Understanding SUV Segment

Objective

Mercedes Benz Middle East wanted to understand the SUV segment in KSA and UAE to be able to develop a business plan to increase sales of its Mid-Large SUV portfolio ( GLC, GLE, GLS).

Methodology

The research was conducted using Qualitative and Quantitative methodologies targeting owners and potential owners in UAE and KSA

Qualitative

Eight Focus groups (4 in UAE & 4 in KSA)

Quantitative

1000 F2F interviews (500 in UAE & 500 in KSA)

Results

  • Understood consumers’ perception on SUV in KSA & UAE
  • Analyzed the reasons for buying SUVs
  • Determined the usage occasion and profile of SUVs owners
  • Understood the must have & good to have in the SUVs
  • Gauged the level of awareness of the Mercedes Benz SUV range
  • Analyzed consumers perception on the Mercedes Benz SUV range
  • Mapped Mercedes key attributes vis-a-vis competition in the market
  • Estimated the acceptable price ranges of each SUV model
  • Determined the potential target segment for the Mercedes Benz SUV (GLC, GLE, GLS)

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Conjoint Modeling

In addition to the analytical reports that we delivered with recommendations, we developed a conjoint modeling (choice modeling) and a simulation tool for the client to use by themselves.

The purpose of this analysis is to find the important attributes of SUVs that affect customers’ choice and the amount they are willing to pay, using conjoint analysis as an analytical tool. Consumers tend to pay for a car by evaluating the essential attributes as a whole, rather than independently, and thus conjoint analysis was instrumental in this context as a result of decomposing such overall evaluations into their individual components.

The simulation tool that was delivered to client allows them to select the best bundle by total respondents or specific demographic group for each SUV model in KSA and UAE.