Consumer Behaviour and Market Segmentation

Questions: 1.What kinds of things have Harley-Davidson done well with its Harley Owners Group (H.O.G.) program to create an extraordinary customer experience that is unique and valuable to its members?2.To enlarge its customer base, what kinds of things would you recommend Harley-Davidson do to cultivate long-term relationships with a younger audience, e.g., aged 18-34? Answers: Introduction The Harley-Davidson is synonymous with a special type of individual- one who values his individualism and appreciates its uniqueness. Given the circumstances, it goes by extension that not everyone is a potential owner of a Harley-Davidson. The HOG program aims at rewarding such individuals with an unique brotherhood of likeminded persons. The extraordinary customer experience that they enjoy is the focus of this case study. The company is also looking at growing its customer base by tapping into the market segment 18-34. Towards this end, the company is looking at cultivating a long term relationship with them. The measures that have been adopted are also discussed here. 1. The HOG refers to the Harley Davidson sponsored riding club that fosters a sense of brotherhood among the owners of this beautiful and powerful bike. The owners may come from different walks of life, yet share a common passion- individualism and freedom (Fller and Matzler, 2008). This is the underlying trait in every Harley Davidson owner and the HOG embodies this very same ideology across all countries where it has a presence (Schlegelmilch, 2016). In fact the HOG can be linked to a special kind of marketing technique being used by Harley Davidson to foster comradeship among this elite group. The company achieves this through the various events it conducts all year round as well as the more personalized relationship that it maintains through effective use of social media as well as the traditional face to face approach (Catulli, Cook and Potter, 2016). The process of building an extraordinary and unique customer experience starts when an individual purchases this elite vehicle and is offered a free year long membership with the HOG. This is a typical method of allowing him or her to test the waters and see what the riding club has to offer its members. After participating in the various activities like local charity events or joining in for both short as well as destination rides, most of the Harley Owners are keen on continuing to be part of HOG. The renewal of the HOG membership also allows them several benefits as well as discounts! The fierce sense of brand loyalty and brotherhood is part of the HOG program by Harley Davidson (Catulli, Cook and Potter, 2016). The community is a close-knit one and can easily count on each member to look out for the others in the group. The members of HOG share a passion for individualism and uniqueness as well as the high level of competitive spirit and commitment that is as much a part their character as it is of Harleys brand image. The destination rides are perhaps the most effective marketing tool used by the brand. This strategy has stood the test of time as man and machine come together to put themselves against all odds and achieve the challenges set for the day. The riders look forward to the exhilarating experience as they leave their daily struggles and day to-day worries behind and loose themselves in the cheerful friendships that do not question them but rather act as an invisible support to help them achieve glorious heights! 2. Like all companies and brands looking at driving sales, Harley-Davidson to is exploring various possibilities while it tries to make inroads into the younger audience. This target group lies within the age of 18 to 34. The interesting fact that separates them from the other groups already enjoying the Harley-Davidson experience is the relative lack of disposable income in their hands! In other words, these are individuals who share the same sense of uniqueness, individualism and competitive sprit as their seniors; yet lack the finances to become the proud owners of this legendary bike. The brand has, however, not tweaked the prices of the legendary bike, but has implemented changes to make it look more sleek and subtle. This is an unsaid, yet clear message that the brand delivers this new target market. It clearly says that while the brand is ready to make modifications the potential owners would love, they are not ready to lower prices and have this elite group overrun with all kinds of persons (Khr et al., 2016). The individual who wishes to be part of this elite circle must prove himself worthy of this claim by clearly proving his uniqueness and individualism (Divett, Crittenden and Henderson, 2003). The brand needs to consider STP (Segmentation, Targeting and Positioning) while looking at exploring the identified target market, so as to not only augment sales but also to significantly improve its customer base (Ouwersloot and Odekerken?Schrder, 2008). The first steps taken by the company in this regard are worth a mention. The interaction through social media is ideal to engage this market segment as they are internet savvy and tend to spend a considerable part of the say on various social media sites. By positioning a unique version of the original bike, Harley-Davidson has also clearly indicated their agenda of looking at this market segment through a different perspective (Paul, 2010). The idea of the Jump Start program is a great means of giving interested persons among the younger generation a thrilling ride on this graceful and gutsy machine. Recommendation Some of the additional initiatives that can be taken to establish a long term relationship with this group could include inviting a few individuals from the Jump Start program to participate in a short drive or charity event organized by HOG and enjoy the experience firsthand. This would surely kindle the fire that would take them places and make them worthy of being a part of the elite crowd of Harley-Davidson owners. Conclusion The Harley-Davidson and HOG are symbols of a brotherhood sans physical and national boundaries. The members of this elite group enjoy challenges that bring out in them traits like endurance, leadership and brotherhood without consideration of physical or national boundaries. 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