Indian's Woes - Parts 1-5 (5/23/19)

PART 1 (November 18, 2017):

Evaluation, Analysis & Background
The fourth brand in our insanely popular Woes series is Indian. I've always had a soft spot for Indian motorcycles. When this storied brand was bought by Polaris there was renewed hope for its long-term survival. I am not going to cover the 116-year history of Indian, Wikipedia does a good job of it, but basically the original Indian which was very popular before WWII went out of production in 1953 and after a couple of misfires along the way, it found a new home at Polaris Industries (makers of former Victory brand) in 2011.

What is the Woes Series?
The Woes series is about the future of our US moto industry that is under attack from all sides.

The core issues with the US moto market are:

  • Very small market compare to the automobile industry (annual units: 470K vs 17mil).

  • It's a shrinking market.

  • Major cities are planning a war against combustion engines.

  • Although electric cars have a cool factor, electric motorcycles do not.

  • Younger US generations lack enthusiasm for motorcycles in general.

  • As cars get quieter, insular and loaded with high-tech safety features and wrap-around airbags, motorcycles appear as extremely a dangerous choice.

  • The car buying trend in the US is now about ditching cars for SUVs. Meaning even more isolation from the road and the driving experience; that moves people even further away from the motorcycling experience.

Cars and Bikes Have Parted Ways
As a cinephile I am a fan of classic movies. I can name my top-ten films per decade all the way from the Silent Era. One of the nice things about watching classic films is seeing the evolution of cars and bikes in action. For example, you can see Henderson and Harley police bikes in use when they were new in the '20s and '30s.

Cars and motorcycles initially started together very simply as an engine with wheels and totally open to the elements. In the '30s and '40s people drove a lot of open top cars too. Jumping to the '70s, even then cars were quite unrefined, no one used a seatbelt, cars had no safety features, such as airbags or ABS and windows were almost always kept open and you worked on your car as you did on your bike. It was from the '90s when cars began to part ways completely from motorcycles by becoming more and more insular and cocoon like.

Now fast-forward to today, cars and bikes occupy totally different worlds. Cars have become incredibly protective, loaded with safety features, such as wraparound airbags, proximity and lane-departure warnings, self-parking, emergency braking, very good audio and entertainment systems and foolproof environmental controls.

This major shift between cars and bikes may not matter to baby boom generation but it certainly affects the younger US generations who were driven around in rolling fortresses with rear seat LCD screens for games and entertainment. This sense of long-term on-road isolation doesn't translate to fanaticism about motorcycles.

Future Automotive Buying Trends - Personal Transportation Revolution
Adding to above there are reports that automotive ownership will decline in coming years as more people opt for alternative means such as autonomous vehicles, car sharing (Zipcar, Maven), ride sharing (such as Uber), short term leases and month-by-month leases.

This new month-by-month leasing trend is already being offered by Ford, Cadillac and Porsche. Basically the participants only commit to one month at a time. No long-term commitment needed. So you can drive one car for a month, then try another for the next month and then another with all costs covered including insurance and maintenance, or drive the same car for many months within mileage limits. In most cases cars are delivered to and picked up from your location for free. So you can order a Ford in April, then pay more and book a Cadillac for May and increase your budget to order a Porsche for summer fun and go back to Ford if you feel like saving money the following month.

We're in the midst of a personal transportation revolution and the US moto market is missing out on it.

Out of deep love for our sport and for the industry, the Woes series was created to help revive the US moto market and suggest ways to reverse or at least slow down the negative sales trend. The focus of the Woes series is only the US market.

Our Woe's series was launched with a real bang, an epic 5-part Harley's Woes article. It received tens of thousands of hits, new subscribers and many forwards of our MOTO eMAG. The Woes series is basically a direct, no-nonsense, industry focused analysis and report on popular moto brands for the all-important US market. This is what we, the marketing types, share with executives of major brands. You see, you can sell a basic scooter anywhere in the world but a $15K+ 1000c+ bike can find home only in a few select countries and the US is one of the biggest markets. After Harley's Woes, we covered another favorite brand that used to be owned by H-D, MV's Woes, and then a brand that H-D actually was very hot on buying in Sept '17, Ducati's Woes. And the 4th is Harley's longtime rival Indian's Woes.

The Very Unique Case of Indian Motorcycles
It's exciting to talk about Indian, because their case is so unique. They're one of the oldest automotive brands (cars or bikes) and they predate Harley by a couple of years. Also the brand itself historically been linked to advanced technology.

Here's a true American brand, selling cruisers in a cruiser-loving US market. A made in the USA prestigious product, which is now owned by a major industrial company that knows how to build things well.

So, it should be all systems go for Indian. However, one element is not being taking too seriously and that's marketing.

Polaris' Indian
The Polaris engineers and designers have done a good job with creating the new Indian model line up. They are building high-tech American-made cruisers, an enticing marriage of old and new, the classic look with modern features. And the fit and finish on these bikes are top rate. This is all good news.

However, Polaris seems not to have learned from the marketing mistakes of their former motorcycle brand, Victory.

The Demise of Victory
Polaris produced the Victory motorcycles for 18 years, however Victory never really caught on. This is a very odd mystery, since US is a cruiser country (over 50% of total market) and US loves American made bikes and Victory matched both of those criteria. So what was the problem? Poor marketing.

The US Moto Marketing is on Auto Pilot
I've noticed that motorcycle marketing in the US has shrunk into running banner ads with low APRs and monthly incentives. But those aren't marketing tactics at all they are sales strategies. Then there is the trend for one-off customs, but those customs don't translate into sales for the regular model range. Marketing should not be just about posting nice images of your product on your social media channels, or running banner ads. Marketing is about winning hearts and minds.

At BMW motorcycles, primarily between 2003 and 2008, due to high talent ratio and very hard work we won the hearts and minds of American riders and made once a pariah moto brand, especially among the younger riders, hot again. I'll cover the successful strategy at BMW's '00 years in detail with BMW's Woes in a future issue.

Successful Marketing = Winning Hearts & Minds
Apple is the all-time king of winning hearts and minds followed by Harley-Davidson. Any brand that turns its followers into religious zealots is worth admiring and also imitating.

PART 2 (December 7, 2017):

Point-By-Point Marketing Ideas & Solutions
Indian is the only brand in the world that can take on Harley's dominance in the US. As noted many times in Woes series US market is basically dominated by Harley-Davidson and has been for a long time. They have owned half of all motorcycle sales in the US for decades. So, it's safe to say that US is Harley country, US is also cruiser country. Almost all brands today offer some type of a cruiser for the US market, even Moto Guzzi, BMW and Ducati and none has ever had a meaningful market penetration.

Even the mighty Honda, world's largest moto brand, can't really crack it in the US, like H-D. However, Indian is the only company that has a chance for taking some slice of the pie away from H-D if they play their cards right.

What is Polaris' ultimate agenda with Indian Motorcycles, are they looking to just duplicate the low market penetration of the defunct Victory brand? Are all they want is 2% market share? If that's the goal we can stop right here, since 2% market penetration is well within their reach.

Alternatively, if Polaris is planning a higher goal for Indian, they may want to continue reading.

When in Rome...
When in Rome, do as Romans do. Indian is one of the oldest automotive brands in the world; they are also one of the more respected brands. Indian was a sales leader before WWII, they also served our nation during that war alongside Harley-Davidson. Indian couldn't have found a better custodian than Polaris. Just one look at their model line up would confirm that.

Below is a rapid-fire list of ideas to help Indian regain massive market share in the US. However, one thing is painfully obvious, if they follow Victory's marketing blueprint, they'll end up in the same ditch, as its already being predicted by some financial analysts. So, when you're in Harley country, do as Harley does.

The US Motorcycle Brands Masculinity Perception Index
It should come as no surprise to anyone who understands American riders that the brand that enjoys the highest level of masculinity perception is also the market leader by a very wide margin. It's H-D's world after all.

Among Euro bikes Triumph enjoys the highest rating in the US because Triumph is associated with two of the most popular and badass American male icons of all time, Steve McQueen and Marlon Brando. You can't buy nor bottle this grade of smart and masculine heritage. So Triumph has that in their line up.

The Motorcycle Brands Masculinity Index is brand indicator and not rider indicator. US riders are attracted to the brand with highest level of perception of masculinity.

Up the Masculinity Index
Have you ever heard of a gang of outlaws riding Indian bikes harassing a small town anywhere in the country? How about the word gang or outfit being associated with Indian bikes? How about a news bulletin stating that a certain group's chapter riding "Indians" ran into a roadblock by sheriff office? How about a movie about a bunch of middle aged buddies trying to find their mojo riding Indian bikes? How about a Roger Corman movie or Peter Fonda or both combined where any Indian bikes are showcased? How about any mention of Indian in major movies except for Terminator 3 and they were used as police bikes? I think, I got your attention now!

Lose the Nice Guy Image
The picture should be getting clearer. Note to Polaris and Indian execs, consider losing the nice guy image pronto. Stop following Victory's marketing pattern. Indian's only survival strategy in the US is to become hardcore.

Loosen Up on the Heritage
Yes we all know Indian bikes back in the days (before 1953) had a certain look. We get it. But it's 2018 now, do we need to be constantly reminded of it? To their credit Polaris is following a very nice design with most of the lineup, specially the Scout. However this topic brings us to the next point.

Baggers are All We Need
The Baggers! What a trend and no one is cashing in on it except H-D. Yes, a lot of brands are trying to create a Bagger look, such as BMW Bagger, Guzzi MGX-21 and of course the Japanese but they have had no real market penetration.

That's because the Bagger segment is owned in whole by Harley. There is a popular bar near me that's a Bagger's hang out. During the warmer seasons, I spot 60 or so Baggers all lined up as I may be walking by. They all look exactly the same.

All the Baggers there are black maybe for an occasional burgundy, they are all Harley with zero exception, they are all new with large LCD screens and loud audio systems being ridden by guys in their 50's and up who want to have a good time. So they park their hogs and play music on their bike audio system and crowds gather and they basically start a party on the street.

You won't be able to cut into that crowd with a Honda or Yamaha cruiser, but Indian is the only brand in the world that can crack that code if they decide to blend in instead of looking different.

Note to Indian, consider ditching the old design patterns with your wonderful Baggers and try to create a lineup of great American made machines that would fit nearly undetected in that local bar's Baggers hangout. Consider larger LCD screens and a way superior sound system, so when the party starts they all come to that other great American brand to crank up the volume.

The Nonexistent Non-Harley US Cruiser Market
Every moto brand that has a cruiser model is competing for the same miniscule non-Harley cruiser sales market in the US. That's all 4 Japanese brands, plus 4 Euro brands (BMW, Ducati, Moto Guzzi and Triumph), all cruiser customizers and of course Indian. This market is way too tiny to allow real growth and its miniscule size was one of the main reasons for Victory's demise, since they hit a wall with their expansion pretty early on in their history. Therefore, Indian must think out of the box in order to survive. That brings us to the next point.

Not an Alternative to Harley, Join the Harley Community
Back in 2003, when Harley was celebrating its 100th anniversary, our BMW marketing team at the time, quite cleverly, ran a billboard ad right by H-D's main anniversary festival with a message that read roughly as, Harley, We would like to congratulate you, but we're sure you couldn't hear us. Your friends at BMW. Now, that's chutzpa. And that was the marketing mentality that my group back then ran which transformed the image of BMW bikes in the US. (More on that with BMW Woes in a future issue.)

I haven't seen such clever marketing taglines from any other moto brand since those days. Maybe one, and that was from Suzuki also back in the 00's. Their genius line was "if you don't win, it's your fault." What has happened to the moto marketing in the US that last of the clever taglines are now 15 years old.

Indian needs a shot of cutzpa aka cojones.

There is no real non-Harley cruiser market in the US. It's all owned by Harley. Hence going after the miniscule group of baby boomers who rather ride a non-Harley cruise will only place them in the old Victory market segment, which Indian certainly doesn't deserve and they can definitely do better.

So if Indian actually wants massive market penetration they need to join the Harley community. And who is more welcome in hog world than one of Americas oldest and most admired motorcycle brands.

Competitions and Giveaways
Generate interest and online chatter with giveaways and various competitions that involve a selection process. This could mean, selecting influencers who would ride Indian bikes for special long distance events, have people do crazy stunts on Indian bikes, place Indian bikes in TV and Film as the getaway bikes for the bad guys (not police bikes), up the badass meter and so on. And forget one-offs they don't generate sales only strong marketing does.

PRICELESS IDEA: Complementary Routine Maintenance for Life of Warranty
BMW cars managed to unseat Lexus as the top luxury brand several years ago by eliminating the worry of luxury car ownership maintenance costs from the minds of buyers. Many brands now offer some type of complimentary maintenance under warranty, also for certified pre-owned models. However, no moto brand has yet to take advantage of this brilliant and crowd-pleasing marketing/sales scheme.

If Indian offers complimentary maintenance for life of warranty, this will be a gamechanger and a first for any motorcycle brand. It will not only create a very positive vibe for Indian but also take away inhibitions about purchase due to service costs. Complimentary routine service is basically handled via new vehicle warranty system that is already in place with all new vehicles anyway. Meaning the same way that a new bike gets serviced at a dealer for bad transmission under warranty, that warranty system is extended to include oil changes and so on. It's not complicated and it will pay for itself with increased sales. Also complimentary maintenance offers bring the customers back to dealerships which is what every dealer wants.

Complete Marketing Plans
We have complete concepts plus detailed marketing plans for the above ideas and for many more suggestions.

Indian's Woes Conclusion
Indian is the only brand in the world that can challenge Harley's dominance in the US, if they change the brand's softer image and show more clever marketing tactics. We wish them lots of luck.

PART 3 (October 4, 2018):
We Love it When Brands Listen

To say MOTO is shaking up the US industry is an understatement. Our groundbreaking "Woes" is viewed by tens of thousands of people.

There is very little non-Harley US cruiser market, so in our "Indian's Woes" we suggested that they stop looking different and try to blend in with the H-D crowd.

We're delighted they listened and lost the hump.

PART 4 (March 21, 2019):
It's Deja Vu All Over Again
Two years ago I picked Indian as the brand with the most potential for growth in the US. Now unfortunately I may need to reconsider that comment, since I still don't see any strong marketing initiatives. Polaris (parent company) can't seem to get a break with their motorcycle brands. In a country that loves American made cruisers, they couldn't create strong enough interest for their now defunct Victory and looking at how they're handling the marketing for Indian, it's becoming clear that they're basically following a similar brand promotion.

A lot of brands make the colossal mistake of thinking of their offerings as industrial products only and they assume just by releasing some stats, putting on a fresh coat of paint, getting some press exposure and offering couple of hundred dollars in incentives people will flock to their machines. As it's painfully obvious by now it doesn't work that way, specially for premiums. People buy premiums only because of brand association and no other reason. If a company can't instill high level of brand-pride it won't succeed.

The case in point, the only marketing I've seen from Indian for sometime was the recent Jack Daniels edition. Now, there is nothing wrong with special editions if they are part of a larger multi-tier marketing plan. But if a special edition is all you're doing then it doesn't send a strong message about a premium brand's marketing direction.

The Eluding Harley Factor
Harley-Davidson became a serious player and a powerhouse because they created one of the best brand associations of all time, which was helped massively by adventure loving baby boomers. Harley, with the power of great marketing, became synonymous with freedom and also being a badass. Both of which are highly enticing brand associations. But that era in US motorcycling history is coming to an end and the new phase seems to be more focused on lighter and cheaper bikes and also used bikes.

Today, with our new bike sales on a shrinking path and boomer generation gradually retiring from riding and also from buying new bikes and our industry hampered by a glut of like-new used bikes, one could argue that perhaps the era of massive growth for brands in the US maybe over. Also the new bike-buying trend in the US is shifting more to lighter-weight, smaller and cheaper bikes, which of course means less revenue and hence less profit for the brands. And this specially is not a good indicator for premiums, who thrive on large displacements and expensive price tags.

The Silver Lining
Polaris can certainly turn Indian into a much larger player in the US. I believe the Indian brand has massive potential, but without major efforts in brand development and brand association, it would be very difficult to not only maintain their marginal growth but to expand marketshare in any meaningful way specially in today's environment of shrinking new bike sales and push toward smaller and cheaper bikes.

PART 5 (May 23, 2019):
We Love it When Brands Listen
Indian has been paying attention. In my editorial The Best Dealership Practices I mention the merits of rentals but I also emphasis that the old ways of renting vehicles are over. If you set up a rental policy where the cost of rental equals to number of days, your bikes are just going to sit there. And if the bike is sitting on the floor is losing money, if it's off the floor is making money. The latest trend, as mentioned in my article, is personalized rentals where you can ride a bike for a few hours or just the weekend or for weeks and the longer you keep it the more you save.

Indian Motorcycle Rentals
It's good to see that Indian and a few of their dealers have picked up on this. Indian just announced a brand new rental program based on the personalized plan and depending on the participating dealer you can rent for just a few hours or for few weeks. Also discounts are offered based on longer bookings, exactly as suggested. That's great Indian also congrats to few dealers who are onboard. A lot of people who rent bikes don't want to be bothered with parking them overnight just to bring them back first thing in the morning, therefore special rates for daytime rides is a must and I noticed that so far only one or two Indian dealers have picked up on this. At this time, Indian Motorcycle Rentals site shows only 9 participating dealers in total. The key to growth of this program is more dealers ditching the old school rental plans for the personalized. My Best Dealership Practices explains in detail. Indian Motorcycle Rentals.


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