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(guitar rock music)

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- [Narrator] When you hear
the name Harley-Davidson,

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what's the first image that comes to mind?

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The open road, a roaring motorbike,

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a fat bearded dude with
an American flag bandana

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and a dirty leather jacket,

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or maybe a trim baby
boomer VP of Accounting

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living out that late mid-life crisis,

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cruising the outer suburbs
and a shiny new pair of chaps?

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Jokes aside, these gross
generalizations represent both

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Harley's greatest strength
and biggest challenges

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as one of the most iconic American brands

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of the last century.

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And with sales slumping by
almost 25% from last year,

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the motorcycle giant needs to innovate

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if it's gonna rally new riders.

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Starting in 1903 when childhood friends

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William S. Harley and Arthur Davidson

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started building small engines in a shed

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in Davidson's backyard,

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things kicked into high gear
when the US Military bought

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more than 20,000 Harley motorcycles

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for the first World War.

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For World War 2, the company made

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more than 90,000 motorcycles.

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But it was in post-war America

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that the modern Harley-Davidson
brand was truly born.

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The rise of American biker culture,

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with all the pop connotations
of freedoms and outlaws

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thanks to film, TV,

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and the proliferation of
motorcycle clubs and gangs,

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became synonymous for Harley-Davidson.

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Bill Davidson, great-grandson
of founder William Davidson,

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has been running the
Harley-Davidson Museum

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at the company's Milwaukee
headquarters since 2010.

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- [Bill] This philosophy of,

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we're gonna be close to our
customers in everything we do

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was implemented at a very, very
early stage in the business.

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Those legendary, iconic
philosophies and approaches

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to business is truly what has strengthened

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our brand over time.

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- [Narrator] What also happens over time

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is that some heritage
brands start to feel,

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well, old.

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The same style and
functional changes we've seen

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over the years in the auto industry,

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from yacht-sized sedans to SUV fever,

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to today's obsession with fuel efficiency,

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hasn't generally been reflected

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in Harley-Davidson's motorcycle offerings.

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Part of that is obviously due to,

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an if it ain't broke approach.

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There's a reason people love Harleys,

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but the company has also been accused

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of not evolving fast enough
to attract younger riders.

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Davidson sees that perception
changing in recent years,

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with the company's push into
new categories of motorcycle.

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- [Bill] I am probably the
most excited I have ever been

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about our future opportunity.

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We have a brand that is
recognized around the world,

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whether you're a rider
or you're not a rider.

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We're right up there with the Coca-Colas,

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the Microsofts, the Apples of the world.

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Things like electric motorcycles,

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the LiveWire which we just announced,

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adventure touring bikes,
street fighter bikes,

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that we're coming out with.

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These are categories that
we really have not played in

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in the past,

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so it's kind of interesting.

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We've been there, but we haven't.

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- [Narrator] It's more than interesting.

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It's crucial that the brand diversify

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its products and approach
to younger riders.

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Harley-Davidson's stock has been

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on a steady decline recently.

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Down by about 50% in the last five years.

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But, the company hasn't been
sitting on its handlebars.

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It's launched a strategic plan
to lure two million riders

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to the brand over the next decade,

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with efforts like opening riding
schools across the country

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and products like the LiveWire.

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It's also been sponsoring
things like X Games

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and aligning with pro-skateboarders

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to help skew its outlaw image younger.

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Heather Malenshek is Harley-Davidson's

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chief marketing officer

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and knows the scope of
the company's challenge.

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- [Heather] I think of the
challenge versus relevance,

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and I think it's not just
relevance of the brand,

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but relevance of the sport
for motorcycling in general.

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So, we have to make sure that
people are gonna understand

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what role motorcycling
can play in their lives,

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and then importantly, why
Harley-Davidson is the brand

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that they should associate with.

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We have a vast customer base

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of very passionate, loyal customers

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who are emotionally invested in this brand

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and do their part to inspire new people

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to come into the sport.

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- [Narrator] While it can be
criticized for taking awhile,

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it's clear Harley is all in,

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on using its iconic image
to attract new fanatic.

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It's also done work with its marketing

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to broaden the definition

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of what a supposed typical
Harley rider might look like.

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In 2017, the brand teamed with
celebrities like Ludacris,

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Jason Momoa, and country
star Brantley Gilbert

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for an Instagram campaign

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that also enlisted a
select list of influencers.

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That drove more than 62 million
engagements for the brand,

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and according to CEO Matthew Levatich,

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boosted media value by 80%.

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- [Heather] Breaking through
some of those stereotypes

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is important for us to do,

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and the work that we have been doing

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to show relevance in
places that are relevant

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to that audience

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have been very successful for us.

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So, certainly a move to more of an

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influencer-based marketing approach.

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Digital, obviously is playing a huge role

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in everything that we're doing today.

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We have a very high
awareness of this brand

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around the world,

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but we have people who are
not necessarily thinking

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about motorcycling,

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so we're using the
digital space to help us

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to reach out beyond on our own channels

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and fully going where customers are.

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It's not just about Harley,
it's about the sport.

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And as an industry, we have an obligation

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to build that relevance and get people.

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We don't have as many people these days

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growing up on two wheels,

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and so we have to work a little harder

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to get them to understand
the freedom you can feel.

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- [Narrator] That's the key.

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The brand was able to do
it for generations before,

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and now that it's more
focused on the road ahead,

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both in its products and its marketing,

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the hope is that this is
a classic American brand

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that won't be left in
the rear-view mirror.