Video Harley-Daivdson - Case Study Example

Video Case: Harley Davidson Harley-Davidson has pursued the concept of creating and maintaining relationships with s to a surprising degree, making it an integral part of their business model, with great success. It is more than just a motorbike that the company offers its customers; instead they offer an experience, a classic piece of American history and legacy that is associated with many movies and themes of freedom and individuality. The company connects with consumers through the marketing of the brand itself, and what it represents.

Among other things, the brand is world-famous as an American icon, offering an extremely wide range of Harley-Davidson branded products, including both practical and stylish clothing as well as accessories and merchandise. One way that Harley-Davidson connects with its customers is through the Harley owners club. This is supported financially by the company and is the largest club of its type in the world. The presence and activity of the club serves as a way of advertising and connecting both owners of Harley’s and those who see them with the brand.

The club gives a large feeling of comradeship and connectedness to those who ride together even though they are often strangers. The club gives the opportunity for members of the company to interact with customers on a face-to-face basis, as well as for the customers to interact with one another. The brand is not the only way that Harley-Davidson builds customer relationships. Another way is through value. Value is an important part of any customer-business relationship, the customer needs to know that what they are buying is worth the money, and that it will last.

Harvey-Davidson promotes the concept of value for their motorbike. Their advertising campaigns often focus on the durability and the image of the motorbike, showing a rider driving past just after showing a boat or another vehicle type breaking. 2. A value proposition relates to the concept that the product is of higher value than competing products in the same market. Value can be described as the benefits derived from the product minus the cost, where the cost also includes the risk. When it comes to owning a Harley, the costs can include costs of running, storing and maintaining the bike, however these are similar if not identical costs as for competing companies.

The company focuses on ensuring that their bikes are of good quality, and that they do not require excessive repairs, as a consequence not requiring as much cost in this area. However, this is not their main focus in terms of a value proposition. Harvey-Davidson’s value proposition doesn’t focus on comparing the cost of its product to others; instead it focuses mainly on the additional benefits that Harley owners receive over those of other motorbikes. As they explain, buying a Harley is more than buying a motorbike, it’s buying a lifestyle.

A Harley is associated with freedom, with individuality, with experiencing everything life has to offer and with adventure. Not only that, but the members club, and interactions between owners of Harleys have grown to the extent that there are high levels of companionship and socialization to be found. 3. Customer equity relates to the potential income involved in a customer, i.e. whether they will buy the product and then have nothing further to do with the company, or whether they will continue to use the products or services of the company.

High customer equity is beneficial for the company, as they need fewer customers to make the same amount of profit. In the case of Harley-Davidson, one of the key ways that they focus on customer equity is the manner in which they build loyalty with customers. Customers feel strong loyalty to the company and may buy motorbikes for family members, or further bikes as they find something more desirable, or alternatively spend money buying the merchandise and clothing. All of these actions increase the equity of the customer and as a consequence their worth to the company.

Harley-Davidson focuses more on the retaining customers than on bringing in new ones. Its advertising campaigns are centered on the idea that most people already know what a Harley-Davidson motorbike is, and the values associated with it. As such, they are more convincing people to be interested in the product than showing something new. Customers themselves are one of the biggest ways that Harley-Davidson advertises, the prevalence of riders, frequently in Harley-Davidson apparel, riding in packs, draws significant attention to the brand, reinforcing the brand that Harley-Davidson is working to maintain.