Harley

Essay by EssaySwap ContributorUniversity, Master's February 2008

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I am recommending that we continue sponsoring the posse ride for the coming years. I am also suggesting we keep enrollment to 400 for at least a couple more years in order to maintain a sense of exclusiveness. A close relationship with our customers is very important in order to create a strong brand image and a loyal customer base. Our customers are a unique group of people, and the posse ride gives them an opportunity to bond with other Harley riders. There is also a sense of validation, as successful riders are awarded Posse T-shirts & official Ride Certificates ("a really big deal," source of pride, something to display to friends and family back home). There are approximately 166,667 active HOG members. Total revenue per active member is $5575 per year. This results in annual revenue of $929,168,525. On the other hand, there are approximately 333,333 inactive HOG members.

Total revenue per inactive member is $4725 per year. Total annual revenue per year for inactive members is $157,4998,425. Total revenue is $2,504,166,950. It is obvious that there is room here to increase the number of our inactive members. Imagine if we continue with the posse rides, and more and more satisfied customers spread the word about how wonderful the experience is for them. If we estimate that approximately 20% of inactive members become active, we will see a 2.2% increase i.e. ($56million) increase in revenue (Exhibit 1). The estimated actual and future revenue for posse ride is $1737,000, while the estimated expense for the posse ride is only $325,000. Therefore, total net revenue for the posse ride will be $1, 405,000. (Exhibit 4&5) One thing I notice while there is the percentage of women who are posse riders. We need to increase the number of female posse riders. Lisa...