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Despite the marketing plans attempts to overcome price reductions on the image of the bike, performance results showed that changes such as service or style are often viewed as too superficial to change the customer's perception of an inferior product.
Even so, CruiserThor is still outperforming the competition in terms of sales for the past year.
Phase 3
Market research indicates that CruiserThor is still perceived as an expensive motorcycle, but that is also viewed as powerfully, high quality product.
In the final phase, I assigned lifestyle image a value of 9 to reflect the market research indicating how important this parameter is to CruiserThor's consumers. I gave quality engineering a value of 8 as this is one of the product's core strengths. Further, I continued to emphasize service for the same reasons discussed previously, assigning in a value of 7. Learning the important of price on brand image from the phase 2 simulation, I increased the value for this parameter to 6.
The simulation results indicated that I did a good job on all parameters except for price. Here, I should have been more accommodating for the fact that CruiserThor is more expensive than the competition and used a slightly lower number.
What is the relationship between differentiation...
Product differeniation is the modification of a particular product or service to make it more attractive to a target market. The relaunch of CruiserThor clearly demonstrated that it is possible to differentiate a product using the 4Ps, product, price, place and promotion, in a way that will reposition it in the eyes of consumers. As this mix was adjusted, CruiserThor became more appealing to the new target audience.
What is the impact of the product life cycle on marketing? What impact did the product life-cycle have on the product in the simulation?
The market conditions a product is sold under will usually change over time, but this does not necessearily mean end-of-life for the product provided that marketing responds to the new dynamics. In this simulation, CruiserThor had once been successfully sold to 35- to 50-year-olds. However, this target base was diminishing as these consumers aged. CruiserThor was rescused by changing the product's position so that the younger age groups would find it appealing through adjustments to product, price, place and promotion.
