Harley Davidsen Brand Management Mba Case Study Essay Example

the customers is the fact that the top management attends and participates in many of the HOG events. They are motorcycle enthusiasts themselves and take part in many of the events organized, either as a part of the management or as customers. This ‘pressing of the flesh’ allows management to better understand the motivations and needs of the Harley consumer.

H.O.G. Strategy and Performance HOG has been phenomenally successful at attracting members and chapters throughout the world. Since its inception in 1983 it has grown to half a million members in 1999. This is the core of Harley-Davidson's market, with the Hog Tales magazine as the primary communication tool to reach these avid owners.

This is particularly important for Harley-Davidson given that its customers are so varied making it hard to reach them through traditional marketing methods. HOG overcomes the wide differences in its membership by focusing on their common passion, motorcycle riding. HOG builds brand community and dispels the image of Harley owners as Hell's Angels gangs, as the majority if new owners are middle to upper class, with also increasing ownership by women. Retaining Harley owners is also financially beneficial, as Harley estimates that active HOG members spend an extra $1,000 a year with the company. Maximizing H.O.G and The Posse Ride.

Given that HOG serves to retain and reach customers by building a brand community, the Posse Rides serve to create a brand within the brand. Building on this are the Posse Oath and a prized Posse t-shirt, unique brand elements that create a sense of community. As an example, Lisa Laundry describes Harley as "a mystique, a lifestyle

as opposed to a brand." This kind of awe is mixed with a cultist sense of community and Americana, as the Posse Rides focuses on the hard-core rider - allowing these individuals to differentiate themselves from the larger group of Harley owners. The first Posse Ride was a big success, giving participants bragging rights that they promptly exercised on return to their HOG chapters.

No doubt that The Posse Rides are an important part of the HOG annual events calendar. From a marketing perspective they provide a unique advertisement, in the form of a two-mile long rolling billboard for Harley. Seeing a diverse group of riders - old and young, male and female – the Posse Riders project an open, inclusive image for Harley. While the visual promotional effect of the Posse Rides should be exploited as much as possible, commercializing them should be avoided.

The Posse participants are Harley's best customers and this event should be an opportunity to reward them, not exploit them. The indirect benefits, such as building brand awareness and loyalty, are much more important than short-term sales. Given the wide differences in income, raising prices and/or offering special amenities for additional costs, will simply drive off working class participants that blow their annual wad on one rally. This would change the nature of the Posse from an open, inclusive group to a rich, closed one. The Posse Rides should also continue to maintain their exclusivity. If everyone can get a Posse T-shirt because of merchandising they will not be worth having to real Posse Riders. Keeping the number of participants small also adds to the feeling of exclusivity,

as well as only having a Posse Rides no more than once a year. This should also help to maintain a feeling of spontaneity that is missing from regional HOG events.

Next Steps/Recommendations to Maximize Effectiveness and Profitability Given that we believe that The Posse Ride should continue, we feel there are several things that HOG can do to improve the overall effectiveness and profitability of this and other events.

These include:

1.Better coordination with dealerships on the route. Since the Posse Ride provides a great opportunity for ‘free advertising’ there should be a coordinated marketing and public relations communications with the local dealerships along the route. It should encourage and partly subsidize dealership communications, advertisements, and local events to expand on the phenomenon of the Posse Ride. Coordination with local TV/radio should be used to raise awareness. The dealer network could also be used by the Posse Rides to solve logistical problems and help with hospitality for the riders. Given that Posse Rides have different routes, care should be taken to determine routes that will include all dealers over a 5-year period.

2.Special recognition for repeat participants. To continue to create positive associations with HOG create a rewards program for repeat riders. This could be a custom jacket, where the rider could earn stripes or pins for each event, and a special patch for The Posse Ride.

3.Offer women-only rides. With the increase in female ridership provide women-only rides to promote Harley ownership as something not just for men. This would not only create a unique association for the female riders, but also provide an advertising opportunity to reach

out to an untapped female market.

4.Recognize Posse Riders at regional events. Since participating in The Posse is an exclusive ‘rite of passage’ these participants should be recognized at regional events/rallies. This would provide other Harley riders a chance to visit with these individuals in small groups and/or one-on-one, and increase the attractiveness of wanting to participate in a future Posse Ride.