Harley Davidson

Harley-Davidson

Brand Strategy Analysis

Category:

Automotive – motorcycles & scooters

Owner of the brand:

Harley-Davidson Motor Company, Inc.

Key Competitors:

Honda, Suzuki, Yamaha, Kawasaki, BMW, Indian

Brand essence

Fulfiling dreams of personal freedom.

Brand values

Independence, freedom, individuality, heritage.

Brand character

Powerful, adventurous, tough, American, masculine.

Brand character

Outlaw

Tagline

“All for freedom. Freedom for all”
“Live Your Legend”

 

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Harley-Davidson is an iconic American brand with roots dating back to 1903, when William S. Harley and brothers, Arthur and Walter Davidson, built their first (unsuccessful) motor-bicycle in Milwaukee, Wisconsin. The brand went through multiple ups and downs throughout its history and enjoyed the highest sales in 2006[1]. It was substantially affected by the financial crisis of 2007 and 2008 and has been trying to regain market relevance since then, but so far with no spectacular success. Business analysts believe that Harley-Davidson’s biggest problem is its ageing target group which is the consequence of the fact that younger generations are less interested in the motorcycle category in general and that the Harley-Davidson brand hasn’t managed to build as strong a brand appeal among the millennial audience as it did among their parents.

Harley-Davidson is a lifestyle brand defining its brand purpose as “fulfiling dreams of personal freedom”. It is associated with the thrill of the road, rebellious spirit, personal freedom, individuality and independence from social norms. Its image has been built partially by the company’s activities and partially by the activities of the communities identifying with the brand, bikers in particular. Their unique style (leather outfits, beards, tattoos, patches etc.) and the outlaw character of their clubs added an even tougher, more rebellious and non-conformist edge to the Harley-Davidson’s brand image.

Because Harley-Davidson products are relatively expensive, its main target audience are well-off, middle aged, white men, who look for some excitement in their stable, family lives and who are at the stage when they can finally afford a Harley. Over the last 40 years, the median age of a Harley owner has increased significantly. It was 27 in 1985, 41 in 2003 and 50 in 2018[2]. Hence, in the last decade the company has made many attempts to widen its brand appeal without diluting its rebel image. Women, young adults, racial minorities and international riders are all audiences of interest to Harley-Davidson, in particular since the appointment of Matthew S. Levatich as the CEO in 2015.
Official brand statement:

“We fulfill dreams of personal freedom.

OUR ROOTS
In 1903, out of a small shed in Milwaukee, Wisconsin, four young men lit a cultural wildfire that would grow and spread across geographies and generations. Their innovation and imagination for what was possible on two wheels sparked a transportation revolution and a motorcycle culture that would make Harley-Davidson one of the most recognized and revered brands in the world.
Since the beginning, we’ve proudly and authentically stood up for the things we believe in most: the rebel spirit in all of us, unity, individuality and personal freedom. These beliefs and a desire to find freedom on two wheels forge a bond that brings Harley-Davidson riders, employees, dealers, and suppliers together.
On our quest to build the next generation of riders globally, we welcome all who share these beliefs and a desire to enjoy the world on a motorcycle.”[5]

the world better than we found it.”

 

Significant Campaigns

In 2018, the brand announced a new strategy called “More Roads to Harley-Davidson” which it is going to implement until 2022. Its main objective is to generate more than $1 billion of incremental annual revenue in 2022[3] by attracting a wider (in particular international) audience to the brand. The plan revolves around four main areas: “new products, broader access, stronger dealers and amplify brand”[4]. Harley-Davidson primarily intends to widen its product assortment to include smaller motorcycles for the Asian market as well as electric two-wheelers, improving its digital capabilities and inspiring interest in the so called “moto-culture”.
 

In the past, Harley-Davidson brand was present on multiple products which had little to do with motorcycles: perfumes, aftershaves, baby clothes, ties, just to name a few. The company realised that it had risked diluting the brand image and losing its most loyal fans and ceased the brand-stretching strategy.

 

Harley-Davidson embodies the ideals of the Outlaw archetype like no other brand – it stands for personal freedom, individuality and a rebellious spirit.