HArley davidson †casestudy Essay

In this case study we will analyze Harley-Davidson unique way of marketing. How they chose to invest the volume of their marketing budget back in their customers, to give the ultimate Harley experience and way of life.And how all of the above translate to exceptional brand loyalty and growth sales in traditional and new demographics.The LifestyleHarley-Davidson has positi cardinald itself as a way of life, with an super loyal and growing customer base. Harley Davidsons H.O.G (Harley Owners Group) has about one million members1, and it is being referred internally as the Original Social Network 2 H.O.G. members enjoy benefits such as a magazine subscription (Hog Tales and Enthusiast), the H.O.G. Touring Handbook, a employ roadside assistance service, an insurance course of study that was designed specifically to their needs, a theft reward service, a travel center, and a Fly & Ride program allowing H.O.G members to rent Harley-Davidson bikes wherever they fly3.In addition, Harle y-Davidson encourages their customers to customize their bikes and make it their own. They are community members who take pride in their creation and/or special affiliation to the community by personalizing their motorcycle and giving it their own personality.As a result (or as a cause), Harleys customers, and H.O.G members are extremely engaged and are being brand advocates throughout the country andthe world4.DemographicsTraditionally, the ideal Harley-Davidson customers were Caucasian men ages 35-plus5.. However, in recent years Harley-Davidson has been targeting other segments of the motorcycle users pool.4Harley-Davidson is aiming to reach a more diverse customer pool. Harley-Davidson has an outreach program targeting new segments, such as young adults 18-34, women, AfricanAmericans and Hispanics. In the U.S., 2012s sales to these segments grew at twice the rate their traditional U.S. customer base sales for that year6.Sticking to their marketing philosophy (Lifestyle), Harle y-Davidson also created additional benefits under H.O.G dedicated for women riding Harley. Their Ladies-Of-Harley (LOH) club was established to encourage women to be more involved in the Harley Way of Life and community7.Today, 30%-40% of Harley-Davidson riders are women8.Questions and AnswersQ What does Harley-Davidson position it self in the market and what is the key to its marketing success?A Harley-Davidson positions itself in the market as a way of life more than just a transportation mode. And the key to its success is the exceptional relationship betwixt the brand and its customers. Harleys relationship with its customers, is so unique, to the point where Harley-Davidson crowd-sourced most of its marketing campaigns to the customers themselves9, knowing that they know themselves better, and they can do an exceptional job (as they do) in representing the brand.Q How does Harley-Davidson produce a long-term customer relationship?A Harley-Davidson encourages their customers t o get involved in the brand by customizing their motorcycle and to express their true self in steel, rubber and chrome10. In addition it is encouraging local clubs, shared rides and trips and other group activities through their H.O.G. club.Q What is Harley-Davidsons value proposition?A Harleys value proposition is more in the community and way of life, than anything else they offer. It is the sense of community, belonging, patriotism and the free expression of ones true self.Q Relate the conceit of customer equity to Harley-Davidson. How does HarleyDavidsons strategy focus on the right relationships with the right customers? A Harley-Davidson has one of the highest customer equity out there. By building a relationship that simulates a cult. Their customers desire the Harleys way of life and show an amazing behavioral loyalty towards the brand. A Harley-Davidson customer is not necessarily a Harley-Davidson motorcycle owner. It is anyone who relates to the Harley experience and w ay of living.For example, Harleys clothing line11, the H.O.G. Associate membership12, and other peripheral experiences are addressing all Harley enthusiasts, not just motorcycle owners. abridgment and ConclusionHarley-Davidsons way of marketing is through its established and growing customer base, it is amazing that a company that invests 85%13 of their entire marketing budget in their current customers is growing stronger by the year, and expanding into new market segments.To summarize Harley is not automotive. It might have an engine, it might have wheels, and it might menstruate on roads, but thats where the similarities stop, 14 -Mark-Hans Richer, CMOReferencesForbs, Behind The Brand, Harley-Davidsons Original Social Network, by Jennifer Roony 30, May 2013 (http//www.forbes.com/sites/jenniferrooney/2013/05/30/behind-the-brand-harleydavidsons-original-social-network/) 2. Its members are extremely engaged and are being brand advocates throughout the country and the world.Principl es of Marketing, Global Edition, by Philip Kotler / Gary Armstrong, p.17 (ISBN 027378-699-7) 4Forbs, Behind The Brand, Harley-Davidsons Original Social Network, by Jennifer Roony 30, May 2013 (http//www.forbes.com/sites/jenniferrooney/2013/05/30/behind-the-brand-harleydavidsons-original-social-network/) 5Harley-Davidson, Corp Relations, Demographics (http//investor.harleydavidson.com/phoenix.zhtml?c=87981&p=irol-demographics) 6Harley-Davidson, Corp Relations, Demographics (http//investor.harleydavidson.com/phoenix.zhtml?c=87981&p=irol-demographics) 7MCHOG, Ladies of Harley, (http//www.mchog.com/MCHogLadiesOfHarleyMain.htm)Harley-Davidson The Spirit of America, Documentary (http//www.imdb.com/title/tt0456137/) How Mark-Hans Richer Is rideHarley-Davidsons Marketing Agenda, Video Interview, Forbs, 30 May, 2013 (http//www.youtube.com/watch?v=4c5nBtF-AGU) 9Customize your Harley, Harley-Davidson (http//www.harleydavidson.com/en_US/Content/Pages/Owners/customize.html) 11Harley Davidson, M en and Women clothing lines. (http//www.harley-davidson.com/store/) 12Harley Davidson, rank types. (http//www.harleydavidson.com/en_US/Content/Pages/HOG/membership-types.html) 13Mark-Hans Richer, Harley-Davidson CMO, Ad Age interview July 10, 2010 http//adage.com/article/242952/ 14Mark-Hans Richer, Harley-Davidson CMO, Ad Age interview July 10, 2010 http//adage.com/article/242952/