In its May issue, Consumer Reports dives into the topic of motorcycle reliability, and confirms what many of us already knew: bikes from BMW and Harley-Davidson were reported to be less reliable than those from the Japanese OEMs.

Interestingly enough however, BMW and Harley-Davidson owners were also far more likely to make a repeat-purchase with their chosen brand than were owners of Japanese motorcycles, sans those of Hondas, which scored just slightly lower than BMW and Harley-Davidson on customer retention.

Looking at customer complaints of “major” mechanical problems from the last four years, the report from over 4,000 motorcycle owners confirms the high-water mark set by the Japanese OEMs on motorcycle reliability, but also shows the power of good branding as it translates into brand loyalty and customer retention.

While Kawasaki, Suzuki, and Yamaha may be winning the minds of riders with their production prowess, they are losing the hearts of consumers, which is interesting since any salesman will tell you it is easier to keep a current customer, than to make a new one.

Fifteen years ago, I fell in love with the Suzuki Hayabusa. A courtship that started well-ahead of my formal indoctrination to two-wheels, the Hayabusa was the capstone of motorcycle performance in my youthful eyes. I lusted after its sleek wind-tunnel tuned lines, and marveled at its outright speed, which at its debut, trumped everything else on the market. Approaching the 200 mph mark with their designs, Japan sold us on a “gentleman’s agreement” between the factories to govern their machines to 186 mph — I call it the pinnacle of technical collusion of the first degree.

It is so much easier to compete against another manufacturer when you don’t actually have to compete against them. The Suzuki Hayabusa could co-exist with the Honda CBR1100XX and Kawasaki ZX-12R in bubble that assured no one bike, on paper, could trump the other, after all…they all went 186 mph in the newly declared speed war. It is debatable whether this self-governing measure by the Japanese OEMs avoided a nanny state imposition of laws and regulations onto the motorcycle industry, but there can be no debate about the stagnation the gentleman’s agreement caused in the marketplace.

Once designated as being hyperbikes, a term that gave a nod to the performance specifications being beyond the superbikes found on the race track, we have watched the cessation of the Honda Super Blackbird (2003 in the USA, 2007 worldwide), and witnessed the Hayabusa and ZX-12R, later the Kawasaki ZX-14R, morph into capital “s” sport-tourers that are a far cry from their original intents.

Whether you caste the current Suzuki Hayabusa as the second-generation of the machine, or simply a massaged version of the first-generation GSX-1300R, it has stood motionless for far too long since its beginnings 15 years ago, and revision in 2008. It is time for the Hayabusa to return to its hyperbike roots, and once again captivate the imagination of little boys, and grown men, with what its possible on two wheels.

Slap on your skinny jeans, and get on a hog, because Harley-Davidson is pitching motorcycles to America’s favorite disgruntled demographic: the hipster. For pursuing today’s young and ironically image-oriented subculture, you can’t really fault a company like Harley-Davidson for this move, seeing as it markets its brand around this notion of conformity through non-conformity.

Copying the vintage art house film style of that we see so often on Vimeo (frame borders, sepia tones, and all), I will steal a line from AutoBlog‘s Jonathon Ramsey and say that Harley-Davidson has nailed the Instagram style on its head with this one…right down to its guitar-string audio track and percolating coffee pot cameo appearance.

Making effective market communications in the motorcycle industry should be a relatively straight-forward and easy task. After all, motorcycles in North America and Europe have a strong personal component that revolves around self-expression and a rider personal identity. Making things easier, the motorcycle industry is littered with enthusiasts who themselves ride on a daily basis, and should understand this concept first-hand.

The idea that an ad or campaign should reach out and grab the intended consumer is not a novel concept, and motorcycle marketing professionals have their job simplified since they need only to develop and publish creative that would speak to them personally, in order to be successful. For whatever reason though, motorcycle industry marketers, by-in-large, were absent the day they taught marketing in business school…and it shows.

It is a subject I rail on about far too often, probably because it just simply baffles me how it occurs in the first place. How a motorcycle enthusiast fails to connect with people just like himself or herself boggles my mind, and yet it routinely happens in the motorcycle industry. However, every now and then, an OEM puts together something that renews my faith in the establishment, and for a split-second I have a vision that this whole two-wheeled thing isn’t going to hell in a hand basket. Such is the case with this promo video done by BMW TV.

The concept that motorcyclists define themselves by the motorcycles that they ride seems like a fairly obvious notion to us, but you wouldn’t know it by most of the advertisements you currently see in the motorcycle industry. Some brands get the whole lifestyle approach to motorcycle marketing, with Harley-Davidson & Ducati being the two prime examples in the industry of how a motorcycle brand can mean more than just traveling from Point A to Point B.

An integral component to demand generation, the business side of this kind of branding is where marketing becomes less objective and more subjective. To be frank, the reason we have a scarcity of good ad campaigns in the motorcycle industry is because few motorcycle companies are a) willing to recognize the importance of lifestyle branding (for some, it’s a four-letter word), b) willing to acknowledge the craftsmanship that is involved with that kind of marketing campaign (or worse, recognize it if they saw it), and c) are willing to pay for marketing managers with that skill set (they aren’t cheap).

Unsurprisingly, the brands that do see the value in running these kind of campaigns are seeing it payoff in dividends. Have you heard of Russian sidecar maker Ural? How about MV Agusta? Yeah, we thought so. But yet, here are two companies that continually struggle to reach five-digit unit volume figures, yet have a cult following of owners and non-owners alike. I’ve waxed on about how larger OEMs like Honda need to create a more personal link with their product to consumers, so I won’t get into it again.

Instead, after jump find a small selection of Royal Enfield ads from the company’s Tripping campaign. Someone should have checked the international usage of the slogan “tripping ever since” — but that oversight aside, it is a pretty flawlessly executed demand generation campaign. Enjoy, and thanks for the tip 梁聰!

Electric motorcycles: love them or hate them, our two-wheeled future is here my riding brethren. I can hear the collective groan of petrol-heads as this subject is broached though. Yes, it is hard to get excited about electric motorcycles in their current state, and why should you be excited about them? I may not blindly gush about electrics as much as the Kool-aid drinking EV crowd does, but I’m decisively on the pro-electric side of the debate. Yet, even I have a hard time looking at what is available on the market, and imagining a scenario where my hard-earned blogging dollars would grab an electric motorcycle over its internal combustion counterpart.

Part of the reason is that there is no real appealing reason to go electric at this point in time. Oh sure, you can do your part to save the environment, though the net-effect with our coal-dependent energy infrastructure will still play a tremendous detriment on the reality of one-less petrol-burning motorcycle on the road. That being said, electricity out of a home outlet is super-cheap, out of someone else’s outlet it is even cheaper, and the “where our power comes from” debate really should be looked at as separate from the green-vehicle debate. Of course, the break-even analysis on the total cost of owning a 250cc motorcycle compared to even the most robust electric motorcycle is still fairly dubious — and let’s be honest, grouping the current offering of electric motorcycles in with a 250cc commuter bike is probably a disservice to the Honda CBR250R and Kawasaki Ninja 250R’s of the world.

So with all the Negative Nancy about electrics, why am I still talking about them? Because there is tremendous potential with a fully digital powertrain, that’s why. Forget the CD vs. tape cassette analogy, this is a Pandora vs. LP shift in technology — but we just don’t have a killer app yet for electric motorcycles. Defined as “the concept that a singular feature is so prolific that its proves the core value of a larger technological system, often driving consumers to make a purchasing decision on the product or system that highlights the feature,” it is clear that electric motorcycles have yet to define the advantage they represent to motorcyclists — not because there is no value in the system, but because electric motorcycle manufacturers have failed to provide the killer app to their core technology.

As it stands now, electric motorcycles are basically conventional motorcycles with batteries and motors that replace fuel tanks and engines. It is the same basic offering that we have had since the turn of the century, except with three times the cost, forty times the refuel time, and a quarter of the range. While the big hold-up for electrics, battery technology, is still advancing rapidly, at the end of the day consumers are still be making apples-to-apples comparisons between internal combustion and electric motorcycles because only the most basic elements of this new technology is being offered by electric OEMs (i.e. getting you from Point A to Point B).

There is a tremendous amount at stake for electric motorcycle OEMs beyond just the basics of the market status quo, as the first electric motorcycle OEM that figures out how to deliver a killer app to the electric motorcycle space, is going to be the first electric motorcycle company to find real traction with the born-on-gasoline motorcycle riding masses. Progressing from immediate needs to long-term goals, I have compiled a roadmap of four killer apps that the electric motorcycle space needs to bring to market. Each killer app builds off the next, and the whole exercise concludes on what I believe is the most important idea in motorcycling. Now, who is going to be the first to make these ideas a reality?

Regular readers of Asphalt & Rubber will have noticed by now that I like to talk about what is going on with motorcycling in emerging markets like India, Southeast Asia, Brazil, etc. The fact of the matter is that it is these markets, not North America or Europe, that are going to serve as the future for the motorcycle industry, and the sooner us westerners get used to that idea, the better. For an industry built around and defined by the rebellious archetypes portrayed by James Dean, Marlon Brando, and Steve McQueen, the reality is that motorcyclists as a whole are conservative by nature, and resistant to change…especially in the United States.

We like our bikes loud, our helmets off, and bikes built by real blue-collar ‘mericans. Our skin prickles at the thought of manufacturing outside the borders of our blessed Union, and every time a company opens a factory in India, Southeast Asia, or South America, we talk about the outsourcing of American labor, the downfall of our economy, or something equally hyperbolic.

This has been the same broken record that has been played for the better part of the past 100 years, and has re-manifests itself each decade to address the next perceived threat to our domestic economy. While there is much to say about the shifting of America’s GDP from manufacturing to service industries, the real germane subject for discussion here centers around the idea that all too often Chicken Little rears his head when an American company opens a factory outside of the United States.

Such is the case with Harley-Davidson, which setup manufacturing in India back in 2011. Contrary to belief that the sky was falling, the Bar & Shield brand was not getting ready to massively outsource its production abroad (though it was heavily re-negotiating with its unionized labor force), but instead very deliberately and wisely chose to bypass India’s extraordinarily high tariffs by building and assembling its Indian market bikes locally. This move allowed Harley-Davidson to competitively and reasonably price its motorcycle in the Indian market, which in turn helped the brand expand its presence in one of the largest motorcycle markets in the world.

While this plan so far has proved to be fruitful for Harley-Davidson, the recent news that Harley Davidson India CEO Anoop Prakash has confirmed that H-D will not be making a sub-800cc bike specifically for the Indian market shows a misstep for Harley-Davidson with its international strategy, especially as it pertains to the major growth markets for motorcycling.

Every year Interbrand releases a list of the Top 100 global brands – ranking each company on its brand value and then assigning a dollar amount to that value. As such over the years, the Interbrand 100 has become the de facto metric on the strength of a company’s brand. For some time Harley-Davidson has been a stalwart of the Interbrand 100, with the Bar & Shield brand regularly getting the nod from the consultancy’s specialists — after all, how many brands are responsible for enthusiasts tattooing its logo on their body? However the past few years have seen a worrisome trend, as slowly Harley-Davidson has fallen farther and farther down the Interbrand 100 rankings.

BMW Motorrad crushed it last year by posting its best sales year ever, and finishing in sales 6.4% over 2010. With the United States being one of BMW’s largest motorcycle markets, it comes as no surprise then that the German brand posted strong sales here in the US. Up 7.4% over last year, BMW Motorrad USA continues to weather the rough economy for the Bavarians, which is perhaps unsurprising considering how zie Germans have faired the past few years.

What is surprising though is which model topped BMW’s sales sheets, and in case you are blind and didn’t see this story’s headline, it was not the venerable GS. Taking the superbike fight straight to the Japan’s backyard, the BMW S1000RR again dominated sport bike sales again in 2011, and was BMW’s top-selling model across its whole motorcycle line-up (I’d love to see the profits per model on this though). Proof that when German engineering is coupled with Japanese pricing a consumer hit is born, the S1000RR should continue to be a potent bike in 2012, as BMW Motorrad has given the liter bike a mild update for its third year of production.

Talking to a colleague the other day, we came to a frank discussion about how the European motorcycle brands weathered the recession better when compared to their Japanese counterparts. While there are many factors at play in this statement, there is at least a component of truth to the idea that strong brand integration helped spur the Europeans into setting record months, quarters, and years during a global economic downturn, while companies like Honda, Kawasaki, Suzuki, and Yamaha saw their businesses virtually collapse.

It is not that the Japanese manufacturers don’t have strong brands, it is just that their brands stand for something fundamentally different from those being forged by the Europeans. While companies like Ducati, KTM, and Triumph are building entire communities and lifestyles around their motorcycles (hat tip to Harley-Davidson for showing them how), the Japanese continue to hang their hats on the attributes of their products. Well-engineered, bulletproof, and relatively cheap, Japanese motorcycles tick all the right boxes when one is objectively measuring a motorcycle, but they are sufficiently lacking when it comes to creating lasting ties to their owners.