In addition, the company changed its management style, adopting Japanese methods such as Just-In-Time inventory and employee involvement, as well as improved quality control [C1, p. 51; G1, pp. 10-11]. The results were impressive. Harley's market share moved up to almost 40% by 1988 [C1, p. 50]; to 46% by 1989 [H2, p. 38]; and to over 60% by 1990 [H1, p. 48]. Essentially, Harley's target market has al-ways been the knowledgeable biking enthusiast, for whom price or economy are not the critical buying motives. Unfortunately, this has become stereotyped into an image of icono-clastic ma-rauders who travel in gangs, but most Harley custom-ers are law-abiding. In fact, nearly a third of all Harley custom-ers are classified as "white-collar"--managerial or profes-sional types--and this is not new for the compa-ny [W1, p. 27].Motorcyclists, however, are very dissimilar to other consum-er markets. These have be-come increasingly fragmented, and many formerly secure, lucrative consumer goods areas have splintered into niche markets [S1, p. 55]. Brand loyalty is also crumbling, as demonstrated by the ever-increasing numbers of consumers who rush to buy off-brands, imports, and generic goods just to save money [L1, p. 16]. But cyclists are remarkably homogeneous, despite the fact that some of them have what might be called non-traditional lifestyles. They are united by their devotion to the sport and to their machines. Product Strategy. It appears that Harley did make an attempt to offer lighter-weight models to compete with Japanese imports, but without success. In the mid-1970s, in the low-priced under-125 cc market, three models were introduced, as well as two models for the under-350 cc market [K2, p. 107]. Now, however, only three engine designs are used, with displacements of 883 cc, 1200 cc, and 1340 cc [S3, p. 1097D]. Harley's recent success in recapturing its old market reflects a product strategy that gave up the previ...
