Car C Report - Specimen 2

8/12/2019 Car C Report - Specimen 2

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The Report

of Car C Launch Study

Poonglim I-want Plus 6091338-1, Seocho-Dong, Seocho-Gu, Seoul, Korea

Tel: (02) 3487-7525 Fax: (02) 3487-7005E-mail: [email protected]

Prepared for Dynamic Motors


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IV. Analyses and summary


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IV-1. Segmentation

n Factor analysis of car-related attributes

n Importance rating of car-related attributes were factor-analyzed. We found following four factors.

n Reliability factor : factors related with no trouble with car, like little trouble, A/S, driving convenience facilities, low noise, etc.

n Performance : attributes related with performances, like Hightest speed, acceleration, and power.

n Image : reputation, image to other people, and design/style.

n Comfort : body size, room capacity, low noise, comfort, etc. which are related with driving comfort.

FactorsAttributes

Reliability Performance Image Comfort

Little trouble

Ease of A/SSafety

Comfort

Reliable make

Driving convenience facilities

Value for price

0.70

0.700.67

0.62

0.57

0.55

0.54

0.38

0.30

0.47

0.42

0.50

Highest speed

Acceleration

Power

Back seat facilities

Used car price level

0.80

0.76

0.63

0.56

0.48

0.37

Reputations

Image to other people

Design / style

Various colors 0.47

0.80

0.77

0.62

0.53

Body size

Room capacity

Low noise 0.50

0.77

0.77

0.52

Table. Factor loading scores


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n Cluster analysis were applied in order to classify respondents according to theirpursuit from cars. It gave following four groups.

n Comfort group : Pursuing comfort and reliability factors.

n Driving group : Pursuing performance-related factors strongly.

n Easy-life group : Pursuing reliability. Cars should not cause any trouble in life.

n Self-expression group : Pursuing image and style.

n Driving group is the largest, comprised of 41% of all respondents.

Factor scores of each segment

-1.5

-1

-0.5

0

0.5

1Reliability

Performance

Image

Comfort

Comfort Driving

Easy-life Self-expression

Size of each segment

Comfort

17%

Driving

41%

Easy-life

21%

Self-

express

21%

IV-1. Segmentation


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IV-1. Segmentation

n Psychographic analysisn Respondents were also clustered based on their psychographic characteristics. We identified three groups.

n Extroverts: have optimistic viewpoints about future. Interested in expressing themselves.

n Self-satisfaction: intelligent, able, and like challenging. But not interested in expressing themselves to others.n Conservatives: have believe in tradition and themselves. Rather pessimistic.

Table. Psychographic factors and related items

Factors Items

Optimism

Sociability

Self-confidence

Conservatism

n Im always confident in what I do.

n Im optimistic on everything.

n I always try to improve my situation.n Id like to take responsibility of a group.

n Car is a symbol of social status.

n Frankly speaking, Id like to show off to others.

n I buy what I want even at high expense.

n I always cares about how others will think of me.

n I believe I have to choose things appropriate formy status or position.

n I believe Im more able than others.

n I think Im more intelligent than others.

n I like excite and challenge.

n Id like to follow recent fashion or trends.

n Im interested in arts, culture or history.

n I like traditional and classical ones.

n I believe I have to choose things appropriate formy status or position.

n I think Im more intelligent than others.

-1.5

-1

-0.5

0

0.5

1Optimism

Sociability

Self-confidence

Conservatism

E xt ro ve rt s S el f- sa ti sf ac ti on C on se rv at iv es

Extroverts

36%

Self-

satisfactio

n

32%

Conservati

sm

32%

* base: 401 respondents


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IV-2. Targeting

n Segmentationn We can define following 12 segments based on two criteria, one from pursuits from cars and another from their psychographic

characteristics.

n Targeting

n Next, we have to find out which segment(s) can be the primary target of Car C. The chart on the right shows purchase intentions ofCar C in each group. (The percentages of respondents who chose Car C to the question which one they would like to buy among CarC and existing models)

n Comfort group and self-satisfaction group show highest purchase intention of Car C. Also self-expression group shows next high

level of purchase intention.

n Driving and Easy-life groups are low in purchase intention of Car C.

Comfort

Driving

Easy-life

Self-Expression

ExtrovertsSelf-

satisfactionConserva-

tism

Purchase intention of C

0

10

20

30

40

Comfort

Driving

Easy-life

Self-

expression

Extroverts

Self-

satisfaction

Conservatism


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IV-2. Targeting

n Targeting

n When we analyze purchase intentions of each cell, we can find:

n Comfort - Self-satisfaction group shows highest purchase intention of Car C. This group would be our primary target group.

n Secondly, self-expression group show next level of purchase intentions. Self-expression groups would be secondary target group.

n These targeting coincides with other results.

n BMW and Benz are strongly associated with performance. Competition would not be easy in Driving group.

n Dynamic Motors is not well-known enough to customers in Korea yet. At this point, its not easy to establish brand reliabilityin short time period.

n The design/style of Car C is rather different from existing models like BMW, Lexus, etc. Some Koreans, especially owners ofEquus and Chairman, favor magnificent design. Car C may appeal to those who prefer traditional style among self-expressiongroups.

n Still, based on its price range, Car C is not the most prestigious passenger car. This may hinder appealing to extroverts, who

are interested in showing-off to others.

Comfort

Driving

Easy-life

Self-Expression

ExtrovertsSelf-

satisfactionConserva-

tism

Purchase intention of 300C

0

10

20

30

40

50

Extroverts

Self-

satisfaction

Conservatism

Comfort Driving Easy-life Self-expression


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IV-2. Targeting

n Targeting Demographic characteristics of primary target group

n Following charts compare demographic characteristics of the primary target group (comfort self-satisfaction group) against the total respondents.

n In total, the proportion of self-employed is high. But the company-employed is relatively high in primary target group.

n Ages are 40's and over.

n Also the target group is composed of more highly educated respondents. Also, it is important to note that proportion of highly-educated

respondents is not very high.

Occupations

0

20

40

60

Self-

employed

Company-

employed

Specialists

Housewife

Students

Others

Total Target

Age groups

12

45

20's 30's 40's 50's +

Total

Target

Education

0

20

40

60

80

Middle

school

High sch. College+

Total

Target

Yearly household income

12

45

50M 50-

100M

100-

150M

150-

200M

200M+

Total

Target


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IV-3. Competition analysis

n Analysis of competitive relation

n Make/model switching was analyzed by each .

n Following table summarizes market purchase intention share change by introducing Car C by segments.

n The largest proportion of potential customers comes from BMW. (This is because BMW is the most popular brand in Korea.)

n Car C will take market of Benz, Equus and Chairman especially in comfort and self-expression segments.

n In driving and easy-life segments, Benz and Lexus do not show much change in purchase intention shares. The core customers of Benz

and Lexus will not move to other brands.

n In the comfort segment, Benz, Equus, and Chairman would be the primary competitors.

n In self-expression segment, imported cars like BMW, Benz, and Lexus are competitors.

Segments

The single model they would like

to buy (at presented price)

Before presentingCar C

After presentingCar C

Car C

BMW

Benz

Lexus

Equus

Chairman

Audi

24.2

19.3 (9.8)

13.6 (2.2)

11.6 (4.2)

6.9 (1.5)

5.7 (*)

3.7(.*)

31.4

12.9 (10.0)

11.4 (10.0)

10.0 (4.3)

7.1 (2.9)

5.7(4.3)

1.4 (2.9)

19.4

25.5 (9.7)

14.5 (1.3)

11.5 (6.1)

7.9 (*)

6.7(*)

2.4(*)

22.9

13.3 (12.0)

14.5 (6.0)

13.3 (1.3)

9.6 (-)

4.8 (1.2)

4.8 (-)

29.1

18.6 (8.1)

12.8 (11.6)

11.6 (5.8)

2.3 (3.5)

3.5 (1.2)

7.0 (-)

* Figures in parentheses show the share change according to the introduction of Car C. (-) means no change, (*) verysmall change.

Total

(405)

%

Comfort

(70)

%

Driving

(165)

%

Easy-life

(83)

%

Self-

expression(86)

%

BMW

Benz

Lexus

Equus

Chairman

Audi

29.1

19.5

15.8

8.4

6.4

4.4

22.9

21.4

14.3

10.0

10.0

4.3

35.2

15.8

17.6

8.5

5.5

3.0

25.3

20.5

12.0

9.6

6.0

4.8

26.7

24.4

17.4

5.8

4.7

7.0


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IV-4. Brand strategy

n Brand strategy

n We classified following attributes as Antes

n Safety

n Comfort

n Little trouble

n Ease of repair and AS

n Reliable make

n Power

n Following attributes can be included in Drives.

n Design / Stylen Low noise

n Driving convenience facilities

n Value for price

n Each brand has its own images satisfying the basicrequirements on these attributes..

Antes

B nzSafety, performance

BMWPerformance

L xusComfort

EquusPrestige

Dyn styPrice

Antes

OpirusDesign

n Following diagram is brand images of leading

brands.

Ch irm nDesign, comfort


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IV-4. Brand strategy

n Brand strategy of Car C

n Positioning

n As comfort segment is the primary target, the core positioning concept should be spacious, comfortable imported car.

n Good design/style must also be emphasized. Its magnificent, luxurious style.

n Safety, engine performance, etc. must be communicated as basics of car.

n Following factors would work as good triggers

n Safety measures (Driving control systems and weight-sensitive airbag)

n Strong, safe-looking design

n Benz engine with higher performances

n Rear wheel drive, which improves comfort

n Luxurious style

n The largest number of service centers

n Brand identity and image of Dynamic Motors must be fortified.

n Brand image itself is not bad yet.

n But its not known widely enough.

n As self-satisfaction group showed highest interests, it is not model for showing-off to others. It is car for self-fulfillment.

Car C Report - Specimen 2

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