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BecomeAHarleyHero

ThanandKachentawa
MeiTsoi
KevinKrilich
EileenEddy

COM322
12/12/2013
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1.ExecutiveSummary

HarleyDavidsonisawellknownAmericanmotorcyclemanufacturerwhichwasfoundedin

Milwaukee,Wisconsinin1903byWilliamS.HarleyandArthurDavidson.Sincetheestablishmentof
Harleyin1903,thetargetaudiencehasalwaysbeenmiddletoupperclassmales40yearsorolderwith
higherdisposableincome.Inthelast5to10years,Harleyhasseenadeclineinsalesfromtheircurrent
targetmarket,thebabyboomers.Peoplethatfallintothecategoryofbabyboomersareforlackof
bettertermsaregettingolderandbecauseofthis,theyhavedecliningdesiretoride(andtherefore
purchase)motorcycles.Thecompanyhasdecidedtotakeanewapproachandrebrandthemselvestobe
moredesirabletoayoungergeneration.Theprimarytargetforthiscampaignisyoungmenages
1835.Targetingthisgroupwillrequireasleeker,sexierlookforHarleyDavidsonmotorcycles,which
isdetailedinthemediaplanbelow.

Toattractthenewcustomerbase,awidevarietyofmediabuyspairedwithacampaign

centeredoncontinuitywillberequired.Thenewtargetwillneedtoseethecampaignatleastthree
timesbeforetheyaresold,duetothehighpriceandinvolvementintheprocessofpurchasinga
motorcycle.Theymustbeabletorelatetothebrand,thecampaign,andultimatelythebikebeforethey
willmakethepurchase.Eachmediumandvehicleforthiscampaignwaschosenspecificallytomeet
theneedsofthetargetaudience.Themediumschosenwereprint,directmail,television,radio,social
media,online,eventmarketing,andcrossmarketing.Eachoneofthesehasasimilarexecutionbased
onthecentralthemeofthecampaignandhasadirectconnectionwiththetargetaudience.

TheoverallgoalofthecampaignistoincreaseawarenessofHarleyDavidsontoayounger

generation.Theobjectiveofthiscampaignistoincreasesales4%quarteroverquarterforthenextyear
inthespecifiedagegroupof1835foratotalof16%overafullyear.Inordertodothis,thecampaign
willfocusonthelowerpricerangeofthenewbikes,aswellastheirexcellentquality.Amoredifficult

objectiveofthecampaignwillbetoupdatethebrandimagewithoutlosingthehistoryofHarleyand
whatthecompanystandsfor.Inordertosellbikestoayoungertarget,Harleymustrebrand
themselvestobemoreinlinewithitscompetitors.

2.SituationAnalysis

Sincetheirestablishmentintheearly20thcentury,HarleyDavidsonquicklygrewtothestatus

ofanAmericanicon.ButwiththegreyingofHarleystargetaudience,theylostalotofrevenuevery
quicklyinthelate2000s,andarestillworkingtobringitbackup(seefig.2.4inappendices).
Harleyrecentlyreleasedtheirsecondquarterearnings,whichincludessomevaluableinsight
intowheretheyaregainingandlosingrevenue.Despitetheirhardlossin2009,Harleysstockis
generallyincreasing.Theirrevenuefromsellingmotorcycleswentup4.2%.However,more
significantly,theirrevenuefromsellingMotorClothes(Harleysapparelline)increasedby8.7%inthe
lastquarter(HarleyDavidsonInvestorRelationswebsite).Thisshowspotentialinadvertisingtothe
youngergenerationwiththebikerimage.Ifthoseintheagerangeofourtargetaudiencedonotyet
havetheincometopurchaseamotorcycle,theymayhaveinterestinpurchasingaccessories.Thiswill
potentiallybringtheaccessoriesbuyerclosertothebrandandmayleadtobiggerpurchasesinthe
futurewhentheyareearningahigherincome.
InordertofullyunderstandHarleyDavidsonsgoalsandobjectives,theirsituationanalysishas
tofirstbetakenintoconsideration.Formanyyearsnow,Harleyhasbeensolelytargetingaffluent,
Caucasianmenover40.However,asthisdemographicages,Harleymusttargetayoungergeneration.
Thispresentsachallenge,becauseridersyoungerthan40generallydonthavethetime,interest,or
moneytobuyamotorcycle,particularlyaHarley,becausetheyareinahigherpricerangethanthe
competition.UnderstandingHarleysSWOTanalysiswillallowustosetattainablemediagoalsto
changethegeneralattitudeofthenewtargetaudience.

Strengths
HarleyDavidsonisastrongandwellknownbrandname.Theyareknownfortheirinnovation,
distinctiveroaringsound,andtoughimage.Inadditiontotheirinnovativestyleandcreationofbikes,
theyalsohaveastrongfinancialpositiononthemarket.Theycurrentlysitat19%ofthemotorcycle
market.Thatdoesntsoundlikealotonthesurface,butwhenyouconsideralloftheotherrevenue
cominginfromapparelandaccessories,theyownaveryhealthyportionofthemarket.Harleyhas
alwaysbeenknownformakingahighqualityproduct.Theymaybeexpensivebutyougetwhatyou
payfor,andinthiscaseyoupayapremiumbutgetthehighestqualityproductinthatcategory.Harley
hasalsoembracedtheeventofsocialmediaandthenecessarydigitalpresencethatallbrandsmusttake
inordertosucceed.Theycanusethesechannelsofcommunicationtotargetthespecificnichemarkets
inthetargetaudience.

Weaknesses
HarleyspasttargetaudienceofgenerationXers(thosebornpostWorldWarIIbetweenthe
yearsoftheearly1960sandearly1980s)havegivenHarleyanoldfashionedappeal.Thecurrent
appearanceoftheHarleybikeishistoricanddated,whichdoesntappealtoyoungergenerations.Sales
havedecreasedinthepast2yearsforHarleyby1530%inseveraldifferentagegroups.Competitors
suchasSuzukiandKawasakihold90%ofthemarketshareinyoungeragegroups.
Opportunities
HarleyDavidsonhasestablishedalegendarybrandimageovermanyyears,andhasmaintained
arecognizablepresenceintheindustry.Theycontinuetobeoneofthemostpopularmotorcycle

brandsinAmerica.Therearespecificdestinationsacrossthecountrythatfamiliesvisitinorderto
becomeapartoftheHarleytradition.TheyhavetheopportunitytouseHarleyshistoricpresenceand
wellknownbrandtofocusonanewtargetofyoungermenaged1835.

Threats
AlthoughHarleyisahouseholdname,thehighpricesanddateddesignsthreatenHarleys
future.Foreigncompetitorpricingismuchmorereasonabletothedesiredtargetofyoungermen,and
havesleeker,moremodernbikestochoosefrom.Inordertoovercomethesethreats,Harleymust
maintaintheiriconicbrandimage,andmakesuretheconsumerknowsthatwhentheypurchasea
Harley,theyarepurchasinganAmericanmadebike.

b.TargetAudienceAnalysis

HarleyDavidsonsoldtargetmarketisgrowingolder,andarelosingtheirabilitytojoyrideon

hogs.ForbesmagazinestatesthattheHarleyspricetagplacestheirtargetaudienceatalmost
exclusivelywhitemalesover40,agenerationthatistakinglessandlessjoyridesontheloudandproud
Americanicon.Thecurrentmedianhouseholdincomeforthecurrenttargetofmales3544is$78,000
peryear.Theyareeducatedprofessionalsbothwithandwithouttattoos,andtheyhavemanyfriends
thatalsodriveHarleys.ThemajorityoftheHarleyownersinthistargetarepartofanelitegroup
knownastheHOGS,orHarleyOwnersGroup.

c.Competitiveanalysisandexpenditure.
HarleyDavidsonspentaround$10.7millioninadvertisingaccordingtotheExcelsheetfrom
MediaFlightPlan.HarleystopspendingcompetitorswereHonda($4.1million),Yamaha($5.6

million),andKawasaki($1.9million).Thesefourbrandshaveatrendoffocusingalargerportionof
theirbudgetonconsumermagazinesthanothermedias.HarleyDavidsonspentabout$4million
focusingonmotorcycleclassesinconsumermagazines.Hondaspent$1.6milliononconsumer
magazines,butcoveredalargervarietyofbikebrands.Kawasakispent$1.4millionfocusingontwo
specificbrands,andYamahaspenttheleastat$700,000distributedbetweentwooftheirfourclasses.
HarleyDavidsonscabletelevisionexpenditureswere$2.7millionayear,withnetwork
televisionat$1.1millionperyear.CompetitionsuchasHonda(spending$2.1millionontelevision),
Kawasaki(spendingonly$27,000ontelevision),andYamaha(spending$3.7millionontelevision)are
alsofollowingatrendofhowHarleyDavidsondividestheirexpensesinadvertising.Hondaand
Yamahaspendmuchoftheirbudgetontelevision,butKawasakihastakenadifferentapproachand
spenttheirbudgetonmagazinesandtheInternet.

3.MediaObjectives
a.NewTargetAudience

Ourplanistofocusthecampaignonmalesage1835residinginthesoutheasternportionof

theUnitedStates(Louisiana,Mississippi,Alabama,Georgia,Florida,andtheCarolinas).Thisaudience
isaffluent,havinggrownupinahouseholdofmiddletoupperclassincome.Wearetargetingthose
wholiveinmetropolitanareas,thoughthatmightnotbewheretheygrewup.Theaudiencelikely
attendedoriscurrentlyattendingcollegeandeitherhasobtainedorwillobtainacareertomaintainhis
middletoupperclassstatus.Heiswillingtospendhisdisposableincomeonamotorcycleandlikely
hasneverhadonebefore.Heissocialbothinhispersonalandprofessionallifeandbuildsthese
networksviaFacebook,Twitter,Instagram,andPinterest.Heisanaviduserofsmartphones,and
utilizesalloftheappsassociatedwithsocialmedia.Thebestwaytocommunicatewithhimisvia
socialmediaortheInternet.Inadditionheenjoysmoviesmorespecificallysuperheromovies(Thor,
IronMan,CaptainAmerica,Avengers,etc.)Herelateshiseverydaymishapsandtrialstothose
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experiencedinthesemovies.

Oursecondarytargetaudienceisnewparents,maleandfemale,age2535.Thoughthis

audiencespendsalargeamountofincomeontheirchildren,theirdoubleincomeputsthemin
purchasingpowerofamotorcycle.Theseparentshavethesameinterestsandhabitsasourtarget
audience,withtheaddedpotentialofpassingontheHarleytraditiontotheirchildren,securingfuture
consumersforthebrand.Theirchildrenareespeciallypassionateaboutsuperheromovies,andwill
likelyreactstronglytoproductplacementandcelebrityendorsements.

b.Seasonality
ThenewcampaignforHarleyDavidsonwillrunoverthecourseofaoneyearperiod.The
campaignwillbegininJanuary,2014andrunthroughDecember.Wewillbeginthecampaignby
sendingoutaprintmailercontaininginterestingandrelevantinformationincoordinationwiththenew
targetaudienceaboutthenewthingshappeningwithHarleyintheupcomingyear.Throughoutthe
year,wewillhavedifferentfocusesbasedondifferentholidaysandseasons.Afulllistofexecutions
andtimesofyearisbelow.

c.Geography
Asweallknow,TheUnitedStatescanhaveverysevereweatherchangesatunpredictable
times.ThecampaignisfocusedinsouthernareasoftheUS,wheretheweatherisconsistentlywarmer,
butstilltakesintoaccounttherestoftheUnitedStates.Geographicfocusisrecommendedtobethe
southerncoast(Louisiana,Mississippi,Alabama,Georgia,Florida,andtheCarolinas).Thewarmer
weatherallowsforamaximumrangeoftimethatthetargetaudiencewillberidingtheirmotorcycles,
makingthepurchaseofthebikemorerealistic.Supplementalexecutionsshouldbeimplementedin
metropolitanareasoftherestoftheUnitedStates.

d.PlanPerformanceEffectiveReachandFrequency
Inordertoreachourintendedtargetwemustusetheoutlinedmediastrategicallyand
effectively.Asalreadystated,wewouldbeginwithaprintedmailertoalltargetaudiencemembers,as
wellasoutdooradvertising(billboard,publictransport,indoormalls,etc.)Thisawarenesscampaign
wouldrunthroughoutthemonthofJanuary.Februarybeginswithatelevisionadthatwillrunon
AMC,FX,andComedyCentral.ThisisthetimeperiodwherepopularshowslikeTheWalkingDead
andArcherarereturningwithnewseasonsfromtheirwinterbreak.Itisanidealopportunitytohitour
targetaudience.

Thecampaignwillbemoreeffectivewithafocusonfrequencyratherthanreach,because

motorcyclesareanexpensiveandemotionalcommitment,thereforeaveryhighinvolvementpurchase.
Itisimportantthatwehittheaudiencewithadvertisementsmorethanonceonmultiplemedia.
Executionswillfollowaspecificallythemedpatterntoensureaccuraterecallinourtargetaudience.

e.SchedulingObjectivesFlighting,Pulsing,orContinuity
Inordertoachievethedesiredresultsfortheobjectivesset,thiscampaignwillfocusheavilyon
continuity.ThecampaignwillbegininJanuaryformultiplereasons.Theaudienceismorelikelyto
spendtimewithindoormedia(television,ourwinterfocus)atthispoint,andJanuaryistheprecursorto
taxseason.Becauseouraudienceismoreaffluent,theycanexpectataxreturninthemonthofMarch.
BeginningadvertisingafewmonthsbeforehandwillensureHarleysplaceintheconsumersmind
whentheyreceivetheirtaxreturns.
Inthespring,thecampaignwillhittheaudiencewiththeideathatsummerisrightaroundthe
corner,andtheweatherisperfecttohitthedustyroadsinabrandnewHarley.Thecampaignwillbe
brokendownintofourpartsbasedonseasonality.Quarter1(January,February,andMarch)willsee
therolloutofbillboards,directmailpieces,socialmedia,andTVspots.Quarter2(April,May,and

June)willhithardwithprintads,TVspots,radioads,socialmedia,andeventmarketing.Quarter3
(July,August,andSeptember)willfocusoneventmarketingandseasonalexecutionswithHalloween,
print,TV,radio,andsocialmedia.Quarter4(October,November,andDecember)willpullbackmost
ofourexecutionsbesidesaholidaypromotionandsocialmedia.

4.TheMediaStrategy
a.Mediamixandvehicleselection
Wewilluseamixofdifferentadvertisingchannelstosendourmessagetothenewtarget
audience.Wewillusetraditionalmediasuchasprint,television,radio,andflyers.Inaddition,wewill
useothernewandhighlyeffectivemediasuchasOOH,guerilla,andaheavyfocusonsocialmedia.
Belowisthelistofdifferentmediavehicleswewishtopursueforthiscampaign.
1)DirectMailPiece:IncludeQRcode.
2)OOHandguerillabillboards.
3)TVSpot:TheEvolutionoftheHarley,orBackwardsEvolution.Startsoffwithgrandpa
onaclassicHarleybike,thenavisualizationofHarleygoesbackwards,finishingwithyoungmaleon
bikeinmodern,businesscasualdress.Heunbuttonshisdressshirttoshowunderneath,hiddentattoos
andleathervest.Television/radioadsandhashtag#HarleyHero(@HarleyDavidson).Tobeshownon
FX,AMC,andComedyCentral.
4)HarleyApp:Highlycustomizable,focusonapparel(Showusyourbestsuperheropose!)
5)FoursquareApp:Discountsorsomeincentiveforthosethatcheckin.(Checkintothe
Harleystore5times,becomeaHarleyHero!Get10%offofyournextapparelpurchase.)
6)YouTubevideos,23timesamonthallyearlong.Canfocusoneventrecaps,userfeedback
(PostyourvideoofhowyoulearnedtorideyourHarley!Myfirstroadtrip:thelittleguys/galsfirst
Harleyride.ThisisyourHarleyfamily.)

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7)EventMarketing:Heavyincorporationofsocialmediahype.

Includelearningcourses:howtoride,purchasingyourmotorcyclelicense.
SpringBreakRally:CometotheSpringBreakRallyinyourHarley,andwinapiece
ofHarleyapparel!

4thofJuly:AmericanbikefortheAmericanholiday.
8)CrossMarketing:Harleyandnewsuperheromoviereleases(Thor,Avengers,Hulk,Iron

Man,CaptainAmerica.)Includebig,impactful,guerillapointofsaleinstallationsintheatres,suchas
cardboardcutoutsofsuperheroesontheHarley(PoseandposttotheHarleyFacebookpageoron
Twitterwith#RideWithAHeroforachancetowinmovietickets).ThePOSwillbeupinadvanceof
themovie,sothatwinnershaveplentyoftimetoposttheirphotoandwin.
10)Printadinmensmagazines(GQ,MensJournal,andMensFitness)torunfrom
MarchMayandOctoberNovember.Backcoverorotherprominentpositioninmagazine.
11)Socialmediaexecutionthroughoutcampaignwithseasonalityinmind.(Showusyouand
yourHarleycostume!)Ifyouredressedupasasuperherotellusyoursuperheroname,power,and
backstory(Halloween).
12)ThrowbackThursday:Findpicturesofyourparents/grandparentsontheirbikes,recreate
themwithyourbike.UseFacebookandTwitterhashtag:#TBTHarley.
13)Forsecondaryaudience:PairupwithToysRUs,HotWheels,orothertoycompanyto
createHarleytoys(Pink/orange/blackandorange/black)
14)ToyDrivewithToysForTotsinDecemberwithselfiespostedtoInstagramandTwitter.

b.Attainmentofmediaobjectives.
TheoverallgoalofthecampaignistoincreaseawarenessofHarleyDavidsontoayounger
generation.Anothergoalofthiscampaignistoincreasesales4%quarteroverquarterforthenext
yearinthespecifiedagegroupof1835foratotalof16%overafullyear.Finally,thelastgoalofthe
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campaignwillbetoupdatethebrandimagewhilestillfocusingonthehistoryofHarleyandwhatthey
standfor.Inordertoappealtoayoungertarget,Harleymustrebrandthemselvesasthesleek,modern,
andaffordablebikethatthetargetaudienceislookingfor.

c.CPMsandGRPsbymedium.

Medium

CostPerThousand

GRPs

Outdoor

$1001

32

Radio

$1000.19

61

Magazine

$1180.18

400

OOHNonTrad.

$1102

43

Internet

$1000

110

Television

$1048.15

320

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Appendices

a.Monthlyspendingandmediadistribution.
January:Directmailpiece,TV/radio,socialmediaandYoutube
February:TV/radio,SocialmediaandYoutube[heavy:introduceapp]
March:TV/radio,Magazineads,SocialmediaandYoutube[heavy]
April:Magazineads,SocialmediaandYoutube[heavy],
May:Magazineads,SpringBreakrally,SocialmediaandYoutube,OOH
June:SocialmediaandYoutube,moviecrossmarketing,
July:4thofJulyevent,SocialmediaandYoutube,moviecrossmarketing,OOH
August:SocialmediaandYoutube,moviecrossmarketing,
September:Magazineads,SocialmediaandYoutube
October:Magazineads,SocialmediaandYoutube
November:Magazineads,SocialmediaandYoutube,beginToysRUscollaboration
December:SocialmediaandYoutube,ToyDriveevent,localradio,OOH

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Fig.2.4,HarleyDavidsonrevenue(Forbesmagazine)

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