Thorr Motorcycles

989 WordsApr 24, 20064 Pages
Background of Situation Thorr Motorcycles is a company that manufactures 200,000 motorcycles a year. It also licenses T-shirts, shoes, leather goods, toys, and other consumer items. The company currently has a high-brand image manufacturing high-end motorcycles and owns approximately forty percent of market share. The challenge for Thorr is that the industry is growing, but sales of its high-end product are decreasing. The reason for this loss of market share is that the target customers of its high end product is growing older, and younger people do not identify with the brand image of Thorr. In addition, Thorr is a high product and younger people do not have the large disposable income necessary to support the brand.…show more content…
Repositioning the Products and My Expectations Yes, the repositioning of the product produced the survey results that I expected. However, I think that the simulation could have been improved. Impact of Product Life Cycle on Marketing The impact of product life cycle on marketing is that corporations must always plan products and offerings according to the life cycle. Especially in the durable goods market like motorcycles it is imperative than a manufacturer know the product life cycle in order to maintain market share or grow. In order to maximize life cycle revenues the company must maximize revenues and profits from all sources including warranties, spare parts, and accessories. Service is an integral part of a long product life cycle. One of the specifics I would like to have seen in the simulation is the impact of leasing versus financing options. One of the great things that the automobile industry has done in the last several years through leasing programs is consistently shortened the life cycle of their products. In the sixties when the automobile industry created longer term, financing the amazing result was that product life usage extended several years. It was not until dealers started offering leasing options that the product life cycle shortened again by several years in the late eighties and early nineties. I feel that the Thorr simulation could have better execution. First, the simulation gives
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