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Q: US Motorcycle Market - Demographic Data and Market Research ( No Answer,   0 Comments )
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Subject: US Motorcycle Market - Demographic Data and Market Research
Category: Business and Money > Advertising and Marketing
Asked by: jeane-ga
List Price: $10.00
Posted: 31 May 2005 09:38 PDT
Expires: 30 Jun 2005 09:38 PDT
Question ID: 527745
I am trying to put together a situational analysis and marketing plan
for how harley-davidson can market to gen y and x' ers.  I need to
find marketing and demographic data to support my analysis.  Below
outlines the premise of the discussion, and I need some hard data to
proceed with my analysis and aid in my strategy formulation and
conclusion.

I am rather intrigued by the Harley-Davidson marketing and new product
development approaches which in many cases seem to be so intertwined
as to be almost inseparable and unrecognizable as unique stand alone
strategies in their own right.  As stated by Joanne Bischman, their
vice-president of marketing:
 
"Marketing and product development are so intertwined at
Harley-Davidson that it's hard to say where one ends and the other
begins"
 
In many cases the "product" is not always a motorcycle.  Examples
include their 100th anniversary celebration in 2003, their Riders Edge
program for new riders, converts from the competition or experienced
riders interested in organizing "rides" or group road trips, the
Harley Owners Group (HOG's) which could almost be considered a cult
unto itself, the Harley-Davidson University for Dealers, the Custom
Vehicle Operations begun in 1999 (as well as mass customization
techniques, where quite cleverly the customer provides the production)
and finally their approach to new market segments as the wave they
have ridden for several decades dissipates with the aging of the baby
boomer generation.
 
Most intriguing to me is the context whereby "new product innovation"
at Harley-Davidson is constrained by existing customer expectations
carefully cultivated over decades and the apparent resulting paradox. 
Harley customers are fiercely loyal and strongly influenced by the
culture, brand and image as well as buying not just a motorcycle but
an experience and lifestyle.  What has attracted so many loyal
customers is an expectation of what the brand delivers, which limits
the context with which to innovate.  They don't want a Honda (even
with the latest technological innovations included in the new product)
they want a "Harley" and everything that goes along with being a
Harley owner, the pride of owning an American legend.  Brand loyalty
is emotional with the American flag and eagle symbolizing passion and
freedom, a desire to escape the routine and be anyone you like.  The
mystique appearance of individualism, riding free and owning a legend.
 
Not a recipe that I would necessarily consider messing with too much. 
So this presents an interesting marketing challenge to me.  They have
been incredibly successful to date with this recipe, but now that the
baby boomer generation has almost peaked (from a revenue generating
perspective) how to successfully market to the GenX,Y-ers, and other
market segments (women, Asians, African Americans, etc.) who hold a
completely different set of values and beliefs?  Acquisition of Buell
was a step in that direction - but WOW what a contrast to their tried
and true strategy that has brought such unprecedented success.  This
would almost require a game changing strategy in my opinion.

Some key data I am looking for:
1.) INDUSTRY AND COMPETITIVE MARKET DATA - The industry under study is
the motorcycle industry consisting of five major manufacturers: one
American (Harley Davidson), and four Japanese (Honda, Yamaha,
Kawasaki, Suzuki) and some European companies (mainly BMW of Germany
and some other Italian companies). Most companies market their
motorcycles and accessories on a worldwide basis

2.) EXTERNAL PLANNING AND DEMOGRAPHIC DATA They can be divided into 2
categories men and women. Men. A. Men under 30. This group accounts
for 44% of all sales. Therefore, a great opportunity exists here
because of the group's size. This group's members buy motorcycles for
their transportation and recreation needs. Men in this group buy more
of mopeds, scooters and entry level lightweight road bikes. B. Men
between 30 and 50. This age group makes up 45k of buyers another large
area providing opportunities for firms. The motorcycles most
frequently purchased are the heavyweight tourers and cruisers. Many
buyers are married couples looking for an alternative to taking the
car out for weekend drives to the country. C. Men over 50. This group
accounts for about 11% of motorcycle sales. The heavyweight touring
class and the middleweight road bike categories account for most of
the sales here. Women. This group is a segment that is growing at a
fast rate, thereby representing an opportunity area. Firms to be
successful here are to provide smaller, easier to handle, comfortable,
and good quality bikes to build up brand loyalty.

3.) CUSTOMER DATA - Customers under 30 years of age are to be provided
with safe, stylish, high quality products at reasonable prices,
thereby increasing brand loyalty. Safety issues are not being focused
by the Japanese and that gives Harley a competitive edge here though
they can provide their products at lower prices. Customers from 30 to
50 years of age are to be provided with high performance, safe
products, building up Harley's brand loyalty that is considered the
strongest, especially in the domestic market. Customers over 50 years
of age are to be provided with comfortable, easy to handle bikes to
increase their convenience.

HARD DATA FOR ANY OTHER AREA WHICH INDICATES A MARKETING STRATEGY
RECOMMENDATION FOR A SPECIFIC COURSE OF ACTION.
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