PURCHASE INFORMATION OF MOTOR BIKES

QUESTION

RInstructions for BSBMKG507A Assessment

For this assessment, you need to demonstrate competence by applying a range of statistical techniques to analyse market trends and developments, current marketing performance and comparative market information. You must also be able to demonstrate your ability in documenting analysis of market data findings.

You will need to complete and demonstrate competence by answering the short questions below.

Short Answers 4 pages:

1. 1.     Determine the product

Determine the price

What is the expected life time of the product purchase?

What is the expected life time of the customers purchase?

Determine the life time value of a customer

1. 2.     You have decided to investigate which brand of products that your customers prefer. There are 6 brands available for sale. The data you obtained by surveying 300 people is presented below. Can you be confident that Brand D is the most preferred brand in the market?

You need to explain if you are not confident, what would be some of the underlying reasons why brand D is not the most preferred brand in the market? (In 2 pages)

1. 3.     What happens if you find that your product or service over-performs or under-performs? (Explain it in 2 pages)

1. 4.     Short paper report:

1. Think carefully about your organization, or a business of your choice

or pick an organization from the case studies in http://www.marketingmag.com.au/case_studies/list/

What trends do you think will pose the biggest threats to its continued existence at this time?

2. Present your findings in a 2 page minimum word document.   

.SOLUTION

Determine the product:

The product is motor bikes. The motor bikes are designed in depends upon the task such as for long distance travel urban traffic in congested road ways sport and racing model. Motor bikes are one of the most affordable and cheapest transports from location to the other location. Most of the people in the world like to travel in the bike for having such comfort. They have more advantage than car. Ducati is the famous manufacturing company in Australia as well as in the world.  This bike is mostly focused on the sportive look. And they company also involved in the race competition. These bikes available in all the parts of world with the varying cubic cycle engine.

Determine the price:

 The price of the Ducati bike varies with the model, power of the engine, color and with its technical specifications. The Ducati motor bike starts from $13000 till $24000. There are other several companies also available in the market like Honda Kawasaki and Suzuki .but the features and specification will differ from each other. The price is the major attraction for the people to choose the bike. Because this is the one of the company will release new models at the regular intervals with the decent price for the customers.

What is the expected life time of the product purchase?

The life time of the Ducati motor bike is totally depends upon the usage.  The life span of the motor bike is directly proportional to the user. Innovative methods and the materials will help to increase the life span of the motor bike. In order to maintain good life span of the motor bike the engine should be maintained properly by giving regular interval of service. And the most important thing the motor bike of the engine should not be altered to get the extra ordinary performance. Because it will create a damage to the bike. And it also decreases the efficiency. Rash driving of the motor bike will also affect the engine as well as the other parts in the motor bike. So the expected life time of the bike will depends on the usage and with proper maintenance.

What is the expected life time of the customer purchase?

In the customer point of view they every customer wants the motor bike to give long run life with the smooth performance. The most major important thing that the customer would expect is the motor bike mileage. Mileage is the key factor for the motor bike usage. In the modern world the cost of petrol and oil increases day by day. So customer will expect that the motor bike should give more mileage. So that it will helps to move from one place to the other place with the low cost. The Ducati bike gives the expected mileage for the customer. Apart from the motor bike mileage customer also focus on other additional accessories like chain guard, engine guard and the helmet.

Determine the life time value of a customer?

Ducati motor bike company has a good life time value of the customer. They develop trusting relationship with the each and every customer from the beginning till the end. They encounter the problems of the valuable customer and provide them an incredible service and extraordinary experience and attention to the detail that will make them to come back again and again. By providing good customer satisfaction the life time customer will also bring the good business from the children relative and their close friends. Providing exact information which will help to connect the customer in an emotional level and the capability to fulfill the life time of bike purchase.

2. You have decided to investigate which brand of products that your customers prefer. There are 6 brands available for sale. The data you obtained by surveying 300 people is presented below. Can you be confident that Brand D is the most preferred brand in the market?

As per Adams the Ducati motor bike is the most preferable in the market. Because the customer also voted as the high rates for the brand D. so many companies were in Australia such as Kawasaki Suzuki Honda and aprilla. But the customer chosen Ducati is the world class bike. The more advantages of this motor bike company are they deliver a new model in the regular intervals of the time and year. More over the satisfying the customer in every aspects like releasing the bike with the every class of people varying from low class people to high class. And the cost also ranges from $ 13000 to $24000. So that the people can chose their own style of bike with the desired cost. It is the major attraction for the people towards the bike. When compared to other major competitors of the other brand bikes.   Ducati is the one of the major company cross the annual sales of 68% in the first quarter of the year 2011. Ducati motor bike company has the capacity of grabbing the customer heart by providing the customer satisfaction. Among the other competitors the company has deserved the quality and the standard to achieve a great success in the market. Maintaining the good strategy in their business and understanding the demands of the customer made them to be in the pole position. As per Duglin the main advantage of the Ducati Company is the marketing technique with the innovative ideas. The company analyses the market condition as well as the strength and weakness of the other competitors so that it becomes more useful in considering the customer take over process as well as the different service level to offer different customer groups. Customer life time for thaw Ducati motor bike is always high. Ducati motor bike has the standard of targeting the potential customer to develop their business and focusing more efforts of marketing towards the segments.

3. What happens if you find that your product or service over-performs or under-performs?

Performance is more important for each and every product. In the motor bike the performance is the main icon to attract the customer. The customer will get attracted when he takes the test drive of the bike so that he can evaluate the performance of the motor bike. When the product over performs it is the biggest advantage for the company. Which will helps to explore the company among the people. Over performs also helps in marketing the product. Because when the product over performs automatically the publicity will spread all the corners. So when marketing the customer could easily get o know about the company and the product which will provided greater benefits for the marketing as well as for the company. More over when the product over performs it is necessary to maintain a successful strategy and should be careful every time before it slips to the other positions. Because the competition is very high and every company want to be in the pole position. So it is necessary to take the required steps to maintain in the healthy conditions.

When the product is not performed well in the market and it is still under performs it is more important to focus on the lagging areas. Because it will helps the company to bounce back into the competitions. Need to analyze the product performance. When the bike is not moving at the good flow. There will some defect in the product or tough completion. Underperformance will happens when the customer is not satisfied with the prices. Because the price plays the vital role in all the products. According to Parasuraman customer will focus on the price of the bike. And then with the technical specification like clutch, engine, chain guard and mileage. All the above factors should satisfy the customer in order to develop the business in a high level. If not the business will be in the lower grade. When the product is dejected from the customer definitely there will be valuable reasons behind that. I will check the product with the other competitor’s motor bike as well as trace the current market condition. And I also trace the other features what the competitors currently hold based upon the information I will align my product to the maximum size. When my product is lags in the price I will alter the price of the product along with the market condition. But at the same time net profit also focused. When the bike torque is low or the pickup is not up to the mark. Some alteration will made to replace with high torque and good pick up.  Likewise where ever the product lags it is necessary to replace with the innovative ideas with the technical information. So these conditions will help the product to drift from low level to the higher level. Which in turn provides a good base for the company to build up and maintain sustainable relationship with the customers. So this technique will yield a good business by spreading other like relation friends and cousins.

4.  What trends do you think will pose the biggest threat to its continued existemce at this time?

Since the Ducati is major motor bike company in the world and in Australia its leading company. According to Dolan the biggest threat for the company among the competitors is the price strategy. Because the price of the Ducati motor company is slightly costlier than the other companies like Kawasaki Honda aprilla etc. this company bike had variation in the price among each other. The price is designed for each and every bike based upon the quality and engine standard. More over the other companies also coming with the new thoughts and ideas to establish in good plat form. So the competitors also releasing the bike with the different models with high power engine to beat the Ducati Company. In the customer point of view they have plenty of option to choose the bike what they wanted. So automatically competition arise a head among each other company. The other new companies like zero motorcycles also participated in the competition with the innovative ideas. As per George competitors also analyzing the market condition and tracking the customer needs and delivering the quality product to them. Ducati motor bike company gives a less mileage than the other companies because of the high cubic cycle engine. When the engine power increases the mileage of the motor bike will decreases. But the initial torque of the bike will be high due to the power engine. Which will have huge impact on the bike for high power. By knowing the advantage and disadvantage of the Ducati motor bike company. The competitors altering some specification in their product to beat them in the production as well as in the sales. They also release the bike according to the customer standards to meet their demands by releasing the bike with average torque with the good mileage. Other important threat for the Ducati motor bike company is interest rate. Due to high interest rate customer are moving to other financial service for the loan to take up the bike in the installment basis. Other companies are having low rate of interest which attract the customer to a high level business.  It is more profitable when the customer buy the bike in the company also he should take the loan from the same company. Because each and every company has e self financial service firm. When the customer slips out of the other company for the loan. then the company will be in the loses. The revenue will come to the downfall which also provides other competitors to overcome the company. It is more important to keep the customer in hand for ever. Because so many car companies also releasing the car in fashionable way for the customer satisfaction. So obviously customer would get attracted to the car instead of going to the motor bike. Because in the motor bike only two person can accommodate but in the car minimum four person can sit. So it is necessary to attract the customer by delivering different model of bike with the good standard of power with the pickup and mileage.

References:

Adams, Dean (2006-08-22). “Bombshell: Ducati Pulls Out Of AMA Superbike

Duglin Kennedy, Shirley (2005). The Savvy Guide to Motorcycles

Dolan, Robert J. and Simon, Hermann (1996). Power Pricing

Parasuraman, A. (1997). Reflections on gaining competitive advantage through customer value

George J. Stigler ([1987] 2008). “competition,” The New Palgrave Dictionary of Economics.

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