For more than a century, Milwaukee, Wisconsin–based Harley-Davidson, the iconic motorcycle brand, has embodied everything American. In its heyday, the company had such a following that consumers would wait patiently for 18 months to get their hands on a new bike. Harley-Davidson motorcycles are oftentimes associated with Baby Boomer men, many of whom associate status with the ability to purchase the big, expensive, shiny chrome touring bike with a price tag of more than $30,000. Over the last few years, slumping sales have become a reality. With increased global competition from Italian rival Ducati and U.S.-based Indian bikes, the company is searching for ways to let go of its macho image by diversifying its segments toward millennials and women. Younger, urban motorcycle enthusiasts who are more interested in scooters and smaller, less expensive bikes have also contributed to Harley’s soft sales. To target a younger generation of riders, Harley-Davidson recently rolled out its biggest ever product revamp, which includes eight faster and lighter revamped cruisers. With plans to produce an electric motorcycle, the company recently made an investment in a small electric vehicle and components part maker. To generate interest from younger riders or rider wannabes, Ubisoft created a video game called The Crew 2. An open-road racing adventure, the game is “gender agnostic,” and like its hit predecessor, The Crew—with 12 million players—is expected to appeal to young male and female gamers, and potentially anyone with a passion for motor sports. Harley-Davidson hopes that the next generation of riders can revitalize its iconic American brand. Questions for Critical Thinking 1. Without alienating its traditional base of aging Baby Boomer men, how might Harley-Davidson continue to market its bikes to a younger and more diverse market segment? With a psychographic segmentation of “renegade” or “outsider,” how might the company also apply this? 2. With its goal of 2 million U.S. riders in the next decade, Harley is also focused on understanding “consumer life stages, cultural shifts and where people are in their riding journey, despite age or gender.” How might understanding these elements help Harley-Davidson?
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For more than a century, Milwaukee, Wisconsin–based Harley-Davidson, the iconic motorcycle brand, has embodied everything American. In its heyday, the company had such a following that consumers would wait patiently for 18 months to get their hands on a new bike. Harley-Davidson motorcycles are oftentimes associated with Baby Boomer men, many of whom associate status with the ability to purchase the big, expensive, shiny chrome touring bike with a price tag of more than $30,000.
Over the last few years, slumping sales have become a reality. With increased global competition from Italian rival Ducati and U.S.-based Indian bikes, the company is searching for ways to let go of its macho image by diversifying its segments toward millennials and women. Younger, urban motorcycle enthusiasts who are more interested in scooters and smaller, less expensive bikes have also contributed to Harley’s soft sales.
To target a younger generation of riders, Harley-Davidson recently rolled out its biggest ever product revamp, which includes eight faster and lighter revamped cruisers. With plans to produce an electric motorcycle, the company recently made an investment in a small electric vehicle and components part maker. To generate interest from younger riders or rider wannabes, Ubisoft created a video game called The Crew 2. An open-road racing adventure, the game is “gender agnostic,” and like its hit predecessor, The Crew—with 12 million players—is expected to appeal to young male and female gamers, and potentially anyone with a passion for motor sports. Harley-Davidson hopes that the next generation of riders can revitalize its iconic American brand.
Questions for Critical Thinking
1. Without alienating its traditional base of aging Baby Boomer men, how might Harley-Davidson continue to market its bikes to a younger and more diverse market segment? With a psychographic segmentation of “renegade” or “outsider,” how might the company also apply this?
2. With its goal of 2 million U.S. riders in the next decade, Harley is also focused on understanding “consumer life stages, cultural shifts and where people are in their riding journey, despite age or gender.” How might understanding these elements help Harley-Davidson?
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