The intent of this analysis is to evaluate the simulations involving perpetual mapping for the CruiseThorr and RRoth motorcycles, the latter model launched as part of this simulation. Each of the situations are described, followed by a recommended solution and results achieved. Additional questions are also answered at the end of this analysis pertaining to product differentiation, product repositioning and product lifecycles, Analysis of Scenario-based Simulations The initial situations, recommended solution and results of each iteration of the simulation are presented and analyzed in this section. Situation Analysis The first simulation begins with the CruiseThorr losing market share as younger buyers don't have the high disposable income to afford it The 21 – 35 year old age group is interested in motorcycles yet cannot afford the CruiseThorr, and also find the model to be behind the times in terms of their taste. Compounding this challenge is the primary target market aging and not replacing their motorcycles as often. The designs have also gravitated to the needs of the older riders, which are not as attractive to the younger, more affluent riders the brand is attempting to attract. In addition, quality is a highly valued attribute of motorcycles in general and especially valued in the higher-end units. Harley-Davison is a very powerful brand based on their ability to combine extreme freedom with exceptional safety of their motorcycles and the experiences they deliver (Bachand, 1988). CruiseThorr enters the first iteration of the simulation with a motorcycle perceived as being very expensive, safer than many others in its class with a product design at parity with the market. For all these strengths the lifestyle image the CruiseThorr portrays is older than the target market the company is attempting to sell into. Recommended Solution The recommended strategy put heavy emphasis on Lifestyle Image (9), Quality Engineering (8) Service Offerings (7) and Price (5). Results The CruiseThorr exceeded the median average for Lifestyle Image by a very wide margin in addition to Product Design and Styling. The perceptual map showed that the CruiseThorr fell far behind on Safety and Price however. The unbalanced nature of the perceptual map showed how emphasis one attribute over another can completely change the equilibrium of a product's perceptual map. The use of perceptual maps is invaluable in defining the optimal balance of positioning attributes over time (Hooley, 1979). There needs to be a revamping of the product strategy to better manage these dimensions of the product's perceptual map. Situation Analysis The CruiseThorr has continually experienced dropping market share and a battle for mindshare with the younger potential customers. The repositioning efforts from the past iteration are not working. The company faces the decision to either reposition the CruiseThorr or launch a model specifically designed for the needs of the younger motorcycle buyers. Recommended Solution The decision is made to launch a new motorcycle, the RRoth. This specific model will be priced in the $21,000 TO $23,000 price range, be sold through distributors, and promoted through a wide variety of events. These promotional events include sponsor events including Daytona, offer insurance and protection plans on the new model, offer free test ride, hire celebrities as endorsers and publicize through Hollywood films. Additional Services to be include Training to Dealers, Club Membership, Financial Services and Services to Owner Groups. This is very comprehensive series of enhancements to the traditional product mix of any new product introduction activities. The combined effects of marketing mix factors can balance a perceptual map over time if they are consistently and thoroughly applied to the specific products and calibrated to the significant changes that happen in customer bases and throughout distribution channels at the same time (Bijmolt, Wedel, 1999).
Perceptual Mapping
Analysis of the CruiseThorr Perceptual Map and Market Positioning
The intent of this analysis is to evaluate the simulations involving perpetual mapping for the CruiseThorr and RRoth motorcycles, the latter model launched as part of this simulation. Each of the situations are described, followed by a recommended solution and results achieved. Additional questions are also answered at the end of this analysis pertaining to product differentiation, product repositioning and product lifecycles,
Analysis of Scenario-based Simulations
The initial situations, recommended solution and results of each iteration of the simulation are presented and analyzed in this section.
Situation Analysis
The first simulation begins with the CruiseThorr losing market share as younger buyers don't have the high disposable income to afford it The 21- to 35-year-old age group is interested in motorcycles yet cannot afford the CruiseThorr, and also find the model to be behind the times in terms of their taste. Compounding this challenge is the primary target market aging and not replacing their motorcycles as often. The designs have also gravitated to the needs of the older riders, which are not as attractive to the younger, more affluent riders the brand is attempting to attract. In addition, quality is a highly valued attribute of motorcycles in general and especially valued in the higher-end units. Harley-Davison is a very powerful brand based on their ability to combine extreme freedom with exceptional safety of their motorcycles and the experiences they deliver (Bachand, 1988). CruiseThorr enters the first iteration of the simulation with a motorcycle perceived as being very expensive, safer than many others in its class with a product design at parity with the market. For all these strengths the lifestyle image the CruiseThorr portrays is older than the target market the company is attempting to sell into.
Recommended Solution
The recommended strategy put heavy emphasis on Lifestyle Image (9), Quality Engineering (8) Service Offerings (7) and Price (5).
Results
The CruiseThorr exceeded the median average for Lifestyle Image by a very wide margin in addition to Product Design and Styling. The perceptual map showed that the CruiseThorr fell far behind on Safety and Price however. The unbalanced nature of the perceptual map showed how emphasis one attribute over another can completely change the equilibrium of a product's perceptual map. The use of perceptual maps is invaluable in defining the optimal balance of positioning attributes over time (Hooley, 1979). There needs to be a revamping of the product strategy to better manage these dimensions of the product's perceptual map.
Situation Analysis
The CruiseThorr has continually experienced dropping market share and a battle for mindshare with the younger potential customers. The repositioning efforts from the past iteration are not working. The company faces the decision to either reposition the CruiseThorr or launch a model specifically designed for the needs of the younger motorcycle buyers.
Recommended Solution
The decision is made to launch a new motorcycle, the RRoth. This specific model will be priced in the $21,000 TO $23,000 price range, be sold through distributors, and promoted through a wide variety of events. These promotional events include sponsor events including Daytona, offer insurance and protection plans on the new model, offer free test ride, hire celebrities as endorsers and publicize through Hollywood films. Additional Services to be include Training to Dealers, Club Membership, Financial Services and Services to Owner Groups. This is very comprehensive series of enhancements to the traditional product mix of any new product introduction activities. The combined effects of marketing mix factors can balance a perceptual map over time if they are consistently and thoroughly applied to the specific products and calibrated to the significant changes that happen in customer bases and throughout distribution channels at the same time (Bijmolt, Wedel, 1999).
Results
The CruiseThorr is priced too high for the market, leading the company's senior management to reposition the price at between $13,000 to $15,000. Having spent $12,750,000 on the product launch it will take 850 RRoth units sold through distribution to just pay for the product introduction. This will be exceptionally challenging as many distributors have multiple motorcycle lines they carry, in addition to having strong bases of service and support revenue they rely on for monthly revenue streams. Additional iterations of the product strategy and resulting impacts o the perceptual mapping of the product line are needed to ensure more congruent, profitable mapping to the
1. 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? Why or why not?
Differentiating a product must begin with the product itself, and must be driven by the innately different attributes and the experiences it delivers. Successful product positioning is predicated on aligning product features to the specific needs, wants and preferences of a target market or audience segment (Hooley, 1979). Product positioning cannot be defined through promotion or advertising alone; it must emanate from the innate attributes of the product itself. Positioning other the other hand is more oriented towards creating a perceptual identity for a given product and sustaining it through continual investment and reinforcement of core messaging (Hooley, 1979). Positioning can often be accomplished through the use of the marketing mix for example.
Throughout this simulation the nuances and complexities of getting product positioning right were shown in the initial redesign efforts on the CruiseThorr followed by the unsuccessful launch of the RRoth. Both examples show how difficult product positioning is even with massive relative spending within a company deliberately focused on these strategies. These simulations showed that product positioning and the repositioning of a product once in the market are exceptionally difficult and take great insight into customer behavior, needs, wants and preferences. All must be orchestrated for a successful product positioning strategy to be implemented, and for a product to define a defensible position in its core markets.
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