Question

In: Operations Management

Harley-Davidson, a U.S. brand synonymous with beauti- ful motorbikes, inspires many to own its customized bike...

Harley-Davidson, a U.S. brand synonymous with beauti- ful motorbikes, inspires many to own its customized bike with iconic engine. Today the brand is sought after not only in the United States but globally too. What explains its wide global acceptance, and the strong sense of brand loyalty among Harley-Davidson motorbike owners? Harley-Davidson dealers, ranging from the CEO to the sales staff, maintain personalized relationships with customers through face-to-face and social media con- tact. Knowing customers as individuals and conducting ongoing research to keep up with the changing expecta- tions and experiences helps Harley-Davidson to define its customers’ needs better. Current customers have told Harley-Davidson’s man- agement to keep the identity, look, and sound of the motorcycles because they are unique. Globally, custom- ers accept the U.S. brand image as it stands. When customers’ views are heard and accepted by manage- ment, customers develop greater brand loyalty, creating an extraordinary customer experience that is unique and valuable. Buying a Harley allows owners to express their individualism and freedom, connect with friends, and share a sense of comradeship through the activities of H.O.G., the company-sponsored Harley Owners Group and riding club. Owners of new Harley-Davidson motorbikes enjoy free H.O.G. membership in the first year. If renewed, mem- bers can enjoy various discounts and benefits.Examples of events and activities that are sponsored by independent dealerships, such as Harley-Davidson of Singapore, can range from short rides and major destina- tion rides, to local charity events. H.O.G. members are also invited to events, such as new model launches, and riders’ appreciation nights. Dealers in each country sup- port H.O.G. members and foster positive bonding rela- tionships among members and other dealers. In Singapore, for instance, a community of friends rides Harley-Davidson motorcycles with a passion. “We ride ’em, and we have lots of fun! And we’ve been do- ing it since 1996 in Singapore.” “To Ride and Have Fun” is a motto that all H.O.G. chapters around the world follow. Riders associate riding with other owners as a time of bonding that conveys the image of freedom and adventure. Membership in H.O.G. has increased. Now not only men but women, children, and families are a part of H.O.G.’s many and varied group outings and activities. Harley-Davidson has developed a strong brand image and consumers appreciate it even more by experiencing it firsthand. The desire to be associated with the Harley- Davidson brand is strong because it is linked to an aspi- rational lifestyle. There are more than 2,000 H.O.G. members in Malaysia alone, with around 500 active riders. The Southeast Asia Harley Owners Group (SEA HOG) orga- nizes rallies and rides as well as charity events. In late 2013, a two-day event followed by a five-day riding tour attracted 800 owners to celebrate the 110th anniversary of the brand.Some H.O.G. members around the world ride in ral- lies every Sunday, rain or shine, displaying a strong sense of loyalty to the Harley-Davidson brand. In Hong Kong, H.O.G. members include professionals, like doctors, law- yers, accountants, pilots, engineers, movie stars, and business executives. Their participation shows the strong brand loyalty among Harley-Davidson owners and the strong desire to be engaged in H.O.G. members’ activities. Proactive in people development, Harley-Davidson shares company values, philosophy, and brand experi- ence with its staff and provides effective communication to its independent dealers. Professional training by members of the Harley-Davidson University in the U.S. encour- ages consistent service at every dealership. Thus, Harley- Davidson’s employees around the world can be confident about providing the genuine Harley-Davidson experience. Satisfied employees deliver outstanding services that gen- erates sustainable customer and brand loyalty, positive word of mouth, and ultimately higher company sales. To remain competitive, Milwaukee-based Harley- Davidson has started to enlarge its customer base and successfully connect with new, younger riders by way of social media applications, such as Facebook and Twitter. Engaging relationships have been established with young adults who form a large part of its global followership. Important feedback that Harley-Davidson’s strong brand name remains appealing to the younger audience is encouraging. Harley-Davidson also makes in-person connec- tions with potential riders at music festivals by usingdynamometers to create an interactive experience called Jump Start, which allows novice or non-riders an oppor- tunity to feel what it’s like to ride a Harley-Davidson. In 2008, it became the leading manufacturer of motorcycles to sell to customers younger than 34 years without changing the products too drastically or lowering its prices. Harley-Davidson merely modified some design elements for its Dark Custom series of motorcycles, which consists largely of existing Harley-Davidson motor- cycles but with flat black paint, much less chrome, and toned-down styling. It portrayed its heritage message of freedom, uniqueness, individual expression, and shared experience as recognized by older customers. Questions 1. What has Harley-Davidson done with its H.O.G. pro- gram to create an extraordinary customer experience that is unique and valuable to its members? Has the motorcycle manufacturer been successful? 2. To enlarge its customer base, what would you rec- ommend Harley-Davidson do to cultivate long-term relationships with a younger audience, aged between 18−34?

Solutions

Expert Solution

Ans 1) The Harley Owners Group or the H.O.G program developed by Harley Davidson gives the owners of Harley Davidson motorbikes to enjoy free membership in the first year and if renewed the members can enjoy various discounts and benefits. The members of H.O.G are also invited to events, such as new model launches and riders' appreciation nights. In this way, members feel valued when they are invited to such special events. When customers buy a Harley Davidson bike it gives them to express their individualism and freedom, connect with friends and share a sense of comradeship through the activities of H.O.G.

Yes, the motorcycle manufacturer has been successful as it can be seen from the case that Harley Davidson has developed a strong brand image through these activities and some of the members of H.O.G ride in rallies every Sunday despite rain or shine which shows a strong sense of loyalty to Harley Davidson brand. The participation of different members from all around the world displays the strong brand loyalty among Harley Davidson owners and the strong desire to be engaged in H.O.G members' activities.

Ans 2) To enlarge its customer base and to cultivate long term relationships with a younger audience aged between 18-34 I would recommend them to engage their audience by asking about their opinions on what they want from the bike, what features they would like to be added and in this way customers will feel that they are important to the company and will develop long term association. Another way to cultivate long term relationships is to provide solutions to them immediately when they have any kind of concern or are facing any issues regarding their bike and never take any kind issue as a small one and keep it to do later because when companies give proper attention to their customers then they feel good and will spread good things about the company and will recommend their friends to buy a bike from the particular company and in this way customer base of that company will increase substantially.


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