Introduction:
In 1903, H-D was established by William S. Harley (William) and Arthur Davidson (Arthur) at Milwaukee in the US Milwaukee
Arthur, who was William's childhood friend, also started working at a young age. Both of them were mechanically inclined. They manufactured their first motorcycle in a 10x15 feet wooden shed with a hand-written sign on the door that read, 'Harley-Davidson Motorcycle Company'. The first product launched was a racer bike. The company's operations expanded rapidly and the two were later joined by Arthur's brother Walter.
Arthur, who was William's childhood friend, also started working at a young age. Both of them were mechanically inclined. They manufactured their first motorcycle in a 10x15 feet wooden shed with a hand-written sign on the door that read, 'Harley-Davidson Motorcycle Company'. The first product launched was a racer bike. The company's operations expanded rapidly and the two were later joined by Arthur's brother Walter.
In 1906, H-D started a new 28x80 feet factory at
Chestnut Street , which later came to be known as
Juneau Avenue
. By then, the company's employee strength had increased to six full-time employees. In the same year, the company also produced its first motorcycle catalog. On September 17, 1907, the name 'Harley-Davidson Motor Company' was incorporated.
Chestnut Street , which later came to be known as
In 1908, H-D sold the first motorcycle for police duty to the Detroit Police Department in
In the year 1969, H-D was taken over by the American Machine and Foundry (AMF). During this period, the production of motorcycles increased by more than 300 percent to 14,000 motorcycles per annum. However, the quality of the motorcycles was one aspect which was totally ignored. Adding to H-D's problems, Japanese manufacturers began flooding the market with high-quality, low-priced light to medium-weight motorcycles in the 1970s at a time when H-D was manufacturing mainly heavy-weight motorcycles. The company earned a bad name for poor quality products. Coupled with the competition from the Japanese companies brought H-D to the verge of collaps
On January 17, 2007, USRiderNews named Harley-Davidson Motor Company's (H-D's) 'Softail Custom' motorbike as the "Best New Nostalgic Bike of 2007".According to Scott Cochran, Editor of USRiderNews, "The new 2007 Softail Custom recalls the looks of those B-movie bikes of the 1960s. Ape hanger handlebars, heavily stepped king-and-queen seats, padded sissy bars and wide forks with 21-inch front wheels all speak volumes to the 'Easy Rider' set. But this outlaw comes in armed with Harley's most modern and powerful standard engine to date - the Twin Cam 96 plus the bonafide easy rider - Harley's 'Softail' chassis." Founded in the year 1903, H-D started its business as a manufacturer of heavy-weight motorcycles, which had an engine displacement of 651cc or above.
H-D also produced a full range of motorcycle parts, accessories, clothing, and general merchandise. The company focused on traditional styling, design, simplicity, durability, and quality. It launched new models regularly, customized according to the needs and requirements of customers. H-D's marketing campaign aimed at shifting the owners of the company's motorcycles to bigger and more expensive motorcycles.
The distribution of H-D motorcycles was done mainly through dealerships and also through non-traditional outlets which were extensions of the main dealership. H-D's products were sold to retail customers primarily through dealer promotions, the company's website, customer events, and advertising through national television, print, radio, direct mailings, and through advertising on the Internet.
The distribution of H-D motorcycles was done mainly through dealerships and also through non-traditional outlets which were extensions of the main dealership. H-D's products were sold to retail customers primarily through dealer promotions, the company's website, customer events, and advertising through national television, print, radio, direct mailings, and through advertising on the Internet.
However, despite the success that H-D had achieved over the decades, it came in for quite a bit of criticism from analysts. Some critics were of the opinion that H-D was moving from its core competency, i.e. motorcycles, and diluting its brand image. They also criticized H-D dealers, saying they still had a long way to go in maintaining good relationships with the company's customers.
Questions:
· Analyse the various marketing mix elements of H-D.
· Explain the importance of Channel Partners in maintaining good relationship with the customers.