Should ducati enter the car market

Authors Avatar

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.

This chart shows clearly that since 2005 sales of cars have generally been declining. In 2008 the total number of new resgistration was 2,131,000 which was a decrease in growth of -11.3% compare to 2007. Furthermore the sales dropped to 1,995,000 new registration cars registerd in 2009, which was a decrease of -6.4%. This shows that in the current climate the car market is not doing well as sales drop and growth stops. This could mean that if Ducati were to enter the car market it would really struggle because customers would want to buy a car from a company with a good history to reassure them that the cars would be reliable. It could also struggle because sales are low, and if large car firms such as Ford are having to sell Jaguar and Landrover, then the chances are Ducati will not survive. For those reasons I think that Ducati should not enter the car market.

Join now!

Market Share

Source : Snapshots UK Cars 2010

Market share is really important when conducting market reaserch, because it shows which companies are controling the market. The pie chart clearly shows that in 2009 the largest UK car company by volume was ford, with 15.9% share of the market. The two main players in the market were Ford and General motors. They accounted for 27.8% of the market by volume. Further more the top 5 car companies account for 47.1% of the market share in the uk which is a massive share, especially when considering that the 53.9% representing ...

This is a preview of the whole essay