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Using Perceptual Maps in Marketing Simulation Summary Case Study

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Updated: Dec 20th, 2019

The simulation situation described exists in three main phases. The first step involves the identification of all the relevant parameters, and presumably, it is the critical phase.

The Thorr Motorcycles, though not viewed as the most advanced and modern company, still has its loyal customers who are willing to run business with it. The main parameter for the products’ success in the market is contemporariness. If the good is old-fashioned and lacks modernity, only a few people will be willing to buy it (Anderson & Beveridge, 2004).

Derived from the above framework, it is advisable that the prices of the company would be constantly maintained, while the brand would be promoted through the internet and other modern way. Though this may cut on the returns, it is still important to follow these guidelines.

Company owners should also reposition the product in the market so that the planned customization of the same would achieve a success. The new Thorr motorbike as opposed to the old one should demonstrate a high level of quality and improvement in terms of the components making it up (Anderson & Beveridge, 2004).

The users should be able to recognize the brand as the motorbike’s power, steering, controls and most of all the style and structure, though changed and improved, should be easily recognizable. If the users distinctively note a clear difference in the motorcycle of a new collection due to its new repositioning, then the result is said to be fully achieved (Armstrong, 2009).

The second phase of the simulation model will incorporate the decision on whether to come up with a entirely different type of a motorbike through innovation or to reposition the existing stock production; the conclusion is derived from the survey carried out.

The old motorbike should be made competitive in the market so that the customers would be interested in buying it so that the sales of the company could be realized for profitability. The perception of the buyers in the past also leads to the loss in the market share of the company; therefore, due to withdrawal of the customers, the organization considers whether to establish a new product or reposition the old one.

Considering the customers involved, the target market is comprised of the youth as it was defined by the management, thus a decision made concerning a new product should meet the needs and expectations of the young people. The driving factor is that the new product should be up to date and have the features demanded by the target market (Armstrong, 2009).

It is also considered that the youth prefer everything revolutionary, and if not satisfied with the design, quality and brand name, then they will not certainly opt for the product but will search for its closest substitute.

The youth even pay higher prices in case the products meet their desire, and they feel connected with it. In addition, due to development of a new style, a new model will be more preferred than the old one; however, due to the name, there will be a connection with the brand as well.

Based on the surveys conducted on the customers and comparisons made with the reference to the sales records, a perceptual parameter is developed. According to research, sales were realized to be failing because of the small customer base which was majorly comprised of the old generation.

The new motorcycles’ specifications indicate dissatisfaction among a group of clients, majorly the youth, this is evident from a low sales turnover and negative feedback from customer surveys. Through the recommendation on a new product launch and customization, a product developed is attractive to customers of both generations, and the only remaining step is intensive advertisement using the online, internet and gatherings.

Relationship between differentiation and positioning

As it is highly notable the intransitive of the relationship exists between product differentiation and positioning. Differentiation involves the introduction of new and unique features of a product making a product exhibit significant differences contributing to its competitive advantage.

“The aspect of differentiation in our case was to create a product that would appeal to both the young and old generation so as to bust on sales” (Armstrong, 2009). Simulation methods in use entail design, pricing and quality of services offered.

Product positioning, on the other hand, depends on the customer’s perception. Therefore, it is necessary to create the same image in the minds of the targeted customer so they would be able to favor the product offered. The old motorcycle lacked contemporariness and did not meet to the modern operations and needs, and this became the leading cause of deterioration in sales.

Product position and differentiation are like a brother and a sister since they share a lot of common features. The major aim as to why businesses come up with new and many products is to achieve the differentiation strategy. In our case, the motorcycle was to be differentiated in terms of design and shape, in order to meet the customer needs.

After this, the customer must also be made aware of the developments and innovations through the relevant advertisement means. Differentiation influences and changes the customer’s perception of a product hence support positioning of a product.

Effect of the product life cycle on marketing

In our case, differentiation did not impact much on repositioning as there was not much differentiation; therefore, advertisement was not expected to yield much in terms of repositioning the product as the research revealed that though the differentiation had not been done appropriately, the sales did not increase much.

The underlying facts are that the simulation methods used did not support repositioning product advertisement and service.

The first and foremost for proper repositioning should be a good differentiation through the proper procedures since the lifecycle of any product has a significant impact on their marketing components. For instance, products in introduction stage should not be differentiated but only focus on brand image development through affordability in prices and distribution.

On the other hand, if the product happens to be on the declining stage, its supply in the market should involve reducing its production in the market, declining prices, and distribution networks should decrease to reduce supply according to repositioning methods.

Our case study company is considered to be at maturity stage; at this stage, the minor changes are normally conducted to a product to achieve differentiation. The product is, therefore, expected to reach a decline stage soon, and its repercussions should be factored in during simulation.


Cruise Thorr motorcycles, as a result of intensified restructuring and reformation as well as the struggles involved to differentiate the product and reposition in the market place, attained great results in the form of increased market share, improved customer base, hence the sales have busted, and there is ultimately consistent profit growth.

This is likely to result in the enormous growth of the company in the near future and even expansion into other business.

References List

Anderson, P. H., & Beveridge, D. (2004). MERLIN: A marketing simulation. New York: McGraw – Hill.

Armstrong, G. (2009). Marketing: an introduction ([European ed.). Harlow: Financial Times Prentice Hall.

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