Harley-Davidson: Customer-led Marketing to Revive a Cult Brand

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In early 2008, the company reported a drop in sales due to the global economic recession and its aging core customer base which basically comprised men over the age of 35. Since the early 1990s, the median age of a Harley rider had risen consistently from 38 to 47. Experts said that as the baby boomers6 , who had transformed Harley into an American icon were aging, they were less likely to ride a motorcycle. In late 2010, Harley decided to revamp its marketing efforts and adopt a multi-generational and multi-cultural marketing strategy focused on non-core customers such as young males, women, and ethnically diverse adults.

To attract and engage non-core customers with the brand, Harley adopted a consumer-led marketing approach called crowdsourcing⁷. Through crowdsourcing, Harley wanted to expand its strength as one of the most customer-centered brands in the world.

However, some analysts questioned whether this new customer-led marketing model would solve the company's problems related to demographic shift, address the issue of brand dilution, and revive the Harley-Davidson brand. Some of them contended that the crowdsourcing strategy would dilute the image of the hallowed Harley brand. They felt that having an agency of record as in the traditional model was vital for relationship building for iconic brands like Harley. According to Al Krueger, founder of Comet Branding LLC,⁸ "Agencies provide an outsider perspective. For companies like Harley-Davidson, having someone who understands its products and culture is really important. If you do everything through crowdsourcing, it's going to be a massive undertaking."

Harley was established in 1903 by William Harley and Arthur Davidson (Arthur) who built the first Harley motorcycle, a racer bike, in a small wooden shed in Milwaukee. Later Arthur's brother, Walter Davidson (Walter), joined the business. In 1906, the company built a new factory in Milwaukee and also launched its first product catalog. In 1907, William A. Davidson, brother of Arthur and Walter, joined the company. The Harley-Davidson Motor Company was incorporated on September 17, 1907. The popularity of Harley bikes rose after Walter rode a Harley motorcycle to victory in a 1908 race ⁹. In 1909, Harley developed its first V-twin powered motorcycle.¹⁰ The V-twin engine gave Harley motorcycles an aggressive appearance of raw power. Harley bikes had a characteristic design and were known for heavy customization that gave rise to the chopper style of motorcycle. By 1910, Harley had sold 3,200 motorcycles and its dealer network had grown to over 200 in the US. The company introduced its popular 'Bar & Shield' logo in 1910. To promote its bikes, Harley published advertisements in American expert magazines like Bicycling World, Motorcycle Illustrated, Motorcyclist, and The Western Bicyclist...

Excerpts - Next Page >>

6] In the US, the term Baby Boomer is used to describe a generation of individuals born between 1946 and 1964.
7] Crowdsourcing refers to the process of outsourcing of activities to an online community through an open call.
8] Comet Branding LLC is a Milwaukee-based social branding and public relations agency.
9] In 1908, Walter Davidson won the 7th Annual Federation of American Motorcyclists Endurance and Reliability Contest with a perfect score of 1,000 points.
10] The V-twin engine derived its name from its cylinders which were set opposite each other at a 45 degree angle. The V-twin powered motorcycle was the fastest motorcycle during those times and could travel at a speed of 60 miles per hour.

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