GBMP 509 M1 BUSINESS RESEARCH METHODS ASSIGNMENT 2: REAL LIFE RESEARCH CASE 1.

A CASE STUDY ON CONCERNS REGARDING ENVIRONMENTAL CONSCIOUSNESS AND RISING GAS PRICES ACROSS CANADA

Presented By: Artem Uspenskiy George J. Puthenmadhom Matt Kraljevic Parul Thakur Roopam Singh Yashraj Dhillon

Research Objectives: To utilize the statistics from the IPSOS Reid survey to explore the market opportunities regarding automobile sales for Toyota and Honda by focusing on customers who are concerned about environmental friendliness and rising gas prices. In order to understand and achieve these objectives we have focused on the following: - Background Statement (which includes Case Summary & Method of study) - Importance of Marketing Research in Strategic Decision Making - Analysis of the Survey - Consumer Buying Behavior - Recommendations for Automobile Companies

Background Statement: With increasing environmental consciousness and rising gas prices, IPSOS Reid conducted a survey in May 2007, which showed that 84% of Canadians are concerned about nonindustrial sources of greenhouse gas emissions (McDaniel 2009). Of these, Atlantic |Canadians were the most concerned, while the residents of Manitoba, Alberta and Saskatchewan were the least concerned. Contrary to popular belief, over half of the respondents felt that automobile manufacturers are very responsible in terms of taking measures to reduce greenhouse gas emission and were considered more responsible than Canadian drivers, governments, consumers and public institutions (McDaniel 2009). The survey clearly indicates this is an Applied Research as it primarily focuses on the Canadian general populations concern towards environmental degradation and rising oil prices which has been carried out with the intention of finding a solution. This survey is not an academic based survey where facts and statistics are gathered for the sake of academic knowledge. With a commercial and large market in mind, the findings of this report are aimed at finding a solution to the identified problem, which makes this an applied research. Importance of Marketing Research in Strategic Decision Making Facts and statistics are what successful businesses are built on; without conducting thorough market research and appropriate surveys, major corporate decisions made would be unwise and high on risk. Market research involves several steps which are critical for a company to achieve its ultimate objectives. This involves identifying market trends, profiling demographics, understanding consumer buying behavior and studying existing competition.

The analysis of these reports can help the company make better business decisions, meet customer requirements and explore new ideas for products and services. This also helps the company pin-point their shortcomings and seek ways for improvements or solutions. Analysis of the Survey According to the survey, environmental issues and rising gas prices have caused a major concern amongst the Canadian automobile owners market (McDaniel 2009). Using the figures and statistics from the survey, automobile companies can address these problems effectively. We would be taking into consideration the prospect of developing eco-friendly cars: Hybrid and Electric. The idea for developing more eco-friendly cars has already gathered pace in several European countries. Strong environmental concerns and short term economic pressures have made Car manufacturers such as BMW, Daimler & Saab more conscious of sustainability and energy efficiency and as a result have invested heavily in research and development on alternative fuel technologies (Environment Eco-innovation Action Plan 2011). A second approach to this problem would be producing fuel-efficient cars (Canadian Renewable Fuels Association 2010). According the survey, the concern over rising gas prices is a major issue with car owners and this problem needs to be addressed. Targeting regions such as Atlantic Canada with eco-friendly cars would be a good strategy for Toyota & Honda, as results show that the largest percentages of people with environmental concerns reside in this area (McDaniel, 2009). Consumer Buying Behavior As the survey shows, a huge portion of the populace has shown concern towards the two major issues in the survey; however, there is no statistical data that confirms the buying habits of the consumers. There is no evidence in the survey that shows that a customer would prioritize ecofriendliness as a major factor while purchasing a car. The buying habits of people may vary and depend upon many other factors. In fact, according to a survey conducted by Consumerreports.org, the top four factors for purchasing a car included Safety, Quality, Value & Performance followed by eco-friendliness (Car Brand Perception Survey 2013). It also reports that in a troubled economy, reliable vehicles which promise low operating cost often trumps eco-friendliness as a priority (Car Brand Perception Survey 2013).

Thus, another survey might be needed to determine the exact buying habits of the consumer. That being said, according to the given survey done by Ipsos Ried, environmental friendliness is the most important factor. Recommendations for the Automobile Companies In addition to this general survey, automobile companies can also conduct their own research to identify more specific areas where these problems exist. Such a study would yield more focused results for the company and as an additional benefit would help them to increase product manufacturing and distribution in the long run. Honda and Toyota may carry out their own independent research (online & physical). The research should be focused on the same demographic as the one in the survey conducted by IPSOS Ried to obtain people's opinions and ideas on measures that can be taken to develop ecofriendly cars which suit their requirement and fit their budget. Companies can also carry out an Industry wide research to identify the latest technology in eco-friendly car manufacturing.

Honda and Toyota are among the leading giants automobile industry. Although Honda and Toyota already have hybrid cars in the market, in order to enhance market penetration, the following steps can be taken: a. Introducing biofuels (Renewable fuels, ethanol and biodiesel-high performing fuels are being blended in, non- toxic fuels) (Canadian Renewable Fuels Association Organization). b. Consider developing electric cars which run on rechargeable batteries and co-ordinate with government authorities to introduce infrastructure like battery charging points at select places to facilitate use of such vehicles. c. Increasing awareness amongst the people about the benefits of using eco-friendly technology through extensive marketing campaigns which would include advertisements, sales promotions and PR drives. Conclusion While such actions have an obvious environmental benefit, they can also be a new source of income for the companies themselves. The development and execution of such sustainable strategies can help companies cope with changes in the global economic climate by cutting costs and maximizing resource efficiency as reduced emissions and resource consumption leads to lower business energy bills and that extra money that can be invested in other projects. Thus, the challenge of creating new eco-friendly vehicles and clean technologies presents excellent business opportunity as well.

REFRENCE LIST
Canadian Renewable Fuels Association Organization. (2010) Industry Information; Renewable Fuel Blending In Canada. (2010) Retrieved from http://www.greenfuels.org/en/industryinformation.aspx Environment Eco-innovation Action Plan. Business embraces clean technology to increase sustainability. (July 07, 2011). Business embraces clean technology to increase sustainability. Retrieved from http://ec.europa.eu/environment/ecoap/about-ecoinnovation/business-fundings/eu/451_en.htm Espinosa, B.B. (July 31, 2012). Environmental Leader. Worlds Greenest Companies and What We Can Learn from Them. Retrieved from http://www.environmentalleader.com/2013/07/31/worlds-greenest-companies-and-whatwe-can-learn-from-them/ McDaniel, Carl D. (2009) Marketing Research Essentials. Canadian Ed. Jon Wiley & Sons Canada. pg. 20. 2013 Car Brand Perception Survey. (February 2013) Consumers rank Toyota, Ford, and Honda above the competition. Retrieved from http://consumerreports.org/cro/2013/02/2013-carbrand-perception-survey/index.htm