Harley-Davidson, Inc. | Company Profile, Marketing Contacts, Media Spend, Brands
Harley-Davidson, Inc., headquartered in Milwaukee, WI, is a manufacturer of motorcycles. It operates in two business segments: Motorcycles & Related Products and Financial Services. The company offers touring and custom bike models through a worldwide network of dealers. Harley-Davidson also sells goods licensed with the company name include a line of clothing and accessories.
|Main Telephone||(414) 342-4680|
|Main Fax||(414) 343-4977|
Harley-Davidson, Inc. ContactsContacts (5/28)
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|Perry G.||Vice President & Chief Accounting Officer||WI|
|Matthew L.||President & Chief Executive Officer||WI|
|John O.||Senior Vice President, Chief Financial Officer & Controller||WI|
|Dave C.||Chief Information Officer & Vice President||WI|
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Q2, Q4 Media Opps: Harley-Davidson on track to increase consumer-facing marketing spend by $70M
Subject: TV, radio, magazines, online, digital, online, social media, video, multicultural
Company: Winmo Profile), which is headquartered in Milwaukee, Wis.
Opportunity: During the Q1 earnings call, HD CFO John Olin said that HD believes Q1 retail sales benefited from its demand-driving marketing investments (which WinmoEdge first told you about in Oct. 2015). Therefore, HD is still on track to invest an incremental $70 million to drive demand (consumer-facing marketing it still expected to be up 65% YOY).
While worldwide retail sales were up 1.4% versus the prior year, US market sales continue to decline sightly – 0.5% in Q1. Q1 2016 marketing in the US was focused on product awareness and growing HD ridership. CEO Matt Levatich noted that HD’s customer loyalty and brand appeal “would be the envy of any business” and the core goal of the company’s demand-driving strategy is to build an even stronger, deeper bond with existing loyal customers while creating powerful connections with new customers. The focus, then, is on four key areas: (1) increase product and brand awareness; (2) grow new ridership; (3) increase and enhance brand access; and (4) accelerate the cadence and impact of new products.
To increase product and brand awareness, Levatich said HD has stepped up advertising and PR presence in every region. It is also utilizing digital and traditional media to tell HD’s story and the stories of its customers. Part of this increased presence includes major events (such as SXSW, the X Games and Daytona Bike Week) and experiential opportunities for riders to experience the brand first-hand.
Keep in mind, as well, that HD just released a new marketing campaign last month (more here). The campaign is part of a larger push to drive brand equity in order to compete, instead of relying on discounting. Levatich also pointed out that this rise in customer-facing marketing is expected to continue on into the future.
Remember, just afterStarcom, Chicago from the Detroit office. HD had hoped to make a final decision by early Q2, so we should be hearing something about this review soon.
Harley Davidson Riding Academy: In order to grow the sport of motorcycling in the US, HA os also increasing its investment in the Harley Davidson Riding Academy. In fact, the number of dealers offering the program increased by 8% in Q1 (and the number of classes increased by 35%). As part of its consumer-facing marketing increases, HD is offering a program called “Heroes Ride Free” that offers free classes to members of the military, first responders, police officers and fire fighters.
Target Audience: Levatich said during the earnings call that, for the eighth-straight year, HD was the No. 1 seller of new on-road motorcycles in the US to young adults ages 18-to-34, to women, to African-Americas and Hispanics, along with Caucasian men age 35+. HD also continues to sell more motorcycles to young adults today than it did to the baby boomers when they were young adults.
Media Spend: According to Kantar Media, HD spent $23.1 million on measured media in 2015 – up 34% from 2014 (and climbing). Most of HD’s 2015 spend was allocated to broadcast ads (82.4%), while the remainder went to digital display (6.1%), radio (7.4%), print (1.6%) and digital search (2.1%).
In addition to the $5.9 million spent on the March Madness-debuted “One Day” (more here), HD has spent $2.7 million on national TV ads in 2016 (for a total of $8.6 million). TV buys have increased as the year has passed, with the highest spend occurring in mid-April. In addition to March Madness, HD has spent the most to air ads on “UFC Fight Night,” “SportsCenter,” “Vikings” and “2016 Daytona 500.”
Note that while consumer-facing marketing spend is increasing in 2016, thus far, national TV spend is actually down slightly from the same period 2015 ($9.9 million).
Digital Breakdown: Moat reports that HD has run 294 display ads on 2,231 publishers so far this year (3% mobile). Top ad destinations have included yesweekly.com, stereogum.com, celebuzz.com, spin.com and go.com (44% placed site direct versus programmatically). The company has also run 178 high impact and two video ads this year.
For the same period in 2015, HD ran 108 display, 37 high impact and one video ads on 618 publishers (4% mobile; 80% site direct).
For all of FY 2015, HD ran 421 display, 301 high impact and six video ads on almost 4,000 publishers (1% mobile; 65% site direct). Since Jan. 2014, Moat reports that HD’s digital display presence has been pretty even, with a large spike in activity in Aug. 2015. Top sites are automotive, news and arts and entertainment sites.
3700 W. Juneau Ave.
Milwaukee, WI 53201
Chief Executive Officer (since May 1)
Vice President, Global Integrated Marketing