Harley-Davidson Could Reap Massive Benefits from Social Influencers
Motor Company brand ambassadors and social media marketing tactics might prove successful in attracting a new generation of buyers.
Silver Lining
At the start of the year, Harley-Davidson announced it had missed earnings expectations by a wide margin. Softening the almost twenty-five percent sales drop news, CEO Matthew Levatich announced that “relevance and interest through...activations with celebrities and social media influencers” had generated a substantial increase in traditional media. But what does this actually mean, and what are social media influencers?
Millennial Influence
To understand social media influencers, one needs to understand millennials — adults born in the early-1980s to the late-1990s. According to Forbes magazine, millennials make up twenty-five percent of the population, outnumber the previous generation three to one and spend $200 billion annually. Millennials have also been credited with 'killing' businesses with their consumer choices, and Harley-Davidson is feeling the pressure.
Relevant Market
There is no conspiracy to destroy America’s favorite brands. It is just capitalism at work. Challenged by mounting debt and a lack of career opportunities, millennials have been forced to rethink their spending habits. Once the demographic of choice for new motorcycle sales, twenty-somethings are now focused on cheap commuting options rather than 'freedom machines' meant for hitting the open road.
Media Shift
Millennials are changing the face of marketing and brands need to evolve. A recent study by the McCarthy Group showed that a high percentage of millennials do not consume or trust traditional marketing, opting instead for advertising-free, Livestream platforms. Marketing that has proven successful is interwoven with social media and online content, delivered by celebrities and digital personalities — otherwise known as brand ambassadors or influencers.
Industry Image
Social media influencers foster an appearance of authenticity and generate a sense of trust — something critical to leveraging the millennial dollar. Harley-Davidson is banking on social media influencers to rev-up young, image-conscious consumers. As UBS Investment Bank analyst Robin Farley said, “One hopeful sign for the industry is that younger...buyers cited the second most common reason for buying a motorcycle is...self-image.”
Proof of Concept
Celebrity marketing power was in full effect for the 2018 Softail release. In a social media stunt, the Motor Company gave away new motorcycles to Aquaman movie star Jason Momoa, country musician Brantley Gilbert, and rapper Ludacris, among others. Under the hashtag #freedommachine, the campaign was met with mixed reviews. Despite the hype, the majority of attention focused on Harley-Davidson canceling the Dyna platform.
Staged Party
For Harley-Davidson's 115th birthday celebration, media company The Marketing Arm [TMA] staged a made-for-Instagram party with the goal of “inspiring that next generation of Harley-Davidson riders.” TMA wrote that they “ tapped into existing talent relationships...to gather a varied group of high-profile influencers.” TMA explained, “The adventure kicked off by providing them with motorcycles to ride out of the gates of Harley-Davidson HQ for a weekend of riding, racing, and revelry.”
Aging Antics
To seasoned riders, Harley-Davidson's marketing antics may seem a little over-the-top, but younger riders are needed to drive growth forward. The current Motor Company client is a fifty-something male, and as Robin Farley stated in discussion with Forbes, “Unless there is a generational shift among younger riders to see motorcycling as a hobby vs. means of transportation, the...industry could continue to be more dependent on an aging demographic.”
Rider Support
CEO Matthew Levatich is correct in citing social media success, it is a proven tactic — despite being somewhat abstract. Harley-Davidson's goal of two-million new riders over the next decade is a tall order, but necessary order. Perhaps the less abstract approach is to simply support the next generation of Harley-Davidson riders and their choice of ride, be it a Pan America or the Livewire — after all, freedom is all about choice.
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