Harley-Davidson (HOG) released a statement of goals called to “Amplify Brand Power.” The market reception, however, has been frosty.
Now, we know that people who ride Harley’s skew older, and that it is trying to reach a younger audience. And its statement today focused on that goal. To wit: “With deeper consumer insights driving its refined plan and sharpened objectives, Harley-Davidson, Inc. (”Harley-Davidson”) (NYSE:HOG) is strengthening its efforts to build the next generation of riders.”
So how does Harley plan to strengthen those efforts? Well, details are scant. “The company plans to focus investment and build new capabilities to invigorate the Harley-Davidson brand and experience to spark passion that deepens rider commitment,” the statement reads.
“Brand and consumer-facing teams are being structured and aligned with an even deeper consumer focus to reach people with consistent and engaging brand experiences,” it continues.
“The company’s intensified rider-centric approach and extensive consumer research show that bringing new riders in and keeping all riders riding—no matter what their experience level, age or life stage, is critical to achieving its objectives,” it explained.
Harley offered some goals, too. “Outside the U.S., the company has sharpened its objective through 2027 and plans to grow international business to 50% of annual revenue,” according to the statement.
Those are lofty goals. And Harley plans to reach them with better products, making it easier to buy their motorcycles, and working with dealers to improve the experience, as well as amplifying the brand. It also plans to spend more on the plan to make it happen. To do so, it ”plans to fund it entirely through comprehensive cost reduction and reallocation of previously planned investment and resources including operating investment through 2022 of $450 to $550 million and capital investment through 2022 of $225 to $275 million.”
Harley-Davidson declined to comment on the stock’s decline.