November 2008

Hog-Wild Marketing
How Deeley Harley-Davidson leverages its
customer database for smarter marketing.

When Dom Bovalino joined Deeley Harley-Davidson a little over a year ago as marketing strategy director, he set out to learn more about the Canadian motorcycle market: the core fans who loved their Harley- Davidson “hogs” dearly, the riders who owned other bikes, and the emerging markets of women and younger riders under 35 years old. Fortunately, Bovalino didn’t have too far to travel. He turned to the company’s database with 250,000 names of customers and prospects and augmented it with geodemographic segmentation from Environics Analytics (EA). The result was a revealing portrait of who bikers are, what they think, where they live and, most important, where more could be found.

“What was innovative about this project was the
ability to take market-level segmentation data down to the ground level to help retailers reach their customers.” Rupen Seoni

As the exclusive distributor of Harley- Davidson in Canada, Deeley Harley- Davidson already had an impressive track record in the industry, having sold Harley- Davidsons for 35 years. About nine percent of Canadians carry a motorcycle license and with its line of more than 40 different models geared for both the enthusiast and weekend rider, Deeley Harley-Davidson possesses 40 percent of the heavyweight motorcycle market. But with a mandate to grow the business, especially among women and younger riders, Bovalino figured that better marketing intelligence would help the company’s 75 retailers market to their local communities.

Understanding bike fans
To understand the iconic bike’s fans—including current Harley owners, members of H.O.G. (Harley-Davidson’s loyal owners’ group), and interested prospects—Bovalino asked EA, the Toronto-based marketing analytics company, to segment Deeley’s database. Using PRIZM CE, analysts scored all 250,000 names at the postal code level with one of 66 distinct lifestyle types. Researchers then aggregated the PRIZM CE segments with the highest concentration of Harley- Davidson fans into eight target groups: four for English Canada, two for French Canada, and two more for women and young riders. Then, using PRIZM CE data linked to survey research from sources like PMB and BBM RTS Canada, the analysts detailed the portraits of each group with demographics, behavioural data, media preferences and social values.

“Our goal was to create a tool to help our retailers profitably grow sales in their markets,” remarks Bovalino. “We wanted to provide them intelligence into their markets, competitors and customers, and an enriched consumer segmentation framework was at the heart of our work. Geodemographic analysis allowed us to work quickly to meet that goal.”

Indeed, the profiles that emerged often were at odds with the stereotypical image of the tough-guy, leather-clad outsider. For instance, one target group called “Freewheeling Families” consisted of middle-class households whose adult members have high school educations, work at good blue-collar and service jobs, and live in small towns and exurbs. The men and women in this group enjoy outdoor recreational activities, auto races and motorcycle shows. And social values research shows that they’re skeptical towards big business, worried about their privacy, see men and women as equals and are sensualists when it comes to making purchases. Armed with this detail, Deeley’s marketing strategy team advised dealers on appropriate tactics for connecting with Freewheeling Families: Emphasize their local ties to the community. Respect their privacy when it comes to communications. Create a retail environment that welcomes women by hiring women riders in the sales team and merchandising the bike models that women like best together. And given their sensual nature, get them into the store to try out a bike. “Freewheeling Families offers retailers a real opportunity because of their high interest in the category, solid incomes and active lifestyles,” explains Bovalino. “If retailers can get these people into a store, the probability is high that the store will sell them a bike.”

Dealer courses
With the eight target groups defined, EA analyzed each dealer’s trade area, ranking them by potential for growth. And this fall, the Deeley Harley-Davidson team began rolling out the results during two-day courses where each dealership received a custom analysis of its trade area, along with guidance on how to sell more bikes to potential customers. For example, retailers in areas with a high level of female prospects were advised among other tactics to hold women-only “Garage Parties” to acquaint them with different bikes and Harley apparel.
“What was innovative about this project was the ability to take market- level segmentation data down to the ground level to help retailers reach their customers,” says Rupen Seoni, an EA vice president and practice leader. “The retailers now have a good picture of who their customers are, where they live and how to reach them. The study made the data speak.”

Direct mail application
Deeley plans to use the EA analysis to better target its active direct marketing program. This past spring, the company sent out 40,000 pieces of direct mail to Toronto area addresses, inviting current customers and prospects to their local dealerships with different offers. Current riders were encouraged to check out the new bikes and consider an upgrade—and receive a free tire valve cap with a visit. For prospects, dealers promoted the affordability of the newest bikes, and gave each tire-kicker a free Harley-logo key chain. The campaign proved a resounding success: Deeley’s response rate was an impressive 7.5 percent. With a clearer picture of its consumer segments thanks to the PRIZM CE data, the company hopes that future results may be even higher.

For now, Bovalino believes that the Retailer Consumer Segmentation Reports will strengthen the organization’s retailer network’s ability to target best prospects and drive greater sales with existing riders, while improving the return on their marketing investment “We’re excited about what we’ve been able to create with EA’s help,” he says.

"Our mission is to deliver intelligence to our retailer network to help them understand their customer base. And this project has really given them [retailers] greater insight into the riders and potential riders in their local communities.” There may still be a segment of tough-guy riders but Deeley Harley-Davidson dealers now know there’s a lot more to their customer base than meets the eye.