1. Marketing research

(1.1) Market
* Size of the market
The size of the market is large - the whole car industry (world-wide) with multi-billion pound worth of value. Below are some of the car manufacturers today:

Acura | Alfa Romeo | American Motors | Audi | British Marques | BMW | Bricklin | Bugatti | Buick | Cadillac | Chevrolet | Chrysler | Citroen | Daewoo | DeLorean | DeTomaso | Dodge | Eagle | Ferrari | Fiat | Ford | General Motors | Holden | Honda | Hyundai | Infiniti | Isuzu | Jaguar | Jensen | Kia | Lada | Lamborghini | Lancia | Lexus | Lincoln | Lotus | MG | Maserati | Mazda | Mercedes Benz | Mercury | Mitsubishi | Nissan | Oldsmobile | Opel | Peugeot | Plymouth | Pontiac | Porsche | Renault | Rover | Saab | Saturn | Skoda | Studebaker | Subaru | Sunbeam | Suzuki | TVR | Toyota | Trabant | Triumph | Tucker | Vauxhall | Vector | Volkswagen | Volvo

* Market structure
The type of marketing in which we are concerned with can be categorised as industrial marketing. This means that we are making specialised products that are sold to car companies and manufacturers rather than the general public. The obvious reason for this is that the product is assumed to be fitted onto cars by engineers only.

* Industry output
Below is the statistics on car production. This information is required as we need to identify growth potential which is the key to find a new opportunity. A growing market is where prices and margins are higher and therefore more desirable.

* Mode of transport
This research covered travel patterns among London passengers. Travelling by car comes first with a share of 49% and bus usage follows with 19%. This is shown below.

Source : London Transport Household Survey




(1.2) Product
* Factors that may affect demand for the product
Demand for this type of product may be affected by several factors:
1. The rate of national income which depends on the Gross National Product (GNP) and the capital consumption. As the national income increases, so does the production of goods and services which include cars. The quarterly national accounts is shown below.


Personal sector
Industrial and commercial
Gross domestic
Gross domestic
Gross national

saving ratio
companies financial
product at current
product at constant
disposable income at


surplus or deficit
market prices
factor cost
constant market prices

per cent
śbn

1990=100




seasonally adjusted


1996 Q1
11.7
1
131.1
107.6
108.3
Q2
11.9
2.6
132.7
108.2
109.4
Q3
11.7
1.3
134.4
108.9
109.8
Source: ONS

2. Demand is also affected by a change in price of the product. A survey was conducted to find the general response to price changes. 30 samples of potential customers were taken and the result of the survey is shown below.


* Competitors Pricing
The chart below shows how car manufacturers (up-market) charge for their electrical optional equipment.


(1.3) Competitors
* Competitive analysis
The company is a leader in terms of the product it\'s developed but in such a large market, many other new technologies have been introduced. These products are designed to help improve vehicle - owner safety and security. They offer significant potential for automotive manufacturers. A study called APEAL by J.D. Power has shown that consumer\'s best interests are technologies that lessen the chance of an accident. This could mean that the product has some chances of success. This could be further proved by certain tests. Some of the emerging technologies of greatest interests to consumers are:
* Run-flat Tyres : drive up to 100 miles on a flat tyre
* Automatic 911 dialling : in an accident, vehicle would automatically contact 911
* Vision Enhancement : computer screen display to aid driving when visibility is poor
* Automatic Stability Control : Sensor which keeps driver from losing control
* Remote start-up : A button on the key which would start the vehicle from a distance


2. Marketing of the product

(2.1) Product and Planning
* Product lines and ranges
The company, so far, will manufacture a single product (one line) at a single price (one range). Therefore we need not worry about the product mix at the moment, though preparations should be done prior to further product development such as variations in models, quality offered at different price levels, responses to consumer needs or manufacturing process.

(2.2) Packaging
* Package design
The package should provide protection, offer convenience, reduce transportation costs, provide opportunity for