2. Harley-Davidson’s falling sales opens the doors to rising opportunities for marketing agencies.
For the past several years, Harley has been losing market share to two main groups: Women and
younger adults. Last month, Harley Davidson launched a global agency review, encompassing
creative, digital and media assignments, likely in an effort to regain them.
A company representative told AdWeek that officials issued requests for proposals “at a holding
company level,” adding that the company is focused on “driving demand and growing our reach and
impact with customers globally” amidst falling sales numbers and wishes “to ensure we have the
most effective and efficient resources in place to support this work.”
Lately the brand has worked with Victors & Spoils on creative, Digitas LBi on digital and Starcom
MediaVest Group for media buying and planning. It’s unclear if those agencies will be participating in
the review. The review follows the departure of chief marketing officer Mark-Hans Richer in
November, with Harley Latin America chief Sean Cummings subsequently receiving a promotion to
senior vice president of global demand and being tasked with marketing oversight.
OVERVIEW 01
OVERVIEW
http://www.adweek.com/news/advertising-branding/facing-heightened-competition-harley-davidson-reviews-its-global-agency-assignments-169122
http://www.adweek.com/news/advertising-branding/facing-heightened-competition-harley-davidson-reviews-its-global-agency-assignments-169122
http://www.adweek.com/news/advertising-branding/facing-heightened-competition-harley-davidson-reviews-its-global-agency-assignments-169122
http://www.adweek.com/news/advertising-branding/facing-heightened-competition-harley-davidson-reviews-its-global-agency-assignments-169122
http://www.adweek.com/news/advertising-branding/facing-heightened-competition-harley-davidson-reviews-its-global-agency-assignments-169122
http://www.adweek.com/news/advertising-branding/facing-heightened-competition-harley-davidson-reviews-its-global-agency-assignments-169122
3. OVERVIEW 02
SUMMARY
2015 was a tough year for the Milwaukee based company.
At the end of the year, the stock was down 30% compared to 2014, and the company suffered a
2.4% decline in wholesale shipments through the first three quarters.
The first estimate of shipping 4-6% more motorcycles compared to 2014 has been rectified,
estimating a decrease of 2%.
Harley is facing stiff competition from foreign companies like Honda and American companies like
Polaris Industries, which revived the Indian brand to leverage the “Old School appeal” which foreign
motorcycle makers can hardly showcase.
Harley-Davidson protected its premium brand image refusing serious discounting in order to
compete with foreign brands but, price aside, younger consumers and women seem to have
difficulties “buying-in” to the Harley-Davidson’s lifestyle.
In fact as stated by Michelle Krebs, analyst for Kelley Blue Book, “The younger generation has no
interest in Harley-Davidson as far as I can tell. Unless you ride a motorcycle or scooter in a city as
your transportation, motorcycles are a splurge millennials can’t afford and have no interest in -
especially Harley-Davidson, which seems like a old white-guy brand.”
4. SUMMARY
SUMMARY 03
Trying to subvert Harley-Davidson’s rider stereotypes, the #RollYourOwn campaign is one of the
lasts Harley-Davidson marketing efforts including TV, print ads, online ads and Social Media. It was
produced by Wolfes LLC agency and, as stated by Dino Bernacchi, U.S. marketing director at
Harley-Davidson, it was “about each rider defining their independence and attitude, whether kicking
up dirt on the track or sliding through the curves on ice."
The company said it plans to increase marketing spending by about 65% this year. “We expect a
heightened competitive environment to continue for the foreseeable future, and now is the time for
us to dial things up,” said Harley Davidson president and CEO Matt Levatich.
Some of the company's long-term issues include the need to keep its legacy customers satisfied
while, at the same time, attracting new people to the brand. In fact, brands must not neglect the
"growth market" of older consumers to focus solely on youthful audiences, as discussed by H-D’s
CMO Mark-Hans Richer.
"We don't consume television, newspapers, and the printed word the way we used to. So I am not
surprised that a long-standing company like Harley, with long-held traditions, could be challenged by
what's going to work," said Genevieve Schmitt, publisher of Women Riders Now, an online
publication aimed at female motorcyclists.
http://www.womenridersnow.com/
http://www.womenridersnow.com/
http://www.womenridersnow.com/
5. In order to get ready to pitch and become fully informed about Harley-Davidson’s target consumer
segments and competition, you will need 3 different analyses:
• Competitive analysis
• Audience Insights
• Trends watch
SUMMARY
Important Facts & Figures 04
15. AUDIENCE INSIGHTS 14
AUDIENCE INSIGHTS
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16. TRENDS 15
TRENDS
INTERESTED IN WHAT’S TRENDING
ON YOUR TARGET AUDIENCE?
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17. If you need
more insights
on this target and
its competitors
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