Harley-Davidson Media Plan


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Harley-Davidson Media Plan

  1. 1.
  2. 2. Table Of Contents<br />Executive Summary………………………………….1<br />SWOT………………………………………………….4<br />Creative Brief…………………………………………17<br />Media Objectives/Strategies………………………..22<br />Appendix………………………………………………35<br />
  3. 3. Executive Summary<br />Harley Davidson<br />
  4. 4. The goal of this campaign is to increase sales of the Harley Davidson Sportster among the target audience of women ages 35-44 that are married, with some college education, and self described as Gen X females seeking to escape boredom. The HD Sportster’s weight and balance is ideal for the average woman’s frame. The plan is to increase sales amongst this target audience by 3,000 units within one year. Annual production of the HD Sportster is 19,400 units/year. Within one year of the campaign, increasing the total sales of HD Sportster units to 22,400 is the marketing task.<br /> We will build the HD franchise by marketing the Sportster directly to women. By grasping and understanding the Harley culture through researching quantitative, as well as lifestyle data, this media plan will use inclusion marketing to market the Harley Davidson brand directly to the target audience.<br /> For the Harley Davidson culture, women are a vital part of the HD brand awareness strategy. <br /> 2<br />
  5. 5. DMA for the media plan is:<br />New York, NY<br />Los Angeles, CA<br />Chicago, IL<br />Philadelphia, PA<br />San Francisco, CA<br />Television – the ad will present the image of the Harley culture and what the consumer will be included in with the purchase of the Sportster.<br />Outdoor – billboards in top 5 DMA’s on major highways and high Harley traffic such as interstates and county roads.<br />Non traditional media<br />Sponsor MADD ride off which will also reinforce the brand amongst the Sportster’s target audience<br />Sponsor a bowl-off in each of the top 5 DMA’s<br /> 3<br />
  6. 6. SWOT Situational Analysis<br />Harley Davidson<br />
  7. 7. Analysis of Marketing Objectives & Strategies<br />What are the 4 P’s of Harley-Davidson?<br />Product - Harley-Davidson Sportster. Currently, the Sportster is offered in 7 models for 2009. <br />883 Low – XL 883L<br />883 Custom – XL 883C<br />Iron 883 – XL 883 N<br />1200 Nightster – XL 1200N<br />1200 Low – XL 1200L<br />1200 Custom – XL 1200C<br />XR 1200<br />Place - Harley-Davidson has cultivated close relationships with dealers and provided a full line of products, such as clothing, to expand the profitability of the Harley brand. Dealerships have become a gathering place for the dedicated Harley members where jam sessions, cookouts, swap meets and other events are most popular.<br />Price - Any of these models range from $6,000-11,000.Pricing is an important tactic of the Harley strategy, as the company has been unable to produce enough bikes to satisfy demand. But Harley has not increased the price. Rather, HD seeks a reasonable price to keep the customers coming back and seeking to promote the vision of the true Harley-Davidson brand. <br />Promotion - Harley-Davidson has implemented several strategies to promote its motorcycle brand. The products were sold to retail customers mainly through dealer promotions and customer events. Along with the advertising tactics through national television, print, radio, direct mailings and the internet. <br />
  8. 8. A few key numbers for Harley-Davidson in 2008.<br />Company Type Public (NYSE: HOG) <br />Fiscal Year-End December 2008 Sales (mil.) $5,971.3 <br />1-Year Sales Growth (2.8%) <br />2008 Net Income (mil.) $654.7 <br />1-Year Net Income Growth (29.9%) <br />2008 Employees 10,100 <br />1-Year Employee Growth 3.3% <br />What is the total size of this market?<br />Primary – Women 35-44 (9,872,800)<br />Secondary – Women 25-34 (8,759,200)<br />What methods have been used to sell this product? <br />Harley-Davidson has used integration as the key to its success. HD has chosen partners and has established relationships with key retailers that are obligated to sell Harley-Davidson products; allowing to promote, advertise, and market any products they wish to increase revenue upon. <br /> 6<br />
  9. 9. Product life cycle? <br />Harley-Davidson has peaked its age at over a century. Being at a mature stage in its market and life cycle, Harley-Davidson still competes with ease against competitors still today. <br />Any sales goals Harley-Davidson expects for there products? <br />HD experienced a drop in revenue in 2007 from $61,430,000 to an estimated value of $59,971,300 Increasing their brand awareness, sponsoring more events to help brand recognition, spending increase for advertising and check all marketing processes will help a stabilizing increase financially for Harley-Davidson. <br />Current awareness and how has it changed recently?<br />Harley-Davidson has become the American motorcycle. A brand that will always be recognizable. Over the years, the popularity, not only in the U.S., but in Europe has increase dramatically. The international growth is a sign of the incredible strength of the Harley-Davidson brand abroad and the ability of the brand to transcend cultures and languages.<br />Awareness goals for the future of Harley-Davidson? <br />Customer relationships, market -defining products and extraordinary customer experiences is the key to there success. Continuing to focus on strengths, connecting with core customers, crossover prospects and non-riders like never before, and staying ten steps ahead of competitors. From promotional events like the upcoming 105th Anniversary Celebration or an exclusive Nightster motorcycle launch party for young adults to our Dark Custom family of motorcycles. <br />
  10. 10. Competitive Considerations<br />Who are all the major competitive players?<br />Honda Suzuki <br />Yamaha Kawasaki  <br />What share of the market do they have? <br />Harley-Davidson is the only domestic supplier with a substantial share of the market. Retailers are split between shops that carry “Big 4 Bikes” and Harley-Davidson dealerships. <br />Honda is currently the market leader, and the world&apos;s largest supplier of motorcycles. Yamaha is the third-largest supplier in the U.S., after Honda and Harley, and the only supplier for whom motorcycles present the majority of company revenue.<br />Which media does the competition use? Which Vehicles?<br />Multimedia    Internet Advertising<br />Consumer Magazines Network T.V. <br />Exhibits/Trade Shows Point of Purchase<br />Spot T.V. <br /> 8<br />
  11. 11. Financially is Harley-Davidson keeping up with the competition? <br />Price has become a major competitive factor for consumers in the motorcycle market and because Harley-Davidson is competing against competitors globally, the company may have a competitive disadvantage.<br />Harley-Davidson’s financial operations face remarkable competition from various banks, insurance companies and other financial institutions, some of these institutions include more financial products than what Harley-Davidson currently offers. <br />Compared with the competition, is your brand unique or does it resemble competitor style completely? <br />Harley-Davidson, in a sense, can be thought of as the “American Dream.” With sleek designs, reasonable costs and more variety of Harley products separates them from competition. <br />What share of market do they have against Harley-Davidson? <br />Having stiff competition, Harley-Davidson still oversees and holds 60 percent of the U.S. market and uses the brand loyalty for a remarkable landslide over competition. <br /> 9<br />
  12. 12. Creative History of Brand<br />How is the product currently positioned? <br />Consumer relationships, successful marketing and inspiring customer experiences are the key successes of Harley-Davidson.<br />What is the current copy theme? Slogan? Headlines? <br />“Until you&apos;ve been on a Harley-Davidson, you haven&apos;t been on a motorcycle”. This slogan, along with many others, has directed Harley-Davidson to the top by having its customers’ simply enjoying a good motorcycle. <br />Which media are currently being used by this brand? <br />Catalogs & Directories Network T.V. <br />Co-op Adv. Spot T.V.<br />Consumer Magazines Special Events Marketing *<br />Direct Mkt. to Consumers Premiums & Novelties <br />Exhibits/Trade Shows Point of Purchase <br />Internet Advertising Outdoor (Posters, Transit) <br />Atlantic Beach Bike Festival Press Releases<br /> * It draws in bikers from around the U.S. to participate in the largest beach festival. Harley-Davidson, for the first time, sponsored this event to capitalize on consumers and the trend-setting celebrities in attendance.<br /> 10<br />
  13. 13. Does this product have a high or low involvement process? <br />Selecting a Sportster or any type of motorcycle model would be a high involvement, step-by-step process. Other products, such as HD apparel, would be a very low involvement decision. <br />How do users feel about the brand? Attitudes? Lifestyles? Psychological benefits?<br />“Harley-Davidson is a person in disguise. Harley-Davidson appeals to you as an individual, appeals to your need for escape and adventure. The whole spirit is the ability to take that individuality to customization.” A quote used by Ruth Crowley, a Harley-Davidson follower, from an article by Joyceann Cooney regarding Harley’s dedication to its consumers. Offering these consumers a sense of pride and belongingness. <br />Women riders are a major target for Harley and moving up to the driver’s seat of their own Harley-Davidson motorcycle. Many have encouraged and inspired friends and family members to do the same. The passion for the road, the thrill and the freedom is contagious. <br />How is the product/service used? Consumed? When? <br />The best time to buy a Harley or any products provided by the company is through HD advertisements, consumer touchbacks and amount of locations available; you can purchase anytime. <br />
  14. 14. Is the brand distributed nationally, regionally, or both? <br />HD has been distributed nationally as well as regionally for decades, the image of HD is the American Chopper, the wild hog of the streets, and will continue to be distributed nationally, with strong focus on key regions.<br />Advertise in national media only?<br />Although national media distribution would incorporate the all markets, we are focusing on the top 5 spot markets as our primary targeted campaign. <br />Advertise national media with heavy-up buys in key spot markets. Does data support this decision? <br />HD will continue to advertise nationally on a steady level but will put a strong emphasis  on the top 5 geographic markets.<br />Which spot markets have best potential?<br />New York, NYLos Angeles, CAChicago, ILPhiladelphia, PASan Francisco, CA<br />These are the top 5 spot markets for HD to focus on for the primary target market based on data provided by US Census/ Nielsen, SRDS data: SRDS 2004, The Life Style Market Analyst.<br />What types of non traditional media can be justified for this brand? <br />HD will hold many types of promotional events as well as sponsorships events such as HD Mothers Against Drunk Drivers.<br /> 12<br />
  15. 15. BDI & CDI<br />BDICDI<br />New York 90.75 83.33<br />Los Angeles 140.3 130.8<br />Chicago 71.43 52.63<br />Philadelphia 88.42 61.31<br />San Francisco 336.96 163.04<br /> 13<br />
  16. 16. Timing & Purchase Cycle<br />Is life cycle relevant?<br />From data gathered from HD’s Web site it is apparent that the HD brand is in its Mature stage of the product life cycle <br />What is the purchase cycle for this product? If purchased frequently, (more than once a month) reminder advertising may be appropriate in broadcast media, newspapers, or outdoor?<br />Though HD bikes are high-involvement purchases that are bought infrequently, outdoor advertising is a positive tactic to reinforce brand awareness.<br />Can weather or climate in geographic regions be used strategically? <br />From examining our Estimated Value Percentages, HD’s top 5 DMAs (including: New York, NY; Los Angeles, CA; Chicago, IL; Philadelphia, PA; and San Fransisco, CA) are a mixture of both seasonal and consistently warmer geographical regions.<br /> 14<br />
  17. 17. Questions About the Media Mix<br />Which media vehicles match the lifestyle of your target audience?<br /> Catalogs & Directories Network T.V. <br /> Co-op Adv. Spot T.V.<br /> Consumer Magazines Special Events Marketing<br /> Direct Mkt. to Consumers <br /> Exhibits/Trade Shows <br /> Internet Advertising <br /> 15<br />
  18. 18. Is the message simple or complex?<br />Simple. According to MarketLine, Harley-Davidson is one of the leading manufacturers and rated highest in customer relationships providing increasing revenue. <br />Does product need to be shown visually? Why?<br />Harley-Davidson’s logo is the representation of its brand’s loyalty by there demographic location target. <br />Is color important in your media mix for this brand?<br />Advertising the bold Harley-Davidson brand colors will attract new consumers and maintain relationships with current supportive consumers. <br /> 16<br />
  19. 19. Creative Brief<br />Harley Davidson<br />
  20. 20. Communication Objective<br />Remind - Seeks to make consumers and HD riders aware that the HD Sportster is a Harley although the Sportster is an entry level bike, it is imperative to remind consumers/riders that the Sportster riders are in fact included in the “Harley Club.”<br />Brand Loyalty- Since the Sportster is an entry level HD, it is important to establish brand loyalty because in the future, Sportster riders will purchase higher-end HD bikes. Since HD has virtually no competitors, brand loyalty is less important to establish with all HD owners, but it is important to establish brand loyalty with Sportster riders because further purchases of the higher-end HD models could occur. Establishing brand loyalty with wives of HD riders is also an objective.<br />Awareness - Increasing brand awareness to the target market will increase the customer traffic to HD retail stores and HD’s Web site. Increasing brand awareness will initiate a process leading to the final purchase of a HD Sportster. Awareness will also further increase/reinforce the idea of owning a HD includes the owner in the exclusive “Harley Club.”<br /> 18<br />
  21. 21. Creative Strategy<br />Overall, the goal is to have the HD brand perceived as an inclusive buy, meaning, when a female consumer purchases a HD Sportster, she isn’t just getting a bike, she is also gaining admittance into the ever-exclusive “Harley Club,” (mostly male dominated) where the only rule is to own a HD motorcycle. The HD Sportster will be perceived as a buy-in ticket to the “Harley Club” for potential female consumers because the Sportster is an entry-level bike.<br />The HD Sportster’s existing position is an entry-level HD bike targeting primarily 30-39 year old women. These women want to be perceived as legitimate HD owners.<br />Women Sportster riders want to be included in the HD culture and viewed as legitimate HD riders. Also, as do most HD riders, these women want to escape from the day-to-day grind of everyday life by hopping on their HD and riding off.<br /> 19<br />
  22. 22. Brand Promise<br />The brand promise is the benefit of being included into the most exclusive, yet most well-known, club in the world. Riders of the HD Sportster will be promised inclusion into the “Harley Club” and the HD culture.<br />Tag Line<br />“Inclusion to the Exclusive”<br /> 20<br />
  23. 23. Tone<br />The tone of voice for the HD Sportster brand advertisements will be a serious tone of a man’s voice describing the HD culture and the product features of the Sportster, emphasizing the smaller frame of the bike which makes it ideal for potential women customers. The use of a male voice in the ads will further reinforce that HD Sportster riders are legitimate HD owners/riders., and included into the exclusive HD culture.<br /> 21<br />
  24. 24. Media Objectives/Strategies<br />Harley Davidson<br />
  25. 25. Target Audience & Media Mix Objective<br />Target Audience: <br />Women appear to be the next emerging market in the motorcycle category. In the last decade, women owners of bikes in the 850cc class and above have grown from an estimated 5.3 percent to 10.8 percent<br />PRIMARY: The primary target audience is married women, 35-44 with college education, and an annual household income of 65,000+.<br />SECONDARY: The secondary target audience is married women, 25-44 with college education, with an annual household income of 65,000+. <br />Both primary and secondary target audiences are women who have the desire for the freedom on the open road, and to escape their every day ordinary lives. <br /> 23<br />
  26. 26. These women also portray the following traits: <br />Hold part time/full time jobs during the week <br />Hidden tattoos<br />Thrill-seeker<br />Attitude<br />Wears boots<br />Wears tight fitting jeans<br />Typically wears hair longer<br />Media Mix:<br />Beginning the third week in April, launch teaser campaign ads/commercials for the Sportster on the television channels: ABC, CBS and Lifetime in the top 5 DMA markets. These ads will be 30 seconds in duration and will be run for two weeks.<br />Beginning May 1, 2009, on the 3rd Annual International Female Ride Day, every woman who test rides a Sportster, will receive a discounted price on the purchase of the motorcycle. This discount will be in the form of a coupon and will expire after 6 months. <br />This campaign will also include a one page ad with information about the test ride event in the April 2009 edition of American Iron, #1 motorcycle magazine on the newsstand, as well as in Ladies Home Journal. <br />Finally, those who visit www.harleydavidson.com, will have the opportunity to sign up for a raffle, which prizes will be given those whose names are drawn. One lucky name drawn will receive a free Sportster courtesy of Harley Davidson.<br />For a form of non-traditional advertising, Harley Davidson will place blimp style motorcycles throughout shopping centers in the top 5 DMA cities. These blimps will advertise the Sportster.<br /> 24<br />
  27. 27. Reach-Frequency & GRP Objective <br />Achieve 75% reach during the two weeks of the teaser campaign (154 GRP’s) with a 2.05 frequency. (See Appendix page 37) Reach will range from 70-75% over the duration of the two week campaign, and frequency at lowest will be 1.5. With a reach of 75%, it is a respectable and attainable goal. 75% would reach ¾ of the prospective target market(s). With a frequency of 2.05, it is just below the optimum frequency level of 3.0, but relates with the short campaign duration of two weeks. The non-traditional reach goal is to get at least 30-35% of women to visit a Harley-Davidson retail store to test ride a Sportster.<br /> 25<br />
  28. 28. Reach-Frequency & GRP Strategy <br />Traditional media will peak during the first week of the campaign with 154 GRP’s in television. Media weight will go toward “ABC: American Idol” and “CBS: Extreme Home Makeover” and “Lifetime: Say Nothing”. The print ad will contain information about the Sportster giveaway.<br /> 26<br />
  29. 29. Scheduling & Timing Objective <br />All campaigns will take place in April/May. Campaign kicks off with the teaser ads beginning the third week in April and will run through May 1st, which is the date for the test ride event. Traditional media will run continuously for the last two weeks in April. The website raffle will also begin in the third week of April and will remain open until May 1st, which will also be the actual drawing for the Sportster. American Iron and Ladies Home Journal, will both print a one page ad (See Appendix page 39) for the test ride event occurring on May 1st in the April edition.<br /> 27<br />
  30. 30. Scheduling & Timing Strategy <br />The teaser campaign (154 GRP’s) will run during the first week of actual campaign. The broadcast buys in TV will run after the average work day is complete, between 6 pm and midnight. The raffle will remain accessible 24 hours a day on www.harleydavidson.com for two weeks and will close May 1st at 12 am. American Iron and Ladies Home Journal (See Appendix page 39) will print a one page ad for the test ride event occurring on May 1st in the April edition.<br />The spending will be accelerated in the last week of April with continuous traditional advertising.<br /> 28<br />
  31. 31. Media Budget Objective <br />Harley Davidson’s $23 million budget is limited to spending in the top 5 DMAs. Each market will receive a percentage of the total budget based on the Estimated Values (EV%) rankings from a spreadsheet analysis of all 5 markets. (See Appendix page 40)<br /> 29<br />
  32. 32. Media Budget Strategy <br />A spreadsheet analysis of the top 5 DMA’s based on these categories: (See Appendix page 40)<br />1. Total women ages 35-54 in each market<br />2. Motorcycle category sales by market<br />3. Sportster sales by market<br />The $23 million budget will be allocated as follows: (See Appendix page 36)<br />$5 million for non-traditional media, including Bowl-a-Thon<br />$15,975 million in mass media (Cable TV, Magazine, Internet) in 5 DMA’s<br />$25,000 covers the expense of the Sportster being won from the raffle<br />$2 million in discounts given to those who test ride<br /> 30<br />
  33. 33. Geography Objective<br />All cable TV buys are restricted to spot buys in the top 5 DMA’s. <br /> 31<br />
  34. 34. Geography Strategy<br />MRI and CMR data combined with Harley Davidson’s proprietary marketing database provided information for a spreadsheet evaluation of the top 50 DMA’s. Market selections are predicted on EV% growth potential for the Harley Davidson Sportster. In ranking order, the 5 metros selected from the top 50 include:<br />1. New York, NY<br />2. Los Angeles, CA<br />3. Chicago, IL<br />4. Philadelphia, PA<br />5. San Francisco, CA<br />The Harley Davidson spreadsheet analysis for this plan is based on three criteria: <br />1. Population of women 35-44<br />2. Average household income<br />3. Percent of U.S motorcycle commuters.<br /> 32<br />
  35. 35. Sales Promotion Objective<br />Goals:<br />Increase sales of the Sportster (all models 883cc-1200cc) among women by 3,000 units by one year. <br />Build on the Harley-Davidson franchise by marketing the brand directly to women. <br />Increase of revenue which will be accomplished through teaser campaigns, price promotions, and magazine awareness strategies and promotion of Harley-Davidson by internet clicks per page. <br />Primary vehicle: Television<br /> 33<br />
  36. 36. Sales Promotion Strategy<br />With an annual estimated production of 8 percent from the Harley-Davidson Sportster sales, the top 5 DMA’s have been chosen with respect to ESV percentage ranking order, and will participate in promoting the motorcycle to more women. Teaser ads will run for two weeks in April in selected media dominated by women. Beginning and ending on May 1, the 3rd Annual International Female Ride Day, every woman who test rides a Sportster at a Harley location within one of the DMA’s selected, will be given a 5 percent discount off the purchase price. <br /> 34<br />
  37. 37. Appendix<br />Harley Davidson<br />
  38. 38. Budget Allocation<br />$1,025,000<br />$2,000,000<br />Total: $23 Million<br />$3,993,750<br />$4,000,000<br />$7,987,500<br />$3,993,750<br /> 36<br />
  39. 39. 37<br />
  40. 40. Media Flow Chart<br /> 38<br />
  41. 41. Harley Davidson<br />&quot;SPORTSTER&quot;<br />Test Ride!<br /><ul><li>MAY 1st ONLY: Each woman who test rides the new HD SPORTSTER will receive a generously discounted price.
  42. 42. Visit your local Harley Davidson retail shop or harleydavidson.com for more information.</li></li></ul><li> 42<br />
  43. 43. Thank You<br />This media plan has been presented to you by:<br />Group 9<br />Christopher Cottrell<br />Kelly Deason<br />Tyler Kaha<br />Kyle Sahadi<br />Tim Sheldon<br />Jonathon Sitarski<br />