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Non-Tech : Berkshire Hathaway & Warren Buffet -- Ignore unavailable to you. Want to Upgrade?

To: 249443 who wrote (151)	10/20/2001 9:37:15 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 240

Off topic -- Harley-Davidson / brand image / SRI (Social Research, Inc.) (a market research, brand identity, consumer "focus group" type firm; started up in 1946 as an off-shoot of University of Chicago). I was reading an article in the August 2001 issue of University of Chicago Magazine (i.e. -- the alumni magazine). The article is titled "Consuming Interests" (and -- is on pages 16 - 22 of the issue). The article is available on the Internet (at least for a while) here : alumni.uchicago.edu (Warning -- the article is long, and does "drag" in certain parts). It talks all about some of the pioneers of market research, brand image, etc. One thing that really caught my eye was this (from right near the end of the article) : "Researchers now can decipher exactly how much a brand's image is worth, how that image shifts demand toward or away from the brand. If the brand's appeal goes up, the company can raise the price, or sell more goods. The best example is motorcycle maker Harley-Davidson, which, according to Almquist, has the world's strongest brand image. While a Harley costs $18,000, the Japanese equivalent runs about $6,000. Yet Harley, at three times the price, "does not have the quality," said Almquist. "Harleys have more problems. They require more service. You have to wait six months to get one." But if you're serious about the biker lifestyle, freedom, the open road, and bugs in your teeth, you do not buy the Japanese knock-off because it is not a Harley-Davidson. You don't see many people, he added, with Yamaha or Suzuki tattoos." My question is : are there any motorcycle enthusiasts out there reading this; and -- is this stuff really true about Harley-Davidson ? (It also occurs to me that Harley-Davidson reminds me a lot of Coca-Cola, Gillette, and American Express in that they have absolutely nothing to offer to justify their higher price, yet they "get away with it." Maybe Harley-Davidson will be the next company amongst Warren Buffett's collection of companies that (through their ownership by Berkshire Hathaway) sends a signal to educated consumers that THIS COMPANY'S PRODUCTS ARE CLEARLY OVER-PRICED !!! ) Jon.