CONSUMER BEHAVIOR

HARLEY DAVIDSON CASE

GROUP 3

Rukma Loretta Kunal Adhvay Narendra

1. Id rather push a Harley than drive a Honda. What does this statement say about the typical Harley owner? The statement talks about how Harley is perceived by its owners compared to other bikes brands. It also talks about their attitude toward Harley compared to their attitude towards other brands. The difference with Harley is that while everyone has the machinery to sell, HarleyDavidson will go further and sell the owner a lifestyle as well. The brand has been described as not just a motorcycle but a culture on two wheels.

Harley is perceived to be a bike that gives amazing experience and reflects an individuals lifestyle. Owning it is a matter of prestige. The ads state that things are different on a Harley. Harley even had a tagline once saying until u have been on a Harley Davidson u havent been on a motorcycle. It is this positioning of the brand that makes it different from others and makes the owner say the statement The statement also talks about how a Harley owner perceives Honda and what is his attitude towards it. Harley owners are usually CEOS and hence considering their profile a statement like that about Honda is obvious. The statement may have also been made by the owner because of his loyalty towards the brand Harley customers are brand loyal. If they want a Harley they would wait and buy Harley only in case of unavailability (psychological concept described by 1 of the groups). This loyalty is due to various reasons. 1 such reason being the answer of the last question. They dont only satisfy intrinsic but also extrinsic needs INTRINSIC: Internal desires to perform a particular task, people do certain activities because it gives them pleasure, develops a particular skill. Example: buying a Harley for his comfort and experience EXTRINSIC: Factors external to the individual and unrelated to the Task they are performing. Examples: buying Harley for status and prestige.

2. A Harley renews your spirits and announces your independence. Analyze this statement. A Harley is a Bikers Sign which is Synonymous to: adventure, attitude, freedom and individualism. Similarly Harley-Davidson (HD) has always been associated with

inspiring freedom, self expression, boldness, passion and power. According to survey taken they following data were revealed by customers who ride the Harley. A sense of freedom is experienced while riding a HD motorcycle a strong emotional attachment to riding their motorcycles social satisfaction in riding together in groups with their peers and feeling they are part of a special group of people who are different from the rest of society A strong loyalty to the brand of HD. These were consistently revealed in the Interviews conducted with this group

3. What are Harley buyers really buying when they buy a Harley?

- Harley buyers buy an experience, a better lifestyle and also prestige. When people think of adventurous road trips, speed, passion etc the first that comes to their mind is A Harley Davidson bike (classical Conditioning)

4. Who rides a Harley? CEOS, investment bankers according to the case are the ones who ride a Harley. Demographic Income: High Income Groups Age: 27-45 years Psychographic Lifestyles: Touring Enthusiasts Outdoor-Oriented Personality Types: Innovators, Achievers, adventurous Professional: Executives Entrepreneurs Self-employed businessmen rich youth. Benefits sought: Occasions: Leisure riding, planning weekend rides User status: Attitude towards Product: Prestige Associated with the brand.

5. How has Harley Davidson Gained Such a Devoted Following? All the marketing communication made r centered on the positioning statement of the product. In addition to it, the Communication focuses upon the brand personality which mirrors the aspirations of the prospects and encourages them to make the bikes & the brand a part of their lifestyle. Harley-Davidson is a company that has created loyalty through a pattern of steadfast interactions with its customers. People have a strong perception and attitude of the brand over the years because of their marketing stimuli like: 1. Word of mouth 2. Print ads etc.

People are devoted because they are positively reinforced (learning), that if they buy the product thy will get better experience prestige etc. After buying the prodct: Its the experience that the customers get that makes them loyal to the brand. (customer satisfaction) Harley not only provides customer satisfaction by giving the best quality product but also by giving additional services ( providing incentives motivates a buyer to buy a product (*which is a part of group 1 ppt on motivation) Eg. Most recently, he pulled off a high holy day of event marketing by having Pope Francis bless thousands of Harley riders and their bikes as part of a four-day Roman holiday celebrating the company's 110th anniversary. 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 2007.

Eg: party in Goa for the owners for which al owners from around India come riding with their bikes. Also the esteem needs have grabbed the brand its followers Desires for status, superiority, self-respect, and prestige are examples of esteem needs. These needs relate to the individuals feelings of usefulness and accomplishment

Eg: Harley Davidson organizes European bike rally which is an annual motorcycle rally. It is the largest rally in Europe and the third largest worldwide. (Cues)- Cues serve to direct consumers drives when they are consistent with consumer expectations. Marketers must be careful to provide cues that do not upset those expectations.

6. How has Harleys used advertising to evoke strong emotions and motivations?

Firstly Harley Davidson has three potential customers. They are 1.) Appeal to a Younger Audience: Harley has been extremely successful appealing to the Baby Boomer market with their luxurious, heavyweight, cruising motorcycles. Younger generations favor the faster, smaller, cheaper motorcycles offered by Japanese companies. Suzuki, Honda, Yamaha, and Kawasaki combine to make up 92% of the lightweight motorcycle market. These lighter, sportier, and less expensive motorcycles appeal to the 25 to 34 year old male demographic. Currently, Harley sells almost two and a half times more heavyweight motorcycles per year than the number of lightweight motorcycles sold by all manufacturers combined. Harley needs to develop motorcycles that attract younger buyers to maintain its long-term market share, while not alienating its core customer base. 2) Appeal to Women Women are increasingly becoming more interested in riding motorcycles. Approximately

nine percent of Harley owners are women. This number doubled in the past decade, and continues to climb. Part of this increase in female customers was attributed to Harley requiring its dealers to transform their grimy bike shops into retail emporiums. In spite of this, Harley does not feature any motorcycles that specifically target women. Harley should make more of an effort to market to women, because they represent a huge number of potential customers. Harley should offer models that are specifically designed for women, and that Harley should offer riding programs to women who may be interested in motorcycles but too intimidated to try riding them. Although women present a great opportunity for the company, Harley must find a way to market to them without alienating their current customer base. - Harley Davidson uses facts, emotions and passion to appeal to the customer.

Yamaha Yamaha is organizing many events such as the latest event for the female. Yamaha Motor India entered the scooter segment in India in September 2012 with its all new Yamaha RAY. The RAY which targets a niche customer base of young, urban women, has been designed and engineered to answer the needs of this growing class of young female customers who want a scooter that is stylishly designed, compact, easy to use and have a fresh new appeal. The company has developed & launched the Yamaha Female Riding Training Program for female customers who have a concern to ride a scooter or want to obtain a riding license. The company plans to conduct the YFRT program in various cities across India for women who feel the need to be trained on riding a 2-wheeler. Yamaha is uses the comparison methods to differentiate their products.