Magnetic Media Harley-Davidson Media Plan

December 12, 2013

Executive Summary

The objective of this 2014 year long branding campaign is to increase awareness of Harley Davidson Brand motorcycles within the younger user population of males 18-34 by 15%. Our target market size is 384,520. Our Hierarchy objective includes increasing positive attitudes of Harley Davidson motorcycles among the young males. Our action objective is to increase the amount of website visits by 15%.

Executive Summary cont’d For young males, Harley Davidson is the stylish yet timeless choice for

motorcycles because of the sleek unique style and trusted reputation. Our media objectives will use pulsing R/F strategy to reflect seasonality of motorcycle sales, advertising only seven months (March-September) out of the year through Internet, Cable TV, Magazine, and Outdoor advertisements. Our highest reach will be during the months of May, July and August due to seasonal demands and reflection of the beginning and ending of the academic school year. Mid-level reach is in the months of March, April, and June for these reflect prime motorcycling weather. Our lowest level of reach is in the month of September as free time and summer adventures wind down.

Executive Summary cont’d With a budget of $10,000,000, 40% of our budget allocated to Cable TV

ads, with :30 sec units on ESPN, Discovery Channel and the History Channel during evening and weekend primetime. These vehicles were chosen because of the higher viewing rates among the target market. Thus, 20% of our budget will go into Banner Ads on Google Maps and Yahoo! Mail. These websites were chosen based on number of visits to these sites by motorcyclists. These sites are used as reference for weather and updated news. We will spend 25% of the budget on outdoor media specifically in major cities in the southern region. The remaining 15% of the budget will go into full page spreads in Car and Driver Magazine and Parade Carriers Newspaper. These publications have the most readers among motorcyclists.

Also, we suggest implementing social media tactics including viral hashtags and word of mouth through Twitter and Facebook to increase reach in prospects.

History of Harley-Davidson 1903, Arthur & Walter Davidson and Bill Harley built the very

first HD motorcycle They used a 3 horsepower engine and designed the unique loop

frame, signature to Harley-Davidson 1907, HD had 150 motorcycles built 1909, HD Motor Company introduced first V-twin powered

motorcycle Later in 1909, HD employed 18 people and expanded to a

2,380 square foot building 1920, HD became the largest motorcycle manufacturer in the

world, with dealers in 67 countries. Also in 1920, only 13 after incorporation, HD basked in an

incredible 5000 percent increase of sales.

History of Motorcycles1885: First motorcycle invented by Gottleib Daimler

1903: Harley-Davidson Motor Company is founded

1948: Honda Motor Co., Ltd. is founded1955: Yamaha Motor Co., Ltd. is founded

Recent Sales Figures (in percent)

Harley Davidson Honda Yamaha

-14

-10

-6

-2

2

6

10

US

worldwide

Motorcycle Market Share 2012 in the US

Brand Sales Analysis HD’s net income for the 3rd quarter of 2013 was $162.7 million - $0.73

per diluted share, in comparison to $134.0 million - $0.59 per diluted share in the 3rd quarter of 2012

Operating income from motorcycles increased $30.7 million (21.2%) from last years 3rd quarter analysis due to a stronger product mix, model year price increases, a 2.3% increase in motorcycle shipments and lower reconstructing costs

In the 3rd quarter of 2013, HD began shipping 2014 motorcycles including Project Rushmore – it’s new line of touring motorcycles

Operating income from 2013 increased to $76.1 million from $72.4 million in 2012

Quarterly Sales

2013

2012

0 20 40 60 80 100 120 140 160 180

162.7

134

Third Quarter Sales for 2012 & 2013

Sales in millions ($)

Category Sales Analysis

Competitive Media Spending Analysis – Ad$pender

General Product

Heavyweight and highway cruising Dates back to 1903 One out of two motorcycle manufacturers to survive the

Great Depression 5 different models

Touring Softtail Dyna Sportster Vrod

Touring

Softail

Dyna

Sportster

Vrod

Places of Distribution Sold at dealerships worldwide Dealerships located in heavily populated areas of potential

customers Dealerships originated in Milwaukee, Wisconsin

They provide accessories, merchandise, and knowledge of motorcycles

The first international dealership was founded in Brazil in 1998 Motives:

Take advantage of free economic zone Market to southern hemisphere

Original HD Dealership 1903

Original V-twin powered motorcycle

Promotional tools

Harley Owners Group “HOG” - Loyal Harley-Davidson owners that achieve special offers as apart of their membership Members spend 30% more time with of Harley riders

Main theme of advertising: female images 93% of HD riders are male

Interactive and informative websites – dealer and product oriented

American made – buyers find comfort in trading domestically and take pride in supporting American merchandise

Marissa Miller modeling a V Rod

The HOG life

Price

Ranges from $8,000 to $40,000 with 30 different models in 6 product categories

New campaign targeting to young adults and other market minorities – known as the “outreach market” Harley introduced a new motorcycle for the outreach market called the Iron 883 Sportster and priced it at $7,999 for target appeal

Problems

Harley has a very specific market, pertaining to mostly white men above age 40 in the middle and above financial class.

HD only markets to about 40% of motorcycle owners in the United States.

The HOG theme overshadows the overall brand of what HD has to offer other demographics.

Opportunities The opportunity to create a new ad campaign marketing to males and females in a younger age group and from a different background than the normal.

To market to people in different financial situations than the usual by making their motorcycles seem more beneficial fuel wise.

Make HD seem more like a road bike for day-to-day use instead of open road cruising.

Marketing Objectives(Provided by the client)

The objective of this 2014 year long branding campaign is to increase sales volume of the Harley-Davidson brand motorcycles within the younger user population by 15%.

Target Market

Brad is a typical twenty six year old guy from the south who knows how to hold his own. He wears a hard hat and steel –toed boots to his job site and after the day is done swings by the flower shop to buy a single red rose for his newly wedded wife at home. There’s no “bun in the oven” so he’s not looking for a minivan just yet. He wants a vehicle with sleek lines and sex appeal that only he and his wife can travel on from coast to coast with nothing but their backpacks on.

Qualitative Psychographic Profile of Target Market

Marketing Objective

The objective of this 2014 year long branding campaign is to increase sales volume of Harley-Davidson brand motorcycles within the younger user population by 15%.

Marketing Objectives

Hierarchy Objective: Our Hierarchy objective includes increasing positive attitudes of Harley Davidson motorcycles among the young males.

Action Objective: To increase the amount of website views by 15% by the end of the year 2014.

Positioning Statement

For young males, Harley Davidson is the stylish yet timeless choice for motorcycles because of the sleek unique style and trusted reputation.

Media Objectives

Media Strategy

Media Tactics

Flow Chart of Media Mix