mr_small car segment

7/31/2019 MR_Small Car Segment

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By:

Group 1Amit Kumar

Bishnu PandaNishant Jain

Subhasish Das

25-05-2012 Small Car Industry 1


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Agenda Indian Small Car Segment Management Decision Problem Marketing Research Problem Research Design Data Analysis Conclusion The way forward



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Indian Small Car Segment

Largest small-car market in the world

Second largest exporter behind Japan Forms 60% of Indian Car Market Decline in growth by 50% in FY12

(Apr11- Oct11)o Successive interest rate hikeso Increase in fuel priceo Pressure on disposable income due to

inflation Diesel Penetration Negatively impacted by production

disruptions at Maruti Suzuki, the

market leader in the segment Competitive pressures intensifying on

the back of new launches Small Car Segment grew by 2% by

Dec-11 (FY12) w.r.t. 6.5% growth ratein 2011



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Management Decision Problem

A new entrant wants to come up with a winning car in the boomingsmall car segment in India.



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Marketing Research Problem


To figure out the key parameters which contribute in the growing sales in

the small car segment

Psychographic

Micro -Environmental

Macro -Environmental

Brand AmbassadorSocial Status

Changing LifestyleReferenceOccasions

Family Need

PriceFinance OptionsDistributionPost Sales ServiceImpact of communication channels

Product SpecificationsBrand LoyaltyExchange of Cars (resale value)Safety Standards and Warranty Schemes

Inflation

Per Capita DisposableIncomeGlobal Crude Oil PricesInterest RatesGovernment InterventionsInvestments


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Model

Behavioural Intention = b i e i + NB j MC j


where,

i = salient outcomesb i = how strongly do you believe that these outcomes will creep ine i = evaluation of the outcomes

j = relevant othersNB j = opinion of relevant othersMC j = motivation to comply others opinions

Beliefs Attitude

AffectPurchase Experience/Evaluation Repeat Purchase Loyalty


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Proposed Hypothesis Hyp1: Price sensitiveness is high in consumer buying behavior in this segment.

Hyp2: Financing options play an important part in buying behavior.

Hyp3: Distribution has a substantial contribution in generating sales.

Hyp4: Post Sales Service has a substantial contribution in generating sales.

Hyp4: Communication channels play a vital role in generating awareness of a new car in thesegment.

Hyp5: It is the brand which influences the sale.

Hyp6: Inflation has significant impact on buying behavior.

Hyp7: Interest rates has significant impact on buying behaviour.

Hyp8: PCDI has significant impact on buying behaviour.



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Research Design

Exploratory Research Designo Secondary Data: qualitative analysiso Experience Surveys

Descriptive Research Designo Surveys via questionnaireo Multiple Cross Sectional Design



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Scaling Techniques and Measurement Scales

Scaling Techniques to be used in the questionnaire:o Likert Scale (Non-comparative Scales)o Multi-item Scales (Non-comparative Scales)

Data obtained in the following scales viz.o Nominalo Intervalo Ratio



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Sampling Techniques and Sample Size

Sampling Method:o Stratified Random Sampling

o Criterion: i) Age Groupii) Income Group

Sample Size:o 158 for Primary Research



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Data Analysis



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Demographics-Sample


Age Group Occupation

Annual Income


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Do you have a car?

Sample Survey Status:



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The reason(s) for purchasing a car

Hypothesis: Every factor has equal impact on the purchase of a carH0: All reasons have equal importance vs. H1: H0 is false

Chi-Square Calculated = 473.76

Chi-Square Critical = 187.24Level of significance = .05

H0 is rejected.Infrence: Each factor has diffrentimpact on purchasing a car.


Link to Excel Sheet
http://data%20analysis_mr_revised.xlsx/http://data%20analysis_mr_revised.xlsx/


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Express your opinion regarding importance of thefollowing factors in purchasing a car

Hypothesis: Each factor has equal effect on buying a carH0: = 0 vs. H 1: 0

t Calculated = 5.24t Critical = 2.263 Level of significance = .05H

0is rejected.

Infrence: Each factor has diffrent impact on purchasing a car.



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How strongly do you believe that the followingattributes should be present in your chosen/present car?

Hypothesis: Choosing a car will be independent of the attributes (Productspecific)H0: = 0 vs. H 1: 0

t Calculated = -9.85t Critical = -2.263Level of significance = .05

H0 is rejected.Infrence: Choosing a car will be very much dependent on the attributes



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How strongly do you believe that the following factors havecontributed/shall contribute to your purchasing of car?

Hypothesis: Choosing a car will be independent of the attributes (External

Parameters)H0: = 0 vs. H 1: 0

t Calculated = -16.89t Critical = -2.263Level of significance = .05

H0 is rejected.Infrence: Choosing a car will be very much dependent on the external parameters.



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Tick the factors which you think shall influence your buyingdecision of a car

Hypothesis: Every factor has equal influence on the purchase of a carH0: = 0 vs. H 1: 0

t Calculated = 12.654t Critical = 2.247

Level of significance = .05

H0 is rejected.

Infrence: Each factor has diffrent influence on purchasing a car.



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Cross Tabulation

H01: There is no significant difference in the impact of individual factors on all age groupof customers while purchasing a carH02: Keeping the factors constant, customers falling under different age groups havesimilar buying behavior of cars


Source of Variation SS df MS F F crit Age Group 293961.8958 3 97987.29861 28.43587039 2.891563517

Parameters 47701.22917 11 4336.475379 1.258443222 2.093254411

Error 113714.8542 33 3445.904672

Total 455377.9792 47

ANOVA TABLE

F calculated (rows): 28.43 > F critical: 2.89 i.e. H 02 rejectedF calculated (columns): 1.26 < F critical: 2.09 i.e. H 01 acceptedLevel of significance: .05

Inference: The deciding factors stated doesnt have significant difference on thedifferent age group of customers, where as small cars are more preferred by individualswithin age group of 21 yrs. to 30 yrs., compared to others.


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Cross Tabulation

H01: There is no significant difference in the impact of individual factors on all incomegroups while purchasing a car

H02: Keeping the factors constant, customers falling under different income groups havesimilar buying behavior of cars


F calculated (rows): 8.309 > F critical: 2.89F calculated (columns): 12.14 > F critical: 2.09Level of significance: .05

Inference: The deciding factors stated have significant difference on the customers of different income groups and there is also a significant difference between the differentincome groups so far as purchasing cars are concerned.

Source of Variation SS df MS F F crit Rows 8900.729167 3 2966.909722 8.309951427 2.891563517

Columns 47701.22917 11 4336.475379 12.1459374 2.093254411

Error 11782.02083 33 357.0309343

Total 68383.97917 47

ANOVA TABLE


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Theory of Reasoned Action

bi*e i = 140.3506 NB j MC j = 0.27

Therefore, BI = 140.62


Behavioural Intention = b i e i + NB j MC j


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Recommendations..(1/2)


Advertisements Print Media Internet Marketing Branding

Distributors andDealers

Service CentreAvailability

PenetrationPricing

Value for Money

Comfortable Safety Quotient Fuel Efficiency Style Spacious

Product Price

PromotionPlace


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Recommendations..(2/2)


Post Sales Service Financing tie ups Warranty Schemes

Sales promotion to be given during festive seasons Advertisements must impact on the psychology of Indian Mango People.

Ad-hoc benefits to be offered:

Potential Markets: Urban & Semi UrbanHot Cake: Working Professionals within age group 21-30 yrs.


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Thank You


mr_small car segment

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