Market Research Report of the Volkswagen Golf Vi. Essay Example
Market Research Report of the Volkswagen Golf Vi. Essay Example

Market Research Report of the Volkswagen Golf Vi. Essay Example

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  • Pages: 12 (3082 words)
  • Published: April 9, 2017
  • Type: Research Paper
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Introduction

Car Market Research Ltd. is a company that focuses on market research.

This company, based in Budapest, specializes in producing market research reports for car distributors such as Toyota, BMW, and Mercedes. Over the past four years, these companies have approached them to conduct market research on their products. Recently, Volkswagen AG Germany has also become a client of the company and has commissioned them to create a market research report for their latest car model, the Golf VI.

According to www., Volkswagen AG, a German car maker based in Wolfsburg and commonly known as VW, plans to enter the Hungarian market by 2007. The Volkswagen Group, one of the world's top four car manufacturers, relies on Volkswagen AG as its main company. In Western Europe, which has the largest car market worldwide, around 18.9 percent of all new car

...

s come from the Volkswagen Group.

According to Wikipedia.org, the Volkswagen Group has a total of 44 production plants spread across Europe and seven other countries worldwide. These locations are located in the Americas, Asia, and Africa. At present, the group employs around 345,000 workers and produces over 21,500 vehicles daily or offers vehicle-related services. Their cars are marketed in over 150 countries globally, including Hungary. The company expects a sales boost with the launch of their latest model due to prior market research.

The Golf series by Volkswagen (VW) has maintained its popularity worldwide, offering a total of seven different types of Golf. The first model, known as Golf I, was launched in 1974 and has become the standard and commonly recognized as a Golf model. VW's latest addition is the Golf VI, an appealing car designed exclusively

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for younger individuals and only available in a coupe style.

Based on its basic equipment evaluation, it can be inferred that this car will compete with other manufacturers. The report is divided into two parts: market research theory and practical application.

Definition of Market Research

To begin, we need to define the concept of market research. Market research involves systematically designing, collecting, analyzing, and reporting data relevant to a specific marketing situation that a company faces. According to Kotler, market research is the function that connects customers, consumers, and the public with marketers through information. The primary advantage of market research is that it helps businesses gain a better understanding of their customers.

Market research is essential for businesses to effectively allocate resources and gain insight into consumer behavior. It also supports the creation of innovative products and services. The market research process consists of four steps: identifying the problem and research objectives, creating a research plan, collecting and analyzing data, and interpreting data to present findings. Defining the problem and research objectives can be particularly challenging in this process.

The marketing manager and market researcher collaborate on defining and solving research problems, underscoring the importance of their shared role. The aim of the research must be mutually agreed upon to ensure successful problem-solving.

After defining the problem, the research objectives need to be established. Marketing research consists of three types: 1. Exploratory research 2. Descriptive research 3. Casual research. The first step for the company is to conduct exploratory research which aims to determine the exact problem. This involves gathering preliminary information that will aid in defining the problem and suggesting hypotheses.

Once the information has been gathered from exploratory

research, the company must establish another objective, this time descriptive in nature, to obtain specific demographic information. Some research is carried out to test cause-and-effect relationships. The second step of the marketing research process involves determining the necessary information, developing an efficient plan for collecting it, and presenting this plan to marketing management. The plan identifies sources of existing data and describes the research approaches, contact methods, sampling plans, and instruments that will be used to gather new data (Phillip Kotler: Principles of marketing). Secondary and primary research can both be used. Secondary data refers to information that already exists elsewhere and was collected for a different purpose.

Secondary research is a faster and cheaper method of obtaining information compared to primary data. However, it cannot provide all the necessary data, so primary data collection is necessary. Primary data consists of information collected specifically for the intended purpose. Collecting primary data is a slower process and can be done through various research approaches, contact methods, sampling plans, or research instruments. Both secondary and primary research have their advantages and disadvantages. Primary research provides up-to-date and purpose-specific data, asking the questions that a business seeks answers to.

The text discusses the benefits and drawbacks of primary research and secondary research. Primary research collects unique and confidential data quickly using online surveys and telephone interviews, but it can be challenging, time-consuming, and costly to gather. Misleading findings may occur due to inadequate sample size, careless selection process, or poorly worded questionnaire questions. On the other hand, secondary research is usually faster and more cost-effective than primary research if the information is accessible. It also provides a wider market perspective.

The

main goal of conducting secondary research is to give the business insight into whether or not it should invest more in product development for a particular market. This involves figuring out if there is enough customers to make sufficient profits. However, it's important to note that secondary research can become outdated quickly and has some disadvantages.

It is not very advantageous against competitors as it is accessible to all other businesses. The data may not be perfectly aligned with the research's objectives. "http://www.tutor2u."

net

Quantitative and qualitative research

The researcher must ensure that primary data provides relevant, accurate, current, and unbiased information. Qualitative research can capture the opinions of a small sample of customers (e.g.

: types of people) Quantitative research provides statistics from a large sample of customer’s views. (e.g. : number of people)

Research approach

There are three different research approaches to obtain primary data. Observation research involves gathering primary data by observing relevant people, actions, and situations. Observational research enables the retrieval of information that people may be unwilling or unable to provide.

Survey research is a suitable method for collecting descriptive information. Surveys can be either structured or unstructured. Structured surveys involve asking all respondents the same formal list of questions. Unstructured surveys allow the interviewer to probe respondents and guide the interview based on their answers.

There are two methods for conducting survey research: direct and indirect. The direct approach involves asking questions directly about behavior or thoughts, while the indirect approach involves asking questions in an indirect manner. According to Phillip Kotler in "Principles of Marketing," survey research is the most commonly employed method for collecting primary data. Conversely, experimental research aims to gather causal information and explain

cause and effect relationships. This form of research gathers information through observation and surveys.

Contact methods

There are various ways to contact individuals, including mail questionnaires, telephone interviews, and personal interviews. Mail questionnaires provide detailed information and encourage honest responses while being cost-effective. However, they can be time-consuming and there is no guarantee of a response. On the other hand, telephone interviews are a fast and flexible method for gathering information. If respondents have difficulty understanding a question, the interviewer can offer clarification.

In this scenario, the expense is high. Personal interviewing can be conducted in two manners: individually or within a group setting. Individual interviews can take place either on the street or in an office, whereas group interviews are more formal and entail inviting 5-10 individuals to a different location to ask and document queries. Market research employs two kinds of research tools: questionnaires and mechanical instruments. The questionnaire is the most frequently employed tool.

The Flexibility of the Questionnaire

The Questionnaire provides various methods for inquiry. It is important to adequately prepare and test with a small sample before implementing it on a larger scale. When constructing a questionnaire, decisions must be made regarding content, structure, language, and question sequence. Structure has a significant impact on responses received. There are two types of inquiries: closed-ended questions with predetermined options and open-ended questions allowing participants to freely express thoughts. The wording of the questionnaire should be clear, straightforward, and unbiased.

In order to ensure a logical sequence, it is important that the questions be arranged appropriately. Additionally, there are mechanical research instruments, such as supermarket scanners, that are also utilized. Once the plan is determined, the researcher proceeds

to implement it by collecting and analyzing the necessary data. This step is vital in the marketing research process as it involves gathering, processing, and evaluating the acquired information.

According to Phillip Kotler's Principles of Marketing, the researcher needs to process and analyze the data that has been collected in order to identify important information and findings. This involves checking the data provided for the company from various sources. At this stage, the researcher should also summarize the plan in a written proposal. Finally, the last step in market research is interpreting and reporting the findings.

In this process, the market researcher interprets and reports the findings, representing them to the management. It is important for the researcher to avoid overwhelming the managers with numbers and statistical techniques, instead focusing on delivering a clear conclusion. This final step plays a crucial role in both the market plan and the research plan.

Conclusion: The market research provides information on market size, location, extent, customer types, customer preferences, distribution channels, buying habits, and competitor strengths.

Finally, the Market Research Introduction includes assessing the effectiveness of our advertising and implementing theoretical concepts through the application part. To begin this section, I will provide additional information about the Volkswagen Golf VI. Firstly, let me inform you about the key characteristics of the Golf model. The Volkswagen Golf has been a significant vehicle in the Volkswagen lineup since its launch in 1974.

The Golf, a renowned car in the automobile industry, has a significant history. It encompasses five models from Golf I to Golf V. Volkswagen (VW) has achieved exceptional success with this model, surpassing numerous car manufacturers. The Golf enjoys global popularity, primarily in

Europe, while also generating interest in North and South America. In Europe, it is recognized as the Golf, whereas in the US it is referred to as the GTI.

Everyone can find the Golf that best suits them. The range of options includes economy class to highline class, making it appealing to wealthier individuals. The Golf has received various awards, such as being named the Safest car in Europe and the Car of the Year in 2004. In Hungary, it gained popularity in the early 90s with the Golf II model. Subsequent Golf models have continued to increase in popularity compared to their predecessors.

The Golf IV was the most popular model. The upcoming VI model is targeting the younger generation, particularly those without children but with a wife or girlfriend. When the V series was introduced in 2004, it fell short of expectations. Now, the Hungarian distributor is interested in understanding our domestic market better and the potential success of the Golf VI. The report is based on theoretical analysis to address this situation.

In order to start the market research process, the initial task is to clearly identify the problem and establish the research objectives. In our situation, this is a straightforward task as it involves deciding whether or not to introduce the Golf VI to the Hungarian market. The next stage of market research involves devising a research plan to gather necessary information. I have previously discussed two methods for obtaining this information.

Both secondary and primary data are being collected in this research. Despite the expense, efforts have been made to gather a significant amount of secondary data. Online searches have yielded some recent data;

however, it is important to acknowledge that secondary data tends to be outdated. The information collected pertains to Volkswagen AG sales in Hungary and customer satisfaction survey reports from the same country. Alternatively, primary data collection is a more time-consuming process for which a plan has been devised.

The most suitable research method for our case is Survey research, which is commonly used by market research companies. The survey was conducted through multiple contact methods such as emailing questionnaires, telephone interviews, and personal interviews. You can find the questionnaire attached to this report on the last page. We paid careful attention to the questions, wording, and format while preparing it.

Given that the target audience for this questionnaire consists of individuals with above-average living standards and higher levels of education, it was imperative to carefully craft both the design and wording of the form. The selected questions revolve around car purchasing habits, alongside other common survey inquiries. Moving on to the third phase of market research, it involves putting the research plan into action by collecting and analyzing data. In my case, I obtained secondary data by utilizing online resources.

On the other hand, I have made an effort to distribute the questionnaires to as many individuals as possible. In doing so, I have taken note of selecting people within the age range of 20-30 years old, as the company believes that the Golf VI model is designed for this age group. Primarily, I have targeted male individuals during the survey, based on the information provided by Volkswagen AG, which suggests that the car appeals more to men than women.

Of course, I have also asked women because this

statement may not be true in certain countries. The process of collecting data sometimes made me tired due to the long wait times during questioning. However, I later realized that this method was the most effective. I have discovered that it is usually necessary to surprise people a little in order to get their cooperation, which I did not initially anticipate. In the beginning, I did not bring any surprises with me because I was unaware of this strategy. However, it later occurred to me that it would be helpful. I created brochures about the new Golf model with numerous pictures that I found on the internet, and this approach proved successful.

The telephone interviewing was expensive and not successful. People were not honest in their responses, particularly with questions about their monthly salary. Face-to-face contact yields more honesty. E-Mail questionnaires also proved unsuccessful as many recipients perceived them as junk mail and deleted them. Additionally, many people simply forgot about the questionnaire due to their busy schedules.

After not receiving a response to my email, I personally asked for an interview to confirm the information. The third step of market research involves analyzing the findings, which are derived from primary and secondary data. To demonstrate the automobile market in Hungary, I have created a diagram. In Hungary, Volkswagen is the fourth largest company in this market.

This is not a bad place, as the sales data and current market share in Hungary indicate a positive trend. The people in Hungary are purchasing more Volkswagen cars now compared to the years 2004 and 2005. This increase in demand could be attributed to the company's production of higher quality

vehicles and the introduction of new car models. The satisfaction of customers further demonstrates their contentment with the car's quality.

One reason why Volkswagen AG has a strong position is because their parts do not break down after fifty thousand kilometers, which contributes to good quality and fuel consumption. The introduction of new models can help target a new age group and increase sales. Another finding from market research is that Hungarian citizens in the age group of 20-30 would buy a VW Golf.

There are two types I have created: one from 20-25 and another from 30-35. Out of the 86 men and women randomly selected, 58% answered yes while 42% said no to my question. This indicates that people are acquainted with the brand and are willing to purchase it. The results did not reveal any significant difference between the two age groups. When designing the questionnaire, I identified the most crucial question for inclusion: Why would you buy Volkswagen? The responses varied greatly among the individuals I surveyed.

Here is a diagram depicting the results of this study. It highlights that the primary factor influencing car purchases is safety. Following closely is the speed of the car, and in third place, the level of comfort it provides. The survey indicated that individuals with a high salary tend to spend a significant amount of money every month. The questionnaire offered three options for monthly spending: 0-100000, 100000-2000000, and 200000-300000 Forints.

According to the survey, the second part of the questions focused on the preferred motor concept and engine size in relation to the type of fuel. Out of the 86 respondents, a considerable majority of 70% expressed

their inclination towards purchasing a diesel car. When asked why, most of these individuals mentioned that diesel cars consume less fuel compared to petrol cars. On the other hand, the remaining 30% stated their preference for a petrol engine due to its cleanliness and dislike for the noise produced by diesel engines. The final question in the questionnaire addressed the desired engine size.

Most of the respondents expressed a preference for a large engine in their car. The 1.9-liter diesel engine was particularly popular. Among the petrol engines, the two types were almost equally favored.

Conclusion

In conclusion, I would like to summarize the findings of my research. The results clearly indicate that Hungarians are inclined to purchase the new Volkswagen Golf VI. The market share of Volkswagen is increasing, and it has the potential to grow even faster with the introduction of a new model.

The target demographic for selling the car is primarily men aged between 20 and 30. The majority of individuals in this age group are inclined to purchase a Volkswagen due to their perception of it being a safe vehicle. Research indicates that they are aware of the comfort and value offered by VW cars. This market research presents a positive outlook for future consumers of the Golf VI. With this report, the process of segmentation, targeting, and positioning should be easier as it provides an accurate understanding of the current state of the Hungarian car market.

References

  1. Phillip Kotler- Principles of Marketing, The European edition.
  2. Volkswagen www.

volkswagen. com 3. Canada’ Business and Consumer Site strategis.ic. gc. ca/engdoc/main. html

  • Wikipedia www. wikipedia.org
  • Tutor2u www. tutor2u.
  • net 6. Pictures www. 3harts.nl

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