Having a strategic marketing plan needs direct input to insure the success that a product or service will have growth in the market. Perceptual mapping is one of the best ways to map out the product’s life cycle and the impact that it will have in the market. Perceptual maps are illustrations of data that have been compiled from the markets rating scales, and to develop a correct perceptual map these scales have to be fundamentally sound for the product and the consumers. When the planning for a perceptual map is done, the planners can see the customer and the competitor on the same scale, which will help to create a marketing path that is successful to that product. Thunder RollsThorr Motorcycles is a company that has a net worth of $5 billion dollars, which produces high-end motorcycles and accessories. They are in need of a new marketing strategy and will be introducing a perceptual mapping graph to help do so.
RollsThorr is currently producing more than 200,000 luxury motorcycles a year. The highest selling motorcycle is their 651cc bike called the CrusierThorr. This bike owns 40 percent of the market share for motorcycles in its class. Due to a huge demographic change RollsThorr has concerns on the decline of sales for the bike. The demographic swing has shifted to a younger population, who are not interested in the same lifestyle that the CrusierThorr has been symbolizing for years. Having a younger generation interested in the market, the cost of the CrusierThorr has provided a problem in capturing the young market. This market now wants a less expensive motorcycle that will suit a young hip lifestyle. Therefore the marketing team for RollsThorr has developed a perceptual map to explain the markets wants and needs, and determine where the company should venture to increase the declining sales.
In the first phase of developing the perceptual map, four parameters for the CrusierThorr motorcycle needs to be chosen. The four that were chosen were Lifestyle, Quality Engineering, Price and Services. Lifestyle is crucial to any motorcycle purchase because owning a motorcycle is more of a statement on who a person is as a consumer. Owning a motorcycle tends to portray the meaning of living on the edge with less boundaries. Capturing that image or lifestyle of the consumer with the product will generate brand loyalty. Quality engineering will stand out in closing on a sale. The consumer will have a depiction of a product that they can trust and will be intact and running in the future. Since the demographic did change for the CrusierThorr, price was chosen because RollsThorr needs to capture this market. Being in a tight economy everyone is conscious about the price of any item that they are purchasing. On the other hand price is sometimes perceived as a status symbol, and lowering price may hurt the reputation of the CrusierThorr. Service was chosen because this will build the biggest brand loyalty. With RollsThorr providing impeccable customer service, they are creating the best way to keep loyal customers, distributers and dealers.
The second phase of the simulation was asking if RollsThorr should reposition their number one bike, CrusierThorr, against its competitors or introduce a new motorcycle into the market, called the RRoth. Repositioning the CrusierThorr would entail reducing the cost and rethinking the marketing approach to the market. This could upset the customers that rely on the higher status symbol of the CrusierThorr, and decrease brand loyalty. On the other hand introducing a new motorcycle would maintain the CursierThorr’s elite statues by also offering a motorcycle to the new demographic market while keeping the brand name, RollsThorrr, which the industry has embraced. Introducing a new model into the market is the best decision for RollsThorr to make. This new model RRoth will be offered for $13,000 to $15,000 depending on upgrades.
RollsThorr has budgeted $13,000 dollars to...
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