Rejuvenating an Iconic Brand, the company produced a new motorcycle brand called Buell to compete in the sport bike category to respond to the younger rider's preferences of a sport bike that is lighter, faster, sportier, and cheaper.

 In the aftermath, Buell's gross profit margin in 2007 was at 5%, which was lower compared to the 35% gross of Harley-Davidson. However, it was still expected to increase by 10% in the future but it rarely made a profit due to higher R&D investment.

 The management had (5) five options on the table:

(a) Stay on course with dual brand strategy. 

(b) Double down on Buell by adding more investment while preserving Harley brand. 

(c) Endorse Buell using Harley-Davidson brand. 

(d) Divest Buell by selling it to another company. 

(e) Discontinue Buell product line. 

 

Which decision should the management team take? and why?