Market Research: Holden Commodore Online Launch

This report highlights the basic research concerns that face market researchers. Particularly it uses the case of Holden’s launching an online store for its new Commodore in Australia. Based on the alternatives target markets that are present in Australia, the research on the new Commodore can target the fleets that exist in major metropolitans in the country. However, to narrow down the study population, the research should only focus on car owners.

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Market Research: Holden Commodore Online Launch
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Table of Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................3
Target Market Alternatives for the New Commodore.....................................................................3
Alternative Ways of Defining Population of Study.........................................................................4
Defining a Sampling Frame.............................................................................................................6
Sampling Approaches......................................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Executive Summary
This report highlights the basic research concerns that face market researchers. Particularly it
uses the case of Holden’s launching an online store for its new Commodore in Australia. Based
on the alternatives target markets that are present in Australia, the research on the new
Commodore can target the fleets that exist in major metropolitans in the country. However, to
narrow down the study population, the research should only focus on car owners. Furthermore, it
is recommended that the sampling frame is reduced to only those visiting the online store and
from Australia. The selection of the participants to the study is recommended to follow a simple
random sampling approach so that the data obtained will be normally distributed.
Introduction
Holden is an automotive company that is based in Australia and founded by John
Alexander Holden 162 years ago. The developments and evolution in that automotive industry,
competition has taken a new approach to include online selling and trade-ins. Companies are
trying their best to undertake accurate and reliable market research to allow them to obtain a
competitive advantage over others. However, the approaches of involves in defining their target
market, sampling frame and sampling approach determine the validity and reliability of the
research findings. This report highlights the different target markets, the population of interest,
sampling frame and approach that Holden can use to base their market research for the new
Commodore.
Target Market Alternatives for the New Commodore
Understanding the target market is the first step towards a successful launching of a new
product. With the right target, sales are bound to kick-start immediately after or even have pre-
bookings before the actual lunch (Kahn et al. 2013). For Holden, there several markets segments

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they can target. First, the company can target fleets existing in Australia so that they can supply
them with their new Commodore. The fleets may include taxis, company vehicles or car rental
service companies. Second, new Commodore can be targeted to families. Essentially, cars for
personal use are more on the roads that the public service ones. Therefore, this would prove to be
a viable and potential target market segment for Holden’s new launch.
Third, the new Commodore can be targeted on existing car owners. This group of
consumers can be potential trade-in customers for the company’s new model. Furthermore, it
provides convenience for an upgrade for such car users. However, these three alternative
markets will largely depend on the whether the majority would prefer buying their cars online as
the approach used by Holden. Ideally, the integration of new technology when marketing and
selling new products can be a significant success factor (Linton 2012). In the same manner, new
Commodore being sold and traded-in online can be a success factor for the product.
From the three target markets, the new Commodore should focus on fleets since they
provide the most potential market in Australia. This target market has a large demand for
passenger vehicles, especially in metropolitan cities. Although families also have a substantial
demand for vehicles, they can be mostly involved trade-ins instead. Therefore, Holden’s new
Commodore should target the fleet market as they provide a large pool of consumers who can
order vehicles in bulk or have a consistent trade-in plan for their older cars.
Alternative Ways of Defining Population of Study
Targeting the right population may be challenging in any marketing research. This is due
to the changing consumption behaviors of consumers in almost all industries especially in the
automotive industry (Peters, Gutscher & Scholz 2011). When defining the population to be used

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to study the target market for the new Commodore, Holden can use three approaches. First, the
population can be defined by using an inclusion and exclusion criteria. By considering the fleets
existing in Australia, the company can use it as a basis to include or exclude their targets. For
instance, the population can include all passenger vehicles, taxis, and rental cars and exclude
company car fleets.
Second, defining the target population on be based on a pilot study (Omair 2015). Under
this approach, the Holden can base the definition of the population for the research study on their
pilot project in metro Melbourne online store. This would give a clear perspective of the right
and potential target markets for the new Commodore. Furthermore, a pilot study will narrow
down the fleet segment in the automotive industry to manageable categories. Consequently, it
will be possible for new Commodore market research to target the right population and further
ensure a successful launching of their online stores across Australia. Lastly, the population for
the study can be defined as anybody owning a car in Australia. Such a consideration would give
the study a substantial sample to base their marketing conclusion from. Additionally, considering
the general population in a study gives the findings a perfect reflection of the actual state in the
market (Decker, Kipping & Wadhwani 2015).
Based on the three approaches to defining the population for a study, Holden should
define their new Commodore population as the entire owners of cars. Since as much information
as possible is needed to aid the online launch, using all car owners including the general
population who can be potential consumers is advisable. The target markets for the online stores
will, therefore, be obtained from the research finding thus allowing new Commodore to be
targeted to the most potential population.

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Defining a Sampling Frame
The representatives of any target group need to be known before the commencement of
any research. Furthermore, it is an element that determines the sampling approach to be used to
recruit the participants of the study (Kim & Li 2013). Based on this premise, Holden’s market
research on new Commodore can take two approaches to define the sample frame. First, the
sample frame could be defined as all the consumers visiting the online store and based in
Australia. Although there might be other visitors to the online store from other countries, the
sample frame, in this case, would only include those accessing the store from Australia.
The second alternative is considering all households living within Australia to define the
sampling frame of the research. Under this approach, the sample for the study will include
anyone within Australia whether with a car or not. However, this sample frame is too large to
sieve through. Therefore, the households considered should be based on only a specific area for
instance Melbourne. This step of redesigning and reducing the frame makes the research more
focused on a specific population of interest (Omair 2015).
From the two definitions of the sample frame for the research, it is advisable that Holden
uses the online store visitors to define their frame. This is based on the fact that the launch is
purely designed to initiate online sales and trade-ins. Therefore, the store will only be accessible
to those who are able to visit the site. Furthermore, there are chances that those visiting the
online store will be potential buyers or trade-in customers.
Sampling Approaches
When describing the sampling approach of a research, either random, stratified or
systematic samples are used. In new Commodore research Holden can use any of these types of

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samples to define their sampling approach. With stratified sampling, the sample frame is divided
into groups with the same characteristics and a subsample selected from it. For instance, the fleet
sample frame can be divided into groups such as taxi, company vehicles, and rental car dealers as
strata from which the subsamples will be obtained. As for systematic sampling, the sample frame
is arranged in a certain order and systemic selection criteria formed. For instance, Holden can
decide to include the first, fifth, tenth, fifteenth etc. person who visits their online store. Such a
system is considered random but with unequal chances of each population subject being able to
be included in the study (Robinson, 2013).
Random sampling in this context will involve selecting any of the people in the sample
frame to be included in the research study for new Commodore. Under this approach of defining
the sampling procedure for the study, all subjects have the same chance of being part of the study
(Gneezy 2017). Since this is a marketing research, even those who are not potential buyers of
Commodore may be included in the study. However, this will not yield any problems in the
study but rather normalize the results of the study.
Since everyone within the sample frame is potentially a customer of the new
Commodore, it is recommended that the sampling approached to be used be defined a simple
random sampling technique. This approach will guarantee market research study a normally
distributed data that will be a better reflection of the entire target population. Furthermore, since
the product is launched in an online store, random sampling will be the most appropriate to select
the samples to include in the research study.

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Conclusion
As Holden prepares to launch its online store and pilot it in metro Melbourne, there
should be a defined target population, sample frame and sampling approach in place. These three
elements are essential in ensuring research on their new Commodore is pointed on the right
market segment thus providing the needed information. In particular, identifying the target
population would be the first step towards achieving the primary market for the Commodore.
Nonetheless, the company’s vision of providing exceptional customer experience and
satisfaction can allow the new launch to pick with more ease.

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References
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Kim, D & Li, X 2013, ‘Introduction to the special issue on advancing research methods in
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Linton, I 2012, Taking technology to the market. 1st edn. Farnham: Ashgate Publishing Ltd.
Omair, A 2015, ‘Selecting the appropriate study design for your research: Descriptive study
designs’, Journal of Health Specialties, vol. 3, no. 3, p.153.
Peters, A, Gutscher, H & Scholz, R 2011, ‘Psychological determinants of fuel consumption of
purchased new cars’, Transportation Research Part F: Traffic Psychology and Behaviour, vol.
14, no. 3, pp.229-239.
Robinson, O 2013, ‘Sampling in Interview-Based Qualitative Research: A Theoretical and
Practical Guide’, Qualitative Research in Social Sciences, vol. 11, no. 1, pp.25-41.