Perceptual Maps in Marketing
Perceptual Maps in Marketing
Thor Motorcycles, Incorporated builds motorcycles and motorcycle accessories. “Thor motorcycles currently produce more than 200,000 units” The company specializes in the Cruiser Thorr, its high-end motorcycle. The Cruiser Thorr helps the company maintain five billion dollar sales in its industry. Unfortunately, the current buyers are growing older, and the motorcycle is not attracting new buyers. The marketing team has decided because of the decline in sales that it must make a decision to change the marketing of the Cruiser Thorr or launch a new line referred to as the RRoth. The use of a perceptual ...view middle of the document...
The areas needed for positioning strategy are lifestyle image, price, service offerings, and quality engineering. The lifestyle image is the image that makes the brand and draws customers. The Cruiser Thorr out performs all its competitors in lifestyle image. The quality engineering on the map shows the need for improvement, it is currently below its competitors.
To attract younger consumers, the price needs to be affordable, this drives customers to buy a product or look elsewhere. Unfortunately, lowering the price would affect the brand image. The last area, service offerings is below competitors too. Service offering attracts customers and needs to be upgraded or added to if the Cruiser Thorr want to compete and keep this motorcycle as its main seller. Because these four areas are the most important in positioning, the marketing department must determine if the company can improve these areas with little loss as possible or start a new line that meets these areas.
The next step used by the marketing team is to apply the SWOT (strengths, weaknesses, opportunities, threats) currently in the market of the Cruiser Thorr. The information will be used to determine if re-positioning or a new line is best for the company. The SWOT analysis shows the weaknesses, threats, and opportunities all make reference to price and services offered. Competitors are the threat to the company because it offers cheaper and smaller models. The weakness for the company is the high price of the Cruiser Thorr along with the small age group buying. The previous market research showed ‘cool’ as more important than lifestyle image. [ (Using Perceptual Maps in Marketing, 2012) ]
The opportunities show there is a new market for financing options if the price is lowered.
After examining all the information, the marketing manager decides to launch a new line named RRoth. The promotion used for the RRoth is a lower price between 13,000 and 15,000 dollars. The product placement at dealers and the Internet are used to attract younger customers. The service area is improved to include training to dealers, customization options, and financing services. The final promotion area includes sponsoring events, free test rides, insurance and protections plans, using the motorcycle in films, and celebrity endorsements. The new RRoth motorcycle has the same brand image but is safer in build with disc brakes. “The engine is smaller and fuel efficient to help lower cost but keep speed.” [ (Using Perceptual Maps in Marketing, 2012) ]
After a year has passed, it is time to re-determine how the Cruiser Thorr and RRoth are doing in sales. To accomplish this, a new perceptual map needs to be made for the Cruiser Thorr and a map made for the RRoth. The sales figures for each motorcycle shows promise, the Cruiser Thorr has gained sales in the fourth quarter of the year, and the RRoth started at 40 million and climbed to 70 million at the end of the year, so a survey...