Role of Qualitative Market Research in Indian Auto Industry

An Indian qualitative research agency offers some unique benefits to a foreign automobile company, from finding the right sample group to defining the scope of its business.

The Indian auto industry is one of the fastest growing market in the world today. From luxury cars to the small car segment every sector of the auto industry has seen remarkable rate of growth and experts predict that this trend will keep up. This growth is all the more striking given the worldwide slowdown.

 The best of auto industry now have the line-up in India today. As more and more companies from counties like UK open shop in India, the focus has now shifted to qualitative market research in this field. As a high investment industry, research is instrumental in being prepared, minimise risks and create the optimum strategy.

In this scenario the Indian research agencies show a definite edge. With their understanding of the Indian consumer and market, they have become the perfect partners for these international companies.

Understanding cultural sensibilities: Cultural sensibilities can have a significant effect on how consumers and markets behaves. The Indian market is unique and cannot be compared to western markets. Qualitative research is often the only way to understand the local consumer. It shows one the most comprehensive picture of one’s market — income group, lifestyle, preferences and aspirations.

Understanding the culture affects the way a company communicates with its buyers, its customer engagement policies and even its marketing strategy.

Deciding the sample scope: Foreign companies often view newer market through a preconceived spectrum, the established pattern. Even selecting the right sample group can be tricky. For instance, how does one define the sample group for a particular automobile? Which cars will be deemed luxury vehicles? What should be the sample group for a small car?

Deciding the sample group depends on multiple factors like lifestyle and income group. With their understanding of the Indian market, Indian agencies with specialisation in qualitative market research are often the only means of getting the right sample. 

Engaging the local consumer: Qualitative market research in the automobile industry is a multifaceted process that has to be carried out at a fairly constant basis. The challenge often lies in keeping one’s research subjects engaged. This is further complicated when the research sample must remain constant over a long period of time. An Indian agency is far better equipped to both form this sample and then keep it on the project.

Defining the business scope: Defining the scope of an automobile industry can be tricky. One company often targets multiple markets and has to establish itself in different areas, from manufacturing, engineering to PR. How far should one enter the Indian market? Should one limit to its luxury line or start with a manufacturing plant? Should one look for a slow phased entry or release different models?

The automobile industry also involves high consumer interaction. Defining the scope will include several other parameters regarding shop fronts and after-sale services. This includes deciding on target markets, since different models often have different markets.

Ref: - http://www.articlesbase.com/marketing-tips-articles/role-of-qualitative-market-research-in-indian-auto-industry-7458236.html