Is this the beginning of the end for Harley?

That's why these new bikes are doomed.

It's checkbook culture, buy the hog, gets some leather chaps and denim, a useless little helmet, off to Port Dover. I don't see these new bikes appealing to that crowd.

but, that typical Harley customer: the blue-collar type, and the wanna be badass accountant, both got killed off in this depression. Harley needs new customers.

CafeRay,

You don't like HD but you constantly talk like you know something about this company when its incredibly clear that you do not. Have you ever even ridden an HD? have you been to any HOG rallies? Are you even paying attention to the marketing material as of late?? Are you even familiar with the current line up of bikes?

Face the facts, HD is successful, they have big marketshare in their segments, they have been around for 110 years, a Harley Davidson tattoo is the second most popular tattoo after "Mom", they have loyal customers that are engaged with the brand and they are intimately connected through the owners group HOG. I don't think you will find more loyal customers anywhere than an enthusiastic harley customer... You can be a hater if you want to be but you are heavily misinformed.

"Harley needs new customers"???? No kidding, so does every brand for every product in this world. Have you been paying attention to the marketing material lately? If you did you would notice the customers they are trying to conquer. Under 35's and women. Look at all the imagery these days and you'll see a whole lot of hipster looking dudes with unbottoned plaid shirts flowing in the wind and skinny jeans. All the dark custom P&A, black label clothing, its basically geared towards younger riders who think matte black is cool. You'll see a lot more material and events trying to draw in women and first time riders.. They have pink label clothing and do garage parties to try and engage them.. If you watch the UFC/Ultimate Figher, you'll see how heavily they are promoting HD in that programming which garners a lot of young viewers. Even this month, Movember is a fairly young movement. HD picked up on it and they are partnered with them.

Everyone is entitled to an opinion, I get it and thats fine but my opinion is simple here: You don't know what you are talking about.

These bikes will sell.
 
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CafeRay....You don't know what you are talking about.

You are being too kind....Toshison..lol. This dude has lots of big time comments...and on everything...but fails almost everytime. But it's true we all have a opinion ..... But sayin Harley's hard rock and pickup trucks are for the "stupid" people...ain't somethin I'd say out loud where I roam..lol.
 
CafeRay,

You don't like HD but you constantly talk like you know something about this company when its incredibly clear that you do not. Have you ever even ridden an HD? have you been to any HOG rallies? Are you even paying attention to the marketing material as of late?? Are you even familiar with the current line up of bikes?

Face the facts, HD is successful, they have big marketshare in their segments, they have been around for 110 years, a Harley Davidson tattoo is the second most popular tattoo after "Mom", they have loyal customers that are engaged with the brand and they are intimately connected through the owners group HOG. I don't think you will find more loyal customers anywhere than an enthusiastic harley customer... You can be a hater if you want to be but you are heavily misinformed.

"Harley needs new customers"???? No kidding, so does every brand for every product in this world. Have you been paying attention to the marketing material lately? If you did you would notice the customers they are trying to conquer. Under 35's and women. Look at all the imagery these days and you'll see a whole lot of hipster looking dudes with unbottoned plaid shirts flowing in the wind and skinny jeans. All the dark custom P&A, black label clothing, its basically geared towards younger riders who think matte black is cool. You'll see a lot more material and events trying to draw in women and first time riders.. They have pink label clothing and do garage parties to try and engage them.. If you watch the UFC/Ultimate Figher, you'll see how heavily they are promoting HD in that programming which garners a lot of young viewers. Even this month, Movember is a fairly young movement. HD picked up on it and they are partnered with them.

Everyone is entitled to an opinion, I get it and thats fine but my opinion is simple here: You don't know what you are talking about.

These bikes will sell.



I Hate HD's but you're nailed it on the head... HD is a powerhouse and won't go down....
 
These bikes will sell.

I'm the worst barometer of popular tastes. My opinion is that these new HD's will flop. Nobody wants an erzats HD. Having said that, they should prove quite popular and cement a younger generation of HD purists.
 
At least they came up with a better name for it than their last small bike, the B Last.
 
I think this is a good move, marketing wise, by HD. No different than relatively cheap B or C class M-B cars and low end 3 series BMW's. Get the customer on/in an affordable ride/car and then build on that long term. Love or hate HD, they are very successful in selling a lifestyle that appeals to a lot of people. These new customers will probably spend a lot of time at HD dealerships drooling over the classic HD product line and saving their pennies to upgrade at some point down the line.
 
as ReSTored says, its marketing 101.
open a new segment and build the brand, the lifestyle stores, rallies that attract 1000's to travel across continents. Staying truer to the core business is going to be a better success.
The smaller displacement excercise of the '70s when they produced dirt bikes and scramblers was nuts. For you new folks it was the partnership with Aeramacchi, really unreliable italian bikes rebranded as HD.

The really interesting part in retail is sell a guy a bike, then sell him some accessories to personalize the ride, a branded jacket , couple Tshirts. Then do the arithmetic and see where the real margin and profit came in.
 
They've been doing that since 2008 with the Sportster Iron.


Yes, trying desperately to lose the gangster image. It doesn't sell well to the mass market.
I don't know if this particular bike will do that, but it's a step in the right direction for the company.

IIRC, in a recent article, a high placed HD insider spoke about the rampant fear of losing their consumer-base in 5-10 years. I.e. mostly the older generation.


Edit - decent read -
http://www.forbes.com/2010/03/17/ha...tization-leadership-managing-competition.html
 
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@Caferay, It's amazing how you can pick apart a strategy yet provide 0 input on solutions. Good thing you're not on the HD executive board.
 
You don't like HD but you constantly talk like you know something about this company when its incredibly clear that you do not. Have you ever even ridden an HD? have you been to any HOG rallies? Are you even paying attention to the marketing material as of late?? Are you even familiar with the current line up of bikes?

Yes, I spent an unfortunate 80 kms on a Sportster.
No, I have not been to a HOG rally. I will never go to a HOG rally.
Yes, I am aware that Harley loyalists are very upset about the modern v-twins and water cooling.
Yes, I see the current range as continuing to be heavy, expensive, with out-dated components.

Face the facts, HD is successful, they have big marketshare in their segments, they have been around for 110 years, a Harley Davidson tattoo is the second most popular tattoo after "Mom", they have loyal customers that are engaged with the brand and they are intimately connected through the owners group HOG. I don't think you will find more loyal customers anywhere than an enthusiastic harley customer... You can be a hater if you want to be but you are heavily misinformed.

Segments? you mean, "segment". Crusiers, that's it. They have gone broke twice in the past 40 years. Both times in bad economies. They tried and failed with sports bikes.
When you over pay into a "culture" that ignores actual motorcycle design, you rely on culture, tattoos, marketing and bad-*** imagery -that's not motorcycling, that's fashion.

"Harley needs new customers"???? No kidding, so does every brand for every product in this world. Have you been paying attention to the marketing material lately? If you did you would notice the customers they are trying to conquer. Under 35's and women. Look at all the imagery these days and you'll see a whole lot of hipster looking dudes with unbottoned plaid shirts flowing in the wind and skinny jeans. All the dark custom P&A, black label clothing, its basically geared towards younger riders who think matte black is cool.

Like everything else Harley, ten to 15 years year out of date. They need new customers because the blue-collar US manufacturing worker is gone, replaced by Walmart greeters and McJobs, which cannot afford Harleys. The only base level of sales is in commuter bikes, and no one buys Harley to commute.

You'll see a lot more material and events trying to draw in women and first time riders.. They have pink label clothing and do garage parties to try and engage them.. If you watch the UFC/Ultimate Figher, you'll see how heavily they are promoting HD in that programming which garners a lot of young viewers. Even this month, Movember is a fairly young movement. HD picked up on it and they are partnered with them.

Like the Buell Blast?
No, I don't watch UFC/Ultimate fighter. I am no where near that target demographic.

Everyone is entitled to an opinion,

Oh, then you have not met Harley riders, because they like to point out my "disposable Jap Crap" when they are in groups of three or more (never alone). They are the most conservative people I constantly come across, all insist on talking, looking, thinking the exact same. Not a lot of ethnic diversity either.

I get it and thats fine

No it isn't , you hate it when anyone takes a critical look at those motorcycle designs. This is acompany that makes more profit margin than any other bikes, uniquely in North America, because they invest very little in R&D. This was a high profit corporation, it's better compared to a designer jeans company or a cosmetics company.
You don't buy a Harley because you like bikes.

but my opinion is simple here: You don't know what you are talking about.

These bikes will sell.

Sure they will, as well as the Buells. The issue is that they have 500 and 750 class ranges, which means a logical comparison with Japanese bikes. They could sell well, if they actually made good bikes. The American car companies realized this the hard way. The market is more competitive than ever, and the way to compete is with a better product, and inferior products with better marketing doesn't work any more, most people are too well informed these days.
The idea that these bikes will penetrate the European market is simply hilarious. Good luck with that.

Last month HD reported profits up by 21%, but sales up 2%. This was a bit of a rebound from 2010-2012, mostly attributed to the fact they now make bikes with less hands-on labor, and they are sourcing cheaper parts than before. They have figured out how to make the bikes at lower cost, but they haven't realized significant sales number increases.

But, as with all fashion-based companies, customers don't always choose rationally.
 
CafeRay, you are an idiot. You obviously hate HD, which is fine, but you're points on arguing have ZERO basis at all. Stop debating on a topic you clearly know nothing about.

You keep claiming that HD is losing their "blue collar" customers because of the bad economy. Blue collar manufacturing workers losing their jobs is NOT the reason why Harley is worried about future growth. In fact, that's probably one of the most ignorant things I have ever heard.

Everyone knows that the majority of HD owners are older folks. The baby boomers are dying off so HD naturally needs to fill that void by appealing to a younger generation hence their new "infotainment" system on their touring rigs.

You continue to stereotype Harley riders based on your very little experience with them. 80kms on a Sportster? Big deal. If you're going to stereotype that's fine but stop trying to pass it off as facts. In fact, do us all a favor and stop posting altogether. My IQ drops every time I read one of your posts.
 
And now you have Polaris invading their bread and butter segment with both the Victory and Indian brands.

The people who can afford a super-deluxe Harley bagger are not people like me, but people who can afford and would be interested in the new Indian that Polaris just put out rather than same old baggers.
 
I guess that by HD's marketing definition, I fall into their hipster segment, yet I would not buy any of these underpowered "urban" bikes. I would be interested by something like a smaller-displacement V-Rod with a sportier rider triangle. Love the modern styling and I think a smaller version would have a wider appeal than the current crop of hipster motoscoots.
 
Always liked the Jason Bourne...very cool.
 
Re: CafeRay: This dude has lots of big time comments...and on everything...but fails everytime. But it's true we all have a opinion ..... But sayin Harley's hard rock and pickup trucks are for the "stupid" people...ain't somethin I'd say out loud where I roam..lol.

Fixed.

Only other thing is that HD had a massive US government bailout a couple years back (very similar to the GM situation) that was very much swept under the rug. They were making more money from their "apparel and fashion" departments than on the bikes. More money on dog dishes and ******-rags than on the iron they were selling.

The smaller bikes will appeal to the foreign markets. Here, they will simply be sneered at as "pretender wannabe's".
 
Fixed.

Only other thing is that HD had a massive US government bailout a couple years back (very similar to the GM situation) that was very much swept under the rug. They were making more money from their "apparel and fashion" departments than on the bikes. More money on dog dishes and ******-rags than on the iron they were selling.

The smaller bikes will appeal to the foreign markets. Here, they will simply be sneered at as "pretender wannabe's".

the '09 - '10 bailouts? drop in the bucket of the 3 trillion dollars handed out. BTW, McDonalds and South Korea and several foreign banks operating in the US got money in that handout. Big Deal, anybody with a compelling story collected money. Warren Buffet had 1 billion? in HD @ 15%. They were very close to the edge of the cliff.

HD could be a master class in expansion, reduction, restructuring, expansion and failure into foreign investment buying other brands and now an increase in profits without significant increase in product sales. Its a business school course on its own.
 
...i think most of caferay's points are pretty spot on...

:lmao::lmao::lmao:

At crankcall:
http://rideapart.com/2010/12/harley’s-secret-2-3-billion-taxpayer-bailout/

Example: HD buys MV Agusta at $109 Million (http://investor.harley-davidson.com/phoenix.zhtml?c=87981&p=irol-newsArticle&ID=1584398&highlight=) Sells MV Agusta back to people they bought it from for 1 Euro (http://www.asphaltandrubber.com/news/harley-davidson-sells-mv-agusta-castiglioni/)

Net loss, approx $108,999,998.65.
 
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Yup, they needed the liquid cooling technology and EFI packages to match, to meet California air review board certs CARB std. Its thier biggest market. MV had all that in house and more (they made helicopters i hear ) , buy the company, move all the proprietary information and technology home. Declare 100m loss against future earnings, still get bailout money. Interesting accountants up there in Milwaukee, but not stupid. Winding down the MV business would have cost triple giving back to the Castiglioni Bros.
 
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