. Giffen goods are goods that do not behave normally in the current laws of supply and demand.
These goods are normally the goods that have demands rising even though the price gets higher. (Moffatt) Demands for goods usually decline when its price gets higher, but this type of good does the opposite. The marketing strategies of Harley-Davidson, Inc. involves three things: Formation of a community, tie-up with international companies, and the taglines. The taglines have been on the part of the advertisement and are not secrets to their success. However, one of the reasons lies in the formation of a community of the owners.
(D’Souza) By doing so, the company would not have to pay for additional costs of advertising, because it’s the community that accomplishes this task. Through the invitations of friends and relatives, the owners advertise the products that are offered by the company. The tie-up with the international companies would ensure that Harley-Davidson would not lose their market shares on that specific country. (Harley-Davidson) Example of which is the tie-up of Harley-Davidson with Zongshen Motorcycle Group in 2004. Through time, Harley-Davidson products are not only preferred by men.
Recent data shows that women are becoming favored over the choice of Harley-Davidson as their motorcycles. (“Harley-Davidson, Inc. Unaudited Historical Data”) It seemed like the company is capturing not only the male market, but also the females. In addition to that, the mean age of consumers continue to get older and older through the years, an indication that Harley-Davidson motorcycles are indeed Giffen godds; goods that are bought as symbols of something they believe in. In this case, the Harley-Davidson motorcycles may be believed to be a symbol of one’s generation.
The company of Harley-Davidson is not only concerned with the production of motorcycles, but also with the production of accessories and general merchandise. These products also comprise much of the income produced by the company every year; without these branches, the high, record-breaking incomes of the company would not have been achieved. Keeping in mind that the company also has other branches of goods, the company also offers financing services, in which the good would be paid in a monthly basis with interest.
This move gives the customer the advantage of not paying fully on time, since not all customers have the same income and money that they can use to pay in full. This way, the customers would have the luxury of having their own motorcycle, and would just pay the company on a monthly basis, in other words, many payments of small amounts. Not only would the customer have time to save up for the payment of that month, but it would also be a good marketing strategy on the part of the company, since more customers prefer to pay monthly for a vehicle that they want, much like that of the financing offers of cars.