Building Brand Community on the
Harley-Davidson Posse Ride
M740 CORPORATE REPUTATION AND BRAND MANAGEMENT
Agenda
2
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Executive Summary
Background
Key Issue
Analysis
•  Company
•  SWOT
•  Brand Identity
•  Customer
•  Quantitative
•  Alternatives
•  Assessment Matrix
•  Recommendations
Executive Summary
3
Should the Posse Ride rolling rally continue?
If yes, how do we maximize its effectiveness?
Customers are generally satisfied and the ride
continues to be a profitable driver of brand
awareness.
Improve existing Posse ride by solving common
complaints and integrating rider feedback.
Background
4
!
Harley Owners Group (H.O.G.)
!
Division of the Harley Davidson Motor
Company formed in 1983 to bring the
company closer to its customers
1983
33,000
Destination Rallies
"  Extremely labour
intensive
Membership
1999...
500,000
Rolling Rallies
"  Unique, themed rides that
start and end in different
cities
Background
5
Posse II
Posse I
High adventure,
low cost ride
"  Started in 1997
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"
"
"
"
"
Sequel to the “epic adventure”
Border-to-border run
Many repeaters from the Posse
I ride
Capped at 500 but only 425
registered
Passport stamps along route
stops at dealerships
Large rider investment of both
time and money
Key Issue Facing H.O.G.
6
Problem Statement: Does the Posse Ride rolling rally
continue to meet corporate marketing objectives?
Evaluate 3 key elements:
1) Brand connection
2) Profitability of the rides
3) Overall satisfaction of the ridership
Company Analysis
7
Current Brand Vision
“We fulfill dreams of personal freedom.”
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•
•
Strengths
Attracting new riders
Optimizing the retail chain
Championing retail
excellence
Harley Davidson
Core Values
Teamwork
Accountability
Knowledge
Innovation
Honesty
Initiative
Capabilities
Delivering high quality to retain
customers for life
SWOT Analysis – Posse Rides
8
STRENGTHS
- Consistently high interest in ride
- Strong brand recognition
- High customer loyalty
- Rides are low cost and highly
profitable
WEAKNESSES
- Unorganized ride planning
- Ride is only feasible for a small
percentage of H.O.G. members
- Impossible to develop a single event
that will satisfy everyone’s needs
OPPORTUNITES
- ‘Baby-boomer’ retirees could lead to
increased membership
- Many different types/routes of rides
available to maintain interest
THREATS
- Adverse weather could affect ride
route
- Weak economy could reduce sales
and ride revenue
- Negative connotation with Harley
subculture
Brand Identity Analysis – H.O.G.
9
Service Attributes
•  Develop social ties
•  Local chapter newsletters
•  Local values, but H.O.G. ethos
•  Ownership benefits e.g. Fly & Ride program
•  Rallies – linking riders together into a broader community
The H.O.G. Scope
•  Division of HD Inc.,
supported by local,
national, and
international levels
•  Open to all HD owners
•  Close-to-the-customer
philosophy
Quality
“Our service features
an enhanced riding
experience for Harley
owners who seek
challenging rides and
desire a sense of
camaraderie.”
•  Customer satisfaction
high (3.7 on a 4-pt
scale)
•  Demand exceeds
supply
•  Strong brand loyalty
H.O.G. Members - Defined
10
male
The typical customer for H.O.G. is ________
with an
41 and a median household income
average age of ____,
$55,570 They typically hold jobs in the
of ________.
technical
and entrepreneurial fields.
_________________________
Our typical customer is influenced
other Harley owners They are motivated by the
by__________________.
experience the freedom of the open road
need to ___________________________________.
The following needs are not currently being
engagement and connection with Harley
met:___________________________________.
“A stroll among the riders at a rolling rally reveals
a good deal of gray hair and relative affluence”
Value Add of H.O.G.
12
500,000 members $40 annual membership fee
(1st year complimentary)
167,000 active
members – spending
$850 more annually
75% renewal rate for
H.O.G membership
$2,630
Active Member
$465
million
$80
Inactive Member
Assuming an average membership of 3 years
Customer Response
13
Pre- and post-ride surveys were
analyzed using a modified Net Promoter
Score (7 point scale).
The results were broken down by:
"  Lifestyle experience
"  Brand connection
"  Intention to repurchase
Lifestyle Experience
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I have made lifelong friends
because of Harley
↑18%
I would recommend this
ride to a friend
↑34%
I would definitely sign up for
another long distance rally
↑17%
Brand Connection
15
Harley really understands what
riding a bike is about
Harley really
cares about me
as a customer
↓36%
Harley really
understands my needs
↓46%
↓19%
I am satisfied with H.O.G.
↓38%
Intention to Repurchase
16
Pre-Ride Survey
If I were to replace my bike, I'd buy
another Harley.
Bottom 2
Middle 4
Top 2
Pre-ride NPS
82%
Post-ride NPS
100%
↑18%
Alternatives
17
1.
Maintain the status quo
¤
2.
Improve existing ride
¤
3.
Riders are generally happy with the existing ride, but
what about their concerns?
Concerns could be addressed and the experience
made better, but is it worth the additional cost?
Cancel ride altogether
¤
It would free up resources for other opportunities, but
would it let riders down?
Assessment Matrix
18
Alternatives & Ranking Criteria Weight Improve Status Quo Cancel Brand Connec+on .50 3 2 1 Profitability .40 2 3 1 Rider Sa+sfac+on .10 3 2 1 Total 1.0 2.60 2.40 1.00 Recommendations
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Planning
"  Up to one year before ride
Create contest or survey to involve H.O.G.
members in future route selection
Select a group of H.O.G. members to act as
an advisory board for possible events
Recommendations
20
Execution
"  Ride registration to completion
Assigned registration times to avoid long lineups
Have dealers ship riders’ purchases to head office to
eliminate the need to carry
Invite non-participating H.O.G. members to host events
along the ride route
Designated meet-and-greet with Harley employees
Recommendations
21
Post-Ride
"  Evaluation and follow-up
Conduct post-ride survey with Posse ride
participants to evaluate improvement
Further Posse ride merchandising such as
videos, yearbooks, and postcards
Discount card for members in order to track
purchase patterns
Discussion Questions?
22
Return on Posse II
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$400,000
$350,000
Average
Profit Margin
is 34.7%*
Additional H.O.G.
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
75%
85%
95%
Retention Rate of Posse II Riders
*http://investor.harley-davidson.com
100%