Using Perceptual Maps in Marketing

Essay by dasiasmommy June 2009

download word file, 4 pages 5.0

Introduction - Thorr Motorcycles, Inc.

Viewed as a company with a high brand image, Thorr Motorcycles, Inc. is a $5 billion dollar company which manufactures high-end motorcycles and boasts roughly forty percent market share. Thorr Motorcycles, Inc. manufactures 200,000 motorcycles each year and also offers services like, dealer training, dealer software packages, motorcycle rentals, and rider training and sells clothing, motorcycle shoes, leather goods, toys, and several other consumer goods.

The SituationIn this simulation the problem that exists is that Thorr Motorcycles' sales for their high-end products are decreasing. The target customers, whom typically were from the age of 35 - 50, are growing older and therefore loosing interest in the product and the lifestyle. The younger generation is unable to afford the pricey motorcycles' therefore they do not identify with the image and for these reasons Thorr Motorcycles, Inc. is slowly loosing market share. The challenge brought before me, as the Marketing Manager for Thorr Motorcycles, was to establish parameters, make a decision whether to reposition the existing brand or launch a new product and lastly, develop new parameters based on sales and surveys of the new product, all in an effort to reverse the downward trend.

RecommendationsThe first step in the simulation was to use a perceptual map in an effort to establish a positioning strategy for CruiserThorr using. I was asked to choose a total of four parameters; I chose lifestyle image, the company's brand is its strongest asset and it is important that we continue to strengthen and realize the power of that attribute. Lifestyle image is what influences people to buy into the image rather than the functionality of the product. Next, I suggested engine capacity although in my results the simulation stated that it was not a fundamental parameter, I should have chosen Quality...