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Posts Tagged ‘Harlistas’

Today was not a good day for leadership.

First it was Calderon.   You know — the Mexican President, Felipe Calderon?  His administration has attempted to rid Mexico of the narco-traffickers using thousands of Mexican troops and hundreds of millions of dollars in U.S. aid, but cartel members have killed thousands in an effort to maintain control of the lucrative drug trafficking routes.  More than 18,000 people have been killed since Calderon launch his military offensive in 2006.

Then in an unprecedented mucho ballsy move he comes to the U.S. today and complained about Arizona’s immigration law (SB1170), when all the state wants to do is protect itself against a flood of illegal immigrants from Calderon’s country!  And, how about that Congress’s standing ovation for the Mexican leader?!  Adding insult to injury in this twilight zone was President Obama complaining whining about Arizona trying to do something about a problem he- President Obama and the federal government- have created and choose to ignore.  George W. didn’t help.  Combined with the fact they can’t be bothered to read the law that they’re criticizing. If they did, they’d find out that parts of Arizona’s law are word-for-word the same- exactly- as the federal statutes on immigration.  I’ll save my viewpoints on how Mr. Calderon should spend his time trying to create opportunities for his own citizens, so they’re not driven by poverty and desperation to sneak into this country illegally for another day.  The fact is that this “pony show” is all about pandering to Hispanics for votes.

And speaking of pandering…

Polaris Industries Inc., (parent company of Victory motorcycle) announced today that it will establish a new factory in Mexico’s Monterrey/Saltillo area. Talk about great timing on doing your part for the American economy — exporting American jobs along with the factories.  This major realignment will begin immediately and will lead to an eventual sale or closure of the Polaris’ Osceola, Wis., manufacturing operations.  Polaris stated the realignment allows it to invest in and outsource certain “nonstrategic” component manufacturing processes while improving on-time delivery to customers, and providing savings in logistical and production costs.  Make no mistake, it is all about the money.

Scott Wine, CEO of Polaris, stated in a press release:

“Pursuing opportunities in new markets outside the United States, while concurrently evaluating our cost structure to improve our long-term competitive positioning, are key components to our growth strategy. This decision was based on a thorough review of our worldwide operations and will allow us to improve our ability to meet the quality, delivery and cost standards desired by our dealers and customers.”

Harley-Davidson has made it public they are also considering a move out of Wisconsin.  Inconceivable? Think again.  Polaris plans to have their factory in Mexico operational beginning in the first half of 2011.  Can H-D be too far behind?

My philosophy is that if my neighbor doesn’t have a job, sooner or later I won’t have a job either.

Photo courtesy of Harlistas.

All Rights Reserved © Northwest Harley Blog

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ClownI’ve written previously that Harley-Davidson has been losing traction in worldwide motorcycle sales and is pushing a marketing strategy that focuses on attracting more Latino-centric customers and other racial minorities to the biker lifestyle.

With costly and parallel marketing efforts the company is pushing multi-generational and multi-cultural marketing campaigns.  Like a circus clown juggling all balls, H-D is trying to attract minorities, boost sales with younger riders, promote the female factor which is geared to attracting women riders and at the same time maintain just enough focus on baby boomers, who as a group, have been the historical sales engine for the company.  Complex to say the least and it makes me wonder if a ball will get dropped.

By catering to the booming Latino population does Harley stand to alienate its core customer base?  Will the American public soon be seeing Harley-Davidson Supermercado dealers which focus only on Latino’s?  I don’t know.  It’s been reported that there are currently 49M Hispanics in the U.S. with nearly $1.1Trillion in purchasing power.  Today they make up 16% of the U.S. population.  It’s estimated that by 2050 Hispanics will make up 30%, eight years after Caucasians’ fall below 50% of the U.S. population.  America is witnessing a demographic revolution that is largely driven by Hispanics.  Purchasing power is the after-tax personal income people have to spend on virtually everything from necessities like food, clothing and housing to luxuries like recreational equipment and vacations.

So it’s logical to think that some Harley dealers will need to make local adjustments or conversions to a Hispanic orientation.  Similar to how a neighborhood-market-oriented ethnic food store needs to continue to reinvent around customer-centric shoppers.   It’s a wakeup call for H-D.  However, there are other factors which seem to make motorcycle sales culturally indifferent.  For example nearly one in ten of the nation’s 22M Latino workers (9.7%) are unemployed.  According to Pew Hispanic Center survey one in ten Latino homeowners reported missing a mortgage payment.  This mirrors all other multi-culture sectors of the population in the U.S. so, I wonder if Harley’s expectations of the Latino community isn’t aggressive or wishful thinking?  Another data point is the Hispanic “Mass Affluent” households.  Defined by Mintel as those with between $100K and $1M in investable assets and which currently comprise 10% of the U.S. population.  The Hispanic Mass Affluents reported they cut down or deferred overall spending because of the recession.  Sound familiar?

It’s my view that until H-D makes a decision to hire an executive VP similar to Wal-Mart’s Jose Antonio Fernandez and learns how to serve Latinos from experiences obtained in Latin America/Mexico….they aren’t super serious about merchandising the way Hispanics shop.  Until then we’ll continue to see Hispanic marketing around the edges such as this casting call announcement where H-D is encouraging all Latino Riders….aka Harlistas to share their story in a documentary which is being directed by Alfredo de Villa.  H-D’s manager of market outreach, Karina Jaramillo-Saa, states that the film will encapsulate the spirit of Harlistas and H-D wants to share the passion of Latino riders with the rest of the world.

The documentary feels like the continued isolation of an ethnic enclave.  Is Harley-Davidson guilty of an innocent lapse in judgment here or is there truly racial overtones?  The public was polled and the documentary research indicates Latino riders are best to share motorcycle passion via a film?  What about a female-only casting call or a Caucasian-only casting call and documentary?  Wake up H-D!  It’s about assimilation of ALL riders and sharing the passion with the world?

Photo courtesy of Flickr.

All Rights Reserved © Northwest Harley Blog

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