The Report

of Car C Launch Study

Poonglim I-want Plus 609
1338-1, Seocho-Dong, Seocho-Gu, Seoul, Korea
Tel: (02) 3487-7525 Fax: (02) 3487-7005
E-mail: egsuh@brio.co.kr
Prepared for Dynamic Motors
IV. Analyses and summary
3
IV-1. Segmentation
n Factor analysis of car-related attributes
n Importance rating of car-related attributes were factor-analyzed. We found following four factors.
n Reliability factor : factors related with no trouble with car, like little trouble, A/S, driving convenience facilities, low noise, etc.
n Performance : attributes related with performances, like Hightest speed, acceleration, and power.
n Image : reputation, image to other people, and design/style.
n Comfort : body size, room capacity, low noise, comfort, etc. which are related with driving comfort.
Factors
Attributes
Reliability Performance Image Comfort
Little trouble
Ease of A/S
Safety
Comfort
Reliable make
Driving convenience facilities
Value for price
0.70
0.70
0.67
0.62
0.57
0.55
0.54
0.38
0.30
0.47
0.42
0.50
Highest speed
Acceleration
Power
Back seat facilities
Used car price level
0.80
0.76
0.63
0.56
0.48
0.37
Reputations
Image to other people
Design / style
Various colors 0.47
0.80
0.77
0.62
0.53
Body size
Room capacity
Low noise 0.50
0.77
0.77
0.52
Table. Factor loading scores
4
n Cluster analysis were applied in order to classify respondents according to their
pursuit from cars. It gave following four groups.
n Comfort group : Pursuing comfort and reliability factors.
n Driving group : Pursuing performance-related factors strongly.
n Easy-life group : Pursuing reliability. Cars should not cause any trouble in life.
n Self-expression group : Pursuing image and style.
n Driving group is the largest, comprised of 41% of all respondents.
Factor scores of each segment
-1.5
-1
-0.5
0
0.5
1
Reliability
Performance
Image
Comfort
Comfort Driving
Easy-life Self-expression
Size of each segment
Comfort
17%
Driving
41%
Easy-life
21%
Self-
express
21%
IV-1. Segmentation
5
IV-1. Segmentation
n Psychographic analysis
n Respondents were also clustered based on their psychographic characteristics. We identified three groups.
n Extroverts: have optimistic viewpoints about future. Interested in expressing themselves.
n Self-satisfaction: intelligent, able, and like challenging. But not interested in expressing themselves to others.
n Conservatives: have believe in tradition and themselves. Rather pessimistic.
Table. Psychographic factors and related items
Factors Items
Optimism
Sociability
Self-confidence
Conservatism
n Im always confident in what I do.
n Im optimistic on everything.
n I always try to improve my situation.
n Id like to take responsibility of a group.
n Car is a symbol of social status.
n Frankly speaking, Id like to show off to others.
n I buy what I want even at high expense.
n I always cares about how others will think of me.
n I believe I have to choose things appropriate for
my status or position.
n I believe Im more able than others.
n I think Im more intelligent than others.
n I like excite and challenge.
n Id like to follow recent fashion or trends.
n Im interested in arts, culture or history.
n I like traditional and classical ones.
n I believe I have to choose things appropriate for
my status or position.
n I think Im more intelligent than others.
-1.5
-1
-0.5
0
0.5
1
Optimism
Sociability
Self-confidence
Conservatism
Extroverts Self-satisfaction Conservatives
Extroverts
36%
Self-
satisfactio
n
32%
Conservati
sm
32%
* base: 401 respondents
6
IV-2. Targeting
n Segmentation
n We can define following 12 segments based on two criteria, one from pursuits from cars and another from their psychographic
characteristics.
n Targeting
n Next, we have to find out which segment(s) can be the primary target of Car C. The chart on the right shows purchase intentions of
Car C in each group. (The percentages of respondents who chose Car C to the question which one they would like to buy among Car
C and existing models)
n Comfort group and self-satisfaction group show highest purchase intention of Car C. Also self-expression group shows next high
level of purchase intention.
n Driving and Easy-life groups are low in purchase intention of Car C.
Comfort
Driving
Easy-life
Self-Expression
Extroverts
Self-
satisfaction
Conserva-
tism
Purchase intention of 300C
0
10
20
30
40
C
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C
o
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s
e
r
v
a
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m
%
7
IV-2. Targeting
n Targeting
n When we analyze purchase intentions of each cell, we can find:
n Comfort - Self-satisfaction group shows highest purchase intention of Car C. This group would be our primary target group.
n Secondly, self-expression group show next level of purchase intentions. Self-expression groups would be secondary target group.
n These targeting coincides with other results.
n BMW and Benz are strongly associated with performance. Competition would not be easy in Driving group.
n Dynamic Motors is not well-known enough to customers in Korea yet. At this point, its not easy to establish brand reliability
in short time period.
n The design/style of Car C is rather different from existing models like BMW, Lexus, etc. Some Koreans, especially owners of
Equus and Chairman, favor magnificent design. Car C may appeal to those who prefer traditional style among self-expression
groups.
n Still, based on its price range, Car C is not the most prestigious passenger car. This may hinder appealing to extroverts, who
are interested in showing-off to others.
Comfort
Driving
Easy-life
Self-Expression
Extroverts
Self-
satisfaction
Conserva-
tism
Purchase intention of 300C
0
10
20
30
40
50
E
x
t
r
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t
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f
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C
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r
v
a
t
i
s
m
%
Comfort Driving Easy-life Self-expression
8
IV-2. Targeting
n Targeting Other considerations
n Analyses by car ownership
n Owners of Equus, Chairman and Benz show high purchase intentions of Car C.
n The owners of Equus or Chairman want to buy imported cars next time. They want similar sized car, and magnificent design.
n The owners of Benz expressed dissatisfaction on body size and room capacity. It is not clear that the dissatisfaction is related with
purchase intentions of Car C, but the size of Car C may work as an appeal.
n As Equus / Chairman owners have expressed high interests in Car C, it is possible that XG/Opirus owners may also be interested in Car
C much. The potential size of this group (D2 owners) is much larger than Equus/Chairman owners. But as we have seen previously,
this group is limited by price.
n Taking all these considerations into account, D1 group is the primary target.
n Car exchange cycle is three to five years.
n In terms of demographics:
n Male, in their forties or older
n Self-employed. But Car C must appeal to company-employed too (please refer to next page).
9
IV-2. Targeting
n Targeting Demographic characteristics of primary target group
n Following charts compare demographic characteristics of the primary target group (comfort self-
satisfaction group) against the total respondents.
n In total, the proportion of self-employed is high. But the company-employed is relatively high in primary target group.
n Ages are 40's and over.
n Also the target group is composed of more highly educated respondents. Also, it is important to note that proportion of highly-educated
respondents is not very high.
Occupations
0
20
40
60
S
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Total Target
Age groups
0
10
20
30
40
50
20's 30's 40's 50's +
Total
Target
Education
0
20
40
60
80
Middle
school
High sch. College+
Total
Target
Yearly household income
0
10
20
30
40
50
50M 50-
100M
100-
150M
150-
200M
200M+
Total
Target
10
IV-3. Competition analysis
n Analysis of competitive relation
n Make/model switching was analyzed by each .
n Following table summarizes market purchase intention share change by introducing Car C by segments.
n The largest proportion of potential customers comes from BMW. (This is because BMW is the most popular brand in Korea.)
n Car C will take market of Benz, Equus and Chairman especially in comfort and self-expression segments.
n In driving and easy-life segments, Benz and Lexus do not show much change in purchase intention shares. The core customers of Benz
and Lexus will not move to other brands.
n In the comfort segment, Benz, Equus, and Chairman would be the primary competitors.
n In self-expression segment, imported cars like BMW, Benz, and Lexus are competitors.
Segments
The single model they would like
to buy (at presented price)
Before presenting
Car C
After presenting
Car C
Car C
BMW
Benz
Lexus
Equus
Chairman
Audi
24.2
19.3 (9.8)
13.6 (2.2)
11.6 (4.2)
6.9 (1.5)
5.7 (*)
3.7(.*)
31.4
12.9 (10.0)
11.4 (10.0)
10.0 (4.3)
7.1 (2.9)
5.7(4.3)
1.4 (2.9)
19.4
25.5 (9.7)
14.5 (1.3)
11.5 (6.1)
7.9 (*)
6.7(*)
2.4(*)
22.9
13.3 (12.0)
14.5 (6.0)
13.3 (1.3)
9.6 (-)
4.8 (1.2)
4.8 (-)
29.1
18.6 (8.1)
12.8 (11.6)
11.6 (5.8)
2.3 (3.5)
3.5 (1.2)
7.0 (-)
* Figures in parentheses show the share change according to the introduction of Car C. (-) means no change, (*) very
small change.
Total
(405)
%
Comfort
(70)
%
Driving
(165)
%
Easy-life
(83)
%
Self-
expression
(86)
%
BMW
Benz
Lexus
Equus
Chairman
Audi
29.1
19.5
15.8
8.4
6.4
4.4
22.9
21.4
14.3
10.0
10.0
4.3
35.2
15.8
17.6
8.5
5.5
3.0
25.3
20.5
12.0
9.6
6.0
4.8
26.7
24.4
17.4
5.8
4.7
7.0
11
IV-4. Brand strategy
n Brand strategy
n We classified following attributes as Antes
n Safety
n Comfort
n Little trouble
n Ease of repair and AS
n Reliable make
n Power
n Following attributes can be included in Drives.
n Design / Style
n Low noise
n Driving convenience facilities
n Value for price
n Each brand has its own images satisfying the basic
requirements on these attributes..
Antes
Benz
Safety, performance
BMW
Performance
Lexus
Comfort
Equus
Prestige
Dynasty
Price
Antes
Opirus
Design
n Following diagram is brand images of leading
brands.
Chairman
Design, comfort
12
IV-4. Brand strategy
n Brand strategy of Car C
n Positioning
n As comfort segment is the primary target, the core positioning concept should be spacious, comfortable imported car.
n Good design/style must also be emphasized. Its magnificent, luxurious style.
n Safety, engine performance, etc. must be communicated as basics of car.
n Following factors would work as good triggers
n Safety measures (Driving control systems and weight-sensitive airbag)
n Strong, safe-looking design
n Benz engine with higher performances
n Rear wheel drive, which improves comfort
n Luxurious style
n The largest number of service centers
n Brand identity and image of Dynamic Motors must be fortified.
n Brand image itself is not bad yet.
n But its not known widely enough.
n As self-satisfaction group showed highest interests, it is not model for showing-off to others. It is car for self-
fulfillment.