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Dissertation Proposal On Growth Of Hypercars

Dissertation Proposal On Growth Of Hypercars

Dissertation Proposal On Growth Of Hypercars

Chapter 1: Introduction

At one point of time, the automotive industry was far simpler with only few segments of automobiles launched in the market. Coupes, hatchbacks, saloons, sports, estates and off-roaders were the only few automobile segments during that time. But times have really changed since then, haven’t they?  From a family station wagon to high-end Super cars, the automotive industry has constantly been revolutionising its technology over time and is seeing a huge growth compared to the other industries.

Indeed, there is no end to innovation. The year 2013 marked the drastic change wherein a new segment termed Hyper cars took the market by storm and have now become the pinnacle of the automotive industry. Ferrari, Lamborghini, McLaren, etc. are continuously investing thousands of dollars in R&D to launch various Hyper cars in the market. In 2016, nearly seven different Hyper cars were launched, each, not less than a million dollars (Supercar World, n.d). In addition, due to their strong brand values and reputed racing genes, these automotive giants have taken over a large part of the market share in the automotive industry globally, with, Bentley covering the highest at 37% of the market share, followed by Ferrari capturing 24% and Lamborghini standing third at 11% in the same year(Munoz, 2017).

Here’s a question; with a highly competitive ultra-luxurious niche market such as this, do small Hyper car manufacturers stand a chance? W Motors, Rimac Automobili and Koenigsegg still cover a very small part of the market share in spite of introducing many rare, tailor-made,high performance Hyper cars such as Lykan HyperSport, Rimac Concept: One, Koenigsegg Regera, etc. to stand out in the market (McCarthy, 2017).

To add to it, since there are so many companies entering this market and launching various Hyper cars, potential consumers have now become indifferent while purchasing a Hyper car. In other words, it has become prerequisite for automotive manufacturers to adopt unique and highly appealing promotional strategies in order to capture the audience’s attention. One way to do this is by investing in digital marketing platforms such as social media, emails, search engine optimization, etc. As a result, not only has the technology come a long way, but also the techniques used to advertise these Hyper cars to their potential customers have evolved, establishing new promotional techniques in the era of highly advanced Hyper cars market (McCarthy, 2017).

To sum it up, the main reason for the selection of this topic is to analyse whether Porter’s Generic Competitive strategy will help these small Hyper car manufacturers compete and differentiate among themselves in this growing automotive segment. Moreover, what impact will the Segmentation, Targeting, and Positioning Model and the 4 Ps of Marketing Mix Model have on the sales of these small Hyper car manufacturers? This is the underlying conundrum that will be aimed to resolve in this research paper. 

1.1 Research Questions

1.1.1 Primary Research Questions

How is Small Businesses in the automotive industry working their way in comparison to Renowned Businesses in relation to their marketing industry?

  • How will Porter’s Generic Competitive strategy assist small Hyper car manufacturers to compete against the renowned automotive giants?
  • What advantage will the small Hyper car manufacturers achieve when they use the Resource-Based View framework to differentiate themselves from each other?
  • What impact will the STP Model have on the sales of the small Hyper car manufacturers?
  • What benefits will the small Hyper car manufacturers accomplish while using the 4 Ps of Marketing Mix model?

1.1.2 Secondary Research Questions

  • What is the difference between Super cars and Hyper cars?

  • Which marketing strategies can prevent flipping of cars?  

  • What is the differences between the small businesses and the renowned businesses in the Hyper-car market

1.2 Objectives

The proposed study will look at the ways in which marketing strategies are carried out by small businesses in niche product segment like the Hyper-car market and will also set the benchmark for the difference between Hyper-car and Supercar. This research will help to understand, if small businesses in niche markets such as the Hyper-car market in the automotive industry stand a chance against renowned manufacturers. It will further help:

  • To explore how Porter’s Generic Competitive strategy will assist small Hyper car manufacturers to compete against the renowned automotive giants.
  • To discover the advantages that the small Hyper car manufacturers will achieve when they use the Resource-Based View framework to differentiate themselves from each other.
  • To understand the impact that the STP Model will have on the sales of the small Hyper car manufacturers.
  • To analyse the benefits that the small Hyper car manufacturers will accomplish while using the 4 Ps of Marketing Mix model.

Under this broader umbrella, the study aims to meet the following objectives:

1.3 Target Audience

  • Car enthusiasts

  • Start-up and small companies in the exclusive car industry.

  • Small companies in the luxury automotive industry.

  • Small business entrepreneurs.

1.4 Scope and Limitations

1.4.1 Scope

The dissertation aims at addressing specific challenges or pre-conceptions that renowned manufacturers can overthrow a small business. The digital transformation and networking has built by small businesses is far more advanced as compared to already developed manufacturers and this motivates the small businesses to use all their sources to produce the best products compared to the developed manufacturers. The semi-structured interviews with the small businesses will help understand the challenges faced in relation to the niche market and how they overcome their problems in comparison to their competitors. Through careful analysis we will be able to gain valuable insights into why the adoption of certain marketing strategies have been taken into consideration in relation to the industry and its exclusive customers. 

1.4.2 Limitations

Limited peer content available on Hyper-car industry and its advertising strategies. Semi-structured interviews with marketing practitioners in the automotive industry was a challenge considering their busy work schedule and with constant launches in the automotive calendar. Travelling to the locations was not a financial option for most of the companies apart from Rimac Automobili in Croatia. The industrial data collection has taken into consideration a few influencers in the automotive industry who have different lifestyles and opinions of multiple influencers was not able to be conducted with their working schedule. This approach would have helped to understand the consumer pattern of what products they desire within the niche market.








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