UNION MOTORS CORPORATION

PRESENTED BY ABHINAV SINGH ANSHUMAN SHARVESH AVNEET SACHDEVA KRISHNA GOPAL MAZUMDAR SOURAV CHOUDHARY

COMPANY OVERVIEW
Union Motors Corporation manufactured and marketed motor vehicles.
It sold three lines of automobiles. UM distributed most of its U.S. output through over 2100 retail dealers.

CASE OVERVIEW
UMs THEORY OF DEMONSTRATION Demonstrating the car to a prospective buyer - a basic factor in selling an automobile.

Nothing would convince a prospect better than hands on

drive with the car

SURVEY
Conducted at UMs as well as competitors dealers: PURPOSE: Compare the trade in offers made by UM and its competitors Sales representative approach towards customer Whether demonstration ride was offered or not?

ASSUMPTION s
No of people coming for demonstration of cars(month): 100 Conversion rate of demonstration to actual buying: 70% Total used Cars purchased in a month: 70

Union motors X month(sale) Y month(sale) 29(41%) 25(36%)

Nearest rival 23(33%) 25(36%)

Z month(sale)

22(32%)

27(39%)

MARKETING RESEARCH

PROBLEM

Demonstration has a significant decline from 41% to 36%

OBJECTIVE:

to revive demonstration ride offers back to their past frequency(i.e. back to 40%)

RESEARCH DESIGN:

Exploratory & conclusive research INFORMATION TYPES: primary data gathered from dealers

SAMPLE SIZE:

20 dealers(approx.)

QUESTION 1
Did the sales department people have solid ground for assuming, as a generality, that demonstration rides sell cars? Yes because demonstration could convince a prospect most efficiently since they were dealing with old cars (even if conversion rate was 70% yet it was a strong medium to convince prospect buyers.) All the competitors were also using same promotional techniques.

QUESTION 2
Q Do the retail sales people know what the central sales office does not recognize namely, some facts that are rational motivations for not demonstrating new cars? Does sales performance correlate with giving demonstrations? ANS:-yes retail sales people recognize some other rational motivations for not demonstrating new cars that is why they reduced the number of demonstration instead being trained to do so.(competitors provide better trading allowance) yes sales performance correlate with giving demonstration, but there are other factors also which influences the sales.

QUESTION 3
Has the sales department wrongly interpreted the shopping survey data? These studies, after all, were designed primarily to measure dealers trade-in offers. ANS:-YES BCOZ THE SURVEY WAS MERELY FOCUS ON increasing the demonstration ride Neglected points: Was there any better trade in offers made by their competitors Sales representative approach towards customer

QUESTION 4
The objective to be measured, in the assignment ,was to be the number of demonstrations offered. Phil knew that UMs corporate objective was profits, although the sales department usually sought higher sales volume. Which of these ought to be the objective measured in the demonstrations study? Or were they right in measuring number of demonstration offers as the payoff?

ANS:-they were not right in setting number of demonstration offers as the parameter for payoff. They should have gone for sales volume as their objective with measuring & giving importance to the factors which affects the sales volume.

QUESTION 5
Had the sales department considered that the dealers might have different objective from UMs? Or that the retail sales peoples objective might be different from the dealers? What might those personal objectives be? And how would that affect the study?

ANS:-. No they have not considered any other objective from point of view of dealer or retailer. Their personnel objective could be: It may so happen that dealer might have not given the proper discount to the sales representative to lower their losses. Dealers/sales representative might be trying to sell high priced cars to earn high profit margin/commission. these are important factors which if ignored can give up wrong figures/result to UM.

QUESTION 6
The sales department discussion implied that they wanted two studies to be made: an exploratory one to find optional solutions and a conclusive one to test effects. Would those suffice? Was some other study needed also?

ANS:-thse study types were adequate but some other important factors must had been taken into consideration: Customer preference Prices offered Promotional strategy effect (causal) Sales person behaviour Personnel dealers/sales representatives

 THANK YOU