Analysis of Harley-Davidson case study

1. HARLEY DAVIDSON:
AN EXTRAORDINARY
CUSTOMER EXPERIENCE?

2. History Of The Brand
• American company founded in 1903.
• American motorcycle manufacturer to have survived the Great
Depression (along with Indian)
• The company has survived numerous ownership arrangements,
subsidiary arrangements.
• Periods of poor economic health and product quality, as well as
intense global competition.
• To become one of the world's largest motorcycle manufacturers
and an iconic brand widely known for its loyal following.

3. Beginning
1901, first drawing was made.
1904, first prototype was made.
1905, bikes were in production.
1906, first factory was built.
World War I
1917, the U.S. military used Harley-Davidson motorcycles.
1920s
By 1920, Harley-Davidson was the largest motorcycle manufacturer in
world
Prototype

4. Great Depression
Harley-Davidson's sales fell in 1933.
1930, opened production line in Japan.
World War II
Harley-Davidson received two Army-Navy ‘E’ Awards, which were
awarded for Excellence in Production.

5. Tarnished Reputation
In 1952,Harley-Davidson was charged with
restrictive practices.
In 1969,production was streamlined, and workforce slashed. This
in lower-quality bikes. The company almost went bankrupt.

6. A Success Story
Video link: https://www.youtube.com/watch?v=mWD4IQdlhM0

7. Building Loyalty
Interact Closely With Customers:
Connecting customers, clients, patients
with company employees is highly
Motivating and informative.

8. Building Loyalty (CONTD.)
Develop Loyalty Programs
Frequency Programs(FPs) are designed
to reward customers who buy frequently
and in substantial amounts.
Help building long-term
loyalty with high CLV
customers.
Example:

9. Club Membership Programs:
Open clubs are good for building customer database or snagging
them from competitors.
Eg: Apple gives group members get discounts, share ideas, etc.

10. Building Brand Communities
A brand community is a specialized community of consumers and
employees. Characteristics are:
• A “consciousness of mind”
• Shared stories, rituals ,etc.
• A shared moral responsibility or duty

11. Types Of Brand Communities
Brand communities can be of many types:
• Some arise organically from brand users
• Others are company-sponsored and facilitated.

12. The Harley Owners Group (H.O.G)
Harley began its return to greatness by improving manufacturing
process and also developed a strong brand community in the form of
an inclusive owners’ club.

13. Origin Of H.O.G

14. H.O.G
• Linked to an aspirational lifestyle.
• H.O.G members ride in rallies every Sunday around the
world showcasing brand loyalty.
• Members include doctors, lawyers, movie stars,etc.
• Examples of events sponsored can range from short rides
major destination rides to local charity events.
• Riders associate riding as bonding with other owners.

15. Benefits Of Brand Communities
A strong brand community results in more loyal, committed
base. The more “connected” a member of the community was, the
greater the likelihood he or she would spend more.

16. Building a brand community requires:
1. Enhance the timelines of information exchanged.
2. Enhance the relevance of information posted.
3. Extend the conversation.
4. Increase the frequency of information exchanged.

17. How To Connect With Younger Audiences?
Personalizing Market:
It is about making brand and its marketing more personally relevant to
as many consumers as possible.
Wide-spread use of internet helps the company in doing so with tools
such as CRM.
Employees can create strong bond with customers.

18. Customer Empowerment and Reviews:
Make consumers evangelists of the brands.
By use of this technique customers become involved in brand
marketing.
Ex: Organizing rallies that showcase all the different bikes owned buy
H.O.G members and rallying them around a city.
Also by listening to customer feedback and making necessary changes.

19. Customer Complaints:
No matter how perfectly designed and implemented a marketing
program is, mistakes will happen and the company should make it easier
for the customer to file a complain.
Following should be done:
1. Set up 24/7 toll free number
2. Contact complaining customer ASAP.
3. Resolve complain swiftly, etc.

20. Summary
1. History of the brand
2. How to build loyalty
3. Success story of Harley-Davidson
4. Origin and history of H.O.G.
5. How to connect with younger audiences?

21. Disclaimer
Created by Sarthak Desai, MIT Manipal during a marketing
internship under Prof. Sameer Mathur, IIM Lucknow.