Simulation of Thorr Motorcycle Thorr

Simulation of Thorr Motorcycle

Thorr case study

Three major phases: Analysis

Phase 1 "Where is the thunder" situation

Thorr is positioned at the higher price end of the motorcycle market, with a strong lifestyle-based image. Sales are going down because Thorr's core demographic of older purchasers is now aging out of the market for motorcycles. Younger consumers, with less disposable income, are choosing cheaper vehicles.

Thor must ensure that it has a secure customer base in the future. It must look ahead. However, it does not want to ignore its past, and the value provided by its past successes and reputation for quality.

Additionally, Thor's reputation for providing quality service has become questionable. As service as well as manufacturing quality was once considered a core attribute of the brand, to fully live up to its reputation, it must seek to improve this dimension of the Thorr motorcycle experience as well.

My recommended solution, including why

Emphasize the high-end lifestyle embodied by Thorr for younger consumers. Thorr cannot compete upon price. Quality engineering and services are necessary to emphasize, given that they are an integral component of justifying high-end pricing.

The results

This is correct -- diluting quality would dilute the longstanding reputation of Thorr and Thorr should not abandon the quality-based values that made it great.

Phase 2 "Revving up the marketing" situation

Thorr must be repositioned in the new, younger more price-conscious marketplace as a quality brand.

My recommended solution, including why

Offering financing to younger consumers makes Thorr more affordable. Offering better services and higher, long-lasting quality in a manner younger consumers can afford is an ideal solution to justifying Thorr's higher prices. Promoting the Thorr brand through marketing venues like product placement in Hollywood movies can generate excitement about Thorr.

The results

Demand has increased, due to the new financing strategy. Customer opinions of services provided have improved. Perception of the brand's quality has also improved, due to better product placement in newer and more attractive venues, and improvements in service.

Phase 3 "Revved up" situation

Lifestyle image is even higher than before, as is the perception of quality and service, as well as vehicle engineering. Sales have increased, and even though there is still dissatisfaction with the high price of Thorr motorcycles, offering financing has made them more affordable.

My recommended solution, including why

The company should continue with its current strategy of high quality, high-level service, and maintaining a strong perception that Thorr is a high-quality brand.

The results

The re-positioning has been judged a success. Thorr must continue to build upon its brand image and core attributes in the future, while still staying true to its central lifestyle-related focus.

Summarize the different marketing components addressed in this simulation by answering the following questions:

What is the relationship between differentiation and positioning of products or services?

Differentiation relates to how 'different' the product is from others in the market, in relation to its quality or the value and services it provides. For example, Kashi cereal is differentiated from its 'big name' competitors like Kellogg's by offering a healthier, all-natural type of cereal. Positioning relates to how the brand defines itself: although Pepsi and Coca-Cola are essentially the same type of food item and are not really differentiated, both are positioned slightly differently, one as the 'upstart' beverage, the other as a classic version of cola. Thorr is positioned as a high-end motorcycle, and a luxury brand, much like Lexus in the car market, even though other motorcycles and cars perform the same function of transportation.

Because motorcycles are not viewed as strictly necessary goods, they often are seen as more dependent upon positioning than other types of vehicles. People ride and buy motorcycles to create a certain image for themselves. They are rarely a person's primary means of transportation, and a person who buys a motorcycle is trying to create a particular image for him or herself, rather than merely serve a needed function in his or her life.

Is the repositioning of the product in the simulation as you had expected it to be? Why or why not?

Yes. I decided to position the product as offering better quality services in relation to its competitors, and to offer the option of financing, which proved to be the correct strategy. Repositioning Thorr and competing on price would have damaged its long-standing brand reputation.