Market Research
Market research is a systematic, objective collection and analysis of data about the target market, competition, and environment with the goal being increases understanding through the market research process, a variety of related or non-related facts can be obtained by the data collection to guide the business decisions. Market research is not an activity conducted only once; it is an ongoing study.
Benefits of Market Research
- Guides the communication with current and potential customers.
- Helps to identify opportunities in the market place.
- Minimize the risk of doing business.
- Uncovers and identifies potential problems.
- Create benchmarks and helps track progress.
- Evaluating the success of the business.
SWOT Analysis
SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework helps to focus activities into areas where the business are strong and where the greatest opportunities lie.
Strengths:
- What advantages do you have?
- What do you do well?
- What relevant resources do you have access to?
- What do other people see as your strengths?
Weaknesses:
- What could you improve?
- What do you do badly?
- What should you avoid?
Opportunities:
- Where are the good opportunities facing you?
- What are the interesting trends you are aware of?
- Changes in technology and markets on both a broad and narrow scale
- Changes in government policy related to your field
- Changes in social patterns, population profiles, lifestyle changes, etc.
Threats:
- What obstacles do you face?
- What is your competition doing?
- Is changing technology threatening your position?
- Could any of your weaknesses seriously threaten your business?
SWOT Analysis on VW New Golf
Strengths
Probably the biggest strength that the Volkswagen Golf possesses is its built reputation. The model has been launched in to the market for over 30 years and therefore has built a great reputation for excellent quality and value for money. The brand name/image known as VW GOLF in nowadays has become one of the most popular brands at all audiences. It has all the ingredients to continue in the successful footsteps of its predecessors: a clear plus in terms of dynamics, spaciousness, safety, quality and fascination make it an all-round talent for millions of people from all walks of life.
The model is designed for both family and sports users. Customer can choose from 1.4 liter petrol engine to 2.8 petrol engine, besides the 1.9 diesel engines delivers both power and economy to its owners. Massive progress has been made on the new Golf such as the introduction of new FSI engine which increases fuel efficiency, give better performance and lower emissions, and yet FSI units produce more power than their equivalent predecessors; 2-zone or 4-zone climate control, VW Direct Shift Gearbox (DSG), Volkswagen's Electronic Stabilisation Programme (ESP), new and fashionable interior design, etc.
Weaknesses
We can hardly find any weakness for the new Golf by now as it is the latest vision of the model and Volkswagen has made massive improvements on it. But there are some disadvantages appears in the old Mk4 vision things like the reliability used to be questioned very often, electronic faults, heavier fuel consumption in petrol engines compare with Honda Civic, expensive cost and servicing and so on.
Opportunities
It is essential for Volkswagen to take advantage of all the opportunities that they encounter. They are doing quite well in the new generation of Golf from both the quality of the car and the value of money. The opportunity they facing is to keep the current market share in west Europe as well as expand the international market. The development of another model call Golf Plus will bring opportunities to the Golf family as well. It joint the advantages from both Golf hatchbacks and VW Touran, this model is more likely designed for those family user who need a bit more speed.
Threats
As the automotive industry has such a competitiveness environment,, Volkswagen is facing a big threat from its competitors such as Ford and Honda. The Ford Focus was the best selling hatchbacks in 2002 in the UK, and it had become the UK’s local car since a number of years ago, this makes the retail price and the maintenance of the vehicle becomes a lot cheaper than the VW Golf. On the other hand, the Honda Civic is famous at its reliability and economy, there factors are just what the Golf had been questioned. With there threats, the new Golf is expected at a more higher level than its previous vision in order to keep and take up even more market shares.
The Market Strategy
A market audit or SWOT analysis where strengths, weaknesses, opportunities, threats, or which are associated with the current marketing policy of a firm consisting if market segmentation, market strategy, and market positioning by using appropriate marketing mix of 4Ps:
- Product profile.
- Place of product according to distribution arrangement which can be either direct or indirect using middleman.
- Price of product
- Promotion of product by means of advertising and selling.
VW New Golf Profile
It has been with us for 30 years and has a wide choice of models. Currently buyers can choose between three- and five-door versions of the all-new Mk5, while the estate version of the previous model will be replaced in 2005.A convertible with a folding steel roof also arrives late in 2005. Currently buyers can choose from two 1.4 petrols with 74- and 89bhp, the latter using VW’s FSi direct-injection technology to burn fuel more efficiently. The same system is used for the 1.6- and 2.0-litre petrol engines. Entry point for diesel buyers is the non-turbo 74bhp 2.0 SDi. The 1.9 turbo diesel has 103bhp and 184lb ft of shove, while the 2.0 turbo diesel tested here tops off the range. This engine is available with the Direct-Shift Gearbox (DSG) transmission, which does away with the clutch pedal.
Placement
There may be many options for moving product to the customer such as direct retail, wholesale, consignment, broker etc. In this case, middle selling agencies are indirectly needed as because both new cars and used cars can be ordered or directly purchased from VW dealerships national wide, whereas those vehicle selling agency such as Car Land or those private garages can only selling used cars.
Price
Trim levels are S, SE and 2.0 GT. Prices start at £11,995 for the 1.4 S three-door and rise to £18,030 for the 2.0 GT TDi. Different price levels are design for satisfying varies of consumer choices under the condition of maximising profit.
Promotion
VW did put a lot of efforts on promoting the new Golf, and they did the job very well. The new Golf has been awarded as the best selling hatchbacks in the recent year, and the new Golf GTI has been awarded by one of the most popular car magazine in the UK as “The car for 2004”. Advertisements were carried out from both national wide and world wide through newspapers, magazines, radio stations, televisions, and internet. Discounts on basic models such as 1.6 S. Typical 0% APR on selected models such as 1.6 S, 1.9 TDI. Purchasing price also includes 3year/60000miles warranty.
Conclusion
From the example illustrated we could understand that to make a correct and appropriate decision, we have to first of all carry out a series of market research using technical methods such as the SWOT analysis and market segmentation to provide information which can be used to estimate the marketing policy. Thus, market research provides the basis if early stages of marketing planning, it is an essential step for the whole marketing research process.
Reference:
- Tony Proctor, “Essential of marketing research”, Second edition.
- Wright & Crimp, “The marketing research process”, fifth edition.
- http://www.cbsc.org/ontario/english/search/display.cfm?Code=4013&coll=FE_FEDSBIS_E
