Holden Australia

1321 Words Apr 18th, 2014 6 Pages
1. Management Decision Problem
1.1 Background
Holden is an Australian company which is manufacturing and supply of cars, engines and auto parts. With the vehicle market in good times, the sales of Holden continued to drop even though it received a massive financial supplement of approximately $150 million a year from the Australian government (Coorey, 2013). Moreover, Martin (2013) states that the VF model as a new product cannot alleviate the crisis in the market and influence Holden’s decline 12.5% in 2012 (Appendix 1). In 2013, Holden manufacturing plants suddenly announced that it will cease its production line in Australia in 2017. The main reason is that Holden doesn 't have a definite understanding of the consumer preferences and
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The company can use this test to understand the clients ' psychological state. According to appendix 2, car customers ' ranking shows Holden 's score is -3%. In contrast, Japanese cars with a positive score come out top. Holden really need to understand the Australian consumer buying behavior or psychological motivations, and which marketing method is the most attractive to Australian consumer. Secondly, it can also use this test on the Ro2. The aim of RO2 is to satisfy the customer different needs, so the test can be used to identify what the customers’ real demand about the existing car or new product is. For example, quality and safety are important factors for Australia consumers buying a new car (Appendix 3). Therefore, Holden can analyze the competitive strengths and weaknesses, and then improve their products. This will improve their sale status.

5. Focus Group
The focus group is the mostly widely used in qualitative tools. A focus group discussion is to collect data through a group (8 to 10 participants) interaction and a moderator. The main objective of a focus group is to get in depth answers of consumers, and understand consumer attitudes and behavior on its products (Warren, C. A. B., & Karner, T. X., 2010). The group participants are selected carefully and discussions based on their experiences and views. In addition, researchers or clients can use one –way mirrors to observe participants’ opinions and behaviors. Moreover,

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