For the case please make sure that you cover the following in your submission. Note that you should use the case template as a general guideline but other than that there is no prescribed format for this case:

1. Situation analysis
2. Core Challenge - Assume it is the following: How can HD improve its brand image and reverse declining sales
3. Strategic alternatives
4. Evaluation of alternatives
5. Recommendation

In addition please address these key discussion points outlined from the case:

• What are the possible impacts of the brand co-creation H-D has introduced, and the associated challenges?
• Are the H-D co-creation initiatives rightfully integrated with stakeholder expectations?
• What is the objective of the H-D Connect service? How is this objective performing an instrumental role in the co-creation process of H-D?
• Considering needed changes in the motorcycle industry, is the co-creation model sustainable?
• What are other ways that H-D senior management should look to improve its brand image and reverse declining sales? Is co-creation needed for other areas as well?

Case Learning Outcomes By the end of this case study, students should be able to: . Establish how customers jointly participate with a company in the creation of new products, services, and brand development. Demonstrate a well-managed co-creation process that can lead to successful innovations and new business opportunities Discuss how co-creation helps in the revival of brand image and potential new sales opportunities. Describe the role of organizing a brand co-creation event. Describe the role of suppliers in a brand co-creation event. Introduction Two IBM employees, Sujay Nandi, a senior certified executive IT architect, and Sibasis Das, an application architect, were discussing how they had developed a connected bike service for their customer Harley- Davidson (H-D) in 2019. Nandi, as lead architect, was a critical member of the H-D connected bike project. The service that IBM prepared with other vendors, such as Panasonic, Gigster, Gigya, and Zuora, was named H-D Connect. Through the H-D Connect service, riders could remotely connect to their bike through the H-D app, which was available on smartphones. The service used built-in cellular connectivity and GPS to keep the rider aware of their bike's status, notifications, and alerts. The service is available for H-D's 2020 LiveWire and select 2020 Touring models. H-D was one of the pioneers in creating a community culture among its customers. In 1983, the company created Harley Owners Group (HOG), a sponsored community marketing club for enthusiasts of its motorcycles. H-D always tried to ascertain the customer pulse from these owners. However, in recent years, Page 3 of 14 Harley-Davidson H-D Connect: Reviving Brand Image Through Co-creation SSAGE businesscases\fH-D had again approached the IBM team with similar requirements. Taking a sip of coffee, Nandi was discussing the technical design of the solution with Das. Nandi, Das, and the team were also discussing whether H-D had taken the right steps towards the revival of its brand image and financial position, or was it late in deciding its stance. Also, the recovery could be halted due to the COVID-19 pandemic, since H-D Page 12 of 14 Harley-Davidson H-D Connect: Reviving Brand Image Through Co-creation SSAGE businesscases SAGE Business Cases Sanmitra Sarkar and Saikat Banerjee 2022 plays in the luxury market and people are going to think only about the necessities in the next few months and years. This will be a massive hit to the automotive industry and definitely to H-D's plans. As an H-D partner, suppliers such as IBM also need to suggest some steps H-D should consider in this challenging situation. Nandi was exuberant going into the meeting with senior business consultants and executives of IBM to share their suggestions to H-D-this meeting would be exciting, many ideas could be discussed, and there would be new things to learn. Discussion Questions 1. What are the possible impacts of the brand co-creation H-D has introduced, and the associated challenges? 2. Are the H-D co-creation initiatives rightfully integrated with stakeholder expectations? 3. What is the objective of the H-D Connect service? How is this objective performing an instrumental role in the co-creation process of H-D? In what ways does the H-D Connect service help H-D motorcycle riders? What are the advantages of such a service, and how does it function? 5. Considering needed changes in the motorcycle industry, is the co-creation model sustainable? 6. What are other ways that H-D senior management should look to improve its brand image and reverse declining sales? Is co-creation needed for other areas as well?H-D has been in distress financially, which was attributed to millennials not riding motorcycles as much as previous generations. Demand for motorcycles had shifted as the baby boomers, the most consistent H-D customers who had previously helped the company thrive, moved away from motorcycle-riding. Hence, H-D's senior leadership thought to arrange co-creation events with HOG members, to get feedback from their loyal customers. The co-creation event was held in mid-2018. At the event, customers suggested that H-D should modernize its operations. The company should create innovations that could attract the younger generations who were more interested in cars. Some of the H-D suppliers were also invited to partake in the discussions. In these meetings, the suggestion was made to move towards digitization. As a first step toward digitization, the company planned to launch a connected bike service. The proposed service would inform the rider of their bike's health, vital statistics, tampering attempts, service reminders, and GPS tracking. The solution was mostly conceived of to support the new-age electric or battery-supported bike models H-D had designed and launched, among these being the LiveWire models. Around October 2018, a follow-up discussion was arranged with H-D suppliers IBM, Panasonic, Gigster, and others. Subsequently, contracts were signed to develop this connected bike service named H-D Connect, which would use state- of-the-art Internet of things (loT) technologies. The co-creation participants also suggested that H-D might diversify into the digital technology platform market, and this connected bike service should be the stepping- stone. H-D could host this platform for other bike and car companies and use it to improve its financial status, as the company had been under pressure because of its aging customer base and the terminal decline of motorcycle sales in the key U.S. markets. Brands such as Ducati and Triumph were more popular with young riders, while newcomers such as Royal Enfield were making inroads in the urban and entry-level markets. The challenge was to remain relevant in the markets as the stock share price declined even though H-D remained a revenue stalwart. Company Background Harley-Davidson Inc. is a motorcycle manufacturer founded in 1903 in Milwaukee, Wisconsin, in the United States. The company has survived several ownership arrangements, subsidiary arrangements, phases of poor economic health and product quality, and intense global competition to become one of the world's largest motorcycle manufacturers and an iconic brand widely recognized for its loyal following. H-D maintains owner clubs and conducts events worldwide, and it also has a company-sponsored, brand-focused museum in Milwaukee. The company manufactures its motorcycles at factories in York, Pennsylvania, and Milwaukee in the United States, as well as in Manaus, Brazil, and Bawal, India. Construction of a new factory in Thailand started in late 2018. The company markets its products worldwide and licenses and markets merchandise under the H-D brand-items include apparel, home decor, ornaments, accessories, toys, scale figures of motorcycles, and video games centered on its motorcycle line.\fTable 1. Harley-Davidson Income Statement (USD Million) 2019 2018 2017 2016 2015 Revenue 5,362 5,717 5,647 5,9965,995 Cost of Goods Sold 3,440 3,545 3,453 3,6003,518 Gross Profit 1,922 2, 172 2 1952,397 2,477 Operating Expenses 4,806 5,003 4,7654.9504,840 Operating Income 556 714 882 1,0461,156 Page 5 of 14 Harley Davidson H-D Connect: Reviving Brand Image Through Co-creation OSAGE businesscases SAGE Business Cases Sanmitra Sarkar and Saikat Banerjee 2022 Total Non-operating Income/Expenses 2 -27 -18 -22 -6 Pre-Tax Income 557 687 864 1.0241,150 Income Taxes 134 155 342 332 398 Income After Taxes 424 531 522 692 752 Net Income 424 531 522 692 752 EBITDA 874 1,068 1, 195 1,352 1,457 EBIT 556 714 882 1.0461.156Shares Outstanding 158 167 173 181 204 EPS 2.68 3.19 302 3.83 3.69 Source: https:/www.macrotrends.net/stocks/charts/HOG/harley-davidsonifinancial-statements Connected Vehicle Solution Motor vehicles have continuously improved in various ways from the time they were invented during the second industrial revolution. Today, people's expectations are far more than just looking at the quality and reliability aspects of a vehicle. With the advent of newer information and communication technologies, preparing automobiles with wireless communication abilities is bringing about the next automotive revolution. Connected vehicle technology permits vehicles to communicate with each other and the world around them. The connected vehicle concept is about supplying useful information to the rider to help them make safer or more informed choices. The use of a connected vehicle does not necessarily suggest that the vehicle is making decisions traditionally made by the driver, or for motorcycles the rider. The connectivity provides information to the rider, including possible hazardous situations to avoid. Connected vehicles on the go are proactive, supportive, up-to-date, and synchronized, and will lead to helping in different applications for road safety, some of which are collision detection, lane change warning, as well as smart and green transportation, such as traffic signal control, intelligent traffic scheduling, and fleet management. Furthermore, connectivity provides location-dependent services such as points of interest, route optimization, and in-vehicle Internet access. The market of connected vehicles is flourishing and, based on a recent business report, the globally connected vehicle market is expected to reach USD 2127 billion by 2027 (Markets and Markets, n.d.). Researchers and the automotive industry experts are responding promptly by exploring dependable and well- organized connective vehicle platforms, processes, and procedures. Collaborators Customers became part of the production from the middle part of the 20th century, and their contribution Page 6 of 14 Harley-Davidson H-D Connect: Reviving Brand Image Through Co-creation OSAGE businesscases SAGE Business Cases O Sanmitra Sarkar and Saikat Bane jee 2022 to co-production was first acknowledged in research in 1979. The term co-creation came into existence in 2000 when the customer's experience transformed from that of being a passive spectator to an active participant. Studies have shown four types of co-creation: product, process, value, and brand co-creation. Both researchers and marketers have acknowledged that customers have an essential role in co-creation and can contribute new ideas and concepts for product and brand development. Customers become emotionally attached to the product or brand if they participate as a co-designer. The new ideas transform into innovation for the sponsoring organization after they assess the ideas, shortlist them, analyze the feasibility, and finally implement changes with these customers and their suppliers.\fSAGE Business Cases @ Sanmitra Sarkar and Saikat Banerjee 2022 billing, collections, quoting (or a formal estimation), revenue recognition, and subscription metrics. It is headquartered in Redwood Shores, California. In 2015, Zuora acquired Frontleaf and launched Z-Insights, combining information from its subscriber invoicing and billing platform with customer usage information. In 2017, Zuora purchased Leeyo Software, a revenue recognition platform. Co-Creation Intended to Address the Woes of H-D Harley-Davidson has been in the motorcycle business for 117 years. It is dominant in the core market, but stocks have declined significantly in recent years. It is facing deteriorating motorcycle sales and an aging customer base. It is a classic example of a stable, profitable, and old brand that is still incredibly successful yet has experienced a long period of slow decline. Figure 2 shows diminishing H-D sales after 2014. However, this was not a new problem. H-D began to experience less lucrative revenue approximately 40 years ago when competitors such as Honda became established in the U.S. market. Honda started to lure non-bikers to try bike riding. In advertisements in 1982 (Figure 3). Honda showed how bike riding was an activity that women, children, and even tennis players should enjoy. At the same time, H-D was showing a brand image of bikers-that is, men who were violent, uncivil, and aggressive. The company did not consider changing or broadening its image and kept the rest of the market wide open. Soon it started losing out to the competition. Figure 2. Harley-Davidson's Declining Revenue Since 2014 Harley-Davidson Annual Revenue (Millions of US $) $6,400 $6,200 $6,229 $5,996 $6,000 $5,800 $5,995 $5,717 $5,600 $5,647 $5,400 $5,200 $5,362 $5,000 2014 2015 2016 2017 2018 2019 Source: https://www.macrotrends.net/stocks/charts/HOG/harley-davidson/revenueyou meet the nicest people on a Honda HONDA Source: Brewer, n.d. Instead of changing its company image, improving model features, or bringing less expensive bikes to the market, H-D sought help from the U.S. goverment to impose a tariff on non-U.S. bike companies. The then President Ronald Reagan (1981-1989) declared a relief for H-D by imposing a 49% tariff on imported bikes (Bergquist, n.d.). It fenced off H-D's market in the United States and made it uncontested. Reagan's protection ensured an upward trend in H-D revenue. Nevertheless, it increased the average age of H-D riders, from 35 years in the 1980s to 48 in 2008 (Beulah, 2015). After 2008, H-D no longer published statistics on the average age of its riders. Hence, this was a problem many years in the making and not a new problem. In 2014, H-D had a co-creation event during which customers suggested a move to the modern electric motorcycle segment. However, this alone could not address all of H-D's problems. Hence, the 2018 co- creation event was organized, and the decision was to open up a new business line-a digital platform available to other vehicle manufacturers and OEMs to utilize the loT technology for the safety, security, and health of vehicles and riders. The HOG's loyal customers who participated in the co-creation wanted to have an omnichannel experience, the same service quality, and convenience they could get in other spheres of their digital lives. They suggested that each H-D vehicle should house all the information, entertainment, convenience, and connectivity as in our homes and offices. Several brainstorming and idea selection sessions took place, and finally the connected bike solution idea was shortlisted with selected features. This service was named H-D Connect, and the H-D mobile app was to support it. The decision to create H-D Connect was also based on customer suggestions that it would be first targeted for the e-bike, LiveWire, as the new-age electric bikes need this type of loT support. Page 9 of 14 Harley Davidson H-D Connect: Reviving Brand Image Through Co creationSAGE Business Cases Sanmitra Sarkar and Saikat Banerjee 2022 The H-D mobile app allows the rider to always have peace of mind-they can see their bike's location in the H-D app and get alerts if it is tampered with, bumped, or moved. The GPS-enabled stolen vehicle tracking feature also shares its location with local law enforcement. Also, the battery status makes the rider aware of what they should do to avoid the vehicle's health hazards. At the 2018 co-creation event, H-D welcomed its existing suppliers as well as several new suppliers. The initial role of these suppliers was to perform a feasibility analysis of the various ideas during the idea generation workshops. Finally, the different scope of work contracts was signed with the chosen suppliers. Gigya took the role of customer profile management and security, and prepared the unified profile management system. Zuora was given the role of creating the subscription, billing, and payment interface. Salesforce handled customer relationship management. Gigster developed a mobile application. Panasonic North America supplied the telematic control units (TCU). It also provided a OneConnect cloud and managed the stolen vehicle tracking (SVT) solution, which would send the tamper notification trigger. IBM developed the IBM Maxwell Cloud Solution components of the device lifecycle management (DLCM) and process orchestration system. It also created a rule-based algorithm developed on the movement of the vehicle outside a defined geofence radius. Depending on the actual latitude and longitude received from Panasonic, the IBM Maxwell Cloud Solution would use this algorithm to detect any violation of the geofence radius-based rules and perform the necessary action as per the SVT process. IBM also created a repository that worked as a single source of truth. Solution Through Co-Creation The H-D Connect service introduced subscription-based cellular connectivity to equipped H-D motorcycles to keep riders connected to their motorcycle through their smartphone using the latest version of the H- D app (Figure 4). The H-D Connect service allows owners to connect remotely to their motorcycle to view critical vehicle health information. It also provides the owner with the comfort of remotely monitoring their motorcycle's security, including tamper alerts and stolen vehicle assistance, on the H-D app