Part
01
of one
Part
01
Harley Davidson went from being a niche brand for hard-core bikers to being one sought out by a broader, largely affluent audience in the last quarter of the 20th century. What were the events and initiatives that prompted this broadening of appeal?
Hello! Thanks for your question about the events and initiatives that prompted the broadening of Harley Davidson's ("HD") appeal. The most useful sources I found to answer your question are Harley-Davidson.com and Forbes.com. The short version is that a HD's involvement in both World Wars, its innovation in engine design,clever marketing techniques, and continuous victories in motorcycle races has propelled HD into the limelight, kept it relevant while other manufacturers have fallen by the wayside, and allowed it to grow beyond its original niche of hard-core bikers. Below you will find a deep dive of my findings.
IMPORTANT EVENTS IN HD HISTORY
While there is a lot of HD history that can be read on harley-davidson.com, this response will focus on the events and dates that caused HD to stand out and grow.
It started back in 1901 when William S. Harley drew an engine that was designed to fit into a bicycle. Two years later, in 1903, Harley teamed up with Arthur Davidson, and the first HD motorcycle was presented to the public.
The bike was built to be a racer. In 1905, an HD bike won a race. Word about HD really started to spread in 1908, when Walter Davidson (Arthur's brother) received a perfect score at the annual "Federation of American Motorcyclists Endurance and Reliability Contest". In fact, winning races and breaking records quickly became a regular theme in HD's timeline.
The boys were able to convince the Detroit Police Department that fast bikes were something they needed and, in 1908, the first police duty bike was delivered to the Detroit Police Department.
In 1909, HD introduced a V-twin powered motorcycle, and the configuration of the two cylinders quickly become an icon of HD history. For the first time, HD also made available spare parts for purchase.
In 1912, HD began exporting motorcycles to Japan. In 1914, HD formally enters motorcycle racing, and within a few short years, HD is known as the "Wrecking Crew" because of their dominance.
By 1917, roughly one-third of all HD motorcycles produced were being sold to the U.S. military. By 1918, that number increased to half of all HD bikes produced. By 1920, HD “is the largest motorcycle manufacturer in the world”.
The "hog" association also begins around 1920, when a pig, the racing team’s mascot, is taken on victory laps after each race won.
By 1922, HD has grown to dealerships in 67 countries. By 1931, except for Indian, all of HD's American competition is gone and out of business.
In 1935, the Japanese motorcycle industry is born as a result of HD’s licensing of its blueprints, tools, dies and machinery to the Sankyo Company of Japan.
With the start of World War II, HD ceases making civilian bikes and goes back to making bikes sold largely to the U.S military. HD’s involvement during both World Wars gave many American servicemen their first exposure to HD motorcycles. Once the War was over and HD returned to making civilian bikes, it introduced the 45 cubic inch flathead WR racing motorcycle – “one of the best racing motorcycles ever built”.
In 1953, while HD celebrated its 50th anniversary, Indian motorcycle went out of business, making HD the only U.S. motorcycle manufacturer for the next 46 years.
In 1962, HD purchases 60% of the Tomahawk Boat Manufacturing Company stock, and in 1969, HD merged with the American Machine and Foundry Company.
In 1983, the “Harley Owners Group®”, or H.O.G.®, “becomes the largest factory-sponsored motorcycle club in the world. Within six years, H.O.G. membership soars to more than 90,000. By the year 2000, it exceeds 500,000 members.”
SETTING ITSELF APART
Having gone through the timeline, it becomes clear that HD was fortunate to be forward-thinking and on their toes to acclimate to the changing business environment. For instance, reaching out to a police department in 1908 and pitching the need for motorcycles. Or contracting with the U.S. military and leaving a taste for HD in servicemembers' mouths. But the innovation doesn't stop there.
In 1936, HD started to offer riders the ability to customize their bikes when it offered original motorcycle parts and accessories, creating a catalogue with more than 720 pages.
Another strategic move was putting dealers and local chapters/clubs in contact. This allowed clubs to organize weekend rides, meetings, long trips and rallies with other HD motorcycle owners. Purchasing a HD motorcycle didn't just get you a bike, but also got you access to a club of other HD motorcycle owners. For example, the Harley Owners Group club has approximately one million members as of March 2016. As the number of HD owners grows, the Harley Owners Group network strengthens, becoming more valuable to other HD owners thanks to the connections that are made or could be made. This is unique for a brand, where increased ownership usually means dilution of the brand.
Another distinguishing aspect of HD is marketing. HD marketing goes beyond the motorcycle and includes such things as toys, stuffed animals, clothing and accessories, representing 15% of the company’s gains.
Additionally, under HD CMO, Mr. Richer's, watch, HD only spends 15% of its marketing budget on “traditional media”. The rest is spent on riding with HD customers and creating experiences like a bike ride in Rome where Mr. Richer managed to get Pope Francis to bless thousands of HDs. "We think the best form of advertising is great experiences spread by word-of-mouth," said Mr. Richer. “We're really not about transportation; it's not about getting from Point A to Point B. It's about living life in the way you choose."
Marketing via social media is equally effective. For example, HD invites its customers to share their stories via a "Fan Machine" app on its Facebook page. It then casts real HD riders it finds from its 133,000 Twitter followers in its ads.
Marketing can even enter the 3D realm. William Connor noted the following after encountering HD at a trade show in March 2015: "At the show this year and for the last several years H-D has set up a Fat Boy on a chassis dyno roller that riders with no experience can jump on and learn to shift and work the throttle. In the middle of the show floor inside they are letting people run their motorcycle. The staff was super friendly with both men and women instructors catering to new and non-riders alike. The wait was over an hour long for most the day. No other vendor had even close to that type of attention. ... My point is you can't just build a better bike and survive in business. You have to be able to talk about the product, engage riders in the product, and create your own market loyalty. Harley-Davidson does this as well, if not better, than any other brand."
HD also increased its exposure by advertising in magazines, such as Bicycling World, Motorcycle Illustrated, Motorcyclist and The Western Bicyclist, and by publishing its own magazine, The Enthusiast, in both Spanish and English.
Ties to Hollywood also helped - whether it was the appearance of HD motorcycles in movies, rock stars such as ZZ Top’s Billy Gibbons owning one, movie stars such as George Clooney and Brad Pitt riding one, or Elvis Presley photographed next to one - pairing a bike with a celebrity increases exposure.
It's hard to argue that HD doesn't sell a certain lifestyle and image - personal freedom, strength, and rebelliousness - just as much as it sells motorcycles. It has attracted a fiercely loyal and lifelong customer base through its promotion of this lifestyle and culture. However, HD’s core demographic is white men aged 35 and older, with the average HD customer being an upper-class 47-year-old white male. As a result, HD has identified additional areas of focus to attract customers, including women over the age of 35, young adults ranging between ages 18-34, and Hispanics and African-Americans over the age of 35.
Although women have been associated with motorcycles for decades, more women are now coming on board as efforts to attract women increases. "Women are the fastest-growing segment of the motorcycle business." Aside from available women-only clubs, HD also holds events for its female clientele, such as the Daytona Women's Day Ride.
With respect to attracting young adults, in 2001, HD introduced a motorcycle with a Porsche-designed engine. Its intent was to attract two new groups of riders – young Americans admiring European design/performance, and Europeans uninterested in the traditional HD design.
HD's drive to increase sales in these three groups is paying off - it is selling more bikes to minorities and women "than all other manufacturers combined in the US." That's nothing to sneeze at.
To wrap it up, clever marketing is key to breaking out of a niche and attracting non-traditional customers, as is knowing when to take advantage of economic turmoil. Thanks for using Wonder! Please let us know if we can help with anything else!