3. Table of Contents Executive Summary…………………………………………………………1 Situation Analysis……………………………………………………..…2-7 Analysis of Marketing Objectives and Strategies……………..2 Competitive Considerations……………………………………………3 Target Audience…………………………………………………………….4 Geography Breakdown ………………………………………………….5 Timing and Purchasing Cycle…………………………………………6 Media Mix…………………………………………………………………….7 Media Objectives, Rationales, and Strategies…………..8-12 Target Audience Objective..……………………………………………8 Timing/Scheduling Objective…………………………………………9 Reach and Frequency Objective…………………………………….10 Media Budget Objective……….……………………………………...11 Geography Objective…………………………………………………….12 Flowchart…………………………………………………………….…….13-14 Goal Summary……………………………………………..……………15-16 Market List…………………………………………………………………….17 Yearly Summary…………………………………………………………….18 Monthly Detail (May)……………………………………………………19 Frequency Distribution for May-August……………………..20
4. Executive Summary Within the past few decades, Harley-Davidson has become more popular among females. Woman bike owners in the 850 cc class have grown 5.3 percent to 10.8 percent in the last ten years alone. Harley-Davidson plans to improve on this market by increasing sales of all models 883cc – 1200cc among women by 3000 units in the next year. In addition to sales increase, Harley-Davidson will also improve upon its image to female riders. 1
5. Analysis of Marketing Objectives and Strategies Methods used to sell product Outdoor Television (Spot, Cable, Net) Newspaper Magazine Market/Brand Brand/Product is at a mature market level Market size for women is 7,000,000 Strong Brand Recognition Regionally and nationally distributed Budget Past Budget - $26,554,800 Current Budget - $23,000,000 2
6. Competitor Considerations Major Competitive Players BMW Cagiva Honda Motors Indian MC Kawasaki KTM Motorsport Polaris Suzuki Triumph Yamaha Victory M.C. Competitor’s Media vs. Harley-Davidson’s Competitors use same media as Harley-Davidson except for three. Syndication television, and national newspaper and radio. However, these three mediums have a weak target audience and CDI Harley-Davidson spends more ad dollars in every medium participated in except for cable TV. (Harley-Davidson $7,997,100 – Honda $8,510,100 Competitors spend most of their ad budget in March, April, May, and June 3
7. Target Audience Demographics Women ages 18-54 Household income greater than $50,000 Employed – part or full time College education Home owner Married Psychographics Strong Confident Women Women wanting a sense of adventure 4
8. Geography Breakdown Brand/Product/ Advertisement Distribution Distributed nationally and regionally in West and East Central, and the South West. Non MSA and MSA Suburban Ads are distributed nationally with a heavy emphasis on spot advertising in prominent markets. 5
9. Timing and Purchasing Cycle Purchasing Cycle Typically bikes are purchased during the beginning of the warmer seasons and during holidays Parts and Accessories and bought throughout the purchasing cycle Purchasing months include – April, May, June, July, August, and December Timing Cycle Recent advertising does not match up with purchasing months Large part of the ad budget is spent in August 6
10. Media Mix Brand The Harley-Davidson brand has been turned into a lifestyle Strong brand recognition Consumers and non consumers immediately associate the logo with the brand’s image Media vehicles matching the lifestyle Simple images/messages are key as the brand/product does not need much explanation Ideal mediums include mostly visuals – outdoor, print, direct mail 7
11. Target Audience Objective Primary Target Audience Women 18 – 54 First time rider/buyers Employed House-Hold Income over $50,000 Secondary Target Audience Women 18 – 54 Owners of Harley-Davidson bikes Employed House-Hold Income over $50,000 Psychographics Strong Independent Women Wives of Harley-Davidson bike owners Target Audience Sales Objective Increase sales of all models 883cc – 1200cc among women by 3000 units in the next year. 8
12. Timing/Scheduling Objective Spring/Summer Months Primary Scheduling April – September will be hit hard with advertisements due to motorcycles being mostly weather-dependent Approximately $2.8 million will be used per month for this time period The advertising budget for these months will be spent fairly consistently. The campaign will launch at the beginning of spring (April) to get riders excited for the summer months ahead. Fall/Winter Months Secondary Scheduling October – March will not be as strong due to the weather and lack of interest in the winter months Advertising in January will be significantly reduced due to January being a ‘dead’ month. Approximately $1 million will be user per month for this time period The advertising budget for these months will be spent fairly consistently Outlier Months December will have increased advertising despite the winter due to the Christmas season. The ad budget for this month will increase to $1.3million 9
13. Reach and Frequency Objective Spring/Summer Reach and Frequency Objectives Spot reach – 80 Spot frequency – 5 National reach – 70 National Frequency - 5 Fall/Winter Reach and Frequency Objectives Spot reach – 70 Spot frequency – 5 December Reach and Frequency Objectives Spot reach – 80 Spot frequency – 5 National reach – 70 National Frequency - 3 10
14. Media Budget Objective Spot and National Campaign The budget will primarily be directed towards the spot campaign. The spot campaign was chosen because of the high CDI numbers in select markets. National ads will run far less than spot ads. Spot ad budget - $16million National ad budget - $7 million Media Mediums used include national and spot radio, magazines, internet, outdoor, and direct mail due to their high CDIs and strong following of consumers in the target audience 11
15. Geography Objective Binghamton, NY Sacramento - Stockton, CA Norfolk et al, VA Wilkes - Barre et al, PA San Diego, CA Tampa et al, FL Charlotte, NC Portland, OR Greensboro et al, NC Greenville et al, SC-NC Harrisburg et al, PA Nashville, TN Orlando et al, FL Phoenix, AZ Pittsburgh, PA 12
