Emotional Marketing: Why HD don't sell motorcycles.
Recently I ended up trading my VFR-800 sports-tourer for some American metal. I'll explain the reasons for that in another post, but I feel as if I should mention Harley Davidson's marketing as it's been something quite unique.
Harley Davidson's are some of the most expensive bikes on the market but they don't have the best product on paper - not by a long way. "American Made" really means crude, heavy parts (quarter inch thick steel plate is the norm), mostly manufactured in Taiwan and assembled just outside Chicago. The engines aren't very powerful - Harley refuse to provide official power output figures - and use technology that, for the most part, is 20 years or more behind the competition.
So how have they managed to stay afloat?
Because Harley Davidson don't sell motorbikes. Harley instead sell an experience. They sell a dream and the promise of a feeling, an emotion. "Live to ride, Ride to Live" and "All for freedom, #freedommachine" are the marketing slogans that adorn their website and brochures.
There are lots of companies that aspire to this, but the reality is they generally promote a mixture of both product features and emotional expectations. Harley Davidson have mastered ignoring the product almost entirely though.
One bike is described as dark, lean and mean, another as blacked-out, asphalt-devouring muscle. It doesn't matter what each bike has, it only matters how you perceive it and how it makes you feel.
As an engineer, I'd obviously look to compare specifications before choosing one model over another, but Harley don't give many details away. In fact I found it hard to tell the technical differences between many of the bikes and that's because there's not much of a difference - it's pretty much a few frame options and some configuration. But that's the point; it's not about the specification as much as it's about how it looks - and personality is a big thing for the brand.
Whilst Harley have tried to distance themselves from outlaw motorcycle gangs like the Hells Angels, it would be fair to say their marketing presents a freedom, individuality and brotherhood that sits strongly with the outlaw image. Fundraisers were a great cover for the outlaw groups' illegal activities, but they're also a strong part of the (more genuine) charitable work done by modern ownership groups. The Harley Owners Group, HOG for short, create a place for men (and women) to ride in groups wearing their club's 'patch' on their leather waistcoats. These groups aren't just about adding to the image, they're also a key piece of the sales and marketing engine - it's been shown that HOG members spend 20% more on parts and accessories than non-members.
That's because each group must be affiliated with a dealership and most rides will start and end at the dealership. Couple that with a catalogue of over 900 pages of aftermarket parts, all with a very healthy margin, and it's easy to see how regular meets can lead to a never ending trail of small purchases. I must say, I've already spent my fair share on accessories and modifications - rumour has it the bikes ship from the factory with ugly parts on, simply so you have to replace them. I'd say that's pretty true.
Dealerships are also encouraged/required to put on BBQs, live music and events regularly throughout the year to attract non-members back and of course sell more bikes and parts to the regulars. Will I be joining? Well every bike comes with a free first year's membership - so technically yes, I'm now a member of the local group; the Three Rivers Harley Owners Group. Unlike most car or bike owners groups Harley really do sell the 'family' mentality to it, with meets every week or more. Yet again, this is another opportunity for the well oiled marketing machine to come out; lifetime membership attracts a special pin badge and patch for your jacket, plus every anniversary you receive another patch marking your achievement to pay the brand more money. Forget to renew, and you're back to year one though! There's also badges for mileage accomplishments, specific ride outs etc. HD were clearly early and prevalent adopters of gamification.
Alas, as strong as the marketing is, sales for Harley have been in steady decline for a while. In a recently declining market, their bikes are too expensive for the young, leading to an ever ageing ownership - think the Sons of Arthritis instead of the Sons of Anarchy - despite new smaller and cheaper models being brought out.
Will I be getting myself a leather waistcoat to display my 'cut' on the back? Probably not, I'm still probably 20 years too young to fit in, but who knows?
