Agenda
2
Executive Summary
Background
Key Issue
Analysis
Company
SWOT
Brand Identity
Customer
Quantitative
Alternatives
Assessment Matrix
Recommendations
Executive Summary
3
Background
4
Destination Rallies
" Extremely labour
intensive
Membership
1999...
500,000
Rolling Rallies
" Unique, themed rides that
start and end in different
cities
Background
5
Posse II
Posse I
High adventure,
low cost ride
" Started in 1997
"
"
"
"
"
"
"
Company Analysis
7
Strengths
Attracting new riders
Optimizing the retail chain
Championing retail
excellence
Harley Davidson
Core Values
Teamwork
Accountability
Knowledge
Innovation
Honesty
Initiative
Capabilities
Delivering high quality to retain
customers for life
STRENGTHS
- Consistently high interest in ride
- Strong brand recognition
- High customer loyalty
- Rides are low cost and highly
profitable
WEAKNESSES
- Unorganized ride planning
- Ride is only feasible for a small
percentage of H.O.G. members
- Impossible to develop a single event
that will satisfy everyones needs
OPPORTUNITES
- Baby-boomer retirees could lead to
increased membership
- Many different types/routes of rides
available to maintain interest
THREATS
- Adverse weather could affect ride
route
- Weak economy could reduce sales
and ride revenue
- Negative connotation with Harley
subculture
Service Attributes
Develop social ties
Local chapter newsletters
Local values, but H.O.G. ethos
Ownership benefits e.g. Fly & Ride program
Rallies linking riders together into a broader community
Quality
Our service features
an enhanced riding
experience for Harley
owners who seek
challenging rides and
desire a sense of
camaraderie.
Customer satisfaction
high (3.7 on a 4-pt
scale)
Demand exceeds
supply
Strong brand loyalty
male
The typical customer for H.O.G. is ________
with an
41 and a median household income
average age of ____,
$55,570 They typically hold jobs in the
of ________.
technical
and entrepreneurial fields.
_________________________
Our typical customer is influenced
other Harley owners They are motivated by the
by__________________.
experience the freedom of the open road
need to ___________________________________.
The following needs are not currently being
engagement and connection with Harley
met:___________________________________.
$2,630
Active Member
$465
million
$80
Inactive Member
Customer Response
13
Lifestyle Experience
14
Brand Connection
15
36%
Harley really
understands my needs
46%
19%
I am satisfied with H.O.G.
38%
Intention to Repurchase
16
Pre-Ride Survey
If I were to replace my bike, I'd buy
another Harley.
Bottom 2
Middle 4
Top 2
Pre-ride NPS
82%
Post-ride NPS
100%
18%
Alternatives
17
1.
2.
3.
Assessment Matrix
18
Weight
Improve
Status Quo
Cancel
Brand Connec+on
.50
Protability
.40
Rider Sa+sfac+on
.10
Total
1.0
2.60
2.40
1.00
Recommendations
19
Planning
" Up to one year before ride
Recommendations
20
Execution
" Ride registration to completion
Assigned registration times to avoid long lineups
Have dealers ship riders purchases to head office to
eliminate the need to carry
Invite non-participating H.O.G. members to host events
along the ride route
Designated meet-and-greet with Harley employees
Recommendations
21
Post-Ride
" Evaluation and follow-up
Discussion Questions?
22
Return on Posse II
23
$400,000
$350,000
Average
Profit Margin
is 34.7%*
Additional H.O.G.
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
75%
85%
95%
100%