Billboards and Brand Dillution | The Marketing Spot

Billboards and Brand Dilution

While driving through Central Texas yesterday, I spotted this billboard perched above a Harley Davidson Dealership:

My initial reaction was: “What-tha? Harley Davidson is now about low prices and fuel economy?”

So I posted the billboard pic on Twitter and asked if the brand was starting to “wear thin?” Meaning is Harley Davidson, or at least this local dealer, diluting the brand to attract a larger customer base?

Corey O’Laughlin of OpenView Partners said:

While Don Young of PEMCO Insurance thought it was just fine:

Over on Facebook, reactions were similar. Gillian Morrison of Thought Out Media didn’t like it:

While Russell Cox of Kelly Realtors, thought it was good billboard strategy:

What’s Wrong With the Billboard?

I don’t like the billboard because it belongs to Harley Davidson, and Harley Davidson is not about MPG and low sticker prices. What’s the big deal you ask? Gas prices are on the rise and people like to spend less money. This would mean more business for Harley, wouldn’t it?

Diluting a brand is a strategy used to make a company more appealing to a broader base of customers. Companies do it so that they can sell more stuff. And initially, it usually works. But brand dilution ignores something very important: current customers.

Current Harley customers didn’t buy a Harley so they cold brag about their fuel economy, or how little they paid for their bike. Nope, they bought their Hog so that they could discard their tie, don a leather jacket, and escape their CPA office, law firm, or otherwise less glamorous profession. Harley Davidson owners are free to be someone else for the weekend. A freedom not available to everyone.

The Brand Dilution Effect

Eventually brand dilution waters down the brand and it doesn’t taste as good as it used to. Business starts to slip, trouble ensues. It happened to Starbucks a few years back, remember? Starbucks was a strong brand. People loved Starbucks…until they started opening up on every corner. There were even multiple Starbucks on the same block. Eventually Starbucks closed 977 stores and laid off 18,400 people to pay the price of brand dilution.

So if not price and gas economy, then what? Russell Cox asked me what I would put on the billboard instead. The primary purpose of all advertising is to advance the brand, not dilute it. Using my weak Photoshop skills, here is my revised Harley Davidson billboard.

What do you think? Is Harley Davidson practicing advertising genius or brand dilution?

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Erin Verbeck

I think what you're seeing here is a franchisee who is not well versed on the corporate brand standards and brand promise. I think what Harley Davidson needs is tighter control on the messages they allow their dealers to promote.

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Jay Ehret

Great question, Doug. Yes, I think it's OK to change your brand and message, even if it is forced upon you by marketplace conditions. But it's not just about changing your message, this is really rebranding your business, which is fundamentally changing it.

See my blog post about rebranding here:
What is rebranding?

Doug Saylor

Good post, Jay. It brings up the tension that exist with all of us. No one can afford to be a commodity but we compete with things we don't even realize we compete with--like buying a Harley or upgrading the kitchen.

I agree with you in this case because Harley has built their brand on the bad boy rebel theme. This ad is 180 degrees away from target. Yours hits it.

But that brings up another question. Is there ever a rationale for a reaction to the marketplace that dictates a change in brand and message? (I have my own view, but would like to hear what your audience says.)

Carl Flynn

Jay,

I agree with you that this ad is a not well-thought out, short term strategy designed to grab quick business in a down economy. Hopefully this is not a national strategy, because it has a very "last ditch effort" vibe to it.

Grace & Peace,
Carl F. Flynn

Thanks, Kalli. I took the arrow off so that I could make "Freedom" larger. And the board sits directly on top of the dealership, which is clearly visible. I wasn't against the arrow, just didn't think it was necessary in this instance.

I get your point, Elm, but have to disagree. This particular dealership is a Harley dealership and that means being a Harley dealership. Why not just open a dealership that sells cheaper, economic bikes? Because they wouldn't have the Harley name, and then the dealership wouldn't have the same appeal, because Harley stands for something else. And around and around we would go.

You bring up some interesting points about the Harley product, and it makes me wonder if this is really just an isolated board, or we will begin to see more of them like this.

Thanks for the opposing view point.

Kalli Lawrence

I love your billboard! I completely agree with you about Brand dilution! I would have left the arrow on the sign, though... I did like that!

Elmer Boutin

I agree with the basic idea of your post, but I think you're missing something. This is a billboard above a particular Harley shop, probably paid for by that individual shop. If someone were thinking about a bike, this might be something to induce them to decide to purchase.

Now, if we start seeing ads like this all over the place, then I think your idea would be right on the money.

I wonder what kind of Harley you can get for under $8K, too. I thought even the little Sportsters started around $10K.