HARLEY DAVIDSON CASE STUDY

HARLEY DAVIDSON CASE STUDY Background In 1983, Harley-Davidson established the Harley Owners Group (H.O.G.) in the United States. This group was established because of the developing interest of Harley owners in participating in organised activities with other Harley enthusiasts. Membership grew rapidly and in the 1990s, H.O.G. went international, hosting the first official European H.O.G. Rally in Cheltenham, England. Membership continued to grow around the world in Europe and Asia, including countries such as Singapore and Malaysia. The goal of the H.O.G. was to enhance the level of involvement that Harley riders felt towards the Harley brand and their main product: the Harley motorcycle. Membership of H.O.G brought with it many benefits, including access to the company's HOG Magazine, insurance, roadside assistance and Harley rentals at several locations worldwide. However, one of the major events established to generate enthusiasm for the brand and stimulate consumer involvement was the Posse Ride. The Harley-Davidson Posse Ride In order to increase their riders' level of involvement with their products, and enhance brand loyalty, Harley began promoting destination rallies. Harley owners would attend a 'Homecoming' event held in Milwaukee, Wisconsin, where the Harley headquarters is located, as well as local and regional rallies. These rallies would bring together thousands of Harley enthusiasts and would link Harley riders to a wider Harley community. This created a sense of togetherness that engendered a greater appreciation for the Harley brand. However, these destination rallies proved very expensive to administer and required up to 100 Harley employees to assist with the smooth running of the events. The company therefore decided to adopt the concept of touring rallies'. These are rallies that take the form of a long-distance bike ride. They emphasise actually riding the Harley and provide a sense of camaraderie that the stationary rallies do not. Riders go through several checkpoints and receive documentation proving that they have completed the different stages of the ride. They are hosted by Harley dealers who are eager to connect with Harley riders and showcase their businesses in the local media. The rallies also often include a theme based on the route that the tour takes. For example, the 'Blues Cruise' focused on stops that highlighted American musical history. A classic Harley The Posse Rides create enhanced brand loyalty by offering their customers an opportunity to show off their bikes and feel a sense of camaraderie with fellow enthusiasts Enhancing involvement with the Harley brand The Posse Ride is now steeped in tradition and rituals At the beginning of the tour, riders take a'Posse Oath'regarding their participation in the ride (including a'no whining clause). They are given a passport which is stamped every time they complete a stage of the ride. They also participate in several other tour activities with the other members often entertaining each other with stories about the adventures they've had with their Harleys. These activities help the ride participants build a stronger bond with the Harley community and also increase their sense of identification with the Harley brand. Groups like the Harley Owners Group are called brand communities. They are made of consumers who share similar values and goals that relate to a particular brand. Some such brands, like Harley, become a cultural phenomenon and are associated with a specific lifestyle. The brand then makes statement about the owner, Harley owners are considered rebellious and carefree. Harley-Davidson has decided to put more resources into the touring rallies since they are a valuable opportunity to get close to their main consumers. They can listen to their consumers' concerns and also get ideas on how to improve their motorcycles and the attendant services. For the rider, membership in the brand community only serves to strengthen their relationship with the brand. This in turn leads to increased involvement and a more positive attitude towards Harley The ultimate brand loyalty A well-developed brand can inspire incredible levels of loyalty and consumer identification. Q1: Do you believe brand communities like Harley-Davidson results in greater involvement with the brand? Please provide your idea. Q2: What elements of the Posse Ride do you believe enhance the meaning of the brand for the riders? Q3: Should Harley-Davidson get more involved in the ride or would that dilute the ride's meaning to the participants? Q4: In addition to experiences such as the Posse Ride, what other ways could Harley increase involvement in the brand