21 June 2005

Product Report (2 of 2, MTMU): Harley's VROD

Until Harley-Davidson introduced the VROD, their motorcycles weren’t typically known for high performance. Harley-Davidson has strong brand equity (Pg. 249*) and customers typically purchase a name, a look and that classic sound. With that said, Harley’s have also been known to be a bit cantankerous and require more maintenance than many of the competitive European and Asian bikes. It is important to note that they are trying to improve this perception.

The VROD was a departure from the existing product line making it a line stretch (Pg. 247*) for Harley-Davidson. The product line at the time ran from the Sportster (street) to the Ultra Classic Electra Glide (touring). All used traditional welded tube frames, air cooled engines to name just a few of the model similarities. A “clean sheet” of paper was used for the design and development of the VROD…the engine is liquid cooled and horsepower was increased to 115 (other models were less than 100), the frame was hydroformed and the list goes on…

Brian Day’s Road Test article in the Minnesota Motorcycle Monthly summarizes the existing motorcycle market when the VROD was introduced. Because there were so many motorcycles available at a variety of prices, a new bike would be risky. Furthermore, the money needed for product development (Pg. 283*) was substantial. However, as they enter the 2006 model year with three bikes in the VROD line (VRSCA, VRSCB VRSCR), it’s safe to say that they’re entering the growth period of the product life cycle (Pg. 290*). With growth, come sales and profits.

As a Harley-Owner (Fatboy) myself, I was skeptical when I first saw the VROD, but I was pleased that Harley-Davidson engineered the bike. In some way it proved that they were capable of producing a performance motorcycle...and it's growing on me too. Great marketing by Harley-Davidson.

*Principles of Marketing, Kotler & Armstrong, 11th Edition

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