Market research about Porsch Essay

Porsche food commercialize question Report RMIT University foodstuff Research Sem C 2012 3 I. Executive Summary Currently, a deem of tidy sum in Vietnam basis afford highlife brand signalise railway gondola cars such as Audi and BMW. Despite the fact that car outlay in Vietnam atomic number 18 three-times higher than its original price, demand seems non have a bun in the oven any deduction. The research objective of this research is tounderstand somewhat the Vietnamese target segment of jalapeno Porsche, their buy motives and usage, which require both the qualitative and quantitative information. The three research objectives we follow including nodes? perceptions? create? a? relation? between? their? needs? and? the? cars, whatsoever factors customers consider before purchasing a car including? the? image? of? car? related? to? customers? image? of? success,? their? characteristics? and? the? reliable? trend? in? the? merchandise and the occasions customers s toogeister use the car repair and the way they take care of it can yarn-dye their buying decision. Thus we used the combination of the online focal point group discussion, the experiment watch, the secondary selective information analysis and the depth interview in order to get the needed information.Firstly, some introductory information and backgroundof Porsche political party are presented. Then the secondary research and publications review which include the Industry overview as well as Company overview, the Sale and market and the Customer trend would stick out the greater understanding interrelated components most the auto market. Next, the Qualitative research is taken place with the use of Online Focus Group password (getting the responses from prodigality cars? users? on? the? website? Otofun),? the? Secondary?Data analysis and In-depth? interview? which? together? give? the? group? a?greater? understanding? about? the? high life? cars? target? market,? their? l everaging decisions and usage. at any rate that, the Quantitative research is activated with the conduction of the experiment survey, dealing? with? the? statistic? in? order? to? popularize? our? findings? and? understand? more than? about? the? extravagance? car? brands? consumer? trend and experiences. After collecting data, the group works with the SPSS software to transfer the information found from the survey and interview and then? export? chart,? graph? and? data? tables? in? order? to? get? the? result? (the? out go under)? and?interpret? them.?Finally,? the? groups? members will appraise data collected and formulate the conclusion for the information researched and evaluated in each stage of the research, in order to answer the research fountainheads as well as provide short-term and long-term recommendations for the Cayenne product line to get the competitive advantage in the market. Porsche Market Research Report RMIT University Market Research Sem C 2012 4 II. In troduction and background Over the last 60 years, the Porsche Holding Salzburg is the largest and most made specialty automaker business company in Europe.Today, Porsches roster is quite wide-ranging and now even contains a luxury have car, the Cayenne. Porsche Cayenne was elected? by? MotorTrend? to? be? the? SUV? of? 2011.? Absorbed? by? current? Porsches? design,? Cayenne? attracts? attentions? by? the? look? of Safety, Elegance and Gentlemen. According to AutoVina, experts said that Cayenne, with high class, appropriate internal forces and latest? engine? V6,? is? a? SUV? that? best? sheath? with? Vietnams? transportation? circumstances,? while? still? serve? the? needs? of? class? clients.The research study is conducted to find more opportunity in Vietnamese luxury car market, specifically understanding deeply Vietnamese customer as the key to ensure further growth in Vietnam. III. Secondary research and literature review 1. Industry Overview Vietnam is considered as one t he countries that has the fastest developing economy. Since 1986, Viet Nam moved from planning economy to free trade and this policy brought the fastest development in Vietnam economy, ranking in the Asia area. In 2007, Vietnam had also joined the World Trade Organization and this milestone opened the sassy era for Vietnam economy and trade.Since then, many importers appeared and put a step onto the automobile market which was just in the initial stage. Despite the high rate of trade deficit, decreasing purchasing power and rocketing inflation, the luxury car sales has still risen. Besides, limiting the loan rate and increasing interest policy from Central Bank would non actually influence the Vietnam luxury automobile market. According to Mr. Laurent Genet, the CEO of Automotive Asia official? Audi? importer? in? Vietnam? Our? target? customers? are? the? ones? who? do? not? have? financial? concerns.? For? them,? a? car? is? the? reputation,? br oppositely? limit? and? invest ment. ?Following this sustainable tendency, many luxury automobile importers are extremely optimistic about this fresh but potential market. 2. Sales & Market Developing economy, increasing population and improving standard of living are main factors which help rocketing Vietnam Car sales in? recent? years.? According? to? the? latest? report? of? the? Vietnam? Automobile? Manufacturers? Association? (VAMA),? sales? in? September/ 2012 increased by 9%, reaching 7660 vehicles nationally. However, the major(ip)ity of businesses, forecast that by the end of the year, the market will solely consume less than 95,000 vehicles.At the akin time, VAMA statistics has just announced that in the first nine months, sales were down 38% compared to the same period last year. One of the biggest recognizable reasons is due to the? governments? contradictory? policies,? which? is? rises? in? fees? and? taxes? policies.? According to VietnamNet, at to the lowest degree nine types of taxes and fees h ave been oblige on car owners which narrows the automobile sales. Do Huu Hao, Chair of the Vietnam Automobile Engineering? Association,? former? Deputy? of? Industry? has? recently? stated? that? If?Vietnam? does? not? make? a? breakthrough? in? its? policies,? its? automobile? industry? will? never? be? able? to? develop. Porsche Market Research Report RMIT University Market Research Sem C 2012 5 3. Customer Trend Referring? to? Personal? Finance? Monitor? of? Nielsen in 2011, Hanoi mickle adore luxury product such as sport car or mobile phone? and? easily? got? attracted? by? them.? They? willing? to? pay? high? price? for? lavish? products? and? believed? that? purchasing? and? consuming them are economic investment. As studied in the International Marketing Review written by Lien Le Monkhouse, Bradley R.?Barnes,? Ute? Stephan,? (2012),? Hanoi? people? can? be? reflected? as? the? kind? of? person? who? highly? appraise? saving? face,? and? consequently? have? high? insights ? of? the? extended? self-component? as? well? as? the? conspicuousness? dimension? of? luxury.? Dissimilarly, the Saigonese only bought things when needed. They think high-class? goods? are? for? boasters,? and? theyd? just? spend? on? necessary instead of boasting purposes.Accordingly, Vietnamese consumers? are? aware? of? the? financial? crisis? moreover? its? easier? for? high- end name brands to attract northern clients and for southern clients, enterprises should differentiate business strategies and products to meet all demands. Nowadays, a numberofpeople in Vietnam can afford luxurybrand name cars such as Lexus and BMW. Despite the fact that car outlay in Vietnam are three-times higher than its original price, demand seems not have any deduction. In? their? journal? Business? Strategy? Series? (2009),? the? authors stated? that,? for?Trends,? there are differences in trends these days. People want safety, fast, sexy, but economical cars.? Therefore,? Efficiency? becomes? on e? of? the? newest? major? trends.The second run-up? is? to? personalize? your? style.? For? example,? men?who love speed and sport conventionally dream about a top-gun car at least once in their life. The third run-up? is? Safety,? and? making? cars? more? safety? is? a? permanent? trend? (like? Lexuss? pre-collision). Last but? not? least? is? Entertainment,? because? everybody would be so pleased as they have a bottle of wine chilled in the mobile refrigerator inside their luxury car.IV. Problem statement Marketing problem Research Question Research Objectives Hypothesis What Vietnamese market segment should be targeted? (Target segments) Will customers choose the Cayenne? How do the answers to above questions differ depending on demographic group (age, income), psychological ( tender class, lifestyle and spending on household) and behavioral (benefits and usage rate)? Who are the best prospects?To vizor purchase intentions, their lifestyle and perception in order to find out is there a relation between their needs and the car HO Having sumptuosity cars is independent from monthly income over 36 millions. H1 Having luxury cars is associated with monthly income over 36 million VND. HO The people with high social class do not feel the luxury car fulfills the need to get laid life. H1 The people with high social class feel the luxury car fulfills the need to jollify life and make the enjoyable life more completed. Porsche Market Research Report RMIT University Market Research Sem C 2012 6 How and Why do they purchase a luxury car? (Buying motives) How the performances of Porsche Cayanne affect people? Which factors will customers consider most when choosing a type of car except the budget (the interest or family benefits)? What extent do customers think a luxury car is a status symbol for successful Vietnamese people? What can be the impart they get information? What can be the proper time in their life they consider to buy a luxury car? Will the opinions of their friends/colleagues affect them?To measure the purchase intentions. Understand what factors affect the purchase decision, the reasons and time a customer will buy a car. Also to determine how and what a customer consider before making the purchase. Ho Different age groups have the same opinion about the statement that? luxury? cars? create? good? paintings? on? other(a)s H1 Different age groups have different opinions about the statement that? luxury? cars? create? good? impressions? on? others Ho On? average,? people? do? not? agree? with? the? statement? that? sumptuosity car is a symbol for successful of most Vietnamese customer. H1 On average? people? agree? with? the? statement? that? Luxury car is a symbol? for? successful? of? most? Vietnamese? customer? Ho Customers still buy a luxury car irrelevant with the characteristics with which they tie themselves. H1 Customers do not buy a luxury car irrelevant with the characteristics with which they describe themselves Ho It is not important to have my car the newest car in the market that few people owns it. H1 It is important to have my car the newest car in the market that few people owns it Ho Family? members? opinions? do? not? affect? the? decision? making? of? choosing a car H1Family? members? opinions? affect? the? decision? making? of? choosing? a car How do customers use a luxury car? (Usage) What can be the perceived benefits they like when using the car in terms of speed, upgraded safe systems? In what kind of occasion they prefer having a luxury car (business and travelling? ) To determine customers? lifestyle and usage. Understand the ways customers use the car about. Measure Ho Consumers do not think that it is important to upgrade the new technical developments. H1 Consumers think that it is important to upgrade the new technical developments.Ho The job requirement is not the purpose for buying the car ( misbegotten 0. 05). Therefore, it can be concluded that it do not reject H0. O n the other words, having luxury cars is independent from monthly income over 36 million. Explanations.Porsche Market Research Report RMIT University Market Research Sem C 2012 12 It can be explained that the desire to own a car can be affected by many other factors, such as whether it is relevant to the customers? characteristics or fit with job requirement (referred to the next objective) therefore even people who have high income still do not choose a luxury car. In addition, there is a noticeable problem here, which is about the respondent error since the income is a sensitive question so some of them have the tendency to choose a higher range than the actual income or vice versa.Question 2 How do the people with high social class feel the luxury car fulfills the need to enjoy life? Ho The people with high social class do not feel the luxury car fulfills the need to enjoy life. H1 The people with high social class feel the luxury car fulfills the need to enjoy life and make th e enjoyable life more completed. Results The bar chart indicates that the group of people with high social class also mostly disagrees with that idea, ascertain for more than 12. 5% even though the amount of people who agree also counts a certainly high rate which is around 8%. ground on the Car-fulfill-life.Crosstabulation, most of the high social class respondents agree that luxury car could not help fulfill their need to enjoy the life. This difference is not statistically significant according to the chi square test (test statistics = 1,771, degree of freedom= 1, p-value=0,183 0,05). Therefore, we do not reject H0. It can be said that the people with high social class do not feel the luxury car fulfills the need to enjoy life. Explanations From the data collected, the car purchased is compatible with the owners? living? standard.?From? the? bar? chart? in? Q1,? successful? businessman with high monthly income above 36 million tends to own a luxury car brand. However, on the ot her hand, a luxury car somehow does not really take high position in their perception of life fulfillment. This can be explained that the Vietnammese high-class? peoples? perception? is? quite? different? to? the? general? materialism? tendency among Vietnam society. According to ThanhnienOnline article, the real global billionaires do not really stick with materialism containing luxury car, house.. as common thinking of many Vietnamese people. To those people, car is only a mean of transportation, not a demonstration of their richness and success.This tendency also affects a part of VietNam high-class people and gradually forms a different perception among those successful and blotto people. Recommendations As what have been proved, there is a gradual changing in Vietnam high-class customers which may put luxury car sales at risk. taking this in consideration, Porsche should launch campaigns focusing on different aspects of luxury car image such as quality, durability, Porsche Ma rket Research Report RMIT University Market Research Sem C 2012 13 service and loyal customer incentives.A luxury car does not only bring a high-class outlook and position but also provides the best quality and many other beneficial incentives. Porsche must demonstrate that it deeply understands this insight, that it knows the car is not just a vehicle, it sticks with successful moments in their career and with happy moments with their families. By recognizing and conducting? strategic? plans? on? time,? Porsche? may? affect? targeted? customers? perception? and? change? their? behaviour? in? more? positive ways. Research Objective 2 Some factors customers consider before purchasing a car including the image of car related to their image of success, their characteristics and the current trend in the market.Question 1 How customers evaluate Porsche compared to other three competitors (BMW, Audi & Mercedes Benz)? Results To clarify, the study has been conducted through the use of ra nking Porsche, presented by the red line in the graph and other brands, including BMW, Audi and Mercedes, presented by the blue line, for each of 9 attributes, namely performance, safety, luxury brand image,? drivers? image,? prestige,? elegance,? desire? of? the? updated? edition? of? car? mock up? (desirable),? uniqueness? of? car? accessories and level of equipment. The value in the graph has been calculated to the mean for each attribute.Overall,? the? graph? figures? out? Porsche? is? believed? that? the? car? can? be? raised(a)? the? car? drivers? social? status? which? is? representative of luxury? brand? image,? drivers? image,? prestige? and? elegance.? To? illustrate,? the? attribute, gaining the highest mean is the image of the driver with the mean around 4. 8, compared to other brands with the mean around 4.Thus, there is a significant gap between Porsche 3. 6 3. 8 4 4. 2 4. 4 4. 6 4. 8 Other luxury brands Porsche Porsche Market Research Report RMIT University Market Research Sem C 2012 14 and one of the other car brands, which is 0. 8. Moreover, in the semblance of prestige, there is a magnificent gap between these car brands which is 0. 2.This is because the red line gains around 4. 4, while the blue one is approximately 4. 6. However, in the equality of desirable, Porsche is underestimated with the mean near 4. 1, whereas, the other one is approximately 4. 6. This can be explained that there is not much updated version of Porsche Cayenne in recent years. Besides that, most Vietnamese customers are a bit interested in SUV market, not quite much as other foreign market.This can be proven that not much Cayenne models are available in Vietnam much, for example, Cayenne S, Cayenne S Diesel and even Cayenne Turbo S. Explanations In the social image comparison, all the participants of OFGD agree that current Cayenne models raise the image of the driver.? This? also? supported? for? the? question? no.? 2? that? different? age? groups? have? same? opinion? about? the? statement? luxury? cars make good? impressions? on? others.The graph shows there is no much difference between Porsche and the other brands towards performance, safety, uniqueness of car accessories and level of equipment. This can be explained that the cars chosen for the comparison are amplitude cars. Based on both OFGD and in-depth interviews, most of the participants acknowledge that premium cars have to meet the certain requirements about safety, performance, its uniqueness of the accessories and the high level of equipment.Recommendations It is recommended that press releases for the updated version of Cayenne should be widely introduced to be launched. This is because this is the opportunity that can enhance the brand awareness of Porsche, especially Cayenne model.Question 2 Do the customers in different age groups similarly care about the impression they have from other people while driving a luxury car? Ho? Different? age? groups? have? the? same? opin ion? about? the? statement? that? luxury? cars? create? good? impressions? on? others H1? Different? age? groups? have? different? opinions? about? the? statement? that? luxury? cars? create? good? impressions? on? others Results Firstly, based on the graph, the age groups that have been surveyed includes under 24, 24-under 34, 34-44, 44-under 54, 54-under 64, and 64 and above.