I. Executive SummaryHarley-Davidson is the largest market share holder of motorcycles larger than 750cc in the United States. After expanding our manufacturing and distribution capacity, we will be able to meet the growing demand for our motorcycles and other products, including a new line of clothing specifically designed for women. The growth potential appears very good especially in the foreign market and in the market of young and mature women and young people. Gaining a larger market share in this area may require further increases in manufacturing and distribution capabilities. We need to plan expansion and build new strategies to target women, the younger market, as well as existing MH owners and continue to grow as a company.II. ChallengeHD has chosen the strategic direction of targeting women and the younger, technologically conscious market in order to increase its share of the first-time motorcycle owner market. With the introduction of the new VRSC'S and the new 833L and 1200L lowered Sportsters, designed for small riders who want more power, also encouraging owners of existing HD bikes to step forward and purchase a larger model. HD is able to achieve a considerable share in the market of first-time motorcycle owners, young men and women. To target women and the young market with the new product line, the company adopted the following marketing objectives: expand the current market (market expansion), diversify the product line (product diversification), and change the mix marketing to target women. and the younger demographic.III. Situation AnalysisBusiness AnalysisDuring the 1970s, HD was facing declining market share due to increasing competition with Japanese companies. By phasing out weak models, becoming more selective, and limiting sales and promotions, HD managed to carve out a niche in the market it enjoys today. Faced with a period of decline, HD relies on the new marketing objectives adopted. First, HD must expand its potential customer base to include young men and women who are more passionate and non-enthusiastic about purchasing HD motorcycles than any other competitor. This thinking was realized through the introduction of the lower and narrower VRSCs and Sportsters, Dynas and Softails and positioning them in the market for a younger audience. Second, HD needs to position the VRSC, Sportster, Dyna and Softail models to appeal to first-time motorcycle buyers as well. HD's strong brand identity can help acquire new customers.