Harley Davidson Final Media Plan
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Harley Davidson Final Media Plan Megan Anderson, Braden Berry, Haley Ostrander, Hayden Hester Table of Contents: I. Executive Summary 1. Situation Analysis 2. Competitive Overview 3. Target Audience Analysis 4. Campaign Objectives 5. Creative Strategy 6. Media Mix Objectives
Executive Summary 1. Situation Analysis a. The main objective is to convince our target audience that they should purchase a Harley motorcycle by giving them the promise of the Harley experience. We know our target audience is aware of the Harley brand, however, to drive purchase consideration we have developed a campaign that relates directly to our target market. 2. Competitive Overview a. Harley’s main competitors are Honda, Suzuki, Yamaha, and Kawasaki because combined they share 92% of the light sport bike sales. We plan to position ourselves against these brands in order to gain some of the market share. 3. Target Audience a. Harley Davidson will target 25-‐44 year old males with an income of $50,000 or higher, married and have some children. The media plan will target these individuals and try to get them to consider purchasing a motorcycle. 4. Campaign Objectives a. The goal of the campaign is to not only create purchase consideration for the Harley bikes but to position Harley towards a slightly younger demographic. Our message will convey that Harley is an escape to everyday life and hopefully by creating a message speaking directly to them, we will be able to persuade them to consider and buy a Harley motorcycle. 5. Creative Strategy a. “Escape the everyday, Life is calling” b. We hope to attract our target audience by creating a desire for the emotion riding a Harley brings out. We believe our target market will be able to relate to this campaign because they are in the beginning to middle of their careers and just finding out what life in the real world is like. We feel as though this message appeals to them by wanting to escape their everyday lives, including jobs, stress and tedious tasks. We hope to convey that they will be able to get away on their Harley to experience life and the thrill that riding a Harley motorcycle can offer. c. We believe this slogan can be developed further into a whole campaign, with different slogans such as “Escape the yard work, life is calling” and “Escape the office, life is calling” to further appeal to precise tasks they might be looking to get away from. d. Overall, our creative strategy showcases that Harley can provide a relief from the mundane life and give an escape. Along with this we have developed a few promotional ideas to enhance our goal of purchase consideration. 6. Media Mix Objectives a. Overall our media mix contains outdoor, radio, internet, and magazines. i. Outdoor-‐ we hope to reach a maximum amount of our target audience via outdoor ads, this is a time when they are travelling either to or from work ii. Internet-‐ our plan includes advertising on websites that our target market will primarily look at during leisure time or when they are bored at work, later on we will define which sites we will primarily place the Harley ads in. iii. Radio-‐ we plan to target them in the morning and afternoon at the times they are most likely to be in their cars, driving to and from their jobs. Also, we want to reach them during work on sites such as Pandora. iv. Magazines-‐ this is where Harley has excelled in advertising, they are a strong brand with a great brand identity but our message specifically targets working men, ages 25-‐44, so we plan to place our ads strategically in magazines that fit this demographic.
1. Situation Analysis SWOT Analysis Strengths: Harley already has a solid base of brand loyal consumers, but the idea is to use this renown and try and push it to the younger demographic. The Harley brand consistently ranks among 10 best known American brands (Media Flight Plan, 2011). We want to express and explain the idea of owning a Harley is much like its very own lifestyle. It goes beyond just owning the bike and riding. You become part of an elite club and membership is respected among other riders. Our focused demographic of this new campaign is changing to a younger audience meaning more opportunity to capitalize on new consumers. The HOG clubs even act like free advertising for the brand (Media Flight Plan, 2011). The HOG club does tend to lean towards the older, rebellious crowd that Harley already has a hold of, but these clubs help give the brand a renown and respect across motorcycle riders. Weaknesses: The current average age of a Harley consumer has gone from 38 to 46 (Media Flight Plan, 2011). Harley motorcycle sales have decreased 21% worldwide due to more competitive companies starting to make a push for more motorcycle sales. There are some individuals that might not like the idea of being part of the “fraternity” or “Harley club” feel that the bikes give, rather it be younger or older. This is a hard sell to someone that doesn’t care about the community for their specific motorcycle. The typical Harley cruiser is an expensive $16,000, and the customer base is mostly upper-‐middle class (Media Flight Plan, 2011). Opportunities: Harley also holds the top ten growth stocks since IPO(Media Flight Plan, 2011). Current economic forecasts indicate 10-‐15% higher demand for the category, meaning that the “idea” of owning a motorcycle is still a hot topic on people’s minds (Media Flight Plan, 2011). American sales of light sport bikes increased 90% in 3 years, targeting minority groups (Media Flight Plan, 2011). This increase helps us put Harley out there with these new light sport bikes that they are producing and target these same groups. Threats: Industry wide US retail demand for heavyweight motorcycles declined 21% (Media Flight Plan, 2011), competitors have a larger share in sales of light sport bikes, Competitors have been coming up with lighter and faster bikes. The younger demographic we are going for typically leans towards these types of bikes. Michigan state police replaced their Harley's for the faster BMW motorcycles. 4 P’s Price: $17,000 Harley V-‐Rod, $10,000 Buell Firebolt, $4,000 Buell Blast. A cheaper, smaller, sportier bike will offer the young consumer less buyer remorse, and allow them to spend money in other places instead of throwing a large lump sum towards this single recreational vehicle. Product: The approach we want to take with this new, sportier bike is a younger more “crotch rocket” type bike. We want to focus on the speed and the innovative water cooled engines, which all attract a younger demographic.
Place: The younger demographic will be able to make their purchases at one of the international stores in the U.S. or online if a store is not logically reachable. Promotion: In the past, Harley has promoted largely to the older men demographic with their HOG type bikes. These are loud, bulky, and meant to look mean in a sense. Many of today’s ads focus on riding the bike at in the country or enjoying nature. Our approach for this specific campaign will be to focus more on the speed, and the release a young man will have on life while riding his “sport bike”, rather it be in the cities or in the country. 2. Competitive Analysis Harley’s main competitors are Honda, Suzuki, Yamaha, and Kawasaki because these competitors combined share 92% of the light sport bike sales. Harley is competing against the Asian innovations. This is a major concern due to the fact that the main competitors are all Asian based companies. We will position Harley, the American company, as the bran that can offer the same type of bike or even better at a cheaper price and American made in order to attract a younger demographic. The U.S. population of young adults ages 18-‐34 is three times larger than the traditional, current customer base of older men. There is a lot of opportunity to grow and reach out to that segment and take over more of the share of sales from other competitors. Harley has developed an extremely brand loyal fan base; however, the other companies have attracted a younger demographic for a much longer time and some specialize in just the sport bikes. This is a problem because the younger demographic typically prefers these sports bikes, and it is difficult to introduce a Harley sport bike into the mix, since Harley is known for its HOGs. Some critics claimed that “Harley hasn’t built better bikes than its four main Japanese competitors, but it has built a far better brand.” This brand awareness is one aspect that will help push Harley to a younger demographic. Honda is the main competitor because first and foremost, their bikes are much more affordable sitting at an average of $11,000 for their high-‐speed sports bikes, and they offer multiple bikes below $6,000. This is important because the target market this specific campaign is going for might not have that large of an amount of disposable income. They also have a much larger selection for sports bikes that are already targeted towards a younger demographic. Honda is a foreign company, and they already hold the belief that foreign made products (such as vehicles) are more reliable and cost less to maintain. Competitive Spending Analysis with Share of Voice The graph below shows a distribution of share of voice in each medium. Below are the totals. 100 Network TV= 42% 90 Spot TV= 3% Cable TV= 20% 80 Syndication= 0% 70 Magazines= 33% Local Magazines= 0% 60 Hispanic Magazines= 100% 50 Harley SOV National Newspaper= 100% 40 Newspaper=20% Hispanic Newspaper= 0% 30 Network Radio= 100% 20 National Spot Radio= 68% 10 Local Radio= 25% US Internet = 41% 0 Outdoor= 58% NETWORK TV NATL NEWSP OUTDOOR
Overall, Harley has a strong share of voice in many areas such as Hispanic newspaper, national newspaper and network radio (Media Flight Plan, 2011). Because there is an increased potential in Hispanic markets, having a strong voice in that area is a perfect strategy. This helps because as earlier stated, many of the competitors of Harley in the sport bike category are successful at targeting these minority groups. They are lowest in Hispanic newspaper so some more research might be necessary to evaluate whether or not having more share of voice there would be beneficial. Harley is also almost a ghost in other areas such as local magazines, local radio and spot TV. It is clear they have a very national focused strategy and we believe it is a well recognized brand and those ads have a much high reach, however, it might be interesting to test specific spot TV ads and place local radio spots to speak directly to the new consumer they are trying to attract. Honda, a main competitor, has 12 vehicle types that they put advertising towards versus Harley who only has media for 3. To keep up with trends and compete with Honda, analyzing their media spend and allocating more dollars where they are might be a good strategy. 3. Target Audience Analysis 160 140 HH Owners 120 Plan to Buy/ 100 Lease 80 Primary Rider 60 PR 18-44 40 20 PR 45+ 0 Radio Magazine Outdoor The chart above displays the index numbers for each media outlet including radio, internet, magazine, prime TV and outdoor and is then divided into five target markets including Harley owners, people who plan to buy or lease within the next 12 months, primary riders, primary rider 18-‐44 and primary riders 45 and above. The media with the highest index numbers in the category of those planning to buy or lease a Harley is magazine, radio, and outdoor advertising. All of these outlets had an index number ranging from 119 to 134. We believe targeting them through that media will be the best strategy for Harley according to the Harley media data. The media with the highest index numbers in the category of primary riders ages 18-‐44 is radio, internet and outdoor. We decided that Harley should analyze the data from this target audience of current Harley owners to see what their media habits are so that we can hopefully attract new customers in this younger age bracket, the one Harley wants to improve. Later on we will specify media strategies based on the media outlets we intend to focus on. Overall, the media we will use for this demographic is magazines, radio, outdoor advertising, and internet. As Harley strives to reach a younger demographic, we plan to analyze that specific group of consumers. We plan to use Harley demographic data specifically for the people who plan to buy or lease a Harley in the next 12 months and the primary riders ages 18 to 44 as that is the market we need to know more about. For the
primary riders ages 25 to 44 we found the target market demographics to be slightly different from the prior. We need to target men ages 25-‐44, with some college, employed making $50,000 or higher, are married and have some children in the household. These were the areas with the highest index numbers but ages 18-‐34 had very high index numbers as well. The overall objective of Harley is to attract a younger demographic or “millennial’s”. Millenials are described as “optimistic yet realistic, self-‐inventive, individualistic, they rewrite the rules, killer lifestyle, irrelevance of institutions, internet savvy, assume technology, and accept the idea that friends equal family.” (4) These key terms can be used in the creative brief as well as to help with a richer understanding of the target market. 4. Campaign Objectives Reach/ Frequency and GRP Objective Based on the amount of media we plan to use and advertise in, we project an estimate of at least 60% reach to all of the channels selected in the media mix. Reach would range from 60% to 80% during the later cycles in the campaign, the idea would be that the target market would begin to recognize and remember Harley Davidson. We especially hope to transition the traditional brand image to a younger, sportier brand image. The best frequency to achieve would be 4.0. The combination of high frequency and reach to a more narrow consumer segment will hopefully increase consideration. We then hope the consumer will continue throughout the purchase funnel from consideration all the way to purchase. With the current strength of the Harley brand loyalty, we believe they will become loyal consumers of the Harley bikes. We will use a 4 cycle scheduling approach throughout the 12 month campaign. Cycle 1: May/ June/ July Cycle 2: August/ September/ October Cycle 3: November/ December/ January Cycle 4: February/ March/ April Cycle 1 and 2 will consist of a heavier approach to advertising. These cycles are in the warmer, summer months and the cooler fall months. These are the times in which young adults are out of school, enjoying time off, and have more time to spend engaging in outdoor activities. Also, there are many holidays which revolve around the summer and fall months in which we plan to advertise around. Harley also has the opportunity to host promotional events including rallies and such. Cycles 3 and 4 will have a lighter approach considering young adults are back in college or back to work. While looking at trends, events, and promotional times we believe these are the slower months. To investigate further we would need more research on sales by month that we could base our advertising strategy on. Radio: Radio will be used primarily in cycles 1 and 2. We plan to focus a majority of our spending here and target our demographic while they are out travelling. We will place ads in Pandora as well as specific stations which we have explained in the media strategy. Cycles 3 and 4 will be lighter as we will focus on other media. Outdoor: Outdoor advertising will be used in cycles 1 and 2 as we predict there will be more travel, road trips and promotional events to tie our advertising too. Harley has traditionally been successful in outdoor advertising, we think we the combination of placement, timing, and a unique campaign will lead to consideration from our younger demographic.
Internet: Internet will be used in all 4 cycles. Our target audience is the primary users of the internet and we plan to have a constant web presence. We believe this will increase sales, create leads to the Harley website, and reinforce the other media we will be in. Magazines: We will advertise more primarily in cycles 1 and 2. However, we will stay consistent with advertising in cycles 3 and 4 but will decrease the amount of magazines. Due to the high circulation and mix of demographics we will reach we believe this will strengthen the overall objective to redesign the image of Harley bikes. It is also a great opportunity to provide a visual and brand identity for the new, sportier bikes. Geographic Objective and Strategies Our objective is to re-brand Harley to our target demographic, men ages 18-34, by positioning ourselves as younger and more innovative to break away from the stereotypical Harley rider. Our geographic strategy will consist of a national and spot campaign. We decided that a national campaign would be the most effective because in order for Harley to maintain a strong brand image as stated in our creative brief, a national campaign is not limited to one specific area, and has the potential to reach more people than a spot campaign. To determine where our spot advertising will be, we chose to use three categories from the Harley data that we felt was most relevant to our campaign and would help us target the right people in order to increase our sales and brand awareness. These three categories include: motorcycle commuter use, recreational vehicle use, and above average house hold income. The reasoning these categories were most relevant to our campaign is explained below in our Geographic Market Analysis. Below are the top ten markets with the highest estimated values that we plan to have spot advertising in. Spot Markets & their Estimated Value Percentages: Los Angeles 26.81% San Diego 10.58% San Francisco 20.00% Dallas-Ft. Worth 10.28 % New York 17.83% Chicago 10.21% Phoenix 14.11% Philadelphia 9.97% Seattle-Tacoma 10.85% Sacramento 9.81% Geographic Market Analysis We have decided to target men between the ages of 25-44. When determining the appropriate spot and national advertising that will best reach our target audience, we base our choices on the calculated estimated value percentages. This information gave us the top ten markets which determine where we place our spot- market campaigns. To find our total estimated value, we first calculated the estimated value of motorcycle commuter use. This is an important category to our campaign because we would like to focus on individuals that already use a motorcycle as their primary means of transportation. We felt it was necessary to factor in this category because should they look to purchase a new motorcycle, we want them to think of Harley- Davidson. We also chose the recreational vehicle use category because the tone of our campaign is highlighting free-spiritedness, which is an attitude that recreational vehicle users have. Lastly, we chose cities with an above average household income. These three categories are what we used to come up with the total estimated value percentage. Along with the national campaign, we decided that targeting the top 10 markets with the highest estimated values with spot advertising would strengthen the campaign. Below is a chart that displays our calculations for the estimated value.
Top 10 Markets and Estimated Values Map of Spot Market
Market Motorcycle Recreational Above Estimated Value Commuter Use Vehicle Use Average HH Total % Income Los Angeles 9.42 2.06 13.97 26.81 San Francisco 7.75 1.65 11.49 20.00 New York 2.45 1.22 3.63 17.83 Phoenix 4.82 2.74 7.15 14.11 Seattle- Tacoma 2.45 2.68 3.63 10.85 San Diego 3.09 2.17 4.58 10.58 Dallas- Ft. 2.01 1.89 2.98 10.28 Worth Chicago 1.00 1.46 1.48 10.21 Philadelphia 1.68 1.48 2.49 9.97 Sacramento 2.20 2.77 3.26 9.81 5. Creative Brief Brand Position: We want Harley to be seen as America’s brand. We also want it to be viewed as the ONLY bike one should even consider. We don’t necessarily want to completely re-‐brand what Harley is but we want it to be viewed as a more of a way of life. Buying a Harley will not only save money verse buying a car but it is also buying your way into a club and a way of life. Owning a Harley will allow you to be apart of something that not everyone can be a part of. It is almost like a fraternity that is exclusive to only bike owners. “If you ride a Harley, you are a member of a brotherhood, and if you don't, you are not." For Harley, it is that complex and that simple. All their products spark a feeling, kindle a memory and point to the journey ahead. For Harley management, if it doesn't, it doesn't qualify as a genuine Harley.” (2) Promise: Escape from everyday life Tone: American icon, free spiritedness, rebellious, up-‐lifting, more than a machine, it’s not a way of travel-‐ it’s a way of life, uplifting, humorous Tag line: Escape the Everyday, Life is Calling
Promotions: The quote below describes the importance of promotions and the relationships they create with the consumer. According to Harley, “Our idea is that we are close to the customer. And we’re not just saying, ‘We are close to the customer.’ We are actually riders. We participate in events as riders. I think one of the greatest strengths is the passion and enthusiasm here at the motor company for our riders. We always want to be out, talking to them – whether it be at [big bike rallies like] Sturgis or Daytona Beach or a [local] rally. We want to shake hands with riders and hear what they have to say.” (2) “Harley Davidson’s most important promotional tool is the brand image of a truly American product. Such a tool appeals to the domestic market, and owning a Harley-‐Davidson bike fits well into supporting the national feelings of pride for America.” (3) It will be important not to lose the original brand image of Harley Davidson. 6. Media Mix Objectives Magazines: “Interestingly, Harley never shows people on bikes in advertisements. The idea is that with a Harley-‐Davidson, you can be anyone you want to be." (5) Our magazine advertisements will embrace the tone and spirit of Harley Davidson and create ads consistent with the current Harley brand personality. We want to feature the innovation and make it appeal to the younger demographics. To determine a strategy for where we will place our ads, we analyzed the Harley media data. Based on the highest index numbers for the target audience of those who plan to buy or lease within the next 12 months, we will advertise specifically in Motorcycle, 229, Automobile, 214, Motorcyclist, 269 Car Craft, 243 and Cycle World, 286. We understand these are magazines that currently target car and motorcycle enthusiasts and our competitors most likely have ads in those magazines as well. To expand out to reach our younger demographic of people we also plan to place ads in Sports Illustrated, Car and Driver, GQ and Men’s Fitness. We would like to try to reach a larger audience and generate more interest in the sportier models with the mix of demographics each magazine reaches. Each of these magazines has a circulation ranging from 1 million to 3 million readers according to In Stash. (6) Internet: We want to target a younger demographic so we suggest buying more ads in mobile and search. We want to appear first in all searches related to sport bikes and motorcycles. We want ads specifically on YouTube, we think that it would be effective to be able to showcase our product and brand personality through visual and interactive ads. According to Google Insights, “YouTube has the highest reach, captivating audiences for up to five minutes per session. Also, the richer format afforded by video platforms means ads have a greater impact than on news or social media sites.”(7) For mobile ads we will focus on primarily tablets and smart phones. Radio: According to Harley media data, the most appropriate radio stations to advertise on are Mexican, Tejano, Ranchera, gospel, with a shocking index number of 189, rock, and urban radio for the target market of those who plan to buy or lease within the next 12 months. For the primary riders ages 18 to 44 the most effective, according to the data, are most likely rock, alternative, and all talk radio. We suggest focusing on the target audience that is planning to buy or lease considering they might currently be in vehicles in which they listen to radio more often. We suggest promoting prices or sales promotions considering the younger audience does not have as much expendable income.
Outdoor: Based on the Harley market data we analyzed which market was performing the best in sales. We decided to look specifically at the ages 18 to 34. We plan to place outdoor ads in the markets performing the best in each city including Boston, New York, and Los Angeles. The index numbers for this media outlet was particularly high so the message and creative will have to align with something that attracts the younger demographic. Social Media: According to Randy Sprenger, manager of electronic advertising and direct promotions for Harley-‐Davidson, “One of the greatest advantages for social media is the voice of the customer. We’ll post a question, such as, ‘Are you in favor of darkening the bike out, blackening the bike out or shiny chrome?’ We’ll get customers to comment. It won’t be unusual to receive 300 to 500 comments. It helps us learn what people are saying outside the walls of Harley.” (2) Scheduling and Timing Objective Cycle 1: May/ June/ July Cycle 2: August/ September/ October Cycle 3: November/ December/ January Cycle 4: February/ March/ April Cycle 1 and 2 will consist of a heavier approach to advertising. These cycles are in the warmer, summer months and the cooler fall months. These are the times in which young adults are out of school, enjoying time off, and have more time to spend engaging in outdoor activities. Also, there are many holidays which revolve around the summer and fall months in which we plan to advertise around. Harley also has the opportunity to host promotional events including rallies and such. Cycles 3 and 4 will have a lighter approach considering young adults are back in college or back to work. To investigate further we would need more research on sales by month that we could base our advertising strategy on. Scheduling and Timing Strategies Radio: Radio will be used primarily in cycles 1 and 2. We plan to focus a majority of our spending here and target our demographic while they are out travelling. We will place ads in Pandora as well as specific stations which we have explained in the media strategy. Cycles 3 and 4 will be lighter as we will focus on other media. Outdoor: Outdoor advertising will be used in cycles 1 and 2 as we predict there will be more travel, road trips and promotional events to tie our advertising too. Harley has traditionally been successful in outdoor advertising, we think we the combination of placement, timing, and a unique campaign will lead to consideration from our younger demographic. Internet: Internet will be used in all 4 cycles. Our target audience is the primary users of the internet and we plan to have a constant web presence. We believe this will increase sales, create leads to the Harley website, and reinforce the other media we will be in.
Magazines: We will advertise more primarily in cycles 1 and 2. However, we will stay consistent with advertising in cycles 3 and 4 but will decrease the amount of magazines. Due to the high circulation and mix of demographics we will reach we believe this will strengthen the overall objective to redesign the image of Harley bikes. It is also a great opportunity to provide a visual and brand identity for the new, sportier bikes. Our national approach will include magazine and internet advertising. Along with magazine and internet, we plan to have spot advertising using outdoor and radio in our top ten markets. The following chart justifies why we chose Radio, Magazine, Internet, and Outdoor based on Index numbers in out specific Target Market which is Primary Riders Age 18-‐44. Index Numbers based on Primary Rider Age 18-‐44 Mediums Heavy (I) Radio 151 Magazine 103 Internet 146 Outdoor 149 Budget Objective and Strategies Media Breakdown Budget Strategy Radio $1.3 Million Magazine $3.2 Million Outdoor $6.3 Million Internet $4.4 Million Total= Estimated $15.2 Million
12 Month Flowchart of Schedule with Total GRP’s and cost for each Medium We kept our internet advertising consistent throughout the year and increased it only in December due to an increase in advertising in general from retailers and the auto industry that revolves around the holidays. Cycles 1 and 2 are our heavier periods of advertising so we have increased the ads from 20 in cycles 3 and 4 to 30. We have outdoor advertising in both cycles 1 and 2 to reinforce our campaign and during our heavier time of advertising. We chose to use spot radio advertising during the morning and evening drive because our spots markets are larger cities we predict commuting. We believe this will be the most effective strategy to increase our reach and frequency.
Works Cited 1. "The Future of Harley Davidson." Notions of an Ordinary Kat. Notions of an Ordinary Kat, 11 Dec. 2010. Web. 18 Oct. 2013. . 2. "How Harley-‐Davidson Drives Mobile Marketing, Facebook." AdWeek. AdWeek, 29 Apr. 2009. Web. 18 Oct. 2013. . 3. Thompson, Kevin. "Harley-‐Davidson's Marketing Strategy Overcame Competition." Yahoo Contributor Network. Yahoo, 20 Dec. 2006. Web. 18 Oct. 2013. . 4. Theilfoldt, Diane. "Generation X and The Millennials: What You Need to Know About Mentoring the New Generations." Generation X and The Millennials: What You Need to Know About Mentoring the New Generations. Gen X and The Millennials, 12 Aug. 2004. Web. 18 Oct. 2013. . 5. "Harley Davidson: Marketing an American Icon." Harley Davidson: Marketing an American Icon. Corporate Design Foundation, n.d. Web. 18 Oct. 2013. . 6. "Top 12: Magazines for Men." InStash RSS. InStash, n.d. Web. 20 Oct. 2013. http://www.instash.com/top-‐ 12-‐magazines-‐for-‐men 7. "Evaluating the Effectiveness of YouTube Think Insights Google." Evaluating the Effectiveness of YouTube Think Insights Google. Google Insights, July 2012. Web. 20 Oct. 2013. .
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