Case Study: Harley-Davidson

Student Name:

Student ID:

Date of Submission:

Word Count:
Contents
Abstract.......................................................................................................................................................2
Part A: Critically examine the existing literature on overall customer experience and loyalty building
and discuss the various approaches firms can utilize to develop closer relationships with their
customer bases. You are required to draw on the relevant theory, models/frameworks to support
your viewpoints...................................................................................................................................3
Customer Experience and Customer Loyalty...........................................................................................3
Harley Davidson and Customer Retention...............................................................................................5
From the case study, what has Harley-Davidson done with its H.O.G. program to create an
extraordinary customer experience that is unique and valuable to its members? Has the motorcycle
manufacturer been successful?...........................................................................................................8
To enlarge its customer base what would you recommend Harley-Davidson do to cultivate long
term relationships with a younger audience aged 18-34...................................................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................12

Abstract
Established in 1903 in Milwaukee, Wisconsin, Harley-Davidson, Inc. is known as H-D or Harley. Indian
Motorcycle and Harley survived the Great Depression in the 1930s. One of the world's largest
motorcycle makers has weathered multiple ownership structures, various combinations of ventures, and
periods of ill health, as well as heavy rivalry, to attain its legendary status.  The Harley-Davidson model
gives birth to the biker subculture. Previously, the company had specialized in the heavy-displacement,
air-cooled models with a maximum engine capacity of 700 cc, but now it has added new Street VRSC
(the Street 650 in 2015)

Harley-Davidson manufactures the bikes in York, Pennsylvania; Kansas City, Missouri; Manaus, Brazil;
and Baw, India. Construction of new plants started in 2018. Harley-Davidson vehicles are used in 50
countries, along with merchandise and related items such as house wares, ornaments, and toys, among
which are sold under the Harley-Davidson branding.

This case study is will be based on Harley Davidson on their overall customer experience and hpw their
loyalty is build around their customer base.
Part A: Critically examine the existing literature on overall customer experience and loyalty
building and discuss the various approaches firms can utilize to develop closer relationships
with their customer bases. You are required to draw on the relevant theory,
models/frameworks to support your viewpoints.

Customer Experience and Customer Loyalty

Customer experience is a multi - dimensional construct, and it is defined as the complete range of
interactions customers have with your products and services from the outset. Customers rate products
on five different criteria: auditory, visual, physical, emotional, social, and behavioral. Various scholars
have provided their own interpretations of the characteristics of customer experience and customer
loyalty. Imbug et al. (2018) notes that customer satisfaction is tied to the overall customer experience.
Imbug et al. argues that customer experience leads to brand favorability. He and Jaakola and Becker
(2019) state that consumers choose to become faithful as a result of the quality they obtain across
service channels. Today, many businesses concern themselves with customer retention because it is
more difficult to acquire new clients than it is to keep current ones (Zhong and Moon, 2020). The best
customers are customers who have strong allegiance to your brand, so they are more likely to become
repeat customers and to purchase more of your products (Aaker et al., 2019). Customer experience is
critical to making consumers come back to the brand or for more business or telling someone about it,
thereby affecting the latter. Study (2011) found that recalled memories had a higher influence on
subsequent behavior. It's no surprise that the general public assumes Harleys with middle-aged,
established and males. While this subset of customers can seem to be a drawback, it has in fact allowed
HD to build their name. Have you been working hard to consider your target customers? So it is not a
coincidence that white men in the middle-aged category have a lot of money to spare. H-D is restricting
itself to a target demographic and offering a more tailored marketing experience for people who are
most likely to buy.

Harley ensure that the two fundamental elements of a customer concept are therefore customer
understanding (perception) and touch points like self-service and live chats in a buyer's journey. Each
time they interact with the brand is an opportunity to establish or strengthen their connection to the
brand image. Once they become a Harley customer, that customer becomes a member of a life time. For
over fifteen years, Harley-Davidson has conducted a club known as the Harley Owners Group, or HOG,
which connects both Harley-Davidson owners and Harley-Davidson with each other. Members benefit
from a variety of different workshops on different topics, including bike repair classes, as well as
leadership aid in starting and developing a new clubs. The HOG claims 325,000 members worldwide and
940 regional chapters. Exhort consumers to be involved in the H-D network and virtually guarantee their
loyalty.

Figure 1: Customer Pyramid Model

Source: Lecture Material – Week 8 (Ghag, 2019)
Profitability is generated mostly from the firm's most-loyal customers; about 80% of the revenues come
from the top 20% of the consumer base. As seen in Figure 1, Harley-Davidson is attempting to make
money for all three of its consumer categories, while at the same time building stronger ties with its
‘Gold' and ‘Iron” customers'. This theory can be elaborated in Section B." compensation plan
additionally, they can deliver creative and solid resources if
they connect with the 'Flower of Service' concept, which
was established by Christopher Lovelock. If Harley-Davidson
doesn't follow up with their service strategy and refuse to
do so successfully and well. The integrity of the company
would be damaged if these customers could feel they didn't
get their ordinary experience as well. Consequently, ‘Figure
2”s Flower of Service” includes identification of all service
elements that foster long-term customer loyalty”.
Borrowing the nomenclature from flowers, the Flower of
Service principle made use of the idea of facilitating and
enriching key products a metaphor for complimentary services. We provide facilitating and enhance the
overall offering to meet end-to-to-end marketing targets (Lovelock & Wirtz 2011).

Harley Davidson and Customer Retention

Harley Davidson is an outstanding case study in fierceness of loyalty long-term customer retention (also
known as long-term customer loyalty) is something everyone is striving for. Harley owners aren't just
Harley riders; they also sport the tattoo, the t-shirt, the helmet, and the motorcycle-toting article of
clothing that is associated with their passion. Although they've only just met, they understand each
other. Joining the Harley-Davidson culture is how Harley-Davidson is seen when a motorcycle rider views
himself. Harley riders would never contemplate switching to another brand of motorcycle. What for? So,
by doing that, they'd be forced to give up their status in the Harley world, and they certainly would not
give that up. They have so much invested to do so. Harley-Davidson officials stated that the firm is
continuing to base its global business strategy on tradition while still redefining its international image,
the Vice President and Managing Director of international markets told. Because Harley Davidson is the
first, he thinks it is his responsibility to provide resources and supports for other social networks that
align with the original brand and mission. “What we see from our customers – and the passion that we
generate when experiencing the product – is not just the machine; it's about the freedom.” (How Harley
Davison builds an experience that's scalable, 2021).

Harley-Davidson, creating customer satisfaction depends on keeping in close contact with consumers
through face-to-to-face and social media communication. They stay on top of new and updated findings
in order to ensure they stay ahead of changes in standards and expectations. As a result, Harley-
Davidson management builds long-relationships by listening to and accepting their customers'
viewpoints where they feel valued, and thus providing them with an extraordinary customer experience.
Additionally, the Harley-Davidson Corporation shares its corporate ideals and philosophies and past
history with its workforce, and does prepare employees for careers in a technical setting by means of
the Harley-Davidson School of Business in the United States. The new program will produce exceptional
customer support and benefit from greater overall customer volume. This would lead to higher business
sales and loyal customers in the long term. In order to accomplish customer experience and grasp their
market share and encourage customer retention, they can
Conduct a customer experience audit - The first step is to understand who your top clients are.
Customers typically invest above average on the commodity category average of most businesses. the
true believers stuck on as the market was filled with awful products and disinterested after-sales
operation The next step is to figure out what it is the consumer wants and to meet their expectations.
This was Richard Teerlink's biggest innovation as CEO
Creating a clear brand platform - It's likely that the Brand Identity and Positioning are already present in
most organizations, so it's critical that you make them both transparent and comprehensive. It pertains
to these issues: positioning the brand with consistency, Brand   Brand architecture: Promoting synergy.
The graphic and verbal ways of branding? In Harley-situation, Davidson's it can  became evident that the
brand can stand out than the competitor brands.  
Creating a powerful emotional appeal - However, the brand is not based on selling motorcycles. Harley-
Davidson is unable to contend with Japanese and Korean models which appear to be less costly and
equipped with more sophisticated mechanisms. So, Harley-Davidson can transform its communications
director in the 1980s and 1990s To most consumers, a Harley-Davidson is more than just a bike—love,
it's individuality, and power; and when it rides for you, it roars. As well as clients are those who are
connected to the company, who is a testament to the American heritage. H-D treats consumers as real
people, not just as customers; that keep them invested in the company. While new marketing channels
keep popping up, new marketing tactics are being developed. Although it's terrific to have a multitude of
marketing approaches available, we can focus on couple of few that really do well and fine-tune them.

Tier One – Making the customers your brand ambassadors

Harley-existing Davidson's clients tell a lot about a corporate-to-company communications campaign. An
person testimonial from others does better than anything they might tell/say about themselves, to
encourage consumers to contact Harley-Davidson

Tier Two – Interact with the Harley Davidson customers in regular content marketing
Harley Davidson is endeavors not simply to spread the Brand Harley-Davidson by adopting film,
blogging, and social media channels, but to generate interest in Harley-products Davidson's or services.

Tier Three – Focus on the social media channels that the client base most likely use
The B2C display is the most complex approach since it takes together all the other strategies. Potential
consumers need fast and efficiently usable data. Thus social networks such as Facebook, Twitter,
Instagram and LinkedIn are sites on which Harley-Davidson can rely to attract its customers.

You dream of raving fans to promote your business as a business owner. You do not only want to
suggest but to wander around your clients. Customers who have 100% confidence in the name and will
not hesitate until they say how good you are to the world. How do you build them? You'll have to work
from the ground up to create a dedicated
group of customers. The first contact is the
basis for the best clients. The "Ladder of
Loyalty" is a seven-step path to get loyal
customers. You should strengthen every move,
starting from the end objective, in order to
obtain more customers at this stage.

The definition of Customer Loyalty Ladder

relates to the promotion and brand
management of long-term customer ties. The
cost of recruiting potential clients is said to be 4
or 6 times higher than that of doing business
with current clients. Therefore, every company
should be pleased and fulfilled with its current
customers to achieve a more profitable market.
The Customer Loyalty Ladder therefore wisely
allows the consumers to step up the ladder to a
strategic company for involvement.

Suspect - They are the future clients of a company. They may be aware of the organization's advertising
activities, but they currently do not deal with it.
Prospect - They are those who are delighted with the ads of the company and take the purchase of the
organization seriously into account. They must be treated cordially and all their questions solved.
Customer - They have first purchased and are now using the company's goods. In order to address their
needs, the company must provide all available after-sales assistance to them. These clients may
participate in a fidelity or fidelity discount.
Client - They do business with the company repeatedly and are ready to promote their commitment
towards the future. If customers are well committed, their brand loyalty will help improve sales.
Supporter - Instead of every other citizen a relentless buyer or client purchases from you. You have a
solid, advanced friendship that makes the individual impermeable to the challenge. This is where you
start to move from being a supplier to a trusted adviser to expert services companies. You are the 'top
of the mind' and the only company a client asks for help.
Advocate - You are not only repeated business with a company; you even refer the company to your
own friends. The most valuable players are they and the organization must take care of them royally.
Raving Fan - This division is regarded as the company's strongest distribution group. You will find
consumers willing to buy and send them to the company.

From the case study, what has Harley-Davidson done with its H.O.G. program to create an
extraordinary customer experience that is unique and valuable to its members? Has the
motorcycle manufacturer been successful?

The Harley Owners Group (H.O.G.) is an organization of Harley-customer-oriented, Davidson's

Community Marketing Club for fans of Motorcycles brands. In relation to the Case Study, the steps taken
by Harley-Davidson for its H.O.G. service to build a special, meaningful user experience for its members
are given below.

To begin, Harley-Davidson did an excellent job with the Harley Owners Group (H.O.G) scheme by
offering potential members a one-year free membership. (Harley-Davidson (HOG), 2021) This program
encourages new members to be involved with their Harley and keeps the organization connected to its
clients. Holders will continue to reap numerous discounts and rewards the next year if they extended
their membership, including invites to events such as short rides, big destination rides, charitable
meetings, and the introduction of new bike models. Harley-Davidson positions the company very well by
establishing the brand in the eyes of customers in order to increase the firm's future earnings. As we all
know, positioning a product is critical in order to design a company's goods or services and logo in such a
way that they occupy a distinct spot in the consumer market's mind (Lacobucci 2015). The H.O.G
software offers an opportunity for owners to "to ride and have fun." This fosters a sense of community
among H.O.G chapters in various countries, allowing Harley enthusiasts to share their enthusiasm. The
outing of a group of Harley riders serves to foster camaraderie and to project an impression of
independence and adventure. As a result, participation in H.O.G has grown over time, not only among
men, but also among women. Additionally, H.O.G organizes activities for children and family members.
The activities help to establish Harley-Davidson as a desirable brand that consumers choose to identify
with due to its association with an inspirational lifestyle. (Ankit Ajmera, 2021)

Another exceptional client service is H.O.G's monthly charitable events. Contributing to society is one
way to encourage active citizenship. This is consistent with many companies' commitment to corporate
social responsibility (CSR). Members of H.O.G project a positive message of society by giving back and
contributing to the environment. H.O.G supporters on both continents often attend rallies and exhibit a
deep sense of brand pride for Harley-Davidson. This level of commitment illustrates why Harley-
Davidson owners are purchasing more than just a means of transportation. Ultimately, what draws them
to the bikes is a shared love for the machines' appearance, feel, and tone.
To enlarge its customer base what would you recommend Harley-Davidson do to cultivate
long term relationships with a younger audience aged 18-34.

Harley- Davidson may endeavor to identify and strategize all components in the 'Flower of Service'
annotated below on 'Table 1' for a younger 18-34-year-old audience in which they effectively complete
their core service plan, as any additional service factors are identified and dealt with accordingly. This
will broaden its client base and establish long-term ties with a younger audience.

Table 1: ‘Flower of Service’ Model – (Harley-Davidson)

Source: Developed by Researcher
Creating self-identification with the brand – The new generation grew up in a world that contains
omnipresent ads and sensations. (Koch, 2021) They know how the commercials are being used to sell
products, so we cannot bother with it less. Content is supreme, so Harley value people more than ever
before. WOM help this generation determine what to purchase and goods are vital to product sales for
workers or shop staff. Brands who call on this generation do not use social media but encourage the
young customer by giving him control. If Harley-Davidson wants young people to attract to their brand,
to keep them honest and to keep them true to themselves.

Creating a unique value proposition - Another really significant thing is individuality of branding young
people. Brands must be exclusive, that is to say they have a unique brand DNA or brand name to cater
to young people. In addition, the model of Aaker is
consistent with this since much of it concerns
branding. A stable positioning over the years is
indispensable in order to do this. Lynx, which has
been using the same marketing mantra for
decades, is a brand that does really well in this
sector. "Help men attract women". Further they
also can stick to Van den Bergh’s CRUSH model to
keep the brand communication Cool, Real, Unique,
Self- Identical and Happy so that the younger
target market can feel their sense of belonging.

Sticking to the brand positioning routes and brand DNA – Conducting a Net Promoter Score to create
brand awareness, image and loyalty will help to step up from the traditional ways. If the generation that
Harley Davidson is targeting highly rates them, this can help to improve them talking about the brand
and also help the brand image improve. (Kotler and Armstrong, n.d.)

Generating a long term relationship - Harley-Davidson should concentrate on all the younger public's
concerns. The younger crowd might be viewed as a suspect, a prospect, a shopper and a client, and
quite infrequently as members, supporters and enthusiastic fans. With reference to 'The Ladder of
Loyalty.' This is because they are very emotional and want to be met. Harley-Davidson should then
concentrate in particular on all issues ranging from the smallest to larger target demographic concerns
for the promotion of long-term ties with a younger population of 18-34 years.

Conclusion
Harley-Davidson makes emotional decisions and tends to morally defend them. The essence of their
ties, i.e. Harley-Davidson, is essentially delicate for all Harley-Davidson consumer classes. They are
essentially optimistic and rely on how they experience inside on a large proportion of their decisions.
They will carefully consider the most of the plausible and pragmatic explanations whether or whether
they do not buy goods or services, but they are mostly going to do their gut-feeling in the preliminary
stage of analysis, whether or not they can buy a product. The main approach will then be to create
sufficient sustainable consumer satisfaction and customer involvement with the brand in effort to allow
these buying offers a reality and raise profits. This is not possible over night. There are, of course, those
who disagree with the values and practices of brands and who even disagree with the Harley-Davidson
style philosophy.

References
Aksar, M., Kayani, M. and Ali, M. (2019), “A study of customer satisfaction and customer loyalty in the restaurant
and hotel industry of Pakistan”, Global Journal of Environmental Sciences, Vol. 1 No. 2, pp. 137-151

Ankit Ajmera, R., 2021. Royal Enfield's big bike could test Harley's India dominance. [online] U.S. Available at:
<https://www.reuters.com/article/us-harley-davidson-india-eicher-motors-idUSKBN1D626M> [Accessed 5 May
2021].

Becker, L. and Jaakkola, E. (2020), “Customer experience: fundamental premises and implications for research”,
Journal of the Academy of Marketing Science, pp. 1-19.

CX Network. 2021. How Harley Davison builds an experience that's scalable. [online] Available at:
<https://www.cxnetwork.com/cx-experience/articles/how-harley-davison-builds-an-experience-thats> [Accessed 4
May 2021].

Forbes. 2021. Harley-Davidson (HOG). [online] Available at: <https://www.forbes.com/companies/harley-

davidson/> [Accessed 5 May 2021].

Imbug, N., Ambad, S.N. and Bujang, I. (2018), “The influence of customer experience on customer loyalty in
telecommunication industry”, International Journal of Academic Research in Business and Social Sciences, Vol. 8
No. 3, pp. 103-116. Press
Koch, K., 2021. Digital Luxury: How The Digital Transformation Shapes Luxury Brands. [online] Brand-trust.de.
Available at: <https://www.brand-trust.de/en/article/2018/summary-study-digital-luxury.php> [Accessed 5 May
2021].

Kotler, P. and Armstrong, G., n.d. Principles of marketing. 2nd ed.

Lovelock, C.H, & Wirtz, J, 2011, Services marketing: People, technology, strategy, McGraw Hill, New York.

Zhong, Y. and Moon, H. (2020), “What drives customer satisfaction, loyalty, and happiness in fast-food restaurants
in China? Perceived price, service quality, food quality, physical environment quality, and the moderating role of
gender”, Food Journal, Vol. 19 No. 1, pp. 1-19.