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They can't be everything to everyone. Make the BEST bike in two or three categories.
Reading some of their objectives:
These investments will be focused in four primary areas:
Increasing product and brand awareness - Where do they advertise, Geico ads all show Suzuki cruisers. Their ads are the same or they added more women. But they are missing the rest of motorcycling.
Growing new ridership in the U.S. Where are the sport versions. Basic starter Harleys. Harley seems stuck on theme bikes. Also, they are designing bikes that are harder to customize. Their design to control profit has them restricting innovation, aftermarket and as their sales slip, they increase the price on basic harley aftermarket parts to make up margins. That only works in the short run and will end up killing their business by leaving room for a company who is lean and innovative. They should embrace aftermarket suppliers, price their own aftermarket more competitively, and grow that business, not be the butt of everyone's joke.
Increasing and enhancing brand access - Many dealers have a bad attitude about other brands. I am told time after time of someone on a metric riding to a dealer and getting ignored or treated like ****. Many times salespeople are BSing with friends. They killed Buell. They will kill the Street...well maybe it ought to be killed. Nothing Harley about it. I could design a better 500/750 Harley. I had that dealer experience when I rode sporty to a dealer as my bagger was up on the lift.
Accelerating the cadence and impact of new product - When a culture lives, breaths and designs in secret, the impact of new products is buried in fear (of the secret getting out and them not controlling the issues). Their 2016 intro was poorly handled. What worked even 10 years ago today does not work with today's social media. Even 1%s use smart phones. Get into this century. It has changed. Also, website sucks big time as far as usability. It is possible to keep your roots, honor your roots and existing riders and move forward. It is not possible to drop your core and head into a new direction. They must be done together.
The company will provide additional information during its earnings conference call this morning, including details on the company's five objectives:
Lead in every market. Street is going where?
Grow the sport of motorcycling in the U.S., in part by growing the number of U.S. core customers and growing the number of U.S. outreach customers at a faster rate. Harley is seen as part of the problem. They need to be more involved in general motorcycling.
Grow U.S. retail sales and grow international retail sales at a faster rate. In support of this objective, the company has a target to grow its international dealer network by 150 to 200 new dealerships by 2020. Good, but is that going to be the answer. Not with what they offer today.
Grow revenue and grow earnings faster than revenue through 2020. Good idea, so will we. But they won't do it is they continue doing things they way they did this past year. They need to look at how to seriously attract the new city condo dweller. Be the escape and the tool.
Outperform the S&P 500. Bean counters and accountants do not sell motorcycles. We see more companies ruined by placing an accountant at the head. The accountant needs to be the number 2 guy, telling the entrepreneur what the risks might be, but the top decision is made by inspiration and daring, not by number crunching.
Great objectives. HOW are you going to do that????
Where is "make a better product that customers don't have to change every part on to get what they want?" Start with good handlebars and shocks and seats etc. Keep them customizable, but start with a product worth the price you're asking. It is very likely that when I replace my Harley, that I will at least look and test ride other brands. I assume that their handbars and seats will suck as much as Harley's stock set. I probably will stay with Harley, but I am more open now as Harley's seems to not know where it is going. I have owned '42, '47, '80 '88, '97, & '10 BT and '61, '72, and '96 sportsters. I test rode a '14 Street Glide Special. It was a fine bike, but not for me.
I am not a biker. I do not have tattoos nor an eye patch. I might look like a pirate, but I am not. I ride a Harley because it remained the best bike for me when I upgraded in '10. We like to tour. all day, all weekend, all week or all month. We ride with mostly Harley friends.
It's called competition. Harley has to do a better job (lower price points, fewer quality and recall issues) or the slide will continue. Harley has demographics working against it and the competition is doing a better job attracting the young demographic. Ron
Harley used to be able to sell bikes by relying on a strong image and brand name. But when you start putting the bar and shield on things like underware and toilet seats the luster kind of fades and it starts becoming comical.
Last edited by carpetride; Oct 20, 2015 at 03:17 PM.
I've been to many Harley Dealers in both Ohio and Florida. Almost every salesman has told me something along the lines of "Harley seriously needs to do something to get younger people to buy bikes soon, or we're in serious trouble". Also said by most salesmen "Most of my customers (coming in to buy bikes) are between 60-70 years old." I know the economy is pretty bad and many are out of work, but Harley's seem to be known as "Old Man Bikes" when talking to the younger generation.
I've been to many Harley Dealers in both Ohio and Florida. Almost every salesman has told me something along the lines of "Harley seriously needs to do something to get younger people to buy bikes soon, or we're in serious trouble". Also said by most salesmen "Most of my customers (coming in to buy bikes) are between 60-70 years old." I know the economy is pretty bad and many are out of work, but Harley's seem to be known as "Old Man Bikes" when talking to the younger generation.
Bingo............the youngest in our group just turned 60. We held a wake for him, good as dead already. Also, nice to attend your own wake as you can comment and correct if your friends get everything wrong as we often do. In our large group (about 50 riders) the number under 50 is counted on one hand.
Harley used to be able to sell bikes by relying on a strong image and brand name. But when you start putting the bar and shield on things like underware and toilet seats the luster kind of fades and it starts becoming comical.
I was at the dealers last week and could not believe all of the geegaw stuff on the shelves. You can now walk into a Harley shop and come out with a complete new wardrobe from top to bottom and all kinds of other crap in between.
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Slideshow: A standard cruiser becomes an intricate metal canvas in the hands of a Swiss custom house known for pushing Harley-Davidson platforms far beyond their factory brief.