Using Perceptual Maps in Marketing simulation - Essay Example

? USING PERCEPTUAL MAPS IN MARKETING SIMULATION [Insert [Insert This paper explains the scenario of a simulationon Thorr Motorcycles positioning and marketing strategies. Three scenarios will be presented in the simulation and this paper will look at the situation, the selected action plan and its rational and the end results (which will be generated by the simulation) will be explained in brief detail of all the three scenarios. The selected action plan will consist of positioning strategies and decisions on the fundamental parameters of the Perceptual Map on which the brand should be positioned. This will be followed by direct impact/results of these decisions which will be generated by the simulation itself. Following this explanation, the interdependence between differentiation and positioning a product and a service is explained. Besides this, the results of the decision of repositioning the brand of Cruiser Thor or introducing a whole new product line will also be discussed. Besides this, the overall effect of Product Life Cycle on the brand’s performance and the scenarios presented in the simulation is also discussed, which will give a comprehensive summary of selected marketing plans and its impact on the brands’ performance. 1. Scenario 1 1.1 The Situation Cruiser Thorr is the market leader in the motorcycle industry where the consumers symbolize the brand with lifestyle. Lifestyle positioning is the strongest element in the motorcycle industry and Cruiser Thorr enjoys the brand image of a premium product with all the features and deliverables which makes it the first choice of the consumers who can afford it. Situation 1 of the Simulation presents a scenario where the Cruiser is losing Sales because its ideal target market (men in the age-group of 25-50) is growing old and is no longer interested in the lifestyle image of the brand. Moreover, the alternative market of the youngsters do not relate to the image of the brand of Cruiser. Therefore, the brand had to be repositioned in the market and around those elements which would cater to the consumer preferences as portrayed in the market research. 1.2 Recommended Solutions The possible solution was to reposition the brand. I selected the parameters of Price, Service Offerings, Product Uniqueness, Product Design and Style. The results showed by the simulation were that the parameters of Product Style and Design and Product Uniqueness were not appropriately selected. I selected the Service Offerings because the competing brands had good services to offer and that, because of the high price of the Cruiser, it had to be complimented with Financial Services. Besides this, the Product Style and Design would have complimented the Lifestyle image. I did not select the Lifestyle parameter exclusively because the trend in the target market showed that this was no longer as important to the consumers as it was when they were young. 1.3 The Results As lifestyle image is the most important component in the Motorcycle Industry, the brand will sustain its image. Along with this, the Quality Engineering parameter also had to be included as it incorporated all the other factors such as the engine’s performance, the design and its overall quality; which are important to the consumers. 2. Scenario 2 2.1 The Situation The second Scenario was that the brand of Cruiser was lagging in sales despite repositioning it. The market dynamics through research showed that the young men, aged from 20 – 35 comprised of a strong market potential. Now the question was either to reposition Cruiser Thorr again or to launch a separate product called RRoth – a much lighter version of the Cruiser. 2.2. Recommended Solution The solution was to launch a separate product line under the brand of RRoth with low prices, more financial services, unique design and the quality persistent with Thorr’s image. The idea of repositioning Cruiser would be harmful because Cruiser Thorr is the premium brand of the company and repositioning it in the lower market would harm the image of the company and the brand itself. Therefore, spending on the financial services of Cruiser Thorr and launching the new brand of RRoth and promote it by sponsoring events, advertising it through Hollywood and via celebrity endorsements to maintain the corporate image, and in the low market would be a good option. 2.3 The Results The plan of providing more services associated with the Cruiser proved to be successful. By maintaining the image and focusing on the product engineering along with the repositioning, resulted into increases in sales. Besides the successful performance of Cruiser, RRoth also proved to be a success in the market with increasing sales trend. 3. Scenario 3 3.1 The Situation After the success of the two brands, there was now the point where the final positioning strategy of the two brands had to be defined in accordance with the data from the market research. This meant that now, the brand had to be managed as per the image of the brand as perceived by the consumers. 3.2 Recommended Solution The Cruiser’s price had to be kept somewhat stagnant in order to maintain its image in the market. As the image was the brand’s strength, the company could not afford to compromise its image by reducing the prices. However, the consumers could be assisted with financial services therefore; the price component should be set to a range of 3-5. Along with this, the lifestyle image, being the most important parameter in the industry had to be set to a high value, along with included with Quality Engineering which should match the industry. As for the RRoth, the Parameters of Cool, Lifestyle, Quality Engineering and Price should be set as per market research. The brand was being perceived as Cool and the research also suggested that the price seemed to be very appropriate for the consumers. Apart from these two components, the parameters of Lifestyle and Quality Engineering should be set to a moderate level. 3.3. The Results The results showed that all the components were appropriately selected except some reconsideration was required for Service Offerings as the consumers were somewhat not satisfied with the current level of services like Dealer Training and Financial Services offered. As put by Sengupta in his book, Product Differentiation is necessary when a product has to be positioned in the Deep-Blue Ocean on competing brands. The Point of Parity and the Point of Difference helps create a USP of a brand which the manager wants the consumers to perceive. In the simulation, the Cruiser used its premium image and its superior quality to differentiate itself from competition. No other brand has this strong image which Thorr has developed over the years. RRoth on the other hand is positioned in the youth market with the image of being “Cool” which makes it stand out amongst competition. The stage of the product lifecycle on which the brand is at, impacts a firm’s marketing decisions. Cruiser was in its maturity stage and it was losing its sales as its target market was getting old and the demand of the lifestyle image associated with Cruiser was falling. To rejuvenate the brand, it was repositioned so as to change the way how the brand was perceived. The repositioning helps expand the lifecycle of a product (Sengupta, S. 2005). As for RRoth, it was in its introductory stage and at a point where the marketing expense is at its maximum. In the simulation, the budget of $13,000 was allocated to the product launch. Likewise, repositioning a brand (in Cruiser’s case) is equally expensive as it revamps the brand and brings it to its introductory stage. References University of Phoenix. Perceptual Map in Marketing. Online Simulation. https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMsims/general_marketing/perceptual_maps/general_marketing_perceptual_maps_frame.html Sengupta, S. (2005). Brand positioning: Strategies for competitive advantage. New Delhi: Tata McGraw-Hill Read More