Abstract

This case is about the customer-led marketing strategy of US-based iconic motorcycle maker Harley-Davidson Inc. (Harley). Harley was the world’s leading designer and manufacturer of heavyweight motorcycles with over a 50% market share. Harley bikes were known for their distinctive design and heavy customization. The company created an experience around their bikes that emphasized freedom and empowerment. The case discusses the evolution of Harley as a cult brand. By adopting a focused differentiation strategy, Harley was able to command a premium for its products. The case highlights the key problems faced by the company which include plummeting sales due to the global economic recession and the changing demographics of its purchasers. The median age of a Harley rider, which had been 35 years in 1987, went up to 47 in 2005 as the majority of Harley’s core customers, the baby boomers, were aging. Due to shifting demographics, the company adopted a multi-generational and multi-cultural marketing strategy and decided to change its marketing approach from a “one size fits all” agency-based marketing approach to a customer-led model. The case discusses the company’s shift from a traditional model to crowdsourcing wherein it could draw on the ideas of Harley fans around the world to guide the direction of marketing for the brand. It discusses the ‘Creativity Model’ and the crowdsourced advertising campaigns launched by the company as part of the new strategy. The case concludes by discussing whether the new customer-led marketing approach will be able to solve the company’s problems related to the demographic shift and revive the cult brand.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the marketing strategy of Harley-Davidson.
• Study how Harley-Davidson emerged as a cult brand.
• Understand the impact of changing demographics on the company’s business.
• Understand the issues and challenges faced by a brand in attracting new customers.
• Explore the future strategies Harley could adopt to attract new customers.

Keywords

Customer-led marketing, "one size fits all" agency-based marketing, customer-led model, Crowdsourcing, 'Creativity Model', Cult brand, Demographics, Brand loyalty, differentiation, Focused differentiation, brand dilution, Unique selling proposition, Lifestyle, Brand image, Community, Multi-generational and multi-cultural marketing strategy, Harley Owners Group (HOG), Harley-Davidson, 'Fan Machine', 'No Cages' campaign, Focus group