report_social media relationship quality: the case of harley davison, honda and ducati

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    GROUP PROJECT

    Social media relationship quality of three brands of the motorcycle industry:Harley

    Davidson, Honda and Ducati.

    Fall semester 2013

    GROUP N3

    Fidan Akhundzada

    Gabriele Bernasconi

    Jessica Caccia

    Roberto Degraria

    Uchenna Egbete

    De Jie

    Alessandra Maffioli

    Elena Salviato

    Kavya Stephen

    Giada Tironi

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    ABSTRACT

    This report provides findings and analysis of the social media branding activities of three motorcycle brands

    Harley Davidson, Honda and the Ducati. The evaluation is made focusing on the brands ability to build a

    relationship with their audiences, as well as the quality of their interactions in different social media platforms. The

    instrument applied was the seven items brand relationship index.

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    INDEX

    INTRODUCTION""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" #

    METHODOLOGY""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" $

    ANALYSIS""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" %

    Harley Davidson """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" #

    Ducati """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" $%

    Honda """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" $&

    CONCLUSIONS""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" &'

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    INTRODUCTION

    Ducati, Harley Davidson and Honda are

    three famous brands belonging to the

    motorcycle industry. Each of these brandshas a strong market presence, with a brand

    value of respectively $1.32 million 1 , $4.23

    million and $18.49 million 2 , evidences that

    they succeeded in creating value for

    consumers.

    Nowadays, the most effective competitive advantage form relies in the intangible resources, which are brand

    relationships, brand differentiation and knowledge and allow firms to focus more and better on the consumer.

    Companies should be able to create these intangible resources through the digital. In other words, in order to

    compete in this new digital world, companies have to be able to leverage on the linking values of their brands.Social media have become something vital for firms, because help them to co create value with consumers.

    Firms have to keep in mind that their presence on the social world isnt enough: they have to be able to establish

    interactions with consumers, a shared meaning around the brand.

    1Source: www.rankingthebrands.com2Source : www.interbrand.com

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    METHODOLOGY

    The aim of this report is to evaluate the social media branding of three different brands (Ducati, Honda and Harley

    Davidson) through a seven-step analysis.

    The methodology use is the following:

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    ANALYSIS

    Harley Davidson

    1. Social presence: 10HD is known to have one of the most active social media programs of any major brand. The brand is present in many platforms

    that we considered important and relevant, that is on Facebook, Twitter, YouTube, Flickr, Instagram, LinkedIn, Pinterest and

    Google +; anyway, this report will focus on 3 main social networks,

    that is on Facebook, twitter and YouTube. Harley Davidson has

    literally created a community around the social networks, taking the

    customer at the core of the interactions: its not only about increase

    brand awareness, its all about creating a community which allows

    users to experience the brand digitally. HD put an equal presence

    effort in every social network, showing its engagement in the attempt

    to involve every kind of users (targets).

    2. Dialog / user engagement management: 10Harley Davidson adopts social media in order to engage users in many ways: for example, on Facebook and twitter, it shares

    pictures of special HDs events, quiz to test a users brand knowledge, familiarity and loyalty, and videos of brand users

    communities. All the content it publishes help to create common meanings around the brand, deliver its brand values and

    develop a mere special Harleys lifestyle.

    Also YouTube is used a lot from users: its possible to find any kind of video regarding the brand, from a typical

    ride to concerts, charity events and stunts with ah Harley motorcycle. All these video are shared on other social

    networks and commented from a huge number of users (till 2 million views).

    On Twitter, HD has 161.395 followers, 1006 followed and 5873 tweets; on Facebook it has 4.996.358 likes and

    151.047 people talking about HD, with a rate of engagement equal to 3%. On Twitter, people use several times

    hashtags. The engagement on Tweeter is therefore also high: according to hashtracking.com, 249 tweets with

    #Harleydavidson were created by users, reaching an audience of 405.711 followers in 36 hours.

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    All these information are sum up in the following image3:

    YouTube (with 51.995 followers) is also an important tool for creating engagement. Through this platform, HD

    shares those content that permits to create the typical freedom and machismo values.

    3. Sentiment / advocacy management: 9.5Harleys Davidsons strategy on social media is very clear and its main objectives are to solidify the existing

    communities and engage other Harleys fans to join this lifestyle. The final goal is to increase sales of motorcycle

    and related accessories. Strategies used on Facebook and Twitter are:

    ! Post pictures and video that appeal emotionally. Through this kind of content, HD is able to transmit itsfreedom and machismo values to the users, reinforcing the engagement and convincing other people to

    enter into the brand community.

    ! The engagement is also obtained by asking questions (through quiz and other asking forms) in such a wayto make people feel an important part of the brand.

    ! Crating weekly - monthly topics (for example HD fan machine), which allow people to talk about theirHarleys experiences. This activity helps HD to understand how people experience the brand and how the

    communities are formed (and respectively, the sense of belonging).

    Its important to underline the fact that the majority of comments (in every kind of platform) are positive.

    Evidences show clearly that Harley Davidson is a Lovermark, because the brand receives both respect and love

    from consumers.

    From the analysis of the first 50 comments on both Facebook and Twitter, it can be assessed that there is a high

    tendency of positive comments (approximately, FB: 78%, Twitter: 80%), while the negative ones are quiet low

    (approximately, FB: 18%, Twitter: 17%). We can clearly observe that in both the platforms the positive and

    negative comments have similar tendency: in other words, there is consistency in users comments.

    3Contributorsare all the people who tweet with a particular hashtag. Everyone who tweets or re-tweets a message with a particular hashtag is counted as a

    contributor.

    Timeline deliveriesrepresent the total possible number of times someone could have viewed a particular message. We use the follower count of the original

    tweeter and add the followers of any re-tweeters to generate the total number of timeline deliveries for each and every hashtagged tweet.Reachis the number of unique individuals who received timeline deliveries* of hashtagged messages. Because the same users may receive multiple timeline

    deliveries, measuring reach as well as deliveries allows you to better understand the true spread of your message.

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    Another efficient way to evaluate Harley Davidsons sentiment is using a special

    research tool called socialmention.com. From a key research, using as a key word

    Harley Davidson, we obtained the following results: 39% of strength, that is the

    likelihood that your brand has been discussed on social media; 29:1 of sentiment, that is

    the ration of mentions that are generally positive to those that are generally negative;

    22% passion, that is the measure of the likelihood that individuals talking about your

    brand will do so repeatedly; and finally 57% of reach, that is a measure of the range of

    influence.

    4. Support/value: 8

    The brand offers content regarding their products (e.g.

    information on new launches and presentations

    events) but HD is more active in engage communityrather than asking for improvement or complaining.

    Despite this lack we can say that HD is always willing to answer customers questions about problems or products

    development with a high customer care attention. HD asks users opinions about new products and innovation. An

    example is this tweet on twitter:

    HD then receives answers from which they can understand customers preferences and thoughts about new

    launches.

    5. Innovation: 9Although HD is focused on creating a strong sense of community, its first goal is to make feel every costumer

    unique. Thats why they give the possibility to their clients to create exclusive pieces for their one-off trips and

    experiences. They are the co-producer of the product.

    Come Together is not merely a song in our spot its an anthem for our relationship whit our fans. They are the

    heart of everything we do. No one is more emotionally vested in Harley-Davidson than our fans. Thats why we

    turn to them. These words from Mark-Hans Richer, HD Senior Vice President and Chief Marketing Officer

    perfectly explain the value that customer represent for HD.

    Furthermore this year HD used insights gathered by the brand during thousands of rides and personal

    interactions with customers to deliver never-before-seen motorcycling enhancements, such as the first original

    equipment voice recognition and touchscreen for music, GPS navigation and on-motorcycle phone4.

    6. Harley Davidson online leadership: 9Harley Davidson leadership on Web 2.0 is very strong due to its level of brand image and to the large and devoted

    community around this brand. There are many virtual clubs, blogs and forums by Harley Davidson to keep every

    consumer connected to the Harley Davidson family. HD plays a guiding role on social media platforms, strongly

    involving customers which remain at the core of HD activities, and always allowing them to comment and

    enhance any discussion on the subject of interest, but never participating directly to the debate.

    4Source: www.harley-davdison.com

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    There are plenty of unofficial blogs and forums around the

    community even though you can apply on the official website

    inserting your profile to become a member of the Harley

    Owners Community (hog.com).

    7. Linking value community: 10

    This is the latest post of HD on FB wall. HD is very active in engage customer in all the promotions activities. HD

    always answers to users, this is an example: We're glad you were a part of it as well; we fixed your name within

    the image and now reads John D.P. Thanks again for sharing!

    HD always posts pictures and engage interaction by asking: Do you have better pictures? Please post them here.

    The most published posts by HD and its fans are photos showing people in the road with their motorbike

    surrounded by amazing landscape from all over the world.

    Everything is related to travels and membership to the brand, HD emphasizes the sense of community and users

    are more active in participating to the wide variety of communication campaign. All campaigns are linked together

    towards all social media platforms.

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    Ducati

    1. Social presence: 10After making some research according to the social presence level of Ducati it is possible to reveal that the brand

    is a leading international e-commerce player. Social media is the most important tool for the brand`s promotion.

    The brand is presented in most popular social networks such as Facebook, Twitter, Youtube and Instagram.

    Moreover, the company has had its own web page www.ducati.com since 2000.

    According to the Global Social Media Chart made by Starcount group in 2013,

    which identified the most popular Global stars of social media, among 285,002

    brands Ducati is No.7282 for its popularity in social media.

    Moreover in Automotive Brands Chart made by Starcount group Ducati is No 88

    among other 200 automotive brands due to its activeness in social media.

    Furthermore Ducati gathers its fans in its Own Social Network with 160,000

    registered users. Ducati North America launched a new social media site for fans of

    the Italian manufacturer. The new Ducati Community site lets Ducati fans share

    pictures, videos and text while connecting with Twitter, Facebook and other social

    media networks. Ducati after launching it for North American audience is going to

    expand to connect Ducati fans around the world. Ducati Community will also offer

    official Ducati news about events, promotions and model upgrading.

    In 2011 Ducati launched a new iPhone app for fans to follow the Ducati Moto GP team. The new Ducati Corse

    app provides news and information straight from the Moto GP factory located in Bologna, Italy. The app offers

    race updates, results and championship standings, profiles on Ducati riders Valentino Rossi and Nicky Hayden,

    data on the Desmosedici GP11, an extensive gallery of photographs and additional Ducati-related news. The

    Ducati Corse app is available for free at the Apple.

    2. Dialog/user engagement management: 105 Strong social presence of the brand lead to huge

    numbers of followers in different social networks.

    From the table below it is revealed that an aggregate

    number of followers for most known networks such as

    Facebook, Twitter and Instangram is around 150

    millions. Ducati`s videos was watched 19,813.315

    times up to 25th November , 2013.The highest number

    of followers is on Facebook with 1,670,353 fans,

    whereas the lowest number, in comparison with these tree networks,is on Istagram (25,445 fans).

    Morover, we can assess that the rate of engagement on Facebook is of

    the 1.14%.

    $ Table Source: SocialBakers` team; 25 Novermber 2013

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    In respect to Twittter we can assess that up tp 25th of Novermber 2013 the number

    of followers were around 122,000. From the chart below we can indicate an

    increase in number of followers of Ducati on Twitter.

    The main point of the company`s succes is considered its special strategy toward

    its

    cusotmer

    s. Ducati

    is a

    company that has replaced the words

    marketing and customer with the

    words community and fan. Ducati`s

    community of fans is considered to be

    as a major asset of the company. Ducatienhances the fan experience through

    social networks. It involves fans on a

    systematic basis to reinforce the places, the events, and the people that express the Ducati life style and Ducatis

    desired brand image. Company uses specific way to enhance and reward customer engagement. For instance, the

    company has created a competition called Design Your Dream Ducati, where fans are challenged to interpret

    any form of their Dream Ducati, by offering artistic as well as technical ideas. A team that includes the CEO, the

    chief manager of the Design Department and the Creative Director, selects the best ideas.

    3. Sentiment / advocacy management: 9Ducati uses social networks to support customer loyalty, at the front-end as well as at the back-end stages to its

    product development process. Furthermore on social media its objective is to encourage word of mouth, raise

    brand visibility and strengthen brand values. We can underline five main keys of Ducati`s social media strategy:

    Encourage exclusive fans with videos, images, events Solicit content from followers and share pictures from the

    community

    Don not post too much, stay in a `golden middle`

    Listen to your networks beyond Facebook, Twitter Respond on time

    In order to analyze the positive/ negative opinions of followers about the

    brand, there were taken one page of Ducati with 143,350 people, who liked the page and analyzed 100 comments

    of followers about the brand. In that case there was revealed that 87% of followers have commented positively,

    only 9% of comments has contained negative attitude, and 4% of comments was neutral. In the graph it is

    represented the analysis on Ducati Facebook page on 100 comments of followers, 20thof November, 2013.

    As we have done for Harley Davidsons analysis, we can evaluate Ducatis sentiment is using socialmention.com.

    From a key research, using as a key word Ducati, we obtained the following results: 33% of strength, 75:1 of

    sentiment, 25% passion, and finally 51% of reach.

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    From an overall perspective, taking into account different social networks (brand`s blog, page of the brand`s

    community, official webpage, Facebook, Twitter) it can be revealed that peoples` response about Ducati is

    positive. From the comments it is understandable that there is huge customer loyalty and good interaction

    between the producer and customer.

    4. Support/value: 9As it was mentioned before, the brand is active on the main social networks such as Facebook, Twitter, Instagram,

    Youtube and Flickr, and it offers a wide range of services through them to its customers; it answers to questions,

    it asks for reviews, it posts videos about performance and races and many pictures as well. The owners of its

    products are able to post significant pictures that cement the brands

    loyalty and group identity, and that can create a network of brands

    lovers. Ducati is able to keep its followers always updated with the

    latest news about actual and future products, and in general on

    everything they may be interested in; that is particularly appreciated,

    since taking a look at customers ratings on Facebook we could see a

    majority of 5/5 stars given to the brand.

    In fact it offers an accurate customer service and the chance to

    interact directly with the company through a call center and via e-mail,

    and it sends feedbacks afterwards, which is important to keep loyal

    people who are willing to pay a premium price for these products but

    who require also a great service and customer support.

    5. Innovation: 8In the innovation process, which is based on co-creation, involvement and collaboration, Ducati tries to provide

    many brand-user touch points. The brand offers the opportunity to develop a Ducati licensed product or service,

    and it allows to apply directly for a job, hiring so not only the best and most motivated minds, but also brands

    enthusiasts. Ducati allows people to open official sales point/garages or even restaurants, it helps students

    providing information for their theses and offering internships.

    There are several DOCs (Desmo Owners Clubs) formed by owners of Ducati bikes which increase the feeling of

    belongingness and ownership, and which definitely increase the loyalty towards the brand.

    On 19th of July 2012 Ducati was purchased by Automobili Lamborghini S.p.A, and the totality of the voting rightswere acquired by Audi AG.In this way the Italian brand has had the chance to get new funds to invest in R&D and

    to improve the performance of its bikes, and to strengthen its brand as well as financial solidity, thanks to the well

    established reputation of Volkswagen AG, which owns Audi AG.There will be for sure a close collaboration

    between these brands to offer high performance bikes to the niche Ducati targets or even to target new

    segments.

    6. Leadership: 7Brand stories are appreciate and shared by people in social media; they also discuss and add personal experiences

    and opinions about them. In particular Ducati select these brand stories posted in its site and shared them on

    Facebook and Twitter. However the brand doesnt actively participate to conversations, it just shared new post.

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    Often links are connected to Ducati site but also to the

    other social network platform especially Twitter and You

    Tube, furthermore there are also linked to other site like

    Motociclismo, a specialized paper of motorbikes.

    The brand communication is perceived by most people to

    be honest and transparent; however some suspect that

    Ducati deletes posts unseemly as it seems strange that

    there are few negative comments. Thus, Ducati leadership

    in the web is quite strong.

    7. Linking value community: 9

    Ducati is very active in engaging customers to its promotions activities. It shares photos, videos and events on its

    products but also about the world superbike and other competitions that see Ducati as a protagonist. It gives thepossibility to people to express their opinion and share photos about their motorbike and so on.

    Ducati organizes online events such as Ducati Air Bike Challenge in which the participants must create a video.

    The winner is rewarded and the video shared within its online community. Everything is connected to the high-

    performance motorcycles, to the image of brand in the world and to sport competitions. People feel a member of

    the community because they share the same spirit of Ducati. With Ducati they feel powerful. In this way users are

    very active in participating to the wide variety of communication campaign.

    In this sense the brand is a strong social connector between the owners of products and who is simply attract by

    this world. Furthermore the promotion campaigns are linked together towards all social media platforms

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    Honda

    1. Social Presence: 7

    Honda Motorcycles has a pretty good presence on the web. They use

    the Internet to interact with their customers and increase brand

    awareness. They use Facebook, Twitter, YouTube Intagram and

    Pinterest in order to advertise their new products in form of pictures

    and videos. They integrate all these three social network platforms to

    reach their customers. Although they could use Instagram and Pintrest

    as these social networking platforms are becoming more popular for

    picture and short video sharing.

    2. Dialog/user engagement management: 8

    Honda motorcycles use social media to engage users in various forms. On Facebook, they upload pictures and

    announce new products. Their level of dialog is more on Facebook as customers can be seen making requests for

    new products to reach their local stores and the company replying to these posts. Though, the companys posts

    do not attract much attention, as there are only a few comments and likes to their posts. Fans can also see in

    action how these products work before purchase as the company uses its Youtube page to upload test-drives of

    new products to attract customers. So the fans use the three channels to communicate with the brand (though it

    is very low on twitter).

    Nevertheless, there is so much space forimprovement as the level of engagement is

    still low, 14,028 talking about Honda

    Motorcycles as against 732,978 likes which

    equals 1.91%.

    This is mainly done on Facebook as it can be noted

    that they reply directly to most of their customers

    questions and request by commenting on the

    comments posted by their customers.

    On YouTube (118,178 subscribers 27,011,123 views), they include celebrities such as Nick Cannon and Maroon5in their commercials and support these celebrities on tours.

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    Videos of how the production processes of their products are also uploaded to give customers a glimpse of what

    goes-on on the inside. But the interaction between the company and the customers is very less on this platform.

    Both positive and negative examples of feedbacks are showed below:

    3.

    Sentiment/advocacy management: 7

    Honda Motorcycles strategy on social media is clear and its

    main objective is to market its products and raise brand

    visibility. The only posts seen on their Facebook page is that

    showing new products and not interactions with customers (like

    asking questions about customer experience) instead, the

    customers are the ones who share their experiences and

    products owned on the page. There is only more customer

    interaction on Twitter as customers posts complaints and thecompany replying directly.

    As we have done for Harley Davidsons and Ducatis analyses, we can evaluate Hondas

    sentiment is using socialmention.com. From a key research, using as a key word

    Honda motorcycle, we obtained the following results: 12% of strength, 40:1 of

    sentiment, 37% passion, and finally 31% of reach.

    4. Support/Value: 9

    The company offers good information to customers regarding their products (E.g. information on new products,

    production processes and information on recycling, etc.). Their social media pages only talk about the brand and

    their posts are quite repetitive. In analyzing most of their posts, it can be noted that they respond to most of fans

    comments and requests only on twitter and a few on Facebook. These responses are both to negative and

    positive comments. SO in negative posts, they try to find out what the problem the customer has.

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    5. Innovation: 7

    The innovation process includes the relationship between Honda and its customers. The users give suggestions,

    feedbacks and preferences about the different models already in the market. The interaction level between the

    users on different social medias is different. Twitter and Facebook pages have more responses to the queries of

    the consumers. This is way of directly contacting with the consumers and getting to know their tastes and

    preferences.

    6. Leadership: 6

    Brand stories are shared and appreciated by customers/fans

    on social media. Customers mainly share their personal

    experience or show-off the products that they own and some

    videos showing stunts they performed using Honda products.However, Honda does not actively participate in the

    discussions. Most atimes, links are attached to the posts

    which leads customers/fans to the company webpages.

    Therefore, the company has a strong image on the web.

    7. Linking Value/community: 8

    Even though Honda is an active member in the different social medias they also have an active participation in

    initiatives such as environmental conservation, education and traffic safety. They have activities in parts of CentralAmerica, South America, Asia, Middle East, Africa and Europe. They are a company with a global viewpoint which

    contributes for the well-being of local communities around the world through their products and technologies.

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    CONCLUSIONS

    Harley Davidson Ducati Honda

    Social media presence 10 10 7

    Dialog / User engagementmanagement

    10 10 8

    Sentiment / advocacy

    management9.5 9 7

    Support / Value 8 9 9

    Innovation 9 8 7

    Leadership 9 7 6

    Linking value / community 10 9 8

    AVERAGE 9.35 8.86 7.42

    Analyzing the subjective grades we assigned to the three motorcycle brands we chose, we can unequivocally say

    that both Harley Davidson and Ducati have been able to reach a position of Lovermark, with a wide base of loving

    customers who are loyal to the brand, who actively participate in the brands lives on the main social medias, and

    who are willing to pay a premium price to become owners of one motorcycle.

    Even if with an honest and discrete final results, we believe that Honda can do much more to involve its customers

    and get their attention; this, according to us, may be due by the fact that Ducati and Harley Davidson are mainly

    motorcycle companies and have highly characterized the brand, being worldwide know, appreciated and sought,

    whilst Honda, even if it is the largest motorcycle manufacturer in the world and builds great motorbikes, is not

    able to do that, because its a multinational not only focused on the production of motorcycles and doesnt target

    a peculiar nice like the other brands do.

    To better understand these results we calculated the

    engagement content for each brand on the main and

    with the highest amount of follors social media:

    Facebook.

    We saw that this time not only Honda cannot involve

    much the customers, but also Ducati, which posts

    interesting but often borrowed from other websites

    articles; they both have few comments and likes

    compared to the american brand, which has thousands

    of them and can always create interesting and involving discussion about several topics.

    Harley Davidson is an icon and therefore people who own one of its bikes feel part of a community and go to

    meetings eveywhere just to meet other community members , while Ducati is still a young company which

    was also recently bought by an automaker and, even if it has seen lately its sales skyrocketing, has still room for

    improvement and to establish its image and reputation all around the world.

    Honda has a good reputation and huge sales, though since it doesnt target a specific nice it cannot create as

    much passion and love as Harley Davidson can.

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    On Youtube, both the american and italian brand perform very well, with thousands of followers and hundreds of

    videos seen by millions of people; Honda as definitely less followers but certain videos have many views.

    Probably, in this case, the customers are interested in few news and they just from time to time check the channel

    and are so occasional viewers, whilst Ducati and harley Davidson seem to have more loyal customers who

    regurarly check the channel, comment and like the videos.

    On Twitterwe are along the lines of Facebook and Youtube, with many followers for the italian and american

    brand and few for the japanese one.

    To conclude, we think that both Harley Davidson and Ducati are doing a good job (which can anyway be

    improved), since they are Lovermarks and can well involve customers, while Honda, which is a public multinational

    corporation, could dramatically improve its social media strategy, also given the fact that its the largest

    motorcycle manufacturer in the world and its among the best teams in MotoGP.