Consumer Behaviour Report

ON
“The Motivational Process on Harley Davidson”
 ACKNOWLEDGEMENT

We would like to acknowledge and thank all the people involved for making the entire experience
of the summer internship so enriching.

We also thanks XYZ he/she has guided us and encouraged us throughout this project. Her inputs
have helped us gain clarity of thought and showed us the right direction. She has been a
wonderful trainer, guide, and true professional, with whose help us was able to perform well.

Last but not least, we are thankful to everybody who has helped me directly or indirectly by
contributing their valuable time, energy, and knowledge to execute the project. Their support can’t
be overlooked.

This Project has enriched us both professionally and personally and helped us become a better
person. It has been an experience of a lifetime.
 Contents
Introduction ................................................................................................................................................. 4
Customer Profile ......................................................................................................................................... 5
Advertisements ............................................................................................................................................ 6
Target ....................................................................................................................................................... 6
Luxury...................................................................................................................................................... 7
Organized Group .................................................................................................................................... 7
Motivation Theory ...................................................................................................................................... 7
GOAL ....................................................................................................................................................... 7
DRIVE...................................................................................................................................................... 8
NEEDS ..................................................................................................................................................... 9
WANT ...................................................................................................................................................... 9
HARLEY DAVIDOSN BUSINESS MODEL ........................................................................................... 9
New Products......................................................................................................................................... 10
Broader Access ...................................................................................................................................... 10
Stronger Dealers.................................................................................................................................... 10
Amplify Brand....................................................................................................................................... 10
New Products......................................................................................................................................... 11
Broader Access ...................................................................................................................................... 12
Stronger Dealers.................................................................................................................................... 12
Amplify Brand....................................................................................................................................... 12
Learning ..................................................................................................................................................... 13
The Real-Time Market Research ........................................................................................................ 13
The Relationship-Building Strategies.................................................................................................. 14
 Introduction

Harley-Davidson, Inc., or Harley, is an American motorcycle manufacturer founded in 1903 in

Milwaukee, Wisconsin. Along with Indian, it was one of two major American motorcycle
manufacturers to survive the Great Depression.
Harley-Davidson is noted for a style of customization that gave rise to the chopper motorcycle
style. The company traditionally marketed heavyweight, air-cooled cruiser motorcycles with
engine displacements greater than 700 cc, but it has broadened its offerings to include more
contemporary VRSC (2002) and middle-weight Street (2015) platforms.

Harley-Davidson has been able to build a community of enthusiasts around its brand that includes
members from very diverse groups, and with almost no advertising.
Motorcycle brand Harley-Davidson has risen to iconic status since its establishment in 1903,
thanks to its portfolio of masculine bikes, reputable engineering, and easily customizable builds.
Indeed, its popular array of chopper and cruiser motorcycles have gained a cult following, revving
the company's sales for decades and making it the preferred manufacturer for many around the
world.

Built around the central idea of giving customers a sense of freedom, Harley-Davidson rebranded
itself as an American icon in the 1980s. A thriving subculture of customization was also
encouraged by the brand, with customers invited to fuel their imagination and adjust the many
visual and functional elements of their machine. This was supplemented by high-quality customer
aftercare, fulfilling the endless possibilities of riders' requests.
 Customer Profile:

Harley-Davidson buyers are predominantly males, aged 55 and above. With a comfortable
disposable income, they invest in these premium vehicles because they identify motorcycling as a
passionate hobby of theirs. These consumers are ageing, however, and steadily outgrowing their
interest in purchasing new bikes.

To ensure its survival, the company has added a new customer profile to its target demographic –
that of motorcycle enthusiasts and non-riders between the ages of 22 and 38. Harley-Davidson is
now targeting mill menials with above-average income, banking on converting them into loyal
followers that will carry the brand's proud history into the future.

However, this target consumer is vastly different from the typical Harley-Davidson owner. The
millennial generation has strong opinions on the environmental impact of the automotive industry,
something that poses a serious challenge for the gas-guzzling Harley product lineup. Their reason
for purchasing a bike also differs, with younger riders generally turning to two-wheel vehicles for
convenience and ease of transportation, rather than to bask in the prestige of the brand or for
recreational purposes. Harley-Davidson has thus far demonstrated unwillingness to evolve its
brand perception enough to appeal to this consumer profile, to an almost frustrating extent.
 Advertisements

Target
Harley advertisements mostly targeted men and women aged 22 and up. They strive to present a
rough person wearing a black jacket driving with delight in every advertisement
Luxury
In various other advertisements, it is depicted that owning a Harley- Davidson will get you
respect from others.
Comfort-They also displayed a well-engineered motorcycle.

Organized Group
Harley-Davidson has an organized group for Harley motorbike enthusiasts called Harley Owners
Group (or HOG). To keep the spirit alive for Harley riders, the company organizes various events
for HOG members.

Motivation Theory

The term ‘motivation’ is derived from the word ‘motive’. The motive may be defined as needs,
wants drives, or impulses within the individual. Motivation is defined as the processes that account
for an individual’s intensity, direction, and persistence of effort toward attaining a goal.

Motivation is the cause for a specific behavior in a certain situation, whether conscious or
unconscious. Brands are always searching for innovative methods to interact, advertise and
eventually purchase their products and services from customers. Motivation is a crucial factor in
the development of brand equity and loyal consumer base.

GOAL

There are several Two Wheeler's brands out in the market but the Brand which fulfil the desire of
an individual of freedom, adventure, uniqueness, and have a cult following is Harley Davidson.
Customers are attracted toward the brand due to the prospect of what they can get with the brand
name.
The business aims to concentrate investment and to create new capabilities to strengthen the
Harley-Davidson brand and experience to inspire enthusiasm for drivers. Brand and consumer-
oriented teams are formed and linked with a stronger emphasis on consumers to achieve persons
with consistent and engaging brand experiences. This is reflected in the "More Roads to Harley-
Davidson" plan and Amplify Brand will strengthen new products, broader access and strongest
distributors in its existing growth catalysts.

"We see a significant potential to build on the brand's power to show how a Harley-Davidson fills
the mind, body and soul in ways that enable riders live for real," said Matt Levatich, president and
CEO of Harley-Davidson. "With the initial mood of interest, we will continue to encourage all
elements of driving experience and offer new solutions to completely develop, engage and keep
riders."

The company's heightened rider focus and comprehensive consumer research demonstrate that it
is crucial to attract new drivers into and maintain all riders in order to reach their objectives
regardless of their degree of expertise, age or stage of life.

DRIVE

A motive is the actual driving force that enables an individual to perform any task to achieve his
goal. For an individual, it will be seeking a motorcycle that fulfills their desire for freedom, status
and a bike that can be customizable as per the customers requirement.

The heritage of the brand and its bikes is Harley motors. The company has origins in motorcycles
and its history is unlike any other American manufacturer.
NEEDS

Customers want an incredibly strong and robust bike brand, Harley-Davidson stands for
independence, freedom, uniqueness, self-expression and adventure on the road to life.

Heavy motorcycles are Harleys. So strong that they may be readily struck by the lightweights of
the road. All of this, however, has its own advantages: the stability of a Harley-Davidson and its
greater rake angles are incredible. Nothing beats a Harley when it comes to cruising

WANT

Personal Want
Culture is the key to the desires and behavior of a person. Culture is an integral notion, comprising
nearly all that influences and impacts the thinking and behaviors of humans. The way individuals
take decisions and how they see the world around them impacts not just preferences.

The desire of biking, irrespective of age or economic position, with high quality and performance.

Harley-Davidson is not only the most renowned motorcycle manufacturer but also one of the
world's most storied and well-loved brands. Throughout 1903, at the dawn of the "Motor Age,"
Harley-Davidson started in all America. Two friends have gathered together and combined
bicycles with motors.

HARLEY DAVIDOSN BUSINESS MODEL

To inspire even more people around the world to experience the exhilaration of riding a
motorcycle, in July 2018, Harley-Davidson shared details of its “More Roads to Harley-Davidson”
accelerated plan for growth 2018 - 2022.
In a fast-changing world with new customer demands, these accelerated actions support Harley-
Davidson’s 2017 - 2027 objectives with increased focus and strategic investment to reinvigorate
the U.S. business while accelerating the pace of international growth.

The result of a comprehensive, top-to-bottom assessment incorporating a “customer first”

perspective, the “More Roads to Harley-Davidson” plan includes:

New Products -

• Keeping riders inspired by extending our leadership in the market segments shaped and
defined while unlocking new market opportunities

Broader Access -

• Creating new pathways to Harley-Davidson, expanding access and appeal to more people
around the world

Stronger Dealers -

• Working side-by-side with our global dealers to build stronger capabilities that lead to
improved channel performance, greater profitability and a H-D experience that exceeds
riders’ expectations

Amplify Brand -

• Enhancing the Harley-Davidson experience to inspire interest in riding, foster moto-culture

and build an even bigger, more passionate community of Harley-Davidson riders
New Products

• Leveraging its industry-leading design and strong manufacturing capabilities, Harley-

Davidson plans to offer its most comprehensive lineup of motorcycles, competing in many
of the largest and fastest growing segments with a full portfolio of motorcycles across a
broad spectrum of price points, power sources, displacements, riding styles and global
markets. Highlights include:

• Advancing our market leadership in Touring and Cruiser segments.

• Launching multiple Harley-Davidson Middleweight Adventure Touring, Streetfighter and
High-Performance Custom models through 2022.
• Developing more accessible, small-displacement (250cc to 500cc) motorcycles for Asia
markets through a planned alliance with a manufacturer in Asia. These new products are
intended to fuel Harley-Davidson’s customer access and growth in some of the largest,
fastest growing markets in the world.
• Leading the electrification of motorcycles by launching Harley-Davidson’s first electric
motorcycle Livewire™, in 2019 -- the first in a broad, no-clutch “twist and go” portfolio
of electric two-wheelers designed to establish the company as the leader in the
electrification of the sport. Livewire will be followed by additional models through 2022
to broaden the portfolio with lighter, smaller and even more accessible product options to
inspire new riders with new ways to ride.
Broader Access
Harley-Davidson will advance its market delivery approach and meet today’s customer needs by:

• Creating high-engagement customer experiences across all retail channels – including

improving and expanding the company’s global digital capabilities by evolving
the bikes experience to integrate with and enhance the dealership retail experience for
existing and new customers.
• Establishing strategic alliances with global leading e-commerce providers to extend access
to Harley-Davidson to a pool of millions of potential new customers.
• Flexible distribution points -- including smaller, urban storefronts globally to expose the
brand to urban populations and drive sales of the expanded Harley-Davidson product
portfolio and expand international apparel distribution.

Stronger Dealers
• Harley-Davidson’s world-class dealer network is an integral part of the company’s
accelerated strategy and critical to overall success. The company will implement a
performance framework to significantly enhance the strength of the dealer network and the
customer experience, enabling the best-performing and most entrepreneurial dealers to
drive innovation and success for themselves and Harley-Davidson -- while providing the
premium customer experience the brand is known for across an increasingly diverse
product and customer base.

Amplify Brand
• Underpinning our strategy is a meaningful opportunity to amplify and leverage the power
of the Harley-Davidson brand. We are enhancing the Harley-Davidson experience to
inspire interest in riding, foster moto-culture and build an even bigger, more passionate
community of Harley-Davidson riders.
• In addition to building riders, the company expects More Roads to Harley-Davidson to
create more value, stabilize and strengthen the existing business, improve Harley-Davidson
 Motor Company Return on Invested Capital (ROIC), increase revenue and earnings, and
allow the company to return more cash to shareholders.
• The accelerated strategy will require significant investment to change the trajectory of the
business globally, and the company plans to fund it entirely through comprehensive cost
reduction and reallocation of previously planned investment and resources including
operating investment through 2022 of $450 to $550 million and capital investment through
2022 of $225 to $275 million. In total, the company plans More Roads to Harley-Davidson
to generate more than $1 billion of incremental annual revenue in 2022 as compared to
2017.
• The company believes its accelerated strategy is in line with and reinforces its objectives
to drive revenue growth and expand operating margins. The company expects to fund
strategic opportunities while maintaining its current investment and return profile and
capital allocation strategy.
• Harley-Davidson’s funding principles will focus on stabilizing and strengthening the
existing business, enhancing the premium brand, and investments in profitable, growth-
oriented projects. We expect these principles, along with a disciplined capital allocation
focus, will allow Harley-Davidson to execute with improved cost competitiveness and
overhead efficiencies.

Learning

The Real-Time Market Research

H-D obtains customer data mostly through sponsored events and planned conventions attended by
Harley-Davidson enthusiasts. For example, Daytona Bike Week is an annual meeting of Harley-
Davidson riders and fans, and thousands of H-D data-gatherers go to communicate with existing
and new customers.
The Relationship-Building Strategies
When a consumer buys a Harley, he or she becomes a lifelong member of the Harley family.
Harley-Davidson has run a programmed called the Harley Owners Group, or HOG, for more than
15 years with the goal of connecting H-D owners with one another and the company. HOG assists
members with a wide range of motorcycle-related topics, from maintenance seminars to forming
a local motorcycle club. With 325,000 members and 940 chapters, HOG is by far the largest
factory-sponsored bike club in the world. By encouraging customers to stay involved in the H-D
community, the company gives them with an exceptional experience and almost ensures their
brand loyalty.

Despite the fact that H-D goods resemble automobiles, the company is not in the business of selling
motorcycles. Harley-Davidson just cannot compete with the quality of other motorcycles on the
market, particularly those from Japan and Korea, which are typically less expensive and have more
advanced mechanics. As a result, then-Director of Communications Ken Schmidt determined
in the 1980s and 1990s to turn Harley-Davidson into an emotional brand.