Harley Davidson
1. Background
The Harley Owner Group (H.O.G), a factory sponsored motorcycle enthusiasts club was established in 1983. The group was primarily formed in order to enhance the Harley Davidson brand experience by bringing the company closer to its customers and also to promote a positive brand image by controlling the negative influence of the biker gangs that many felt dominated the sub-culture.
By the end of 1999 the H.O.G counted half a million members and about 166,667 members were considered active and participated in at least one H.O.G sponsored event in a year. The value of each active H.O.G member is estimated to be 5,575$ for the Harley Davidson Motor Company. Established in1997, the Posse Ride is a 5000 miles, 10 days long motorcycle-riding event which is an important part for the H.O.G event mix. This unique experience allowed riders from all over the world to bond with each other, foster a sense of community, and accept the challenge to be part of the Posse Ride.
The Posse ride allowed the Harley management team to not only take part in the rides but also to establish a relationship with their customers. It gave them a tool to gain valuable customer insights. Moreover, with a budget of only $100,000 the return on investment was high based on the impact the ride had in increasing intangible assets such as brand awareness, recognition and equity. The Riders did mention a normal to above average rider in order to gain valuable experience from the Harley ride.
2. Situational Analysis:
The key problem presented in this case study emphasizes on whether or not the Posse business segment is a viable source of profitability for Harley Davidson – Should Harley Davison continue hosting the Posse Ride and will it answer the required marketing objectives?
Upon deeper investigation, it can be understood that the issues at hand are quite different. The customer base attaches a very high emotional value to the entire posse experience. It
The Harley Owner Group (H.O.G), a factory sponsored motorcycle enthusiasts club was established in 1983. The group was primarily formed in order to enhance the Harley Davidson brand experience by bringing the company closer to its customers and also to promote a positive brand image by controlling the negative influence of the biker gangs that many felt dominated the sub-culture.
By the end of 1999 the H.O.G counted half a million members and about 166,667 members were considered active and participated in at least one H.O.G sponsored event in a year. The value of each active H.O.G member is estimated to be 5,575$ for the Harley Davidson Motor Company. Established in1997, the Posse Ride is a 5000 miles, 10 days long motorcycle-riding event which is an important part for the H.O.G event mix. This unique experience allowed riders from all over the world to bond with each other, foster a sense of community, and accept the challenge to be part of the Posse Ride.
The Posse ride allowed the Harley management team to not only take part in the rides but also to establish a relationship with their customers. It gave them a tool to gain valuable customer insights. Moreover, with a budget of only $100,000 the return on investment was high based on the impact the ride had in increasing intangible assets such as brand awareness, recognition and equity. The Riders did mention a normal to above average rider in order to gain valuable experience from the Harley ride.
2. Situational Analysis:
The key problem presented in this case study emphasizes on whether or not the Posse business segment is a viable source of profitability for Harley Davidson – Should Harley Davison continue hosting the Posse Ride and will it answer the required marketing objectives?
Upon deeper investigation, it can be understood that the issues at hand are quite different. The customer base attaches a very high emotional value to the entire posse experience. It