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MKT421 Wk 4 Using Perceptual Maps in Marketing Simulation Summary

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Using Perceptual Maps in Marketing: Thorr Motorcycles
Thorr Motorcycles, Inc. is manufacturing over 200,000 units annually and has
current worth in excess of a billion dollars. Thorr is a leading name and holds around
40% of the total market. It not only sells motorcycles but also offers dealer training,
dealer software support and mechanical training. For customers, it offers motorcycle
rentals and biker training. Projected image of CruiserThorr is of “masculinity, mobility,
and freedom”. Currently Thorr is experiencing decline in sales and wants to know the
reason. Thorr can inquire from customers what they want to have in the motorcycle
and then change it accordingly. Another way is to change the customer perception
about the motorcycle.
Phase I: Where is the Thunder?
The first phase is the problem statement that the sales are decreasing, “The
motorcycle industry is growing annually, but sales of Thorr Motorcycle’s existing
product CruiserThorr (a 1500cc power cruiser priced at $25,800) are deceasing”
(University of Phoenix, 2008). This may be because of change in target market
characteristics. The people being targeted are now old, their lifestyles have changed
and they are not interested in getting a motorcycle. On the other hand, younger
generation has comparatively smaller disposable incomes and they are more
interested in buying an affordable motorcycle. Thorr needs a new redesigned
marketing strategy to win back the sales. In this paper, market position of
CruiserThorr motorcycles will be determined by using a perceptual map. This
positioning on the map will be based on four fundamental parameters that can used
to promote Thorr.

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Lifestyle reflection, price, quality engineering and offered services, were the
chosen fundamental factors. Lifestyle image is the most important factor in this
mapping because production motorcycles always sell on their image rather than
specifications. Quality engineering is also important as no one likes to buy unreliable
products. Quality of a motorcycle can also initiates word of mouth promotion for the
company. In addition, no company can continue in the long term without providing
quality products to the customers. Pricing is the next fundamental factor and it is on
the base of price most people buy products. However, in case of motorcycles,
customer’s image of a motorcycle is directly linked to its price that is why there is a
small risk if company tries to decrease the prices that its image may get hurt in eyes
of the customers. Services are also important to keep the dealers and distributors
happy. This also ensures that customers remain loyal to the company.
Recommendations and suggestion that were provided at the end of phase I proved
to be successful.
Phase II: Revving up the Market
Phase II notifies about Thorrs market position and its sales are not improving
due to poor positioning. There are two ways out of it; repositioning of CruiserThorr or
launching of a new motorcycle called RRoth. Phase II shows a SWOT analysis along
with customer demands and income clusters. In addition, financing documents were
also provided. Customer preferences are the most important factor here as the
company is trying to target a much younger audience than that of CruiserThorr. Age
group of target audience is chosen to be 25-35 years so the product should be
according to their preferences.

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Anonymous
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