Harley-Davidson: We Don't Do Fear
Motorcycle Giant Says Forget Poor Economy & Falling Sales. Just Ride
H-D announces it is laying off 730 workers after its U.S. sales fall 12.8 percent, then responds with bold "in your face" advertising campaign. Is it insensitive?
In the spring of 2008, Harley-Davidson (H-D) expanded its advertising and distributed thousands of bandannas urging cyclists to forget the poor economy, rising gas prices, its reduced bike sales and its 730-worker layoffs. "Screw it. Let’s Ride," the motorcycle giant said in a new marketing campaign.
"We don’t do fear...fear sucks," Harley adds in a multimedia promotion that will probably strengthen its macho branding. The Milwaukee company has also added an interactive page to its website inviting viewers to expand on the theme and to show their location on a United States map.
It’s unknown if the workers being laid off consider the campaign insensitive or how many will be able to join the "ride." However, the new promotion won early praise from some Milwaukee observers.
Observers Say "Let’s Ride" Ad Is Clever, Bold and ‘In Your Face’
"It's a very clever ad campaign," Dennis Garrett, an associate professor of marketing at Marquette University, told the Milwaukee Journal Sentinel (MJS). "It's trying to take advantage of the tension that a lot of folks are feeling now."
"I like it. It's bold, full of attitude and in your face," wrote Jeff Sherman of OnMilwaukee.com.
Rick Barrett of the Journal Sentinel said the "screw it" phrase "might be offensive to some people. But it fits Harley's rebel image." An MJS headline said the campaign "spits in face of fears."
Steve Johnson of Biker News agreed with the Harley theme. "There ain't much for us motorcylists to do other than ride our bikes, and continue working," he wrote.
Harley-Davidson expanded its usually tightly targeted advertising to run the new ad in USA Today and Sports Illustrated.
According to Macon Daily.com, Mark-Hans Richer of H-D said the company wanted to use national publications "where some of these attitudes might be shared."
Harley-Davidson Reports Its U.S. Sales Dropped 12.8% in First Quarter
In its 2008 first quarter report, the company said that in the first three months of the year, its motorcycle sales dropped 12.8 percent in the United States, and 5.6 percent worldwide. Some of the United States losses were offset by a 16.8 percent increase in sales outside the U.S., including increases of 53 percent in Latin America, 31 percent in Canada, 19.5 percent in the Asia Pacific region and 7.8 percent in Europe
Despite the lower sales, the company said motorcycle revenue in the first quarter rose 14 percent to $1.02 billion. It also announced it was cutting 730 jobs; that it expects per share earnings to decrease 15-to-20 percent in 2008; and that it plans to ship up to 27,000 fewer motorcycles in 2008 than in 2007.
The first quarter report said the company "is fortunate to be dealing with the current economic environment from a position of financial strength. We are a great company with an exceptionally powerful brand."
"We Don't Do Fear" Campaign Challenges Prophets of Economic Doom
The new ad campaign challenges the prophets of economic doom, particularly "media pundits." It says:
"Over the last 105 years in the saddle, we've seen wars, conflicts, depression, recession, resistance and revolutions. We've watched a thousand hand-wringing pundits disappear in our rear-view mirror. But every time, this country has come out stronger than before. Because chrome and asphalt put distance between you and whatever the world can throw at you.
"If 105 years have proved one thing, it's that fear sucks and it doesn't last. So screw it, let's ride."
References: Biker News, May 2, 2008;
Harley-Davidson .com; Rick Barrett, Milwaukee Journal Sentinel, May 3, 2008; OnMilwaukee.com; Macon Daily.com
