Harley-Davidson: Project RUSHMORE - Chris Conway, Maggie Glanton, Rebecca Lineberry, Julianne Shea & Missy White

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Harley-Davidson: Project RUSHMORE - Chris Conway, Maggie Glanton, Rebecca Lineberry, Julianne Shea & Missy White
Harley-Davidson:
        Project RUSHMORE

Chris Conway, Maggie Glanton, Rebecca Lineberry, Julianne Shea & Missy White
Harley-Davidson: Project RUSHMORE - Chris Conway, Maggie Glanton, Rebecca Lineberry, Julianne Shea & Missy White
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                             TABLE OF CONTENTS

I. ABSTRACT ……….…………………………………………………………………………...3

II. BACKGROUND……………………………………………………………………………….4

III. ISSUES AND CHALLENGES ………………………………………………………………8

IV. SWOT ANALYSIS …………………………………………………………………………10

V. PR STRATEGIES AND TACTICS …………………………………………………………12

VI. KEY THEMES AND MESSAGES ………………………………………………….……..15

VII. MEDIA COVERAGE ……………………………………………………………………...17

VIII. RESOURCES …………………………………………………………………………….20

       - PRESS RELEASES

       - MEDIA COVERAGE

       - CAMPAIGN GRAPHICS

IX. SUGGESTIONS AND RECOMMENDATIONS …………………………………………..25

X. DISCUSSION QUESTIONS…………………………………………………………………27

XI. SOURCES ……………………………………………………………………………..……28

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Harley-Davidson: Project RUSHMORE - Chris Conway, Maggie Glanton, Rebecca Lineberry, Julianne Shea & Missy White
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I. ABSTRACT

       Project RUSHMORE, created by Harley-Davidson in 2009, and was released to the public

in 2013, aims to raise sales of Harley-Davidsons and give consumers a say in what goes into

their bike. With Project RUSHMORE, named for the “rush” bikers get from riding and bikers

wanting “more,” Harley-Davidson aimed to solve the problem of a generation gap and the

declining of sales.

       Through researching Project RUSHMORE, there is evidence that Harley-Davidson

gained popularity from a different audience and sales were boosted, but at the same time some

issues arose with the new features on the bikes.

       Project RUSHMORE solved the problem of unpopular features of Harley-Davidson’s

bikes by updating these areas and adding new features to put their bikes ahead of competitors’.

Harley-Davidson did this by integrating new technology with the traditional style of

motorcycles. They increased control and comfort, and added more advanced technology. Project

RUSHMORE also gave individuals the opportunity to build their own bike allowing

personalized features.

       Harley-Davidson went outside the box to give consumers exactly what they wanted. They

utilized social media and held events all over the world to raise awareness of this campaign and

to gain support. Project RUSHMORE was overall a success for Harley-Davidson.

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Harley-Davidson: Project RUSHMORE - Chris Conway, Maggie Glanton, Rebecca Lineberry, Julianne Shea & Missy White
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II. BACKGROUND

        In 1900 William S. Harley and Arthur Davidson made their first motorcycle available to

the public. In 1901, William completed his blueprint for the design to fit an engine into a bike.

Williams Harley was only 21 years old when completing these designs. In 1903 they made their

first Harley-Davidson motorcycle available to the public, making this the founding year for the

company.

       In 1906, the two decided to build a factory to have space to build these bikes and grow the

Motor Company. The factory was only 28 x 80 feet and was built on Chestnut Street, later

renamed Juneau Avenue. As the Motor Company was growing, so was the number of

employees. William A. Davidson, Arthur’s brother quit his job at the Milwaukee Road railroad

to join their business.

       The Motor Company got its first patent in 1911 for the famous “Bar & Shield” logo. This

is the logo that the company still uses today. The company also gained some publicity for seven

different first place finishes in endurance contest and hill climbs across America, where all seven

winners rode Harley-Davidson motorcycles. This same year, the “F-head” engine became a

workhorse for the company. This was the engine Harley-Davidson used until 1929.

       With their new engine and a six story building, Harley-Davidson began exporting

motorcycles to Japan in 1912. This was the first ever sales outside of the U.S and grew the dealer

network to over 200 dealerships nationwide.

       When the business was getting started, motorcycles were not very popular. In 1914 a

majority of the bikes were used for racing and this is when the company formally entered into

racing. They became known as the “Wrecking Crew” because they had such a dominance of the

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sport. They also introduced the sidecars and clutch brake pedals for their F-head engines and

twin motorcycles.

       There was another big announcement in 1915. The company introduced the three speed

sliding-gear transmissions with final and primary drive on the same side. The company made

another splash in 1918 when they began selling motorcycles to the U.S. military. Roughly one-

third of all motorcycles that were Harley-Davidson produced were sold to military. They even

opened a training school for military mechanics. Once they started to sell motorcycles to the

Army, they also began selling them to the public and became business partners with David

Sewing Machine Co. of Dayton, Ohio, who made all of the individual components.

       In 1919, the 37 cubic inch opposed twin cylinder Sport model was introduced and gained a

lot of popularity overseas. This was a special bike because it was quiet and had a cylinder

configuration instead of being flat.

       During the 1920s Harley-Davidson really made a name for themselves. They were the

largest motorcycle manufacturer in the world and Harley-Davidson bikes could be purchased

from over 2,000 dealers in 67 countries. During the 20s the 74 cubic inch V-twin engine was

introduced and all gas tanks were created in a teardrop shape. They then began to release the

two-cam engine to the public and front wheel brakes on all motorcycles. At the end of the 20’s,

they released the 45 cubic inch V-twin engine on the D-model. This was a huge introduction

because they used this in different variations until 1973.

       During the 1930’s Harley-Davidson began including graphic designs on motorcycles. The

“eagle” design was painted on all gas tanks starting in 1934. They also introduced the EL, a 61

cubic inch powered bike and the 80 cubic inch side valve engine.

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       Just as Harley-Davidson began selling motorcycles during World War I, they basically

stopped all production of civilian motorcycles during World War II. The service training school

was reinstated and running to train military mechanics. Once the war ended, they immediately

began reproduction of civilian motorcycles. With production levels rising, they opened a new

plant on Capitol Drive. They used the plant during the war, but began using it for a large

machine shop, shipping new parts to Juneau Ave. for final assembly. By the end of the 1930s,

Harley-Davidson also introduced the hydraulic front forks on the Hydra-Glide models.

       In the 1950s, Harley-Davidson celebrated their 50th anniversary with the “V” logo to honor

the engine that brought their company so far. They also had another legendary bike born in 1957,

the 55 cubic inch overhead valve engine, that became known as the first “Superbike.” They

introduced the first hydraulic rear brakes and rear suspension in 1958.

       In the 1960s they produced their first and even Topper motor scooter, which was not a big

hit, along with the Spring model, and the electric starter on the Electra-Glade, which replaced the

Duo-Glide. They also replaced the Panhead engine with the “Shovelhead” in 1966. In 1969, they

made a huge company decision to merge with the American Machine and Foundry Company,

which produced leisure products.

       As racing became even more popular, in 1970 Harley-Davidson introduced a new

Sportster, the XR-750. They also introduced the FX 1200 Super Glide, which combined a sporty

side with their normal bikes, creating the cruiser. Harley-Davidson also moved their plant to

York, PA in 1973 to a 400,000 square foot workshop. In 1977, the FXS Low Rider was

introduced to the public and the Café Racer.

       In 1980, even more bikes were introduced, the FLT with vibration dampening, rubber

isolated drivetrain and unique trailing front fork. The FXWG Wide Glide, the FXR/FXRS Super

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Glide, the Heritage Softail, and the 1340ccV Evolution engine was released for five models. All

of these releases showed Harley-Davidsons commitment to quality.

       The modern legendary motorcycle design came along in 1990 with the introduction of the

FLSTF Fat Boy. They also opened their state of the art paint facility in 1992, costing $31

million. They introduced the Dyna line this same year and their Superbike racing bike in 1994.

       From the 1990s onward, Harley-Davidson has continued to release many more bikes,

upgrading old styles or coming out with new ones. Their development centers and machine

workshops continued to grow and more are opened. In 1998, they opened their first operation

assembly outside the United States in Mansur, Brazil. Harley-Davidsons bikes are created with

more horsepower and flashier designs as the years go on.

        In 2011, they introduced personal customization so riders could get their own factory-

built custom motorcycle. Harley-Davidson works to ensure their customers are receiving the best

quality and has a large brand community. Harley Davidson’s passion in their business is to bring

a commitment of exceptional customer experiences to everything they do, from the innovation of

their products to the precision of their manufacturing, culminating with their strong supplier and

dealer networks (About Harley).

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III. ISSUES & CHALLENGES

        According to Forbes, Harley-Davidson has been a social brand long before there was a

name for it; however, the company has recorded lagging sales numbers recently. The company

officials are excellent at marketing ideas bigger than Harley-Davidson. The company markets a

lifestyle, and many people have chosen to be a part of that lifestyle. They have created loyalists

and fanatics, some who go as far as to tattoo the Harley-Davidson logo on their bodies. The

H.O.G., or the Harley Owners’ Group, had more than 650,000 members in 2004 (Speros).

        Despite the large group of loyalists, Harley-Davidson faces declining sales and serious

challenges because this fanatic population is aging and un-diverse – many of them are over 50

years old, white, male and over the age of 60 (Forbes). In addition to some of these people being

forced to turn to safer alternative activities due to their age, these people already have at least one

Harley-Davidson motorcycle, and thus they are not purchasing new bikes (Forbes). Harley-

Davidson claims that the company sells more motorcycles to women, African-Americans and

Hispanics than any other company (McCarthy). Though this may be true, it does not necessarily

mean these demographic groups constitute a large percentage of the company’s sales. It makes

sense that the company would lead in sales in these demographic groups because they are the top

seller in the industry.

        In 2006, Harley-Davidson sold 349,196 bikes, and only sold 247,625 last year, which is a

30 percent decrease (Forbes). Though they remain the dominant brand in the motorcycle

industry, in order to turn sales around, the brand officials had to market bikes to a larger and

more diverse group of consumers.

        In addition to an aging and un-diverse niche, the marketing philosophy of Harley-

Davidson may also be contributing to its declining sales. According to Advertising Age’s

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Michael McCarthy, Harley-Davidson CMO Mark Hans-Richer prides himself on his choice to

implement non-traditional marketing strategies. The same article states that Harley-Davidson

spends only 15 percent of its marketing budget on traditional media (McCarthy). Harley-

Davidson spends the rest of its marketing budget on “epic” riding trips with its loyal customers

(McCarthy). Though this strategy is effective in keeping loyal enthusiasts, it’s not as effective in

attracting new customers because the strategy relies almost entirely on word-of-mouth

advertising and often this dialogue is between people who already own a Harley-Davidson bike.

As we have learned in class, word-of-mouth can be extremely effective, but it is also very

uncontrolled.

       Like many businesses, Harley-Davidson took a hit during the recession. However, the

company was able to bounce back fairly quickly; it reported a 6.2 percent increase in worldwide

retail sales in 2012 (McCarthy).

       Additionally, in 2013 Harley-Davidson voluntarily recalled 29,000 of its 2014 touring

motorcycles because of a problem with the hydraulic clutch system. This was not Harley-

Davidson’s first recall, as they have had several major recalls in the past.

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IV. SWOT ANALYSIS

STRENGTHS

       •   Strong consumer loyalty and commitment to the brand

       •   Established brand identity and community

              o   Well known within the motorcycle community

              o   Well established lifestyle and community associated with the brand

       •   Additional branded products besides motorcycles

       •   Worldwide branded events and “rides”

WEAKNESSES

       •   Weak range of consumer demographics

              o   Current demographic is getting older

       •   Brand is entrenched with stereotypes

              o   Supporters of the brand have a certain image

                      §   Older, white males

OPPORTUNITIES

       •   The rise and impact of social media

              o   The use of social media to further connect consumers

              o   Social media as a way to receive consumer insight and input

       •   Expand consumer demographics to include a wider range

              o   Appeal to younger audiences of different races/cultures

THREATS

       •   Social media is geared towards younger audiences

              o   Social media can segment a demographic and target audience

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       •   Current demographic is aging

       •   Other brands have divisions of types of motorcycles, sport bikes, ATV’s, etc.

              o   Appealing to more than one type of audience

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V. PR STRATEGIES AND TACTICS

       Harley-Davidson has moved much of their advertising and PR budget into social

branding. Harley-Davidson has always been a so-called “social brand” – meaning that they put

the bulk of their branding efforts into their enthusiasts, encouraging them to share their bikes

with other enthusiasts and embrace the Harley lifestyle. Nonetheless, the reason why Harley-

Davidson has done so is twofold -- for one, traditional media is expensive and outdated, even

more so now than ever before. Two, the consumers who buy Harley-Davidsons are getting old,

and fast. The Harley-Davidson media spending model continues to put the emphasis on social

branding. The company understands the value of word of mouth among motorcycle riders. They

spend money on taking motorcycle enthusiasts on weekend riding in trips. Forbes writes that

“Harley-Davidson has perfected the ‘no-sale sale” (Baskin).

       Harley-Davidson needed a way to make their brand relevant and keep it from slipping

further and further into an old crowd. Although Harley-Davidson has a hearty share of

devotees—tattooed men and women who bleed orange and black still fill the roads every day –

those people are getting older and buying fewer bikes. Harley-Davidson needed a way to get

back to the rebellious, independent image its brand was built upon. They needed to open up a

new channel of communication between their consumers and their brand that would help the

brand communicate with a younger audience.

        Project RUSHMORE is the product of this approach to branding. People could give

input on features they wanted to see on bikes, etc. The company said that they wanted to

incorporate more consumer feedback in their creation of the line, and they used a variety of

methods to do it.

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       Harley-Davidson maintains Twitter and Facebook accounts with 189,000 followers and

5.5 million likes, respectively. The brand utilizes both channels effectively, sharing photos and

news about Harley-Davidson bikes and encouraging users to do the same. The result is a massive

community of Harley enthusiasts, all sharing their experiences. Harley-Davidson in 2010

launched a “Fan Machine” app on Facebook that allows enthusiasts to share their experiences

with other Harley-Davidson riders (McCarthy). Through the Fan Machine, Harley-Davidson is

able to include riders in their creative decisions. For example, the E Plurubus Unum and

Stereotypical Harley campaigns were sourced through the Fan Machine (Investor Relations).

       The E Plurubus Unum advertising campaign is another tactic the brand employed around

the time of the release of Project RUSHMORE. Harley-Davidson ran a series of commercials

and a social media campaign that played off of and challenged the typical Harley rider

stereotypes – out of many, one. Riders were encouraged to share photos and stories that showed

how stereotypical (or not) they were with their Harley using the hashtag #stereotypicalharley.

The TV ads that ran show normal Harley bikers riding (Branding Magazine). The emphasis of

the campaign is that Harleys, while they might be associated with a certain stereotype, can be

ridden by anyone in any way they please .

       Another tactic Harley-Davidson used for to appeal to a younger audience was the

company’s sponsorship of Ultimate Fighting Championship and other brands (McCarthy). For

example, UFC is wildly popular among young, rebellious, testosterone-ridden men – just the

type of consumer Harley-Davidson wants to hook early. Harley-Davidson had to find a way to

capitalize on those feelings – although motorcyclists get old and fade away, the feelings they

have when they’re young and first starting out with a bike never do. That same rugged,

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individualistic notion exists; Harley-Davidson just needed a way to tap into it. The sponsorship

of UFC is a stab at that.

          Harley-Davidson celebrated its 110th anniversary in 2013 with a series of events across

the world. In Milwaukee, the brand’s birthplace, thousands of bikers rallied as a huge event

celebrating the brand’s heritage. Harley-Davidson also in 2013 had Pope Francis bless a group of

riders at the Vatican as part of the celebration (Winfield). The story of the Pope’s blessing went

viral, and the Pope himself got a Harley that later auctioned for over $300,000 (Khadilkar).

Multimedia packages from each event, including comprehensive coverage with photos, videos

and stories, are available on the Harley-Davidson website. The company used a set of hashtags --

#HD110, #HD110ROME, #HD110MILWAUKEE and more -- to create a conversation during

the events as well as source social content, such as Instagram photos to add to the pages on the

H-D website. This enabled bikers both at the events and at home to follow along and join the

conversation during the events. In all, there were 16 events that took place both domestically and

abroad.

          Project RUSHMORE’s launch came a few days before the brand’s huge celebration of

its 110th anniversary. The project’s arrival was announced to the media through a series of press

releases, seen in the “Resources” section. There was also an accompanying TV spot in which

Irish band The Strypes cover The Beatles’ “Come Together.” Harley-Davidson used

crowdsourcing to decide on what band should contemporize the song. According to PRWeek,

Harley also used its partnerships with the TV show “Sons of Anarchy” and UFC to put Project

RUSHMORE bikes in the spotlight. In the fourth quarter of 2012, Harley-Davidson selected a

handful of “social media influencers” to use the bikes and share their experiences. The Project

RUSHMORE campaign is the brand’s first-ever global marketing campaign (PRWeek).

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VI. KEY THEMES & MESSAGES

       •   Commitment to the Harley-Davidson mission - “Fulfilling dreams of personal freedom is

           more than a phrase. It’s our purpose and our passion. We bring a commitment of

           exceptional customer experience to everything we do - from the innovation of our

           products to the precision of our manufacturing - culminating with our strong supplier and

           dealer networks. We are Harley-Davidson.” (“About Harley-Davidson.”)

       •   The creation of a new generation of the “freedom machine”

              o   Collaboration with riders to design a new era of bikes

       •   The biggest launch of new motorcycles in the company’s history - the reinvention of

           Harley-Davidson

              o   Appealing to both younger and older audiences

              o   “... that completely redefine and fundamentally transform the touring motorist’s

                  experience.” (“Project RUSHMORE redefines 2014 Harley-Davidson

                  Motorcycles”)

       •   Integration of new technology and the traditional style of the motorcycles

              o   The clash of an older generation with a newer one

              o   The Harley-Davidson Soundtrack includes new artists performing classic rock ‘n’

                  roll anthems

       •   Increased control, increased comfort and more advanced technology

       •   Individualized motorcycles for a new generation of riders

              o   “Build Your Own Harley” is revamped and allows new features for design

       •   Encouraged rider cultivation of the Harley-Davidson lifestyle

              o   HD bikes, clothing, accessories, etc.

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       In order to further cultivate the Harley-Davidson lifestyle, the company initiated Project

RUSHMORE as a way to create a new generation of “freedom machines.” Through the

participation of riders all over the world, Harley-Davidson redesigned its classic for the modern

rider. Increased comfort, control and technological features are the essence of the project and its

goal to unite a new generation of riders.

       The key themes and messages of the project are focused on the company’s effort to unite

riders across the world in reinventing the Harley-Davidson motorcycles. By encouraging riders

to contribute to the redesign of a line of motorcycles, Harley-Davidson continues to further its

relationship with customers.

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VII. MEDIA COVERAGE

       The Project RUSHMORE campaign received a high amount of coverage across many

different forms of media, both in the United States and internationally. Harley-Davidson

employed traditional PR, TV advertisements, print ads, digital ads, social media and a website to

spread the word about the campaign and encourage customer insights. Through traditional PR

tactics, agency Weber Shandwick earned the campaign positive coverage in newspapers and

magazines all over the country, from national publications like the New York Times and Forbes,

to small local newspapers in each state. These efforts were bolstered by the first ever on-

motorcycle Satellite Media Tour, hosted by Bill Davidson (great grandson of company

cofounder William Davidson) on one of the project’s new bikes. He did about 25 live interviews

while riding the bike to show off its new features, including an integrated phone, GPS navigation

and voice recognition technology. Outlets running the interviews included the Armed Forces

Radio Network, Fox and Motorcycle.com. Harley-Davidson also toured their new Project

RUSHMORE across the world to gain international media coverage. They invited press in other

countries to try out the bikes – riding through the Chilean Andes, the Tibetan Plateau in China

and the beaches of Sao Paulo in Brazil.

       Following the bike tours around the world, Harley-Davidson hosted a 3-day festival in

Milwaukee, the company’s hometown, to continue to show off its new bikes and to celebrate its

110th anniversary. The event gained strong media coverage as a result of employing high profile

performers such as Aerosmith, Toby Keith and Kid Rock. In addition to newspaper and radio

coverage of the event, the company generated a lot of buzz on social media by encouraging fans

in attendance to share videos, images and experiences on Facebook and Twitter using the

hashtag #HD110.

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       Harley-Davidson ran a national TV spot to promote Project RUSHMORE, leveraging its

partnerships to gain a high amount of media impressions among its target audience. The spot ran

during many prominent programs such as the premier of FX’s Sons of Anarchy, the launch of

FOX Sports 1, the premiere of Marvel’s Thor: The Dark World, and many Ultimate Fighting

Championship events. In addition, the spot achieved media coverage before it was even created.

Harley-Davidson used crowdsourcing to obtain a modernized version of the song “Come

Together” by the Beatles the advertisement. Through this effort, they discovered the Irish band

The Strypes, who now provide the soundtrack for the campaign, while also generating buzz

about the spot before it ran on TV.

       Finally, Harley-Davidson selected a number of social media influencers that they feel

appeal to their target market (including both current Harley riders and non-Harley riders), and

provided them with the new Project RUSHMORE bikes to try out and share their opinions on

social media. Not only does this get people talking about the campaign on social platforms, but it

is also in line with the campaign’s message of coming together with the fans and valuing their

ideas and opinions. The company felt confident enough in the quality of its new bikes to place a

lot of their messaging and media coverage into the hands of the customers.

       Despite all of the positive impressions generated through Project RUSHMORE, Harley-

Davidson did receive some negative media coverage as a result of many recalls on the new bikes

that were necessary. The company had to recall 29,000 of its Project RUSHMORE bikes due to

problems with the hydraulic clutch system, and recalled another 436 a few months later as a

result of possible brake fluid leaks. These recalls resulted in many bloggers questioning the

safety of the bikes and whether the campaign was “rushed.” However, according to an article

published in the Milwaukee Business Journal, executives at Harley-Davidson describe the recall

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as a small issue that they handled early on, and do not expect it to affect the strong consumer

demand on their new products.

       On October 22, 2013 the Journal Sentinel reported Harley- Davidson’s third-quarter

earning rose 21 percent from Project Rushmore motorcycle sells. They reported $1.34 billion in

sales, which is an increase from a year ago of $1.25 billion. Worldwide, sales increased 15.5

percent third-quarter. This is a 20.1 percent increase in the United States, 10 percent in the Asia-

Pacific region, 16 percent in Latin America. Harley-Davidson reported this is due to new

dealerships in Brazil and growing markets with the popularity of the new bikes rising. Chairman

and CEO of Harley-Davidson, Keith Wandell said that buyers responded to Project

RUSHMORE. "The 2014 model-year rollout was the biggest launch of new motorcycle models

in the company's history," Wandell said. "And these motorcycles sold extremely well among

both our traditional core customers in the U.S., as well as our outreach customers consisting of

young adults (ages) 18 to 34, women, Hispanic and African-American riders. For each of these

demographic groups, the top-selling model-year-'14 bike has been the Rushmore."

       With the 29,000 recalls, due to safety issues involving the hydraulic clutch, the company

expects a loss of $4.9 million in the fourth quarter. However, Harley-Davidson is optimistic that

it shouldn’t have a big effect on production. Wandell stated, “Overall, when you wash through

this thing, there really will not be a delay in shipments.” With the restructuring activities from

Project RUSHMORE, they expect $305 million in cost savings this year and $320 million in

ongoing years annually. Since Harley-Davidson began the project in 2009, they have been

focusing on improving their cost structure and transforming the business to be stronger, more

profitable and flexible.

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VIII. RESOURCES

PRESS RELEASES

Project RUSHMORE redefines 2014 Harley-Davidson Motorcycles

MILWAUKEE (August 18, 2013) - Harley-Davidson has created a new generation of American freedom machines.
In the largest scale new model launch in the company’s 110-year history, Project RUSHMORE encompasses eight
new motorcycles that feature improved power and braking performance, enhanced rider ergonomics, and dramatic
styling updates that completely redefine and fundamentally transform the touring motorcyclist’s experience.

Countless ideas. Thousands of hours of research and testing. Eight extraordinary motorcycles. Project RUSHMORE
introduces technology and design enhancements that will recalibrate the expectations of the touring motorcyclist:
Savvy electronic controls and infotainment. Aerodynamics born in the wind tunnel. Bodywork shaped by the most-
respected styling team in the industry. Comfort good for endless miles and, of course, more American V-Twin
power. The road trip will never be the same.

Project RUSHMORE is the result of an entirely new way to produce motorcycles. In a process that invokes the
voice of the customer throughout an accelerated development program, the ideas and dreams of thousands of
motorcyclists are allowed to percolate with those of Harley-Davidson employees.

“Project RUSHMORE is a pure expression of our relationship with our customers and a shared passion for riding
motorcycles,” said Mark-Hans Richer, Harley-Davidson Senior Vice President and Chief Marketing Officer. “It’s
resulted in some outstanding innovations, but from day one we’ve been focused on taking the total rider and
passenger experience to the next level. We come together - to quote the Beatles - through a process that uses not just
formal feedback, but the kind of input we get from listening to customers out on the road, and then we blend that
with our engineering and styling expertise. For years at Harley-Davidson we’ve been saying that we ride with you.
Project RUSHMORE elevates that devotion to a higher level.”

Building on the technological foundation that established the company’s dominant leadership in the touring
motorcycle segment, eight new 2014 Harley-Davidson models, including Road King®, Street Glide®, Street Glide®
Special, Electra Glide® Ultra Classic®, Ultra Limited, Tri Glide® Ultra, CVO Ultra Limited and CVO Road King®
feature innovative Project RUSHMORE-inspired enhancements. They slot into four customer-defined categories:

       Control: Project RUSHMORE bikes pass faster, stop quicker and see farther at night, thus inspiring rider
       confidence. Each model features the new Twin-Cooled™ High Output Twin Cam 103™ or the High Output
       Twin Cam 103™ powertrain – both with fuel injection, Reflex™ Linked Brakes with ABS (Anti-Lock Braking
       System), and Daymaker™ LED and Dual Halogen lighting.

       Infotainment: New color-screen Boom! ™ Box infotainment systems feature the first original-equipment voice
       recognition and touchscreen for music, GPS navigation and phone in motorcycling, with quality audio,
       Bluetooth® connectivity, text-to-speech technology, plus support for intercom and CB communications in a
       single module.

       Feel: Aerodynamics and ergonomics come together to improve comfort -- from the new Batwing fairing with
       splitstream venting, which reduces head buffeting by 20 percent, to best-in-class ride for passengers with wider
       and deeper seats and new back and arm rests.

       Style: The form and the function of many components are improved – a larger Tour-Pak® and saddlebags with
       convenient One-Touch latches, sleeker fenders, lighter cast aluminum wheels and intuitive hand control
       switches.

(See separate releases for details on the elements of Project RUSHMORE.)

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SOCIAL MEDIA

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MEDIA COVERAGE

Project RUSHMORE:2014 Harley-Davidson Motorcycles

Jason Fogelson

In all of the excitement of the Harley-Davidson HOG +0.05% 110th Anniversary, it was almost possible to miss the
really big news from the Motor Company. The 2014 Harley-Davidson lineup has been announced, and eight of the
new bikes benefit from an initiative that has been named “Project RUSHMORE.”

Project RUSHMORE is the largest scale new model launch in H-D’s history. The project “encompasses eight new
motorcycles that feature improved and braking performance, enhanced rider ergonomics, and dramatic styling
updates that completely redefine and fundamentally transform the touring motorcyclist’s experience,” according to
the company.

Project RUSHMORE enhancements show up in four categories: Control; Infotainment; Feel; and Style. The eight
new bikes for 2014 are: Road King, Street Glide, Street Glide Special, Electra Glide Ultra Classic, Ultra Limited, Tri
Glide Ultra, CVO Ultra Limited and CVO Road King.

The really big news is the Twin-Cooled High Output Twin Cam engine, the next generation of H-D powerplant.
This is the long-rumored liquid cooled Harley engine, finally implemented in a production motorcycle. There’s a
103 cubic inch version that will initially appear in the Electra Glide Ultra Limited and Tri Glide Ultra, and a 110
cubic inch version in the CVO Ultra Limited. The other Project RUSHMORE bikes get an air-cooled High Output
Twin Cam.

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A new Reflex linked antilock braking system (ABS) is standard on the new bikes, along with Daymaker LED and
dual halogen lighting. Infotainment has been upgraded to include a new color screen system with voice recognition.
Aerodynamics and ergonomics have been improved, including a new batwing fairing with splitstream venting. And
style has been updated — but each new bike is still very recognizably a Harley-Davidson, through and through.

Additional enhancements throughout the lineup include a restyling of the Fat Bob, now incorporating the popular
Dark Custom elements which replace shiny chrome with mean, blacked-out finishes. All 2014 Sportsters can be
ordered with ABS for the first time, along with an available keyless, hands-free security system. ABS is now
standard on all V-Rod models.

In addition to the CVO Road King and CVO Limited touring bikes, a new CVO Softail Deluxe model joins the
CVO Breakout Softail chopper in the Custom Vehicle Operations lineup.

The Street Bob and Super Glide Dyna models both return with minor enhancements, including standard fitment of
the Twin Cam 103 powertrain, and the Softail lineup repeats with six variations, including the popular mid-year
Breakout addition.

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CAMPAIGN GRAPHICS

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IX. SUGGESTIONS AND RECOMMENDATIONS

       We suggest that Harley-Davidson choose a more creative and explanatory name for the

campaign. The company website states that it chose the name because of the “rush” that riders

feel when riding Harley-Davidson motorcycles, and thus, said riders want to ride “more.” When

the two words are put together, Harley-Davidson came up with the name Project RUSHMORE.

In addition, the Harley-Davidson website explains that riders love to ride on the windy roads,

like the ones near Mount Rushmore. However, the name is somewhat confusing for those

unfamiliar with the project because the campaign did not include any events at Mount Rushmore.

       In addition to the name change, Harley-Davidson should not have rushed the start of the

campaign. Since the 110th Anniversay was approaching quickly, Harley-Davidson had timed the

release of Project RUSHMORE to coordintate with the festivities surrounding this. The rush to

begin Project RUSHMORE might have resulted in the issues that caused the company to have to

recall thousands of bikes. In regards to future campaigns, Harley-Davidson should take the

necessary time in order to avoid mistakes and recalls.

       We also suggest that Harley-Davidson continue to create and implement plans that allow

for customers to suggest features and ideas for bikes. We believe that this customer involvement

will allow Harley-Davidson to keep customers interested purchasing in new products. The

suggestion process also shows customers that Harley-Davidson cares about their sentiments and

ideas, and that Harley-Davidson is constantly striving to satisfy customers.

       In regards to the events that Harley-Davidson put on for the campaign we have several

suggestions. Firstly, we recommend that if Harley-Davidson were to do future promotional

events that they focus on cities with a large concentration of young people, as Harley-Davidson

customers are aging and the company must expand its customer base to younger people. Also,

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Harley-Davidson should have younger musical groups perform at the events, instead of older

bands like Kid Rock and Aerosmith. If Harley-Davidson targets to younger people, they will be

more likely to increase sales to potential young customers.

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X. DISCUSSION QUESTIONS

       1. How did Harley-Davidson expand their reach to a wider audience? Did they do an

          adequate job of targeting different demographics?

       2. Evaluate Harley-Davidson’s use of new media, what would you suggest they do

          differently?

       3. What was the biggest challenge for Harley-Davidson before and during the campaign?

          Did their key themes and messages address their challenge?

       4. What communication tactics were used in this campaign? What were their strongest

          tactics and their weakest tactics? Would you suggest any other tactics be used?

       5. What is the future for Harley-Davidson? Does Project RUSHMORE set the brand up for

          success?

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XI. SOURCES

"2014 Harley-Davidson Motorcycles: What Is Project Rushmore?" San Diego HarleyDavidson

       Blog 2014 HarleyDavidson Motorcycles What Is Project Rushmore Comments. Aug. 23,

       2013. Web. 21 Apr. 2014.

“About Harley-Davidson.” Last modified 2014. http://www.harley-

       davidson.com/en_US/Content/Pages/Company/company.html?locale=en_US

Barrett, Rick. "Harley's Project Rushmore Helps Push Sales Sharply Higher." Harley-Davidson's

       Project Rushmore Helps Push Sales Sharply Higher. Oct. 22, 2013. Web. 21 Apr. 2014.

Baskin, Jonathan Salem. "Harley-Davidson Will Be A Case History In Social Branding." Forbes.

       Forbes Magazine, 12 July 2013. Web. 10 Apr. 2014.

Bornhop, Andrew. "2014 Harley-Davidson Project Rushmore – First Look Significant-some

       Might Say Monumental-changes Are in Store for Harley's 2014 Touring Models." Cycle

       World. Aug. 20, 2013. Web. 21 Apr. 2014.

"Come Together: Harley-Davidson Spotlights Innovative, Customer-inspired Motorcycles

       in New Global Work." Harley-Davidson News. Harley-Davidson USA,

       19 Aug. 2013. Web. 14 Apr. 2014.

Communication & Mass Media Complete. Web. 30 Mar. 2014.

Editorial. "Harley-Davidson Confronts Stereotypes." Branding Magazine. Feb, 2 2012. Web. 15

       Apr. 2014.

Engel, Jeff. "Harley-Davidson CEO: Recall Won't Slow 2014 Model Demand."

       Milwaukee Business Journal. 22 Oct. 2013. Web. 14 Apr. 2014.

Fogelson, Jason. "Project RUSHMORE: 2014 Harley-Davidson Motorcycles."

       Forbes. Forbes Magazine, 03 Sept. 2013. Web. 14 Apr. 2014

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Gramuglia, John, and Amanda Lee. "Investor Relations | Harley-Davidson." Harley-Davidson.

       Sept. 10, 2012. Web. 21 Apr. 2014.

"Harley-Davidson News | Harley-Davidson USA." Harley-Davidson News | Harley-Davidson

       USA. Aug. 18, 2013. Web. 15 Apr. 2014.

Khadilkar, Dhananjay. "Pope Francis’ Harley-Davidson Sells for $327,000 at Paris Auction."

       The New York Times. The New York Times, 07 Feb. 2014. Web. 15 Apr. 2014.

Lee, Bill. "Harley Recalls 2014 Trike Motorcycles for Loss of Brake Fluid."

       Ultimate MotorCycling. 9 Nov. 2013. Web. 14 Apr. 2014.

McCarthy, Michael. "CMO: Harley-Davidson Is About Lifestyle, Not Transportation | CMO

       Strategy - Advertising Age." Advertising Age CMO Strategy RSS. July 10, 2013. Web. 21

       Apr. 2014.

McCarthy, Michael. "Harleys Have Engines And Wheels -- But Don't Call Them Automobiles."

       Advertising Age 84.26 (2013): 20. Communication & Mass Media Complete. Web. 28

       Mar. 2014.

PR, Newswire. "Consumer Goods Companies Announce Leadership Changes, Marketing

       Campaigns and Introduce New Racing Machines - Research Report on Harley-Davidson,

       Polaris Industries, Thor Industries, LKQ and Honda."

PR Newswire US 22 Aug. 2013:Newspaper Source Plus. Web. 14 Apr. 2014.

PR, Newswire. "Milwaukee Is Ready To Rock!."

PR Newswire US 22 Aug. 2013:Newspaper Source Plus. Web. 21 Apr. 2014.

Speros, James D. "Why the Harley brand's so hot." Advertising Age 15 Mar. 2004: 26.

       Communication & Mass Media Complete. Web. 30 Mar. 2014.

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Stein, Lindsay. "Harley Comes Together with Fans, Media for Anniversary." US Home. Oct. 1,

       2013. Web. 21 Apr. 2014.

"Was Project Rushmore Rushed?"Northwest Harley Blog, 29 Oct. 2013. Web. 21 Apr. 2014.

Winfield, Nicole. "Pope Blesses Hundreds of Harley-Davidsons." The Big Story. June 16, 2013.

       Web. 10 Apr. 2014.

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