BRICS Research Paper Example | Topics and Well Written Essays - 2500 words

BRICS - Research Paper Example In order to identify the potential buyers in the automotive industry of Russia it is necessary to gain in depth knowledge about consumer behavior and their needs and wants for the products offered in the country's automotive industry. As a whole the dealerships are considered to be the primary buyers within the automotive industry in Russia. However the pull exerted by the end users is also important. The switching costs for the dealerships is very high mainly because of the fact that in most cases the automotive manufacturing companies have an exclusive contractual agreement with the dealerships. In a way the dealers are actually forced to sell the models and brands as preferred by the consumers. All these factors suggest that dealerships are the primary buyers in the market and they should be targeted in an effective manner to become successful in capturing the market in Russia. Next it is important to identify the target consumers and their specific needs and requirements to resul t in increased customer satisfaction. According to a research study conducted by Nielsen (2011), the main factors that are considered by the consumers in Russia while buying a car have been shown in the figure - 1. Figure – 1 The main factors of choice of cars by Russian consumers (in %age) Source: (Autobusiness, 2012) As evident from figure - 1, the most important factor considered by the consumers in Russia while purchasing a car is quality and reliability of the product offered to them. Apart from this other key factors considered while selecting a car includes the car price, fuel consumption, safety, design of the car, total cost of ownership (TCO), comfort levels, roadability and the car capacity. Quality of products, reliability and price are in general important factors considered by consumers of all age groups, and gender. However TCO is preferred to design by men as compared to women who prefer design over TCO. As regards the age differences, consumers in the age gro up of 20 to 30 years are more concerned about the design of the cars and they prefer powerful cars. The middle age group (31 to 40 years) consumers are found to be practical in nature and they prefer cars with increased capacity and of lower prices. Quality and reliability are the major factors concerning consumers in the age group of 41 to 60 years (Autobusiness, 2012). The key factors or measures that should be considered while analyzing the automotive market in Russia includes population growth, new passenger registration, household earnings, pattern of growth of the middle class people, and oil consumption pattern in Russia. This study is designed to research on the possibility of General Motors expanding its business in Russia in the field of luxury cars. It is expected that by the end of 2016, Russia would become the largest automotive market in Europe. The Russian automotive market has experienced an unprecedented growth in sales of luxury cars in the recent years. It has bee n estimated that in the first nine months of 2012, 2.18 million luxury cars has been bought by the Russians as compared to 2.36 million bought by the Germans which is the highest recorded figures in the industry. With respect to the rise in oil prices, the elite class people were benefited the most and there has been a rise in the sales of luxury cars in Russia. This rise in sales of luxur