advertising brings in new customers, but it also keeps your brand in the public eye. Out of sight, out of mind as the saying goes. The public has a short memory. Gotta keep reminding them you are still there. Some say it is better to advertise more heavily in bad economic times. Fewer consumer dollars. Keep the brand out there, that kind of thing. I wonder if their peak year 2008 (?) had them advertising more too. interesting topic.

 

Here you go, from the NY Times:



Harley-Davidson reports strong earnings

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CHICAGO — Harley-Davidson reported earnings Thursday that were better than expected as international sales growth offset weakness in its home market, sending shares higher.
The upbeat earnings report came despite rising fuel prices, tighter lending standards and falling housing prices, all of which have weighed on U.S. consumers and on demand for the sport vehicle industry.
The motorcycle company reported a second-quarter net profit of $222.8 million, or 95 cents a share, a 23 percent decline from the profit of $290.5 million, or $1.14 a share, it reported a year earlier.
Revenue fell 2.9 percent to $1.57 billion. Even so, the results were better than Wall Street expected.
Analysts, on average, expected the company to report earnings of 75 cents a share on sales of $1.41 billion, according to Reuters Estimates.
As a result, its shares rose in midday trading by 4.6 percent to $37.85.
In April, Harley warned that as a result of the economic slowdown it would cut production, lay off hundreds of workers and report full-year earnings well below its forecast. So topping expectations for the quarter soothed some of Wall Street's near-term concerns.
"It was definitely not as bad a quarter as some expected," said Robin Diedrich, an analyst at Edward Jones. "The key there was shipments."
Despite the strong earnings, Harley said it lost market share during the quarter.
That made some analysts, like Robin Farley at UBS and Ed Aaron at RBC Capital Markets, skeptical that Harley would be able to build on its favorable results.
Aaron said in a note to investors, "Our concerns over end-market demand are unchanged."
In beating expectations, Harley joined several other companies that reported earnings that were better than expected, easing concerns that the weak U.S. economy and the credit crisis would stifle corporate profits.
While Harley warned that the economic conditions in the United States would "continue to create challenges at least through the end of the year," it reiterated its forecast for full-year earnings per share of $3 to $3.18, a decrease of 15 percent to 20 percent from 2007.
Worldwide retail sales of its motorcycles fell 3.6 percent during the quarter, pulled down by an 8.7 percent decrease in U.S. retail sales.
Harley-Davidson acknowledged that the U.S. heavyweight motorcycle market actually grew during the quarter, meaning the company's market share shrank.
The company said international retail sales of Harley-Davidson motorcycles, which grew 11.2 percent during the quarter, helped offset the decline in sales in the United States, which is by far its biggest market.
Sales of parts, accessories, apparel and memorabilia also rose during the quarter, helping offset some of the U.S. weakness.
Canadian retail sales of its motorcycles were up 8.7 percent during the quarter, while European sales rose 9 percent and sales in the Asia-Pacific region were up 7.3 percent.
But Aaron at RBC said the international sales growth, helped by the weak U.S. dollar, was moderating and that he expected "further slowing as currency comparisons become somewhat tougher and economic weakness" spreads overseas.

 

Everyone is hurting in this economy...Even the once mighty HD. They sold Buell and MVAugusta laid off workers and are rumored to move from MKE

That is what they call cutting operating expenses to keep the "beloved shareholders" happy.

IMO if they kept their customers happy then they would sell more bikes, parts, service etc. Here's a hint:: HD give your repeat customers a "real deal"
on buying a new one - the same as the big 3 automakers. Something along the lines of "Owner Loyalty" dollars at $1000.00 and up. That's the way to do it.

This is my third HD and I have bought leftover's each time and had good discounts on all 3 of them

 

I personally won't miss this ad agency. Their flashy "Harley Lifestyle" images and text are ridiculous. They make the company seem to want to sell clothing and accessories, not motorcycles.

 

I would tend to think, The MoCo placed some demands on this ad agency, that they were not prepared to meet. Something to the tone of " Hey, We're paying millions of dollars a year for advertising and where the hell are the results? Get your *** in gear or your fired!"

I never heard of an Ad Agency dropping a customer, because their business was in the tank! The Ad Agency's job is to get them out of the Tank!

Hell GM and Chrysler, both fell on their *** in front of God and everyone, and you never quit seeing their ads.

Sounds like an Ad Agency trying to save their own reputation.

Harleys best form of advertising, is in ink, on a devoted customers arm!!!

 

No worries... this is totally a non-event.

I guarantee you that there were dozens of eager advertising firms on H-D's doorstep begging for those soon-to-be-signed advertising budget dollars the moment this so-called 'news' broke cover.

 

This is a major concern too you? This is a non-story and has no implecations on the health of HD.

 

i hope this forces my dealer to take down that poster with the horse-faced cross-dresser in pink.

 

"Canadian retail sales of its motorcycles were up 8.7 percent during the quarter"
I guess we are doing our part: how about you USA folks pulling your weight?

 

After all these years!


Harley has withstood depressions, World Wars, the AMF debaucle and the Japanese invasion!

Harley has nothing to fear but the EPA! The people that killed the Corvair and the air cooled Volkswagon are will kill the MOCO. It started in earnest in 07 and they got serious about it in 2010.

It will be a slow death but as the word gets out on the constipated ovens HD is building for the EPA it will be hard for any Ad agency to overcome it.