Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Harley Davidson - Marketing Strategies: Past, Present and Future.

2,444 views

Published on

Marketing Strategies: Past, Present and Future

Course: Marketing Strategy

University of Ottawa

Group Members:

Asif A. Ali
Ali Mirza
Matt Conley
Raj Gill
Shana Tannis

Published in: Education, Business, Automotive
  • Be the first to comment

Harley Davidson - Marketing Strategies: Past, Present and Future.

  1. 1. Ali Mirza Asif A. AliJustin Joshua Chieffallo Matt Conley Raj Gill Shana Tannis
  2. 2.  Harley Davidson: Summary ThePast: The Good, The Bad and the Ugly The Present: 2007 – 2012 The Future: Where is the brand going? Conclusion
  3. 3.  Harley-Davidson was founded in 1903 in Milwaukee, Wisconsin. Thecompany incorporated in 1981 and went public in 1986. Theycurrently sell at 1,300 different dealerships in 70 countries.
  4. 4.  Built a Community and Fostered a Sense of Belonging Repositioned Brand without Alienating Traditional Customer Base Built an Extremely Strong and Highly Recognizable Brand Created Added Value
  5. 5. • Sponsorship of Harley Owners Group (H.O.G.) in 1983• “We are committed to motorcycling. It’s not hardware; it is a lifestyle, and emotional attachment. That’s what we have to keep marketing to.” - Richard F. Teerlink, Harleys former chairman and former chief executive
  6. 6. • Association with the Muscular Dystrophy Foundation  Group begin riding for charity (1980s)• Harley Davidson Foundation  Supports educational, health, and environmental causes in local communities
  7. 7. • “All-American” brand that symbolizes freedom• Recognition dates back to World War II• Culture promotes and represents:  Individualism  Freedom  Non-conformism  Empowerment• “Most people can’t understand what would drive someone to profess his or her loyalty for our brand by tattooing our logo onto his or her body – or heart. My fellow employees and I understand completely.” - Richard F. Teerlink, Harleys former chairman and former chief executive
  8. 8.  Ride Free marketing campaign Aftermarket for Harley parts and customizing kits Value of used Harleys has skyrocketed
  9. 9.  Poor Quality Brand Over Extension Narrow Target Market Negative Perception
  10. 10.  Over Production Leads to Poor Quality • Oil Leaks Competitor Bikes • Lighter • Quieter • Better Handling
  11. 11.  Began to Extend the Brand Too Far • Wine Coolers • After Shave and Perfume • Cake Decorating Kit Upset Brand Loyal Consumers • Wanted Company Focus on Bikes and Bike Accessories.
  12. 12.  Middle Aged Men (Ad) • Limited Consumer Base • Put Harley Davidson in a Niche Market  Only Targeting Middle Aged Men  Ultimately Limiting Harley Davidson’s Out reach
  13. 13.  Harley Davidson known as a Hells Angles bike.
  14. 14.  “One-size-fits-all” agency solution. Market Share dropped from 48.8% to 45.6%. US sales dropped 9.4% in first quarter 2007. Target new segments:  Youth  Women & Minorities
  15. 15.  Research showed they liked less-chromed, light and smaller bikes with heritage classic style. H-D added a product line: “Dark Custom” Price was an obstacle: 883 Iron Sportster. • “About six bucks a day. Cheaper than your smokes, A six-pack, a lap dance, a bar tab, another tattoo, a parking ticket, a gas station burrito or more black T-shirts” Negative connotation • AD Result: Young-adult segment went from being worse to best performing segment in 2008.
  16. 16.  Empowerment and Liberating theme. Garage parties and women riders month: Women only environment, sharing experiences and learning. Educational Program: learn to ride over the weekend, meet other riders. One in four riders is a woman.
  17. 17.  Crowdsourcing: and user generated content. New targeted segments: Mass customization “Build your bike, build your freedom”
  18. 18.  Theme: Liberation, Individuality, Independence, Empowerment… Campaign: “No Cages” • AD (Liberation)
  19. 19.  Social Media Campaign: #StereoTypicalHarley AD
  20. 20.  Traditional styling e.g. features and design Building a positive image Organizing promotional events • Milwaukee.
  21. 21.  Extending the brand e.g. merchandise Extending the enterprise Adding value Training new riders
  22. 22.  Harley-Davidson is a relevant brand because it represents America. The brand relies on two factors: • Relevance to Americans • Global Admiration of American Culture
  23. 23.  Nearly 1 in 5 Americans will be an immigrant by 2050. Current ratio is 1 in 8. Americans of Hispanic origin will be 1/3 of the population by 2050.
  24. 24.  It’s not quite new… apparently the Harlista group is 50 years old … but it has been growing quickly in recent years.
  25. 25.  Alejandra is a Harley-Davidson fan …http://www.harley-davidson.com/en_US/Content/Pages/harlistas/harlista_stories.html?locale=en_US&bmLocale=en_US#
  26. 26.  In 2006, Harley-Davidson opened its first full service store in Beijing. Today, it has 8 different locations across China. Typical customers in China are between the ages of 35 and 55 years Use in China is for leisure riding only
  27. 27.  Inrecent years, Harley-Davidson has increased sales % Internationally.
  28. 28.  Inrecent years, Harley-Davidson has increased sales % Internationally. Sales have declined 5.2% in 2012 in the US Latin America sales (Brazil and Mexico) have increased by 32% Sales in Asia are up 9.8% Overall International Sales 7.6%
  29. 29.  Harley-Davidson’s core strength is their ability to maintain their image, through any means and methods possible. Their success is not contingent on bike quality. The day they stop being American or America stops being admirable … they won’t be around.

×