Harley Davidson :: essays research papers

The purpose of this industry analysis is to develop understanding for Harley Davidson Inc. and the employee owned manufacturer of heavyweight motorcycles. We will focus on some of the distributing of products to domestic and international markets targeting men and women of all ages. The motorcycle industry is made up of five major manufacturers: four Japanese (Honda, Yamaha, Kawasaki, Suzuki), one American (Harley Davidson) and some European companies (mainly BMW of Germany and some other Italian companies). Most companies market their motorcycles and accessories on a worldwide basis. Industry sales of motorcycles were shrinking in the early l990s because of the recession. Three types of products/services are being offered motorcycles, accessories, and financing services. Motorcycles: This is a loose term for some, however we are going to look at that would include motorcycles. Mopeds or scooters (with engines under 125ccwhich are used as an alternative to walking), accounting for about 17% of total motorcycle sales; lightweight motorcycles road bikes, dirt bikes, dual purpose bikes (with engines ranging from 125cc to 499cc), accounting for 51% of sales; sport motorcycles street bikes, and super bikes (with engines ranging from 450 to 749cc) accounting for 13% of sales; heavyweight motorcycles cruisers, touring bikes (ranging from 750cc to 1500cc) accounting for 19% of sales. Accessories: all leading manufacturers produce Aftermarket accessories, such as saddlebags, windshields, custom seats, helmets, and clothing items. Accessories can bring in a large amount of profit but they can also strengthen customer relations and customer loyalty. In order to succeed companies need to do a market analysis of what sales and what the customer base requests. Sales of accessories and parts make up 36% of total retail sales and are a viable area for producers to explore because people want something to differentiate their bikes. In the past, motorcycles were viewed as a cheap means of transportation. By 1992, they came to be viewed as a recreational, or a luxury item. This new perception of motorcycles led to the introduction of more expensive models with higher prices. This led to the introduction of consumer financing, one of the fastest growing service areas in the motorcycle industry. Financing Services: As motorcycle prices increase to above the cost some can afford out of pocket. Many customers are finding a need for financing within the dealership of the motorcycle company. Financing terms and payment arrangements are necessary to succeed and be competitive. The customers of motorcycles can be divided into two categories men and women.