Perceptual Maps In Marketing
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Perceptual Maps in Marketing
Thorr Motorcycles is a company that manufactures 200,000 motorcycles a year. It also licenses T-shirts, shoes, leather goods, toys, and other consumer items. The company currently has a high-brand image manufacturing high-end motorcycles and owns approximately forty percent of market share. The challenge for Thorr is that the industry is growing, but sales of its high-end product are decreasing. The reason for this loss of market share is that the target customers of its high end product is growing older, and younger people do not identify with the brand image of Thorr. In addition, Thorr is a high product and younger people do not have the large disposable income necessary to support the brand.
Lifestyle image is an important attribute to Thorr Motorcycles, Inc. because it can influence customer to purchase a Cruiser Thorr due to what it represents. The perceptual map is a visual representation of a customer opinion of the brand. The Lifestyle Image that the Cruiser Thorr represents is freedom, masculinity, and mobility. With the decline of sales, Thorr Motorcycles will need to change the consumer image in order to bring profits to the Cruiser Thorr again. The simulation helped to construct and use a perceptual map in order to create an effective marketing plan for the motorcycle brand. With the use of a perceptual map, Thorr will be able to develop a visual representation that will act as a guide to assist the company in regaining their sales and their place in the market.
The first step in the simulation is to determine the market position of The Cruiser Thorr using a perceptual map. There are four parameters that must be selected in the simulation, and I chose Lifestyle Image, Product Design and Styling, Price, and Product Uniqueness. It appears that the size of the polygon is irrelevant because the most accurate choices were lifestyle image, service offerings, quality engineering, and price. My logic is the larger the polygon the bigger the market share. The logic according to the simulation is that the service is a way to keep loyal customers happy, and quality engineering is a necessity for a motorcycle product.
The second step in the simulation is to elect either launching a new product line or repositioning the Thorr brand. I chose to launch an entirely new product line. With the new product line, the pricing I chose will be $13,000 to $15,000 to target the younger crowd. Promotion will take place through Hollywood Films to target the younger generation. Place will be both the internet and the dealer showrooms. The Internet will allow for a greater opportunity for the product to be seen on a larger scale versus only having showroom viewings. The services lineup will include dealer training, customization options, and financial services. In providing financing options and increasing services, the organization will open doors for potential customers who may have felt that the Motorcycles were unaffordable. By providing finance options, the organization will also attract the younger people that has already shown interest in the Cruiser Thorr. This option also does not significantly raise expenditures.
The relationship between differentiation and positioning of products and services is that both relate to features of the product or service that is being offered. The repositioning of the product in the simulation was better than I expected. I had the understanding and knowledge that repositioning could help the product but in the simulation, when the product was repositioned, it was able to take off in a very successful manner. I believe that because the product was being introduced to a younger audience, it was a new product for that target audience.
The process of creating the marketing plan will give the company the tools necessary in differentiation and positioning their product, which can increase sales and gives the product have a new image. These tools also illustrates the impact that the product life cycle can have on the success of