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Harley Davidson Project

Consumer Behavior
by

Jacqueline Burks

on 31 January 2014

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Transcript of Harley Davidson Project

Outreach segment:
- young adults aged 18-24
-women
-Hispanics
-African Americans

A Look in the Rear View Mirror: The Harley-Davidson Story
Jacqueline Burks, Arianna Adams
Bianca Sacco, Carlos Heredia
1935- Joe Petraili begins 5 year winning steak of AMA Grand National Champ
1931- all competition has died except Indian
1930s- Graphic design of art- deco eagle is now painted on all Harley’s in response to great depression
1940s- almost all production is in favor of the military for WWII
1943- Army-Navy E award for wartime production- HD goes on to win 4
1953: The movie The Wild Ones was released which features Marlon Brando riding a Harley

1950- Elvis Presley on the Cover of the Enthusiast
1969- ANF buys Harley-Davidson
1970s- FX super Glide, response to customizing phrase
1980s- buyback from ANF; “the Eagle Soars Alone” becomes a rallying cry
1914 Motor Company formally enters motorcycle racing this year
1918- Over half of all motorcycles produced are sold to US Military in WWI
U.S. Segments
Traditional segment: Caucasian men aged from 35-74
Outreach Customers
International Segments
-there are more international dealers than in the U.S.
Market Segments
1920- Racer Ray Weishaar uses Pig Mascot; Hog association begins when the hog is carried on a victory lap after each race won
in 4 years, 99 new dealers opened internationally
including Brazil and India
-grew in sales twice as much as any other customer in 2012
-expected to grow to 200 million people by 2050
Harley Davidson Cafe
Promotional Tools
primary tool: H.O.G (Harley owners group) activities
-serves as customer relations and demonstration of the product

-used the new restaurants as a marketing strategy
-opening in and around dealerships to help advertise the product
Now, Harley wants to focus on psychographics:ideals and values instead
1990s- new Product Development Center in Milwaukee
1993- 90th anniversary
2000s- Open road tour in honor of 100th anniversary
2010-Sportster Forty- Eight introduced to the market

There were many economic pressures for Harley, especially against the Indian, which was the only other US motorcycle manufacturer
Were able to continue because: 1) experimented with a new design, their now-famous V-twin style and 2) military production
Started in 1916 when the Harley Davidson Quatermasters School was established
Facility in Milwaukee to train mechanics in the military
Known for decades afterward as the Service School
Still exists today as Harley Davidson University, where motorcycle mechanics from Harley dealerships around the country are trained on motorcycle service techniques
When you think of Harley-Davidson 'Bikers' this might not be what first comes to mind
William S. Harley
William A. Davidson
1917-1918: 1/2 of Harley production during WW1 went to the military
First time a motorcycle had been adopted for combat service
15,000 machines provided
In WWII, Harley Davidson bikes were also supplied to the United States and their allies
Opportunity to expand- produced new model such as the WLA, a Navy version of the Model U
1942-1945: won the Army/Navy ‘E’ Award for Excellence in Wartime Production
Honor for helping the war effort
Tying Harley Davidson to the military boosted their All-American, patriotic image
Values of loyalty, strength, and tradition
Even today, Harley employees are in service in all branches of the military in Afghanistan, Iraq, and more
Shaping the Brand Image:
Military Involvement
This became the inspiration later on when their image was attacked by Japanese competitors
Adapted their image to stress the importance of an all-American background
Knew they could beat compete by marketing their brand as a lifestyle
Connected it to this team of farm boys known as the “hog boys”
In 1983, the Motor company formed a club for owners of their product
Turned HOG into an acronym for Harley Owners Group

Largest factory sponsored motorcycle club in the world
Grassroots method to reconnect Harley’s brand and lifestyle to their most faithful customers
Form of guerilla marketing
Membership was generated from inexpensive promotions at dealerships and word of mouth
Informal way for enthusiasts to meet up, swap stories, and schedule rides with each other
Required every HOG to have a dealership sponsor
Resulted in a tighter relationship between Harley dealers and the customers
Overall, focused less on the specifics and tackled the concept of ownership
First major struggle was when they initially started out, but luckily due to war production were able to stay afloat
In 1981, Harley Davidson fell onto hard times again
Japanese competitors such as Suzuki and Yamaha
Japan had always had an edge on the global market
The Japanese were beating out Harley because they had lower prices, better quality, and brought attention to Harley’s “thug” image
In 1985, their CEO convinced lenders to accept a restructuring plan
Competed with quality by copying Japanese production techniques
Released new “Evolution” engine that put an end to oil leaks and other quality issues
Made machines easy to customize and re-tool
Distanced themselves from Japanese by creating the opportunity to be an individual
1901- William S Harley at age 21 completes a blueprint drawing of an engine designed to fit into a bicycle
1907- William A Davidson quits his job and joins the motor company
1910- Bar and shield logo first used
Shaping the Image:
The Harley Owners Group
Shaping the Image: Competing with Foreign Markets
Harley Brand Identity
Branding: HOG
"The Wild Ones" impact on Brand
From a bike owner to a Family member

“The Harley Owners Group is much more than just a motorcycle org. Its 1M people around the world united by a common passion: making the harley davidson dream a way of life”
Outlaw counterculture
American Patriotism, machismo, personal freedom
Harley Brand Research
- away from traditional marketing
- Budget spending- 15% in media
- Focused on experiential marketing
- Stick to core ideals

→ Rebellious, individuality,
wild & adventurous

Relevant to other segments
→ Emotional Balance
riding experience v. work

Bikes = more than physical vehicle
Current Marketing
- How do we get them
to tell their stories?
- Crowdsourced advertising
Current Marketing
References
http://www.harley-davidson.com/en_US/Content/Pages/HD_Museum/explore/hd-timeline.html
http://www.mindtalk.com/ch/twowheelsfreak#!/post/4ec335cbf7b7304cca005264
http://www.hdforums.com/articles/history-of-the-harley-davidson-logo/
http://www.brandstories.net/2012/06/08/the-harley-davidson-story-how-brand-achieves-cult-status/
http://storify.com/OmarKattan/the-harley-davidson-story
http://www.bestadsontv.com/client/598/Harley-Davidson
http://www.forbes.com/sites/jonathansalembaskin/2013/07/12/harley-davidson-will-be-a-case-history-in-social-branding/
http://www.brandstories.net/2012/06/08/the-harley-davidson-story-how-brand-achieves-cult-status/
http://storify.com/OmarKattan/the-harley-davidson-story
-http://blog.eloqua.com/lessons-from-harley-davidson/
-http://books.google.com/books?id=rLt48XwnW1cC&pg=PA239&lpg=PA239&dq=how+does+harley+davidson+communicate+its+brand&source=bl&ots=QFKvmp0fb6&sig=y3Ht9Jir19C-zHDAbrDbnC07owY&hl=en&sa=X&ei=pcOoUqm4H4HkoASWioFI&ved=0CEcQ6AEwAw#v=onepage&q&f=false pg 238
-http://www.westminstercollege.edu/review/index.cfm?parent=1607&detail=1617&content=1621
-http://straydogscreative.com/harley-davidson-knows-branding/
#StereotypicalHarley
Questions or Comments?
Full transcript