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Customer Analysis Of U.K Car Market

2104 words - 8 pages

Car manufacturers in the U.K are predominantly foreign owned companies. The most prestigious UK brands are owned by Ford, BMW and Volkswagen-- Aston Martin by Ford, Rolls-Royce by BMW and Bentley by Volkswagen.Ford group of companies is the largest supplier of volume manufactured cars to the U.K market. In addition, its Jaguar and Volvo brands are among the leading brands in the luxury market. Mazda, the Ford subsidiary is a well known band in the sports car and innovative intelligence.General Motors of the US is the second largest suppliers of cars to the UK market and regularly occupy the leading position in new car sales. Its Vauxhall brand is very famous in the volume market. It has also introduced a powerful sports car to compete with other major brands in the sports car market.French brands like Peugeot, Citroen and Renault are also among the major brands and making good progress.German companies are prominent in both volume and luxury market. The main German brands are Volkswagen, Mercedes-Benz, BMW, Audi and Porsche. BMW manufactured a new Mini in the U.K which is highly successful in the domestic as well as foreign market.Japanese companies are also well established in UK. The leading brands are Toyota, Honda and Nissan. These companies also run their own manufacturing plants. Other Japanese brands are Mazda, Mitsubishi, Suzuki and Subaru.Toyota is the leading Japanese brand in U.K and produces a comprehensive range of cars covering all markets.MG Rover is the major independent UK brand offering model ranges mainly for luxury car market, although it also operates in sports car and small car for volume market.The main Italian brands are Fiat and Alfa Romeo for the volume market and Ferrari and Maserati in sports and luxury market.The Swedish brands Volvo and Saab are now owned by Ford and General Motors respectively.South Korean brands are Daewoo, Hyundai and Kia are established brands and offer good value for money.Types of customersThe car market is essentially divided between private buyers ( consumers) and the business and fleet buyers ( customers), which specialise in providing a range of company and general car hire for their clients. Private buyers will buy their cars from franchised dealers who exclusively sell one brand of car and therefore the manufacturer exercises great control over dealers since he can remove franchise if it falls short of manufacturer's expectations. In return for the franchise, a dealer must offer a good aftercare service, to honour the warranties (typical 3 years) that are guaranteed to be the manufacturer. (Key Note, 2002)The franchise dealer stranglehold is ending paving the way for the Internet and global commercial pressures which will create major changes in car distribution. Car supermarkets, web-based sales companies and retail outlets such as consumer hypermarkets will take an ever-increasing proportion of new car sales.The fleet policyA company will follow one of four policies regarding...

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