Ken Schmidt: How Harley-Davidson Transformed from Commodity to Lifestyle Brand

In this episode of The Excellence Project, Eric Worre sits down with Ken Schmidt, the former Director of Communications at Harley-Davidson who played a pivotal role in one of the most celebrated brand turnarounds in business history. Ken shares the inside story of how Harley-Davidson transformed from a struggling motorcycle manufacturer on the brink of bankruptcy to a lifestyle brand with unprecedented customer loyalty. Throughout the conversation, Ken reveals the powerful strategy of creating "visual words" that differentiated Harley from competitors, the importance of humanizing business interactions, and practical ways any business can shift from being product-focused to becoming truly memorable in customers' minds.

TimeStamps

[00:00:40] - Ken's Beginning at Harley-Davidson - How Ken joined Harley-Davidson in the mid-80s when the company was struggling and most expected it to fold after 80+ years in business.

[00:05:02] - The Market Situation - Ken explains how Harley went from owning 95% market share to collapsing as Japanese competitors entered with lower-priced, well-made motorcycles.

[00:09:40] - The Mission to Reposition - Ken describes his job to improve Harley's image and attract investment despite the company's Chapter 11 status.

[00:15:40] - The Three Questions That Changed Everything - Ken shares the three simple questions he typed out that became the foundation for Harley's brand transformation.

[00:22:15] - The Five Visual Words - The afternoon brainstorm that produced five powerful words—lifestyle, freedom, camaraderie, individuality, and rebellion—that still drive Harley's brand identity today.

[00:35:05] - Humanizing the Business - Ken's insights on why people naturally humanize businesses and the importance of being known for who you are, not what you do.

[00:41:31] - Direct Customer Engagement - How bringing bikes to events and asking customers direct questions provided invaluable insights that couldn't be captured in surveys.

[00:48:07] - Getting Executive Buy-in - The story of how Harley executives personally experienced customer feedback, which catalyzed total organizational commitment to the new approach.

[01:09:38] - Remember and Repeat (R&R) - Ken's personal philosophy about creating memorable experiences that customers will share with others.

[01:17:44] - Leading with Humanity, Not Products - Why showing genuine interest in people creates preference in a world where every product is seen as a commodity.

[01:32:17] - Simple Ways to Be Memorable - Practical examples of how businesses can create unexpected moments that get talked about and drive repeat business.

 

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