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Harley Davidson Report - Essay Example

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Summary
 This essay analyses questions such as: Should Harley-Davidson continue to sponsor the Posse Ride? Why or why not? What is the HOG's role in developing the community for the Harley-Davidson brand? It discusses Harley's strategy and performance in "getting close to its customers…
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Harley Davidson Report
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Harley-Davidson Case study AFFILIATION: Harley Davidson Case Study Question Should Harley-Davidson continue to sponsor the Posse Ride? Why or why not? What role should the Posse Ride play in the HOG events mix? Answer The decision to sponsor the Posse ride can be decisive as the percentage of returns can be higher but there are chances of loss as well. HOG have been sponsoring the event previously and if it has not benefited extra ordinarily then it has not generated loss for them as well. In fact, if it is said that, it has helped them promote Harley Davidson as a reliable brand and created customer loyalty then it would not be wrong. For the business to be successful they need to have a sustained competitive advantage and there is no better competitive advantage then the customer loyalty. The customers of Harley Davidson attend events like posse rider mainly because of the attachment they have with Harley Davidson. It is quite possible that if Harley Davidson name is not attached with these events the outcome of these events might very well be decreased. Moreover, these events provide Harley Davidson an opportunity to market their products in a much more convenient and economic manner. These events put Harley Davidson more closer to its customers strengthening the bond they share. Strong customer relationships are maintained and this allows new customers to be targeted as well. When the customer of Harley Davidson even share their experience with others, the prospective customers may have a positive image of the brand and they may also value the relationship that the brand has with its customers via the arrangement of such an event. So, it is recommended that they should continue sponsoring Posse Rider event as it seems a profitable investment. Question 2 How should the Posse Ride be designed to maximize its effectiveness and profit-making potential, should you decide to keep it? Answer The Posse Ride has been profitable for Harley Davidson but the true potential of the event is still to be realised. To fulfil its true potential the strategic heads need to make few alterations to it so that it becomes unavoidable to organise. A well thought out structure of the event needs to be planned. The first step could be to go back to the basics and identify what mistakes had been made in the past. A proper research work will help in the right preparation for the event. Another step they can take is to offer new deals and packages in an effort to increase the worth of the event. A good route of the coast can be selected that will allow rides to enjoy the event and trust the brands management towards event organising. The event may add more segments to it which could attract more audience towards it. Lastly, the promotional strategy should be designed carefully. The promotional strategy could be a critical factor in its success e.g. hiring a brand ambassador for the event. A higher amount of advertising is required for Posse Ride so that more people get to know about the brand and its events and in turn buy the products. The rides event would be a memorable event for the customers that they would cherish and this would lead to building a string and positive image of Harley Davidson. Question 3 What is the HOGs role in developing community for the Harley-Davidson brand? Answer The HOG is an important part of Harley Davidson. The contribution of HOG in Harley Davidson’s success is priceless. They are the one who enabled Harley Davidson to get to their customers closer than ever. It helps them to create a community of riders. The events such as destination rallies, rolling rallies and posse rides combines together all customers that love to ride bikes regardless of their background and their level of income. This actually enhanced the customer loyalty for Harley Davidson as they were in a better position to know about their customer demands and design their products and services accordingly. It also helped in creating a synergy among Harley Davidson as it brought all the stakeholders closer to each other. Strong customer relationship ties are formed due t the strong role played by HOG in forming community of riders. Question 4 Evaluate Harleys strategy and performance in "getting close to its customers. Answer Harley has been extremely conscious of building long term relationships with its customers. They have constantly looked for ways that can enhance the strangeness of bond between them and their customers. The posse ride is one of the examples in this effort. They have introduced variety of events that they use to get closer to their customers. The Rolling Rallies is another example. They have successfully deployed all these strategies which have helped them cater the diversified demands of their customers. The customers enjoyed all these facilities and hence were unable to be inspired by other brands. Short trips are conducted by Harley on an annual basis for their customers who love to ride. The trip consists of merchandise shops, various types of attraction along the route and also a blend of historical background and this allows the trip to be very successful. Posse ride allows the customers to roam around America in a different way. The Harley Davidson staff is present at the finishing line waiting for the riders. Harleys values the importance of socializing that customers prefer and hence they portray themselves as a lifestyle not just a brand. Question 5 - How can HOG itself be maximized? Answer HOG has been an integral part in the success of Harley Davidson. Without HOG the road towards a successful journey for Harley wouldn’t have been that much easy. So, it is important for Harley as well to take care of HOG in order to continue their journey towards success. The first step they can take towards maximizing the HOG is to expand their operations in different countries. The brand image of Harley is such that it can enjoy a high level of acceptance everywhere. They need to conduct events at a massive level all over the country. However, the expansion to different countries should be properly thought out before going global. This might seems a simple step but a poorly though out strategy can be disastrous even for a company like Harley. They should be able to find strategies that can help them grab new customer segments hence increasing their customer base. Customers that have retired and they love to ride can be a strong market segment for HOG. Such customers would definitely attend the events and enjoy the rides allowing the organisation to become more successful. This can be achieved through a variety of promotional activities for example introduction of new promotional deals just to catch their attention. The collaboration with different banks can allow them to grab customers who have a passion for bikes but are unable to fulfil their passion due to different financial issues. Websites can be made and promoted in the cyber world for all the lovers of bike riding. These are the some ways that can help them expand their size and cater a large customer base. Question 6 Select a local Kuwaiti brand or company, and suggest a creative idea (like the HOG) to create a sustainable brand-customer relationship. Think out of the box to up with an astonishing idea Answer The company I have selected is the Gulf Trading and Refrigerating Co. The Gulf Trading and Refrigerating Co. is the leading FMCG Company in Kuwait and has been serving the Kuwaiti nation for a good long period of time. For any company to achieve a sustained competitive advantage they need to win trust of their customer and it is possible only when they are able to create a strong relationship with their customers. In recent times companies have different and new ways of getting closer to their customers; some have used the strategy of forward integration and some have provided the feedback options and some enhanced the level of their customer services. The strategy I would like to put forth for the GTRC in order to build strong customer relationship is to start building a database of the customers and then try to build relationships on personalised grounds. This can be achieved by sending a thank you note through email or by post after their visit to the store. In that note they could be persuaded about different products and offers that they could have bought and this would reflect upon them as a sense of care, also asking them about their experience visiting GTRC. Another step in this regard is to introduce the concept of shopping helpers who can guide them at every point of the store about their product benefits and usage as well. Lastly, introducing membership options for the customers and promoting memberships with different deals and packages. These are just a few ways of enhancing customer relationship. The customer relationship can only get stronger when they feel they are been taken care of. GTRC has to keep on improving the shopping experience and they will keep on growing further. Reference Elliott R. H., Percy L (2007), “Strategic brand management Pb”, New York Oxford University Press Inc. Read More
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