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


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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
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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 …
  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.