NICK THOMAS CASE 1
The case is about the strategic decisions that Advance AutomobileConcepts (ACC) division needs to make. The Division is part of ZENMotors. The case also examines how the attitude of consumer’stowards global warming influence the vehicle they prefer. ACC needsto carefully decide on the vehicle models to design, manufacture, andmarket so as to increase the company’s market share.
The Source of Problems.
The source of Nick Thomas’ problems is the inability of the companyto monitor and adapt to changes in its market. ZEN Motors was anindustry leader in the production of large luxury vehicles untilthere was a pertinent concern on global warming that made consumersstart purchasing smaller vehicles. The company did not anticipate nordetect this market change early enough. Unlike its competitors, ZENMotors failed to foresee the impact of global warming on automobilesales and adopt accordingly. Nick Thomas ought to put measures inplace to help the company effectively monitor its environment.
Description of problems facing Nick Thomas as learned from TheDouglas Report.
There is the need to address various existing problems for thesuccess of the decisions made by the company. The problems affectthe demand for the different basic vehicle models, the identificationof market segments and marketing efficiency.
ZEN Motors design and produce basic vehicle models. However, theDouglas Report elaborates that the demand for fuel efficientautomobiles is sufficient enough to justify the manufacture ofnumerous models. Also, different market segments are more likely todesire different models. The problem is whether the company shouldincrease its line of motor vehicle models to include small fuelefficient ones. According to Thomas, such models may be marketablefor only a brief season.
Individuals from diverse demographics make up the broad marketsegment of the automobile industry. Nick Thomas has to struggle todetermine the income, gender, level of education, marital status, andany other basic background information about the company’s marketsegment.
When it comes to the area of marketing efficiency, the problem is howto establish if the marketing activities are effective. The marketingefforts may be out of touch with current technology and the mood ofthe market. If that is the case, a new strategy needs to be drawn tomake sure that the company and the various models available areefficiently marketed
Relevant research objective that addresses the problems.
When it comes to the demand for basic models, the research objectiveneeded to satisfy the problem can be to find out the vehicle category(SUV, Saloons) common in the country. The company can use statisticsfrom the registrar of motor vehicles to find out which vehicle typesare frequently registered. The company will then be able to know themodels that are demanded the most and focus on making them.
When it comes to identification of market segments, the researchobjective needed to satisfy the problem can be to establish theincome, gender, level of education and marital status, of the averagemotor vehicle buyer. The company can collect information about thisthrough questionnaires. The questionnaires should contain all therelevant questions and will help the business know more about itsmarket segment.
The research objective when it comes to the issue of marketingefficiency can be to establish if aggressive marketing can result inmore vehicle sales. The company should check how much money it hasput into advertising over the past years and the sales reported inthose years. The information will enable the company to establish ifthere is a link between high sales and periods of intensivemarketing.
A business should be keen on its environment. It should also be veryattentive to its customers. Customers now have access to moreinformation than before and are capable of making informed decisions.The company should also be flexible and very adaptive to changes inits environment.