2009 Media Plan: Harley Davidson

2009 Harley-Davidson

Media Plan

By: Brian Moses

Table of ContentsExecutive Summary…………………………………………………………1Situation Analysis……………………………………………………..…2-7

Analysis of Marketing Objectives and Strategies……………..2Competitive Considerations……………………………………………3Target Audience…………………………………………………………….4Geography Breakdown ………………………………………………….5Timing and Purchasing Cycle…………………………………………6Media Mix…………………………………………………………………….7

Media Objectives, Rationales, and Strategies…………..8-12Target Audience Objective..……………………………………………8Timing/Scheduling Objective…………………………………………9Reach and Frequency Objective…………………………………….10Media Budget Objective……….……………………………………...11Geography Objective…………………………………………………….12

Flowchart…………………………………………………………….…….13-14Goal Summary……………………………………………..……………15-16Market List…………………………………………………………………….17Yearly Summary…………………………………………………………….18Monthly Detail (May)……………………………………………………19Frequency Distribution for May-August……………………..20

Executive SummaryWithin the past few decades,

Harley-Davidson has become more popular among females. Woman bike owners in the 850 cc class have grown 5.3 percent to 10.8 percent in the last ten years alone.

Harley-Davidson plans to improve on this market by increasing sales of all models 883cc – 1200cc among women by 3000 units in the next year. In addition to sales increase, Harley-Davidson will also improve upon its image to female riders.

1

Analysis of Marketing Objectives and StrategiesMethods used to sell

product Outdoor Television (Spot, Cable,

Net) Newspaper Magazine

Market/Brand Brand/Product is at a

mature market level Market size for women is

7,000,000 Strong Brand Recognition Regionally and nationally

distributedBudget

Past Budget - $26,554,800 Current Budget -

$23,000,000

2

Product

Sportster Prices

883 $ 6,999

Iron 883 $ 7,899

883 Low $ 7,999

1200 Low $ 9,799

Nightster $ 9,899

1200 Custom $ 9,999

XR 1200 $ 10,799

Competitor Considerations

Major Competitive Players BMW Cagiva Honda Motors Indian MC Kawasaki KTM Motorsport Polaris Suzuki Triumph Yamaha Victory M.C.

Competitor’s Media vs. Harley-Davidson’s Competitors use same media as Harley-Davidson

except for three. Syndication television, and national newspaper and radio.

However, these three mediums have a weak target audience and CDI

Harley-Davidson spends more ad dollars in every medium participated in except for cable TV. (Harley-Davidson $7,997,100 – Honda $8,510,100

Competitors spend most of their ad budget in March, April, May, and June

BMW AG $4,714.40

HARLEY-DAVIDSON MOTOR CO $26,554.80

HONDA MOTOR CO LTD $14,842.20

KAWASAKI $9,085.50

SUZUKI

$3,866.80

TRI-UMP

H MO-TOR-CY-

CLES LTD

$1,398.40

YAMAHA

CORP OF

JAPAN

$12,875.80

Ad Dollars Spent by Major Competitors and Harley-

Davidson

3

Target AudienceDemographics

Women ages 18-54Household income greater

than $50,000Employed – part or full timeCollege educationHome ownerMarried

PsychographicsStrong Confident WomenWomen wanting a sense of

adventure

4

Geography BreakdownBrand/Product/

Advertisement DistributionDistributed

nationally and regionally in West and East Central, and the South West.

Non MSA and MSA Suburban

Ads are distributed nationally with a heavy emphasis on spot advertising in prominent markets.

Top Geographic Areas

City CDI

San Diego, CA 159

Phoenix, AZ 153

Orlando et al, FL 149

Portland-Auburn, ME 149

Pittsburgh, PA 148

Tampa et al, FL 141

Wilkes Barre et al, PA 140

Birmingham et al, AL 130

Sacramento et al, CA 130

Harrisburg et al, PA 126

Norfolk et al, VA 125

Greenville et al, SC-NC 125

Nashville, TN 122

Charlotte, NC 122

Greensboro et al, NC 120

Raleigh et al, NC 115

Seattle-Tacoma, WA 114

San Antonio, TX 113

Buffalo, NY 113

Los Angeles, CA 111

Baltimore, MD 111

Atlanta, GA 109

Detroit, MI 109

W. Palm Beach et al, FL 105

Hartford & New Haven, CT 105

5

Timing and Purchasing Cycle Purchasing Cycle

Typically bikes are purchased during the beginning of the warmer seasons and during holidays

Parts and Accessories and bought throughout the purchasing cycle

Purchasing months include – April, May, June, July, August, and December

Timing Cycle Recent advertising does not match up with

purchasing months Large part of the ad budget is spent in August

JAN 04

FEB 04

MAR 04

APR 04

MAY 04

JUN 04

JUL 04

AUG 04

SEP 04

OCT 04

NOV 04

DEC 04

Month

980.4 3756.3

3336.3

2976.5

1734.9

594.1 351.2 5526.9

2088.8

1357.9

2505.7

1345.8

$500.00 $1,500.00 $2,500.00 $3,500.00 $4,500.00 $5,500.00

Ad Dollars Spent per Month in 2004

6

Media MixBrand

The Harley-Davidson brand has been turned into a lifestyle

Strong brand recognitionConsumers and non consumers immediately

associate the logo with the brand’s imageMedia vehicles matching the lifestyle

Simple images/messages are key as the brand/product does not need much explanation

Ideal mediums include mostly visuals – outdoor, print, direct mail

CONS MAGS; $11,758.70

LCL NWSP; $81.90 OUTDR; $531.30 NET TV; $5,807.00

SPOT TV; $348.70

CABLE TV; $7,997.10

NTL SPT RAD; $30.10

Current Ad dollars Spend Across Mediums

7

Target Audience ObjectivePrimary Target Audience

Women 18 – 54 First time rider/buyers Employed House-Hold Income over $50,000

Secondary Target Audience Women 18 – 54 Owners of Harley-Davidson bikes Employed House-Hold Income over $50,000

Psychographics Strong Independent Women Wives of Harley-Davidson bike owners

Target Audience Sales ObjectiveIncrease sales of all models 883cc – 1200cc

among women by 3000 units in the next year.

8

Timing/Scheduling ObjectiveSpring/Summer Months

Primary Scheduling April – September will be hit hard with

advertisements due to motorcycles being mostly weather-dependent

Approximately $2.8 million will be used per month for this time period

The advertising budget for these months will be spent fairly consistently.

The campaign will launch at the beginning of spring (April) to get riders excited for the summer months ahead.

Fall/Winter Months Secondary Scheduling October – March will not be as strong due to the

weather and lack of interest in the winter months Advertising in January will be significantly

reduced due to January being a ‘dead’ month. Approximately $1 million will be user per month

for this time period The advertising budget for these months will be

spent fairly consistently

Outlier Months December will have increased advertising

despite the winter due to the Christmas season. The ad budget for this month will increase to

$1.3million

9

Reach and Frequency ObjectiveSpring/Summer Reach and

Frequency Objectives Spot reach – 80Spot frequency – 5National reach – 70National Frequency - 5

Fall/Winter Reach and Frequency ObjectivesSpot reach – 70Spot frequency – 5

December Reach and Frequency ObjectivesSpot reach – 80Spot frequency – 5National reach – 70National Frequency - 3

10

Media Budget ObjectiveSpot and National Campaign

The budget will primarily be directed towards the spot campaign.

The spot campaign was chosen because of the high CDI numbers in select markets.

National ads will run far less than spot ads. Spot ad budget - $16million National ad budget - $7 million

Media Mediums used include national and spot

radio, magazines, internet, outdoor, and direct mail due to their high CDIs and strong following of consumers in the target audience

Net Radio; $7,084,000

Magazine; $7,000,400

Internet; $1,925,000

Spot Radio; $1,298,500

Outdoor; $5,233,300

Direct Mail; $1,420,800

11

Geography ObjectiveBinghamton, NYSacramento - Stockton, CANorfolk et al, VAWilkes - Barre et al, PASan Diego, CATampa et al, FLCharlotte, NCPortland, ORGreensboro et al, NCGreenville et al, SC-NCHarrisburg et al, PANashville, TNOrlando et al, FLPhoenix, AZPittsburgh, PA

12

FlowchartMedium Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Net Radio-Morning Drive 200 200 200 200 200 200 70 GRPs: 1,270$[000] 586 586 586 586 586 586 205 Cost: 3,724

Net Radio-Evening Drive 200 200 200 200 200 200 70 GRPs: 1,270$[000] 529 529 529 529 529 529 185 Cost: 3,360

Magazines-General Interest 20 20 20 20 20 20 GRPs: 120$[000] 297 297 297 297 297 297 Cost: 1,779

Magazines-Womens 30 30 30 80 80 80 80 80 80 30 30 50 GRPs: 680$[000] 230 230 230 614 614 614 614 614 614 230 230 384 Cost: 5,221

Internet-Trgtd Sites Imps/Mo Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes GRPs: 10$[000] 175 175 175 175 175 175 175 175 175 175 Cost: 1,750

Spot Radio-Morning Drive 30 30 30 80 80 80 80 80 80 30 30 5 GRPs: 635$[000] 33 33 33 88 88 88 88 88 88 33 33 6 Cost: 699

Spot Radio-Evening Drive 30 30 30 80 80 80 80 80 80 30 30 5 GRPs: 635$[000] 28 28 28 76 76 76 76 76 76 28 28 5 Cost: 599

Outdoor 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 1,234 GRPs:13,57

4$[000] 436 436 436 436 436 436 436 436 436 436 436 Cost: 4,797

Direct Mail 1 1 1 1 1 1 1 1 1 1 1 GRPs: 11$[000] 118 118 118 118 118 118 118 118 118 118 118 Cost: 1,302

13

Flowchart (cont)Medium Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

National Only Area

GRPs 30 30 30 500 500 500 500 500 500 30 30 190 GRPs: 3,340

$[000] 230 405 405 2201 2201 2201 2201 2201 2201 405 405 774 Cost: 15,835

Reach 25 25 25 83 83 83 83 83 83 25 25 66

Avg. Freq. 1 1 1 6 6 6 6 6 6 1 1 3

Spot Only Area

GRPs 60 1295 1295 1395 1395 1395 1395 1395 1395 1295 1295 1245 GRPs: 14,858

$[000] 61 616 616 718 718 718 718 718 718 616 616 565 Cost: 7,398

Reach 30 89 89 91 91 91 91 91 91 89 89 87

Avg. Freq. 2 15 15 15 15 15 15 15 15 15 15 14

National+Spot

GRPs 90 1325 1325 1895 1895 1895 1895 1895 1895 1325 1325 1435 GRPs: 18,198

$[000] 292 1021 1021 2920 2920 2920 2920 2920 2920 1021 1021 1339 Cost: 23,233

Reach 47 91 91 95 95 95 95 95 95 91 91 93

Avg. Freq. 2 15 15 20 20 20 20 20 20 15 15 16

14

Goal SummaryNational Plan Reach Freq. GRPs Share Est. $(000)

January 0 0 0 0 0

February 0 0 0 0 0

March 0 0 0 0 0

April 70 5 350 7.7 1,653.80

May 70 5 350 7.7 1,653.80

June 70 5 350 7.7 1,653.80

July 70 5 350 7.7 1,653.80

August 70 5 350 7.7 1,653.80

September 70 5 350 7.7 1,653.80

October 0 0 0 0 0

November 0 0 0 0 0

December 70 3 210 4.6 992.3

National Media 2,310.00 50.8 10,915.40

National Contingency 1,000.00

Total National 11,915.40

15

Goal Summary (cont)Spot Plan Reach Freq. GRPs Share Est. $(000)

January 70 5 350 7.7 1,653.80

February 70 5 350 7.7 1,653.80

March 70 5 350 7.7 1,653.80

April 80 5 50 1.1 236.3

May 80 5 50 1.1 236.3

June 80 5 50 1.1 236.3

July 80 5 50 1.1 236.3

August 80 5 50 1.1 236.3

September 80 5 50 1.1 236.3

October 70 5 350 7.7 1,653.80

November 70 5 350 7.7 1,653.80

December 80 5 190 4.2 897.8

Spot Media 2,240.00 49.2 10,584.60

Spot Contingency 500

Total Spot 11,084.60

Total Plan 23,000.00

16

Market ListMarket Name Rank CDI %US

Birmingham, AL 50 130 0.55

Charlotte, NC 31 122 0.81

Greensboro et al, NC 48 120 0.57

Greenville et al, SC-NC 35 125 0.72

Harrisburg et al, PA 47 126 0.59

Nashville, TN 33 122 0.79

Norfolk et al, VA 38 125 0.66

Orlando et al, FL 23 149 1.01

Phoenix, AZ 20 153 1.11

Pittsburgh, PA 17 148 1.24

Portland, OR 27 149 0.92

Sacramento-Stockton, CA 19 130 1.14

San Diego, CA 25 159 0.99

Tampa et al, FL 16 141 1.35

Wilkes-Barre et al, PA 49 140 0.56

15 Markets chosen, covering 13.01% of US households.

17

Yearly SummaryReach Avg Freq GRPs $[000]

Goal Est. Goal Est. Goal Est. Diff. Goal Est. Diff.

January 70 47.1 5 1.9 350 90 -260 1,653.80 291.7 1,362.20

February 70 90.7 5 14.6 350 1,325.20 975.2 1,653.80 1,021.20 632.6

March 70 90.7 5 14.6 350 1,325.20 975.2 1,653.80 1,021.20 632.6

April 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40

May 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40

June 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40

July 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40

August 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40

September 80 94.6 5 20 400 1,895.20 1,495.20 1,890.10 2,919.50 -1,029.40

October 70 90.7 5 14.6 350 1,325.20 975.2 1,653.80 1,021.20 632.6

November 70 90.7 5 14.6 350 1,325.20 975.2 1,653.80 1,021.20 632.6

December 80 92.7 5 15.5 400 1,435.20 1,035.20 1,890.10 1,339.10 551

TOTAL 4,550.00 18,197.60 -13647.6 21,500.00 23,232.60 -1,732.60

18

Monthly Detail(May)Medium Covg. Unit GRPs CPP CPM Total Cost

Net Radio-Morning Drive NATL :30 200 2,932 $4.43 586,400

Net Radio-Evening Drive NATL :30 200 2,646 $4.00 529,200

Magazines-General Interest NATL FPG 4C 20 14,828 $22.41 296,560

Magazines-Womens NATL FPG 4C 80 7,678 $11.61 614,240

Internet-Trgtd Sites Imps/Mo NATL 10MM/Mo Yes 175,000 $264.53 175,000

National Totals 501 4,394 $6.64 2,201,400

Spot Radio-Morning Drive SPOT :30 80 1,101 $13.31 88,080

Spot Radio-Evening Drive SPOT :30 80 944 $11.41 75,520

Outdoor SPOT 50 Show Yes 353 $4.27 436,112

Direct Mail SPOT 0.50/IMP 1 118,396 $1431.55 118,396

Spot Totals 1395 515 $6.22 718,108

Total Plan (Natl+Spot in combined area) 1896 1,540 $6.33 2,919,508

19

Frequency Distribution forMay through August

May – August Frequency Distribution(same for all four months)

National Spot Combined

F F+ F F+ F F+

0 16.9 100 9.5 100 5.4 100

1 15.9 83.1 4.9 90.5 1.4 94.6

2 13.6 67.2 4.5 85.6 2.1 93.2

3 10.4 53.6 4.1 81.1 2.5 91.1

4 7.8 43.2 3.8 77 2.7 88.7

5 6 35.4 3.5 73.2 2.9 85.9

6 4.7 29.4 3.3 69.7 2.9 83.1

7 3.7 24.8 3.1 66.4 2.9 80.2

8 3.1 21 3 63.3 2.9 77.3

9 2.6 17.9 2.8 60.3 2.8 74.4

10 2.2 15.4 2.7 57.5 2.8 71.5

GRP: 500 1,395 1,895

Reach: 83.1 90.5 94.6

Avg Frequency: 6 15.4 20

20