The Future is theirs for the making.
As part of my thesis completion at the VCU Brandcenter, I was fortunate to work with the Harley-Davidson Motor Company on an exciting project where I was tasked on researching and re-imagining what the ownership program could be for Harley-Davidson and its owners.
I performed a great deal of research and worked with a talented group of fellow students, bringing the recommendation and vision to life. This concept was formally presented to Harley-Davidson and these creative and strategic recommendations are now gaining traction internally at Harley-Davidson.
Background
Harley-Davidson, the iconic brand that manufacturer’s the world’s most popular heavy-weight cruising motorcycles, has an aging core rider base. More specifically, its company-sponsored owner’s group, The Harley Owner’s Group, or H.O.G., now averages 48 years old and is getting one year older every year. The Young Adult owner segment, ranging in ages 18-34, currently make up only 8% of the membership base and renewal rates after a one year complimentary H.O.G. membership that comes with the purchase of a new motorcycle was 38% and had been declining.
Put another way, that means that 62% of young people who buy a new Harley-Davidson motorcycle decide not to participate in H.O.G. That's a pretty big problem and one that could question the future global dominance of this storied motorcycle brand.
Business Challenge
H.O.G. members spend more money on motorcycles, parts, accessories and merchandise than non-members. According to a Harvard Business Review case study from 2000, these people spend $1,250 more than non-members on vehicles and hundreds more in parts and accessories and branded merchandise. It goes without saying that investing in a program thats attractive for the next generation of owners is essential. Converting these Young Adults and retaining them as H.O.G. members is very, very important to the financial health of the Motor Company.
Coming directly from the Motor Company’s Chief Marketing Officer, Mr. Mark-Hans Richer, the assignment was to radically and aggressively reinvent the Harley Owner’s Group membership experience for the Young Adult segment. The experience had to be hyper-local but globally scalable as the Motor Company is beginning to make a strong global push into new markets.
Major Insights and Findings
After interviewing current H.O.G. members, non-members, conducting focus groups, performing an ethnography, visiting motorcycle shops and conducting an online survey that spanned the United States, I found that the target is drawn to what the Harley-Davidson brand stands for but feels that it does not offer anything for them specifically. These feelings were consistent on a number of products ranging from motorcycles to clothes to the H.O.G. experience.
The H.O.G. experience, as it exists today, does not appeal to this younger, super connected generation. Young people find the brand old and stale and feel that the current ownership platform favors an older generation. They view the brand that was and tries to be be anti-establishment to now be the establishment.
Target
The target for this evolved ownership concept would be “Millennials,” young adults, age 18-34, who are the most connected generation ever. They are the early adopters of emerging and mobile technologies and social media, They are transcending into adulthood and will soon have their own discretionary income, in excess of almost $250 billion. But how can we make this next generation want to participate in the ownership program? The current offering is not the solution.
Strategy
Success will not come from the current structure and offering. Success will require sacrificing control to allow this next generation to customize the H.O.G. ownership experience from the brand that has customization in its DNA.
Don’t assign Young Adults a role in the story of Harley-Davidson: Give them the tools and empower them to co-write the next chapter.
Credits:
Communications Strategist: Jessica Collins
Copywriter: Chris Trumbull
Art Director / Designer: Billy Veasey
Creative Brand Manager: Tommy Cottam
As part of my thesis completion at the VCU Brandcenter, I was fortunate enough to work with the Harley-Davidson Motor Company on an exciting project where I was tasked on researching and reimagining what the ownership program could be for Harley-Davidson and its owners. I performed a great deal of research and worked with a talented group of fellow students, bringing the recommendation and vision to life. This concept was formally presented to Harley-Davidson and these creative and strategic recommendations are gaining traction.