Harley Davidson Branding - Essay Example

? Branding: Harley Davidson Introduction Branding and marketing have long been central aspects of organizations. While a variety of different perspectives on branding exist, the notion has been understood as a “fundamental strategic process that involves all parts of the firm in its delivery” (Geoffery, 2000, p. 32). This strategic approach constitutes both the organization and the community’s perspective on the brand. The exact method that brand identities are constituted and manipulated is a subject of great debate within academic literature. While traditional approaches to branding implemented position statements – this product is better than another product because of these reasons – the contemporary paradigm of branding considers more emotional elements. Within this spectrum of understanding, a product’s brand is understood as a dynamic entity constituted by consumer and community engagement. Further considerations examine the economic and identity-forming elements of brand design. This research specifically considers the community-branding and identity-branding models as they are implemented by and exemplified in the Harley Davidson motorcycle company. Analysis Background Harley Davidson is today recognized as one of the preeminent American brands. Fig. 1 below depicts the Harley Davidson logo. While Harley Davidson is a vibrant 21st Fig. 1 Harley Davidson Logo century organization, the company began in the first decade of the 20th century. William Harley and Arthur Davidson founded the organization in Milwaukee, Wisconsin in 1903 (Mitchel 2007, p. 5). The organization’s first productions were not motorcycles, but engines that were featured for sale in a variety of magazines. During the first decade of their existence they experienced gradual growth through the establishment of a variety of factories in addition to the development of full motorcycles. By 1914 the organization had surpassed their primary rival Indian and would dominate motorcycle for many years, as production numbers increased to 16,284 machines annually (Mitchel 2007, p. 30). By 1920 the organization was the largest motorcycle manufacturer in the world and has expanded their operation to over 67 countries (Mitchel 2007, p. 32). The organization was one of the two major motorcycle manufacturers to survive the Great Depression. Still, it wasn’t until World War II that the company began producing pre-depression levels of motorcycles, as they began providing the military (Mitchel 2007, p. 35). In 1969 American Machine and Foundry (AMF) purchased the organization. Following the purchase the organization faced increasing competition from Japanese manufacturers (Mitchel 2007). In the early 1980s the organization was sold again to Vaughnn Beals and Willie G. Davidson (Mitchel 2007, p. 114). Upon assuming control of the organization, the direction was changed to reflect more retro principles; by 1990 they had again regained control of the heavyweight motorcycle market in the United States. While the organization has survived tremendous social and cultural upheaval both within the organization and the broader business climate, to a large degree the product designs of the company maintained relative consistency. In terms of product design, the organization is highly unique in its motorcycle productions. In these regards, the motorcycles generally weigh more than traditional motorcycles and are accompanied with loud and distinctive exhaust and design; in 1994 the organization even attempted to attain a patent for its motorcycle sound, yet was ultimately rebuffed in its efforts. In terms of specific design elements, the current Harley Davidson motorcycles reflect that classic designs that were produced during the early parts of the 20th century (Mitchel 2007). Indeed, the organization’s efforts to develop product differentiation have generally experienced failure over the past decades. Some of the most notable elements related to modern incarnations of Harley Davidson have been the cultural elements related to Harley Davidson. In terms of age, during the 1980s more than half of all Harley Davidson riders were under the age of 35; today only 15% of Harley Davidson riders are under the age of 35 (Mitchel 2007, p. 209). Additionally, the average income of the riders has risen over the last few decades. While the organization is most recognized for motorcycle production, a strong aspect of their business model is devoted to the production of supplementary merchandise. This cultural appeal is widespread and has resulted in the development of the Harley Owners Group (HOG) that is entirely devoted to Harley motorcycles; additionally a number of museums exist solely featuring Harley Davidsons. Perhaps, more troubling, however, is the long-standing affiliation of motorcycle gangs, such as the Hell’s Angels, with Harley Davidson motorcycles. Why Harley Davidson was Chosen There are a variety of reasons Harley Davidson was chosen as the brand for this specific analysis. One of the major considerations is that the organization has come to represent an iconic brand within American society. This is attributable not only to the mass popularity of the motorcycles, but also because of the over a century of history the organization has been intertwined with. One considers that while Harley Davidson is identifiable with the Hell’s Angels motorcycle gang it has also contributed directly to American war efforts in World War I and World War II. These historical considerations provide a potent backdrop of analysis. Still, perhaps more applicable to contemporary theoretical notions of branding is the recognition that rather than relying on traditional cost or quality elements in establishing market differentiation, the organization’s brand has assumed an exceptional level of importance. Harley Davidson is synonymous with both personal identity, as well as a community of individuals with values and ethical standards that differentiate themselves from other members of the population. While to a degree these elements are indicative of all brands, within the context of Harley Davidson they have assumed such prominence that they function as an apt example to which apply branding models. Harley Davidson Community Branding One of the major approaches to branding in the contemporary environment is the community branding approach. From an overarching context, community branding is the process where through promotion or consumer involvement a community is established around a brand. Within this overarching spectrum of understanding, there are a variety of different critical perspectives. One of the foundational perspectives on brand communities was established in later research. Muniz and O’Guinn (2001, p.3) note that a brand community involves “a specialized, non-geographically bound community, based on a structured set of social relations among admirers of a brand.” Fig. 2 below demonstrates this structure. One considers that rather than the brand community being Fig. 2 Community Branding Model consciously established by the organization, this perspective considers that these communities are naturally established occurrences that contribute to a consumer established brand meaning. This perspective is further enhanced by other studies that “demonstrate that marketers can strengthen brand communities by facilitating shared customer experiences in ways that alter those dynamic characteristics” (McAlexander, Schouten, & Koening, 2002, p. 1). While these perspectives constitute some of the major views on community branding, this research recognizes that in many ways there are conflicting views on the exact essence of community branding. The question then becomes how community branding is exemplified within the Harley Davidson brand. There are a strong variety of ways that Harley Davidson exemplifies and implements community-branding practices. In terms of analyzing brand elements Fournier (1998, p. 1) notes that researchers should identity, “the phenomenological significance of consumer-brand bonds” (Fournier 1998, p. 1). In terms of Harley Davidson communities the organization itself has noted that “the real rider and enthusiast, who rides and looks to Harley-Davidson for functional gear such as helmets, gloves, boots, etc.; and the “aspirational” customer who hopes to someday own a Harley- Davidson, but in the meantime wants Harley-Davidson-associated products” Within this spectrum of understanding there exists a variety of specific Harley Davidson communities. The specificity of these communities is unique among consumer products as these tribes or brand communities are generally informal in nature. In terms of formal organizations however one of the most prominent is the Harley Owners Group (HOG). This group is sponsored by the organization and is noted as "the granddaddy of all community-building efforts serving to promote not just a consumer product, but a lifestyle” (Denove, 2009, p. 12). One notes that this is a highly significant statement as it indicates the establishment of this community was an inter-organizational effort that was ultimately embraced by the community of Harley riders. This community of Harley owners then contributes to the dynamic content of the Harley brand through their tribal interactions. As the organization sponsors the HOG group, it also functions as an apt means of product promotion and the organization has implemented deals and member discounts to members. While Harley Owners Group constitutes an organizationally established community branding strategy, the Hell’s Angels represent an informal off shoot of community branding that has co-opted the Harley Davidson. In these regards, one considers McAlexander, Schouten, & Koening (2002, p. 1) who view community branding as “treat(ing) vital characteristics of brand communities, such as geotemporal concentrations and the richness of social context, as dynamic rather than static phenomena.” One of the most characteristic elements of the Hell’s Angels is their affiliation with Harley Davidson motorcycles. Indeed, these bikes have become a patch of honor for the biker gang. Today for an individual to become a member of the Hell’s Angels they must be a white male, have a driver’s license, an American made working Harley Davidson motorcycle, and can never have applied to be a police officer or prison guard (Winterhalder 2005, p. 4). Notably, this organization demonstrates a strong community structure. Similar to the mafia, there are a highly structured variety of stages an individual must progress through – including hang around, associate, and prospect stages – before becoming a fully-fledged member (Winterhalder 2005, p. 5). Identity Branding While community branding constitutes one of the central elements of branding with Harley Davidson, it’s also clear that the organization strongly implements aspects of identity branding. While community branding views branding from the perspective of the public, identity branding largely considers branding as established by the organizational ethos or institutional culture. It’s noted that “Every organisation has an identity. It articulates the corporate ethos, aims and values and presents a sense of individuality that can help to differentiate the organisation within its competitive environment” (Balmer 1998, p. 5). One considers that this view posits brand identity as established by the organization. Balmer (1998, p. 5) further notes that “By effectively managing its corporate identity an organisation can build understanding and commitment among its diverse stakeholders” ("Investor relations Harley," 2012). Further considerations relate to the strategic elements of identity branding. In these regards, one of the most prominent considerations has been that organizations should establish a singular brand identity rather than multiple channels of image. This brand element then constitutes the organization’s corporate identity. This corporate identity has been noted as “An assembly of visual, physical or behavioural cues representing the company, making it immediately recognisable to stakeholders” (Identity Approach, PPT). Additionally, it’s recognized that the corporate brand identity is influenced by a variety of elements. It’s clear that Harley Davidson has prominently engaged in identity branding through a variety of strategic means. Indeed, this organizational identity is partly exemplified in the company slogan, “It’s a journey, not a destination” ("Investor relations Harley," 2012). This slogan is significant as it doesn’t attempt to implement traditional branding tactics that include position statements – this product is better than another product – but rather conjures an emotional experience that the public can then grasp and attach identity to. For Harley Davidson the strategy has been defining itself as the product for American individuality. The organization’s Vice-President of consumer products has noted, “Harley-Davidson is a person in disguise. Harley-Davidson appeals to you as an individual, appeals to your need for escape and adventure. The whole spirit is the ability to take that individuality to customization” ("Investor relations Harley," 2012). In these regards, the organization has attempted to tap into the long-standing American tradition, from Ralph Waldo Emerson to Mark Twain and Bob Dylan that has romanticized the notion of American individualism. As established earlier in large part this individualism has been adopted by the community and redefined in a variety of contexts, yet still this is the underlining theme. One considers the slight paradox in a brand that is the product of a collective organization promoting individualism, but this hasn’t halted customers evidenced by the company’s long-standing success. Notably, elements have challenged Harley Davidson’s corporate brand identity. To a large degree, Harley Davidson has disavowed their connection with the Hell’s Angels for the later criminal activities. One recognizes this as being counter to the positive corporate identity the organization has attempted to establish. While Harley Davidson has attempted to present an image of socially responsible individualism, the Hell’s Angels have gained widespread notoriety for its crimes and sensational actions. Currently, the group is recognized by the United States Department of Justice as an organized crime unit. Within the spectrum of identity branding, another notable consideration is that a number of sociocultural elements are established including “shared consciousness, rituals and traditions, and a sense of moral responsibility” (Elliott and Percy, 2007). While the members of Hell’s Angels contend they make great contributions to society, they have also been involved in a high number of criminal incidents that are directly counter to the identity values established by Harley Davidson. Indeed, the Hell’s Angels current motto is, “When we do right, nobody remembers. When we do wrong, nobody forgets." Perhaps, the most seminal incident occurred at the 1969 Altamont Free Concert, a free Rolling Stones concert (Lavigne 2010, p. 72). The Hell’s Angels were hired as security for the event, but during one incident greatly overstepped their bounds and killed one of the concertgoers. This incident is only the most publicized in a long-history of criminal incidents. What has emerged then is a hybrid brand that combines Harley Davidson’s corporate identity with values of the Hell’s Angel’s community. Ultimately, this hybrid, or doppelganger identity, can challenge the corporate identity established by the company. Another prominent aspect the organization has attempted to maintain is elements related to authenticity. The notion of authenticity is a prominent concern in identity branding, but also in the broader branding literature. It is recognized that while the organization can attempt to maintain levels of authenticity within their organizational strategy, if the community believes that the company has sold out on its identity promises there is the potential of experiencing a consumer backlash. Still, it appears that to a great degree Harley Davidson has maintained their brand authenticity. Perhaps, the most prominent area where this occurs is in terms of motorcycle design. During the early 1980s in response to increasing Japanese competition the company began instituting a retro approach to motorcycle design ("Investor relations Harley," 2012). Fig. 3 below is an example of this retro-motorcycle design. One considers that implementing such classic motorcycle design extends beyond simply appealing to customers on functional levels. Instead, this design harkens back to Harley Davidson’s century long-history, including its contributions to the American war effort in World War I and World War II. This feature is highly significant when one considers that during the early 1980s the organization was experiencing increasing competitive pressure from Japanese manufacturers. The retro-identity shift then functions as a means of the organization identifying itself with longevity and stability, as well as traditional American values. Fig. 3 Harley Davidson Motorcycle In addition to the retro-marketing elements that are inherent in the motorcycle design, the organization has worked towards establishing authenticity within its merchandising and licensing. One considers that revenues from products with the Harley Davidson logo constitute a large portion of Harley Davidson’s business. The products in these regards represent Harley Davidson’s corporate identity in its purest essence. As a means of maintaining the cache attached to these products then the organization has instituted these levels of authenticity. The organization has noted that their “main concern is maintaining the integrity of the Harley-Davidson brand…although it may be the tactic of some companies in the licensing business to generate money at any cost that comes with significant risk to a brand and certainly is not the Harley-Davidson strategy” ("Investor relations Harley," 2012). Ultimately, this strategy contributes to the overriding corporate brand identity. Conclusion In conclusion, this essay has examined Harley Davidson in terms of community branding and identity-branding. Within this spectrum of investigation, the research has considered that over a century long history, Harley Davidson has prominently contributed to its branding elements. Still, perhaps, more prominent has been the adoption of the values of individualism both within the community and through organizationally promoted marketing efforts. Both formal and informal communities have emerged, notably the Harley Ownership Group and the Hell’s Angels, which have co-opted the Harley Davidson brand. In addition to these community-branding elements, the organization demonstrated to have implemented its own identity based strategy that associates its products with individualism and adventure. Ultimately, it’s clear that branding exists and evolves along a variety of intersecting marketing models. References Denove, C. (2007). Satisfaction: How Every Great Company Listens to the Voice of the Customer, Portfolio. Elliot, R. & Percy, L. (2007). Strategic Brand Management. Oxford, NY: Oxford University Press. Fournier, S. (1998). Consumers and Their Brands: Developing Relationship Theory in Consumer Research. Journal of Consumer Research. Vol. 20, No. 3. Geoffery, R. (2000). Branding: A practical guide to planning your strategy, H.N. Kogan Page: London: Dover. Investor relations Harley Davidson. (2012). [Online] Available at: http://investor.harley- davidson.com/phoenix.zhtml?c=87981&p=irol-irhome Lavigne, Y. (2010). Hell's Angels: Into the Abyss, HarperTorch. McAlexander, J., Schouten, J. & Koening, H. (2002). Building Brand Community. Journal of Marketing: Vol. 66, No. 1, pp. 38-54. Mitchel, D. (2007). Harley-Davidson Chronicle – An American Original. Publications International Limited. Muniz, A. M. Jr. & O’Guinn, T. (2001). Brand Community. Journal of Consumer Research, 27 (March), 412-32. Winterhalder, E. (2005). Out In Bad Standings: Inside The Bandidos Motorcycle Club – The Making of a Worldwide Dynasty, Blockhead City Press, Seven Locks Press. Read More