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2. Marketing Management CASE STUDY (20 Marks) On 31 August 2003 Harley-Davidson (HD), the only major American player in the world motorcycle market, celebrated its 100 th anniversary. In 2002, H-D reported its 17th consecutive year of record revenue and net income. In 2001 Forbes magazine named HD the ‘company of the year’ for its record sales growth, earnings, and strong overall financial performance. The case discusses the way H-D has been creating value for its shareholders: (1) by positioning itself as a lifestyle product (with the capacity to satisfy deep- seated psychological needs); (2) by lowering buyers’ price sensitivity (and in the process paving the way for premium pricing); and (3) through risk management and synchronized operating processes.

3. Answer the following question. Q1. Analyze how H-D creates value for its shareholders. Q2. Discuss the marketing strategies of H-D.

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