Download - Harley Presentation v3
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M740 CORPORATE REPUTATION AND BRAND MANAGEMENT
Building Brand Community on the Harley-Davidson Posse Ride
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Agenda 2
• Executive Summary • Background • Key Issue • Analysis
• Company • SWOT • Brand Identity • Customer • Quantitative
• Alternatives • Assessment Matrix • Recommendations
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Executive Summary 3
Should the Posse Ride rolling rally continue? If yes, how do we maximize its effectiveness?
Customers are generally satisfied and the ride continues to be a profitable driver of brand
awareness.
Improve existing Posse ride by solving common complaints and integrating rider feedback.
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Background 4
! Harley Owners Group (H.O.G.) ! Division of the Harley Davidson Motor
Company formed in 1983 to bring the company closer to its customers
Rolling Rallies " Unique, themed rides that
start and end in different cities
1983
33,000
1999...
500,000 Membership
Destination Rallies " Extremely labour
intensive
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Background
" High adventure, low cost ride
" Started in 1997
" Sequel to the “epic adventure” " Border-to-border run " Many repeaters from the Posse
I ride " Capped at 500 but only 425
registered " Passport stamps along route
stops at dealerships " Large rider investment of both
time and money
5
Posse I Posse II
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Key Issue Facing H.O.G. 6
Problem Statement: Does the Posse Ride rolling rally continue to meet corporate marketing objectives? Evaluate 3 key elements:
1) Brand connection
2) Profitability of the rides 3) Overall satisfaction of the ridership
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Company Analysis 7
Current Brand Vision “We fulfill dreams of personal freedom.”
Capabilities Delivering high quality to retain
customers for life
Strengths • Attracting new riders • Optimizing the retail chain • Championing retail
excellence
Harley Davidson Core Values
Teamwork Accountability
Knowledge Innovation
Honesty Initiative
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SWOT Analysis – Posse Rides
STRENGTHS
- Consistently high interest in ride
- Strong brand recognition
- High customer loyalty
- Rides are low cost and highly profitable
WEAKNESSES
- Unorganized ride planning
- Ride is only feasible for a small percentage of H.O.G. members
- Impossible to develop a single event that will satisfy everyone’s needs
OPPORTUNITES
- ‘Baby-boomer’ retirees could lead to increased membership
- Many different types/routes of rides available to maintain interest
THREATS
- Adverse weather could affect ride route
- Weak economy could reduce sales and ride revenue
- Negative connotation with Harley subculture
8
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Brand Identity Analysis – H.O.G. 9
“Our service features an enhanced riding
experience for Harley owners who seek
challenging rides and desire a sense of camaraderie.”
The H.O.G. Scope • Division of HD Inc.,
supported by local, national, and international levels
• Open to all HD owners • Close-to-the-customer
philosophy
Service Attributes • Develop social ties • Local chapter newsletters • Local values, but H.O.G. ethos • Ownership benefits e.g. Fly & Ride program • Rallies – linking riders together into a broader community
Quality • Customer satisfaction
high (3.7 on a 4-pt scale)
• Demand exceeds supply
• Strong brand loyalty
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H.O.G. Members - Defined 10
The typical customer for H.O.G. is ________ with an average age of ____, and a median household income of ________. They typically hold jobs in the _________________________ fields. Our typical customer is influenced by__________________. They are motivated by the need to ___________________________________. The following needs are not currently being met:___________________________________.
male 41
$55,570 technical and entrepreneurial
other Harley owners experience the freedom of the open road
engagement and connection with Harley
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“A stroll among the riders at a rolling rally reveals a good deal of gray hair and relative affluence”
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Value Add of H.O.G. 12
$465 million
500,000 members - $40 annual membership fee (1st year complimentary)
167,000 active members – spending $850 more annually
75% renewal rate for H.O.G membership
$2,630 Active Member
$80 Inactive Member
Assuming an average membership of 3 years
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Customer Response 13
Pre- and post-ride surveys were analyzed using a modified Net Promoter Score (7 point scale).
The results were broken down by: " Lifestyle experience " Brand connection " Intention to repurchase
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Lifestyle Experience 14
I would definitely sign up for another long distance rally
↑17%
I have made lifelong friends because of Harley
↑18%
I would recommend this ride to a friend
↑34%
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Brand Connection 15
Harley really understands what riding a bike is about
↓36%
I am satisfied with H.O.G. ↓38%
Harley really understands my needs
↓46%
Harley really cares about me as a customer
↓19%
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Intention to Repurchase 16
Pre-Ride Survey If I were to replace my bike, I'd buy
another Harley.
Bottom 2 Middle 4 Top 2
Pre-ride NPS 82%
Post-ride NPS
100%
↑18%
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Alternatives 17
1. Maintain the status quo ¤ Riders are generally happy with the existing ride, but
what about their concerns?
2. Improve existing ride ¤ Concerns could be addressed and the experience
made better, but is it worth the additional cost?
3. Cancel ride altogether ¤ It would free up resources for other opportunities, but
would it let riders down?
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Assessment Matrix 18
Alternatives & Ranking
Criteria Weight Improve Status Quo Cancel
Brand Connec+on .50 3 2 1
Profitability .40 2 3 1
Rider Sa+sfac+on .10 3 2 1
Total 1.0 2.60 2.40 1.00
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Recommendations 19
Planning " Up to one year before ride
Create contest or survey to involve H.O.G. members in future route selection
Select a group of H.O.G. members to act as an advisory board for possible events
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Recommendations 20
Execution " Ride registration to completion
Assigned registration times to avoid long lineups
Have dealers ship riders’ purchases to head office to eliminate the need to carry
Invite non-participating H.O.G. members to host events along the ride route
Designated meet-and-greet with Harley employees
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Recommendations 21
Post-Ride " Evaluation and follow-up
Further Posse ride merchandising such as videos, yearbooks, and postcards
Discount card for members in order to track purchase patterns
Conduct post-ride survey with Posse ride participants to evaluate improvement
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22
Discussion Questions?
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Return on Posse II 23
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
75% 85% 95% 100%
Average Profit Margin
is 34.7%*
*http://investor.harley-davidson.com
Retention Rate of Posse II Riders
Add
ition
al H
.O.G
.