Harley-Davidson, founded in 1903, is known for its custom and touring motorcycles but faced severe financial struggles in the 1980s due to quality issues and competition. The company successfully implemented a repositioning strategy focusing on quality, customer engagement, and its unique American heritage, leading to significant sales and profit growth. Despite minimal advertising expenditure, Harley has revitalized its brand and created a passionate community around its iconic motorcycles.

1. PRESENTATION ON HARLEY DAVIDSON

2. HARLEY DAVIDSON

3. ABOUT
• Harley-Davidson manufactures and sells custom, cruiser and
touring motorcycles that feature leading-edge styling,
innovative design, distinctive sound, and superior quality with
the ability to personalize.
• Founded by Walter Davidson and William A. Davidson in the
year 1903.
• They have 1,400 independently owned Harley-
Davidson dealerships in nearly 100 countries.
• Harley repositioning strategy was acknowledged as the top
best repositioning strategy by Forbes.

4. Riding experiences and
events
WHAT WE DO ?
Riding apparel and
gear for riders and
passengers
Accessories to customize
our motorcycles
Casual apparel and accessories
for riders, passengers and
enthusiasts

5. The Emotional Connect
• No other company logo has been tattooed on more body parts than Harley’s Bar and Shield; this emblem in itself is a
billion dollar industry worldwide when you consider all the merchandise and licensing agreements sold.
• That kind of passion explains how Harley has been able to cross so many socioeconomic boundaries. Its owners are
buying much more than a mode of transportation.

6. Reasons for decline of
Harley Davidson

7.  In 1980s Harley-Davidson was facing bankruptcy. It was $90 million in debt and it couldn’t get a
loan.
 It’s quality dropped so did customer loyalty and sales so far that dealers had to place cardboard
under floor models to catch the leaking oil!
 Faced severe domestic market conditions and heavy foreign competition including Honda, Suzuki,
Kawasaki and Yamaha.
 Harley-Davidson’s image was linked to shaggy, tattooed motorheads in biker gangs

8. Marketing Strategy
• New strategy- ‘turn left when the competition turns right’
• Apply the basic Four P’s of marketing
• The Harley team added a fifth critical factor, People, which is the most important ingredient in any
business turnaround.
• Rather than mimic the competition, Harley-Davidson played the game on its own terms, spinning a
negative perception into a positive brand attribute
PRODUCT, PRICE, PLACE AND PROMOTION + PEOPLE
• They decided to be the alternative and offer products, a culture and activities that the competition
couldn’t. An early example: Organizing thousands of Harley owners to ride from LA to Milwaukee to
raise more than $100,000 for Muscular Dystrophy.

9. Improving the Quality-
• Personnel traveled to Japan to study how they made motorcycles.
• The knowledge they came back with compelled Harley to introduce just-in-time inventory,
statistical operators control and employee involvement.
• Styling Department implemented a classical, evolutionary design for its motorcycles, rather than
imitating the competition’s practice of designing something radically new every year.

10. Pricing and Place
• Their motorcycles retained their residual value and, in some cases, increased in value over the years while the
competition’s motorcycles depreciated 25 to 50 percent in the first two years
• Harley initiated a store redesign program with its dealer network to create an atmosphere where the customers
would feel comfortable coming to a Harley dealership and use it as a meeting and gathering place.
• That award-winning program tripled instore revenues for many dealers and continues to this day.

11. Promotion
• Harley-Davidson wanted to get close to its customers by riding alongside them and by providing events
where owners could use and show off their motorcycles.
• The Harley Owners Group (H.O.G.) was created in 1983 and now has more than a million members around
the globe. They have raised more than $70 million to date.
• People and promotion came together through anniversary celebrations and events. The 110th anniversary
of the company in 2013 began and included epic celebrations in 11 countries on six continents. Each year,
the celebration and the number of participants grow larger.

12. • Legions of Harley riders in black leather jackets and black T-shirts also hurt the company's image.
Unfortunately, that is what the company sold them.
• So in 1986, Harley launched Harley-Davidson Motorclothes, which offered shirts with collars, denim blue
jeans, baby clothes and bright-colored fashion items for women.
• At the same time, Harley began to license its popular shield-and-bars logo for hundreds of products, from
train sets to Christmas ornaments to the special edition Barbie
Extension of the Brand

13. • The company exploited the one differentiator foreign competitors couldn’t match: its unique American
heritage – a rebellious attitude, a classic style and a history dating back to WWI.
• In order to appeal to middle-class consumers, the company smoothed the rough edges and repositioned its
products as the road to freedom
• As Baby Boomers aged out, the company targeted young adults, including young women.
• It improved quality to become a premium product.
• It embraced its heritage and originality. And it refocused its image to sell the experience of freedom to
everyone, everywhere, while at the same time making them feel like part of an exclusive club.
What Made The Difference ?

14. • Despite the challenges the company faced over the years, Harley Davidson has managed to
consistently overcome various obstacles, and get itself back on track towards success — often
stronger than ever.
• Harley has created a brand for people who want to stand out from the crowd. Their popularity is
based on an emotional experience, and a strong connection that defies logic, and goes beyond
concerns like price points and technology
What Made The Difference ?

15. Road To Growth
• Sales have grown at a compound annual rate of 16.2 percent since repositioning,
with profits up even more, soaring at a comparable rate of 29.2 percent.
• Just after the new strategy, the company reported net income of $166 million on
sales of $1.53 billion. To get to those numbers, it moved a lot of metal, posting
worldwide sales of 118,000 big bikes.

16. • The company's motto, "to turn left when they turn right. 'Let's be the alternative and do the things
they can't do.‘, became their strategy in everything they did and still do.
• By finding new ways to reach out to core constituencies -customers, employees and
dealers, Harley fanned a lingering loyalty for their products into a revived passion.
• The company managed to reverse the painful decline in quality that caused some of its
old customers to cross the street to the foreign competition. It enticed a new generation of
buyers to join a club.
• The company accomplished all this by spending very little on advertising -- in fact. In
future years it spent a minuscule $1 million on advertising out of a total marketing budget
of just $20 million.

17. Google Trends
According to the google trends the customer interest in Harley Davidson company is increasing over the time.

18. • Harley employees take 80 hours of courses each year in such subjects as statistical process control, learning
techniques to enhance quality and productivity.
• Harley has also instituted self-directed work teams throughout the company, from line workers to senior
management. And a continuous open dialogue with management is not only encouraged but rewarded.
• Harley's salaried staff, for example, receives bonuses not only for financial performance but for warranty
performance. The fewer bikes that are returned, the better the bonuses.
Employee Benefits

19. "Buy a Harley, buy the best --
ride a mile and walk the rest!"

20. References
• Https://www.forbes.com/companies/harley-davidson/
• https://www.harley-davidson.com/in/en/index.html
• http://aviationmarketing.aero/how-harley-davidson-took-back-its-brand/
• https://www.clydefessler.com/the-harley-davidson-turnaround-story/

21. THANK YOU