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Harley Davidson Inc is said to be setting up plans to achieve its goal of attracting more customers, especially the younger riders. For starters, it will be applying the used-car method in an effort to draw more young customers.
Harley’s new strategy
As per Reuters, Harley Davidson thinks that one good scheme to pull in younger riders is to offer used motorcycles. The company said that it made the decision after realizing that customers are more likely to purchase brand-new rides once they have experienced how good the bikes are.
Plus, since they are younger, the prices of the new motorcycles may be a bit expensive for them; thus, purchasing a used one is the best option. Once they have experienced riding the Harley Davidson lines, surely, their next aim would be to buy a brand-new one.
With this strategy, the Milwaukee-based bike company is planning to implement it by rolling out a certified pre-owned bike program. Harley-Davidson is calling this project the “H-D Certified.”
A proven blueprint used by automakers
It was said that this game plan is not new and actually very well-known among carmakers. It has been applied in the past decades and proven to be effective.
This is because it gave the consumers an option to own vehicles for lower prices but still get the benefits that specific brands offer. This scheme was also described as a substitute for low-margin, entry-level new model units.
Harley Davidson is applying this plan as part of its five-year turnaround program. Under the supervision of CEO Jochen Zeitz, it is hoped that this new effort to expand Harley’s appeal to the younger generations will succeed. Currently, the customers are just the middle-aged and wealthy riders.
Now, this H-D Certified program was also done because Harley Davidson has been experiencing a steady decline in its market share in the U.S. due to low sales in the last six years. Then again, the demand for used Harley bikes remained strong since they are cheaper.
Meanwhile, Harley-Davidson Inc.'s shares underperformed last Friday. Market Watch reported that its shares closed at $8.50, which is below its 52-week high of $43.47 that was achieved on January 20.
