Harley Davidson's marketing plan aims to increase awareness, sales, and locations. It seeks to attract younger riders by targeting two new demographics: Young Digerati and Young Influentials aged 25-44. The plan proposes a marketing mix of television commercials, billboards, online promotion, and expanding flagship stores to Wisconsin, South Dakota, and North Dakota. It acknowledges challenges in overcoming Harley's perception as only for middle-aged riders and implementing an increased budget and staff for new social media strategies. The plan forecasts sales increases through better engaging new audiences while maintaining current customers.
3. Create & Increase Awareness Age of Harley Davidson motorcycle riders has increased Young males and females don’t have interest in the brand Lack of female riders
4. Increase Sales Increase company sales by 10 percent Younger Target audience Increase customer base
5. Expand Sales Locations Harley owns half the U.S Market share, 1/3 of the global market Becoming ideal – National Export Initiative Other companies are expanding globally – noticing positive results Expanding into Brazil Reduces taxes, makes motorcycles affordable to a larger target audience
6. Differentiation 33% of owners previous owned competitor motorcycle Not about the product – about the brand “There’s not a motorcycle riding experience like a Harley Davidson’s” Competitors: Yamaha, Suzuki, and Honda More interested in price and sales Create commercial and print ads with younger demographic
7. Positioning Already brand trust from customers Position so that Harley attains younger demographics interest at earlier ages Confidence in market is directly proportional to customer purchases – need young digerati to have confidence in market
8. Current Demographics Male (88.5%) Big Fish, Small Pond Middle Age 45-50 Median Income $80,000-$90,000 2007 Purchases 52% Previously Owned a Harley motorcycle 33% Owned a competitive motorcycle 15% First motorcycle purchased Median Age Median Income Statistics based on years 2004-2008 from harleydavison.com
9. Marketing Strategy Target Market Young Digerati Young Influentials Marketing Mix 4 P’s Product: Harley Davidson Motorcycles Price: $8,000 - $40,000 Promotion: TV commercials, billboards, online, etc. Place: Wisconsin, South Dakota, North Dakota
10. Target Market Young Digerati Wealthy, Younger Family Mix Age25-44 Ethnically Diverse Median Income $88,728 2009 – 1.21% of US Households Young Influentials Midscale, Younger w/o Kids Age <35 Ethnically Diverse Median Income $50,454 2009 -1.46% of US Households
11. Google Insights for Search Geographic areas & volume of search From 2004-2010, repeating rate Wisconsin- search volume index of 100 South Dakota – 96 North Dakota - 86
12. PLACE Harley should be located in bustling cities with high market exposure. Wisconsin, South Dakota, and North Dakota are the states with the most highest market exposure. Face- to –Face or Direct sales are crucial to Harley’s sales.
21. PRICE Price Ranges from about $8,000 to $40,000 Being a Specialty Product, the price must remain somewhat high to maintain the value and prestige of the brand. Harley offers financing for up to 60 months!!
22. Implementation & Control Special Implementation Problems to Overcome Control Budget & Sales Forecast Timing of Implementation activities Contingency Sales
23. Special Implementation Problems to Overcome Necessary expenditures to carry out the new strategy: TV ad: Priced at an estimate $350000 to produce & $100000 to air Use the current marketing staff, but increase their role in social media to keep contact with customers Create events that are located in a more diverse, hip area
24. Control Increase sales Awareness Numberof customers of various target audiences Results will be monitored quarterly Incurring changes in segmentation and imaging must not conflict with the needs & wants of the current clientele Obligations to watch & maintain: Blogs Events Interaction between the customer and sales rep Clientele Sites Relationship with investors and stockholders
25. Budget Estimates & Forecast Marketing tactics, yet to be set at a numerical value Customer satisfaction follow-ups Design services for various promotional materials Continuous website design Participation in community events TV ads Regulation customer first training http://money.cnn.com/quote/forecast/forecast.html?symb=HOG
26. Timing Currentlyranked in the Sales Decline stage, but with the new plan rolling out soon, developing changes will slowly take its place and keep Harley in the competitive market