MKT/421
Perceptual Maps in Marketing Simulation Situation Thorr Motorcycles, Inc. is a $5 billion company, which manufactures a wide range of motorcycles from 651cc to heavyweight range. Nevertheless, it produces more than 200,000 units per year (University of Phoenix, 2012). Thorr is a market leader in the industry controlling about 40% of the total market share. Its current success is subject to the its quality training and technical support provided to dealership. In addition, the Company provides customers with bike rentals and rider safety training as a focus to strengthen its customer service. Cruiser Thorr, heavily dominated by the later age freedom riders, has strengthened Thorr’s market image and brand recognition. Recently, the company has been losing valuable customers and this is following its failure to focus on product innovation that could keep them competitive in the industry. Through a survey and customer interaction at local dealerships, Thorr can obtain information from current owners and new buyers, on how to make products more attractive and make adjustments accordingly. Phase I The initial concern is on the decreasing sales of Thorr Motorcycle’s, Inc., leading product the CruiserThorr a 1500cc cruiser priced at $25,800. The reduced sales for the company calls for action in order to enhance its growth and development. Changing its current target market will see the company focus on the younger generation, with less disposable income and are shopping for the best motorcycle deal for the money. Nevertheless, Thorr must create a new marketing strategy to increase sales. Such strategies may include competitive strategies, communication strategies, positioning and market entry strategies. To illustrate the market position of CruiserThorr motorcycles a perceptual map will indicate positioning and will be based on four fundamental parameters. The selected fundamental factors are as follows: lifestyle reflection, price, quality engineering and offered services. Lifestyle image appeared as the most significant factor in mapping because motorcycles typically sell is subject to their design and image, versus their manufacture specifications. The quality and reliability in the production of motorcycle can provide creditability to the brand and create customer loyalty. Pricing is always a significant factor when considering the purchase of any product. In the case of motorcycles, customer image has more impact than pricing. Reduction of prices by the company could lead to possible loss in customer base with respect to their image. Support and services share a significant importance to each dealership in the company. Thorr can maintain an excellent customer service department at each dealership, by providing dealers with updated software, quality training and equipment. Phase II: This phase identifies Cruiser Thorr’s current market position that is deteriorating leading to fall in sales. There are two recommendations for the company with respect to this namely; repositioning of Cruiser Thorr or launching of a new motorcycle called R Roth. Phase II also illustrates the SWOT analysis and identifies current customer demands. The plan has also factored out each customer groups financial incomes. Customer preferences and age group data is very important for the company in its preparation to solicit the target market other than Cruiser Thorr. The selected target audience chosen is 25-35, and the product should closely conform to their inputs. Thorr has decided to launch a new motorcycle RRoth. $11,515,000 will be dedicated out of an allotted $13 million dollars to establish the marketing plan. While developing the plan, a centralized focus must remain on the new target market (young people) and their limited salaries. The new motorcycles will have a selected price between $13,000 and $15,000. Numerous advertising and promotional techniques will be used such as mega events like Daytona, celebrity endorsements and the use of the RRoth motorcycle in Hollywood movies. These selected advertising techniques are most often convenient and are common in venues involving the youth, which is the primary target market. Dealerships throughout the entire country will maintain an official website with high-resolution photos, information on the new product including various financing options. Thorr service centers will provide customization options and club memberships, based on the customer’s budget. As a result, the company will become more competitive in the motorcycle industry with these young riders and increase market position, thus enhancing the company’s growth and development (Wienclaw, 2009). Phase III: Phase III includes plotting of Cruiser Thorr based on market research. Characteristics of Cruiser Thorr compared to RRoth were plotted on perceptual map based on its attributes. A completed comprehensive survey from 350 people ages 25-55 commented on production of both Thorr motorcycles and each provided valuable feedback. Research for Cruiser Thorr indicated around 37% people planned to spend $13,000 to $15,000 on a motorcycle in near future, 57% people liked financial services, 41% indicated they liked customization options. This fulfilled not only those with limited income, but also those who had additional income for upgrades. Dealership training stood at 45%, and request for service enhancements measured 38% by those surveyed. Upon completion of the survey the data indicated the lifestyle image factor moved up to level 9 while price, quality engineering, and service offerings were changed to five, eight and seven respectively. This is a clear indication that Thorr Motorcycle is Inc., is proceeding in the right direction. Price attribute for RRoth motorcycle was placed at level 9 and lifestyle image at level 10. Quality engineering stood at 8 while cool was also given an 8. Results from survey show that Cool and Price parameters were placed at 8 and 8. As for lifestyle image and quality engineering, they required an amendment. Lifestyle image attribute was lowered to a 7 instead of already planned 9. This was adjusted based on the long existing high image of Thorr products. Quality engineering was also lowered at7 from 8 because, although customers rated it high, they had positive views about its fuel-efficient engine. Differentiation and Positioning Positioning and differentiation are marketing strategies required to enhance the success of a product. The products positioning can be accurate, but if the product is not differentiate from others in the market, then it cannot become a leader in that market place. Similarly, if product is well differentiated from others in the market, but not well positioned it is also risk failure. For a company planning to be a market leader then the focus should be on placing the product in the market at the right time and in a unique way (Wienclaw, 2009). The motorcycle companies’ quality has diminished over time and people don’t want to pay high prices for a low quality bike. The reputation and life style associated with the product has become obsolete. Generally, many customers of the Company have become unsatisfied by the company’s products and services. To reverse this effects the perceptual map was used focus on the lifestyle, price, services offered and the engineering quality. This mapping can play a vital role in improving the Company’s products and services image among its customers. Through repositioning and targeting a younger market with less income, gave the company a new revenue growth opportunity. Introduction of RRoth benefited the Company in several ways; the older aging customers remain loyal to Cruiser Thorrand and the new market rejuvenated the company by regaining profits. Thorr Motorcycle Inc. has been losing customers recently due to their failure to effect innovation strategies in their production that will see them come up with new ideas, which would make them survive the competition. Most of its products have become outdated thus do not look appealing to the customers. Effect of the Product Life Cycle on Thorr. CruiserThorr is seemingly leaving the mature riders choice and entering decline phase. RRoth is entering the introductory stage. Thorr has accepted positioning the company according to the lifecycle based on the data collected. Thorr made critical decision making geared towards the situation concerning both of its products. Marketing research played a role in assisting the company in decision making and designing perceptual maps. The data collected from these perceptual maps need to implemented immediately in order to bring a new product to a new target market. Thorr Motorcycle’s Inc., through a more refined marketing strategy based on market research, can re-establish the opportunity for profitability and success. Creation of a new marketing plan, research and conceptual maps, illustrates how products repositioning can attract new and existing target markets. These changes not only increase the overall image of the product, but also increase in future profits.
Reference
Wienclaw, R. A. (2009). Marketing Management -- Research Starters Business, 1-6. Retrieved from EBSCOhost.
