1. Significant Issues
Harley-Davidson was regularly producing bikes ,nicknamed the ‘silent Grey
fellow’in 1907, Harley-Davidson was incorporated as a company and produced
150 bikes in first year. Inspired by the success of their initial efforts, other family
members assisted the partners, and an upgraded version of bike was developed
by 1909.
This model had a new engine, know as the ‘V-twin’ (because the engine had two
cylinders arranged in a ‘v’ angle)
The company kept its focus on innovation and up-gradation technologies,
introduced front-brake system and the unique teardrop-shaped gas tank.these
innovation and sales strategy helped beat competition successfully.
In 1916,Harley-Davidson took another step and launched
The enthusiast’ magazine for its customer.the idea was to provide its customers
with the latest information on the company products and the motorcycle
industry.
In 1952, the company launched the K-model in the market.harley-Davidson
became the sole manufacture of motorcycles in the countr.
in 1950s and 1960s Harley-Davidson,s popularity and sales grew it out a new
range of SUPER-BIKES –the sportster,Duo-Glide,Electra-Glide and super-
Glide.These loud and heavy-weight bikes soon became the symol of
counterculture in the US.
In 1983 the company launched a trademark –licensing programme for its dealers,
which helped the company eliminate the problem of bootlegged merchandise.
HD also produced a number of models in other than ,grey, colours. This helped
company to attract repeat purchase .

2. What factors have been responsible for Harley-Davidson becoming a cult.
In 1990 when H-D realised that a lot of women were buying its motorcycles and
merchandise, the company began offering products to suit the tastes of its new
customer profile
Anyone interested in motorcycles is definitely familiar with name Harley –
Davidsion.the idea of innovation became popular.william Harley and Arthur
Davidson opened a small moter shed in 1903.
Harley- Davidson was quite aware of the fact that its brand was its biggest
strength and decided to leverage the same for boosting growth.the enthusiast
magazine had contributed to enhancing the customer experience the magazine
was also provide a platform for HD customers to share their views & opinions.
Every HD owner was given a one-year free membership to HOG(Harley Davidson
Group) so 33000 members joined the group in a short time.Hog was to involves
customers in a way that would forge stronger relations & bond between the
customers and the company.Through this itsorganised several bikes rallies &
tours.
HD organised a three-day dealer-tanning programme, which came to be known as
Harley- Davidson University. Through this tranning program they trained his
dealers to develops their bussiness and communication and leadership skills to be
able to sales more effectively.
Tattooed motorcycle enthusiasts travelling across the US group on their HD
chopper Peter Fonda blockbusters movie Easy Rider epitomised.The culture of
bikers are raised fonda to iconic status rivalling that of his legendary henry fonda
motorbikes in black leather gear became an image increasing associated with the
nature.
HD produced new ranges of superbikes like the Sporter,Duo-Glide,Electra-Glide
and Super-Glide.These loud & heavy-weight bikes soon became the symbol of
counterculture in US.

3. Positioning & Secret of the fanatical customer loyalty to HD.
The part of Harley-Davidsons success was due to Davidson’s innovative idea of
setting up a network of dealers that would sell only H-D motorcycles. The
company was able to attract large number of dealers to this network as it
promised them a handsome share in profits and also offered product guarantees.
HD realised that alot of women were buying its motorcycles and merchandise the
company began offering products to suit the taste of its new customer profile for
the different colors that was liked by women.
HD had also expanded into niches that were looking for other than heavyweight
vehicles from the company such as customised touring ,sports touring,and sport-
street motorcycle categories.
HD ensured that production did not exceed the demand for its motorcycles. This
led to an increase in demand to such an extent that in the late 1990s customers
had to wait for six months to eight month for buying HD motorcycle.
HD motorcycles craze and ‘halo’ was such that old model were fetching prices
25%-30% higher than the list price for the new models.
The company worked on the premise that the customers experience transcended
the product.Product is no doubt the core but HD sold its customers the total ‘HD
riding experience’.