Harley Davidson Cult Brand Profile

To say that Harley had fallen on hard times by 1981 would be a drastic understatement. Japanese companies were destroying the company on pricing and Harley-Davidson’s bikes had lost the quality that made them famous.

The executives risked their corporate lives with an $80 million buyout on a turnaround situation that looked almost impossible. But, they couldn’t afford to fail; the whole company’s back was against the wall. They had to make it. The choice was simple: drastically improve the quality of the motorcycles and develop strong customer ties or go out of business.

Harley started copying Japanese production techniques and quality control, and released the new “Evolution” engine in 1983 that put an end to oil leaks and other quality issues.

Given financial constraints, Harley couldn’t engage in a traditional advertising campaign to win over customers. In 1983 CEO Vaughn Beals announced the launch of the Harley Owners Group (H.O.G.), which he saw as a grassroots way to reconnect Harley’s brand and lifestyle with its most faithful customers.

Despite an initial lack of acceptance, within a few years H.O.G. chapters started appearing around the country. The spread of these groups was gorilla marketing at its best: membership was generated primarily from inexpensive promotions at dealerships and word-of-mouth. H.O.G. groups gave enthusiasts a structured way to meet, swap stories, and schedule rides with other evangelists.

Harley made a wise move in requiring every H.O.G. chapter to have a dealership sponsor. The result of this stipulation was a tighter relationship between Harley dealers and the customers, as well as an increase in parts and merchandise sales.

They didn’t stop with creating members groups. They started sponsoring rallies around the country. In doing so, not only did they solidify their communities, but they also used the rallies as a killer sales tool. They bring motorcycles to the rallies for people to tryout. This concept reaches its apex each year at Bike Week in Daytona Beach and the Sturgis Rally and Races in South Dakota. Collectively, the events attract over half a million Harley enthusiasts. Harley takes feedback its employees receive at these events very seriously. Opinions they receive from customers affect what is produced in product lines and the way they run their rallies. This desire to appeal to the customer has been extended to the point that Harley offers the option of customizing their motorcycles. This allows Harley to rack up higher-margin sales, while allowing consumers who buy a custom Harley feel like they are not only joining the “Harley nation,” but that they are also exercising their own individuality.

In creating these events, and paying attention to its customers, what Harley is ultimately selling through its motorcycles is the opportunity to experience the feelings of raw freedom and empowerment that one receives from strapping on some leather and riding a bike down the open road. These are feelings common to Americans of all ages, races, and backgrounds.

Happy 105th Anniversary Harley-Davidson! — by Salim Bueno