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Magnetic Media
Harley-Davidson Media Plan
December 12, 2013
Executive Summary
 The objective of this 2014 year long branding campaign is to
increase awareness of Harley Davidson Brand motorcycles
within the younger user population of males 18-34 by 15%.
Our target market size is 384,520. Our Hierarchy objective
includes increasing positive attitudes of Harley Davidson
motorcycles among the young males. Our action objective is
to increase the amount of website visits by 15%.
Executive Summary cont’d
 For young males, Harley Davidson is the stylish yet timeless choice for
motorcycles because of the sleek unique style and trusted reputation. Our
media objectives will use pulsing R/F strategy to reflect seasonality of
motorcycle sales, advertising only seven months (March-September) out
of the year through Internet, Cable TV, Magazine, and Outdoor
advertisements. Our highest reach will be during the months of May, July
and August due to seasonal demands and reflection of the beginning and
ending of the academic school year. Mid-level reach is in the months of
March, April, and June for these reflect prime motorcycling weather. Our
lowest level of reach is in the month of September as free time and
summer adventures wind down.
Executive Summary cont’d
 With a budget of $10,000,000, 40% of our budget allocated to Cable TV ads,
with :30 sec units on ESPN, Discovery Channel and the History Channel
during evening and weekend primetime. These vehicles were chosen
because of the higher viewing rates among the target market. Thus, 20% of
our budget will go into Banner Ads on Google Maps and Yahoo! Mail. These
websites were chosen based on number of visits to these sites by
motorcyclists. These sites are used as reference for weather and updated
news. We will spend 25% of the budget on outdoor media specifically in
major cities in the southern region. The remaining 15% of the budget will go
into full page spreads in Car and Driver Magazine and Parade Carriers
Newspaper. These publications have the most readers among motorcyclists.
 Also, we suggest implementing social media tactics including viral hashtags
and word of mouth through Twitter and Facebook to increase reach in
prospects.
History of Harley-Davidson
 1903, Arthur & Walter Davidson and Bill Harley built the very
first HD motorcycle
 They used a 3 horsepower engine and designed the unique loop
frame, signature to Harley-Davidson
 1907, HD had 150 motorcycles built
 1909, HD Motor Company introduced first V-twin powered
motorcycle
 Later in 1909, HD employed 18 people and expanded to a
2,380 square foot building
 1920, HD became the largest motorcycle manufacturer in the
world, with dealers in 67 countries.
 Also in 1920, only 13 after incorporation, HD basked in an
incredible 5000 percent increase of sales.
History of Motorcycles
1885: First motorcycle invented by Gottleib
Daimler
1903: Harley-Davidson Motor Company is
founded
1948: Honda Motor Co., Ltd. is founded
1955: Yamaha Motor Co., Ltd. is founded
Recent Sales Figures (in percent)
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
Harley Davidson Honda Yamaha
US
worldwide
Motorcycle Market Share 2012 in
the US
Brand Sales Analysis
 HD’s net income for the 3rd quarter of 2013 was $162.7 million - $0.73
per diluted share, in comparison to $134.0 million - $0.59 per diluted
share in the 3rd quarter of 2012
 Operating income from motorcycles increased $30.7 million (21.2%)
from last years 3rd quarter analysis due to a stronger product mix,
model year price increases, a 2.3% increase in motorcycle shipments
and lower reconstructing costs
 In the 3rd quarter of 2013, HD began shipping 2014 motorcycles
including Project Rushmore – it’s new line of touring motorcycles
 Operating income from 2013 increased to $76.1 million from $72.4
million in 2012
Quarterly Sales
162.7
134
0 20 40 60 80 100 120 140 160 180
2013
2012
Third Quarter Sales for 2012 & 2013
Sales in millions ($)
Category Sales Analysis
Competitive Media Spending Analysis – Ad$pender
Competitive)Brands Mags Sun(Mags NWSP Outdoor NetTV
Harley'Davidson 483,600 2,427,800
Honda 925,600 123,200
Kawasaki 34,000 3,600 144,600
Yamaha 106,800 184,800
Totals 1,550,000 3,600 2,880,400
Brand)Media)Mix
Harley'Davidson 8.68% 43.58%
Honda 88.25% 11.75%
Kawasaki 1.98% 0.21% 8.43%
Yamaha 22.56% 39.03%
Category)Media)Mix
Harley'Davidson 31.20% 84.29%
Honda 59.71% 4.28%
Kawasaki 2.19% 100% 5.02%
Yamaha 6.89% 6.42%
Totals 100% 100% 100%
Share)of)Voice
Harley'Davidson
Honda
Kawasaki
Yamaha
Total
Advertising)Index Share(of(Market Share(of(Voice Ad(Effectiveness
Harley'Davidson 0.2765 0.6324 44
Honda 0.1106 0.1191 93
Kawasaki 0.1185 0.1948 61
Yamaha 0.1185 0.537 22
General Product
 Heavyweight and highway cruising
 Dates back to 1903
 One out of two motorcycle manufacturers to survive the
Great Depression
 5 different models
 Touring
 Softtail
 Dyna
 Sportster
 Vrod
Touring
Softail
Dyna
Sportster
Vrod
Places of Distribution
 Sold at dealerships worldwide
 Dealerships located in heavily populated areas of potential
customers
 Dealerships originated in Milwaukee, Wisconsin
 They provide accessories, merchandise, and knowledge of
motorcycles
 The first international dealership was founded in Brazil in
1998
 Motives:
 Take advantage of free economic zone
 Market to southern hemisphere
Original HD Dealership 1903
Original V-twin powered
motorcycle
Promotional tools
 Harley Owners Group “HOG” - Loyal Harley-Davidson owners
that achieve special offers as apart of their membership
 Members spend 30% more time with of Harley riders
 Main theme of advertising: female images
 93% of HD riders are male
 Interactive and informative websites – dealer and product
oriented
 American made – buyers find comfort in trading domestically
and take pride in supporting American merchandise
Marissa Miller modeling a V Rod
The HOG life
Price
Ranges from $8,000 to $40,000 with 30
different models in 6 product categories
New campaign targeting to young adults
and other market minorities – known as the
“outreach market”
Harley introduced a new motorcycle for
the outreach market called the Iron 883
Sportster and priced it at $7,999 for target
appeal
Problems
Harley has a very specific market, pertaining
to mostly white men above age 40 in the
middle and above financial class.
HD only markets to about 40% of motorcycle
owners in the United States.
The HOG theme overshadows the overall
brand of what HD has to offer other
demographics.
Opportunities
The opportunity to create a new ad campaign
marketing to males and females in a younger
age group and from a different background
than the normal.
To market to people in different financial
situations than the usual by making their
motorcycles seem more beneficial fuel wise.
Make HD seem more like a road bike for day-
to-day use instead of open road cruising.
Marketing Objectives
(Provided by the client)
The objective of this 2014 year long
branding campaign is to increase
sales volume of the Harley-Davidson
brand motorcycles within the younger
user population by 15%.
Target MarketTarget Market Analysis
Variables Down%
Age 18-34 Adult Males 29.9 Down Percentage
Location: South 33.8 Down Percentage
Home Owners 78.4 Down Percentage
White 83.7 Down Percentage
Now Married 56.3 Down Percentage
Total Base of adult male motorcycle
owners in US
9,613,000
Target Market Calculations .299 x .139 x .784 x .837 x .563=.04
.04 x 9,613,000=384,520
Target Market Size 384,520 people in the target market
Name of Target Market Young Southern Males
Target Market Statement The target market is made up of white
newly married men 18-34. These men
reside in the southern region of the US
and own their own homes. The size of
this target market is 384,520.
Brad is a typical twenty
six year old guy from the
south who knows how to
hold his own. He wears a
hard hat and steel –toed
boots to his job site and
after the day is done
swings by the flower shop
to buy a single red rose
for his newly wedded wife
at home. There’s no “bun
in the oven” so he’s not
looking for a minivan just
yet. He wants a vehicle
with sleek lines and sex
appeal that only he and
his wife can travel on from
coast to coast with
nothing but their
backpacks on.
Qualitative Psychographic
Profile of Target Market
Marketing Objective
The objective of this 2014 year long
branding campaign is to increase
sales volume of Harley-Davidson
brand motorcycles within the younger
user population by 15%.
Marketing Objectives
Hierarchy Objective: Our Hierarchy
objective includes increasing positive
attitudes of Harley Davidson motorcycles
among the young males.
Action Objective: To increase the
amount of website views by 15% by the
end of the year 2014.
Positioning Statement
For young males, Harley Davidson is
the stylish yet timeless choice for
motorcycles because of the sleek
unique style and trusted reputation.
Media Objectives
Period Reach Frequency GRPs % of entire
GRPs
% of entire
GRPs
January 0 0 0 0 0
February 0 0 0 0 0
March 75 2 150 11.3 1,130,000.00
April 75 2 150 11.3 1,130,000.00
May 80 3 240 18.1 1,810,000.00
June 75 2 150 11.3 1,130,000.00
July 80 3 240 18.1 1,810,000.00
August 85 3 255 19.2 1,920,000.00
September 70 2 140 10.6 1,060,000.00
October 0 0 0 0 0
November 0 0 0 0 0
December 0 0 0 0 0
Totals 1325 9,990,000.00
To reflect the current seasonality of motorcycle sales, we will implement a pulsing
strategy and advertise only seven months (March-September) out of the year.
The selected months were chosen due to seasonal demands in the geographic area.
To increase awareness in the younger demographic we propose reach and
frequency is highest in May, July and August. These months are prime outdoor times
for the southern region.
Media Strategy
Medium Vehicle Index
Number
Column B Units Dayparts
Cable TV History
Channel
112 49.0 :30 spot PM Primetime
Discovery
Channel
110 41.0 :30 spot PM
Primetime/Weekend
Daytime
ESPN 89 38.4 :30 spot PM
Primetime/Weekend
Sports
Internet Google Maps 110 24.1 Banner
Ads
N/A
Yahoo! Mail 108 29.1 Banner
Ads
N/A
Outdoor V
(light)
Billboard 78 15.7 1 per
county
N/A
Magazines Car and
Driver
137 12 Full page
spread
N/A
Parade
Carriers
Newspaper
102 25.0 Full Page
spread
N/A
Media Tactics
Medium Percentage Weight Dollar Amount
Cable TV 40% $4,000,000
Internet-Social Media 20% $2,000,000
Outdoor 25% $2,500,000
Magazines 15% $1,500,000
Total $10,000,000
Flow Chart of Media Mix
Jan Feb March April May June July Aug Sep Oct Nov Dec GRPs
Cable TV
Dicovery
ESPN
History Channel
Magazines
Car and Driver
Parade Carriers
Internet
Yahoo! Mail
Google Maps
Outdoor 0 0 0 0 0
Monthly R/F/GRP 0 0 75/2/150 75/2/150 80/3/240 75/2/150 80/3/240 85/3/255 70/2/140 0 0 0 Total GRPs 1325
% of GRP/Budget 0 0 11.3% 11.3% 18.1% 11.3% 18.1% 19.2% 10.6% 0 0 0
Budget 0 0 1,130,000.00 1,130,000.00 1,810,000.00 1,130,000.00 1,180,000.00 1,920,000.00 1,060,000.00 0 0 0 $10,000,000

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Harley-Davidson Media Plan

  • 1. Magnetic Media Harley-Davidson Media Plan December 12, 2013
  • 2. Executive Summary  The objective of this 2014 year long branding campaign is to increase awareness of Harley Davidson Brand motorcycles within the younger user population of males 18-34 by 15%. Our target market size is 384,520. Our Hierarchy objective includes increasing positive attitudes of Harley Davidson motorcycles among the young males. Our action objective is to increase the amount of website visits by 15%.
  • 3. Executive Summary cont’d  For young males, Harley Davidson is the stylish yet timeless choice for motorcycles because of the sleek unique style and trusted reputation. Our media objectives will use pulsing R/F strategy to reflect seasonality of motorcycle sales, advertising only seven months (March-September) out of the year through Internet, Cable TV, Magazine, and Outdoor advertisements. Our highest reach will be during the months of May, July and August due to seasonal demands and reflection of the beginning and ending of the academic school year. Mid-level reach is in the months of March, April, and June for these reflect prime motorcycling weather. Our lowest level of reach is in the month of September as free time and summer adventures wind down.
  • 4. Executive Summary cont’d  With a budget of $10,000,000, 40% of our budget allocated to Cable TV ads, with :30 sec units on ESPN, Discovery Channel and the History Channel during evening and weekend primetime. These vehicles were chosen because of the higher viewing rates among the target market. Thus, 20% of our budget will go into Banner Ads on Google Maps and Yahoo! Mail. These websites were chosen based on number of visits to these sites by motorcyclists. These sites are used as reference for weather and updated news. We will spend 25% of the budget on outdoor media specifically in major cities in the southern region. The remaining 15% of the budget will go into full page spreads in Car and Driver Magazine and Parade Carriers Newspaper. These publications have the most readers among motorcyclists.  Also, we suggest implementing social media tactics including viral hashtags and word of mouth through Twitter and Facebook to increase reach in prospects.
  • 5. History of Harley-Davidson  1903, Arthur & Walter Davidson and Bill Harley built the very first HD motorcycle  They used a 3 horsepower engine and designed the unique loop frame, signature to Harley-Davidson  1907, HD had 150 motorcycles built  1909, HD Motor Company introduced first V-twin powered motorcycle  Later in 1909, HD employed 18 people and expanded to a 2,380 square foot building  1920, HD became the largest motorcycle manufacturer in the world, with dealers in 67 countries.  Also in 1920, only 13 after incorporation, HD basked in an incredible 5000 percent increase of sales.
  • 6. History of Motorcycles 1885: First motorcycle invented by Gottleib Daimler 1903: Harley-Davidson Motor Company is founded 1948: Honda Motor Co., Ltd. is founded 1955: Yamaha Motor Co., Ltd. is founded
  • 7. Recent Sales Figures (in percent) -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 Harley Davidson Honda Yamaha US worldwide
  • 8. Motorcycle Market Share 2012 in the US
  • 9. Brand Sales Analysis  HD’s net income for the 3rd quarter of 2013 was $162.7 million - $0.73 per diluted share, in comparison to $134.0 million - $0.59 per diluted share in the 3rd quarter of 2012  Operating income from motorcycles increased $30.7 million (21.2%) from last years 3rd quarter analysis due to a stronger product mix, model year price increases, a 2.3% increase in motorcycle shipments and lower reconstructing costs  In the 3rd quarter of 2013, HD began shipping 2014 motorcycles including Project Rushmore – it’s new line of touring motorcycles  Operating income from 2013 increased to $76.1 million from $72.4 million in 2012
  • 10. Quarterly Sales 162.7 134 0 20 40 60 80 100 120 140 160 180 2013 2012 Third Quarter Sales for 2012 & 2013 Sales in millions ($)
  • 12. Competitive Media Spending Analysis – Ad$pender Competitive)Brands Mags Sun(Mags NWSP Outdoor NetTV Harley'Davidson 483,600 2,427,800 Honda 925,600 123,200 Kawasaki 34,000 3,600 144,600 Yamaha 106,800 184,800 Totals 1,550,000 3,600 2,880,400 Brand)Media)Mix Harley'Davidson 8.68% 43.58% Honda 88.25% 11.75% Kawasaki 1.98% 0.21% 8.43% Yamaha 22.56% 39.03% Category)Media)Mix Harley'Davidson 31.20% 84.29% Honda 59.71% 4.28% Kawasaki 2.19% 100% 5.02% Yamaha 6.89% 6.42% Totals 100% 100% 100% Share)of)Voice Harley'Davidson Honda Kawasaki Yamaha Total Advertising)Index Share(of(Market Share(of(Voice Ad(Effectiveness Harley'Davidson 0.2765 0.6324 44 Honda 0.1106 0.1191 93 Kawasaki 0.1185 0.1948 61 Yamaha 0.1185 0.537 22
  • 13. General Product  Heavyweight and highway cruising  Dates back to 1903  One out of two motorcycle manufacturers to survive the Great Depression  5 different models  Touring  Softtail  Dyna  Sportster  Vrod
  • 16. Dyna
  • 18. Vrod
  • 19. Places of Distribution  Sold at dealerships worldwide  Dealerships located in heavily populated areas of potential customers  Dealerships originated in Milwaukee, Wisconsin  They provide accessories, merchandise, and knowledge of motorcycles  The first international dealership was founded in Brazil in 1998  Motives:  Take advantage of free economic zone  Market to southern hemisphere
  • 22. Promotional tools  Harley Owners Group “HOG” - Loyal Harley-Davidson owners that achieve special offers as apart of their membership  Members spend 30% more time with of Harley riders  Main theme of advertising: female images  93% of HD riders are male  Interactive and informative websites – dealer and product oriented  American made – buyers find comfort in trading domestically and take pride in supporting American merchandise
  • 25. Price Ranges from $8,000 to $40,000 with 30 different models in 6 product categories New campaign targeting to young adults and other market minorities – known as the “outreach market” Harley introduced a new motorcycle for the outreach market called the Iron 883 Sportster and priced it at $7,999 for target appeal
  • 26. Problems Harley has a very specific market, pertaining to mostly white men above age 40 in the middle and above financial class. HD only markets to about 40% of motorcycle owners in the United States. The HOG theme overshadows the overall brand of what HD has to offer other demographics.
  • 27. Opportunities The opportunity to create a new ad campaign marketing to males and females in a younger age group and from a different background than the normal. To market to people in different financial situations than the usual by making their motorcycles seem more beneficial fuel wise. Make HD seem more like a road bike for day- to-day use instead of open road cruising.
  • 28. Marketing Objectives (Provided by the client) The objective of this 2014 year long branding campaign is to increase sales volume of the Harley-Davidson brand motorcycles within the younger user population by 15%.
  • 29. Target MarketTarget Market Analysis Variables Down% Age 18-34 Adult Males 29.9 Down Percentage Location: South 33.8 Down Percentage Home Owners 78.4 Down Percentage White 83.7 Down Percentage Now Married 56.3 Down Percentage Total Base of adult male motorcycle owners in US 9,613,000 Target Market Calculations .299 x .139 x .784 x .837 x .563=.04 .04 x 9,613,000=384,520 Target Market Size 384,520 people in the target market Name of Target Market Young Southern Males Target Market Statement The target market is made up of white newly married men 18-34. These men reside in the southern region of the US and own their own homes. The size of this target market is 384,520.
  • 30. Brad is a typical twenty six year old guy from the south who knows how to hold his own. He wears a hard hat and steel –toed boots to his job site and after the day is done swings by the flower shop to buy a single red rose for his newly wedded wife at home. There’s no “bun in the oven” so he’s not looking for a minivan just yet. He wants a vehicle with sleek lines and sex appeal that only he and his wife can travel on from coast to coast with nothing but their backpacks on. Qualitative Psychographic Profile of Target Market
  • 31. Marketing Objective The objective of this 2014 year long branding campaign is to increase sales volume of Harley-Davidson brand motorcycles within the younger user population by 15%.
  • 32. Marketing Objectives Hierarchy Objective: Our Hierarchy objective includes increasing positive attitudes of Harley Davidson motorcycles among the young males. Action Objective: To increase the amount of website views by 15% by the end of the year 2014.
  • 33. Positioning Statement For young males, Harley Davidson is the stylish yet timeless choice for motorcycles because of the sleek unique style and trusted reputation.
  • 34. Media Objectives Period Reach Frequency GRPs % of entire GRPs % of entire GRPs January 0 0 0 0 0 February 0 0 0 0 0 March 75 2 150 11.3 1,130,000.00 April 75 2 150 11.3 1,130,000.00 May 80 3 240 18.1 1,810,000.00 June 75 2 150 11.3 1,130,000.00 July 80 3 240 18.1 1,810,000.00 August 85 3 255 19.2 1,920,000.00 September 70 2 140 10.6 1,060,000.00 October 0 0 0 0 0 November 0 0 0 0 0 December 0 0 0 0 0 Totals 1325 9,990,000.00 To reflect the current seasonality of motorcycle sales, we will implement a pulsing strategy and advertise only seven months (March-September) out of the year. The selected months were chosen due to seasonal demands in the geographic area. To increase awareness in the younger demographic we propose reach and frequency is highest in May, July and August. These months are prime outdoor times for the southern region.
  • 35. Media Strategy Medium Vehicle Index Number Column B Units Dayparts Cable TV History Channel 112 49.0 :30 spot PM Primetime Discovery Channel 110 41.0 :30 spot PM Primetime/Weekend Daytime ESPN 89 38.4 :30 spot PM Primetime/Weekend Sports Internet Google Maps 110 24.1 Banner Ads N/A Yahoo! Mail 108 29.1 Banner Ads N/A Outdoor V (light) Billboard 78 15.7 1 per county N/A Magazines Car and Driver 137 12 Full page spread N/A Parade Carriers Newspaper 102 25.0 Full Page spread N/A
  • 36. Media Tactics Medium Percentage Weight Dollar Amount Cable TV 40% $4,000,000 Internet-Social Media 20% $2,000,000 Outdoor 25% $2,500,000 Magazines 15% $1,500,000 Total $10,000,000
  • 37. Flow Chart of Media Mix Jan Feb March April May June July Aug Sep Oct Nov Dec GRPs Cable TV Dicovery ESPN History Channel Magazines Car and Driver Parade Carriers Internet Yahoo! Mail Google Maps Outdoor 0 0 0 0 0 Monthly R/F/GRP 0 0 75/2/150 75/2/150 80/3/240 75/2/150 80/3/240 85/3/255 70/2/140 0 0 0 Total GRPs 1325 % of GRP/Budget 0 0 11.3% 11.3% 18.1% 11.3% 18.1% 19.2% 10.6% 0 0 0 Budget 0 0 1,130,000.00 1,130,000.00 1,810,000.00 1,130,000.00 1,180,000.00 1,920,000.00 1,060,000.00 0 0 0 $10,000,000