Building Brand Community on the

Harley-Davidson Posse Ride

M740 CORPORATE REPUTATION AND BRAND MANAGEMENT

Agenda
2

Executive Summary
Background
Key Issue
Analysis
Company
SWOT
Brand Identity
Customer
Quantitative

Alternatives
Assessment Matrix
Recommendations

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.

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
1983
33,000

Destination Rallies
" Extremely labour
intensive

Membership

1999...
500,000

Rolling Rallies
" Unique, themed rides that
start and end in different
cities

Background
5

Posse II

Posse I

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

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

Company Analysis
7

Current Brand Vision

We fulfill dreams of personal freedom.

Strengths
Attracting new riders
Optimizing the retail chain
Championing retail
excellence

Harley Davidson
Core Values
Teamwork

Accountability

Knowledge

Innovation

Honesty

Initiative

Capabilities
Delivering high quality to retain
customers for life

SWOT Analysis Posse Rides

8

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 everyones 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

Brand Identity Analysis H.O.G.

9

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

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

Quality
Our service features
an enhanced riding
experience for Harley
owners who seek
challenging rides and
desire a sense of
camaraderie.

Customer satisfaction
high (3.7 on a 4-pt
scale)
Demand exceeds
supply
Strong brand loyalty

H.O.G. Members - Defined

10

male
The typical customer for H.O.G. is ________
with an
41 and a median household income
average age of ____,
$55,570 They typically hold jobs in the
of ________.
technical
and entrepreneurial fields.
_________________________
Our typical customer is influenced
other Harley owners They are motivated by the
by__________________.
experience the freedom of the open road
need to ___________________________________.
The following needs are not currently being
engagement and connection with Harley
met:___________________________________.

A stroll among the riders at a rolling rally reveals

a good deal of gray hair and relative affluence

Value Add of H.O.G.

12

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

$465
million

$80
Inactive Member

Assuming an average membership of 3 years

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

Lifestyle Experience
14

I have made lifelong friends

because of Harley
18%
I would recommend this
ride to a friend
34%
I would definitely sign up for
another long distance rally
17%

Brand Connection
15

Harley really understands what

riding a bike is about
Harley really
cares about me
as a customer

36%

Harley really
understands my needs
46%

19%
I am satisfied with H.O.G.
38%

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%

Alternatives
17

1.

Maintain the status quo

2.

Improve existing ride

3.

Riders are generally happy with the existing ride, but

what about their concerns?
Concerns could be addressed and the experience
made better, but is it worth the additional cost?

Cancel ride altogether

It would free up resources for other opportunities, but

would it let riders down?

Assessment Matrix
18

Alternatives & Ranking

Criteria

Weight

Improve

Status Quo

Cancel

Brand Connec+on

.50

Protability

.40

Rider Sa+sfac+on

.10

Total

1.0

2.60

2.40

1.00

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

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

Recommendations
21

Post-Ride
" Evaluation and follow-up

Conduct post-ride survey with Posse ride

participants to evaluate improvement
Further Posse ride merchandising such as
videos, yearbooks, and postcards
Discount card for members in order to track
purchase patterns

Discussion Questions?
22

Return on Posse II
23

$400,000
$350,000

Average
Profit Margin
is 34.7%*

Additional H.O.G.

$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
75%

85%

95%

Retention Rate of Posse II Riders

*http://investor.harley-davidson.com

100%