Title Page

Report Writing

Course Code
Course Title :

: MGT-502

Business

Communication
Submitted To : Sultana, Nigar acult! o" Business Communication #S# $ni%ersit!, Bangla&es' Submitted By Ma'mu& ID Section Venue :B : /'a)a, Bangla&es' : ('on&a)er a'a& Bin

: **2-*+-00+, -MB#-R.

Research Report on in&ing t'e Possi0ilit! o" Creating a 1ocal Car Bran& "or Mi&&le 2ncome Group $tili3ing t'e Worl&4i&e Recognition o" #utomo0ile /esigner 1eepu

Su0mission /ate

Friday, *2 #ugust, 20** (Time: 4:00 pm )

August 12, 2011 Marketing Research Nigar Sultana Faculty of Business Communication. ASA ni!ersity, "haka

Subject: Final re#ort on $Fin%ing the #ossi&ility of creating a local car &ran% for mi%%le income grou# utili'ing the (orl%(i%e recognition of automo&ile %esigner )ee#u* Dear Madam, It is a great pleasure to present to you the final report on Finding the possibility of creating a local car brand for middle income group utilizing the worldwide recognition of automobile designer eepu! which we ha"e diligently wor#ed on during the entire spring semester$ %e ha"e gained a most interesting & informati"e e'perience while wor#ing for this report$ (ur efforts regarding learning about feasibility and acceptability of a local car brand ha"e not only been fruitful, but it also has gi"en us a new insight into the emergence underta#ing similar #ind of proposals or action plans$ Incorporating "ast amounts of information into a concise report was indeed a challenge for us$ %e earnestly hope that the report will meet the standards that you ha"e set for us$ %e are always a"ailable for further )uery and clarification$

Sincerely, +hon%aker Faha% Bin Mahmu% ,"- 112.1/.00/0 1MBA.R2 Section- B

3a&le of Contents
1.0 ,N3R4" C3,4N55555555555555555555555...1 C3,4N 1.13he ,nce#tion of an Automo&ile Assem&ly 6lant5555555555......1 1.2 7m#o(ering 6eo#le &y &ringing 7conomic 7manci#ation55555.....52 1.0 ,nno!ation into 6ers#ecti!e55555555555555555....552 1./ Contri&ution to(ar%s Social 6rogression5555555555....555.2 1.8 7cological 6ers#ecti!e an% 6o!erty Alle!iation 4##ortunities5555......0 1.9 ni:ueness an% Significance of the Stu%y5555555555555.....0 2.0 S CC7SS S34R;555555555555555555555555..../ 0.0 6R4B)7M S3A37M7N3555555555555555555555...8 /.0 B,< R7S7ARC= > 7S3,4N555555555555555555559 /.1 Su& >uestions5555555555555555555555555..9 8.0 4B?7C3,@755555555555555555555555555.59 8.1 Broa% 4&Aecti!e- 5555555555555555555555.5..9 8.2 S#ecific 4&Aecti!es-5555555555555555555555.59 9.0 SC467 ......................................................................................................................9 9.1 Source of ,nformation-55555555555555555555...5B 9.2 3y#es of ,nformation-555555555555555555555.....B B.0 ),M,3A3,4NS55555555555555555555.5555..5..B C.0 M73=4"4)4<;5555555555555555555555555B D.0 > A),3A3,@7 R7S7ARC=55555555555555555555..C D.1 )iterature Re!ie(- 55555555555555555555555..C D.1.1 S#ecific Fin%ings of the Secon%ary Research555555555555.D D.2 >ualitati!e Research Fin%ings- 55555555555555555510 D.0 F<" (ith some 6rofessionals Re#resenting Mi%%le ,ncome <rou#555.11 10.0 C4NC763 A) M4"7)5555555555555555555.55.10

12.0 > AN3,3A3,@7 R7S7ARC=5555555555555...................5.1/ 12.1 Sam#ling 6lan55555555555555555555....................1/ 12.2 Sam#le Characteristics555555555555.555...................5.1/ 12.0 Sur!ey ,nstrument555555555555555555.....................1/ R7C4MM7N"A3,4NS...........................................................................................18 M7N"A3,4NS..........................................................................................................1B C4NC) S,4N555555555555555555555......................1C A##en%iE 155555555555555555555....................555.1D A##en%iE 255555555555555555555555.....................1D Res#on%ent 6rofile....................................................................................................21 Reference555555555555555555..55555.....................22

1.0 ,N3R4" C3,4N

*he essence of a brand new car, though being a commonly desired utility for almost all members of the middle income group of +angladesh, is still percei"ed as an e'tra"agance for them$ ,eople from this particular group do not typically possess the affordability of a brand new car which ma#es them more s#eptical towards the opportunity of e'periencing the spirit of ownership when they tra"el$ In some cases, an indi"idual or a family may ha"e to sacrifice some of their basic needs if they wish to a"ail their own car$ *he presently pre"ailing culture regarding mode of transportation for most of our population circles around hired auto"ehicles or three-wheelers . automoti"e or human dri"en, public transportations and in a handful of situations self-owned motorbi#es$ /fter a significant period of life dedicated to sa"ing enough money to buy a self-owned car, they cannot opt for a brand new car0 rather almost in"ariably they are compelled to be satisfied with a reconditioned "ehicle, a car that has been used before$ More than 123 of this nominal portion of the country, ha"ing own car or a family car, run a reconditioned car$ 4"en in numerous instances, this minimal accomplishment is largely supported by assistance from different financial institutions imposing huge interest burden on them$ 1.1 3he ,nce#tion of an Automo&ile Assem&ly 6lant *his research loo#s into the applicability as well as acceptability of one of the possible solutions addressing this insufficiency of the targeted middle income group$ *he research offers inception of a local car brand assuming the establishment of a brand new industry of car assembling in this country$ /s the title goes . Identifying the acceptance of a local car brand for the middle income group of +angladesh!, it clearly defines the core issue, which is to find out the le"el of acceptability of a probable local car brand to the targeted middle income group who currently cannot meet the unbearable e'pense of ac)uiring a brand new car$ %hile initiating the research, the researchers came across Mr$ 5izamuddin /wlia eepu, a +angladeshi automobile designer, who has ta#en himself as well as the country to the international stage by ac)uiring a worldwide recognition and global response for his brilliant ideas and fascinating designs$ *herefore, this research also incorporates finding the opportunities to utilize eepu6s achie"ements relating with the basic purpose of the research which is described abo"e$ Subse)uent discussion on the theme will elaborate on the contribution of the study towards economic emancipation of the people, opportunities for inno"ation, social input, en"ironmental protection, direct alle"iation towards po"erty alle"iation and academic inno"ation$

1.2 7m#o(ering 6eo#le &y &ringing 7conomic 7manci#ation *his paper deals with the issue of enabling the middle income group to purchase brand new automobiles$ It also aims to empower people by moti"ating them to a"ail a self-owned mode of transportation which is also beneficial for them from an economic point of "iew$ In most of the cases, people of +angladesh need to bear more than 7823 e'tra of the original price of the car due to hea"y ta'ation on car imports$ *he study considers price ad"antage of this new brand to be one of the most influential factors behind its anticipated success as its price will not include any #ind of import duty at all which will enable the manufacturer to distribute cars at minimum 893 less price$ *his price ad"antage will be attributed not only to the immense prospect of ma#ing people capable of purchasing brand new cars but also to generating a solution to address their budget constraints to meet basic re)uirements of li"ing which ob"iously summarizes the potentiality of the project to generate economic freedom for the country people$ 1.0 ,nno!ation into 6ers#ecti!e *his research project is highly prospecti"e towards bringing inno"ation into perspecti"e to a large e'tent$ +eing one of a #ind, the commencement of an automobile assembly plant will open up new horizon for the country with wide range of opportunities to inno"ate$ *he uni)ueness of the proposal is beyond any doubt$ *he industry can e'plore the technological field of automobile designing$ *his project has enough prospects to be the inno"ati"e approach towards economic progression of the country as it will ensure enormous sa"ings in foreign currency reser"e$ In the course of the implementation of the project we can arrange an inno"ati"e academic approach towards e'ploration of automobile genius of this country who will be groomed and trained by eepu$ *heir in"ol"ement and contribution to this industry will noticeably bring positi"e changes$ *his project is collecti"ely a whole new pac#age of inno"ation and implementation of a project li#e this will encourage people to pro"ide more no"el initiati"es bring further possible illustrations$

1./ Contri&ution to(ar%s Social 6rogression / gigantic industry li#e automobile assembly plant will undoubtedly generate ample amount of employment opportunities for both s#illed and semi-s#illed wor#force which will positi"ely contribute to the social up gradation of the whole nation through alle"iating po"erty and crime$ +esides, as seen from the historical data of numerous instances, creation

of a local car brand results to gradual increase of duty on imported cars which subse)uently sway the interest of the customer base towards the local brand enhancing the uniformity of the society$ For e'ample, the Iranian local car brand Sapa is almost in"ariably the only car dri"en by the whole nation$ *he successful establishment of the proposed industry will be followed by de"elopment in in"estment from the foreign brands who will become interested to set up their own plant in that country ma#ing the society progress conse)uently$ 1./ 7cological 6ers#ecti!e an% 6o!erty Alle!iation 4##ortunities During the )ualitati"e research the researchers conducted a #ey informant inter"iew with 5izamuddin /wlia eepu, apparently who also has )uite similar plans, the researchers successfully re"ealed his intention to bring en"ironmental cautions into consideration$ :e plans to re-use the scrap materials ta#en from old damaged cars, which he has successfully done before$ :e is also studying on minimum carbon diffusion mechanisms for an automobile assembly plant and intends to apply those techni)ues if the proposed project is implemented$ *hese aspects of the project raise no )uestion about the concern on en"ironmental protection$ /s stated earlier eepu also has it in his mind that he will coordinate a professional training and de"elopment program for abundant s#illed and semis#illed human resources dedicated to automobile wor#shops in +angladesh$ *his will profoundly be a large step towards po"erty alle"iation as the learners will be directly selected by eepu to wor# for the Industry$ *his will be incorporated as an academic approach which is completely new and inno"ati"e and will contribute to a large e'tent to the de"elopment of "ocational training and education$ 1.8 ni:ueness an% Significance of the Stu%y *he concept of ,eoples6 ;ar! established successfully in se"eral countries has projected ample opportunities for de"eloping nations li#e +angladesh$ / number of de"eloping nations are trying to capitalize on the numerous opportunities that surround the inception of a local automobile industry$ %ith a handful of progressi"e role models in hand, ,hilippines, <ganda, =ietnam and "arious other de"eloping nations are e'tensi"ely in"esting behind the establishment of this industry$ *he success of ,roton >Malaysia?, Maruti >India? and se"eral other instances has contributed immensely towards their appearance as sound economies around the globe$ *a#ing <ganda as an e'ample of de"eloping nation li#e +angladesh, this research has identified some basic strategies underta#en by the @o"ernment of <ganda$ *hey went into collaboration with @eely Motors to establish a similar set up and also pro"iding

huge facilities in the form of A22 acres of free land, an initial in"estment of <SD 72 Million, 72 years of ta' holiday and a e"en a dedicated port only for this industry enabling people of <ganda to sa"e a minimum of <SD 9222 per car purchased >/lmost AA3 of price of an imported car?$ Moreo"er, as countries li#e India and Malaysia are e'periencing a o"erflow of automobile production compared to demand >almost three times in some cases?, many automobile manufacturers will be interested to in"est in a mar#et li#e +angladesh which has an annual demand of more than 72222 cars$ *he discussion elaborates the significance of establishment of a automobile assembling plant in +angladesh which undeniably supports the issue raised through this research$ / proper utilization of a"ailable resources for the proposed industry is e'pected to contribute positi"ely towards further de"elopment of the nation in e"ery possible aspects$ *his study will only co"er the identification of acceptance le"el of a local car brand among the targeted middle income group which gi"es us the assurance about whether a local car brand will be successful to penetrate the automobile mar#et of this nation$

2.0 S CC7SS S34R; BI do to cars what the fairy @odmother did to ;inderella before she went to the ball$ (nly, none of my "ehicles will turn ugly again by midnight$B *he A9-year old +angladeshi car whiz replied to a ++; correspondent from the depths of his garage while wor#ing on his amborghini$ It is not e"ery day that a +angladeshi has a chance to be disco"ered! but one name that was showcased on Disco"ery ;hannel was 5izamuddin /wlia eepu$ :is uni)ue designs were shown as well as appreciated at different auto shows which too# place all around the globe$ eepu had been wor#ing in automoti"e body design and building technology since 71CC, when he spent se"en years in ;alifornia as a car mechanic$ :e came bac# to +angladesh in 711C and spent most of his time ma#ing new cars out of the bodies of old ones, probably his own adaptation of ,imp My Dide, a popular western car show$ eepuEs fascination towards cars came about when he was a child and went to a car e'hibition in Saudi /rabia$ *he ma"eric# instantly fell in lo"e with a Ferrari$ %hen he grew up to realize that the price tag did not agree with his wallet, he told himself that he would some

design himself a car just li#e a Ferrari$ <nable to get the car out of his head, and unable to afford one, he learnt the fine arts of automobile designs by himself$ In 71C1, he made the eemo-bil, his own "ersion of his dream car the amborghini$ :e then went to create some loo#-a-li#es of Ferraris$ ;ar lo"ers in +angladesh soon got interested in his designs and whene"er someone wanted uni)ue bodywor#s to go o"er their dusty old car frame, e"eryone #new where to go to$ Finally eepu has got some recognition for his distincti"e car-ma#ing "enture not from the go"ernment0 it came from a foreign *= channel$ Disco"ery ;hannel proposed that he build two uni)ue cars within a timeframe$ *he proposed deadline was set at eight wee#s$ *he whole process was to be documented and aired on the Disco"ery ;hannel$ eepu got to wor# and the end results were two beautiful sports cars$ *his whole herculean job was done to perfection by him with a whole wee# to spareF 5e"ertheless, one has to gi"e credit to eepu for achie"ing something that hardly anyone in the world has -- building two cars in se"en wee#s, a feat which e"en shoc#ed +ernie Fineman . the "eteran in the auto trade for nearly half-a-century and who has wor#ed with Dolls Doyce and Gaguar$ ("er the years he got really good at it, but it e"entually struc# him that he didnEt want to fa#e it any more and that he Bfelt li#e a thiefB$ :e wanted to come up with his own designs, allowing his creati"e juices to flow$ eepu has established a association between his designs and nature$ For /wila the end product isnEt the most important thing$ *he actual creation of the piece itself, the construction process that turns scrap into a thing of beauty, is the reward$

0.0 6R4B)7M S3A37M7N3 *he designs created by eepu has worldwide acceptance0 for the creation of a +angladeshi automobile brand targeted towards the middle income group, whether eepu6s recognition can accelerate the acceptability of the brand or not is un#nown$

/.0 B,< R7S7ARC= > 7S3,4N

%ill +angladeshi middle income le"el people purchase the car made in +angladesh$ /.1 Su& >uestions 7$ %hat are the dri"ing factors that achie"e this success 8$ %hat type of car people are using right now$ A$ *o what e'tent affiliation of a foreign established automobile brand can enhance the acceptance le"el of the local brand$ H$ %ill the upper middle and mid-middle income groups substitute their preferences from more established foreign brands >*oyota? to a local brand$ 9$ ;an a local brand capture the potential lower middle income mar#et with a cheaper, due to the ta' ad"antage, yet reliable car$ 8.0 4B?7C3,@7S 8.1 Broa% 4&Aecti!e*o e"aluate the possibilities of +angladeshi middle income le"el people will purchase the car made in +angladesh$ 8.2 S#ecific 4&Aecti!es7$ *o identify where a local car brand will stand competing with other established foreign brands 8$ *o find out to what e'tent a local car brand can capture the potential lower income mar#et with the price ad"antage$ A$ *o find out to what e'tent a local car brand can capture the potential lower income mar#et with the price ad"antage$

9.0 SC467 *he research tries to loo# into the initial stages of establishment of a local car brand and the preferences of the target mar#et$ *he research loo#s into how much will the designer6s design can effect the buying decision of the target mar#et and the factors that are needed to consider before designing a +angladeshi ;ar +rand$

9.1 Source of ,nformation-

7$ (wners of Different ;ar (utlets in Dha#a 8$ Middle Income group based in Dha#a a$ ,ublic Ser"ice holder b$ ,ri"ate Ser"ice holder c$ Self 4mployed A$ +/D=ID/ >+angladesh Deconditioned =ehicles Importer6s & Distribution /ssociation? 9.2 3y#es of ,nformation7$ ocal brand acceptance$ 8$ Durability concerns A$ *he e'tent of re)uirement of a stylish car H$ Features re)uired 9$ ,riority features : price, feature, durability, style I$ +rand features J$ ;oncerns of the designer B.0 ),M,3A3,4NS a$ *he research sur"ey was conducted mainly on the people from Dha#a of re)uired income range$ +uying preferences can be different for different for outside Dha#a$ b$ *he research loo#s at initial preferences$ Further research can ta#e place in creation of a brand image for the local brand$ C.0 M73=4"4)4<; *his study assesses the utility of a local car brand to the middle income group of +angladesh$ *he research is cross sectional by nature$ /t the first phase )ualitati"e research was underta#en$ *his was co"ered through Secondary iterature Sur"ey and ,rimary Kualitati"e /nalysis$ *wo car retailers were inter"iewed as one had the e'perience of dealing mostly with corporate clients and the other ha"ing first hand e'perience of dealing directly with consumers$ *o assess the utility of cars, initially identifying the underlying factors of utility that consumers see# from an e'isting imported car is necessary$ *hereby, matching with those features, additional different features, which came out from a potential consumer F@D,

were tested at different scenarios$ *he F@D participants were of same age group but ha"ing different occupation$ *hus "aried perception of consumers came into scenario$ *o assess all those factors and utilities, a structured )uestionnaire was prepared to test the outcomes of the discussion$ *he )uestionnaire primarily found out the need of a car to the respondent$ *hereby assessing the "alidity of the respondents, the utilities of a car is measured$ D.0 > A),3A3,@7 R7S7ARC= D.1 )iterature Re!ie(iterature on car assembly plants or e"en on cars is a rarity at a national le"el$ :owe"er Secondary data has been considered greatly from international publications$ 1. +angladesh +an# import payments: *he import payments made for importing cars o"er last 9 years$>Import payments /rchi"e: >http:LLwww$bangladesh-ban#$orgL? 8$ Import tariff rates: /djusted tariff rates on the import of different parts and raw materials of automobile assembly of 822C$ >*a'ation Date 5ational +oard of De"enue >5+D? 822C? A$ ;ase study of ,roton: the establishment of the factory of ,roton, re)uired in"estments and bac#ing of the go"ernment, human resource de"elopment$ H$ @eographical mo"ement of new assembly factories and ele"en assembly factors being established in India after 7112, when the go"ernment of the country focused on trade liberalizations and helped the process of foreign collaboration ,ublic ;ar ,rogram>,;,? in ,hilippines where for basic car for the mass public with an under 7822 cc engine was introduced with a price ceiling 9$ @eely ;ollaboration with <@/5D/: the <ganda go"ernment, the ;hinese go"ernment and the car manufacturing company @44 M came under an agreement of setting up a assembly factory in <ganda which will ma#e cars affordable at a range of <SN 72,2220 <SN9222 less than any car a"ailable in the mar#et$ *he go"ernment has gi"en away A22 acre land to the company and also awarded a ten year ta' holiday$ I$ ;ase Study of S/,/: the Irani car brand, locally named as peigan, which after it6s introduction has "irtually entirely substituted its sedan car mar#et of the country$ +rand collaborations in India: India-foreign collaboration ha"e created car brands specifically for Indian mass to ma#e it more acceptable e$g$ Ford has created ford icon$ ist: publication of

J$ =ietnamese car mar#et$> *he /utomobile Industry in =ietnam: Oenichi (hno, =ietnam De"elopment Forum?

Figure- 3he Benefits of 6roton in Malaysia D.1.1 S#ecific Fin%ings of the Secon%ary Research 7$ /ssembly factories e"en enter mar#et where they are producing more than the demand as because the south asian mar#ets with its potential of economic growth should increase its mar#et base in coming years$ >;ase of India? 8$ @o"ernment needs to pro"ide substantial support for the initial establishments and also in accumulating funds$ >;ase of ,roton? A$ @o"ernment has to pro"ide ta' benefits, ta' holidays and decreased import ta'es on raw materials and hea"ily ta' all imported "ehicles$ >;ase of all assembly plants established after 7112? H$ *a'ation study of import tariff rates of car manufacturing sub units show that e"en if the factory has to import all the major sub units such as the engine and the chasis from outside, the car can still ha"e a mar#up price of minimum 893 less than a"ailable cars of the same engine power$ 9$ +angladesh has an a"erage light "ehicle consumption of 72222 units and more ma#ing it "ery eligible to ha"e its own car assembly plant gi"en the economic growth of the country remains stable$

I$ ;ountry looses o"er <SNA22 million of annually for importing cars and an assembly factory can wor# as the potential import substitution$ J$ ;reation of a niche mar#et is possible for lower mid income group who currently cannot afford a car because of high import ta'es and a"ail public transport$ D.2 >ualitati!e Research Fin%ingsIn the ne't phase the researchers conducted the primary )ualitati"e research to identify the fundamental aspects which are e'pected to affect the inception of an assembly plant in +angladesh$ *he findings from primary )uail are elaborated below: +angladeshi people ha"e not yet e'perienced scientific aspects and technicalities >i$e$ /erodynamics? of automobile manufacturing which is a major drawbac#$ / feasibility study needs to be underta#en as well$ /ccording to manage re)uired financial bac# up and land for the huge project will not be less difficult than tac#ling the problems created surrounding the go"ernment legislation$ / professional and dedicated go"ernment body needs to be made functional to monitor PPPPPPPPPPPPPPP$ *he most "ital factor will be that the car has to be economic if it targets the middle income group$ *he authenticity and uni)ueness of a modified car will be one of the most con"incing features, Q%ow Factor6 as )uoted from made car$ *his industry has enough reasons to be called as a Qris#y "enture0 as there will be )uestions raised regarding longe"ity, reliability and )uality of a local brand , so these aspects needs to be addressed most carefully$ eepu feels the need of more automobile engineers which he belie"es needs to be produced more$ :e agrees to train the s#illed and semi-s#illed manpower re)uired for the functioning of the industry$ *he ultimate goal which +angladesh$ D.0 F<" (ith some 6rofessionals Re#resenting Mi%%le ,ncome <rou# eepu considers to meet is to apply the concept of eepu, in case of a locally

Q,eople6s ;ar6 tailored in a way so that it attracts the automobile customer base of

/ focused group discussion with some young professionals, who represent middle income group pro"ided the researchers ade)uate #nowledge on the e'pectations from a local car brand$ *he almost one hour long session was attended by Mr$ Dubaiyat :asan Siraz >M5; 4'ecuti"e?, Mr$ Duhul /min >M5; 4'ecuti"e?, Mr$ /bhishi# ,aul >M5; 4'ecuti"e?, Mr$ Dubaiyyat *ha#ur Dobin >4ntrepreneur?, Mr$ Sha#ib /hmed >,ri"ate Ser"ice :older?, Mr$ /sif 5ewaz >4ntrepreneur?, Mr$ Mostafizur Dahman >,ri"ate Ser"ice :older? and Mr$ *are# /bdullah >M5; 4'ecuti"e?$ Findings from the F@D are listed below: %hen as#ed about the fundamental aspects which they find most significant while purchasing a car their response entailedo ,rice o +rand o Design o Desell "alue o Fuel 4fficiency o 4ngine ,ower o (rigin o Ser"iceability o /"ailability of Spare ,arts %hen as#ed about the preferred origin of a car most of them responded for Gapanese and 4uropean ;ars$ Most of the discussants agreed that their purchasing decision might get influenced when a local car is offered at 893 less price, although a few of them demanded further reduction >up to H23?$ Most of the participants thin# price for a local car should not e'ceed +D* I-J la#h$ %hile as#ed for the re)uired features the following came forward: o Design o Fuel 4fficiency o +uilt in ;5@ 4ngine o 4asy a"ailability of Spares o ,rice

o Ser"iceability o Desell =alue *he re)uired engine power was 7922cc for the most and they e'pect the engine to run more than C #mLltr$ Most of the participants were willing to pay a mar#ed up price for ser"icing as for originality but will not buy a local car if spares are costly$

10.0 C4NC763 A) M4"7)

Origin of the car

ssurance of reliability

Price

Brand Preference

Resell Value

!esi n

Switch to local brand

!esi n acceptance %ransport Cost Acceptability of local brand

Buyin decision chan in ratio !esi nin Local brand

Affordability ran e

Lower incomen iche market Pricin

Leepus Success

Establishment Local Car Brand

Expected Features

%ransport Preference

"iddle #ncome $roup

Feature Preference &ri in Preference

#ncome transport

"aintainability

Preference !ifferences! Sd

!esi n Preference

%ransport Cost

Pride Concerns

%ax Ad'anta e

Brand Preference

"odification Preference !esi ner Effect

12.0 > AN3,3A3,@7 R7S7ARC= 12.1 Sam#ling 6lan *he research, at the )uantitati"e analysis stage, utilized the non-probability sampling techni)ues$ *he basic sur"ey method was door-to-door$ ;on"enience and Snowball sampling techni)ues were used in this sur"ey$ *he total duration of the sur"ey was A days, starting from /ugust 88, 8221 to /ugust 89, 822C$ *he total number of respondents approached was 9J, out of which 92 responded$ /ll of the respondents are employed, either self or publicLpri"ate$ 4ach response was recorded, on an a"erage, in 9 minutes$ *o consider the sample to be an ade)uate representation of the potential mar#et, the sampling frame included respondents of each tire of middle income group and each occupation$ 12.2 Sam#le Characteristics *he sample respondents included around 793 female and C93 male$ *he modal age brac#et was 8C . AJ years$ Most of respondents were from ower tire of the middle income group, who will be the prime beneficial of a +angladeshi ,eople6s ;ar$ 12.0 Sur!ey ,nstrument *he sur"ey )uestionnaire used as data collection instrument had in total 7H )uestions as well as the respondent6s profile$ /t the initial stage, the respondents replied their e'isting transportation scenario$ *hereafter, the need of own car aroused and thus the respondents answered the ne't )uestions considering their own need$ /ll these )uestions were focused to find out the prime utilities of a car and the impact on consumers of a local brand$ / hypothetical scenario of price factor was considered by the respondents and thus the research cross e'amined the percei"ed utilities$ *he ne't section was only for the e'isting car owners to see whether they will switch to the local brand$ *he sur"ey )uestionnaire was ended by e'tracting some sensiti"e issues li#e monthly income and age brac#et$

R7C4MM7N"A3,4NS7$ *here is positi"e small correlation between people6s necessity of ha"ing own car and their income le"el 8$ In terms of buying a new car, purchase decision is based upon >in descending order?: a$ ,rice b$ +rand c$ 4ngine ,ower d$ Fuel 4fficiency e$ Desell =alue f$ Design g$ (rigin h$ Ser"iceability i$ /"ailability of Spares A$ In terms of perception, +angladeshi ,eople prefer Gapanese car most$ H$ If a +angladeshi +rand comes into the mar#et, it has to be "ery much price competiti"e$ *he respondents did not shift much from Gapanese car e"en if the local one was running on a Gapanese 4ngine$ %hen price reduction is done, then only the responses can be shifted towards +angladeshi ;ar 9$ *he respondents belie"e +angladeshi ;ars will not be better than ;hinese (rigin and will at par with the Indian (nes$ I$ ,ride ;oncern regarding the use of a respondents$ ocal ;ar +rand is "ery high among the

J$ Some segments of the people would buy local car brand due to the fact that it helps the national economy C$ *he ,rime *hreat for a +angladeshi +rand to be established is the /ssurance of Deliability$ *he other factors are listed in descending order: a$ 4'isting +rand ,reference b$ Desell =alue c$ (rigin d$ ,rice 1$ For a sustainable +angladeshi +rand of automobile the following factors are needed to be considered according to the order: a$ Fuel 4fficiency b$ ,rice c$ /"ailability of Spares d$ +uilt in ;5@ 4ngine e$ Ser"iceability f$ Design g$ Desell "alue 72$ *he e'pected engine power of a +angladeshi car is 7922 cc 77$ ,eople ha"ing own car now, would li#e to buy a local brand as their second car instead of replacing their e'isting imported one$ 78$ Most of the respondents belie"e that the go"ernment should impose higher ta'es on car imports in order to encourage the local car brand when it will be established$ M45D/*I(5S:

7$ *here is positi"e small correlation between people6s necessity of ha"ing own car and their income le"el 8$ In terms of buying a new car, purchase decision is based upon >in descending order?: a$ ,rice b$ +rand c$ 4ngine ,ower d$ Fuel 4fficiency e$ Desell =alue f$ Design g$ (rigin h$ Ser"iceability i$ /"ailability of Spares A$In terms of perception, +angladeshi ,eople prefer Gapanese car most$ H$If a +angladeshi +rand comes into the mar#et, it has to be "ery much price competiti"e$ *he respondents did not shift much from Gapanese car e"en if the local one was running on a Gapanese 4ngine$ %hen price reduction is done, then only the responses can be shifted towards +angladeshi ;ar 9$ *he respondents belie"e +angladeshi ;ars will not be better than ;hinese (rigin and will at par with the Indian (nes$ I$ ,ride ;oncern regarding the use of a ocal ;ar +rand is "ery high among the respondents$ J$Some segments of the people would buy local car brand due to the fact that it helps the national economy C$ *he ,rime *hreat for a +angladeshi +rand to be established is the /ssurance of Deliability$ *he other factors are listed in descending order: a$ 4'isting +rand ,reference b$ Desell =alue c$ (rigin d$ ,rice 1$ For a sustainable +angladeshi +rand of automobile the following factors are needed to be considered according to the order: a$ Fuel 4fficiency b$ ,rice c$ /"ailability of Spares d$ +uilt in ;5@ 4ngine e$ Ser"iceability f$ Design g$ Desell "alue 72$*he e'pected engine power of a +angladeshi car is 7922 cc 77$ ,eople ha"ing own car now, would li#e to buy a local brand as their second car instead of replacing their e'isting imported one$ 78$ Most of the respondents belie"e that the go"ernment should impose higher ta'es on car

imports in order to encourage the local car brand when it will be established$ C4NC) S,4N *he country can get benefitted through the creation of a car brand and an assembly plant of its own$ *he demands re)uired can be met up by one assembly factory and it can be financially feasible$ *he findings of the research include factors showing price to be the major determinant factor of a buying decision o"er other features and it has to be considered with importance$ *he model shows the inclination of the middle class group towards using a reliable car brand, and price is the factor which only supersedes and brings it under acceptability terms$ /lso the factors relating to pride concerns necessarily pro"e that nationalistic sentiments per"ade within the segment and the brand attribute of the car has to ha"e these features under consideration$ *he basic features demanded with a measurement of utility ha"e been also shown attributing to the basic buildup features of the car$ /lthough feasible, the actual establishment of a plant will need to loo# into factors of collecting capital, training s#illed human resource, designing and inno"ation and most importantly go"ernment6s role under consideration$ *hese aspects can indi"idually be loo#ed into in depth$ ;onsidering the multiple socio-economic benefits +angladesh can potentially recei"e from it with the flip side of sa"ing huge losses of foreign e'change each year used to importing cars, +angladesh should be wal#ing towards creation of such an establishment$ A##en%iE 1 Forking "efinition Working Definition: Mi%%le ,ncome <rou# Middle Income group consists of three segments of income group$ <pper Middle: Indi"idual earning a monthly income of +D* 722,222R822,222 Mid-Middle: Indi"idual earning a monthly income of +D* I2,222R722,222 ower-Middle: Indi"idual earning a monthly income of +D* 82,222RI2,222 Acce#ta&ility

*he )uantitati"e measurement of the number of people substituting their buying decisions between a choice of imported cars and a local brand considering the gi"en "ariables of new pricing of cars$

A##en%iE 2 >uestionnaire K u e s t i o n n a i r e
Sl. !o.

This Questionnaire is Prepared as a part of a Research to Identify the Level of Acceptance of a Local Car Brand to the Middle Income Group of Bangladesh. This research is undertaken by few students of North South University (NSU). A the infor!ation provided here wi be e"tre!e y confidentia and wi be used for Acade!ic Purpose (This Research) #n y. $e re%uest your kind assistance and hope to &et va id infor!ation. Thank 'ou(

,lease <se ST Mar# for the appropriate answer out of multiples

G U (ptional

27$ Is your monthly income in the range of +D* 82,222L- to +D* 822,222L-V M4S 5(

28$ ,lease Dan# the following means of transport by which you tra"el the mostV [1=Most Frequently, 7=Least Frequently] Dic#shaw ;5@ +us 5on /L; /L; Motorcycl Family /utoric#shaw *a'i *a'i e ;arL(wn ;ar

2A$ +eing in your current status, you need to ha"e your ownLnew car .

Strongly Disagree

Disagree

Indifferent

gree

Strongly gree

2H$ For your choice of a car please ran# the following aspects according to your importance[1=Most Important, 9=Least Important] a$ Design b$ 4ngine ,ower c$ (rigin d$ ,rice

e$ +rand f$ Ser"iceability g$ Fuel 4fficiency h$ Desell "alue i$ /"ailability of Spare ,arts 29$ In terms of your preference of (rigin of a car, please ran# the following regions according to your percei"ed reliability[1=Most Preferred, 7=Least Preferred] Gapan ;hina OoreaLMalaysia India +angladesh 4urope /merica

2I$ If the +angladeshi ;ar is running on a Gapanese 4ngine which car you would preferV +angladeshi ;ar Gapanese ;ar It Depends Indifferent

2J$ Is using a car of your country a pride concern to youV

Strongly Disagree

Disagree

Indifferent

gree

Strongly gree

2C$ If you #now that your country will be economically benefited if you buy a local car, will that affect your purchasing decisionV

Strongly Disagree

Disagree

Indifferent

gree

Strongly gree

1$ If you are buying a +angladeshi ;ar, please ran# the ad"antages you would loo# for[1=Most Preferred, 7=Least Preferred] Fuel +uilt in 4asy Desig Ser"iceabilit Desell 4fficienc ;5@ /"ailability ,rice n y =alue y 4ngine of Spares

72$ %hat should be the ideal engine power of a local car brandV More than 7222 cc 7922 cc 7C22 cc 8222 cc 8222 cc 77$ ;onsidering the engine power you preferred in the last )uestion, what should be the ideal fuel efficiency >with /;? for eemobileV

ess than 9 #mLliter

9 #mLliter

I #mLliter

J #mLliter

C #mLliter

1 #mLliter

More than 1 #mLliter

78$ %ould you li#e to see the go"ernment imposing higher ta'es on car import if a local brand is establishedV M4S 5( Indifferent

Please answer the followin questions if you !urrently ha"e your OWN !ar# 7A$ %ould you li#e to sell your e'isting car to buy a new local carV 7H$ %ould you li#e to buy a local car as your second carV Res#on%ent 6rofileM4S 5(

M4S

5(

79$ 5ameW: 7I$ @ender: Male AC$ /ge: 7J$ 7C$(ccupation:

Female

7C-8J

8C-AJ

AC-HJ

HC-9J

9JX

,ublic Ser"ice

,ri"ate Ser"ice

Self 4mployed

<nemployed

71$ Mour /"erage Monthly Income >in the range of?: $%&] ess 82,222- I2,222- 722,222- More *han 91,111 11,111 7H1,111 *han 82,222 792,222 R7F7R7NC7S '(I') '*&+M+&I,- )-.(L-&&-/ Issue H9, December 8229

[In

+angladesh +an# >8229?, Import payments 'r!hi"e, http:LLwww$bangladesh-ban#$orgL 0'/ '((-M$L1 PL')& &+ +P-) I) *2')%', %:I*/O4D @D(<, ,<+ I;/*I(5 %I5*4D 822J-2C, <ganda382<pdate382%I53822J-2C$pdf

Dato6 :$S$Y$ *ahir >7118? %e"elopin 3uman 0apital at P/+&+) :umphrey G$ &3- 2L+$'L '*&+M+&I,- I)%*(&/1 ,'L*- 03'I) , Institute of De"elopment Studies, <5I*4D 5/*I(5S I5D<S*DI/ D4=4 (,M45* (D@/5IY/*I(5 Oenichi (hno, &he 'utomo4ile Industry in ,ietnam, =ietnam De"elopment Forum 5ational +oard of De"enue >5+D? >822C?, &a5ation /ate List Dafaelita /$ Mercado-/ldaba, Mi!ro (tudies6 Philippine 0ar 'ssem4ly (e!tor, DIS;<SSI(5 ,/,4D S4DI4S 5($ 1J-87, September 711J Muri S/D(I, (7ill Formation in Malaysia6 &he 0ase of 8'uto Parts Industry , Southeast /sian Studies, =o7$AI, 5o$A, December 711C