Expansion Analysis for BMW

Expansion Analysis for BMW1. Prepare and implement a plan for the assemblage of primary and secondary data for assessing an area of business of your choice.a. Develop and use a questionnaire and justify its design for a particular purpose.1.1 Research Topic habitual Area of interest Expansion Diversification of Business.Specific sub area of interest -BMWs expansion in car segment in Mumbai, India.More particular topic of interest Which type of car segment should BMW expand their business in Mumbai, India.Research Topic BMWs expansion in particular car securities industry segment.1.1.1 BackgroundBMW entered the Indian foodstuff in the year 2006 after their arch rival Mercedes-Benz. Both the German luxury car unclutterrs have the maximum market share in the luxury car market segment. Recently Audi has entered their market and is giving both the automobile companies a tough competition. BMW is able to overtake Mercedes-Benz in terms of sales and has been at the top of the luxur y car market segment in India since the last four years. Audi is capturing the market segment rapidly with its peeled cars. So in order to remain at the top of the luxury car segment BMW as to react according to the change in rationalise and bring out new models to beat its competitors and block the entry of new competitors like Nissan, Porsche, Volkswagen, etc in their market segment.BMW has its sales subsidiary in Gurgaon, Delhi to develop its head teacher network in India. BMW has established 14 dealers both over India. Mumbai is one of the largest cities of luxury car market segment in India. The SIAM (Society of Indian Automobile Manufactures) has account that BMWs sales have grown by 12.76% to 1,020 units in July, 2009. The report also says that BMW has increased its sales by 43% to 3,000 units in 2010. BMW has future plans on increase their dealership in eight more cities of India. BMWs management team can understand the taste of the Indian consumers based on the explor e conducted in Mumbai, India. Mumbai cosmos the economic capital of India had the largest number of buyers of luxury cars in India. BMW had opened its start-off assembly center in Chennai in 2007 by seeing the potential harvest-festival in Indian market. BMW is really caution about its product launch in Indian markets because they just dont want to sell cars based on their speck revalue, but they wish to create better brand value by serving their customers with luxury cars with top of the line features, amazing performance and competing prices. BMW had surprised all its rivals by launching Rolls Royce cars in Indian market after studying the economic growth in India. But they still havent launched the cars of brand Mini because Indian customers are not ready for expensive small cars. BMW has always tried to make their cars on the basis of an idea of being practical and contemporary which has dish uped them go after in luxury car segment in India. The firm has also made cars w hich are fuel efficient and eco-friendly (working on hybrid technology) has boosted their brand value and has helped them find many new customers.http//automobiles.mapsofindia.com/cars/bmw/1.1.2 Aim for the Research ProjectThe aim for the research topic is to find out in which market segment should BMW make expansions (produce new models) in Mumbai.1.1.3 ObjectivesThe objectives for my research are to gather primary information for the research through Descriptive or Survey Research Design with the help of a questionnaire, secondary information via the staffs of the car companies and through companies sites, and conclude by research analysis and present it as a report to the BMWs management team.1.2ResearchLeedy (1985) defines research as the manner in which we attempt to solve problems in a systematic effort to push back the frontiers of human ignorance or to confirm the rigorousness of the solution to problems others have presumably resolved.1.2.1 Research DesignResearch Design i s defined as a framework or blueprint for conducting a merchandise research project. It specifies the details of the procedure necessary for attaining the information needed to structure and/or solve marketing research problems.http//destinydawnmarie.blogspot.com/2007/05/research-design.html1.2.2 Type of Research Design chosenDescriptive or Survey Research Design is utilise for the research as it attempts to describe and explain conditions of the present by using many subjects and questionnaires to in full describe a phenomenon. Survey research design /survey methodology is one of the most popular for dissertation research.http//www.dissertation-statistics.com/research-designs.html1.2.3 Primary Secondary ResearchThe methods used for primary research is Descriptive or Survey Research Design method by which qualitative data is self-collected through questionnaires. The questionnaire is filled by 100 good deal visiting the showrooms of BMW, Audi Mercedes-Benz and the data colle cted is examine and a conclusion is made. The questionnaire is designed to know the preference of the type of car segment concourse prefer to buy. Secondary data is collected from the showroom managers, balance sheet of companies and from the companys site. Using both primary and secondary research a conclusion is skeletal and presented in form of a report to the BMW management.1.2.4 Network DiagramThe network diagram is used to show how the market research is carried out and data is analyzed and generated into a report for the management of BMW.PD = Primary Data, SD = Secondary DataDiagram 1 Network Diagram1.3.1 Questionnaire for Primary Research1.3.2 Analysis of the QuestionnaireThe first question was asked to determine the ratio of gender of 100 mess who had been a part of this survey. The result showed that out of the population of 100 the ratio of Men Women were 73. The number of female who came to the showroom was 30 and the number of male was 70.Gender Male = 70 People Fe male = 30 PeopleDiagram 2 GenderThe second question is a general question asked to check how much the Indian people prefer to lease their car. The data collected showed that 95% of the people prefer driving their cars and 5% of the people do not drive their cars.People who like driving their car (Yes) = 95 People who dont drive their car (No) = 5Diagram 3 People Who Prefer Driving Their automobileThe third was based on how many cars each one possess who was surveyed. The data collected showed that 1 car was owned by 15 % people, 2 cars were owned by 10% people, 3 cars are owned by 25% people, 4 cars are owned by 10% people, 5 cars owned by 15% people, 6 cars owned by 15% people, 7 cars owned by 5% people, and 8 cars owned by 5% people.Number of cars owned1=15 people 2=10 people 3=25people 4=10 people 5=15 people 6=15 people 7=5 people 8= 5 peopleDiagram 4 Number of Cars OwnedThe fourth and fifth questions were asked to gather the information for the company to check the preferenc e of what type of car the people who were surveyed favorite(a). The data collected was tabulated according to the age group.Age Group of People Surveyed and their Preference for the Type of CarDiagram 5 Preference of Type of Car of People of Different Age GroupThe sixth question was asked to see what price cheat on the Indian customers prefer when they plan to buy a car. expenditure range of cars (00,000 Rupees) 20-40 = 25 people 40-60 = 40 people 60-80 = 25 people 80-100 = 10 peopleDiagram 6 Price function of cars (00,000 Rs)The data collected showed the price range preferred by the Indian customers. The data showed that 25% people preferred car in the range 20-40 (00,000 Rs.), 40% people preferred car in the range 40-60 (00,000 Rs.), 25% people preferred car in the range 60-80 (00,000 Rs.), and 10% people preferred car in the range 80-100 (00,000 Rs. This data is also essential as this will help the company to make cars according to the taste of their customers.2. Create inform ation for decision making by summarising data using representative values, and use the results to draw valid and useful conclusions in a business context.a. Analyse the data collected in problem 1 using measures of dispersion, and use to assess an area of business of your choice.b. Use quartiles, percentiles and correlation coefficient, and use these to draw useful conclusions in a business context.2.1 Quartile, Quartile Range and Quartile Deviationa. SedanQuartilesNth Value = = 45Q1 =Q2 =Q3 =Quartile RangeQR = Q3 Q1 = 39 18 = 21 yearsQuartile DeviationQD = = 10.5 yearsb. SUVQuartilesNth Value = = 35Q1 =Q2 =Q3 =Quartile RangeQR = Q3 Q1 = 47 32 = 15 yearsQuartile DeviationQD = = 7.5 yearsc. Sports CarQuartilesNth Value = = 20Q1 =Q2 =Q3 =Quartile RangeQR = Q3 Q1 = 38 18 = 20 yearsQuartile DeviationQD = = 10 years2.2 Mean, Variance, Standard Deviation Coefficient of correlational statisticsa. SedanMean = x = = = 35Variance = = = 66.67Standard Deviation = = = = 8.16Coefficient of strain = = = 0.23b. SUVMean = x = = = 39.28 = 39 (approx.)Variance = = = 81.71Standard Deviation = = = = 9.04Coefficient of Variation = = = 0.23c. Sports CarMean = x = = = 32.5Variance = = = 78.75Standard Deviation = = = = 8.87Coefficient of Variation = = = 0.272.3 Coefficient of Correlation of set and Age GroupSedan CarCorrelation Coefficient = r =r =r =r = = = 0.16625701 = 0.17 (approx.)SUVNo. of PeopleAge Group (X)Pricing Range (Y)XYXY1213573544112252234510355292025327451215729202542755148572930255296518858414225631752325961562573170217096149008328025601024640093285272010247225103535122512251225113545157512252025123650180012962500133660216012963600143745166513692025153755203513693025163860228014443600173860228014443600183865247014444225193940