Using Perceptual Maps in Marketing
May 9, 2012
University of Phoenix
Thorr motorcycles are a 5.5 billion dollar company that produces more than 200,000 units annually. The Thorr Company licensed dealers to sell t-shirts, leather goods, and toys. The Thorr motorcycle company recently saw a decline in the Thorr cruiser that in the past has been the company’s top-selling cruiser. Sale declines are attributed to target age groups no longer taking interest in the lifestyle that the Thorr cruiser portrays and also a younger group of customers.
There are main three objectives of this simulation that will be addressed. The first Task and objective was to identify the ...view middle of the document...
Consumers look for quality as well as prices and the design of a product just as important as the price, so that is the reason quality engineering was chosen as a parameter and will be used in Thorr’s marketing plan. Service offering was the third parameter chosen and by implementing excellent service Thorr could draw in more customers and increase sales. Companies that pride themselves on excellent customer service make consumers feel confident in their purchasing because if something is wrong after the purchase consumers know that the company will stand behind their products and services. The fourth and final parameter chosen was the price. Pricing is an important aspect of consumer purchasing decisions. Consumers use pricing to decide whether or not the product is of quality and also if the product is not worth what it cost. Consumers use prices to determine many of the factors that fuel consumers purchasing habits. All of the parameters that were chosen were effective because they all had a positive effect on the declining sales at Thorr.
Introducing new product
After reviewing the sales of the cruiser and the circumstances surrounding the cruiser it was decided to launch the new product which is; a new motorcycle. The decision to launch the new product was made because the Thorr cruiser had run its course in the product life-cycle. Customers are not purchasing the Thorr cruiser because their targeted customers are older and no longer affiliate themselves with the life-style image that the Thorr cruiser represents. The Thorr cruiser cost the company money because of declining sales so it was decided that launching a new product and sacrificing the money for an effective marketing plan to in traduce the product was necessary.
Product differentiation and product positioning
Product differentiation is the way that companies differentiate their product from that of their competitors. Differentiating products consist of making a product that has significant distinctions from competitor’s products. Positioning a product basically means the approach that the company will take to introduce the product and market the product. The main distinction between product positioning and product differentiation is that differentiation is the difference between available products and positioning is the approach a company will take to sell products.
Repositioning of the Product
Repositioning the product did go as planned in the simulation. Consumers can sometimes associate lower price...