Beruflich Dokumente
Kultur Dokumente
EXECUTIVE SUMMARY:......................................................................................................................................... 2
INTRODUCTION:................................................................................................................................................... 3
PRODUCT CATAGORY:....................................................................................................................................... 3
ADVANTAGES:................................................................................................................................................... 4
MAJOR BRANDS:................................................................................................................................................... 4
OBJECTIVES:........................................................................................................................................................ 5
RESEARCH METHODOLOGY:................................................................................................................................. 5
QUANTITATIVE RESEARCH:............................................................................................................................... 5
FOCUS GROUP:.............................................................................................................................................. 5
SURVEY TOOLS:................................................................................................................................................ 6
ASKED QUESTIONS:.......................................................................................................................................... 6
DECISION MAKING FACTORS AND AVERAGES:..................................................................................................... 8
PERCEIVED RATINGS:........................................................................................................................................... 9
MARKETING SEGMENTATION:............................................................................................................................. 11
DEMOGRAPHIC SEGMENTATION:..................................................................................................................... 12
PSYCHOGRAPHIC SEGMENTATION:.................................................................................................................. 12
ECONOMIC SEGMENTATION:........................................................................................................................... 14
ADOPTER CATEGORIES:..................................................................................................................................... 15
MARKET SHARE OF THE INDUSTRY AS A WHOLE:.............................................................................................. 16
MODELS MARKET SHARE:............................................................................................................................... 17
BCG MATRIX ( Boston Consultant Group):.......................................................................................................... 18
AS A WHOLE:.................................................................................................................................................. 18
SUZUKI:.......................................................................................................................................................... 19
TOYOTA :......................................................................................................................................................... 19
HONDA:.......................................................................................................................................................... 20
MARKETING ORIENTATIONS APPLIED:................................................................................................................ 20
1.
2.
INSIGHTS:.......................................................................................................................................................... 21
RECOMMENDATIONS:......................................................................................................................................... 22
BIBLIOGRAPHY:.................................................................................................................................................. 22
EXECUTIVE SUMMARY:
This is a group report mainly based on secondary data. This report contains the description about our product
CAR and its market. The description of the market consists of the number of customers i.e one which use cars
and the ones which do not use cars.
Further the report also contains some of the primary research data, the purchase preference criteria of buyers
when they buy a CAR. These factors were gathered from the survey. The graphical representations of all the
statistics are given in the report along with the insights taken from the surveys.
The product market has been divided into different segments in order to know the customers more accurately and
to help simplify the operations. The segmentation includes, DEMOGRAPHIC, PSYCHOGRAPHIC and ECONOMIC
SEGMENTATION. The main purpose of the segmentations is to see the effects of different customers separately
according to gender, their thoughts or way of thinking and according to their household incomes. These give us the
information that which cars do people want to buy and what is the average income of the customers in the market.
we deduce the target market from these surveys.
There are different types of people that adopt a product. The report also consists of different ADOPTER
CATOGARIES and the number of people that fall in these categories. Following the results of the survey we find
that LAGGARDS exist more in todays market i.e. people buy products when it becomes a tradition.
The market detail of the product contains the market share and the growth rates of different car companies/ brands.
This research is based on the secondary data. BCG matrix (Boston Consultant Group) of the CAR industry as a
whole and of three main car companies/brands i.e TOYOTA, SUZUKI & HONDA is also discussed. The main
reason for these companies to be on top in the car industry is the lack of the dealerships in the industry. Suzuki has
the highest market share in the car industry due to its low price mehran.
MARKET ORIENTATIONS are applied on our product category, and based on the secondary research companies
which follow these categories are also stated along with the description of these orientations.
INTRODUCTION:
PRODUCT CATAGORY:
A car is a wheeled, self-powered motor vehicle used for transportation. Most definitions of the term specify that
cars are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels,
and to be constructed principally for the transport of people rather than goods. The year 1886 is regarded as the
birth year of the modern car. In that year, German inventor Karl Benz built the Benz Patent-Motorwagen. Cars are
equipped with controls used for driving, parking, and passenger comfort and safety. New controls have also been
added to vehicles, making them more complex. Examples include air conditioning, navigation systems, and in car
entertainment. Most cars in use today are propelled by an internal combustion engine, fueled
by deflagration ofgasoline (also known as petrol) or diesel.
ADVANTAGES:
Warranty like the rest of it, the new cars warranty is untouched. You can buy warranties for used cars or go the
certified pre owned route, but the best warranty you can getwithout paying extrawill be the one that comes with
a new car from the manufacturer.
Latest Gizmos the newer the car, the more modern the geeky tech thats packed inside. Multimedia and
navigation interfaces are constantly evolving and improving, so if you have to have the latest in gadgets (and dont
want to add them yourself post-factory) the selection will be better in the new-car showroom.
Safety As vehicle safety laws become ever more stringent, automakers are forced to change the way vehicles
are built and the safety systems with which they are equipped. Some form of tire pressure monitoring is now
mandatory on all vehicles sold in the U.S., and by 2012, stability control will be, too. Other technologies that are not
mandated, like blind-spot monitoring systems, side curtain airbags, adaptive cruise control, and brake assist are
becoming more prevalent on less expensive vehicles as their associated costs come down.
Higher Fuel Efficiency and Lower Emissions Again, partly thanks to Big Brother, cars are largely getting more
fuel efficient, even while simultaneously getting more powerful. The newest crop of diesels is cleaner than ever
before, and choices in the hybrid segment are growing, too, if thats your thing.
Financing Banks offer lower financing rates on new vehicles because the vehicles are inherently worth more
and have not already been hit by depreciation. Keep in mind that, when the lower APR still applies to a larger sum,
your payments or total cost may still be higher. But if you plan to finance, check your deals before buying. The
cheaper car might not turn out to be the better deal in the long run.
Maintenance some new cars, mainly those from luxury marquees, include free scheduled maintenance for a
certain amount of time or mileage. This built-in cost saving should be considered in the final price analysis if
Applicable..
MAJOR BRANDS:
Honda
Toyota
Lamborghini
Audi
Mercedes
BMW
Mitsubishi
OBJECTIVES:
This secondary data was collected to get all the information about the customer insights about our product. We
wanted to know our number of customers in the market, there purchase preference criteria which we further
discussed as the rankings, the consumer behavior was also discussed. Different adopter categories were also
seen. The main objective was to know the market share of the companies and the positions of different car
companies in the industry on the basis of their market share and the growth rates. The summary of the objectives
of the report is:
Consumer behavior
Adopter categories
Market shares
RESEARCH METHODOLOGY:
There are two types of methodologies
Qualitative research
Quantitative research
QUANTITATIVE RESEARCH:
FOCUS GROUP:
The survey was conducted mainly from the people who were supposed to use cars the most. The focus group
mainly includes students and the working population. The main respondants were from within the university and the
friends and family.
RESPONDENTS PROFILE
RESPONDEN
T
NAME
BUYING
CRITERIA
CONTACT DETAILS
Khan3871@gmail.com
Zubair_10@icloud.com
NO.
1.
2.
Khubaibzafar
Zubairawan
3.
4.
5.
Tayyab
Hamzanaeem
Haider
6.
Ahmad mansoor
7.
Irfanmalik
8.
Humayunzafar
Budget (price)
Price will be on
top, then comfort
Model
Price
Engine capacity,
mileage
Should be
comfortable,
mileage
Mileage first, then
engine
Price, brand
9.
10.
11.
12.
Bilal
Shuja u rehman
Qazishehryar
Majid sultan
Price, engine
Brand
Shape, colour
Brand, price
Tayyab_30@hotmail.com
Hamxa.naeem@gmail.com
King_hdr@hotmail.com
Ahmad.mansoor14@hotmail.c
om
Malik.irfan41@yahoo.com
Humayun_zafar14@yahoo.co
m
Bikerz25@yahoo.com
Sujarehman51@yahoo.com
Qazi.shehryar16@gmail.com
Majidsultan36@gmail.com
SURVEY TOOLS:
At the beginning some of the questions were asked orally i.e. interview survey was conducted at first for the sake of
the primary research. Then the questionnaire was used to conduct the survey for the secondary information. Then
answers of the people were used to deduct the results. For the collection of secondary data internet and other
electronic sources were also used.
ASKED QUESTIONS:
The questions about the important factors while buying laptops and the brands that people used were asked in the
primary research surveys.
Further respondents were asked questions about their thoughts about buying luxury cars and if they are the
enviornment friendly car lovers. We also asked them questions about their household incomes so that we can
determine the target market of the industry.
FACTOR 1:
(PRICE)
zubai
r
3
irfan
7
hamz
a
4
shuja
6
ahmad
8
shehry
ar
4
tayyab
2
husna
in
6
majid
1
khub
aib
3
humay
un
7
AVERAGE=SUM/11
shuja
5
ahmad
1
shehry
ar
2
tayyab
1
husna
in
1
majid
2
khub
aib
1
humay
un
1
AVERAGE=SUM/11
shuja
1
ahmad
3
shehry
ar
1
tayyab
4
husna
in
2
majid
3
khub
aib
2
humay
un
8
AVERAGE=SUM/11
shuja
3
ahmad
2
shehry
ar
5
tayyab
8
husna
in
3
majid
5
khub
aib
5
humay
un
6
AVERAGE=SUM/11
hamz
a
7
shuja
4
ahmad
7
shehry
ar
3
tayyab
5
husna
in
5
majid
4
khub
aib
4
humay
un
5
AVERAGE=SUM/11
hamz
a
shuja
ahmad
shehry
ar
tayyab
husna
in
majid
khub
aib
humay
un
4.
FACTOR 2: (COMFORT
OF CAR)
zubai
r
1
irfan
1
hamz
a
3
1.
FACTOR 3:
(MODEL)
zubai
r
6
irfan
5
hamz
a
1
3.
FACTOR 4: (ENGINE
CAPACITY)
zubai
r
4
irfan
2
hamz
a
6
4.
FACTOR 5: (MILEAGE)
zubai
r
2
irfan
8
4.
FACTOR 6:
(BRAND)
zubai
r
irfan
AVERAGE=SUM/11
4.
irfan
3
hamz
a
5
shuja
7
ahmad
6
shehry
ar
8
tayyab
7
husna
in
6
majid
6
khub
aib
8
humay
un
3
AVERAGE=SUM/11
shuja
8
ahmad
5
shehry
ar
7
tayyab
3
husna
in
8
majid
8
khub
aib
6
humay
un
4
AVERAGE=SUM/11
FACTOR 7:
(SHAPE)
zubai
r
5
5.
FACTOR 8: (COLOUR)
zubai
r
8
irfan
6
hamz
a
8
AVERAGES
Price
4.6
Comfort of car
1.7
Model
3.3
Engine capacity
4.5
Mileage
4.9
Brand
4.6
Shape
5.8
Color
6.5
These factors were listed down in the ascending order. The criteria of the decision was that the factor with the least
average is considered to be the most important, and one with the highest average is considered to be the least
important.
6.
7
6
5.8
4.5
4.6
3.3
3
2
4.6
1.7
PERCEIVED RATINGS:
People rated these companies in accordance with the attributes.
1. Suzuki
2. Honda
4.9
6.5
3. Toyota
4. Mercedes
5. BMW
6. Lamborghini
7. AUDI
MARKETING SEGMENTATION:
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets
of consumers, who have common needs and priorities, and then designing and implementing strategies to
target them. Market segmentation strategies may be used to identify the target customers, and provide
supporting data for positioning to achieve a marketing plan objective. Businesses may develop product
differentiation strategies, or an undifferentiated approach, involving specific products or product lines depending
on the specific demand and attributes of the target segment.
This data for market segmentation is from 80 respondents
DEMOGRAPHIC SEGMENTATION:
This segmentation had questions about what gender group mostly uses cars, males or females. The answers
came out to be the expected ones that is:
Category
Percentage
Male
65%
Female
35%
DEMOGRAPHIC SEGMENTATION
MALES
FEMALES
35%
65%
PSYCHOGRAPHIC SEGMENTATION:
It contained questions about the thought processes, attitudes, taste and other personality attributes
according to which people buy a product. Our psychographic segmentation survey included questions like:
Percentage
Yes
62.5%
No
37.5%
Percentage
Yes
67.5%
No
25%
7.5%
no
7%
38%
25%
63%
68%
ECONOMIC SEGMENTATION:
This includes the information about the household income of the respondents. This further helps us to identify our
target market.
Household income
Percentage
<Rs. 30000
1.25%
Rs.30000-50000
20%
Rs.50000-80000
40%
Rs.80000-150000
21.25%
Rs.150000-250000
7.5%
>Rs.250000
2.5%
ECONOMIC SEGMENTATION
<Rs.30000
Rs.50000-80000
Rs.150000-250000
Rs.30000
Rs.80000-150000
>Rs.250000
8% 3% 1%
22%
23%
43%
ADOPTER CATEGORIES:
Classification of individuals based on their willingness to try out a new innovation or new product.
Adopter categories were first described by sociologist Everett Rogers in his landmark book "Diffusion of
Innovations" published in 1962. There are five adopter categories:
Innovators,
Early adopters,
Early majority,
Late majority
Laggards.
Percentage
Innovators
17.5%
Early Adopters
15%
Early majority
16.25%
Late Majority
13%
Laggards
38.25%
Adopter categories
Innovators
Late Majority
Early Addopters
Laggards
Early Majority
18%
38%
15%
13%16%
MARKET SHARE:
Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific
entity. Market share is said to be a key indicator of market competitivenessthat is, how well a firm is doing
against its competitors.
As whole we see three main players in the car industry in terms of their market shares, those are HONDA,
TOYOTA, SUZUKI, other companies also cover the graphs but these are the main ones.
The pie chart describes it more efficiently.
MARKET SHARE
14%
33%
25%
28%
SUZUKI
TOYOTA
HONDA
OTHERS
51%
14%
13%
11%
11%
COROLLAS
CIVIC
SUZUKI
MEHRAN
HONDA CITY
OTHER
MODELS
Star
High
AS A WHOLE:
Suzuki,
BMW,
MERCEDES
Low
Cash cow
HONDA
High
??
Question mark
TOYOTA
Dog
NOT REALLY
Low
We also separately found out the market shares and growth rates of the different car companes to add value to our
research work.
Star
High
1. SUZUKI:
SWIFT
MEHRAN
Cash cow
Low
Question mark
BOLAN,ALT
O CULTUS
Dog
APV, LIANA
High
Low
Low
High
2. TOYOTA:
Star
COROLLA
(20% M.S)
Cash cow
HILUX
(100% M.S ,
8% G.R)
High
Question mark
?
Dog
COROLLA 2
OD
COURE
(1.9% M.S ,
29% G,R)
Low
High
3. HONDA:
Star
HONDA CIVIC
HONDA CITY
Low
Cash cow
HONDA
ACCORD
Question mark
Dog
HONDA CRV
High
Low
The Selling Concept: Consumers will not buy enough without a large scale selling and promotion effort
3.
e.g. HONDA
TOYOTA
We can say that these examples suit this orientation in a way that Honda has a huge scale selling mostly because
of REBORN. And Toyota also has sales and also advertising a lot as in UFONE advertisements now a days.
4. The Marketing Concept: Focus on satisfying the needs and wants of target markets.
e.g.
BMW
MERCEDES
The marketing concept usually consists of luxury cars companies as they provide as much comfort as their
customers need, and try new innovations.
5. The Societal Marketing Concept: Deliver value to customers to improve their AND the societys well
being.
e.g.
INSIGHTS:
The insights that we gather from the primary research are these that Comfort of the car is considered to be the
most important decision making criteria when people buy a car.
The DEMOGRAPHIC segmentation deduced the results that MALES are thought to buy more cars and people who
answered FEMALES gave the reason that females who are totally independent, or earn separately afford cars.
PSYCHOGRAPHIC segmentation revealed that Luxury car lovers are usually the people with high incomes.
Moreover, People do consider environment safety while buying cars but Budget also counts as environment
friendly cars are expensive.
The survey about the income levels or the house hold incomes of the respondents revealed TARGET MARKET to
be people with RS. 50000-80000 as income.
Further, coming to the adopter categories we gather the insights that People earning more are innovators and
sometimes early adopters as they are more likely to take risks. Middle income population is usually late majority or
laggards. And according to our survey laggards are in majority.
The calculated market share of the companies is based on the peoples perception of overpriced
brands/companies. Here Suzuki has highest market share due to its low prices, Suzuki mehran is the main reason
for its high market share.
The main reason why we see these three companies (Suzuki, Honda and Toyota) in the market is the lack of
variety of dealership for middle class. Taxation policies by the officials keep other automakers to establish
dealerships.
RECOMMENDATIONS:
Companies should consider comfort of the car more than raising the prices, this would help them increase
their sales and get value from customers.
Companies should focus on this target market and produce cars affordable for them to increase their sales.
BIBLIOGRAPHY:
http://www.investopedia.com/terms/a/adopter-categories.asp
http://en.wikipedia.org/wiki/Market_segmentation
http://en.wikipedia.org/wiki/Car
http://www.pakwheels.com/blog/2014/10/09/automakers-pakistan-market-sharebrand-perception/
http://www.scribd.com/doc/30781744/Pak-Suzuki-Final-Report
http://www.businessteacher.org.uk/dissertations/marketing/the-major-automobilemanufacturing-companies-in-pakistan.php
http://www.slideshare.net/BhanuNegi2/honda-30664513