http://www.automotoportal.com/article/world-debut-of-unique-harley-davidson-prototype-at-intermot
Harley-Davidson released a prototype of a new dirt bike type motorcycle, the XR 1200. This bike is wildly different from the bikes we associate with Harley today, but not surprisingly it is focused on the European market. According to the Vice President of Harley-Davidson Europe, "We are experiencing strong growth in Europe and we anticipate that the XR 1200 Prototype will appeal to new customers, including younger riders currently using competitive brand standard and sports motorcycles. They probably like and admire the Harley-Davidson brand, but are not currently in the market for a more traditional custom or touring Harley-Davidson motorcycle."
It seems Harley wants to capture a new market, specifically European youth, but my first reaction is a negative one. Harley is very strongly associated with America and the culture here; how the European public will react to this new product specifically aimed at them? Will such a strong focus abroad dilute the intense loyalty and following of Americans? Will an influx of young riders shift the brand image and deter older generations from purchasing and remaining loyal? While the American and European markets are distinct, a brand as strong as Harley's will feel the effects of making a bad strategic branding move on either side. While the new model might prove lucrative in immediate sales and profits, I question if it is aligned with their historical and corporate mission and culture.
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The article reminds me of the Ducatti case we read in our core Strategy class last year. Ducatti had a strong brand meaning and associated lifestyle and their introduction of a cruiser bike similar to a Harley did not fit their culture.
To me it seems like Harley is trying to capture market share in Europe over building a strong brand association. In the US, we all know how strong of a brand Harley is but in Europe that brand meaning will not generate the same level of revenues. Its similar to how many auto company's cater to every markets needs - certain car models are available in only certain countries.
Sales of this bike to a youth market in Europe will not decrease loyalty among others in my opinion. When marketing globally, I think it is smart to focus on your core competency while being attentive to your customer's needs. If Harley only sold cruiser bikes in Europe would it be worth it for them to be in the market in the long run? They are diversifying products and as long as they do not abandon their cruisers, I think its a good move to expand in new spaces.
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