Feeds:
Posts
Comments

Posts Tagged ‘UFC’

Remember that outsider who kept Harley-Davidson on the road?

Keith E. Wandell (retired H-D CEO) grabbed the handlebars at the company in the heart of the economic crisis in 2009. Harley lost $55 million that year, as buying a motorcycle stopped being an option for many consumers.

Wandell made some big statements. “Don’t let Harley-Davidson become General Motors!” Look in a mirror, he told staff – Harley was already so far down that same path [as GM] “it wasn’t even funny.”

Wandell took bold action and made quick decisions to focused the company on doing what many say it does best: Making big, powerful, premium-priced cruisers.

Keith Wandell

Keep in mind, this was when the great recession and credit crisis sent shockwaves through Harley-Davidson. In less than one year, bike shipments dropped about 25 percent.

Wendell cut the workforce – at least 2,700 hourly workers and 840 administrative employees. The economy was in the tank, the motor company had a big union labor force and old manufacturing processes.  People were just churning and everything was upside down at the company.

Imagine…

I’m not talking about celebrities’ filming themselves singing John Lennon’s ‘Imagine’, from their multi-acre estates and whining about their COVID-19 pandemic isolation.  Never has disproportionate privilege been so apparent and I for one am really fed up with their self-serving need to be in the public spotlight with style-over-substance videos.

But, I digress…

Mark-Hans Richer

It is equally important to recall Wandell’s right-hand “stunt man” — you may remember him as that over-the-top marketing genius who had women screaming, grown men crying and Oprah jumping up and down, chanting: “Everybody gets a car!

I’m talking about Mark-Hans Richer, who was Sr. VP, Chief Marketing Officer at Harley-Davidson, prior to his 2015 departure. Granted, Richer is currently employed at Fortune Brands, but with the mass exodus at Harley-Davidson and salary decreases across the executive staff it’s plausible to pull him back into the H-D team.

Richer, generated the most bankable kind of publicity: controversy.  He made the difference between a motorcycle brand being a rock star versus more employees working in the rental lot.

He’s the charismatic dude that dropped a Dyna Super Glide on Pope Francis at the Vatican.  Then turned around at a press briefing and said, I would be really upset if you felt our strategy was about “meeting the nicest people on a Harley” because I can tell you that ain’t the strategy.  Later he pontificated that a Harley costs less than “another tattoo, a parking ticket, a gas station burrito, and a lip ring” in an appeal to what makes millennials tick.  In 2002, he helped the company get named Company of the Year by Forbes magazine.

110th Anniversary Celebration

In a university commencement speech, he stated: “Everything I ever learned from business, I learned from Willie the Wildcat stuffed animal,” a business he started right out of college.  Richer secured the first major worldwide sports sponsorship for Harley-Davidson at UFC and was instrumental in X-Games marketing.

No, I don’t have a man crush.

Richer was a key contributor of the “Ride Home” anniversary events.  Do you remember when returning to the mecca of motorcycling in Milwaukee was truly an EVENT i.e. the 110th Anniversary festivities featured 60 bands, including Aerosmith, Kid Rock and ZZ Top.  Remember that 3 ½-hour set by Bruce Springsteen and E Street Band at the 105th Anniversary?   How about when Foo Fighters, Dave Grohl, committed a major sin on stage by cracking open a Coors in Miller Town?

100th Anniversary Celebration

There was the surprise headliner (Elton John) and outright disaster for the centennial anniversary. Musical highlights included Billy Idol, Kid Rock, Joan Jett, Poison, REO Speedwagon, the Doobie Brothers and Tim McGraw for the 100th anniversary so, people booing and walking out might have been overstated in the media.

Then came 2018 and time to celebrate 115 years of the open road.  Harley-Davidson CMO, Heather Malenshek tells the media the event is all about returning to its roots with a focus on the motorcycle, not the entertainment.  Huh?!  It was an unmitigated flop for entertainment.  She very quietly departs the company in October 2019.  Coincidence?

Indian is challenging Harley’s cash cow, the Road Glide.  BMW has market segment share in the ADV or “adventure motorcycle” sector and recently introduced the new R 18 touring, cruiser configuration to compete head-on with Harley-Davidson and Indian.  Rumors started circulating recently that Honda is introducing a new 1100 Rebel to compete directly with Harley-Davidson.

Pan American

Harley needs more than anything a fast start for a new model to become a breakout hit.  Is that the Pan American, ADV?

The ADV segment is crowded and entrenched with BMW, Honda, KTM, and newcomer Ducati, among others with decades, of dirt-tested refinement.  Harley doesn’t have the luxury of burning up stacks of cash on a another “vanity project.”

The Milwaukee motor company has a very narrow window to establish that hit. Gone are the days when a slow seller can be nurtured into a hit.  Here’s looking at you LiveWire and the “Field of Dreams” marketing of distressed or stigmatized merchandise!  I truly wonder if acting president and CEO Jochen Zeitz or Harley-Davidson management really understand why the LiveWire product is failing?

It’s logically time to recall Mr. Wandell and “CMO head-honcho,” Richer back from spending their days taking lunch at the Polo Lounge and crank up the H-D buzz machine.

What the media’s hourly drumbeat of “panic porn” on the COVID-19 trauma has shown us, cannot be unseen.  A motorcycle-less Los Angeles.  Coyotes wandering on the empty Golden Gate Bridge.  A quiet New York, where you can hear the birds chirp in the middle of Madison Avenue.

We’re in it. Stores are closed. Restaurants are empty. Streets and multi-lane freeways are barren.  Body bags in tractor trailers.  The Oregon beach is an eerie ghost town.  The economy has collapsed and a devastated 22+ million Americans have lost their jobs in four weeks.  It’s a dark feeling of rust, rot and ruin.

Illegitimi non carborundum.” The Latin phrase loosely translates to, “Don’t let the [COVID] bastard get you down.”

Motorcycle enthusiasts are the ones who understand why dogs stick their heads out the window.  In the famous words of a previous H-D CEO, Jeffrey Bleustein, “We (Harley) have to pretend ten fiery demons are chasing us at all times,” and “make the right bikes, at the right time, and get them to the right place!

Let’s all take a deep breath and get ready for a potential Harley-Davidson tsunami. What is about to be unleashed will be the greatest campaign ever created to get you to feel normal again.  Every brand will come to our rescue, dear consumer, to help take away that darkness and get life back to the way it was before the crisis.

The great American return to normal is coming and you won’t be able to ignore that deafening motorcycle exhaust noise.

Photos taken by author and courtesy of Harley-Davidson and Wikipedia.

All Rights Reserved (C) Northwest Harley Blog

Read Full Post »

UFC-HD2Could be you in the Milwaukee Octagon® on August 31st!

To be the “rage in the cage” and break into the UFC, you’ll need to network with industry insiders, gain a solid knowledge of backstage politics, hope for a little luck, have thick skin and prove that your fighting skills are the best in the world.

Or you could just enter the Harley-Davidson contest for an epic UFC throwdown to celebrate the 110th anniversary.  It looks like they’ve borrowed a lot of ideas from All Japan Pro Wrestling and flushed out a script with WWE “jobbers” to create an “anything can happen” entertainment show called the Harley-Davidson Hometown Throwdown event.  Clearly no sponsor of combat sports has done more by supporting a punch, a grab or a shin kick to the skull than Harley-Davidson.  You’ll want to thank Dino Bernacchi, Harley-Davidson Marketing Director.

Maybe you’re an active proponent in the effort to keep Wrestling in the Olympics?  Or maybe you just like refreshments and the ringgirls?!  Whatever the case may be, you can enter the contest for a chance to win a Street Bob motorcycle and in addition the winner gets a VIP pass to the Harley-Davidson Hometown Throwdown event at UFC 164 at the Bradley Center on August 31st.  If you win you’ll also receive the highly valued fight training time with Cain Velasquez.

When you enter the site don’t forget to create your own gnarly custom designed 110th anniversary logo.  Because it will be painted in the Octagon for all the blood “sport” fans to see if you are worthy.

Photo courtesy of H-D and UFC

All Rights Reserved © Northwest Harley Blog

Read Full Post »

mfg_plantBaby boomers and Harley-Davidson motorcycles.  The combination of these two delivered a plethora of profits.

I was upgrading my Mac OS and while I waited, I read magazines.  First it was “Baggers” then “BusinessWeek.”

Skimming the BW magazine I notice an article about business book guru Jim Collins.  He wrote “Good To Great.”  Collins was brought to West Point, where he chaired a discussion amongst military men and civilians.  Had America lost its greatness, was it in decline?  The attendees were split as to America’s future, half optimistic and half pessimistic.  But what fascinated Mr. Collins was an observation from a CEO during a break.  The dude stated: “I’ve been thinking about your question in the context of my company.  We’ve had tremendous success in recent years and I worry about that.  So what I want to know is: HOW WOULD YOU KNOW?”  This question formed the basis of Collins new book, “How The Mighty Fall.”

Harley-Davidson has been quite mighty.  But they broke the first rule of Mr. Collins’ book.  Which he labels Stage 1: “Hubris Born Of Success”.  “Stage 1 kicks in when people become arrogant, regarding success virtually as an entitlement, and they lose sight of the true underlying factors that created success in the first place.”

Mighty_FallBingo!  Harley-Davidson and Baby Boomers.  H-D execs actually believed they were geniuses, who’d found the golden formula.  Dealers marked up everything from t-shirts to baggers.  From then on, motorcycle model after model would all sell thousands of bikes, there would be untold profits!  Rather than questioning their success (“We might have been just really lucky/we’re in the right place at the right time…”), they believed they were entitled to it.  And ultimately blamed this decline of their fortunes on the economy.

Stage 2 of Mr. Collins’ theory of corporate decline is “Undisciplined Pursuit Of More”.  Here we have H-D catering to image buyers… selling sizzle, style and fashion over function paradigm.  With spokespeople like Marisa Miller.  If TV sells motorcycles, let us find the least amount of clothing and the most telegenic performer and craft a message about lifestyle for TV/print consumption!  

Stage 3 is “Denial Of Risk and Peril.”  That’s the beginning of the end.  “Those in power start to blame external factors for setbacks rather than accept responsibility”.  It’s like the music industry saying the Internet ruined it’s business!  It’s the economy’s fault, we couldn’t get bank funding at HDFS, etc. But what’s Harley’s business?  Manufacturing premium (overpriced?) priced one-dimensional products and marketing them for sale on TV and print magazines to the ‘boomers’, the young, minorities and to women?  No difference in product just marketing messages.

Stage 4 is “Grasping For Salvation”.  “The critical question is: How does leadership respond?  By lurching for quick salvation or by getting back to the disciplines that brought about greatness in the first place?”  We’ve got Harley-Davidson heavily invested in MV Augusta and embedding advertising space in video games (UFC).  A non-motorcycle riding enthusiast at the helm.  Is that their core mission?  And we’ve got dealers exiting the business.  All the while the motor company works to protect a business model of an overexposed limited product to reap giant rewards.  Dealers are up in arms that corporate got rich and the locals did not…  But once again, what was each entity’s core mission?  Dealers were made to expose.  The motor company were made to..?  MAKE!  That’s what manufacturing companies do.  Making motorcycles is their core competency.  It’s their defining MISSION!  But that got lost in the shuffle of incredible profits during the nineties.  Harley started selling branding, lifestyle, sizzle, fashion and even some premium priced motorcycles!

Stage 5 is “Capitulation To Irrelevance Or Death”.  Some would argue that’s where the motor company is today.  “In some cases the company’s leader just sell out; in other cases the motorcycle institution atrophies into utter insignificance; and in the most extreme cases the enterprise simply dies outright.”  How long until Harley-Davidson chops up the parts and sells it for catalog value?  

What is the future?  Not the past.

“Never give in.  Be willing to kill failed business ideas, even shutter big operations you’ve been in for a long time, but never give up on the idea of building a great company.”  It’s clear.  Looking for an instant success like the old Michael Jackson days of MTV ultimately render instant irrelevance.  The company needs to be about MOTORCYCLES!  Today’s execs seem only interested in tonnage.  They could be selling anything!  They are not necessary.  Harley needs to find unique talent and nurture it.  Leverage independent blogs?  Motorcycle artistry/development isn’t finding more people to buy a plain stamped out bike, it’s a creative arc, over a period of iterations, wherein the motorcycle grows and more and more people come along for the ride.  

That’s what you need to survive…”to build an enterprise that makes such a distinctive impact on the world it touches (and does so with such superior performance) that it would leave a gaping hole – a hole that could not be easily filled by any other institution – if it ceased to exist.” Everyone knows that real motorcycle enthusiasts are the indies.  The commercial crap from the majors is about commercialism more than artistry.  Today it’s about manufacturing cookie-cutter stuff and yelling at the public to buy it, all the while bitching that the economy is failing.  This is a recipe for disaster.

Rather than whine, be the company that accepts reality, that notes change and adapts to it.  That doesn’t mean charge huge upfront fees for anybody who wants a CVO.  Or clothing attire marked up to the point that celebrities question the essence of imported fabrics.  Your average Joe consumers are your partners, they’re the ones who are going to make you money.  

If you lose your core, you’ve lost everything!

Photo courtesy of Newsweek.

All Rights Reserved © Northwest Harley Blog

Read Full Post »

%d bloggers like this: