Developing Hybrid Vehicles at General Motors - Research Proposal Example

YOUR FULL YOUR Research Proposal: General Motors Having performed a situational analysis of General Motors Corporation (GM), this proposal will offer a description of a research question that is designed to assist management in improving its market share and product diversity. Once the proposed research is finished, the company will be able to make informed decisions about how to adjust its current product line to meet consumer demand. Purpose. The automotive industry is highly competitive, and requires GM to constantly consider what the customers want and how to efficiently provide for the demands in the market. One of the major trends in the automotive industry is the move to hybrid vehicles. As gasoline prices rise, and customers become more concerned about the environment, vehicle manufacturers are finding a demand for more fuel-efficient cars. The new product paradigm is based on combining technologies so that vehicles use a less expensive and more environmentally friendly way to operate. These new technologies include burning fuels such as alcohol or hydrogen, or combine the use of electricity and gasoline. In some new models, the vehicle will start off using its gasoline engine and, when the driver has reached a cruising speed, the batteries power the car while the primary engine idles. This greatly reduces the use of gasoline and lessens the amount of pollution from the car. The objectives of this research will be to gauge the demand for hybrid and alternative fuel vehicles by conducting surveys of consumers and collecting data on the impact of providing such products to the market. Specifically, the research will focus on those individuals who are likely to purchase a vehicle in the next 12 months and are either concerned about the price of fuel or about the environmental impact of fossil fuel consumption; the research will seek to quantify the percentage of American consumers who are likely to respond positively to a new hybrid vehicle from GM and determine what features would be most attractive to them. Study Type. The research proposed in this study will be structured along the lines of standard exploratory methods, combining both primary and secondary research scopes. The overall aim of the research is to come to a general understanding of consumer demand for a proposed new vehicle that operates on alternative fuels and/or provides the consumer with superior performance in terms of fuel consumption. This inquiry will be combined with an investigation into the feasibility and cost of designing and producing such a product. The initial focus of the research will be primary; it will focus directly on consumer demand for the special features of the product. Further, there will be a secondary research component that will seek to use current independent research into the costs and benefits associated with providing this type of product to the American consumer. Target Population and Sample Size. The target population for this study will be American consumers who fall into three categories. First, the individuals surveyed must be likely to purchase a new vehicle within the next 12 months. This will inform the research with the opinions of actual prospective consumers and prevent the introduction of inaccurate information from those who are not within the target market. Second, the target population members will have to have more than just the intention to purchase a new vehicle. They must have a strong opinion on one of two other areas; either they are very concerned about the price of gasoline because of the increased expenses they incur OR they are concerned about the environment and the impact of fossil fuel consumption on the future of the planet. Any person who is likely to purchase a new vehicle within the next year AND is concerned about gas prices or the environment will be considered a valid member of the target population. The secondary research will focus on published academic and industry sources regarding the expenses associated with using new technologies in a production environment as well as the benefits to both consumers and the environment of GM providing such a product to the market. The sample size will need to be large enough to provide sufficient data integrity, but small enough to be feasible in terms of actual data gathering and compiling. For the purposes of this proposal, the initial research will be conducted of 2,000 individuals and at least 500 academic or industrial publications. Sample Design and Data Collection Method. The sampling and data collection process for this research will involve two levels of inquiry; direct questionnaires administered to qualified individuals by trained staff and standardized research into academic, trade, and industrial sources. In the consumer data collection phase, a short screening process will be used to determine if the interviewee is a qualified member of the target population. This will be accomplished through a simple two part question that establishes that the individual is likely to purchase a new vehicle within the next 12 months and has concerns about fuel prices or the environmental impact of fossil fuel consumption. At that point, a qualified member of the target population will be asked to participate in an interview to obtain their specific preferences regarding product features, and non-qualified individuals will be dismissed. Qualified target members will be given a coupon worth $ 500.00 toward any purchase of a new GM vehicle within the next year, and non-qualified individuals will be given a key chain as a gesture of appreciation for participating in the survey. These incentives are designed to promote participation. In addition to the primary research questionnaires, the data will be supplemented by the accumulation of published research into the costs related to producing alternative fuel vehicles, the expenses associated with implementing the new technologies into current production lines, and any quantifiable benefits associated with environmental sensitivity and consumer preferences for product features. Specific Research Instruments. The primary data will be collected through the use of trained interviewers interacting directly with members of the public. Data collection will take place in various locations like shopping malls, university campuses, and public parks. The initial screening will take place when an interviewer asks an individual to participate in the study. Upon obtaining permission, the interviewer will ask the questions previously identified. If the individual is not likely to purchase a new vehicle in the next year, or if they are not concerned about fuel prices or environmental issues, they will be thanked and released. If an individual indicates that they are likely to purchase a new vehicle within the next 12 months and are either concerned about gas prices or the environmental impact of fossil fuel consumption, they will be taken into a kiosk where they will fill out a 50 question survey related to a broad section of relevant informational points. The surveys will be tabulated and the data forwarded to the appropriate corporate officer. As for the secondary research, members of the marketing staff will be tasked to utilize internet and library sources and compile a report listing all published research relevant to those questions listed in the previous section. Potential Managerial Benefits of the Proposed Study. GM's core product is the manufacturing of automobiles. There are those customers who are concerned about the environment and want a vehicle that does not pollute the air. For these people, GM must offer a hybrid car that uses alternative fuels and/or consumes less gasoline so that it can maintain and grow its market share. This study will inform that process by providing GM with direct information on consumer demand for alternative fuel vehicles as well as an idea of the costs related to the manufacturing of such a product; it will also provide marketing resource information on the benefits of purchasing such a product. The benefits to management are considerable, given the fact that industry trends show hybrid and alternative fuel vehicles will be the next major consumer demand over the next decade. This research will inform an appropriate product development and marketing strategy for the foreseeable future. Proposed Cost and Capabilities. The cosst for this project is twofold: paying a research company to develop the surveys and conduct the interviews with the public, and any costs associated with the proposed secondary research. A national research firm will be secured, and it is anticipated that obtaining significant information from a qualified target member will cost $ 15.00 per person, inclusive of questionnaire development, interview, and data compilation. The secondary research will be conducted by employees of GM, and will not require out-of-pocket expenses. Accordingly, the anticipated expense of this research proposal will be approximately $ 30,000.00. The capabilities of the researchers will be ensured by the selection of a national firm and the monitoring of employees tasked to assist in this project. Works Cited General Motors. "Corporate Information." 2006. General Motors Corporation. 08 Sep. 2006. < http://www.gm.com/company/ corp_info/>. Hair, Joseph F., Bush, Robert P., and Ortinau, David J. Marketing Research: Within a Changing Information Environment. CITY: McGraw-Hill Publishers, YEAR. Read More