Question

Why is Harley-Davidson trying to attract younger buyers?

Why is financing / lending an important issue for Harley as it pursues younger riders?

What risks does Harley face by offering greater access to lending services for its buyers?

What strategies would you recommend, that are not mentioned in the article, to get younger buyers to purchase Harley's motorcycles?

Explain how motorcycles might fit well with younger consumers and their lifestyles.

Answer 1

As current loyal set of customers of the iconic brand, Harley Davidson, ages, the company needs new buyers. With rough earnings in 2017 and a partial plant shut down, the company is eyeing to attract younger buyers.

Financing / lending is an extremely important issue for Harley as it pursues younger riders because its products are relatively expensive than Japanese counterparts. If not provided with lending option the buyers may go for other affordable brands.

One great risk that Harley faces by offering greater access to lending services for its buyers is that the probability of new buyers defaulting on their loans is high as their source of income is not fixed and stable.

The most important thing that Harley could do is bring down its prices and compete on the basis of affordability. Affordable Harleys will increase its sales drastically.

Young consumers may use their motorcycles to commute to their schools and colleges, to go and meet friends, introduce their flashy motorcycle to the friends and loved ones. Motorcycle denotes a sense of freedom that comes with riding them.