Recommendations on market research and segmentation

• Basic market analysis will draw a map of the major car brands in the market covering the car population (PARC) by brand, replacement rates by product and after market size by product, car brand and region. It will also determine component life span by mileage or time, market volume by product portfolio and cross country analysis/cross check.

• Geographic segmentation will segment the market by region and major metropolitan area and prioritize market penetration region by market size, growth and competitive intensity.

• End user segmentation will categorize the end user into different consumer groups, understand their distinctive characteristics including expectations, preferences, drivers of product and channel choices. It will also uncover the best way to cater for the segmented targeted consumer groups.

• Product analysis reveals the strength and weakness of the major products/brands in the market and match channels and end user preferences.

The above analyses must be based on facts, and the following sources and methodology can be applied to gather the relevant information:

• Desk research:     Government statistics and reports, industry materials from newspapers/magazines/ internet/other domestic and international media, data published by automotive research institutions (DRI, Boston Consulting); the annual reports of the OVMs and the OES.

• Internal marketing information:     The existing database or marketing information systems (MIS); the key account managers of major OVMs (remember, they always have good relations with OVM executives and are able to get first hand information very quickly); the clipping and monitoring systems of the PR department.

• First hand interviews or surveys:     To delegate a third party survey service institution to conduct a focus group interview, consisting of distributors , wholesalers, dealers, retailers and end users, or a specified survey will help the company get the first hand materials. Nowadays, on-line survey on the Internet is another cost-effective way.

• Industry events: While enjoying auto shows, trade fairs, technical shows and other customer occasions, remember to attend the seminars where famous market players, government officials and industry authorities deliver speeches and distribute market information.