harley davidson marketing strategy case study

Harley-Davidson Branding Strategy and Marketing Case Study

Analysis and examples of harley-davidson’s identity, positioning, key messages, tone of voice, brand archetypes, customer benefits, competitors, and marketing content..

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Brand Overview

• Motorcycles

Business Type

Physical Products

https://www.harley-davidson.com

Target Customer

Cruising and touring motorcycle riders

Primary Need ( Job To Be Done )

Drive a solid, partially American-made motorcycle that makes me feel like I’m part of a community

Brand Visual Identity & Content

Primary brand colors, brand typefaces, hero content.

Hero Content Type

Content features people, brand messaging, key messages, benefit or feature focus, tone of voice, brand archetypes.

( Learn More About Brand Archetypes )

Everyperson

Brand Positioning ( Elements of Value )

( Learn More About The Elements of Value )

Aspirational

Affiliation-Belonging

Badge Value

Reduces Risk

Brand Benefits

Trusted quality from an American brand with over 100 years of history in the motorcycle industry

A specific feel and sound from a motorcycle that I connect to the experience of riding

Being part of a community of riders who all value and appreciate the story and feelings behind the brand

Competition

Key competitors.

Honda, Yamaha, Kawasaki, Suzuki, Polaris, BMW

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How did Harley Davidson become an “iconic” Brand?

Love riding a motorcycle? Ever fancied taking a trip to the mountains (Imagine Leh-Ladakh) in one of those? I made one trip as a pillion and still loved every bit of it. There was a feeling of pleasure, relaxation, fear, and elation, all at once.

View this post on Instagram A post shared by Harley-Davidson India (@harleydavidson_india)

A friend once said, “Riding is a solitary experience, but you are closer and more involved with the road, the outdoors, and the other people there.” Are you wondering about my sudden interest in motorcycles, rides, and trips to the mountains? Ride along to know more (please wear your helmets!).

It was 1901 when William S. Harley, age 21, created a blueprint of an engine designed to fit into a bicycle (way ahead of its time). In 1903, William S. Harley and Arthur Davidson introduced the first Harley-Davidson® motorcycle under Harley-Davidson Motor Company . From then to now, this motorcycle brand has re-defined brand loyalty and achieved a cult brand status. All credit goes to the super-cool brand marketing strategy of Harley Davidson.

Harley is not automotive. It might have an engine, it might have wheels, and it might run on roads, but that’s where the similarities stop . -Mark Hans Richer, Former CMO Harley-Davidson Motor Company

What brand marketing strategies make Harley Davidson so unique?

Harley davidson is different.

A cult brand is different. People want to be different; they want things that represent their individualism. Harley has always positioned itself as a quintessence of ‘freedom’ and ‘individualism.’ It gives its owners a blank canvas to explore who they are.

Harley Davidson is a symbol of Courage

A cult brand shows courage. Harley and Davidson created racing motorcycles when there were not even proper roads or racing tracks. They dared to innovate and bring something way ahead of its time, showing a lot of grit and courage.

Harley Davidson Focused on creating a tribe/ community

A cult brand creates a tribe/ community. Harley Owner Group (HOG) is a sponsored community marketing club operated by Harley Davidson for enthusiasts of that brand’s motorcycles. A real first social network, The HOG is “the granddaddy of all community-building efforts,” serving to promote not just a consumer product but a lifestyle.

Though Harley Davidson is looked as a Bad Boy but its also Fun & Expression

A cult brand personifies fun & expression. Remember the memorable chase scene from “Terminator 2: Judgement Day”. It includes a 1990 Harley Fat Boy. Ever watched the HOG take over the highway, all dressed in their Harley gears. There are only a few brands that are so exciting that people tattoo the logo on their bodies. That is exactly what Harley-Davidson has achieved by building a fantastic aura around the brand.

Haley Davidson has focused on Listening its customers

A cult brand listens and makes amends. The company collects customer data through sponsored events and organized conventions, filled with Harley fanatics. A former CEO, Rich Teerlink, calls this “real-time market research,” as it gives them unique insight into customer behaviour and opinion. They listen to improve on their products and experiences.

Harley focused on Openness/ Inclusiveness

A cult brand is open and inclusive. “ When someone owns a Harley they realize that they are born into a community of equals where it doesn’t matter the status, job, income, power of the motorcycle rider next to them, it gives them permission to focus on a common goal of community and a common passion of riding motorcycles .” – Jonathan Cooper, Research Now

Harley means Freedom

A cult brand embodies freedom. The dominant personality trait of the Harley-Davidson brand is freedom, not necessarily a Rebel. Freedom from both mainstream values and freedom to travel anywhere you want, whenever you want. The logo of the eagle and biker clothing and saddlebags reminiscent of the Wild West folk supports the trait. Harley gives people the freedom to experience an open world.

Harley-Davidson today is one of the most iconic in both America and the world. But it has struggled to achieve sustainable success over the years. They have been through periods of low returns (Introduction of cheap Japanese motorcycles like Yamaha, Honda, and Kawasaki) and damaged brand reputation (association of Harley bikes with outlaw gangs). Still, they’ve always found a way to get themselves back on track, stronger than ever before.

Harley-Davidson’s brand is built on customer loyalty, innovation, and emotions. Companies today can use the Harley-Davidson brand marketing strategy and story as an incredible example of a built and sustained company with one of the most recognizable identities in the world. And of course, it has also survived 2 World Wars, The Great Depression, and the Global financial crisis.

See you next time with another powerful Brand Strategy…

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Harley-Davidson’s Marketing Mix (4P) Analysis

Harley-Davidson is a success story in the motorcycle market. The company operates profitably despite challenges in the global motorcycle industry. Harley-Davidson’s marketing mix provides insights into how the firm maintains its business resilience. The marketing mix (4P: Product, Place, Promotion, Price) is the set of strategies and tactics used to execute a marketing plan. In the case of Harley-Davidson’s marketing mix, concerns about promoting and strengthening the brand are effectively addressed. Even though the company occasionally changes its advertising efforts, its marketing mix remains the same. Through this marketing mix, Harley-Davidson competes well in the domestic and global motorcycle markets.

Harley-Davidson’s marketing mix (4Ps) indicates how a motorcycle company can effectively promote its products, brand, and business. This factor in the marketing mix supports the company’s efforts for a resilient brand and other business strengths, as identified in the SWOT analysis of Harley-Davidson , to counteract strong competition involving Ducati, Yamaha, Honda, and other firms.

Harley-Davidson’s Products (Product Mix)

The motorcycle manufacturing business has a limited product mix. This component of the marketing mix covers the outputs that the company sells. The product lines in Harley-Davidson’s product mix are represented in the following categories:

• Motorcycles
• Parts and accessories
• Merchandise and collections

Harley-Davidson is most popularly known for its chopper motorcycles. However, the company offers other product lines, such as engines and motorcycle parts and accessories. The company also provides apparel and related merchandise for bikers or riders. Experience products include factory and H-D museum tours and other events, as well as motorcycle rentals. This component of the marketing mix shows that Harley-Davidson has diversified its business through a limited number of product lines, mostly focused on chopper/custom motorcycles.

Place/Distribution in Harley-Davidson’s Marketing Mix

Harley-Davidson’s products are distributed to maximize sales revenues. The venues for reaching customers are considered in this component of the marketing mix. The following are the places for distributing Harley-Davidson’s products:

• Authorized dealers
• Authorized rental dealers
• Harley-Davidson Online Store

Authorized Harley-Davidson dealers are the primary places for distribution of the company’s products. Most of the firm’s revenues are generated through these dealers. Some dealers are also authorized to rent out Harley-Davidson motorcycles. In addition, the company’s online store allows customers to place online orders for motorcycle parts and accessories, apparel, and other merchandise. This component of the marketing mix relates to the company’s marketing strategy for optimizing the efficiency of its authorized dealers. Harley-Davidson’s operations management supports distribution efficiency in this aspect of the marketing mix.

Harley-Davidson’s Promotion (Promotional Mix)

Harley-Davidson’s brand and products are commonly promoted alongside the chopper/custom biker culture. Communication strategies and tactics are covered in this component of the marketing mix. Harley-Davidson’s promotional mix contains the following strategies/tactics, arranged according to significance:

• Personal selling (field selling)
• Public relations
• Advertising
• Sales promotion
• Direct marketing

Personal selling is the most significant promotional strategy in Harley-Davidson’s business. Specifically, the field-selling technique is used to encourage customers to explore and try the company’s motorcycles at authorized dealerships. The company also uses public relations, such as by organizing and supporting Harley Owners Group (H.O.G.) rallies in various locations, to promote and increase awareness about the company’s brands and products. In addition, the company advertises its products to reach large populations of potential customers. Sales promotion is occasionally used in Harley-Davidson’s marketing mix. Direct marketing is the least significant of the company’s marketing communication strategies and tactics. This component of the marketing mix highlights the importance of personal selling as an effective way for the company to promote its brand and motorcycles to customers and to optimize sales revenues. These communication tactics in the marketing strategy depend on the brand and its psychosocial bond with riders, which is linked to the emotional-connection goals and objectives of Harley-Davidson’s mission statement and vision statement .

Prices & Pricing Strategy in Harley-Davidson’s 4P

Harley-Davidson uses the premium pricing strategy. Relatively high price ranges are applied in this pricing strategy. For instance, the company’s motorcycles are more expensive than many other motorcycle brands available in the American market. The company justifies its prices by emphasizing the craftsmanship and quality of its products. This component of the marketing mix relates to Harley-Davidson’s generic competitive strategy and growth strategies , which capitalize on uniqueness to set the company’s products apart from the competition and to grow the business.

• Become a Harley-Davidson Dealer .
• Harley-Davidson, Inc. – Experience H-D .
• Harley-Davidson, Inc. – Form 10-K .
• Harley-Davidson, Inc. – Shop Motorcycles, Parts & Apparel .
• Reddy, T. N., Ghouse, S. M., & JS, R. K. (2023). Marketing Mix – Review of P. Research Journal of Humanities and Social Sciences, 14 (1), 55-58.
• Wu, X., Zhang, F., & Zhou, Y. (2022). Brand spillover as a marketing strategy. Management Science, 68 (7), 5348-5363.
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Please note you do not have access to teaching notes, harley-davidson: rejuvenating an iconic brand.

Publication date: 24 April 2020

Teaching notes

Harley-Davidson's first-ever chief marketing officer has his work cut out for him as the classic American motorcycle manufacturer seeks to curb slowing sales from aging customers. The dilemma: what to do with its less known and unprofitable Buell brand, which has a younger customer base? Which of five options continue its dual-brand strategy, double down on Buell, operate Buell as an endorsement brand, sell it, or discontinue the brand entirely will best attract younger buyers without alienating current diehard customers?

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Roese, N.J. and Chernev, A. (2020), "Harley-Davidson: Rejuvenating an Iconic Brand", . https://doi.org/10.1108/case.kellogg.2021.000017

Kellogg School of Management

Copyright © 2019, The Kellogg School of Management at Northwestern University

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How Harley-Davidson Used Artificial Intelligence to Increase New York Sales Leads by 2,930%

And it led to more revenue and more jobs.

It was winter in New York City, and Asaf Jacobi’s Harley-Davidson dealership was selling only one or two motorcycles a week. It wasn’t enough. A chance meeting led Jacobi to try out a new AI-driven marketing platform that autonomously optimizes marketing campaigns. That weekend Jacobi sold 15 motorcycles — almost twice his all-time summer weekend sales record. How? By analyzing existing customer data to isolate the defining characteristics and behaviors of high-value customers, the system identified “lookalikes” who resembled these past customers, and then used these lookalikes to test new marketing campaigns. The test results helped the algorithm predict which ad copy and visuals would resonate with the customers most likely to buy; for example, an email urging customers to “Call now” outperformed an email asking them to “Buy now” by 447%. Once it determined what was working and what wasn’t, the system autonomously chose and scaled the most effective marketing campaigns — and Jacobi’s business tripled. The spike in demand left him with a new dilemma: how to hire a bunch of new employees, fast.

It was winter in New York City and Asaf Jacobi’s Harley-Davidson dealership was selling one or two motorcycles a week. It wasn’t enough.

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Strategic Marketing of Harley Davidson Case Study

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Porter’s Five forces Analysis

Harley Davidson’s goal for perfect competition relies on Porter’s five forces framework such as market rivalry whereby a business organization competes favorably in the global market arena as part of maintaining a well established competitive edge. The company’s market share and industrial concentration are favorably stable.

This is due to its diverse product differentiation and the ability to raise and lower commodity prices without incurring losses. Although it is faced with threats of product substitute that emanates from other market players, Harley Davidson overcomes the challenge of accessory substitutes by making frequent replacements.

On the same note, the global market is threatened by incumbent firms that tend to increase barrier to entry of new and smaller firms. However, Harley Davidson uses the barrier strategically through price reduction in order to gain competitive advantage.

PESTEL analyses for Harley Davidson Company

Political factors.

Managers at the Harley Davidson Company are faced with diverse macro-environment challenges that impact the decisions they make. Some of the macro changes that effect its operations include the changes in government policy, demographic changes, trade barriers, new laws and tax changes.

One key macro-environment factor affecting its operations is the political factor. Additionally, there are myriad of political decisions that impact the operations of Harley Davidson in vital business areas such as health and education of the workforce as well as quality of economic infrastructure like roads.

Economic factors

The economic factors include exchange and inflation rates, economic growth, taxation changes and interest rates. These economic factors impact the behavior of the firm in such areas as deterring investments since it makes the cost of borrowing to increase and exporting of its products becomes difficult due to a strong currency which raises the price of commodities.

In addition, due to the current inflation problem, Harley Davidson faces the problem of raised operational costs and demands from employees who need higher wages.

Social factors

Socially, one of the factors impacting Harley Davidson’s operations includes massive changes in social trends. This has been found to impact the willingness and availability of its employees to work as well as the demand for its products. The impact of social factors is witnessed among the aging population who are part of its staff and require pension payments.

This increases the cost of payments and hiring of new staff. Besides, it has to deal with the impact of the aged on demand. As usual, the aged do not frequently demand motorcycles what makes the demand among this age group to be lower.

Technological factors

Harley Davidson is making use of new technologies to innovate new processes and products. Its motor cycles, accessories and merchandise are all created for new markets and with room for technological improvements.

Besides, it has adopted online business systems through which it markets and sells its products to online shoppers. Through technology, Harley Davidson has been able to lead in innovation, improve the quality of its products, create better two-wheel designs and reduce costs.

Environmental factors

Major environmental factors affecting this business include climate and weather changes. An external factor such as global warming is a significant problem to this company as it impacts both transportation and travel industries. Buyers prefer cars to motorcycles and this affects the sales of motor cycles and its business opportunities due to changing demand patterns.

Legal factors

Certain legal factors such as consumer laws, safety legislation, and employment as well as competition laws control and regulate its operations. Of greatest importance is the employment law that covers the issue of wages for employees, working hours, dismissal procedures and redundancy.

Competitive advantage

Some of the important competitive advantages at Harley Davidson include the fact that it has employed innovative capacity, strategic flexibility, organizational learning and effective technology. Besides, it has articulate strategic intent, competencies and resources that are non-substitutable and unique.

Ways for value creation/ ways for customer value creation

Harley Davidson value creation methods include customer engagements, encouraging blogs and debates on products, creating value through transparency, risk benefit, access and dialogue.

Evaluate H-D’s latest segmentation, targeting and positioning (STP) Strategies. What are its major Strengths and weaknesses?

Market segmentation in Harley Davidson is pursued with greater vitality to ensure that the existing market is understood even better and newer avenues to sell the products that have been identified. Lower prices for products to these economies act as part of crucial attraction factors and therefore essential marketing strategy for new products that are being introduced into the market.

Other market segmentation that could result in greater sales includes consideration of individual groups’ behaviors to determine their exact preferences especially in the emerging era of great creativity. In terms of target, its products target transport businesses and companies as well as individuals.

In terms of positioning, following the continued expansion of population in America, Harley Davidson products have not been made more available especially in major towns. However, to promote the availability of these products, the company has resulted to online sales where consumers can order for their choice of products and get them delivered.

Suggest 2-3 contingencies that H-D should contemplate (international/European/Asian markets? Younger generation customers, more focus on women customers? Parts markets? ) . What main changes to their current marketing strategy should H-D consider to minimise impact of these contingencies (just point them out and write 1-3 sentences in support)?

Harley Davidson should concentrate on younger generation customers and international markets. To cushion itself from contingencies, it should be updated periodically such as offering staff training and develop mitigation options as these are key in risk planning and business continuity.

H-D is switching its strategy to Crowd sourcing (last page). Evaluate this strategy in regards to H-D

Is switching to it a threat or an opportunity why.

Harley Davidson creative marketing initiatives based on crowd sourcing is a move aimed at engaging the broader community and its customers with its brand and the company. Besides, Harley Davidson intends to adopt crowd sourcing for community collaboration and consumer innovation.

Crowd sourcing is indeed an opportunity for Harley Davidson to increase its marketing initiatives. It will also use it as a production and problem solving model through which it reaches customers and communities and submits solutions to both its customers and employees.

Pros and cons? Would it work for H-D or not? Why?

Crowd sourcing can effectively work for Harley Davidson as it provides a forum where issues affecting workers and customers are explored quickly and at a cost that is comparatively effective. Besides, through crowd sourcing, Harley Davidson has the ability to tap from a wide range of opportunities and talents in the organization.

Additional crowd sourcing provides Harley Davidson with an opportunity to gain first hand information from customers on products and preferences. Lastly, this model creates a crowd sourcing organization that encourages contribution and collaboration key for business growth.

Analyze the major 5 principal factors behind switching to this new strategy?

One major factor why Harley Davidson made a move to crowd souring was to develop a consumer engagement project where a ‘community is involved to ensure that effective contributions or collaborations on products and services are made to enhance the performance of a business. Besides, crowd sourcing model was going to introduce the community to its product designs, innovations and new features.

These were to act as incentives for motivating the willingness of buyers to shop for its products. In addition, it was a step to allow the broader community and customers to feel as a part of the company and to be engaged in its business activities. In addition, the focus of adopting crowd sourcing was to ensure that consumers and the community are satisfied ,with products and services offered.

Advise to H-D of at least 2 major marketing strategies that they should consider strengthening their position. Applying RACES (Resources, acceptability, consistency, effectiveness, sustainability) criteria, which of these strategies would you advise the publication to adopt and why?

Sustainability- Crowd sourcing is strategies that will link Harley Davidson with its customers and the community and as such offer it a unique competitive advantage.

Effectiveness- Crowd sourcing is an effective means of presenting to a community or customers the initiatives of a business as.well as products and services. Crowd.sourcing will strengthen the position of Harley Davidson in the market.

H-D is a company with strong marketing. What changes into H-D marketing department could be made in order to support new Crowd sourcing strategy and help H-D to strengthen its position in the market?

Some of the important strategies that can be put in place include developing leadership capabilities to handle marketing teams and improving marketing skills. Building leadership capability is important in coordinating marketing activities while improving marketing skills is vital for overcoming dynamic challenges that are common in contemporary marketing.

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IvyPanda. (2019, May 31). Strategic Marketing of Harley Davidson. https://ivypanda.com/essays/strategic-marketing-harley-davidson/

"Strategic Marketing of Harley Davidson." IvyPanda , 31 May 2019, ivypanda.com/essays/strategic-marketing-harley-davidson/.

IvyPanda . (2019) 'Strategic Marketing of Harley Davidson'. 31 May.

IvyPanda . 2019. "Strategic Marketing of Harley Davidson." May 31, 2019. https://ivypanda.com/essays/strategic-marketing-harley-davidson/.

1. IvyPanda . "Strategic Marketing of Harley Davidson." May 31, 2019. https://ivypanda.com/essays/strategic-marketing-harley-davidson/.

Bibliography

IvyPanda . "Strategic Marketing of Harley Davidson." May 31, 2019. https://ivypanda.com/essays/strategic-marketing-harley-davidson/.

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How harley-davidson marketing strategy built a cult following.

In this article

Love them or hate them, harley davidson is one of the most evocative brands in the world..

" The only motorcycle manufacturer That makes big, loud motorcycles For macho guys (and "macho wannabes") Mostly in the United States Who want to join a gang of cowboys In an era of decreasing personal freedom. "

– Harley Davidson's internal positioning statement

The legendary motorcycle company was founded in Milwaukee, Wisconsin in 1903 by childhood friends William Harley and Arthur Davidson.

While sometimes mocked as overpriced, overrated, and as the vehicle-of-choice for bullies and and macho-wannabes, Harley-Davidson has nevertheless, remained utterly iconic throughout the years. The brand inspires as much loyalty as it does derision.

And it's easy to see why. A Harley-Davidson motorcycle is a technological throwback amidst a modern sea of minimalism. It's unapologetically muscular and obnoxiously loud. Most impressively, the automaker has remained relevant through the decades – acquiring an eclectic bunch of fans and riders, ranging from soccer moms to post-ironic hipsters.

It's quite probable that no other brand in existence gets nearly as much volume in tattoos:

How did Harley-Davidson achieve such phenomenal success and visibility as a brand? What sort of marketing strategy did they use? Let's take a look.

1: "Rebel By Choice" – Clear brand positioning by bikers, for bikers

" When someone owns a Harley they realize that they are born into a community of equals where it doesn’t matter the status, job, income, power of the motorcycle rider next to them, it gives them permission to focus on a common goal of community and a common passion of riding motorcycles ." – Jonathan Cooper , Research Now

Harley Davidson knows exactly what it is, and how it's viewed through the public's eyes, particularly its enthusiasts. The motorcycle manufacturer has wholly embraced its identity as the vehicular embodiment of 'freedom', 'individualism', 'rebellion', and the 'American way'.

"It's not hardware," Richard F. Teerlink, Harley's chairman said in an interview , "it is a lifestyle, an emotional attachment [and] that's what we have to keep marketing to".

This self-awareness of its transcendent image has led Harley-Davidson to pursue unorthodox marketing tactics that simultaneously pasteurizes its 'outlaw' status, while reinforcing it through greater inclusion.

For example, membership in Harley-Davidson is now open to pretty much everyone, including kids, and adults who don't have driver's licenses. At the same time, Harley continues to reward its hard-core customer base by sponsoring motorcycle rallies around the world.

2. Build a loyal following and allow them to take ownership: The Harley Owner's Group (H.O.G.)

In 1983, Harley-Davidson created the Harley Owners Group (H.O.G.). This club would allow Harley to connect itself with both its customers and the mainstream population. When conceived, H.O.G was criticized by hard-core Harley bikers for stealing and softening the company's recalcitrant character. That however, didn't deter Harley's marketing ambitions.

Through H.O.G, Harley would sponsor biker rallies, organize charity drives, and offer special promotions to its diverse fanbase. Moreover, new members could enjoy their first year free-of-charge.

More importantly, the club became Harley's primary vehicle to overturn its past association with motorcycle gangs . As such, Cylde Fessler, Harley's vice president for business development, utilized H.O.G. for philanthropic purposes, associating the club with the Muscular Dystrophy Foundation and other charity groups.

Suffice to say, H.O.G. has been a resounding marketing success . Today, it has more than a million members in 25 countries, and half of them regularly attend Harley-Davidson events.

Furthermore, H.O.G. members are encouraged to provide direct input into how Harley's creates new products and improves current ones.

Best of all, because of H.O.G. and its push for greater customer engagement and ownership, Harley-Davidson spends less than a million dollars on advertising each year.

3. Becoming the representation of an ideal: Product placement in Easy Rider's "Captain America" bike

In 1969, the cult movie Easy Rider reinvigorated Harley-Davidson. The film had a profound effect on Harley-Davidson and the global motorcycling scene. Bikers immediately began to customize their bikes to mimic those featured in Easy Rider.

Harley-Davidson profitably capitalized on this , introducing similar-looking motorcycles to the market.

Most famously, the Harley-Davidson motorbike (aka 'Captain America' bike) ridden by Peter Fonda's character in Easy Rider became a motorcycling phenomenon. According to the Telegraph , the bike symbolized the global resurgence in counterculture and anti-war sentiments in the 1970s and 1980s.

In 2014, the last 'Captain America' bike was sold for $1.35 million at an auction to much fanfare.

4. Create phenomenal events people look forward to – the annual Sturgis Motorcycle Rally

Harley-Davidson has been extremely good at customer engagement, constructing brand loyalty, and building a brand community. The company regularly organizes and sponsors communal bike rallies, donation drives, and other social events.

Perhaps, the most well-known of these events is the annual Sturgis Motorcycle Rally in Sturgis, South Dakota.

Initially, Harley had no connections with the rally, which began back in 1936 by the Jack Pine Gypsises Motorcycle Club. However, in 1980, Harley released the FXB Sturgis model to celebrate the event .

Similarly, Harley has been one of main sponsors of Sturgis, so much so that the event is described as the " epicenter of the Harley-Davidson mystique ".

At Sturgis, Harley effectively socializes with its customers and fans, both old and new. Rally visitors are able to test-ride Harley bikes and purchase a plethora of Harley merchandise. Harley bike owners also proudly show off their motorcycles.

As a result, Harley strengthens its relationship with its fanbase, treating them as family and as equal participants in the production and promotion of the brand.

5. Marketing to the Military

Despite its renegade image, Harley-Davidson has strong connections with the US military . In WW1, Harley sold 15,000 motorcycles to the US military, and almost all of its output during WW2 was for the military as well.

Unsurprisingly, many military veterans have purchased Harley bikes for civilian use. In recognition of their service, Harley operates a number of biking programs for military veterans.

For instance, Harley introduced the ' Heroes Ride Free ' program, offering a free Harley-Davidson Riding Academy course for all former and current American military personnel.

By showing its appreciation for the US Military, a hallowed American institution, Harley-Davidson cements its quintessential American character while winning the hearts of military veterans, their families, and their supporters.

6. Extension of brand into clothing

You don't just ride a Harley-Davidson motorcycle. You need to dress the part as well. In this department, Harley does an amazing job in creating and selling clothes that embody its brand .

While Harley clothes represent a small amount of its total revenue, they nevertheless promote the Harley-Davidson lifestyle , turning its wearers into brand advocates.

This means that regardless if you own a Harley bike or not, you'll be able to wear Harley's colors. And fashion, unlike motorcycles, is open to everyone.

• Know what your identity is, and embrace it.
• Build a brand community .
• Capitalize and tap into current consumer behaviors and trends .
• Sponsor and organize events relevant to your tribe. It builds communities and brings existing ones together.
• Associate your brand with key societal institutions.
• Diversify your sources of revenue. Imbue each channel with brand values and character.

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Hydar reads History at Nanyang Technological University. He likes cats and Cersei Lannister.

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How Harley Davidson’s Marketing Strategy Makes Its One of The Most Successful Motorbike Brands

CEO Avada Commerce

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Harley-Davidson is a well-known American brand. The company itself is over 113 years old, founded in Milwaukee in 1903, when two friends developed a small power cycle in the back of a third friend’s machine shop. Almost every American today recognizes the distinctive rug, the iconic chopper theme, and the orange-and-black Harley logo. Harley and Davidson was one of only two motorcycle firms to survive the Great Depression – but that economic prosperity wasn’t intended to last.

During the decade between 1973 and 1983, Harley Davidson’s market share fell by more than 50%. High-quality, low-priced Japanese bikes flooded the American market, fueling demand for Harley-Davidson’s American craftsmanship. And, since then, Harley Davidson has made his way back to the hearts of Americans – all of this was thanks to the power of branding .

Branding is not just a clever marketing trick; branding is a way for companies to communicate with consumers on an emotional level – and no company proves it better than Harley-Davidson. Below are five approaches used by Harley-Davidson to improve the customer’s experience in winning back their market share. In this article, I will introduce to you the marketing strategy that Harley and Davidson have used to rise up from ashes .

The four Ps of Harley Davidson marketing strategy

Harley-Davidson is a success story of the motorcycle market. Despite difficulties in the global automotive market, the company remains profitable. Harley-Davidson’s marketing approach offers insights into how the company retains its business resilience.

The marketing mix 4Ps including Product, Place, Promotion, Price is a collection of strategies and tactics used to carry out a marketing campaign. Throughout the case of Harley-Davidson’s marketing strategy, questions regarding the promotion and enhancement of the brand are successfully answered.

While the company has increased its promotional activities, its marketing strategy remains virtually the same. Harley-Davidson competes well in domestic and foreign motorcycle markets through this marketing blend. Harley-Davidson’s marketing mix (4Ps) illustrates how a motorcycle manufacturer can rely on personal sales to support its goods, brands and companies. This marketing mix element supports the company’s efforts to achieve a resilient brand despite high and increasing competition.

Harley-Davidson’s First P in Its Marketing Strategy: Products

Harley-Davidson has a small range of products. This part of the marketing mix decides the outputs that the business sells. The product lines in the Harley-Davidson product mix are as follows:

• Motorcycles
• MotorClothes Merchandise and Collections
• Parts and Accessories
• Rentals via Authorized Harley Davidson Rental Dealers

Harley-Davidson is best known for its tailor-made motorcycles. The company does, however, sell other product lines, such as engines and motorcycle parts and accessories. Harley-Davidson also supplies clothing and related products under the MotorClothes name. In addition, the company provides a number of its motorcycles for sale. That portion of the marketing mix shows that Harley-Davidson has diversified its business through a small range of product lines, mainly based on choppers and custom motorcycles.

Harley-Davidson’s Second P in Its Marketing Strategy: Place

Harley-Davidson’s offerings are distributed to maximize sales volumes. The positions for reaching consumers are included in this aspect of the marketing mix . In the case of Harley-Davidson, the following are the areas for the sale of its products:

• Authorized Harley Davidson Dealers
• Harley-Davidson Online Store
• Authorized Harley Davidson Rental Dealers

Authorized Harley-Davidson dealers are the key outlets for the sale of the company’s vehicles. The majority of the company’s revenues are generated by these dealers. Some dealers are also allowed to rent Harley-Davidson motorcycles.

On top of that, the company’s online store helps consumers to position online orders for motorcycle parts and accessories, clothing and other products. This portion of the marketing mix introduces the Harley-Davidson strategy for maximizing the productivity of its authorized dealers.

Harley-Davidson’s Third P in Its Marketing Strategy: Promotion

The brand and products of Harley-Davidson are widely marketed alongside the culture of chopper/custom biker. This part of the marketing mix covers communication techniques and tactics. The advertising mix of Harley-Davidson comprises the following strategies / tactics, grouped by relevance:

• Personal selling (field selling)
• Advertising
• Public relations
• Direct marketing
• Sales promotion

Personal selling is the most powerful promotional strategy in the Harley-Davidson company. Specifically, the field sale strategy is used to allow buyers to try and check the company’s motorcycles at approved dealerships.

Harley-Davidson also uses public relations, such as the organizing and sponsorship of Harley Owners Group (H.O.G.) meetings in different locations, to promote and increase awareness of the brands and products of the company. In fact, the company advertises its goods in order to attract wide numbers of potential buyers.

Sales advertising is also used in the Harley-Davidson marketing blend. Direct marketing is the least important of the marketing strategies and techniques of the company. This aspect of the marketing mix highlights the value of personal sales as an efficient way for Harley-Davidson to promote its brand and goods to consumers and to maximize sales revenues.

Harley-Davidson’s Fourth P in Its Marketing Strategy: Price

Harley-Davidson is using a premium pricing approach. Relatively small price ranges are used in this pricing approach. For example, Harley-Davidson motorcycles are typically costlier than any other motorcycle brands available on the American market. The company backs up these high prices by emphasizing the craftsmanship and durability of its items. This aspect of the marketing mix relates to Harley-Davidson’s generic differentiation strategy, which capitalizes on the uniqueness of setting goods apart from competition.

Five lessons you can take from Harley Davidson’s marketing strategy

Cultivate a core audience.

If most people think of a Harley-Davidson driver, they think of an older, affluent, white male – and they’re not wrong. While some may find such a broad customer profile to be disadvantageous, the fact is that much of Harley Davidson’s success is due to their loyalty and appreciation of their small core audience. Harley Davidson has worked tirelessly to understand exactly who values the brand and how to fulfill the needs of their particular audience.

Besides that, it’s no surprise that white men over the age of 50 seem to have a lot of money to spend; Harley Davidson has placed himself so that his buyers are rich and willing to get some sort of brand message. Through restricting itself to a specific demographic, Harley Davidson can be more certain of the success of its marketing strategies and provide more tailored customer experience for those who are most willing to buy.

Do real-time marketing research

The primary way in which Harley Davidson collects consumer data is through funded events and organized conferences that are filled with Harley fans. For example, Daytona Bike Week is an yearly gathering of Harley Davidson riders and lovers, and thousands of Harley Davidson data-gatherers enter the festivities to connect directly with old and new customers.

Former Harley Davidson’s CEO Rich Teerlink calls this “real-time consumer analysis” as it offers Harley Davidson a unique insight into customer behavior and perception. Equipped with this knowledge, Harley Davidson can improve the various aspects of their business, from the performance of their bikes to their selling strategy, in order to improve the experience of their customers.

Have Relationship-Building Strategies

If a customer purchases a Harley, the customer is a member of the Harley family for a lifetime. For more than 15 years, Harley-Davidson has organized an initiative called the Harley Owners Group , or HOG, which aims to link the owners of Harley Davidson with each other and the business.

HOG provides participants with all kinds of bike-related problems, from repair workshops to assistance in establishing a local motorcycle club. By far, HOG is the largest manufacturer-sponsored bike club in the world, with 325,000 members and 940 branches. By motivating consumers to stay involved in the Harley Davidson culture, the business gives them excellent experience and almost guarantees their loyalty to the brand.

Leverage Emotional Appeal

While Harley Davidson goods could look automotive, the company is not focused on selling motorcycles. Harley-Davidson simply cannot compete with the quality of other bikes on the market – particularly those from Japan and Korea, which appear to be cheaper and often have more sophisticated mechanics. Thus, in the ’80s and ’90s, Ken Schmidt , then Director of Marketing, decided to turn Harley-Davidson into an emotional brand.

To most consumers, the Harley-Davidson is more than a bike; it is independence, love, individualism, strength, and mystery – and it ruggles with excitement as it allows customers to come alive. In fact, consumers are not only clients; they are family members, brand ambassadors, and heirs of the traditional American spirit.

Unlike other motorcycle manufacturers, Harley Davidson markets the emotions associated with the bike rather than the bike itself, which lets consumers remain linked and continue to invest in the company.

Use Price To Differentiate

Harley Davidson is not worried with the quality of his motorcycles for many reasons. As stated earlier, the American brand is easily out-of-pocket for cheaper international products, and its primary consumer base has enough money to pay for large stickers.

However, Harley has also been clever in limiting the supply of its goods, drumming up competition and rising stock prices that are more than a year old. Therefore, the only people who own Harley Davidson motorcycles are those who are genuinely loyal to the brand; those who love their bikes irrespective of when they get them or how much they cost. Harley-Davidson consumers are addicted to the brand experience that the company creates, which makes Harley Davidson’s brand strategies the best in the company.

Final Words

While sometimes mocked as overpriced, overrated, and as the vehicle-of-choice for bullies and and macho-wannabes, Harley-Davidson has nevertheless remained utterly iconic throughout the years. The brand inspires as much loyalty as it does derision. And it’s easy to see why. A Harley-Davidson motorcycle is a technological throwback amidst a modern sea of minimalism. It’s unapologetically muscular and obnoxiously loud. Most impressively, the automaker has remained relevant through the decades – acquiring an eclectic bunch of fans and riders, ranging from soccer moms to post-ironic hipsters.

So far in this article, I’ve discussed a number of marketing approaches that Harley-Davidson has used for years to remain its power in the motorcycle industry. I hope that you have acquired great insights that can be applied to your own business!

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