Nicole Villagran, a 30-year-old promotions manager at a radio station in San Francisco, is thinking about upgrading from the Kawasaki Ninja 250r motorcycle she has used to zip around the Bay Area for a decade.

She likes the look and roar of motorcycles made by Harley-Davidson Inc. "Yet I feel like it's more of a lifestyle, and I don't know if I fit in," Ms. Villagran said. "Something about guys who ride Harleys seem like a tough crowd."

As Harley-Davidson and its dealers look for ways to regain lost market share, they are finding it hard to let go of the macho act that has worked so well with baby boomer men.

Amid disappointing sales, Harley's stock price is down about a third from a year ago, and the company's share of the market for large motorcycles in the U.S. slipped to 52% in the third quarter from 56% two years before. A spate of recalls of defective bikes hasn't helped.

Chief Executive Matt Levatich has vowed to step up Harley's long-standing efforts to appeal to younger adults and women in general. The Milwaukee-based company says it plans to raise its marketing spending by 65% in 2016 as part of a drive to stop the slide.

Harley won't discuss those spending plans, but its dealers are putting out a mixed message. While many are trying to attract younger buyers and women, much of their marketing still caters to grizzled men reliving their youth.

The Doobie Brothers, a band whose heyday was in the 1970s, performed at the grand opening of a giant dealership in Scottsdale, Ariz., in November. Prime floor space often goes to big and loud chrome bikes rather than sleek and modern models. At periodic "bikini bike washes," Harley dealers hire women in skimpy swimwear to sponge down motorcycles.

That sounds like something "for old dirty pervs," said Ms. Villagran."It's not like Harleyis having wash parties with young guys washing my bike, right?"

Harley said it sold more than seven times more large motorcycles to women than its nearest competitor in 2015.

Harley's overall sales of motorcycles and related items totaled an estimated $5.33 billion in 2015, down about 4% from a year earlier, according to FactSet.

Ted Wright, chief executive of Atlanta-based marketing company Fizz, said young adults won't react to a hard sell but appreciate craftsmanship and tradition. Mr. Wright said Harley needs to tell stories about that brand that strike young adults as interesting and relevant.

The Harley dealership in Manhattan's trendy Tribeca district tries to project a youthful image. It posts pictures of motorcycle outings on Instagram, and the barista at its espresso bar sports dyed-blue hair, matching one of the glossy motorcycles nearby.

Yet the Tribeca store gives most of its prime window space to chrome-laden behemoths costing $28,000 and up -- the sort that appeal to 60-year-old dentists. Harley's Street models, costing less than $9,000 and designed for a younger set, are mostly relegated to the basement. The Street models, introduced two years ago, "have yet to gain a lot of traction," said Jim Love grove, general sales manager for the Tribeca store. Honda, Yamaha, Kawasaki, Suzuki and Indian Motorcycle all have introduced motorcycles targeted to the younger consumer and under $9000 in the last few years.  

Harley doesn't disclose sales for specific models. The company's chief financial officer, John Olin, told analysts in a recent call that the company "couldn't be more pleased with the overall rollout of the Street.

Some dealers don't see a burning need for change. Bob Parsons, the 65-year-old founder of GoDaddy.com and owner of the Scottsdale Harley dealership, said: "Everybody likes to look a little bit badass, and nothing says that better than a Harley shirt with a skull on it." Harley bikes are for those who can afford them, and those people are generally older, Mr. Parsons said.

Others are tweaking the message. Smoky Mountain Harley-Davidson puts on concerts at its store in Maryville, Tenn., often featuring younger country stars such as Jason Isbell and Sturgill Simpson. "It exposes young people to our brand," said dealership owner Scott Maddux. He also donates motorcycles and parts to high schools so students can learn by customizing them.

If Harley doesn't win over the younger generation, "what am I going to be doing in 10 years?" asked George Gatto, a Harley dealer in Pittsburgh. Mr. Gatto, 53, has rejuvenated his staff since taking the dealership over from his parents a few years ago. Many of his father's employees looked "like Santa Claus in leathers," he said, and weren't good at dealing with women or young people. He recently hired a 22-year-old woman as his marketing manager.

Mr. Gatto doesn't want to go too far. He typically hires classic-rock or blues bands to entertain customers at special events. Hip hop would be risky, he said: "The core riders are not going to like that."

Another problem Harley faces is complaints about the service department at Harley dealerships.  For example, one young woman in Aurora Colorado posted the following review:

I purchased a new 2015 Street Glide Special. Numerous and continual problems have cost me much time and money out of my pocket. I have experienced clutch problems from the very beginning. The chrome gas cap continuously needs to be adjusted in order to open. The clutch reservoir was recalled then hard bag connectors. I had the recall fix done for the fasteners but the bag still fell off. I had $200 worth of gear in the box. The guy in the service department at the dealership was incredibly rude to me, saying that I probably didn't attach the box correctly. He pointed to another customer (a big guy wearing a HOG t-shirt) and said he never had had a problem with the gear box. They refused to offer me any store credit for my loss. I called Harley's consumer department and finally convinced them to do the right thing. To their credit they called the dealership and arranged for me to receive a credit.

I paid a premium price for a Harley. I expected professional support from this company that brands itself "Top American Quality.".

 

  Please answer the following question. If you are confused by a question, make a reasonable assumption, state your assumption and then answer the question.

Young people are a new demographic target market for Harley Davidson. The Harley-Davison dealership in Branford could also describe their target market for Harley Street Models in behavioral terms. Describe this target market (young people) in behavioral terms. If you don't think there is enough information in the article to apply a particular type of behavioral variable, explain what information you would like to have about the market in order to apply this variable to the segmentation scheme .

Answer rating: 100% (QA)

Answer Variability can be defined as the ability of the service to be c... View the full answer