LUXURY MARKET SEGMENTS

Premium compact segment

The premium compact segments relatively new, having been initiated by
several European brands in the mid-2000s, and constitute the least
expensive offerings in their line-ups. These cars are targeted at a niche
market of young customers who have a more refined taste in
their automobiles and the means to pay for them. By offering a
smaller, lighter, more fuel- efficient, and less expensive vehicle,
this serves to introduce a younger customer to the luxury marque, in
hopes of retaining the coveted customer loyalty. This includes
theAudiA3, BMW 1 Series, and Mercedes. Premium compacts may share
components with mass market cars from the marquee’s parent company (the
A3), and/or have less sophisticated platforms compared to upmarket
vehicles in the lineup (such as the B-Class). The body style tends to be
hatchback or compact wagon, previously associated with economy cars but
regaining popularity in the United States for its afforded utility. The luxury
branding and style, high-quality interior materials, wide range
of convenience features, and performance powertrains are key to
distinguishing them from mass-market equivalents (one mistake made by
the Cadillac) and making these appeal toconsumers.The classification
varies, for instance Consumer Guide Automotive in the US considers the
Audi A3 and A4 as part of the premium compact segment due to
similar size and MRP.

Q1) Which age group is most interested in buying sports cars?

Table 1.1
Age No of respondents

18-24 6

25-34 14

35-44 11

45-54 7

55 and more 2

Total 40

Analysis:
According to the respondents, Age group of 25-34 is most interested in buying
Sports cars that is around 34% followed by Age Group of 35-44.

Q2) Does purchase of Sports is car directly related to income level?

Table 2.1

Answers No of respondents

Yes 37

No 3

Analysis:
The result was totally skewed to one side and respondents agree that Purchase of
Sports cars is totally related to the Income level of an Individual which is 92%.
Q3) Rank the following parameters on your purchase preference?
 Table 3.1

Answers No of respondents
Price 10
Quality 15
Availability 7
Involvement 5
Recommendation 3
Total 40

Analysis:

Most of the respondents prefer quality followed by price and availability. This response
shows that customers are ready to pay of quality.
Q4) Why does one person purchase a Sports Brand?

Table 4.1
Value No of respondents
Quality 3
Flaunt value 20
Interested in art 7
Exclusivity 10

Analysis:

In opinion of respondents, majority of people buy sports cars because they want to
flaunt their superiority over others. Followed by those people who really
have taste of art and exclusiveness of the sports that is around 30%.

Q5) Is the quality of Sports brands are more superior then others?

Chart 5.1
 Automobile Indutry

Sports Car Normal Car

Analysis:
Our assumption is correct, about 73% of the respondents believe in the superior quality of sports cars
.

Q6) Are services provided by sports brands is better than others?

Chart 6.1

Sales

Sports Car Normal Car

Analysis:
About 72% of the respondents are of the view that service quality in sports car brands is more
superior then other brands.

Q7) What is the factor the effect most while purchasing a car?

Chart 7.1
 Factor Effecting

Brand Name Engine Saftey Looks

Analysis:
The graph indicates that majorly people tend to see as brand of the car as the major factor that
ffects theb uyIngd ecIsIono fa c ustomera ndo therf actorst hat a
r e t o o t a k e n I n t o considerations are engine power, shape, looks, etc.

Q9) What is the purchasing pattern of sports cars?

Chart 9.1

the purchasing pattern of sports car

PURCHASED NOT PURCHASED

 Analysis:
From the above chart it can be found that 88% of the customers have no previous
experience with buying sports cars.

Q10) What are the sources of information to get to know about the sports cars?

Table 10.1

SOURCES NO. OF RESPONDENTS PERCENTAGE

Television 22 44%

Newspaper 3 6%

Personnel sources 6 12%

Product demos 2 4%

sales representatives 5 10%

Experienced users 12 24%

 TOTAL 50 100%

Analysis:

From the above chart it can be found that 44% were influenced by the TV advertisement. 24
% influenced by experienced users, 12% were influenced by Personal sources and 10% were
influenced by sales representatives. Newspaper and product demos were influenced by 6%
and 4% respectively.

Q11) What are the general factors that influence a customer purchase decision?

Chart 11.1

Factors that infl uence a customer purchase

decision

Comfort Mileage Style Price

Analysis:

The above table shows that most of the customers rates comfort as the most important factor
for purchasing a car, then comes mileage, style and price respectively. Color is not having
that much influence on buying decision.

Q12) What are the customer’s opinion on style for purchasing a sports car?

Chart 12.1
 Analysis:
From the above table we can see that, 34% customers were highly influenced and 64
% were influenced by the style of the sports cars while making their purchase
decision. The rest 2% were not influenced by the style.

Q13) What is the customer’s opinion about comfort?

Chart 13.1

Analysis:
 The above chart shows that 70 % customers were highly influenced and 30% were
influenced by the comfort and convenience while making purchase decision.

Q14) What is customer’s opinion about price?

Chart 14.1

Analysis:

The chart above shows that 48 % customers were influenced and 42% were highly
influenced by the price. The remaining 10% were not influenced by the price.

Q15) What is customer opinion about price of sports cars?

Chart 15.1
Analysis:

From the above table we can see that 82% customers were influenced and 14% were highly
influenced by the product features of sports cars. 4% was not influenced by the product
features.

Q16) What is customer opinion about technology while purchasing a sports car?

Table 16.1

Level of influence No of respondents Percentage

Highly influenced 14 28%

Influenced 33 66%

Not influenced 3 6%

Total 50 100%

Chart 16.1
Analysis:

The above table shows that 14% customers were highly influenced and 33% customers
highly influenced by the technology. Remaining 3% was not influenced by the technology.

Q17) What is customer’s opinion about brand image of sports cars?

Chart 17.1

Analysis:
 The chart above shows that 62% of customers were influenced by the brand image while making
their buying decision whereas 38% respondents were not influenced by the brand image.

Q18) What is the purpose of customers buying decision?

Chart 18.1

Analysis:

The chart shows that 96% customers using their car for personal purposes. The remaining
4% were using it for official purposes.

Q19) What is the opinion of customer about after sales service?

Table 19.1

LEVEL OF INFLUENCE NO OF RESPONDENTS PERCENTAGE

Highly influenced 16 32%

Influenced 13 26%

Neutral 14 28%

Less influenced 6 12%

Not influenced 1 2%

Total 50 100%

Analysis

This shows that 32% customers are highly influenced with the after sales service of
the companies where as there is a mere 2% customers who aren’t satisfied with the
after sales
Entry-level luxury/compact executive cars
The entry-level luxury category is also known as the compacting Britain and (
Mittelklasse
in German). In the India, this segment mostly includes the bottom vehicles in the line-up of luxury brands
as well as the top-of-the-line models of some non-luxury brands. Compact executive cars tend to have
complex powertrain and mechanical layouts, resulting in increased cost and reduced interior passenger
and trunk space, compared to mass compact. However, material and building quality is higher, there are
exclusive features

 
Other vehicles such as theLexusESandAcura TLare also considered entry-level luxury as well, though
they do not fall under European luxury classifications as they are larger and not sold
there.R e c e n t l y ,   t h e   e n t r y - l e v e l   l u x u r y   h a s   b e e n   v e r y   c o m p e t i t i v e ,   a n d   t h e r e   h a s  
b e e n   p r i c e - overlapping with well-equipped non-luxury cars. The bestselling vehicles of the marque
are frequently compact executive cars, such as the BMW 3 Series that makes up 40% of the
vehicles that BMW sells worldwide