Name: Cheryl Juliet Joseph Professor: Frank Wirth

Transcription

1 Name: Cheryl Juliet Joseph Professor: Frank Wirth

2 Table of Contents: Executive Summary.1 Target Audience...1 Timing and Scheduling 2 Market Analysis...2 CK Brief... 4 Media Budget...4 Competitors..5 SWOT Analysis... 6 Media Objectives/Strategies 7 Media Mix 7 Non-Traditional Media...8 Print Ad 10 Television Ad.. 11 MFP Explanation MFP Charts. 13

3 Executive Summary: Harley-Davidson is the largest market shareholder of motorcycles in the United States. The expansion of its brand is not only seen on the products, but also in its target audience. Harley Davidson was founded more than 100 years ago (in 1903) when they begin targeting their products to men, and today they are the number one seller of motorcycles to women among other achievements. Harley-Davidson has always been perceived as a man s brand but as time has changed, and as stereotypes are dying- more women are choosing to ride motorcycles just like men do. In fact, about 12 percent of all Harley-Davidson motorcycle sales are to women. With that being said, our target audience is women ages 25 to 49. The goal of this campaign is to increase the sales Harley-Davidson Sportster among the target audience by 3,000 units within one year. This campaign focuses on the ways and strategies to attract the target audience to purchase a Harley-Davidson motorcycle, as well as the already owners to continue to stay and grow with Harley-Davidson both nationally and in the top 50 spot markets. The plan is to reach both the married career women with children and the single adventurous women with disposable income. Target Audience Based on IHS Automotive, Polk U.S. new motorcycle registration data, in 2014, for the seventh straight year, Harley-Davidson was the number-one seller of new on-road motorcycles in the U.S. both 601cc-plus and across all engine displacements to women. In the 601cc-plus onroad U.S. market, Harley sold more than nine times as many new motorcycles to Caucasian women ages 35-plus as the nearest competitor, and more than seven times as many to women regardless of age or ethnicity in About 12 percent of all Harley motorcycle sales are to women, roughly 32,000 new bikes in 2006, compared with 4 percent in 1990, 9 percent in 1998 and 10.6 percent in Harley-Davidson has begun a Web site aimed at women (harleydavidson.com/womenriders) and is advertising in women s magazines with a striking black-andwhite image of a rider using the chrome plating on a bike as a makeup mirror. On the Harley- Davidson website, it says all the freedom riders who celebrate the spirit of Harley-Davidson every time they start their bike we salute you. Women riders are among the most important demographics for Harley as it cultivates the next generation of motorcyclists. About a third of the students enrolled in Harley's rider training classes are female. According to the data given in the MFP exercise, the target audience I feel suitable for Harley Davidson s Sportster are white women ages The primary target audience is women ages 35-49, who are most likely married with or without children, and have college education. They may also have husband who owns a Harley bike or is a fan of Harley. As for the secondary target, it is women ages 25-34, may be single or married. These women are most likely independent women who are professionals with managerial occupations and have an income of more than $80,000 per year with more than $30,000 disposable income annually. These women typically live in the suburbs. Both the primary and secondary target audiences have the desire for the freedom on the open road, and the eagerness to escape their every day ordinary lives. Major Media Consultants discovered that the women who are most compatible with Harley- Davidson Motorcycle could be described as adventurous, thrill seeking, yet family oriented

4 females. They are most likely to have been previously exposed to recreational riding and love challenges. They want to experience the freedom and independence of riding for themselves but at the same time, are very concerned with the safety aspects of riding a motorcycle. These women would benefit from the opportunity to escape from the stress of balancing work and family. They enjoy socializing with friends and meeting new people, especially people of the same interest. They often read magazines or books about adventures and motorcycles to get a thrill outside of their everyday lives. Additionally, these women are also interested in sports and rock genre. The target audience dresses up in boots, jeans and has tattoos. Timing/Scheduling This campaign will consist largely of spot campaigns with the top 50 markets according to the Category Development Index (CDI). This campaign will also include national, consisting of magazines, newspapers, television, radio and digital media. This campaign will run for the whole year. However, only four months will receive heavy advertising that reaches more than 80 percent of people with more than the frequency of five. The four months are April, May, June and July. Spot campaign will run for the whole four months with emphasis on both national and spot campaigns in May and June. Heavy ads will only run during the warmer months of the year because this is when people are actually motivated to purchase and/or take their Harley-Davidson motorcycles out for a ride (or more). The spot campaign will start in April, as this is the time where it gets warmer and the top 50 markets will be exposed to the teaser ads and more. Additionally, Harley-Davidson bikes are high involvement products, where consumers spend a lot of time comparing different aspects such as the price, product, warranty and more. Therefore, the spot campaign will continue until the end of July, where interested consumers would have already purchased or at least thought about purchasing the bike if they wanted to. During the months of May and June, both national and spot campaigns will be in full force. This is because I believe that by including national campaign, it will promote more exposures toward the product. As the weather begins to get warmer all over the U.S., seeing ads on Harley- Davidson motorcycles will motivate our target audience from all over the country to want to get a bike to ride during the summer especially. The media vehicles that will be used for both these months are television, radio, magazines, newspaper, direct mail and digital spot and national. The reason for the emphasis of spot campaign is because according to the Harley-Davidson For Women market analysis data, percent of U.S. motorcycle commuters are in the top 50 spot markets. The spot campaign will continue all year round with just digital media to maintain Harley s presence, especially in the online community. Market Analysis For the campaign, I will be targeting both national and spot markets. For the spot markets, I will be targeting the top 50 metropolitan areas and Designated Market Area (DMA) regions. According to The Nielsen Company, DMA regions are exclusive geographic areas of counties in which the home market television stations hold a dominance of total hours viewed. Additionally, the top markets were calculated based on the Category Development Index (CDI), which

5 measures the sales performance of a category of goods and service within a specific market. The CDI of each market give vital data for marketers to allocate advertising to specific areas maximizing product category knowledge and profit. The top 50 spot markets cover 67.1 percent of U.S. household. The spot markets are as follows. Albuquerque, NM Atlanta, GA Baltimore, MD Birmingham, AL Boston, MA Buffalo, NY Charlotte, NC Chicago, IL Cincinnati, OH Cleveland, OH Columbus, OH Dallas-Ft. Worth, TX Denver, CO Detroit, MI Grand Rapids et al, MI Greensboro et al, NC Greenville et al, SC-NC Harrisburg et al, PA Hartford-New Haven, CT Houston, TX Indianapolis, IN Jacksonville, FL Kansas City, KS-MO Las Vegas, NV Los Angeles, CA Louisville, KY Memphis, TN Miami-Ft. Lauderdale, FL Milwaukee, WI Minneapolis-St. Paul, MN Nashville, TN New York, NY Norfolk et al, VA Oklahoma City, OK Orlando et al, FL Philadelphia, PA Phoenix, AZ Pittsburg, PA Portland, OR Raleigh-Durham, NC Sacramento-Stockton, CA

6 Salt Lake City, UT San Antonio, TX San Diego, CA San Francisco et al, CA Seattle-Tacoma, WA St. Louis, MO Tampa-St Pete, FL Washington, DC W Palm Beach et al, FL C.K. Brief (FIX THIS) Two Fresh New Human Insights 1. Women (with or without kids) who ride are still womanly/motherly. 2. Harley-Davidson gives women the freedom and fun to ride in style. Single Minded Selling Idea Harley-Davidson Sportster bikes can give women (with or without kids, single or married) the feeling of freedom and fun in style. Media Budget The budget for the Harley Davidson campaign is a total of $23 million. The budget will be directed towards national and spot campaigns. Total national campaign spending is approximately $8 million and a total $14 million is spent on spot campaign. A total of $8 million is spent on national campaign for the months of May and June ($4 million/month). A total of $14 million is spent on spot campaign from April to July ($3.5 million/month). A total of $16.3 million is spent on traditional media for the whole four months (April to July) with emphasis on spot campaigns. A total of $6 million is spent on non-traditional media for the whole year. A remaining of $560 thousand will be spent on promotions. Level of Advertising (Whole year campaign) January: Light February: Light March: Light April: Moderate May: Heavy June: Heavy July: Moderate August: Light

7 September: Light October: Light November: Light December: Light *Determined according to media schedule in flight plan and market analysis Reach and Frequency The goal is to achieve a reach of at least 80 percent and a frequency of 5 for the four months of the campaign (April to July) that we are heavily advertising on the product. The campaign is lightly advertised during the remaining months, as riders are less likely to ride or purchase their motorcycle during colder seasons. The media flight plan shows that the campaign managed to achieve a reach of 94.2 percent and a frequency of 9.0 during the months (May and June) where there are both national and spot advertisements, and a reach of 80.3 and a frequency of 5.2 for the months of April and July, where only spot campaign is executed. As for the remaining months, there is an average reach of 9.8 and an average frequency of 1.2. Competitors The biggest competitors for Harley Davidson are BMW, Victory, Honda Motor, Indian Motorcycle, Suzuki Motor, Yamaha and Triumph. Harley-Davidson, however, maintains a large margin in its dominance in the U.S. Women accounted for 12 percent of U.S. heavyweight motorcycle sales last year, according to the Motorcycle Industry Council. That s a market share increase of 30 percent over the past decade. Harley won t say how many of its bikes go to female riders, but it does claim to have 62 percent of the market. However, according to Fortune magazine, Harley isn t keeping up with Asian competitors like Honda and Kawasaki in quality or productivity. Headquartered in Japan, Honda is the world's fifth largest automaker and largest motorcycle producer by recent standards. Kawasaki is a global manufacturer of transportation equipment and industrial goods. It also produces consumer products, such as Kawasaki-brand motorcycles and personal watercraft. In recent years, Harley sees a new threat- motorcycles maker, Victory, which explicitly targets Harley in its advertising. Victory was built 15 years ago as a potential alternative to Harley- Davidson but has amassed only a 5% market share, largely taking a piece out of Japanese competitors Honda, Yamaha, Suzuki and Kawasaki. Now Indian Motorcycle, owned by the same company (as Victory) called Polaris Industries, is taking aim at the market leader, even running a television ad featuring a Harley-Davidson bike sporting a for-sale sign outside the owner s garage. Under Harley-Davidson CMO Mark-Hans Richer s watch, Harley spends just 15% of its marketing budget on traditional media. The brand spent $12 million on measured media in 2013, according to Kantar Media. The rest is spent on riding with customers and trying to create "epic" experiences such as having a big bike party in Rome. "We think the best form of advertising is great experiences spread by word-of-mouth," said Mr. Richer, who's served as senior VP-CMO since Furthermore, Harley-Davidson focuses on the psychological experience and it

8 embraces its products as a lifestyle rather than simply a product, whereas BMW s focus is on its products cutting edge design such as acceleration and sleekness, and on the other hand, Polaris will keep Indians focused on exclusivity rather than performance. Despite all of that, Harley is still the number one seller of motorcycles to women, African- Americans, Hispanics, young adults and baby boomers. On the sports front, Harley also takes a nontraditional approach. Back in December 2007, it became one of the first major brands to sponsor the Ultimate Fighting Championship, a league once derided as "human cockfighting" by U.S. Senator John McCain. SWOT Analysis Strengths High brand recognition. Strong brand loyalty. Product quality. Offer custom bikes. Embraces its product as a lifestyle rather than just a product. Growth in popularity among women. Harley Davidson has the largest motorcycle club in the nation. Dealer networks around the U.S. All-American made. Weaknesses Harley s target audience has traditionally been males. Riding is often influenced by the season. Losing sales to competitors that are offering discounts as much as $3000 per bike. Dropped in share markets that reduce the shipments to trim inventories. Recent recall (2014) of motorcycles due to problem with clutch. Opportunities Female riders are becoming more prevalent. Baby boomers and Gen X constitutes a great proportion of Harley Davidson motorcycles owners. Stereotype of women riders are manly are fading. The Sportster is already popular among women. Threats Competitors: Japanese brands offer more variety in terms of lighter and cheaper motorcycle models. Environmental protection laws. The cost to maintain Harley s motorcycles. Economic recession is a potential threat to sales.

9 Media Objectives/Strategies Target Audience o Women o Age: 25-34, o Average income of more than $80,000 per year and a disposable income of more than $30,000 per year. To increase sales of the Sportster among women by 3,000 units within one year. To strategize a 12-month social media campaign. Achieving a reach of at least 80 percent and a frequency of at least 5 on the four months (heavy up) advertising campaign. Advertise in the top 50 spot markets. The schedule is based on the weather/season and the times in which people are likely to ride their motorcycles (as explained early in the Timing/Schedule section). Media Mix Magazine-Women o People (An American magazine of celebrity and human-interest stories.) -Frequency: Weekly -Circulation: 3,527,541 o Cosmopolitan (An international fashion magazine for women.) -Frequency: Monthly -Circulation: 3,019,778 Magazine-General Interest o Hog Magazine (Harley Owners Group magazine packed with riding stories, product information, member stories and more.) -Frequency: Five yearly issues -Circulation: 800,000 o Cycle World (A leading motorcycle magazine dedicated to providing readers with latest motorcycle news, gear reviews and more.) -Frequency: Monthly -Circulation: 263,129 Internet o Social Media such as Facebook, Twitter, Snapchat, Spotify, Instagram and YouTube. o Websites: Cycle World, Cycle Trader, Trip Advisor, Elite Daily (hybrid media) and lifestyle blogs. National Television-Prime Time o USA Network, NBC, History, HBO, FOX, Discovery Channel, Cinemax National Television-Sports o ESPN, NCAA Basketball Championship, NFL Football, Sunday Night Football

10 Spot Television-Prime Time o USA Network, NBC, History, HBO, FOX, Discovery Channel, Cinemax Radio-Morning Drive o Contemporary/Top40, Rhythmic, Urban, Rock o KIIS FM, WPLJ-FM, Talk Radio, Classic Rock Stations Radio-Evening Drive o Contemporary/Top40, Rhythmic, Urban, Rock o KIIS FM, WPLJ-FM, Talk Radio, Classic Rock Stations Newspapers o The Wall Street Journal, The New York Times, USA Today, New York Post Direct Mail o Advertisers often refine direct mail practices into target mailing, in which mail is sent following database analysis to select recipients considered most likely to respond positively, i.e. those who are interested in motorcycles. Promotion o Discount coupons or codes in magazines. o Conduct test drive to showcase Harley Davidson motorcycles. o Carry out road shows around the country. o Special events in Harley Davidson stores. Non-traditional Media Popular non-traditional media consist of Internet advertising, social media, mobile advertising, live team marketing, special events, sponsorship and more. For the non-traditional media, I will include social media, special events, road shows and sponsorship. I will create a social media campaign throughout the year and heavy up during the four months (April-July) advertising campaign that include both national and spot campaigns. Social media plays a huge role for this campaign because on certain months of the year I would only advertise on social media (as explained early in the timing/schedule section). As for the four months of heavy up campaign (April-July), I am going to include both national and spot social media campaigns. Social media can promote engagements among consumers and often will lead to word-of-mouth advertising. Therefore, it is important to utilize it correctly. For instance, promoting hashtags such as #HDRiders, #HOG and more. Additionally, utilizing social network sites such as YouTube to share videos of riders riding Harley Davidson motorcycles, and using Instagram to upload pictures of women riding Harley s motorcycles as well as engage with other users. Special events can be held at Harley s stores all over the country. It can also be held during the International Motorcycle Show that is held yearly at cities such as New York, Chicago, Miami, Long Beach, Dallas, Minneapolis and Cleveland. For people who won t be able to attend the show, they can head over to any Harley Davidson store for test-drives, information and more.

11 There will be food, games and sponsors to make the event more exciting. This event can also serve as a meet up among Harley s fans and riders. Along with that, Harley will also host road shows on a large scale, nationally. This road show will travel across the country and make stops along major cities (including the top 50 spot markets). Riders can participate in this road show by riding alongside professional motorcyclists/racers. Harley should also contribute in sponsorship. For instance, funding charitable event such as Motor 4 Toys where it brings motorsport community together for the holidays to collect as many toys as possible for less fortunate children. Likewise, funding charitable event such as Breast Cancer Awareness is a fantastic idea for Harley, as cancer survivors/fighters are well known to have strong characters that fit our target personae.

12 Advertisement Examples Print Ad Banner Ad

13 Television Ad Television screen is split into two Both sides of the story happen simultaneously Left side A mom (age 35-49) is seen making breakfast for her kids, packing their lunches and sending them off to school. She comes back, cleans the dishes, vacuums the house, and does the laundry. (The whole scene portrays the woman as a super busy mom.) Mom is seen checking her watch while she is doing the chores, realizes it is time to pick her kids up from school and send them to extracurricular activities (piano, football and etc.) She drives her mini van, picks them up and sends them off for their practice/class. Then. She goes back home, to her closet and changes her outfit. Camera faces the door The moment the door opens, rock music plays in the background, and the mom comes out of the room looking like a rocker mom ready to hit the road. She then takes her Harley-Davidson Sportster for a spin up the mountain. Right side A professional working lady (age 25-34) is seen speed walking around the busy city of downtown LA-running errands and making phone calls with a cup of coffee in her hands. She is seen rushing to work, arriving to work and immediately attends a meeting. After that, she heads out for a meeting with her client. (The whole scene portrays the woman as a super busy career driven woman.) The woman is seen checking her watch while she is waiting for her client. After that meeting is done, she goes for another two meetings. Then She goes home, to her closet and changes her outfit. Camera faces the door The moment the door opens, rock music plays in the background, and the woman comes out of the room looking like a rocker chick ready to hit the road. She then takes her Harley-Davidson Sportster for a spin up the mountain. The television screen combines The two women are seen riding the bike side by side, as if they are racing and eventually they met up the mountain for some cold drinks and chat. The two women are seen laughing as if there is no stress in the world, as if they were whole new different individuals. The ad ends with that and Harley-Davidson s logo and the slogan, Rockers by night. Further Explanation of Media Flight Plan The media vehicles that have been chosen for this campaign will be used to reach the target market of women, ages Harley-Davidson s Sportster target audience is working professionals that have a disposable income of more than $30,000 per year. Both the primary and secondary target audiences have the desire for the freedom and adventure on the open road, and

14 the eagerness to escape their every day ordinary lives while being family oriented. This target audience will be exposed to the campaign through variety of media vehicles in order to increase exposure and overall coverage This campaign will run for a whole year. There will be a strong emphasis on spot campaign for four months in April, May, June and July, and a two months national campaign in May and June. Heavy ads will only run during the warmer months of the year because this is when people are actually motivated to purchase and/or take their Harley-Davidson motorcycles out for a ride (or more). The spot campaign will start in April, as this is the time where it gets warmer and the top 50 markets will be exposed to the teaser ads and more. During the four-month period, the media objective is to achieve a minimum of 80 percent amongst the target audience in the spot and national campaign with a frequency of at least 5. In order to accomplish the goals and objectives of this campaign, it will be necessary to use media vehicles that will allow for optimal reach and frequency in the target areas. While some areas will be allotted a larger amount of the budget, it will all be divided for optimal success. The budget for the Harley Davidson campaign is a total of $23 million, which will be divided throughout television, radio, magazines, newspapers, direct mail and non-traditional media. The budget will be directed towards national and spot campaigns with total spending of approximately $8 million on national campaign and a total of $14 million on spot campaign. About $16 million is spent on traditional media for the whole four months (April to July) with emphasis on spot campaigns and the remaining $7 million is spent on non-traditional media such as social media, special events, sponsorships and sales promotions. Social media such as Facebook, YouTube, Trip Advisor, Motorcycle websites and other blogs are used as ad mediums. Although more than half of our target audience is of Gen X, born after the Western Post-World War II baby boom, most of them are considered hip and adventurous, thus the use of social media. Social media advertising is essential as it has the ability to promote engagements among users, thus creating word-of-mouth advertising, which is often organic. As for traditional media, the total of $16 million spent is allocated to magazines (women and general interest magazines). Ads will be placed in magazines such as People magazine, Cosmopolitan, Cycle World and HOG magazine. This will benefit the campaign as the campaign is targeted to women and women that are interested in motorcycles. We will also make use of newspapers for our campaign, as most people around our target ages (35-49) are most likely to still read newspapers. Ads on television will be placed during prime time, as our target audience is most likely to watch television during the time they usually finish work. Also, there will be advertisements in sports channels because most women of our target audience are most likely to be fans of sports and are more likely to watch sports games. Since we are targeting women ages that typically go for work or are employed, radios will allow the target audience to listen to it on the way to work and back home. This explains why we place our ads on the morning and evening drive. Lastly, direct mail such as letters, s and fliers allow us to communicate straight to the customers. According to the DMA Statistical Fact Book (2011), marketers send over 90 billion pieces of direct mail per year in the U.S. Our remaining $560 thousand that was not used in the MFP will be used for promotions purposes. Overall, the objective is to achieve these goals within the allotted $23 million budget for the entire campaign.