Dealers Performance and Customers Preference in Passenger Car Marketing - Case Study Example

Subaru Car Rental Marketing Strategy Insert name Institution Executive summary Every entrepreneurial entity is operated by departments for the achievement goals and objectives set by the organization. Some of these departments includes sales department, marketing department, just to mention a few. Significant to the operation is the marketing department that dictates almost 70% of the entrepreneurial holdings and incomes. This gives it formidable responsibility of steering the enterprise towards the set goals and objectives. An effective marketing department must therefore be characterized by proper procedures and mode of action. It must operate to consistently with the latest and most successful methods by best performing enterprises with real-time data. These must be inclusive in their intentions fully satisfy the consumers interests by offering long-lasting services. The Subaru rental holdings is a rental service holdings that has in the recent years grown to a fully-fledged entrepreneurial entity. It has shortly heightened financially and with A similar trend in addressing service demands of its consumers. This has been majorly contributed by her tireless quest in her marketing research strategy that has provided its management with relevant information for decision-making. Here are some questions that address some of the critical aspects in the methods used by the Subaru rental services. Introduction The role that marketing strategy plays is crucial especially in assisting in the context that the Subaru rental services is well acquainted with the consumers it offers its services to. In specific, the company offers innumerable directions, those revolving around expectations, tastes and preferences of the consumers in the respective segments. As much as it offers these crucial data, it also consolidates information appertaining to the consumers in real-time. As a result of her tireless quest to entirely address her consumers’ demands, it must try to address the question that “what must it do in order to be able to fully comply with her consumers’ interests.” To justify that this entity is a service oriented holding, it is quite evident that in its attempt to address the various customer preferences, various issues about the automobile accrue. These are used as a consolidating bases upon which the consumers’ loyalty are created (Chris, I. & Audley, G., 2010). This is in regards to four major findings by Subaru Company in her quest to improve on service delivery to her customers. Thus the following concerns emerge; That: In view of the geo-demographic situations, how or what are the factors that the consumers will have to consider in their attempt to identify the most appropriate automobile to suit their interest? What is the population rating of this system of service delivery? This is specifically achieved with the use of proper statistical measures that will observe an accurate account of potential consumers of the services provided by the Subaru automobile rental company? What is the culture in question consisted in the environment in question. This must come hand in hand with factors such as both the demographic as well as the physiographic demands emanating from the con summers personal profile. This entity must consider a group of consumers that are evidently loyal to the Toyota Subaru brand rental holdings. How far beyond the local environment would there be a likelihood of impact as the currently impacted areas. This is a factor that will be addressing a market analysis approach that compares the previous case studies to the current. It is a form of strategy that Subaru rental services has undertaken in order to understand the market demands of the consumers . Which criteria must be chose by the management to equally meet the immediate desires of the locals. ? This criterion will also be a comparative approach in intention. It has demonstrated for the Subaru Company the distinguishing line between her product services in comparison to those of other companies like Mercedes Benz. Toyota Subaru management decision plan The appropriate research design that has been always adopted by the Toyota Subaru rentals enterprise has always been the use of the census data. This has been used especially to realize the magnitude of population on the global scale, especially when conducted in different socio-demographic localities. Moreover, live interviews through the local and national media, for instance, the radio station. Part of this has also been adopted with the inclusion of the use of questionnaires to address immediate needs of the incapacitated. Through this method, the public will directly give relevant information for a consideration, so that everyone listens to and concur or disagree with the various interests. Most often, this design ends with a valid conclusion which therefore amount and so the Management is set to be working with firsthand information. However, this strategy being made public can be an added advantage to the Toyota Subaru consumer rental services. They shall have gotten a hint of the cutting edge of their counterpart thereby taking advantage of various marketing strategy components (Jan, R., Ann, L. & Andrews, H., 2011). Marketing Research Problem Being one of the topping market service providers, the Toyota Company got a stiff competition from syndicate market research that predominantly bore the mantle of one of the best companies. This ranking was based not on any unique monitoring agency, which would have been fraud. Instead, it was ranked because of the general services offered to its consumers; be it aesthetic value accorded or the quality products. In specific, syndicate was voted in regards of classiness, the design layout, pleasurable services offered by staff among other equally competent bases. Demographically it carried the day and closely ranked with the top most entities in terms of the financial income on a daily basis (Randolph, E., Buckin, S., Siddart, & Jorge, M., 2008). Recommended and future marketing Research Design As a recommendation, with the kind of approach to be used in addressing the research design, the Toyota consumers’ service rentals institution will be better placed to conduct an objective based research especially that they will be having primary sources of information. This will aid them in drawing deductions such as projection; these will instead be used as secondary sources of data for the enterprise. For instance, when the same enterprises to be mounted in a different geographical location then these are some of the criteria that may be used. Other than these projections, the service providers will also stand better chances of an added advantage emanating from their potentially staunch customers. This category of consumers is a reliable agent when it comes to conveying relevant information concerning their companies of choice; generally, they are a good group for marketing of products and services offered by any organization. With little expenses to be incurred, the hotel shall enjoy more benefits compared to its competitors (Shyamani, S., Garry, H., Mario, F. & Caroline, L., 2011) Subaru geo-demographical conceptualization Toyota Subaru consumers rental services involve in day to day operations in a premise situated in a global area of operation. It runs in a demographically extensive domain where varied individual concerns are presented for consumption, and redress by the management team. The most crucial of issues to be incorporated must include those which will be geared towards conforming to the entire group without any parity. To be specific the question should address a collective belief and quest by the customers (Angelika, D.,Yili, H. & Paul, A. , 2012) . Sample Questionnaire to be used by Toyota Subaru Company in her market analysis To be able to comply with a standard market approach, Toyota rental services can develop a questionnaire that incorporates the assessment of consumers’ preferences for automobiles for rent that will suit their interests. Average Scaling What are your perspectives of the various methods of service delivery? Type Ratings a. Mercedes Benz _____ b. Toyota Subaru _____ c. Honda Automobiles _____ . Intermediary ranking What are your perspectives of the various methods of service delivery scale, where 1 = no preference, and 7 = strong preference. No Preference Strong Preference a. Mercedes Benz 1 2 3 4 5 6 7 b. Toyota Subaru 1 2 3 4 5 6 7 c. Honda Automobiles 1 2 3 4 5 6 7 Ratio Rating What was your monetary expenditure on the capital within the business premises? Category Dollars Spent a. Mercedes Benz _____ b. Toyota Subaru _____ c. Honda Automobiles _____ Toyota Subaru rental customer service questionnaire. Q1: Do you have any basic knowledge about the Toyota Subaru company? a. Yes _____ b. No _____ In any case you do not know any basic information concerning Toyota Subaru company ( if your answer to the above question is no) then do not proceed to answering the questions to follow. We are very much grateful for your attention. If your answer is yes then proceed to answer the following questions: Q2: Have you ever in your lifetime hired a Subaru model of Toyota automobile company? a. Yes _____ b. No _____ (if you answer is No, skip to question 5 part of this questionnaire) Q3. If yes, what brand model of Toyota Subaru did you hire? a. Baja _____ b. Forester _____ c. Outback _____ d. Legacy _____ Q4: Are you likely to hire another Toyota Subaru model in the market the next time you go to hire an automobile from the market? a. Yes _____ b. No _____ Q5. How much would you consider the following factors when purchasing automobile products within various categories or brands present in the market? Mobile Delivery Not Important Neutral Very Important a. Reliability 2 4 6 8 10 b. Features 2 4 6 8 10 c. Comfort 2 4 6 8 10 d. Performance 2 4 6 8 10 e. Price 2 4 6 8 10 f. Image 2 4 6 8 10 g. Repair and maintenance 2 4 6 8 10 What are your ratings of Toyota Subaru brand of automobiles on the following? Not Important Neutral Very Important a. Reliability 2 4 6 8 10 b. Features 2 4 6 8 10 c. Comfort 2 4 6 8 10 d. Performance 2 4 6 8 10 e. Price 2 4 6 8 10 f. Image 2 4 6 8 10 g. Repair and maintenance 2 4 6 8 10 What are your ratings of other Toyota brand of automobiles on the following? Not Important Neutral Very Important a. Reliability 2 4 6 8 10 b. Features 2 4 6 8 10 c. Comfort 2 4 6 8 10 d. Performance 2 4 6 8 10 e. Price 2 4 6 8 10 f. Image 2 4 6 8 10 g. Repair and maintenance 2 4 6 8 10 What are your ratings of other Honda brand of automobiles on the following? Not Important Neutral Very Important a. Reliability 2 4 6 8 10 b. Features 2 4 6 8 10 c. Comfort 2 4 6 8 10 d. Performance 2 4 6 8 10 e. Price 2 4 6 8 10 f. Image 2 4 6 8 10 g. Repair and maintenance 2 4 6 8 10 What are your ratings of other Mercedes Benz brand of automobiles on the following? Not Important Neutral Very Important a. Reliability 2 4 6 8 10 b. Features 2 4 6 8 10 c. Comfort 2 4 6 8 10 d. Performance 2 4 6 8 10 e. Price 2 4 6 8 10 f. Image 2 4 6 8 10 g. Repair and maintenance 2 4 6 8 10 PART II Q 1. State your gender? Male _____ Female _____ Q 2. Marital status Married ____ Single ____ Q 2. Category of age? Below 18 _____ 18-24 _____ 25-29 _____ 30-34 _____ 35-44 _____ 45-64 _____ 65 and over _____ Q 3. Level of income (in $ us)? 0-$25,000 _____ $25,001-$35,000 _____ $35,001-$55,000 _____ $55,001-$110,000 _____ $110,001 and above _____ Emerging trend survey on the best package for international personnel Because Toyota Subaru has a package for families that are on vacation on a global scale focus, this category will have to be addressed on geo-demographic grounds. This group constitutes tourists whom travel traversing the varied disposition other than just forming a complementary to the company. It is true that most international tourists always value the comfort of their privacy and this leads to hire of automobiles in their countries of visit. This is most often than not to address the emerging globalization trends whereby there is no much discern for tour guides (Veena, A. & Venkatesha, H. R., 2008). This is a good market opportunity for the Toyota Subaru company given that tourism is one of the well fetching income as investments are concerned. Moreover, this has given the Subaru company room to market their automobile products on a global scale with a lot of accuracy; reason being that any benefits accruing from quality services offered to a client can be advertised in other branches in different countries. In the long run, the company gains better grounds for their advertisements in the countries in question. The population targeted cuts across very young children to the aged persons. The approach most appropriate to reaching this category is through the existing hotels and inns. The technique to be used in the sampling includes the quota method. This will also incorporate in its intention a better framework upon which a valid pricing strategy can be devised. The pricing strategy in question most often adopted by the company includes a perceived value pricing (Anil, R. & Githa, H., 2011) Significance of perceived value pricing for the Toyota Subaru customer services The company uses this pricing strategy especially to set procedure. It is used as a stage whereupon the benefits and functionalities by the consumers can be mounted (Kathuria, M. & Singla, V., 2012) . Business strategy tools Strategic analysis tools for any the Toyota Subaru rental services depend on the internal as well as the external environmental factors. Internal factors include attributes within the business that can be deployed for a perfect strategy; such as capital, action plans, and core values. The external factors include SWOT analysis, stakeholder analysis, and dynamic capabilities. Considering an internal factor like value chain, the business can be able to link the cooperation between the logistic stages to the final product delivery. With an external factor like SWOT analysis, the business has been able to devise the best approach of working with existing political and socio-cultural issues at hand. Unfortunately, some analysis tools like the SWOT have been used hand in hand with a rational approach. This has often given a subjective result. Moreover, personal values of the consumers have been influenced hence a negated outcome on the consumer. It has also at times provided a loophole for the competitors so that they adopt the strategies of the business and use it against you (Dharmaraj, C., Sivusubramania, M. & Sudhahar, J., 2010). Strategy formulation and Implementation In this stage of the Toyota Subaru marketing strategy, the end is focused with regards to the starting line. This has been viewed in regards to the final appreciation of the company’s services. It has involved various approaches like differentiation strategy, focus strategy, cost leadership strategy, typology approach and means-ends analyzer; where a goal is spotted, studied, evaluated and implemented. This process is governed by key principles like strategic envisioning, program integration and implementation, presentation to relevant agencies and finally the actual implementation. This is especially important in speculative approach of analyzing the threats and weaknesses. This will enable the business come up with scientific projections to fully address any activity that may set in as predicted (Larisa, K. & Tatiana, R., 2007) . Analytic tool used by the Subaru Company The most common method adapted by the Subaru Company is the Friedman’s non-parametric test. In this method, the producer can be able to determine the ratings in the perception of the consumers of her services. In this test, the null hypothesis states that a parameter related to the other comes from a similar population. So in general, it is an approach designed to address the concerns of a diverse phenotypic of a demographic scale. This study is also significant in that it also covers both the pre purchase as well as the post purchase trends emanating from the consumers of the services being offered by the Toyota Subaru holdings (Jan, R., Ann, L. & Andrews, H., 2011). Tabulation of previous findings Table A: Factoring in the SWOT factors for the Toyota Subaru company service providers- Strengths Factor in question Mean Standard deviation Mean in the rank Chi-square Df p Location convenience 4.47 3.004 5.59 Replacement of company branded spares/ authentic spare parts 5.04 2.809 5.05 Skilled manpower to offer the service 4.50 2.964 4.51 Modern technological appliances used 4.73 2.829 4.73 390.871 6 0.00** Competition ratings 5.98 2.844 4.29 Space 5.52 3.182 5.52 Direct contact customers 4.71 2.955 4.72 From the foregoing table, it is clearly evident that out of all the seven factors of consideration, the parameter; convenient locality was ranked first with a mean rank of 5.59. This is followed serially by space (5.52), replacement of company spares/ authentic spare parts (5.05), modern technological appliances used (4.73), direct contact customers (4.72), skilled manpower to offer the service (4.51) and finally competition ratings (4.29). Therefore it s conveniently acceptable that the parameters mentioned will directly influence the present customers towards preferences for the specified dealer (Veena, A. & Venkatesha, H. R., 2008). Table B: Factoring in the SWOT factors for the Toyota Subaru company service providers- Weaknesses Factor in question Mean Standard deviation Mean in the rank Chi-square Df p Service delivery delay 4.77 3.183 4.77 Charges heavily on the dealer 4.56 2.921 4.55 Monopolizing trends in the market 4.77 2.913 4.77 Private auto garage 4.73 2.907 4.73 237.194 6 0.00** Low and poor quality equipments 5.46 2.950 5.46 Inadequate mechanical manpower 5.22 2.875 5.22 Unskilled service mechanics 5.51 3.031 5.51 For the producer to identify the weaknesses and accruing factors, for any services it will provide to the consumers, it will need to undertake in pinpointing the issues that will not influence her customers as regards their tastes and preferences (Veena, A. & Venkatesha, H. R., 2008). Work Ethics embraced by the Toyota Subaru company In line with the overall opinion of the immediate beneficiaries the work ethics basically circulate around the methods that have been used by the Subaru Company to come up with concrete ways of finding the governing issues. This has always involved the use of a well defined sampling procedure. This is a statistical parameter that has been used to determine the defining factors that have influenced the preference of the consumers for the Subaru Company (Dharmaraj, C., Sivusubramania, M. & Sudhahar, J., 2010). Fundamentals of the procedure in the case study: -Population in question: Toyota Subaru rental Service Company based in the United States in the year ending calendar. -Conceptualization basis: With respect to demographics in the United States -The technique in question: Real interviews via the media -Sample size: A ten-day allotment to target at least 55 people on a daily basis -Procedure: The participants are actively engaged through a live broadcast and this must involve electronically selected random interviews. Results of the Analysis To show the validity of the sample size in the statistical terms, the sampling considers the methods of analysis like the ANOVA (analysis of variance) that focuses on statistics particulars. It also considers the implications of the research findings like the decisions to be made by the various governing organs of the Toyota Subaru company in the area in question; the United States of America. In specific, these considerations calls for a sampling size less than 550 people (Chris, I. & Audley, G., 2010). Discussion of the Results The factors that dominantly dictated the preference of the customers in hiring, and seeking mechanical and maintenance services for their Subaru automobiles defiantly vary from a given period to another. This is largely dependent on the environmental factors that also are a parameter that continually changes. In this case study, it is most critical that the dealers in the automobile to get well acquainted with their customers preferences, choices and tastes (Veena, A. & Venkatesha, H. R., 2008). In recent researches conducted by the company in liaison with its sales and marketing personnel, it is quite clear that one of the pre-dominant factors in such an influence is an in depth study of the customer satisfaction. In this study, it is revealed that there is a common denominator in the association and the acquaintance. This directly impacts on the customers’ decision to freeze on any company dealers they are associated with. In this regard the Toyota Subaru company being a stronger dealer is necessitated by the quest to hold fast to the set induction impacted on their clients. The company has to continually nurture this added advantage and strength as compared to her competitors. Capacity building of the personnel within the company The sampling plan that has been adopted by the Toyota Subaru company is in line with capacity building. This has often accrued mounted customer knowledge on the premises of the company. For instance, the areas in question that have always been involved include: Qualitative control and analysis of procedures to collect data: This has always called for additional expertise requirement. The group deemed with conduction the interview must be under keen direction and control from a professional public relations officer. Developing mark sheets for every rating of various respondent concern: This will involve a high precision in data collection so that even the most fine details that otherwise would have been unaccounted for, is finally considered. This is to avoid generalizations that may amount to parity during decision-making process. Virtually, all the respondents will be accounted for and most of them will feel valued in their participation. Improvement of Individual contact: With the method of approach suggested, the respondents will be in direct contact with the managing organ of the company. This will acquaint them with assurance of satisfaction of needs because they will have directly pinpointed them, thereby leaving the market researchers with a small task of analysis especially that the available data will be highly precise. Physical Evidence Being that the service products are invisible and it takes a great analysis to factor in these components of feedback; the Toyota Subaru company has gauged the satisfaction levels of her consumers through market response functions. For instance, the estimated model parameter has been handy in this line, such that they have used it to simulate the overall market share for each automobile company. This is achieved through the involvement of calculations of values corresponding to the dealer densities. This is considered within a range of “per 1000 square miles” This data is best given by centralized modern real time technologies that are able to give up to date information on all automobiles. Conclusion In conclusion, it is evident that for every decision of a customer to avail the services accruing from a given product, just before the actual transaction, they will have a handful of questions denoting the service to be offered. Based on the totalities of their general opinion, the company in question should provide relevant and reliable information to help the consumers in quick decisions based on the same. Moreover, it can be clearly seen that not all consumers will have the same preference for a given brand of commodity; and not all producers will be able to provide all services heeded by the consumers in the market. Therefore the findings of this study are aimed at enlightening the producers and consumers within the automobile company holdings to be able to understand the role of preferences and tastes at the market. This will therefore dictate the basic governing principles of marketing, thus; product, price, place, people, processes, physical evidence and promotion. From the foregoing, it is evident that Toyota Subaru Company has developed such a forceful strategy as it has considered the guiding principles of strategic market analysis. 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