Perceptual Maps Marketing Simulation
July 24, 2013
Thorr Motorcycles: Perceptual Maps Marketing Simulation
Producing more than 200,000 motorcycles a year, Thorr Motorcycles, Inc. is a successful manufacturing company. Thorr also offers services such as dealer training, packaged software, rider training, and rentals. Thorr’s holds a highly respected brand image, and holds 40% of the market. CruiserThorr has an image of “masculinity, mobility, and freedom.” Thorr has had a decline in sales. Thorr will use feedback from their customer’s views on their line of motorcycles. To increase sales, Thorr will develop a plant to change the perception of their motorcycle line with their target market. Phase I
CruiserThorr recognizes the decline in sales. “The motorcycle industry is growing annually, but sales of Thorr Motorcycle’s existing product CruiserThorr (a 1500cc power cruiser priced at $25,800) are deceasing” (University of Phoenix, 2013). Thorr recognized that this is a result of the age of the target market. The older age of the targeted consumers does not care about the lifestyle a CruiserThorr portrays. The younger consumers who generally have less spending money would like to see a line of less expensive motorcycles. Thorr needs a new marketing strategy to turn the declining sales into the opposite direction. The simulation asked students to obtain the market position of CruiserThorr using a perceptual map. Students had to select four fundamental parameters relevant to the industry and that rewarded the highest potential for CruiserThorr.
The four fundamental parameters selected were Lifestyle Image, Price, Quality Engineering, and Service Offerings. Lifestyle Image, easily considered the most important role in the production of motorcycles, and is the best selection for the perceptual map. This is a very dominant attribute because the image will sway consumers into purchasing the product rather than the other functional attributes. Quality engineering covers aspects of the motorcycle and without quality engineering the company cannot keep its reputable image. Price compels consumers to purchase the product or not. If the motorcycle has a high price it is directly proportional to the high image the motorcycle has. One drawback about image is that when prices are lowered the company runs the risk of lowering the image. Service offerings are important as well because the company can ensure customer loyalty and an exceptional way to keep dealers and distributors happy. In phase I, the recommendations provided returned a positive outcome, and a successful decision. Phase II: Revving up the Market
Phase II informs market position CruiserThorr’s has, and that Thorr has not increased sales. Thorr has to make a decision if they will reposition CruiserThorr or launch a new motorcycle, RRoth. Phase II provided a SWOT analysis, consumer preferences, income group, and financing requirements. The most valuable information used to make the decision was based on the consumer preferences. Becaues Thorr is looking to capture a younger age group between 25 to 35, a focus of this age range preferences would benefit the marketing plan.
Launching RRoth is the marketing strategy chosen. The budget to implement the marketing strategy is $13,000,000. Only $12,649,000 of the original budget was spent on the new plan. The price range selected was $13,000 to $15,000 so that it will be priced effectively to target the younger consumers. Promote RRoth by hiring celebrity endorsements, publicize through Hollywood films, sponsoring events such as Daytona, and offer insurance and protection plans. Promoting this product in films is a sure way of reaching countless consumers in the new targeted age bracket. Placement of the RRoth will be through dealers and the Manufacturer’s website via the Internet. The Internet will allow consumers the best opportunity to view the product and its...
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