CruiserThor Motorcycles' brand repositioning through low-cost product strategy

Cruiserthor

Perceptual maps

Using perceptual maps in marketing: CruiserThor

This paper will review the market situation of CruiserThor Motorcycles and examine how the introduction of a new low-cost motorcycle to its product offerings was able to change the company's brand image. CruiserThor had a market image and price tag commensurate with Harley Davidson or other large, expensive, high-power bikes. Unfortunately, consumer desires are changing and these vehicles are no longer in high demand. At the beginning of the simulation, CruiserThor had to find a way to change with the times, or be left behind its competitors.

Recommended solutions

Using a perceptual map can be helpful because it enables a company to ascertain what the target consumer demographics think about the brand. This knowledge can empower the company to change those associations. Initially, it would seem for the motorcycle company, focusing upon price, lifestyle image, product styling and 'cool' would essential. Younger consumers who could become loyal, lifetime patrons and who could help change the brand image of CruiserThor currently could not afford many of its classic heavyweight bikes. The product styling selected in the future had to lower the cost of the bikes and also project a 'cooler' image. But while these attributes are important, quality engineering and service are equally important. Unlike a cake of soap, people use motorcycles for a purpose -- driving -- and it is essential that customers feel that the company's product attributes supports that purpose.

Results

As well as lowering its prices and creating a new image for its company, CruiserThor must be consistent with its past branding upon quality, and offer additional value through service and higher-quality engineering.

Second phase: Revving upon the market

Situation

Despite changes in its marketing, sales had not improved. The company was considering marketing a new bike to the coveted younger demographic. The marketing manager was worried about compromising the company's carefully cultivated image, but the chief engineer recommended the move, noting that the less expensive bike would be more fuel-efficient. This image of green technology could also help the company win the hearts of younger consumers.

Recommended solutions

Given these factors, it was suggested that CruiserThor launch a new motorcycle aimed at the younger demographic called RRoth. The motorcycle would be lighter, cheaper, more fuel efficient and better for the environment. The bike should be priced relatively low (13,000-15,000) and through offering financing; promoting the bike through Hollywood movies targeted at young people; and training dealers how to market the bike based upon its unique features, the product should be successful.

Results

The results of the simulation were described as a 'great job.' The low cost combined with financing options drew younger consumers while promoting the bike's coolness and 'greenness' (plus its fuel efficiency) generated interest and better 'buzz' for the company overall. More bikes were sold, the company image improved

Phase 3: A roaring success

Situation

After a year it was ascertained as to whether the rebranding was a successful effort. According to market research amongst young men 25-50, CruiserThor was praised as a powerful, high-quality stable motorcycle. Although the motorcycle was not perceived as low cost, it was not perceived as extremely high cost either. The capacity and strength of its engine was praised. However, most respondents said that their motorcycle budget fell into the $13,000-15,000 range and wished to have financing support for the bikes arranged through CruiserThor. All expressed a desire for augmented services. Regarding RRoth specifically, financing options and the price were also highly praised, as well as its attributes. The success of RRoth and the upturn in sales for CruiserThor coincided, suggesting that the positive perceptions of RRoth had had a spillover effect and improved the positive perceptions of CruiserThor in relationship to its competitors.

Recommended solutions

CruiserThor should continue to market low-cost bikes with financing such as the RRoth to suit the needs of the changing demographic base. It should work to improve services while maintaining engine quality. The image of a powerful bike is a successful one for the company, but it must be supported with consumer's perceptions of an equally affordable price tag.

Results

Overall, the marketing changes were successful and sales were up, but the bike's servicing offerings must be 'tweaked' to some extent. The RRoth was successful, because of its perceived enhanced quality and 'cool,' lower price tag, and financing options.

Concluding questions

What is the relationship between differentiation and positioning of products or services? Is the repositioning of the product in the simulation as you had expected it to be? Explain why or why not.

Differentiation and position are critically interlinked, although they might be expected to be distinct entities. CruiserThor's repositioning in the lower-cost youth market required it to differentiate the marketing of its bikes. RRoth was marketed as a different kind of vehicle, for a new generation.

What is the effect of the product life cycle on marketing? What effect did the product life cycle have on the product in the simulation?

At the beginning of the simulation, CruiserThor was in a relatively mature market stage. "At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit" (Product life cycle, 2013, Quick MBA). A 'mature' product must strive to avoid going into 'decline' at all costs. Cruiser Thor was on the cusp of becoming obsolete, but reinvigorated its brand by introducing a new product which individually was still in a growth stage. While companies as a whole go through 'lifecycles' so do individual products, and by introducing new products companies can avoid going into decline.