Rejuvenating an

Iconic Brand
Company History:
• Davidson Brothers and William Harley started it in 1903 aiming at leisure, sport racing, government use,

Post WWII, modifying enthusiasts used surplus military motorcycles.

• It was adopted by “rebellious” clubs like The Booze fighters and eventually became an identifying symbol

for Street Gangs like Hell’s Angels.

• In the 1960s, Honda’s rapid growth began to dwarf HD. Their concept of targeting the unreached segment

with lighter bikes was a colossal success.

• AMF bought Harley Davidson in ‘69, cut down on workforce which adversely affected quality “Hardly

Drivable”
• In 1981, 13 investors buy out Harley Davidson

• In 1986, it’s publicly listed.

Motorcycle Market:
Types of Motorcycles
Heavyweight Bikes Sport Bikes

Larger than 601 CC Lesser than 601 CC

Greater Power Quicker Handling

Easier for Custom Add-ons Smaller Engines meant Lighter

because of larger engines materials had to be used

More Ideal for Tours More Ideal for Speed and

Racing
Motor Cycle Segments:
Segment Emphasis
Standard Simplicity and Cost
Performance Handling and
Acceleration
Custom Style and Individual
Owner Customization
Touring Comfort and amenities
for long-distance travel

• In 2007, 54% of total US motorcycle market were heavyweight motorcycles.

• 80% Harley Davidson’s registrations were in the Custom and Touring Segments of heavyweight motorcycle.

• Price, Quality, Reliability, Styling, Product features, Customer Preference and Warranties are the metrics with which
Competitors differentiate themselves in the Heavyweight Markets.

• Quality, Reliability and 2 year Warranty was Harley Davidson’s unique offering.
 Product line:

Touring Bikes Softail Bikes Dyna-Frame Bikes Sportster Bikes VRSC Bikes Iron Bikes

Road Glide Heritage Fat Boy 883 V-Rod Iron 883

Road King Night Train Cross Bones Nightster Night-Rod

Distribution:
• To strengthen its competitive position, Harley
Davidson had recently improved the Distribution
availability of its motorcycles at its 12
68

independent dealers.
104
• The increased availability had resulted in
independent dealers providing eider
selections of motorbikes at or near
manufacturer’s suggested retail prices, which 500

put down the pressure on HD’s used

motorcycles price. Harley Davidson Dealership Secondary retail Stores
Alternative retail outlets Seasonal retail outlets

• In Addition, HD introduced a new engine on

many of its new motorcycles beginning with
the 2007 year model year, which tool a toll on
the price of its used motorcycles.
The opportunity with Buell:
•HD Produced Secondary Brand bike BUELL in the sports bike category in 1993.
•HD fully acquired by 1998.
•Light sports bike with lower price. 
•Target : Younger customer in the European market segment.
•BUELL  brand and logo were distinct from and did not share any Brand elements with
HD.
•Around 307 dealerships sold Buell out of 684 dealerships.
•BUELL did not carry any HD visual Branding. (Uniqueness)
•BUELL motorcycle are innovative design, Create value to the customer and overall
performance.
•In 2007 Buell’s product line is ten model. Eight models are heavy weight.
The opportunity with Buell:(cont.)

•8 heavyweight models in the XB family as well as the new 1125

R, the liquid cool engine developed at a cost of $30 million. 
•The Buell blast served the standard segment of the market. 
•1125R was a high- performance sports bike retained Buell
styling and character.
Buell Blast
•Competitors: BMW, Ducati, Big 4 of Japan (Honda, Suzuki,
Yamaha, Kawasaki had great presence in US and other
countries).
•U.S has a lower price, faster speed and high quality.
•Not presence large in China, India, Brazil & Russia.
•Buell has a large profit because of R&D Investment. 
Buell 1125r
•87% HD are aware but Buell 5% only aware.
The Decision:
• Stay the course
• Double down on Buell
• Endorse Buell
• Divest Buell
• Discontinue the Buell product line