Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Become A Harley Hero
Thanand Kachentawa
Mei Tsoi
Kevin Krilich
Eileen Eddy
COM 322
12/12/2013
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1. Executive Summary
Harley Davidson is a wellknown American motorcycle manufacturer which was founded in
Milwaukee, Wisconsin in 1903 by William S. Harley and Arthur Davidson. Since the establishment of
Harley in 1903, the target audience has always been middle to upper class males 40years or older with
higher disposable income. In the last 5 to 10 years, Harley has seen a decline in sales from their current
target market, the baby boomers. People that fall into the category of “baby boomers” are – for lack of
better terms – are getting older and because of this, they have declining desire to ride (and therefore
purchase) motorcycles. The company has decided to take a new approach and rebrand themselves to be
more desirable to a younger generation. The primary target for this campaign is young men ages
1835. Targeting this group will require a sleeker, sexier look for Harley Davidson motorcycles, which
is detailed in the media plan below.
To attract the new customer base, a wide variety of media buys paired with a campaign
centered on continuity will be required. The new target will need to see the campaign at least three
times before they are sold, due to the high price and involvement in the process of purchasing a
motorcycle. They must be able to relate to the brand, the campaign, and ultimately the bike before they
will make the purchase. Each medium and vehicle for this campaign was chosen specifically to meet
the needs of the target audience. The mediums chosen were print, direct mail, television, radio, social
media, online, event marketing, and cross marketing. Each one of these has a similar execution based
on the central theme of the campaign and has a direct connection with the target audience.
The overall goal of the campaign is to increase awareness of Harley Davidson to a younger
generation. The objective of this campaign is to increase sales 4% quarter over quarter for the next year
in the specified age group of 1835 for a total of 16% over a full year. In order to do this, the campaign
will focus on the lower price range of the new bikes, as well as their excellent quality. A more difficult
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objective of the campaign will be to update the brand image without losing the history of Harley and
what the company stands for. In order to sell bikes to a younger target, Harley must rebrand
themselves to be more in line with its competitors.
2. Situation Analysis
Since their establishment in the early 20th century, Harley Davidson quickly grew to the status
of an American icon. But with the “greying” of Harley’s target audience, they lost a lot of revenue very
quickly in the late 2000’s, and are still working to bring it back up (see fig. 2.4 in appendices).
Harley recently released their second quarter earnings, which includes some valuable insight
into where they are gaining and losing revenue. Despite their hard loss in 2009, Harley’s stock is
generally increasing. Their revenue from selling motorcycles went up 4.2%. However, more
significantly, their revenue from selling Motor Clothes (Harley’s apparel line) increased by 8.7% in the
last quarter (Harley Davidson Investor Relations website). This shows potential in advertising to the
younger generation with the “biker image.” If those in the age range of our target audience do not yet
have the income to purchase a motorcycle, they may have interest in purchasing accessories. This will
potentially bring the accessories buyer closer to the brand and may lead to bigger purchases in the
future when they are earning a higher income.
In order to fully understand Harley Davidsons goals and objectives, their situation analysis has
to first be taken into consideration. For many years now, Harley has been solely targeting affluent,
Caucasian men over 40. However, as this demographic ages, Harley must target a younger generation.
This presents a challenge, because riders younger than 40 generally don’t have the time, interest, or
money to buy a motorcycle, particularly a Harley, because they are in a higher price range than the
competition. Understanding Harley’s SWOT analysis will allow us to set attainable media goals to
change the general attitude of the new target audience.
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Strengths
Harley Davidson is a strong and wellknown brand name. They are known for their innovation,
distinctive roaring sound, and tough image. In addition to their innovative style and creation of bikes,
they also have a strong financial position on the market. They currently sit at 19% of the motorcycle
market. That doesn’t sound like a lot on the surface, but when you consider all of the other revenue
coming in from apparel and accessories, they own a very healthy portion of the market. Harley has
always been known for making a high quality product. They may be expensive but you get what you
pay for, and in this case you pay a premium but get the highest quality product in that category. Harley
has also embraced the event of social media and the necessary digital presence that all brands must take
in order to succeed. They can use these channels of communication to target the specific niche markets
in the target audience.
Weaknesses
Harley’s past target audience of “generation Xers” (those born post World War II between the
years of the early 1960s and early 1980s) have given Harley an oldfashioned appeal. The current
appearance of the Harley bike is historic and dated, which doesn’t appeal to younger generations. Sales
have decreased in the past 2 years for Harley by 1530% in several different age groups. Competitors
such as Suzuki and Kawasaki hold 90% of the market share in younger age groups.
Opportunities
Harley Davidson has established a legendary brand image over many years, and has maintained
a recognizable presence in the industry. They continue to be one of the most popular motorcycle
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brands in America. There are specific destinations across the country that families visit in order to
become a part of the Harley tradition. They have the opportunity to use Harley’s historic presence and
wellknown brand to focus on a new target of younger men aged 1835.
Threats
Although Harley is a household name, the high prices and dated designs threaten Harley’s
future. Foreign competitor pricing is much more reasonable to the desired target of younger men, and
have sleeker, more modern bikes to choose from. In order to overcome these threats, Harley must
maintain their iconic brand image, and make sure the consumer knows that when they purchase a
Harley, they are purchasing an Americanmade bike.
b. Target Audience Analysis
Harley Davidson’s old target market is growing older, and are losing their ability to joyride on
hogs. Forbes magazine states that the Harley’s price tag places their target audience at almost
exclusively white males over 40, a generation that is taking less and less joyrides on the loud and proud
American icon. The current median household income for the current target of males 3544 is $78,000
per year. They are educated professionals both with and without tattoos, and they have many friends
that also drive Harleys. The majority of the Harley owners in this target are part of an elite group
known as the HOGS, or Harley Owners Group.
c. Competitive analysis and expenditure.
Harley Davidson spent around $10.7 million in advertising according to the Excel sheet from
Media Flight Plan. Harley’s top spending competitors were Honda ($4.1 million), Yamaha ($5.6
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million), and Kawasaki ($1.9 million). These four brands have a trend of focusing a larger portion of
their budget on consumer magazines than other medias. Harley Davidson spent about $4 million
focusing on motorcycle classes in consumer magazines. Honda spent $1.6 million on consumer
magazines, but covered a larger variety of bike brands. Kawasaki spent $1.4 million focusing on two
specific brands, and Yamaha spent the least at $700,000 distributed between two of their four classes.
Harley Davidson’s cable television expenditures were $2.7 million a year, with network
television at $1.1 million per year. Competition such as Honda (spending $2.1 million on television),
Kawasaki (spending only $27,000 on television), and Yamaha (spending $3.7 million on television) are
also following a trend of how Harley Davidson divides their expenses in advertising. Honda and
Yamaha spend much of their budget on television, but Kawasaki has taken a different approach and
spent their budget on magazines and the Internet.
3. Media Objectives
a. New Target Audience
Our plan is to focus the campaign on males age 1835 residing in the southeastern portion of
the United States (Louisiana, Mississippi, Alabama, Georgia, Florida, and the Carolinas). This audience
is affluent, having grown up in a household of middle to upper class income. We are targeting those
who live in metropolitan areas, though that might not be where they grew up. The audience likely
attended or is currently attending college and either has obtained or will obtain a career to maintain his
middle to upper class status. He is willing to spend his disposable income on a motorcycle and likely
has never had one before. He is social both in his personal and professional life and builds these
networks via Facebook, Twitter, Instagram, and Pinterest. He is an avid user of smartphones, and
utilizes all of the apps associated with social media. The best way to communicate with him is via
social media or the Internet. In addition he enjoys moviesmore specifically superhero movies (Thor,
Iron Man, Captain America, Avengers, etc.) He relates his everyday mishaps and trials to those
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experienced in these movies.
Our secondary target audience is new parents, male and female, age 2535. Though this
audience spends a large amount of income on their children, their double income puts them in
purchasing power of a motorcycle. These parents have the same interests and habits as our target
audience, with the added potential of passing on the Harley tradition to their children, securing future
consumers for the brand. Their children are especially passionate about superhero movies, and will
likely react strongly to product placement and celebrity endorsements.
b. Seasonality
The new campaign for Harley Davidson will run over the course of a oneyear period. The
campaign will begin in January, 2014 and run through December. We will begin the campaign by
sending out a print mailer containing interesting and relevant information in coordination with the new
target audience about the new things happening with Harley in the upcoming year. Throughout the
year, we will have different focuses based on different holidays and seasons. A full list of executions
and times of year is below.
c. Geography
As we all know, The United States can have very severe weather changes at unpredictable
times. The campaign is focused in southern areas of the US, where the weather is consistently warmer,
but still takes into account the rest of the United States. Geographic focus is recommended to be the
southern coast (Louisiana, Mississippi, Alabama, Georgia, Florida, and the Carolinas). The warmer
weather allows for a maximum range of time that the target audience will be riding their motorcycles,
making the purchase of the bike more realistic. Supplemental executions should be implemented in
metropolitan areas of the rest of the United States.
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d. Plan Performance – Effective Reach and Frequency
In order to reach our intended target we must use the outlined media strategically and
effectively. As already stated, we would begin with a printed mailer to all target audience members, as
well as outdoor advertising (billboard, public transport, indoor malls, etc.) This awareness campaign
would run throughout the month of January. February begins with a television ad that will run on
AMC, FX, and Comedy Central. This is the time period where popular shows like The Walking Dead
and Archer are returning with new seasons from their winter break. It is an ideal opportunity to hit our
target audience.
The campaign will be more effective with a focus on frequency rather than reach, because
motorcycles are an expensive and emotional commitment, therefore a very high involvement purchase.
It is important that we hit the audience with advertisements more than once on multiple media.
Executions will follow a specifically themed pattern to ensure accurate recall in our target audience.
e. Scheduling Objectives – Flighting, Pulsing, or Continuity
In order to achieve the desired results for the objectives set, this campaign will focus heavily on
continuity. The campaign will begin in January for multiple reasons. The audience is more likely to
spend time with indoor media (television, our winter focus) at this point, and January is the precursor to
tax season. Because our audience is more affluent, they can expect a tax return in the month of March.
Beginning advertising a few months beforehand will ensure Harley’s place in the consumer’s mind
when they receive their tax returns.
In the spring, the campaign will hit the audience with the idea that summer is right around the
corner, and the weather is perfect to hit the dusty roads in a brand new Harley. The campaign will be
broken down into four parts based on seasonality. Quarter 1 (January, February, and March) will see
the roll out of billboards, direct mail pieces, social media, and TV spots. Quarter 2 ( April, May, and
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June) will hit hard with print ads, TV spots, radio ads, social media, and event marketing. Quarter 3
(July, August, and September) will focus on event marketing and seasonal executions with Halloween,
print, TV, radio, and social media. Quarter 4 (October, November, and December) will pull back most
of our executions besides a holiday promotion and social media.
4. The Media Strategy
a. Media mix and vehicle selection
We will use a mix of different advertising channels to send our message to the new target
audience. We will use traditional media such as print, television, radio, and flyers. In addition, we will
use other new and highly effective media such as OOH, guerilla, and a heavy focus on social media.
Below is the list of different media vehicles we wish to pursue for this campaign.
1) Direct Mail Piece: Include QR code.
2) OOH and guerilla billboards.
3) TV Spot: The Evolution of the Harley, or “Backwards Evolution.” Starts off with grandpa
on a classic Harley bike, then a visualization of Harley goes backwards, finishing with young male on
bike in modern, business casual dress. He unbuttons his dress shirt to show underneath, hidden tattoos
and leather vest. Television/radio ads and hashtag #HarleyHero (@HarleyDavidson). To be shown on
FX, AMC, and Comedy Central.
4) Harley App: Highly customizable, focus on apparel (“Show us your best superhero pose!”)
5) Foursquare App: Discounts or some incentive for those that check in. (“Check into the
Harley store 5 times, become a Harley Hero! Get 10% off of your next apparel purchase.”)
6) YouTube videos, 23 times a month all year long. Can focus on event recaps, user feedback
(“Post your video of how you learned to ride your Harley!” ; “My first road trip: the little guys/gals first
Harley ride. This is your Harley family.”)
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7) Event Marketing: Heavy incorporation of social media hype.
Include learning courses: how to ride, purchasing your motorcycle license.
Spring Break Rally: “Come to the Spring Break Rally in your Harley, and win a piece
of Harley apparel!”
4th of July: American bike for the American holiday.
8) Cross Marketing: Harley and new superhero movie releases (Thor, Avengers, Hulk, Iron
Man, Captain America.) Include big, impactful, guerilla pointofsale installations in theatres, such as
cardboard cutouts of superheroes on the Harley (Pose and post to the Harley Facebook page or on
Twitter with #RideWithAHero for a chance to win movie tickets). The POS will be up in advance of
the movie, so that winners have plenty of time to post their photo and win.
10) Print ad in men’s magazines (GQ, Men’s Journal, and Men’s Fitness) to run from
MarchMay and OctoberNovember. Back cover or other prominent position in magazine.
11) Social media execution throughout campaign with seasonality in mind. (“Show us you and
your Harley costume!”) If you’re dressed up as a superhero tell us your superhero name, power, and
back story (Halloween).
12) Throwback Thursday: Find pictures of your parents/grandparents on their bike’s, recreate
them with your bike. Use Facebook and Twitter hashtag: #TBTHarley.
13) For secondary audience: Pair up with Toys R Us, Hot Wheels, or other toy company to
create Harley toys (Pink/orange/black and orange/black)
14) Toy Drive with Toys For Tots in December with selfies posted to Instagram and Twitter.
b. Attainment of media objectives.
The overall goal of the campaign is to increase awareness of Harley Davidson to a younger
generation. Another goal of this campaign is to increase sales 4% quarter over quarter for the next
year in the specified age group of 1835 for a total of 16% over a full year. Finally, the last goal of the
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campaign will be to update the brand image while still focusing on the history of Harley and what they
stand for. In order to appeal to a younger target, Harley must rebrand themselves as the sleek, modern,
and affordable bike that the target audience is looking for.
c. CPMs and GRPs by medium.
Medium Cost Per Thousand GRP’s
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Appendices
a. Monthly spending and media distribution.
January: Direct mail piece, TV/radio, social media and Youtube
February: TV/radio, Social media and Youtube [heavy: introduce app]
March: TV/radio, Magazine ads, Social media and Youtube [heavy]
April: Magazine ads, Social media and Youtube [heavy],
May: Magazine ads, Spring Break rally, Social media and Youtube, OOH
June: Social media and Youtube, movie cross marketing,
July: 4th of July event, Social media and Youtube, movie cross marketing, OOH
August: Social media and Youtube, movie cross marketing,
September: Magazine ads, Social media and Youtube
October: Magazine ads, Social media and Youtube
November: Magazine ads, Social media and Youtube, begin Toys R Us collaboration
December: Social media and Youtube, Toy Drive event, local radio, OOH
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Fig. 2.4, Harley Davidson revenue (Forbes magazine)
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