Harley Davidson 2015 Annual Report Download - page 6

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6
HARLEY-DAVIDSON, H-D, HARLEY, the Bar & Shield Logo, MOTORCLOTHES, the MotorClothes Logo, HARLEY
OWNERS GROUP, H.O.G., the H.O.G. Logo, SOFTAIL, SPORTSTER and V-ROD. The HARLEY-DAVIDSON trademark
has been used since 1903 and the Bar and Shield trademark since at least 1910. Substantially all of the Company’s trademarks
are owned by H-D U.S.A., LLC, a subsidiary of the Company, which also manages the Company’s trademark strategy and
portfolio.
Customers – Harley-Davidson appeals to a diverse range of customers across multiple demographics both in the U.S. and
worldwide.
U.S. retail purchasers of new Harley-Davidson motorcycles include both core and outreach customers. The Company
defines its U.S. core customers as Caucasian men over the age of 35 and its U.S. outreach customers as women (Caucasian, age
35+), young adults (ages 18-34), African-American adults (age 35+), and Latino adults (age 35+). In 2014 (which is the most
recent data available), for the seventh straight year the Company was the market share leader in U.S. new motorcycle
registrations (all cc's) within its core-customer segment and in each outreach customer segment. (Based on the Company's
analysis of Polk new motorcycle registration data from IHS Automotive)
Outside the U.S., the Company's definition of core and outreach customers varies depending on the profile of its
customers in each market. In general, the Company defines it core customers outside the U.S. as men over the age of 35 and its
outreach customers outside the U.S. as women and young adults.
Marketing and Customer Experiences – The Company’s products are marketed to retail customers worldwide primarily
through digital and experiential activities as well as through more traditional promotional and advertising activities.
Additionally, the Company's independent dealers engage in a wide range of local marketing and experiential activities
supported by cooperative programs with the Company.
Customer experiences have traditionally been at the center of much of the Company’s marketing. To attract customers
and achieve its goals, the Company participates in motorcycle rallies around the world and also in major motorcycle consumer
shows, racing activities, music festivals, mixed martial arts activities and other special promotional events.
One of the ways the Company promotes its Harley-Davidson products and the related lifestyle is through the Harley
Owners Group (H.O.G.®), which has approximately 1 million members worldwide, is the industry’s largest company-sponsored
motorcycle enthusiast organization. H.O.G.® also sponsors many motorcycle events, including rallies and rides for Harley-
Davidson motorcycle enthusiasts throughout the world.
The Company's Harley-Davidson® Riding Academy offers a series of rider education experiences that provide both new
and experienced riders with deeper engagement in the sport of motorcycling by teaching basic and advanced motorcycling
skills and knowledge. Since its inception, the program has trained more than 445,000 riders. The courses are conducted by a
network of participating Harley-Davidson dealerships throughout the U.S., Canada, South Africa, China, Australia, Mexico and
Brazil, enabling students to experience the Harley-Davidson lifestyle, environment, people and products as they learn.
The Harley-Davidson Authorized Tours program allows motorcyclists/enthusiasts to experience riding opportunities
worldwide. Riders can also rent Harley-Davidson motorcycles worldwide from participating dealers through the Company’s
Authorized Rentals Program.
The Company operates the Harley-Davidson Museum (Museum) in Milwaukee, Wisconsin. The Museum is a unique
destination that the Company believes builds and strengthens bonds between riders and Harley-Davidson and enhances the
Harley-Davidson brand among the public at large.
Distribution – The Company’s products are retailed through a network of independent dealers, of which the majority sell
Harley-Davidson motorcycles exclusively. These dealerships stock and sell the Company’s motorcycles, P&A, general
merchandise and licensed products, and perform service on Harley-Davidson motorcycles. The Company believes the quality
retail experience that its independent dealers provide is a differentiating and strategic advantage for the Company.
P&A, general merchandise and licensed products are also retailed through eCommerce channels in certain markets. In the
U.S., the eCommerce model is facilitated by the Company. Retail internet orders are fulfilled and shipped by the Company,
which acts as a limited agent for participating authorized U.S. Harley-Davidson dealers who are the merchant of record for all
transactions. In China and India, the eCommerce sites are operated by third-parties.