Thorr_Motocycles

Using Perceptual Maps in Marketing - Thorr Motorcycles Inc Using Perceptual Maps in Marketing - Thorr Motorcycles Inc Thorr Motorcycles Inc is a company that manufactures variety of motorcycles. Company also holds license to sell T-shirts, motorcycle shoes, small leather goods, toys, and other customer goods. Company also provides numerous services that include dealer training, dealer software, motorcycle rental, and rider training. Company holds high brand image manufacturing high end motorcycles. Currently company controls approximately 40% of market share (Apollo Group, Inc, 2004). Thorr Motorcycles, Inc is experiencing decrease in sales of its high-end product, Cruiser Thorr. Basis of the decrease in sales is in changes in customer behavior. The target customers of the high-end products are growing older, and younger customers do not recognize Thorr Motorcycles as brand with traditions. In addition, Thorr’s Motorcycle is does not fit younger customer’s budget. Thorr Motorcycle Inc goal is to maintain the lifestyle image, and influence the customers to purchase a company’s flag product, the Cruiser Thorr. With the intention of regaining company market share and company’s image, Thorr Motorcycle Inc will develop a visual presentation that will plot company brands attributes on a perceptual map to determine how to proceed and bust sales. Perceptual Map is “a marketing research technique in which consumer’s views about a product are traced or plotted (mapped) on a chart. Respondents are asked questions about their experience with the product in terms of its performance, packaging, price, size, etc. Answers are transferred to a chart (perceptual map) using a suitable scale and the results are employed in improving the product or in developing a new one www.BusinessDictionary.com (2010). Lifestyle of Cruiser Thorr represents freedom, masculinity, and mobility. Thorr Motorcycles Inc needs to determine the market position of the Cruiser Thorr. Company needs to concentrate of four fundamental parameters which are relevant to the motorcycle industry and will reflect the highest potential for Cruiser Thorr. Company has decided to reformulate following areas: service, lifestyle image, price, product design. Service offering ensures loyalty among customers, dealers, and , distributors. Customer loyalty is greatly enhanced by providing services like club membership, training, maintenance, financial services. Good after sales services reflects on the quality of the product and image the company portrays. Quality Engineering covers all the aspects of manufacturing from sourcing the best materials to high quality production and superior styling. By maintain high quality products, company builds its credibility among customers. Price is one the most important factors that drives decision making before purchase. Younger customers prefer less expensive product that fits their budgets. However, high price directly relates to the quality of the product, therefore, lower price means low brand image. Lifestyle image reflects customer’s opinion about the brand. It reflects customer’s manner of living that reflects the customer’s values and attitudes. The image is conditioned by the manner in which the company advertises and promotes the product. The Second stage of Thorr Motorcycles Inc of the perpetual mapping process is to determine the optimum marketing strategy. Marketing strategy would include either launching new product line the RRoth, or reposition the Cruiser Thorr. Company has decided to reposition Cruiser Thorr’s. Positioning strategy is “an effort to influence consumer perception of brand or product relative to the perception of competing brands or products” www.BusinessDictionary.com (2010). The positioning strategy that will improve company image and posture is to increase service and provide special financing. Special financing options will allow company to attract more customers by making customers believe that Cruise Thorr is more affordable. The finance options will also draw younger customers who have show interest in the Cruiser Thorr without significantly raise expenditures. Promotions are another part of marketing strategy that needs to be repositioned. Promotions will include Hollywood production that will target the younger customers. Hollywood productions will be available online and at the dealer’s showrooms. Online availability will allow better coverage and also more recipients. Online promotions give company an opportunity to brag about its product on large scale and potentially reaching many more customers than just in the show room. On field promotions will target existing customers and prospect customers as well. Thorr Motorcycles Inc will organize parties, where free test rides, contract celebrities’ endorsements and merchandise giveaways will take place. Training to dealers is an important part of promotion strategy. Dealers interact directly with customers. Therefore, more qualified and professional personal at service and dealer level will build a bond between customer and manufacture. Perceptual map plotting last step is based on data research analysis. Customer’s responses have influenced plotting on perceptual map. Lifestyle image was assigned nine. Market research has indicated that customers have appreciated the service that has been provided and it is considered as a status symbol. Quality Engineering was assigned a value of eight. Customers have indicated that Cruiser Thorr engine is top of the line. Price was assigned a value of five. Introduction of financial services and special financial options will attract wider range of customers, and will also expend a customer’s income target range. Services were assigned a value of seven. Customer research indicates that the services were not adequate. Therefore, company has expended a range of services including dealer training, financial services. The relationship between differentiation and positioning of products and services are that both relate to features of the product and services that are offered. The repositioning of the product will allow the company to increase the sales and regain its position in the market. The challenging part of repositioning of the product is pinpointing the product and services that will benefit the company and continue growth. Thorr Motorcycles Inc needs to attract younger customers to its product. Once this audience is interested, the marketing strategies will continue target younger customers. The impact of the product life cycle on marketing is that economic conditions will force the marketing strategy to be reformulated a number of times during the products life cycle (Kotler and Keller, 2006. p 335). Thorr Motorcycles Inc has observed the impact of the product life cycle. The Cruiser Thorr sales decreased, therefore, company had to reposition the product and look for new target audience. Product life cycle can affect the sales and the image of the product. Thus, Thorr Motorcycles Inc, a producer of durable goods, needs to look for additional ways to maximize its profits. Additional profits will come in from services related to product and supported by manufacture. Company should offer warranties, parts, training, and accessories. Reference: Apollo Group, Inc. (2004). Using Perceptual Maps in Marketing [Computer Software]. Retrieved from Apollo Group, Inc, Simulation, MKT 421 website Perceptual Map. (2010). In www.BusinessDictionary.com. Retrieved from http://www.businessdictionary.com/definition/perceptual-mapping.html Market Positioning . (2010). In www.BusinessDictionary.com. Retrieved from http://www.businessdictionary.com/definition/market-positioning.html Kotler, P. & Keller, K.L. (2006). Marketing management (12th ed.). Upper Saddle River, NJ: Perason/Prentice Hall.