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

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In late 2010, Harley decided to adopt a multi-generational and multi-cultural marketing strategy in order to increase sales to non-core customers. "The Harley-Davidson brand has always represented the individuals who aren't afraid to go against the grain. Today, we're excited to announce that we're building a new road to ride. This is a bold approach, and while this might intimidate some marketers, we're proud to be living our brand not just through what we do, but how we do it," said Richer. Harley wanted to change its marketing approach from a "one size fits all" agency-based marketing approach to a consumer-led model...

Using the concept of crowdsourcing, Harley developed a new agency support structure and called it the 'Creativity Model'. The Model began with Harley fans offering their ideas based on an advertising brief provided by the company. The best ideas were then developed and the creator rewarded. The company then moved to the next step - what it called the 'The Scrum' - wherein the best ideas were brought to life with help from external agencies. In this model, there was no lead agency or 'agency of record' as in a traditional model. Talking about the 'Creativity Model', Richer said "We have stricken the AOR [agency of record] phrase from our language. We work with lots of people, whether they're at agencies or otherwise and have moved past the idea that there's a lead agency.... The majority of our marketing dollars are spent in experiential...

On February 14, 2011, Harley launched its first crowdsourced advertising campaign, 'No Cages' on YouTube. The campaign promoted Harley's s first-ever online motorcycle customization platform H-D 1 that allowed buyers to design their own bikes online using a variety of options and get them delivered within a month. The minute-long ad titled 'No Cages' illustrated the customization options for Harley motorcycles by showing people who did not own Harleys moving around in cages in their everyday life...

After the success of the "No Cages" campaign, in November 2011 Harley launched a new Facebook application, Fan Machine, that sourced advertising ideas directly from around three millions of Harley fans on Facebook. The app allowed Harley's Facebook fans to review an advertising brief, submit ideas, and even vote on ideas from other community members. After selecting and rewarding the winners, Harley worked with its marketing partners to bring the best creative ideas to life. The first Fan Machine brief which focused on building on the 'No Cages' campaign was available on the company's Facebook page...

For the fourth quarter ended December 2011, Harley posted a profit of US$105.7 million, compared to a loss of US$42.1 million in the corresponding period of 2010. Revenue from Motorcycles during the quarter was US$791.9 million, up by 13.5% compared to the year-ago period. Globally, dealers sold 40,359 new Harley motorcycles in the fourth quarter of 2011, a 10.9% increase compared to 36,390 motorcycles sold in the year ago period. For the full year, worldwide retail sales of new Harley motorcycles increased 5.9% to 235,188 units, compared to sales of 222,110 units in 2010...

Exhibit I: Market Share of Harley-Davidson (in the US)
Exhibit II: Print Ads of No Cages' Campaign
Exhibit III: Screenshot of Fan Machine
Exhibit IV: Harley-Davidson - Selected Financial Data
Exhibit V: Harley-Davidson-Motorcycle Shipments

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