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Harley-Davidson enjoyed a monopoly in the motorcycle industry for many decades. In the 1970's, Japanese manufacturers flooded the market with high quality, low priced bikes. From 1973 - 1983, Harley's market share went from 77.5% to 23.3% with Honda having 44% of the market by 1983. Harley-Davidson could not compete on price against the Japanese motorcycle producers, so it had to establish other market values and improve quality.
Simultaneously, the United States consumer base was undergoing a revolution which mandated consumer driven products. Harley had to change from a company which dictated what its customers could have to strategies based on direct input from customers. A marketing philosophy was developed based on the customers desires, gathered through surveys, interviews and focus groups.
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"The real power of Harley-Davidson is the power to market to consumers who love the product" (Executive Excellence 6). Harley-Davidson's President and CEO, Richard Teerlink says the bike represents to America, "the adventurous pioneer spirit, the wild west, having your own horse, and going where you want to go - the motorcycle takes on some attributes of the iron horse. It suggests personal freedom and independence" (Executive Excellence 6). Brand loyalty for Harley-Davidson is emotional. They are considered more than motorcycles-they are legends. It is an American icon brand. The Harley-Davidson symbol is based on a pattern of associations that include the American flag and the eagle; reflective of the passion and freedom Americans enjoy.....