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Should ducati enter the car market

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Introduction

Should Ducati enter the car market? Introduction My report is about the motorbike giant Ducati entering the car market. Ducati have not entered the car market as such yet, however they have made a concept car which they hoped to launch in the market in 2005, but failed to shine and did not succeed as they were not experienced enough in the car market. If Ducati were to successfully launch the brand into this highly competitive market then it would expand the company on vast scale and generate large profits. In order to gain an insight view into the car market I used secondary research (desk research) to find out the data which gave me information about the market share and the market growth. Secondary research is data which has already been collected by someone else. I obtained the latest market research on UK cars from my local library where they have a web access to a market research company called 'Snapshots'. This enabled me to gain the market data for free as it is paid by the library, or else it could cost me thousands of pounds. Market Size and Trends Source : Snapshots UK Cars 2010 It is really important to find out the market size if a company is entering a new market, because this shows whether or not there is a demand for the product, and whether or not the demand is growing or decreasing. ...read more.

Middle

However the forecast is only an esitmate and the market can change significantly and in the current financial climate there is always a chance of a double-dip recession. External Influences Fuel prices Fuel prices can be an external factor which will affect the sales of new registered cars sold. This is because people are worried about the soaring Fuel prices and think they may not be able to afford to run a car. Petrol prices increased from 88pence per litre in 2007 to 117ppl in 2010, and diesel prices increased from 92ppl to a staggering 122ppl in the same time. This is because the demand for oil is far greater than the supply and also because the three middle eastern countries Iran, Saudi Arabia and UAE (also part of the OPEC) control the supply of oil causing the price to increase by supplying less. A recent survey taken by Motor Trend showed that 'Nearly 40% of car buyers say fuel prices have affected vehicle purchase decision; Additional new car buyers say 29-pence increase in petrol prices will affect their purchase decision'. This means that if Ducati were to enter the car market then they could struggle to make sales as people are now deciding not to buy new cars because of the running cost (fuel) ...read more.

Conclusion

It didn't cost anything to obtain the snapshots report because the research on the website is mostly free. May Help Clarify Research Question - Secondary research is often used prior to larger scale primary research to help clarify what is to be learned. My snapshots report helped me to gather all the information I needed. Disadvantages: Not Specific to Researcher's Needs- In many cases, secondary data is not presented in a form that exactly meets the researcher's needs. Therefore, the researcher needs to rely on secondary data that is presented and classified in a way that is similar to their needs. There was a lot of information in the snapshots report which i didn't need e.g. market segmentation by volume. Incomplete Information- The researcher may not get the full version of the research to gain the full value of the study. This is because many research suppliers offer free portions of their research and then charge expensive fees for their full reports. For example from my snapshots report market size by value was missing which was an important part of the report. Quality of Research- he researcher needs to take sufficient steps to critically evaluate the validity and reliability of the information provided. In my case the data may not be reliable as it has not been done by me and it could also be out of date. ?? ?? ?? ?? ...read more.

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