Harley davidson pitch brief

17
NEW BUSINESS PITCH BRIEF

Transcript of Harley davidson pitch brief

NEW BUSINESSPITCH BRIEF

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-169122http://www.adweek.com/news/advertising-branding/facing-heightened-competition-harley-davidson-reviews-its-global-agency-assignments-169122http://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-169122http://www.adweek.com/news/advertising-branding/facing-heightened-competition-harley-davidson-reviews-its-global-agency-assignments-169122http://www.adweek.com/news/advertising-branding/facing-heightened-competition-harley-davidson-reviews-its-global-agency-assignments-169122

OVERVIEW 02

SUMMARYIn 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

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.”

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.

SUMMARY

SUMMARY 03

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

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.”

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/

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

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.”

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.

DEMOGRAPHICS 05

COMPETITIVE ANALYSISDEMOGRAPHICS

GENRES

MALE

0% 25% 50% 75% 100%

FEMALE

0% 25% 50% 75% 100%

Indian MotorsHarley Davidson Honda Moto Triumph

DEMOGRAPHICS 06

13 - 17

0% 25% 50% 75% 100%

18 - 24

0% 25% 50% 75% 100%

25 - 34

0% 25% 50% 75% 100%

35 - 44

0% 25% 50% 75% 100%

45 - 54

0% 25% 50% 75% 100%

AGE

SINGLE

0% 25% 50% 75% 100%

MARRIED

0% 25% 50% 75% 100%

IN A RELATIONSHIP

0% 25% 50% 75% 100%

RELATIONSHIP STATUS

55 - 69

0% 25% 50% 75% 100%

DEMOGRAPHICS 07

WHITE

0% 25% 50% 75% 100%

AFRICAN AMERICAN

0% 25% 50% 75% 100%

HISPANIC

0% 25% 50% 75% 100%

ASIAN

0% 25% 50% 75% 100%

RACE

COLLEGE

0% 25% 50% 75% 100%

HIGH SCHOOL

0% 25% 50% 75% 100%

GRADUATE SCHOOL

0% 25% 50% 75% 100%

EDUCATION

DEMOGRAPHICS 08

WITHOUT CHILDREN

0% 25% 50% 75% 100%

WITH CHILDREN

0% 25% 50% 75% 100%

PARENTING

<40K

0% 25% 50% 75% 100%

40K - 70K

0% 25% 50% 75% 100%

70K - 100K

0% 25% 50% 75% 100%

100K - 200K

0% 25% 50% 75% 100%

INCOME

>200K

0% 25% 50% 75% 100%

PSYCHOGRAPHICS 09

ART APPRECIATORS

0 50 100 150 200

BEAUTY AND WELLNESS AWARE

0 50 100 150 200

BUSINESS PEOPLE

0 50 100 150 200

DESIGN LOVERS

0 50 100 150 200

COMPETITIVE ANALYSISPSYCHOGRAPHICS

Indian MotorsHarley Davidson Honda Moto Triumph

PSYCHOGRAPHICS 10

ENTERTAINMENT JUNKIES

0 50 100 150 200

FASHION LOVERS

0 50 100 150 200

FOODIES

0 50 100 150 200

GAMERS

0 50 100 150 200

HOME DECORATORS & DIYS

0 50 100 150 200

MOTOR LOVERS

0 50 100 150 200

PSYCHOGRAPHICS 11

0 50 100 150 200 0 50 100 150 200

0 50 100 150 200 0 50 100 150 200

0 50 100 150 200 0 50 100 150 200

MUSIC LOVERS NERDS

NETIZENS OUTDOOR ENTHUSIASTS

PARTY GOERS PET LOVERS

PSYCHOGRAPHICS 12

0 50 100 150 200 0 50 100 150 200

0 50 100 150 200 0 50 100 150 200

0 50 100 150 200 0 50 100 150 200

POLITICALLY ACTIVE PUBLIC FIGURE FOLLOWERS

TECHIES TRAVELERS

READERS SPORTS ENTHUSIASTS

INTERESTS 13

BikerOrNot.com

Walmart

BikersPost.com

Mitt Romney

Sons of Anarchy

POPULARITY199.8

133.4

194.3

199.9

136.3

199.4

28.3

199.4

67.8

177.1

199.8

120.8

187.0

199.8

152.4

197.2

104.7

143.6

197.7

103.4

COMPETITIVE ANALYSISINTERESTS

Indian MotorsHarley Davidson Honda Moto Triumph

AUDIENCE INSIGHTS 14

AUDIENCE INSIGHTS

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TRENDS 15

TRENDS

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