Milwaukee-based Harley-Davidson Inc. spent nearly $388 million on advertising and research and development last year, an increase of $52 million from 2018, according to securities filings.
Harley’s research and development spending climbed to $216.5 million, topping $200 million for the first time. The $24.9 million jump represented a 13% increase, the largest since 2015.
Advertising expenses increased $27.1 million or 18.8% to $171.4 million, the largest jump since 2005.
Harley has been making significant investment in recent years to drive demand for its products after launching a 10-year strategic plan in 2017. Over the course of the last 3 years, the company has spent an additional $66.4 million on research and development and $39 million more on advertising, compared to 2016 spending levels. To learn more about effective advertisement options see this
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Matt Levatich, president and chief executive officer of Harley, has spoken frequently about shifting the company’s mindset from building motorcycles to building riders. Harley is aiming to grow total U.S. motorcycle ridership to 4 million riders by 2027 from around 3 million in 2017.
“To sustain and grow the business over the long-term, the company must grow the sport of motorcycling and continue to be successful selling products and promoting the experience of motorcycling to new customers, including new riders, competitive riders and those who have motorcycle licenses but do not currently ride,” the company’s annual securities filing says.
While Harley grew market share by 2.5 percentage points in the cruiser and touring motorcycle segments last year, its market share in the overall 601+cc market dropped by 0.6 points to 49.1%. The company attributed the decline to relatively strong growth of segments where the company does not currently compete.
Harley has also invested to push into new motorcycle segments and is aiming to introduce 100 high impact models between 2017 and 2027. Those efforts have already included the launch of LiveWire, an electric motorcycle, last year and the planned launch of adventure touring and streetfighter models this year.
