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INTEGRATED MARKETING

COMMUNICATIONS PLAN

HARLEY
DAVIDSO
N

Nerea Gmez lvarez


C7153957
BA (Hons) Marketing

CONTENTS
1.INTRODUCTION
2
2.- SUMMARY OF CONTEXT
ANALYSIS.3
3.- COMMUNICATION
OBJECTIVES.4
4.- PROMOTIONAL
STRATEGY..5
5.- COMMUNICATION
MIX6
6.- IMPLEMENTATION
PLAN..9
7.- CONTROL AND
MEASUREMENT.11
8.APPENDICES
12
9.BIBLIOGRAPHY
..18

1.- INTRODUCTION
The purpose of this integrated marketing communications campaign
is to promote the opportunity to test drive and experience electric
motorcycle LiveWire launched by Harley Davidson, within the UK
population. A context analysis has been developed to understand
the current situation of the brand in terms of external and internal
influences so that the plan can be developed with these factors in
mind.
Objectives will be set alongside the relevant strategies, which will be
implemented to reach particular targets. Relevant target groups
have been identified via the breakdown method mentioned by Fill
(2013), segmenting the market into behavioural, psychological and
profile criteria (Fill, 2013).
A marketing plan and communications mix will be presented to
support the promotional objectives. The communication mix will
involve trade shows and exhibitions, personal selling, word-of-mouth
communication, digital media and social media. Costs, scheduling
and control of the strategies will be calculated and measured over
the designated seven-month plan (June to December 2015), driven
by the use of an arbitrary budget.

2.- SUMMARY OF CONTEXT


ANALYSIS
2.1.- STRENGHTS
Harley Davidson has developed a strong brand equity, making the
products memorable and easily recognizable and. It would help to
cause greater acceptance of the LiveWire by the audience. The
operational efficiency of the brand is useful to achieve a profitable
LiveWire placement. In addition to a loyal customer base, the
innovation of the product may draw the attention of many potential
customers. Another advantage of the brand is the high quality
products and the variety of them, which make consider the brand as
an icon of freedom.
2.2.- WEAKNESS
The target that the brand is focused on is very limited and specific
(discussed later), leaving out of the buying decision much of the
market. So violent changes in the product offered could produce a
rejection of the existing customer base of the brand. Bad
experiences or problems with the new product may cause recalls
and the loss of both current and potential customers. This can not

be allowed considering the high price of the products, which can be


another disadvantage when making purchasing decisions.
2.3.- OPPORTUNITIES
The company's business activities into several countries could be a
big opportunity to increase sales and implement the acceptance of
the new product launched. Furthermore, the emergence of a new
product can contribute to the interest and attract the attention of
younger targets. Also thanks to the appearance of Internet is much
easier to promote the electric motorcycle. The future regulations on
market can be a great advantage when acquiring a more ecofriendly motorcycle too.
2.4.- THREATS
The competitive landscape in the world of motorcycles is too broad
and this can be a problem in making purchasing decision. Moreover,
consumers have less disposable income from the recession and the
seasonality of the market would not contribute.

3.- COMMUNICATION
OBJECTIVES
3.1.- PROMOTE AND IMPLEMENT THE NEW
LIVEWIRE
Getting a new product out for customers to see and try out is the
first step in selling that product successfully. Even the best product
will do little good for the public if they do not know it exists.
Therefore, business owners or marketing professionals must utilize
various marketing techniques to guarantee that the right audience
knows about the product and that they receive the knowledge as
effectively as possible.

The launch of this new electric motorcycle Harley Davidson has to


be promoted through the various actions and techniques specified
along the marketing mix plan. The aim is to implement market the
product in a new and satisfactory manner, to convince the customer
for the further acquisition.

3.2.- PRODUCT POSITIONING OF THE


LIVEWIRE IN THE CONSUMER MINDS OVER ITS
COMPETITORS
Louis E. Boone and David L. Kurtz, in their book Contemporary
Marketing, state that: "Product positioning refers to consumers'
perceptions of a product's attributes, uses, quality, and advantages
and disadvantages relative to competing brands. Marketers often
conduct marketing research studies to analyse consumer
preferences and to construct product position maps that plot their
products' positions in relation to those of competitors' offerings."
For this project it has been analysed in detail the external and
internal context of the company and it has also been deeply studied
the characteristics of the target at which the product is intended.
Thanks to these data a positioning plan has been developed to
understand the consumer mind and to get our product more desired
than the competition range.

3.3.- CATCH THE ATTENTION OF A YOUNGER


AUDIENCE
Gain the trust of the audience in this new product is a difficult
challenge that in this case can be achieved by catching the
attention of beginner riders and a younger target (See appendix
8.2).

4.- PROMOTIONAL STRATEGY


4.1.- MARKET SEGMENTATION

During the market segmentation process, the breakdown method


(Fill, 2011) was used to reach a specific demographic,
geodemographic and behavioristic segmentation base. The
campaign target is 25-34 years old, placed in Mosaic UKs
demographic classification groups D (16, 17), H (34, 36), M (56) and
O (62, 64) and type 3-5 of Acorns profiles. Therefore, the
differentiated targeting approach will be adopted for this campaign
as the marketing mix will be chosen in light of the emerging market.

4.2.- POSITIONING
Although the target audience for the launch of this new product has
changed (especially in terms of age) the brand wants to keep
maintaining its principles of freedom, wildness and rugged
individualism; that differentiate them from other competitors. We
also want to place the LiveWire in the consumer's mind as one of
the most eco-friendly motorcycles in the market.

4.3.- PULL STRATEGY


This marketing plan will use mostly below the line promotion and a
pull strategy to communicate with its publics. With the use of trade
shows
and
exhibitions,
personal
selling,
word-of-mouth
communication, digital media and social media; this campaign will
be able to communicate on a large scale and at a reduced cost. A
pull strategy has been chosen because this will create dialogue with
the consumer and generate feedback, which is really important
when considering that this is a completely new product. By
promoting the driving test on a more personal scale this can help
build business-consumer relationship whilst creating a demand for
the product.

5.- COMMUNICATION MIX


The promotional strategies that have been chosen for the purpose
of this plan are part of the overall effort to communicate with its
customers about the Harley Davidsons product LiveWire. The tools
that have been selected in the mix best suit the strategies and the
objectives set forth previously.

5.1.- TRADE SHOWS AND EXHIBITIONS


Our main tools for the marketing mix are the exhibitions and trade
shows. There are many reasons to use exhibitions, but the primary
ones appear not to be to make sales or because the competition
is there but because these events provide opportunities to meet
potential and established customers and to create and sustain a
series of relational exchanges (Fill, 2013).
Li (2007), cited by Geigenmller (2010), stresses that the impact of
trade shows on the development of valuable, long-term buyer-seller
relationships is important. Shipley and Wong also state that the
objective is to exchange information about products, services and
corporate developments.
For these reasons, and seeing the communication trajectory that
has developed the brand, trades shows and exhibitions are a
great option to introduce our new electric motorcycle LiveWire new
customers by the driving test. In this kind of motorcycle events the
product features will be carefully presented, letting the future
customers ask questions about it to experts (from which they
receive immediate feedback)...
Also in these fairs Harley Davison provide the opportunity for
potential buyers to enjoy a free test drive to check the effectiveness
of the new product. So customers can have the experience of
driving this electric motorcycle provides compared to the
combustion engines and to those offered by other competitors.
In addition, open house days will also occupy an important place
in our activity to show the benefits and advantages that the
LiveWire offers compared to similar products. Thanks to this events
in different places of the United Kingdom, professionals specialized

in this type of motorcycles will exhibit and promote the driving test
of this new product.
Multiple motorcycle tours that take place in this country will
promote the launch of the new product, encouraging the objective
target to acquire and test the LiveWire. A great advantage will be
the large attendance at these events, so it will be easier to catch
the attention of future purchasers or potential interested customers
in these eco-friendly products.
In these trade shows, exhibitions, open house days and motorcycle
tours, brochures will be distributed to interested people and
potential buyers so that later it will be easier to measure how many
people have heard about the release.

5.2.- PERSONAL SELLING


Like so many enduring brands, Harley-Davidson has recognised that
the key to sustainability of both demand and price lies in creating an
organisation that supports the brand with excellence, not only
through engineering, but also through a fantastic service and
personal selling. This strategy ensures that the brand delivers its
promise every time, and delights each customer in a special and
specific way. Delighted customers come back for more, and tell their
friends (Word of Mouth), so the community grows.
Harley Davidson certainly sells motorcycles; they are engineered to
a philosophy spurned by many, but loved by devotees. Far more,
though, Harley Davidsons dealers will sell a passport to a brave
new world, passion, friendship and excitement but respectful with
the environment: an enduring experience, in a world which is
increasingly willing to pay for the privilege.
The formula to achieve this involves a variety of things, some
tangible, such as guarantees of environmental sustainability, some
ephemeral, such as the feeling of kinship gained from employees
that share the customers passion. So by the treatment of dealers
from the nearest stores, it will be much easier to gain the trust of
the customers in the new electric motorcycle launched and this will
catch the attention of many potential purchasers to try the driving
test.

5.3.- UNCONTROLLED ACTIONS

Advantages of Harley Davidson brand are the involuntary actions


(uncontrolled) caused through their actions. The customers
themselves or brand lovers bother to make promotion of it. The
places where this exchange of opinions and news on developments
of new products occur are the local chapters or H.O.Gs (Harley
Owners Groups) distributed throughout the country. These places
allow people share a passion for Harley-Davidson motorcycles to
come together. When joining a local chapter, customers always have
plenty of opportunities to meet with friends, have fun, support
worthy causes, and ride the new LiveWire!
If participants in this kind of groups are convinced of the advantages
of the new product, they themselves will provide information to
interested persons and encourage their friends to find out about the
LiveWire driving test (Word-of-Mouth communication). They
become personal sellers and impellers of the release in an
involuntary way.
The actions taken previously also help create publicity by the
traditional media, which will help in attracting new customers and
interested persons. They will make a great promotion of the textdrives and the new product and it will become possible for the
LiveWire to appear for free in magazines or reports related to the
motor world.

5.4.- DIGITAL MEDIA AND SOCIAL MEDIA


All movement and news of the brand are mainly transmitted through
the website, which is complemented by the app (available on
Android and App Store). These online spaces comprise the
cornerstone to get access to all information and features about the
LiveWire and the events and test-drives in which the release of the
motorcycle will be promoted.
Social networks like Facebook or Twitter also exert an important
role in launching the new product (reporting on the features and
dates of the remaining actions belonging to the marketing mix).
They allow interaction with potential purchasers, providing answers
to questions, instant feedback...
Obviously, all the above actions (personal selling, trade shows,
exhibitions, open house days, guided tours, HOG's and local
chapters) will guide interested people to the web site or app via bidi
codes. It will also encourage the customer to participate in social
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networks via post, likes, tweets... that will attract new people to
become interested in the novelty.
According to the Chartered Institute of Marketing (2013) social
media and mobile marketing are now increasingly important means
of reaching Harleys highly mobile target groups, and forming a
community of riders. Over five hundred dealerships have Facebook
page, and the company provides good materials to enable them to
customise and maintain these and to keep them fresh. Tweeting has
also become an important and very international tool.

6.- IMPLEMENTATION PLAN


6.1.- COSTING
It was based on an arbitrary budget (Fill, 2011). The table provides
costs for each communication tool as well as the total cost for the
campaign. The campaign will cost 53.640 in total.

COMMUNICATION MIX
Trade shows and exhibitions
Open house days

COST
1.500 per exhibition x 24
exhibitions = 36.000
7,5 per hour x 2 staff persons =
15
15 x 6 hours a day = 90
90 x 6 days a week = 540

Motorcycle tours

540 x 6 months = 3.240


1.200 per tour x 12 tours =

10

Personal selling

Local chapter or H.O.Gs


(Word-of-Mouth
Communication)
Publicity
Social networks and digital
media

TOTAL

14.400
The same amount that the
company already paid its staff
sellers before.
0

0
0

53.640

6.2.- SCHEDULING
The campaign is designed for a total of 7 months and it is divided in
two parts:
Before the launching (June):
The webpage, the app and the social networks will
announce during the first month the release of the new
electric LiveWire. These sites will begin to provide the first
data of the product (but not too much to cause intrigue among
the public) as well as information on campaign events and
places that the test-drives will be launched.

After the launching (July-December):


Four trade and exhibitions will take place once a week. So it
would be 24 exhibitions and trade shows in total.
The open house days will take place during six days a week
(Monday-Saturday) six hours a day.
The motorcycle tours will take place twice a month. So it
would be 12 tours in total.
Local chapters or H.O.Gs will always be open to the public
and the exchange of opinions will be possible at any time after
the release of the LiveWire and the test-drives.
The social networks and the webpage will be always
updated, showing real time information on events or news
related to the launch of the new motorcycle and the testsdrives.

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7.- CONTROL AND


MEASUREMENT
Thanks to the brochures distributed during the trade shows,
exhibitions, open house days and motorcycle tours, it will be easy to
measure the number of people informed about the release of the
product. Also, using tools such as Google Analytics and counting
the likes, posts and tweets related with the campaign it can be
measured the estimated amount of people who have search
information about the Live wire. The number of free media
appearances (publicity) will also be a good guide for calculating the
audience that the campaign has reached. Another tool of control,

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and perhaps the most valid, is the number of people that will want
to try test-drives of the LiveWire after the campaign.

8-. APPENDICES
8.1.- EXTERNAL ENVIRONMENT
PESTEL ANALYSIS
POLITICAL + LEGAL
Safety regulations
Fuel use regulations
Pollution restrictions

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We have to consider the modification of laws and safety regulations


that the new vehicles on the market must comply. Moreover, we
must also observe and control the rates of use of fuel on
motorcycles, to take in moderation raw material required
(petroleum). Additionally, UK government is increasingly more
committed to the environment and seeks to reduce pollution levels
emitted into the atmosphere.
ECONOMICAL
Global recession is affecting UK economy
Employment slowly recovering
Increase in the prices for raw materials in
manufacturing
The global crisis has affected the economy of British citizens,
creating unemployment among the population. Therefore the level
of investment in vehicles has declined significantly in recent years,
strongly affecting the industrial sector. In addition, prices of raw
materials have become more expensive, making the cost of
manufacturing even more expensive.
SOCIAL
Masculine biker image
Media and advertising have contributed to create a strong
masculine image displayed in the automotive world. Motorcycles are
associated with masculinity and this image is deeply rooted in
society. Therefore, it is a difficult task to get moving this fame to the
feminine world.
TECHNOLOGICAL
Increase efficiency of engines
Research funding
Technological advances are continuously improving over the years
and allow a change for the better in the product market offering.
Research funding and development programs have allowed the
technological advances in the automotive world, increasingly
enabling the production of efficient vehicles and engines.

ENVIRONMENTAL
High environmental impact
Decrease in the amount of raw materials
The raw materials needed for the manufacturing of motorcycles are
increasingly in short supply and therefore the purchase price goes
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up gradually. In addition, emissions from these vehicles potentially


affect the environment, increasing pollution levels.

8.2.- CUSTOMER CONTEXT


According to the Chartered Institute of Marketing 2013 the regular
Harley-Davidson customer (end-user) is an educated married male
in his mid-forties with a household income of $78,600. However,
Harley Davidson states in their website that the most basic way to
define our target public is young men and women between the ages
of 25 and 34. But, that would be insufficient. The people we want
to target are much more complex, much more real.
In general, they want to target those with the fire of rebellion
inside, aching to break from the daily monotony. Responsibility is not
lost on them they want to succeed as well as keep their
freedom.
Among Harley owners a vast percentage are fiercely loyal. One
devotee categorizes loyalty to Harley-Davidsons in the following
manner: There are two types of Harley riders, those who if HarleyDavidsons were no longer available would just stop riding
altogether, and those who are devoted to motorcycles first, and who
happen to like Harleys.
Baby-boomers (people born between 1946 and 1964) are exiting the
scene and being replaced by a possibly a bigger generation of
buyers who are not only younger, but more Hispanic, not as likely to
be married or have children, and likely to be less rural. The new
generation of potential buyers brings unfamiliar spending habits,
personal values and retail demands.
Harleys pursuit of a sustainable target market indicates the need to
engage with the younger generation bikers. LiveWire launching
project can be a great opportunity to draw attention to the younger
market niche and achieve a new generation of loyal customers. This
target segment is living in a critical point in their lives, they truly
defining who they are.
These young people have a fresh, entrepreneurial spirit, who break
from the ordinary life path and forge their own way. There is no
better way than buying an innovative and exclusive product on the
market, a product that additionally comes from a great brand that
guarantees its effectiveness.
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The vast majority of young adults (67%) live under their parents
roof. Thus, young people living at home are more carefree, and
better able to socialize, enjoy their freedom, and to make capital
purchases such as a car or motorcycle. They are also tech
experienced, leading the way in smartphone ownership, and
expecting to access information on the go (through apps) or the
Internet.
According to the Chartered Institute of Marketing 2013 this group
are serious and practical in their outlook, with educational pursuits
(42%), saving money (40%), improving job prospects (31%) and
getting a job (31%) being their main concerns, whilst only 15% focus
on partying, having a more varied social life, or going on holiday.
Living in the multimedia society, they have more awareness of the
issues they are facing, as well as ways to reduce the impact of those
issues on their long-term future.
CUSTOMER CONTEXT (MEDIA THEY CONSUME)
According to the Adults Media Use and Attitudes Report computer,
mobile phone and hand-held devices all have higher levels of use
among younger age groups. Almost three-fifths (58%) of all 16-24
year old media engagement is through one of these devices,
compared to 18% for people aged over 55. By contrast, use of the
more established devices and media, such as TV sets, radio sets,
and print, generally increases with age.

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As shown in the chart, television and computers top the list of


devices most used by our target (young adults between the ages of
25 and 34). These media are followed by radio and smartphones.
Therefore, this illustrates that although the level of traditional media
remains influential, more and more users choose to use the new
technologies that allow Internet access from multiple platforms.

8.3.- BUSINESS CONTEXT


In the United Kingdom there are two companies that sell exclusively
electric motorcycles: Brammo and Zero. Both companies could be
great competitors if we consider their experience with electric
engines. Also the range of products they offer is quite wide and
varied, offering customers many options to choose from.
However, these brands are not as well known as those that produce
combustion motorcycles. Between these traditional companies are
numbered models of electric motorcycles and scooters.
Nonetheless, many of these products have not yet been
commercialized and the projects of manufacture and sale are being
analysed. Which have been identified as possible more powerful
competitors in the UK market are the product range BMW C
Evolution, the Suzuki Extrigger and the Yamaha PES1 and PED1.

8.4.- INTERNAL ENVIRONMENTAL


SWOT ANALYSIS
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STRENGHTS
Strong brand equity making the products memorable,
easily recognizable and superior in quality and reliability will
cause greater acceptance of the LiveWire by the audience.

Operational efficiency brand experience when cut costs,


increase revenue, improve management and control and
make the best use of assets will help the profitable LiveWire
placement.
Loyal customer base retaining customers is less
expensive than acquiring new ones, and customer experience
management is the most cost-effective way to drive customer
satisfaction, customer retention and customer loyalty.
Innovation of the product electric motorcycles are still
not widespread among society but its new appearance on the
market may draw the attention of many potential customers.
Moreover, electric seems to be the next big trend in
motorcycling. According to Forecasts Navigant Research 55
million electric motorcycles and scooters will be sold
worldwide from 2014 to 2023. Electric engines offer almost no
noise, no vibration, total linear power availability and no
moving parts.
High quality product and good product range
the group of features and characteristics of the brand and the
product range determine a great desirability and acceptability
among the market, so it will be easier to implement the
electric motorcycle in the niche.
Considering the brand as an icon Harley Davidson fills a
void in the customers lives or provides them with experiences
that make them feel emotionally connected to the brand and
the sub-culture of people who experience it together. Richard
F. Teerlink, Harley Davidsons former chief executive, said: Its
not a hardware; it is a lifestyle, an emotional attachment.
Harley Davidson symbolises freedom, rugged individualism
and a sense of bad rebellion.

WEAKNESS
Product recalls/issues bad experiences or problems with
the new product may cause recalls and the loss of both
current and potential customers.
Prices of motorcycles product price and high
involvement required could affect decision making by the
audience.

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Limited customer base, not diversified. Aging customer


base the target that the brand is focused on is very limited
and specific (discussed later), leaving out of the buying
decision much of the market. So violent changes in the
product offered could produce a rejection of the existing
customer base of the brand. Furthermore, aging customer
base could affect dealer service profits.

OPPORTUNITIES
Global expansion the company's business activities into
several countries in several regions throughout the world
could be a big opportunity to increase sales and implement
the acceptance of the new product launched.
New product launches the emergence of a new product
can contribute to the interest and attract the attention of new
targets, increasing the market brand niche.
Popularity in racing bikes the popularity of motor sports
and racing bikes can encourage the purchase of new
motorcycles models and help to promote them.
Increased use of the Internet thanks to the appearance
of Internet is much easier to promote the electric motorcycle
and find new customers, despite continuing loyalty of the
above.
Future regulations on market future market regulations
are increasingly demanding low levels of pollution to the
atmosphere and controlling the use of raw materials such as
oil. This can be a great advantage when acquiring a more ecofriendly motorcycle.
THREATS
Competitive landscape the competitive landscape in the
world of motorcycles is too broad and this can be a problem in
making purchasing decision.
Consumers have less disposable income from the
recession the global crisis has caused a decline in
purchasing these products and the customers have less
disposable income to spend on new products.
Seasonality of motorcycle market the market
seasonality is a disadvantage when purchasing LiveWire. The
weather in the UK does not allow its use too long and dry days
are rare compared to other countries.

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9.- BIBLIOGRAPHY
Acorn (2013) The consumer classification.
Boone, L. E. and Kurtz, D. L. (2012) Contemporary Marketing.
Cengage Learning.
Chartered Institute of Marketing (2013) Delivering Customer Value
through Marketing.
Customer
loyalty Beyond
Philosophy.
Available
at:
http://beyondphilosophy.com/customer-experience/customer-loyalty/
(Accessed: 9 November 2014).
Demographics Harley Davidson. Available at: http://investor.harleydavidson.com/phoenix.zhtml?c=87981 (Accessed: 25 October
2014).
De Pelsmacker, P., Guens, M., and Van Den Bergh, J. ( 2010)
Marketing Communications: A European Perspective Harlow. FT
Prentice Hall
Event
Calendar. Harley
Davidson
UK.
Available
http://www.harley-davidson.com/content/hd/en_GB/home/events.html (Accessed: 10 October 2014).

at:

Fill, C. (2013) Marketing Communications. Pearson.


Financial and Strategic Analysis Review (2013) Global Data.
Available
at:
http://callisto.ggsrv.com/imgsrv/Fetch?
banner=4d609cd7&digest=27b6b6d33026b58ef227e0025dda7d42

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&contentSet=SWOT&recordID=47405_GDAUT29887FSA (Accessed:
5 November 2014).
Geigenmller, A. (2010) Journal of Business & Industrial Marketing.
Emerald Group Publishing Limited.
Harley Davidson UK. Harley-Davidson UK. Available
http://www.harley-davidson.com/content/h-d/en_GB/home.html
(Accessed: 10 October 2014).

at:

Holt, D. B. (2004) How Brands Become Icons: The Principles of


Cultural Branding. Hardvard Business Press.
Mosaic United Kingdom (2013) The consumer classification of the
United Kingdom.
Operational
Efficiency
(2006) Investopedia.
Available
http://www.investopedia.com/terms/o/operationalefficiency.asp
(Accessed: 9 November 2014).

at:

Percy, L. and Elliott, R. (2009). Strategic Advertising Management.


Oxford University Press.
Shimp, T. (2007). Integrated Marketing Communications
Advertising and Promotion. Thomson South-Western.

in

What is brand equity? Definition and Meaning Business Dictionary.


Available at: http://www.businessdictionary.com/definition/brandequity.html (Accessed: 11 November 2014).

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INTEGRATED MARKETING
COMMUNICATIONS PLAN

LINKEDI
N
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PROFILE

Nerea Gmez lvarez


C7153957
BA (Hons) Marketing

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INTEGRATED MARKETING
COMMUNICATIONS PLAN

BLOG

Nerea Gmez lvarez


C7153957
BA (Hons) Marketing

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http://sponsorshipbeckett.blogspot.co.uk/

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