Research is all about bringing together facts to help answer crucial questions. In the case of the auto retail industry, research typically means ‘market research’. It’s about the market background, customers, the supply structure, the market size and trends, and so on.

Studies like this are often called ‘market sizing reports’ and they are principally used to inform business decisions frequently involving huge sums of money.

Assembling the data and facts for a market research report can be done in a number of ways; indeed several methods and sources might be utilised in a single report. Desk research is a popular way of gathering information, and the UK is extremely fortunate to have one of the world’s best sources – the Office of National Statistics. Its website is a mine of information and it is, for the most part, absolutely free of charge.

Data about the sales of new and used cars at the highest level are available free of charge from the SMMT and published in magazines such as Auto Retail Bulletin. Of course, if you want to know how many new and used cars were sold in your postcode area, you will have to pay for the information.

But desk research is limited. If someone or some organisation hasn’t already investigated what you want to know, then you have no choice but to consult the ‘horse’s mouth’. You have to carry out primary research – a survey.

For instance, a dealership can (and should) carry out a regular survey of used car selling prices in their area and I showed delegates at this year’s Auto Retail Network used car workshop how to do this. Quite simply, you list selling prices from your local newspapers. Similarly you can assess the ages of used cars on sale.

More complex requirements usually involve talking to people, lots of people. Our Castrol Trend Tracker 2011 report on the market for servicing and repairs, for example, is based on interviewing 15,725 motorists over a period of 16 months. Because this type of study is very expensive, the whole exercise was planned and organised right down to the last detail.

The same rigorous approach is required for business (B2B) surveys. There is a range of options for B2B – telephone interviews, postal, fax, and internet. While we have used all four, sometimes on the same project, telephone interviews are the most reliable and many readers will have taken part.

So that’s how you end up with lots of numbers. Interpreting the results is the final important step: what do the numbers mean and what should you do because of them? Analysis can be difficult but a good survey helps the process.

Written by Trend Tracker director Chris Oakham, this piece first appeared his column in the subscription monthly Auto Retail Bulletin in September 2011.(See auto-retail.co.uk for subscription details.)

Chris Oakham

Trend Tracker Limited

0870 421 4350

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