The Situation:
Clearly, lifestyle image is one of the important attributes of Thorr’s Motorcycles, Inc. as it has the ability to influence customers towards purchasing a Cruiser Thorr because it represents quality and status. This perceptual map is used as a representation (visual) of opinion of the brand based on the customer. The Lifestyle image, which is represented by the Cruiser Thorr, is mobility, masculinity, and freedom. However, Thorr's motorcycles were positioned in the market as high-priced products that did not fit use by the youngsters. Thor also began losing its position in the market position as the price remained too high and at the same time, the life style image was an indication of the older generation (Dibb & Simkin, 2008). With a considerable fall in sales, Thorr’s Motorcycles required to alter the image projected to consumers in its target market as a way of spurring sales, which would induce profitability of Cruiser Thorr once more. Such a simulation facilitated the construction and usage of perceptual maps that create effective marketing plans for the brand using a market-repositioning plan.
A foremost situation based on the simulation in which there is a decline in Cruiser Thorr’s profit is the technique for the formation of a customer base, which will change Cruiser Thorr position against the dispatch of new motorcycle products. This will also focus on understanding various findings of the market study in planning the brand attributes of Cruiser Thorr with reference to a perceptual map. Various aspects which Thorr develops to thoroughly capitalize on as a way of engineering quality within the organization is through its product design, design of the engine, style of the product, the unique qualities and the capacity of the manufacturing process (Majumdar, 2007). In this case, quality engineering will reflect on critical quality aspects for the organization. In the event that the organization had and maintained high product quality, the organization bears much credibility. A commodity’s price is also a very important consideration to many consumers. Products developed by Thorr are part of the extremely expensive motorcycles in the motorcycle industry. Most of the customers of Thorr are willing to issue payments for such premium price as a way of having the status of owning a motorcycle made by Thorr. The company came to a realization that price is one of the main factors that influence purchasing decisions among the younger customers without a disposable income for the high priced motorcycles.
Recommended Solutions:
Quality Engineering, Cost, and Services are part of my suggestions to formulating the company performance once more. Through analysis, it is clear that Quality engineering will be impactful as they encompass all characteristics of the desired products including capacity, style and design of their performance. Quality Engineering is preferred in delivering the customer specification especially across the elements’ development. Quality is one of the critical aspects for organizations as it is one of the things that creditability is dependent on (Dibb & Simkin, 2008). Price is also an area of focus as it is one of the customers’ concerns. Price remains the major aspect in decision making to purchase the product. High prices are linked to the high quality perceptions of the product and therefore, lower prices will mean lower product quality. The other item in this category is service as good customer service generates customer loyalty and happiness.
The promotional strategies, which I would recommend, were presenting free test rides, putting in order parties for Cruiser Thorr owners, contracting celebrity endorsements as well as supplying products giveaways. With such planned parties, the trade relationships will provide an aspect of belonging. Through hiring celebrities for endorsements, the organization will raise the existing graphic imaging by developing a name, which is attached to its products. Contributing merchandise giveaways and free test rides is also a way through which the association promotes the performance of Cruiser Thorr. The areas which the business markets the Cruiser Thorr could be on Manufacturer's Web Site (the Internet) as well as general sellers. More importantly, the World Wide Web allows the availability of better chances for product diversification in noticing bigger levels against the showroom viewings (Majumdar, 2007). Such service promotions, which will be included in the advertising chart, will include financial services and customization alternatives. Working around a financial budget cut of $13,000, the alternative I recommend will make the marketing strategy remain within the expenditures of around $11,416. The other situation on a perceptual map involved the interpretation of market research findings in plotting Cruiser Thorr's brand attributes.
Thorr Motorcycles is an illustration of superiority and power. CruiserThorr, its chief product, reflects a development of a more effective marketing mix under careful positioning. In this simulation, the sales of CruiserThorr are declining for reasons such as price, competition, and service. It is for this reason that Thorr Motorcycles need to assess its marketing mix as well as determine the appropriate coursed of action that will actually re-establish CruiserThorr towards a comprehensive and competitive industry position. The alternatives presented will seek to reposition the CruiserThorr and introduce new motorcycles. Through employing new marketing strategies, the organization’s responsibility will to develop increasingly a detailed marketing mix based on the assessment of perceptual maps and market research (Majumdar, 2007).
The other simulation phase will require an analysis in relation to whether or not the establishment of an advertising plan will entail effective repositioning of Cruiser Thorr or rather launching new motorcycle products that suit the market. The top decisions for the organization will be to reposition the status of Cruiser Thorr. In addition, the placement strategy I would propose in this case is to boost services and present financing solutions. Through the provision of financing alternatives as well as rising Thorr Motorcycles services, it will be in an ideal position to open doors for prospect consumers who could be feeling that Cruiser Thorr was way out of their reach.
Similarly, through the provision of finance selections, the company will attract younger viewers who could have earlier indicated interest for the Cruiser Thorr. Such an alternative will not raise expenditures considerably. Immediately after resulting to increase services and present financing alternatives, I would recommend not expanding the implementation of further price diversification of the motorcycle because various customers feel that its prices are already at an alarm. This way, increasing them will further drive away potential customers. The creation of a lifestyle around the product design continues to create a profound situation, as customers will be tempted to make purchases based on acquiring a lifestyle, an image and satisfying the psychological need for acceptance (belonging to a group).
One of the attributes, which comprise lifestyle, is choosing cool. Therefore, choosing to use the organization’s services will provide additional unique dimensions for arriving at a reposition for Cruiser Thorr (Lilien & Rangaswamy, 2004). The added functionality dimensions that will cover the appropriate mapping attributes seek to provide a more solid foundation for decision making and targeting new market segments (the younger generation) with an exciting and affordable machine. This will have reinvented a lifestyle and at the same time, continued the dedication to quality among the featured expanded services such as maintenance training, club ride rallies, and finance options that will serve as links to establishing loyalty among distributors, dealers, and customers (Groucutt, Leadley & Forsyth, 2004).
Conclusion:
Management suitably transformed a situation that was previously problematic into a more profound opportunity. This has been achieved in the creation of new product lines that continued to provide a marketing mix differentiation. This mix has a greater focus on affordability, enhanced services, financing options, and refined engine technologies that collectively seek to create ultimate interest in product brands, which were rapidly becoming popular for reinvented lifestyles (image of cool). Market capitalization on research continues to pave the way a given level of the younger generation in opting for high-end Cruiser Thorr that were previously offered together with attractive insurance and financing plans. The marketing mix combined in order to infuse sales increment for Cruiser Thorr, which is a product in its last stages of the product life cycle (Lamb, Hair & McDaniel, 2011). It also introduces a more innovative product, which established itself as a famous lifestyle brand that was at the start of its product life cycle.
References:
Dibb S., Simkin L., (2008) Marketing Planning: A Workbook for Marketing Managers. New York: Cengage Learning EMEA
Groucutt J., Leadley P., Forsyth P., (2004) Marketing: Essential Principles, New Realities. New York: Kogan Page Publishers
Lamb C., Hair J., McDaniel C., (2011) Essentials of Marketing. New York: Cengage Learning
Lilien G., Rangaswamy A., (2004) Marketing Engineering: Computer-assisted Marketing Analysis and Planning. New York: Trafford
Majumdar R., (2007) Marketing Research - Text, Applications and Case Studies. New York: New Age International
