...Using Perceptual Maps in Marketing Simulation Summary I am a marketing manager for Thorr Motorcycles, Inc. As a five billion company it has been successful throughout the years pleasing an older range of customers. Thorr Motorcycles, Inc. not only offers customers to purchase motorcycles, but also a variety of items. This variety of items includes; t-shirts, hats, shoes, leather goods, and toys. I have been hired to create a marketing plan for the company and either reposition or create a new motorcycle. Through the process of this simulation I must choose parameters that are important to Thorr’s customers and are also fundamental to the business. I was given a budget of thirteen million dollars to implement my new plan. Through the use of a simulation I will come to a decision that best fits Thorr Motorcycles, Inc. and RRoth. When beginning the simulation a background of Thorr Motorcycles, Inc. was provided, but the first step in this process was to choose four parameters relevant to the motorcycle industry and has the highest potential. These four parameters are lifestyle image, quality engineering, service offerings, and price. Lifestyle image is important because customers are influenced to buy for the image rather that the functional features. Quality engineering is important because it allows Thorr Motorcycles, Inc. to maintain a high image because quality engineering includes aspects such as, product design, styling, and engine capacity. Service offering is important...
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...In the first phase identify the parameters relevant to Thorr Cruiser. Thorr Cruisers not modern and apart from the old few people want to purchase Thorr Curiser. The parameter of contemporariness has identified importantance for Thorr Cruiser. The price maintained is a recommended solution; through public Hollywood film and interest the bike should go through. Without financial services will fail and are perceptible differences in Thorr Cruiser. The motorcycles differences in controls, power, steering, and design, the motorbikes perceived as different by regular users, and the bikes repositioned. Using price, and quality engineering the products different and perceived as repositioned. The results are successful using financial services, and Hollywood Internet. The second phase is to whether to reposition Thorr Cruiser or to produce a new motorcycle based on the present products. The situation was Thorr Cruiser could not differentiate from its local competition, there was a loss, and the customers were purchasing from competitors. The customers purchasing from competitors was causing the company to lose money. At this point the question is should Thorr Cruiser produce a new motorcycle or reposition. The recommendation is Thorr Cruiser should produce a new product. The reason because of a new launch it will target the younger group by using a new product. The new launch will have features that appeal to the younger groups, and have a new brand name that will appeal...
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...Thor Motorcycles, Inc. xxxxxxx MKT/421 March 26, 2013 Thorr Motorcycles, Inc. Thorr Motorcycles, Inc. is a five billion dollar company that manufactures high-end motorcycles for a commanding forty percent of the market share. Viewed as a high brand image, Thorr Motorcycles, Inc. manufactures more than 200,000 motorcycles every year. On top of that, they also offer services including motorcycle rentals, dealer software packages, dealer training, rider training, and motorist riding apparel. In this simulation, the problem at hand is their line designed for the age range of 35 – 50, and the decrease of interest and sales for that particular bike. The reasons for the decline in sales is due to the age bracket it is designed for losing interest in the product and lifestyle, while the younger groups typically do not have the money available to purchase that style. This is a rising issue and is causing Thorr Motorcycles to lose market share although they are still a successful company. Thorr has realized this issue needs to be addressed immediately before too much of the market share is lost, therefore, they have brought me in as Marketing Manager in an attempt to create a perceptual map and re focus the marketing and advertising strategies. During my time at Thorr I am expected to establish parameters, decide whether to reposition the existing brand or launch a new product, and develop new parameters based on sales surveys of the new product. The CruiserThorr...
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...The company, Thorr Motorcycles have noticed that even though the sales in the motorcycle market are still high, the sales of the CruiserThorr are down. In order to turn this around, Thorr has hired a team of marketing experts to create a marketing plan beginning with a perceptual map, which gives a visualized idea of what the customers’ perception are of the product. After creating an optimized perceptual map, the marketing team has to decide whether to continue with their present strategy plan or deliver a newer, less expensive motorcycle, the Rroth, that will appeal to the younger crowd. After a year of sales, the marketing team then has to create another perceptual map for the decision they made to either stay with the current strategy plan or with the Rroth. The four parameters I chose for the simulation were lifestyle image, product design and styling, product uniqueness, and quality engineering. I chose lifestyle image because this is what a customer thinks of a brand and I feel this should be a high category. Product design and styling satisfies the customer physically and comfortably. Product uniqueness gives the customers something that only they would get when they purchase this brand of motorcycle, like engine sound. Quality engineering proves that the motorcycle was made with the highest quality of materials and overall the best aspects of manufacturing. According to the results, I should have chosen price and service offerings instead of product design and...
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...Using Perceptual Maps in Marketing MKT/421 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 appropriate parameters and complete the perceptual map. The second task and objective was to create an effective marketing plan with an budget of $13 Million dollars and the decision whether to launch a new product or reposition the company altogether together. The final objective was to identify the parameter values that would take the company into the future. The first objective was determining the perceptual map parameters. The map will show a realistic visual of how consumers feel about the products and services being offered. There were four parameters chosen and the chosen parameters were lifestyle image, quality engineering, service offering, and price. The parameters chosen were chosen because they were the most important aspects of marketing located in the simulation. The lifestyle image...
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...Thorr Motorcycles, Inc. The Situation Image like success comes at a high price. Thorr Motorcycles, Inc. is currently at a crossroad. This is because there is a decline in the sale of its high-end motorcycle, the CruiserThorr. The current lifestyle image the CruiserThorr portrays, speaks to the more mature and settled consumer. These aging bases of customers who have the purchasing power are no longer buying new motorcycles and equipment. On the other hand, the younger generations of cyclist are not attracted to this brand, as they simply cannot afford to buy it. It is the task of the marketing team to resolve this issue by putting together a strategic plan that will allow Thorr Motorcycles, Inc. to maintain its reputation as a quality and reliable brand of transportation. The experts (marketing team) will also determine whether the company will reposition the current CruiserThorr versus creating a new product that will appeal to a different market segment and capture an audience of potential buyers. Thorr Motorcycles, Inc.’s ultimate goal is to regain the market share and competitive advantage over competing brands. Steps to Take Thorr Motorcycles, Inc. will remain solvent in the industry once it positions itself to compete with its competitors. Staring and comparing the attributes of the CruiserThorr against that of other motorcycle manufacturers can accomplish this. There are various fundamental parameters relevant to the industry and mirror what is best for Thorr...
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...Thorr Cruisers Paper Student MKT/421 October 11, 2010 Instructor: Name Thorr Cruisers Paper In the Thorr Cruiser simulation, the sales of Thorr Cruiser have been decreasing steadily. This forced the need to redevelop the company’s marketing plan, which includes the determination of whether to introduce a new line of motorcycles. The simulation educates the student with the interpretation of the market research data using a perceptual map. “Perceptual mapping can be used to give you that additional insight into the current position of your product and its potential in the face of competition” (Outsourcing2India, 2010). The simulation uses this technique to analyze the perception of the Thorr Cruiser to ascertain the reasons for declining sales and to formulate a strategy for improvement in the positioning of Thorr Cruiser. The improvement of the positioning of Thorr Cruiser will rely on implementing changes in the company’s marketing mix. The marketing mix refers to the combination of product, place, promotion, and pricing strategies. The final marketing mix that will help reposition Thorr Cruiser. While running the simulation the marketing mix used was price, services, engineering, and financial options. Price is important to position Thorr Cruiser as a premium product. Pricing affects the perceptions of customers and so lifestyle pricing has been used. In addition, lifestyle pricing will support quality engineering so that the Thorr Cruiser that rolls out...
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...Perceptual Maps in Marketing- Cruiser Thorr (Simulation Summary) MKT/421 The first phase is to identify the parameters that are important to Thorr Cruiser. The first parameter is the extent of contemporariness of Thorr Cruiser. Thorr Cruiser is not seen as modern, but as old school; there are few who would want to purchase Thorr Cruiser in the current market. So the parameter of contemporariness has been identified as important for Thorr Cruiser. The recommended solution is to maintain the current price, the bike should be publicized through Hollywood film and internet, financial services, and customization options being offered will fail unless there are visual differences in the bike Thorr Cruiser is trying to reposition. The bike should have differences which should be substantial in design, in power, controls, and steering. The bike must be seen as desirable by an average user, only then will it be repositioned. If the product is seen as different and is repositioned using price, service offering, quality engineering, Hollywood/internet advertising, and financial services, the results will be a successful repositioning among the critical parameter, namely contemporariness. The second phase is to determine whether to reposition Thorr Cruiser or to launch a new motorcycle based on the analysis of present products. The situation was that Thorr Cruiser was not able to differentiate itself from its competitors, thus it was losing profits due to its customers...
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...expectation of the product. The motorcycle company Thorr Motors perceptual maps were used to create a marketing plan to help maintain a high trademark image of the company’s motorcycles. The Marketing Dictionary (2010) definition of perceptual maps is a “process by which consumers' perceptions of an existing product are charted.” (2x01) The sales of the Thorr Cruiser are decreasing. The reason this is occurring is that Thorr’s Cruisers target customers are getting older and are starting to outgrow the means of what the Thorr’s cruisers represents. Younger customers do not see themselves with a Thorr cruisers lifestyle image because they are most interested in cheaper motorcycles because of their low incomes. The scenario for Thorr’s Cruiser’s wanted to determine the position in the market by choosing four relevant parameters that will reflect the highest potential. For phase one the parameters that were selected were lifestyle image, services offered, price, and quality engineering. Lifestyle image was selected because the image for the Cruiser Thorr was being outgrown by the period target audience and was not identifiable with younger customers. The lifestyle image for Thorr’s cruisers is already set important information collected is helpful to keep image to satisfy both older and younger customers. Another parameter chosen was the services offered because compared to their competitors the services offered by the Cruiser Thorr are limited. The more additions a product comes...
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... Thorr Motorcycles is a company started with a history of its strength and uniqueness, kind of like the Harley-Davidson of current times. Many people understand that this motorcycle brand is one to work up to. Many motorcycle lovers know that some of the types of bikes are bought by different age groups; some people prefer the shorter distance style bikes for their sleekness, speed, and price range. More experienced or even older bikers prefer the cruisers or long-range bikes for their style, comfort, and look. The problem with Thorr’s company is that the cruiser bike is losing sales. Whether this be because older people not being able to afford these style bikes, lack of interest or just changes within the motorcycling culture this bike needs to be revisioned by consumers. This problem has been an issue with Buick in the past. Their cars and SUVs were being noted as elderly styled vehicles. Buick took initiative and tried to advertise ways that made their cars more current and updated as compared to years before to entice the younger age groups. Although their attempt was less successful than hoped, they are still running and selling vehicles. The solutions for the sales drop is the ideas of publicizing Thorr’s cruiser in Hollywood films and the Internet, decreasing the price of the current cruiser models, financial services within Thorr, better service programs, and free trial rides. ...
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...situation Cruiser Thorr (a 1500cc power cruiser priced @ $25,800) and their targeted customer’s ages; 35 to 50 years old, not buying the cruiser due to getting older in age and no longer interested in the lifestyle. The younger consumer that they want to target 21-35 years of age are looking into buying a motorcycle that cost less than the cruiser due to their income. There are two options to see whether sales will increase by maintain the current position in repositioning the same motorcycle or building a new motorcycle that would entice a younger consumer. The solution that I have recommended for the Cruiser Thorr is to reposition the Cruiser Thorr by providing financing options and increase services. The lifestyle, the quality of the engineering. I have decided to maintain the price, but offer financial services. The Thorr Motorcycles is a 5 billion dollar company that manufactures motorcycles, they also sell licensed products of their brand such as shoes, t-shirts, toys, leather clothing, and etc. Thorr Motorcycles sells a couple hundred thousand units per year and they are growing every day. They are able to sell so many units due to their high brand image in the market. Thorr Motorcycles provides rider training, motorcycle rentals, dealer training and dealer software services. The Thorr Motorcycles concentrate on three main objectives that can construct perceptual map, create a marketing plan with a budget and see if the parameter values for the future of Thorr Motorcycles....
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...Using a Perceptual Map for Thorr Motorcycle, Inc. MKT/421 March 25, 2013 Perceptual Map Company Bio Motorcycles have been marketed as the masculine, mobility and freedom machine since the early 1900s. Crusier Thorr is no different. It is a high-powered, efficient motorcycle modeled after the God of Thunder himself. Cruiser Thorr is prized for it strong, honest and dependable product design; however, with the changing demographics of its target market, the company has hired a new Marketing Manager to re-market the high-end bike to a younger market. This paper will describe the decisions made by the new marketing manager and the company’s attempt to re-invent their marketing strategies to push this bike into a demographically challenging market. The Situation An important attribute to Thorr’s Motorcycle, Inc. is Lifestyle Image. Lifestyle image creates the need for customers to purchase the line “Cruiser Thorr” because of the masculinity and freedom it represents. The perceptual map is a visual description of a customer's perception of the brand. Thorr's motorcycles were positioned as high-priced and that perception did not fit the market for younger consumers that have less money to spend then mature consumers. Thor began to see a decline in its market position due to the escalated price and the life style image presented was targeted toward the older generation. Considering the decline in sales, Thorr’s Motorcycles, Inc. had to make changes to the image it projected...
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...visual representation of customer perceptions towards objects (products, brands or companies), and how these are positioned in the marketplace” (The Marketing Analysts, 2011) The paper discussion will explain the suggested results for the simulation in addition to individual outcome. The positioning and differentiation will also be explained and how they relate to the perceptual map simulation. While taking the simulation one could see that the product life cycle was effected during scenarios. Simulation The motorcycle company produced over 200,000 motorcycles a year and the most popular one is the Cruiser Thorr. Major problem came when the customer base started to change and the sales started to decline. The reason for the decline in sales is the demographic the motorcycle company decided to target. They decided to target the older generation and priced the Thorr too high for the younger generation. Being that the motorcycle company decided to market to the more mature demographic the company did not focus their marketing on the younger generation thus they were not even aware of the motorcycles. That decision had a great effect on the sale of the motorcycles. Only targeting the older generation meant that the motorcycles were designed for that generation and did not appeal to the younger crowed. The downturn in the economy also affected the sales because they were priced too high. Recommended Solutions A factor chose during the simulation was price, which is important...
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...market offerings. By developing a visual map of customer reactions and perceptions, a company can fine-tune their overall marketing strategy and position their image relative to competitors. The week four simulations provided a detailed example of how a motorcycle company can use perceptual mapping to make decisions related to their brand and products. The Simulation In the simulation, Thorr Motorcycles offers a variety of products to the motorcycle riding community. Products were placed on a graph and compared to similar products offered by their closest competitors, which provided a visual image of the product relationships. Each scenario required the choice a solution to improve sales of the product being analyzed. The first scenario was centered on an existing motorcycle know as the Cruiser Thorr, which has been declining in sales. This would be considered an example of a product that has reached the end of the product life cycle. In the past, this product had been marketed towards an older demographic who is no longer purchasing in high volume. To solve this problem, the Cruiser Thorr is needs to be marketed to a more youthful group of customers. The younger customer base is most responsive to changes in affordable pricing, quality, and lifestyle image. This younger customer base is much more budget conscious, but also requires a strong image of quality engineering. The second scenario deals with creation of...
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...technique used by marketers to visually display the perceptions of current and potential customers. Thorr Motorcycles is a billion dollar company that offers services in rider training, dealer training, dealer software packages, and motorcycle rentals. The image of Thorr Motorcycles have been sought by customers for years but it is a different image that new customers are looking for. The purpose of this simulation is to focus on three objectives. The first objective is to analyze the situation by constructing a perceptual map. The second objective is to recommend solutions for the organization by creating a marketing plan with a budget to determine whether to reposition the organization or launch a new product. The final objective is the results that determine the parameter values for the future of the organization. Phase I - The Situation The major situations in this simulations was Thorr Motorcyles faced a decrease in sales of its top product, the Cruiser Thorr. Other situations in the simulation were the need to create a market plan that repostion the Cruiser Thorr in the market versus launching a new motorcycle, and plotting the Crusier Thorr brand attributes on a perceptual map. Thorr’s Motorcycles lifestyle image is important to the organization because it influences customers to purchase the top selling product of a Cruiser Thorr. The image of the Cruiser Thorr represents, mobility, freedom, and most of all for the majority of motorcycle riders, masculinity. The...
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