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Supermodel revs up Harley V-Rod ads

« on: October 14, 2008, 08:54:16 AM »

By RICK BARRETT
rbarrett@journalsentinel.com
Posted: Oct. 13, 2008

Harley-Davidson Inc. has hired supermodel Marisa Miller to promote the V-Rod Muscle, a motorcycle aimed at a younger, hipper demographic than Harley’s traditional customer base.

Harley-Davidson Inc. has hired supermodel Marisa Miller to promote the V-Rod Muscle. MondayThe company launched an ad campaign Monday in magazines such as GQ, Esquire and Road & Track.

On Monday, the company will launch an ad campaign featuring the V-Rod and Miller in magazines such as GQ, Esquire and Road & Track. The campaign will make use of a new technology, called SnapTell, which provides access to exclusive online content after photographing a print ad with a cell-phone camera and sending it to a Web site.

The campaign will include online features such as video, wallpapers and downloadable photos. It’s already been linked to Harley’s YouTube site showing the V-Rod Muscle photo shoot.

Miller, a Victoria’s Secret model, was on the cover of the 2008 Sports Illustrated Swimsuit Edition and is a regular in men’s magazines such as Maxim.

The 30-year-old California woman has been on reality television shows and is a well-known face through magazines and ad campaigns for Tommy Hilfiger, J.Crew and Victoria’s Secret. She is the first celebrity Harley has used in its ad campaigns, according to the company.

“We really felt that she represents the return of the great American supermodel,” said Harley-Davidson spokesman Paul James.

The ad campaign comes as Harley, the world’s largest manufacturer of heavyweight motorcycles, has seen its sales fall with the downturn in consumer spending. The company said in July it shipped about 15% fewer motorcycles in the second fiscal quarter, mostly due to cuts it announced in April.
Sleek, sporty bike

Long term, Harley must reach a younger audience because its customer base of largely middle-aged customers is aging fast.

The V-Rod Muscle is a sporty, sleek bike introduced this year. It has a long, low profile inspired by drag racing and an engine that was co-developed with Porsche, the German sports car maker.

“It’s a totally unique motorcycle for us, designed to attract a younger and nontraditional customer,” James said. “The bike is definitely a supermodel as well. There’s a definite strength and athleticism in that image.”

Harley’s V-Rod series of motorcycles was introduced in 2001. The bikes have been popular in Europe but in the United States haven’t sold as well as other bikes in the company’s lineup.

Until recently, at least, Europe has been a strong growth market for Harley-Davidson. But a report released Friday from Robert W. Baird & Co. suggests that Harley’s overseas sales may have cooled off.

Most of the 25 international dealers that Baird surveyed were selling bikes well below the manufacturer’s suggested retail price, a troublesome metric that runs counter to the trend in the United States, according to the report.

“The pace of international growth has decelerated,” the report noted. “As credit markets deteriorate, we expect discretionary consumer spending to worsen.”

Growth will be slowed for any company that’s selling big-ticket items like motorcycles, added analyst Robin Diedrich with Edward Jones Co.

“The markets around the world are going through the same financial crisis and, in many cases, the same turmoil. Definitely areas in Europe are going to have a much softer economy for a while,” Diedrich said.

Harley’s third-quarter earnings are scheduled to be released Oct. 16.

At that time the company’s management will likely address investor concerns about Harley-Davidson Financial Services, the company’s consumer lending division.

Harley has a $400 million medium-term loan due in December and needs access to the credit market to fuel motorcycle sales, according to Baird analyst Craig Kennison.

“In the short run, we believe investor sentiment (and valuation) hinges on how well management addresses concerns about HDFS and the balance sheet,” he noted in the report.

Baird said it was lowering its 2009 outlook for Harley to reflect further deterioration in global credit markets and prospects for further consumer issues.

Harley shares closed Monday at $30.37, up 2.81%.


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Supermodel revs up Harley V-Rod ads

« on: October 14, 2008, 08:54:16 AM »


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