Thorn will use feedback from their customers views on their line of motorcycles. To increase sales, Thorn will develop a plant to change the perception of their motorcycle line with their target market. Phase I Courthouse recognizes the decline In sales. "The motorcycle Industry Is growing annually, but sales of Thorn Motorcycle's existing product Christopher (a 1 ICC power cruiser priced at $25,800) are deceasing" (University of Phoenix, 2013). Thorn recognized that this is a result of the age of the target market.
The older age of the targeted consumers does not care about the lifestyle a Christopher portrays. The younger consumers who generally have less spending money would like to see a line of less expensive motorcycles. Thorn needs a new marketing strategy to turn the declining sales into the opposite direction. The simulation asked students to obtain the market position of Cruiser Thorn using a perceptual map. Students had to select four fundamental parameters relevant to the Industry and that rewarded the highest potential for Christopher.
The four fundamental parameters selected were Lifestyle Image, Price, Quality Engineering, and Service Offerings. Lifestyle Image, easily considered the most important role in the production of motorcycles, and is the best selection for the perceptual map. This is a very dominant attribute because the image will sway nonusers into purchasing the product rather than the other functional attributes. Quality engineering covers aspects of the motorcycle and without quality engineering the company cannot keep its reputable image.
Price compels consumers to purchase the product or not. If the motorcycle has a high price it is directly proportional to the high image the motorcycle has. One drawback about image is that when prices are lowered the company runs the risk of lowering the image. Service offerings are exceptional way to keep dealers and distributors happy. In phase l, the recommendations provided returned a positive outcome, and a successful decision. Phase II: Rewiring up the Market Phase II informs market position Cruiser Author's has, and that Thorn has not increased sales.
Thorn has to make a decision if they will reposition Cruiser Thorn or launch a new motorcycle, Roth. Phase II provided a SOOT analysis, consumer preferences, income group, and financing requirements. The most valuable information used to make the decision was based on the consumer preferences. Because Thorn is looking to capture a younger age group between 25 to 35, a focus of this age range preferences would benefit the marketing plan. Launching Roth is the marketing strategy chosen.
The budget to implement the arresting strategy is Only $12,649,000 of the original budget was spent on the new plan. The price range selected was $13,000 to $15,000 so that it will be priced effectively to target the younger consumers. Promote Roth by hiring celebrity endorsements, publicize through Hollywood films, sponsoring events such as Daytona, and offer insurance and protection plans. Promoting this product in films is a sure way of reaching countless consumers in the new targeted age bracket. Placement of the Roth will be through dealers and the Manufacturer's website via the Internet.
The Internet will allow consumers the best opportunity to view the reduce and its specifications. Finally, the services offered will include financial services, customization options, training to dealers, and club memberships. By providing consumers with financing options Thorn will be able to reach consumers who thought that owning a motorcycle was unaffordable. The company also will attract younger consumers by providing financing options, and it does not significantly raise the expenditures for the company.
With the implementation of recommendations of the marketing mix and positioning strategy, Thorn is well on its way to increasing sales once again, and attracting younger customers. Phase Ill: Thundering Success Phase Ill is to interpret market research findings to plot the brand attributes of Cruiser Thorn on a perceptual map and choose attributes relevant to Roth and use the findings to create Root's perceptual map. Consumer's perceptions of the two new production lines were surveyed. The results of the survey developed and plotted the perceptual map for the attributes for the Cruiser Thorn and Roth.
The attributes surveyed was 350 men in the 25-55 year age bracket. Marketing research results for the Cruiser Thorn found that 37% intended on spending $13000-$15000 on a motorcycle. It was also apparent that 45% strongly agreed that training to dealers was an important factor. Acquiring financial services and options available was important to 57% of the men surveyed, and 41% wanted more options in a motorcycle. Of the men surveyed, 38% believed that most of the services currently provided and offered by Cruiser Thorn needed to be augmented.
When asked if all the services currently offered are satisfactory, 25% answered with a "strongly disagree. " Taking this information into account, it was recommended that the Lifestyle Image parameter be increased to a level nine, Price to level five, Quality Engineering to an eight, and Service Offerings to a level seven. The results returned The recommended parameters chosen for Roth were to increase Lifestyle Image to a level nine, Price to level eight, Quality Engineering to an eight, and Cool to a level eight.
The results revealed adjusting Cool and Price to the aforementioned parameters was spot on. However, the Lifestyle Image parameter of nine would be more appropriate at a seven because Lifestyle Image of Thorn was already very high. In addition, adjustment of Quality Engineering would be more appropriate at seven ether than the chosen eight because Quality Engineering was high and most customers responded well to Root's fuel-efficient engine. Relationship between Differentiation and Positioning Differentiation and positioning go hand in hand to determine the success of a product.
A company can have a product that stands out among the rest, but without proper positioning, the product will flop. Moreover, if a product is in the right position, but does not stand out among the rest, success will be limited. A company looking for true success must be unique and position itself as such. In short, the many must penetrate the minds of the buyers and become a leader. Repositioning in the motorcycle simulation was much what was expected. Sales were decreasing in the current market, and there was no other option but to reposition.
Sales were decreased because of changes the Product Life Cycle, the company had to spark growth by focusing a line to appeal to the younger market. Cruiser Thorn had reached the stage of decline. In order to enter a phase of growth, something new had to be done. Introducing Roth for the younger generation sprung an opportunity to reach a new market, while maintaining loyal customers by holding not Cruiser Thorn. By producing two different production lines Thorn motorcycles is giving the consumer the option of which motorcycle will fit his or her specific needs.
Differentiation is basically the uniqueness a company can make its product. This can be achieved either by price, service, packaging, and delivery options. The challenge with positioning and differentiation is that the company must ensure that it increases sales and does it in a way that it benefits the company's growth. Another challenge for Thorn Motorcycles is advertise the new product line so that it appeals to the younger target market. Enticing the younger consumer will be the next step after Thorn gains the target markets interest to purchase the motorcycle by making the marketing plan revolve around them.
The Effect of the Product Life Cycle on Marketing? Constantly changing because of customer trends, wants, desires, and needs influence the life cycle of the product. For this reason marketing always has to be presented in a new and exciting way to promote the attributes of the product and to gain the attention of potential customers. The marketing plan demonstrates how the product life cycle impacts the success of a product and shows a way to rejuvenate he image of the product. This can be done by repositioning the product life cycle in a more profitable position.
The product position is how the consumer feels about the new product while they are choosing to purchase the new motorcycle. The Effect of the Product Life Cycle on Thorn The company must ensure that they are developing their marketing plan based be said to be between maturity and declining stages of its life cycle and Roth is still considered to be in the introduction stage of its life cycle. Thorn Motorcycles needs to know exactly where the product is in relation to the product life cycle to ensure adequately that they will maintain the market share or even acquire new areas of the market.
When it came to differentiating and positioning the two motorcycles, Thorn was presented a different set of challenges that ultimately would have a significant relation on the success or failure. When interpreting the marketing research data the interpreter can create a perceptual map that will assist the marketing team in developing a successful marketing plan. In addition, understanding product life cycle and developing a suitable marketing plan is critical to the achievements of any new reduce or services.