In the early 1980's, Atlanta based Coca Cola initiated a top secret research project called "Project Kansas." Maybe "Project Georgia" didn't sound mysterious enough. The marketing scheme took its name from a photo of Kansas journalist William Allen White drinking a Coke seated at a soda fountain. By 1983, Coca Cola's soft drink market share had declined to 24% from a post-World War II share of 60%, largely because of competition from sweeter tasting Pepsi Cola.
Desperate measures were called for.
Coca Cola chief executive officer Roberto Goizuetta was receptive to the idea that changing the taste of Coke would lead to increased sales and recapture the company's lost market share. In early testing of "New Coke," the sweeter cola consistently beat both regular Coke and Pepsi in taste tests, surveys and focus groups.
Today, most observers believe "New Coke" was the number one most disastrous marketing blunder of all-time.
Desperate measures were called for.
Coca Cola chief executive officer Roberto Goizuetta was receptive to the idea that changing the taste of Coke would lead to increased sales and recapture the company's lost market share. In early testing of "New Coke," the sweeter cola consistently beat both regular Coke and Pepsi in taste tests, surveys and focus groups.
Today, most observers believe "New Coke" was the number one most disastrous marketing blunder of all-time.
On June 19, 2014, Harley Davidson announced to the public "Project LiveWire" - the first electric Harley Davidson motorcycle. "While not for sale," the announcement proclaimed, "Project LiveWire is specifically designed for the purpose of getting insight into rider expectations of an electric Harley-Davidson motorcycle."
Harley-Davidson riders unveil Project LiveWire on New York’s Manhattan Bridge on June 23, 2014.
Research and development on the Project LiveWire bike started soon after Thomas Edison invented the electric light bulb. Five years and three months after introduction of the first prototypes, the LiveWire is nowhere to be found in dealers' showrooms. The general manager of a Harley Davidson dealership recently told me they are expecting their first electric bike "hopefully some time this month." The owner of another Harley Davidson dealership told me they aren't expecting their first LiveWire until February 2020.
Speaking of marketing blunders, hyping a new product for years followed by the inability to deliver the product to the consumer is right at the top of the list.
"Harley-Davidson’s new motorcycle models include its first electric ride, the LiveWire. But the bike maker’s new lineup isn’t driving sales for its dealers," says a recent report by Wedbush Securities analyst James Hardiman.
Maybe that's because their dealers do not have any LiveWires to sell.
Harley-Davidson riders unveil Project LiveWire on New York’s Manhattan Bridge on June 23, 2014.
Research and development on the Project LiveWire bike started soon after Thomas Edison invented the electric light bulb. Five years and three months after introduction of the first prototypes, the LiveWire is nowhere to be found in dealers' showrooms. The general manager of a Harley Davidson dealership recently told me they are expecting their first electric bike "hopefully some time this month." The owner of another Harley Davidson dealership told me they aren't expecting their first LiveWire until February 2020.
Speaking of marketing blunders, hyping a new product for years followed by the inability to deliver the product to the consumer is right at the top of the list.
"Harley-Davidson’s new motorcycle models include its first electric ride, the LiveWire. But the bike maker’s new lineup isn’t driving sales for its dealers," says a recent report by Wedbush Securities analyst James Hardiman.
Maybe that's because their dealers do not have any LiveWires to sell.
Harley Davidson thinks it is in the transportation business. They couldn't be more wrong. Harley Davidson is in the iconic brand business.
While selling emblazoned "Bar & Shield" logo t-shirts, leather jackets, gloves, hoodies (all known as "Motorclothes"), shot glasses, dart boards, watches, lighters and about a bazillion other items only accounts for 5% of total Harley Davidson annual revenue, the swag generates profit margins of more than 40% compared to 38% on parts and accessories, and 15% to 20% on the motorcycles themselves.
Plus, customers wearing their Harley Davidson t-shirts out in public is a lot of free advertising. These people are walking billboards. And Harley owners love wearing this stuff (I certainly do). They love wearing it because it flashes "the Brand" and communicates a certain lifestyle that goes hand in hand with owning and riding a Harley Davidson bike.
When's the last time you saw someone wearing a Tesla t-shirt at Trader Joe's? I can't remember either. It is NOT about getting from point A to point B.
While selling emblazoned "Bar & Shield" logo t-shirts, leather jackets, gloves, hoodies (all known as "Motorclothes"), shot glasses, dart boards, watches, lighters and about a bazillion other items only accounts for 5% of total Harley Davidson annual revenue, the swag generates profit margins of more than 40% compared to 38% on parts and accessories, and 15% to 20% on the motorcycles themselves.
Plus, customers wearing their Harley Davidson t-shirts out in public is a lot of free advertising. These people are walking billboards. And Harley owners love wearing this stuff (I certainly do). They love wearing it because it flashes "the Brand" and communicates a certain lifestyle that goes hand in hand with owning and riding a Harley Davidson bike.
When's the last time you saw someone wearing a Tesla t-shirt at Trader Joe's? I can't remember either. It is NOT about getting from point A to point B.
Back in June 2014, Matt Levatich, President and Chief Operating Officer, Harley-Davidson Motor Company said "America at its best has always been about reinvention. And, like America, Harley-Davidson has reinvented itself many times in our history, with customers leading us every step of the way. Project LiveWire is another exciting, customer-led moment in our history."
Matt - iconic brands do not need to be "reinvented." I'm sure you learned that back in Marketing 101. Or just ask the folks at Coca Cola.
With less than a month left in the third quarter, Harley dealers say their retail sales are down between 5% - 10% from a year ago—and last year’s third-quarter sales were terribly weak.
And we're still waiting on the LiveWire.
Today, Coca Cola's 17% soft drink market share is higher than Pepsi and Mountain Dew combined and Coke is reportedly recognized by 94% of the world's population. Let's end on a positive note - maybe people will actually buy a Harley Davidson motorcycle that costs about the same as a fully loaded Prius. And makes the same amount of noise - none.
Let's ask the folks in Atlanta what they think.
No biker deserves to be bored . . .
Matt - iconic brands do not need to be "reinvented." I'm sure you learned that back in Marketing 101. Or just ask the folks at Coca Cola.
With less than a month left in the third quarter, Harley dealers say their retail sales are down between 5% - 10% from a year ago—and last year’s third-quarter sales were terribly weak.
And we're still waiting on the LiveWire.
Today, Coca Cola's 17% soft drink market share is higher than Pepsi and Mountain Dew combined and Coke is reportedly recognized by 94% of the world's population. Let's end on a positive note - maybe people will actually buy a Harley Davidson motorcycle that costs about the same as a fully loaded Prius. And makes the same amount of noise - none.
Let's ask the folks in Atlanta what they think.
No biker deserves to be bored . . .
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