Harley Davidson India launched exchange offer which is kind of loyalty programme. Offer is that Harley Davidson Street 750 and street rod customers can exchange their bike for full ex showroom Price with Harley Davidson’s new softail range of bikes. But there’s a catch. Only bikes which are One year old less old will fetch full ex showroom price. Older bikes will be given 75% of their Ex-showroom price.
Is it Beneficial?
This offer is more like loyalty programme. Customer will buy Harley Davidson range only through exchanging their entry level bike. Customer will get their hands on much premium range of bikes with the exchange of their entry level cruisers. But customers will get bikes which are CBU (Completely Built Unit) imported so will have to pay higher taxes and also their maintenance will be higher. So that bike will be much big financial liability. But it’s a Harley. Who cares about the ownership cost? The brand has huge heritage and the bike are more like a heritage sold to the customer.
Effect on brand status
There will be both positive and negative effects on brand value. Harley Davidson is seen as one of most prestigious cruiser all over world and much premium in India. Younger generation will be attracted to buy higher range of Harley Davidson. Although, there is other side too. Affluent customers who are able to buy higher range of Harley’s will miss out on discount as they would get normally otherwise. But looking at brand status Harley enjoys in India, potential buyers would not mind such issues. It’s like a bet but if Harley succeeds in attracting more customers to premium range it would be win-win situation for Harley Davidson India. While, it may look as a part of clearing stocks but it’s more like moving existing customers to higher range of bikes.
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