Harley Davidson was able to turn around its strategy after 1981 because of then President of US, who raised the tariffs on large Japanese motorcycles.
Helpful was also strategy of executives who decided to improve the quality of products.
2. What ideas and philosophies does Harley Davidson introduce?
Harley Davidson created an innovative promotion strategy of selling the idea of community and lifestyle to its customers. The company targeted a free spirited people who embodied the
American values of freedom and liberty.
3. Using the 4P framework, explain how Harley Davidson achieves its intended competitive position.
Product: Company started providing customers a variety of their products (different models and colors of bikes).
Besides Harley Davidson always developed, they made high-quality and appealing products. Company also comprised four segments which made their products better and more competitive. Their improved production process by introducing
'Materials as Needed". They also came up with an idea of entering brand image into garments and other accessories.
Harley Davidson offered also customized motorcycles to its customers.
Pricing: H-D focused on 'value for money' pricing. They used materials which could be rebuilt. Company was also careful about quantity of products they made. They produced so many they really could sell. Company developed closer relationships and contracts with only a limited number of suppliers. Management of H-D requested also the US government to levy a higher tariff on the imported motorcycles.
Distribution (Place): In 1993 a sales service agreement was developed by the company and the Dealer Advisory Council. This agreement governed the relationship between H-D and its dealers. They also sold their products to the Overseas Military Sales Corporation.
Promotion: The products of H-D were sold to retail
customers