Perceptutal_Maps

Shannan Coleman February 20, 2012 Perceptual Maps in Marketing Stephanie Jensen Perceptual Maps in Marketing Thorr Motorcycles Incorporated is a lucrative business that despite downturn in sales and customer satisfaction is a $5 billion company that sells various models of motorcycles. Although, Thorr offers high brand images such as the CruiserThorr power cruiser the company still sees a decline in sales. The decline in sales is attributed to the target age of the customer who purchases the cruiser as a symbol of their lifestyle. To reverse the decline in sales Thorr will need to develop a marketing plan using the perceptual map that differentiates from competitors, and clearly position the company (University of Phoenix, 2012). Phase One In the simulation provide by University of Phoenix (2012), a perceptual map is a visual representation of what the customer thinks of a brand.” Possessing numerous axes can represent the characteristics of a product and illustrate the opinions of customers from the advertisement of the company. The perceptual map can also compare the product’s position with competing brands as well as associate the information with sales amounts to gather the market strengths. The first step for CruiserThorr motorcycle is to select four essential parameters that will provide the maximum potential for the CruiserThorr and that will be applicable to the motorcycle industry. Researchers asked 320 motorcycle riders between the ages 20 to 50 what each of them thought was the CruiserThorr’s strengths in comparison to two competitors as product design and styling, quality engineering, lifestyle image, and product uniqueness. Service offerings, engine capacity, safety, image, and price are considered the lowest parameter ratings. To plot the perceptual map we look at the lifestyle image, service offerings, price, and quality engineering. The simulation analysis states that these parameters are a good choice for the following reasons: Lifestyle image, engine capacity, product design, and styling, and product uniqueness and similar features are the most significant role in the motorcycle trade and they represent the image of a brand. These characteristics are highly elevated on the perceptual map, which also indicates the product image is high. This would be the strongest attribute because it convinces the customer to purchase the motorcycle because of its images instead of its operational attributes. To ensure loyalty among customers, dealers, and distributors the second parameter should be service offerings. Providing services like training for motorcycle maintenance, financial services, club memberships, support to motorcycle owner groups, and customization will enhance customer loyalty. Sourcing the best material to superior styling to high quality production are all aspects of quality engineering of the product. To maintain a high brand image this attribute would be one that the motorcycle brand should not be without. Although lifestyle image would be the strongest attribute the most important would be price because price would be the driving decision in the majority of the cases. Even though younger customers would prefer for the cost of the motorcycle to be low, they also would like the image of the brand to be high. Normally, without adversely affecting the brand image the price of the product cannot be decreased. Phase Two According to University of Phoenix simulation (2011) perceptual map, CruiserThorr’s position in the market is not improving sales. To maintain Thorr’s current position strategy, enhance it, or even change the position completely Thorr must make a decision. One other option would be to launch a new motorcycle that would target the younger customer. Before a decision is made research on consumer preferences and developing a SWOTT analysis is needed. Results of the research was categorized by age groups and income levels, revealed the customers preferences as well as the older groups to desire a high lifestyle image and the younger groups preference to ride on a motorcycle that has cool image. The higher income groups have a couple of attributes that they consider important such as lifestyle image and quality engineering when owning a motorcycle. Customers who make less than $50,000 consider price as a significant factor and often opt for financing as an option for purchasing a motorcycle. The SWOTT analysis performed shows the opportunities, threats, strengths, and weaknesses of Thorr’s. The opportunities consist of financing options, better pricing options, and an increase in demand for customization, new fuel efficient engines, and a larger opportunity for antique collectors. On the other hand there are threats such as unemployment, if unemployment continues to increase; the sales of motorcycles will decline. Unemployment is not the only threat that can affect Thorr’s, other threats such as changes in motorcycle safety regulations, employee dissatisfaction, and an increase in less expensive motorcycles can affect Thorr’s. The strengths would include being the leader in the market, an up-market image, brand recognition, and a Riders Club throughout the United States and Europe. Finally the weakness of Thorr’s would be higher prices, limited service offerings, no appeal among young customers, and a diminishing target of customers. Based on the SWOTT analysis and research on a customer’s preference the marketing strategy decision made would be to reposition CruiserThorr by providing more financing options and increasing the services offered. Decisions to decrease the price of the motorcycle could ruin Thorr’s image mainly because 9 out of 10 customers would automatically relate a decrease in quality if the price was lowered. Maintaining the price would affect the other decisions made in the marketing mix, therefore the decisions made could have taken a better route than what was originally planned out. If Thorr’s wants to maintain the price of the motorcycle they should use another choice for the marketing mix such as publicizing. Thorr could use Hollywood films such as science-fiction based films or films that have a technological storyline to market Thorr’s product line. As well as use the Internet to promote the motorcycle, offer proper training to dealers, enhance their customization options, and finally offer better financing plans to younger clientele. Phase Three Thorr implemented the marketing plan over a year ago and it has been successful since it was implemented and requiring the perceptual map has helped the company. The perceptual map has parameters values that are in line with the optimal parameter values assigned by the simulation; these values are lifestyle image (9), quality engineering (8), service offerings (7), and price (5). The highest parameter to maintain would be lifestyle image, Thorr maintained this image and customers consider the motorcycle a status symbol. According to market research the data shows that many customers feel that the engine of the CruiserThorr is the best available. Conclusion For a company to succeed they must bear in mind that marketing is crucial, and the company must also differentiate themselves from their competitors to gain an advantage. Perceptual maps are a visual depiction of a customer’ opinions of a product which will benefit a company when preparing an effective marketing mix for improving and maintaining business. Marketing research will provide Thorr Motorcycle the necessary data that will help identify the critical parameters applicable to the motorcycle industry. The perceptual map CruiserThorr created was created with parameters for the purpose of improving the companies declining sales. Based on the information in the perceptual map and the SWOTT analysis, CruiserThorr decided to reposition the company, decrease the prices of the motorcycles, provide better financing options, and increase the services provided by the company. One year after CrusierThorr implemented the perceptual map the marketing plan proved to be successful and it shows the lifestyle image and quality engineering continues to be positive attributes for the company. Reference: University of Phoenix. (2012). Using perceptual maps in marketing [Multimedia]. Retrieved from University of Phoenix, MKT421 website.