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

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The company's marketing strategy was based on focused differentiation wherein it targeted specific groups with focused products. Harley exclusively focused on the heavyweight motorcycle segment. It concentrated on mini niches such as customized, touring, and standard motorcycles, in the heavyweight division. The company's family of motorcycles included the Sportster, the Dyna, the VRSC, the Softail, the Touring, the Trike, and the CVO motorcycles. Harley bikes had a characteristic design and were known for heavy customization. The heavy use of chrome and the styled tail fenders highlighted the bike's unique image...

Central to Harley's marketing strategy was the focus on building a strong bond with the customer, maintaining a close relationship with them, and providing them with an engaging and interactive brand experience. To involve Harley riders more actively in the sport of motor cycling, the HOG was established in 1983. Considered to be the industry's largest company-sponsored motorcycle enthusiast organization, the group sponsored motorcycle events, including rallies and riding events for Harley enthusiasts at local, regional, national, and international levels...

Harley retailed its products through an independent dealer network which offered Harley's motorcycles, parts & accessories, general merchandise, and licensed products, and performed service for the motorcycles. The dealers also sold through non-traditional retail outlets such as Secondary Retail Locations (SRLs), Alternate Retail Outlets (AROs), and Seasonal Retail Outlets (SROs). As of 2010, Harley distributed its motorcycles through 1,334 dealers worldwide. The company offered various services to its independent dealers including service and business management training programs and customized dealer software packages. The dealers were trained by the Harley-Davidson University...

Harley's advertising strategy was based on creating a specific image and lifestyle for the product. The company did not spend much on advertising and Harley bikes were promoted mainly through word of mouth. Employees personally marketed the brand by modeling in the company's Motorclothes catalogue, attending rallies, and acting as tour guides at the manufacturing plants. "We're not dependent on advertising or other traditional marketing techniques as automobile companies or even our competitors are. They're selling transportation. We're selling dreams and lifestyle. There's a big difference. Because our bikes are so visually and audibly compelling, you get a bunch of them together, whether by the dozen or the thousands, there's going to be excitement and curiosity. Add to that the fun associated with motorcycling and you've got natural word-of-mouth promotion. In a very real sense, our customers are the sales force, and the bikes, accessories and clothing serve as our calling cards," said Ken Schmidt, former director of communications at Harley...

In 2008, Harley reported a decline in the demand for its motorcycles due to the global economic downturn. The recession affected the growth of the company as people were reluctant to spend money on luxury items. In 2008, the company's revenue decreased by 2.3% to US$5.59 billion compared to the previous year. Sales were down more than 7% and net income fell 29.9% to US$654.7 million...

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