FREE ESSAY ON MINIVANS

MINIVANS

The minivan today falls roughly within the $30000 - $40000 price range. As a result, not
everyone who could benefit from this automobile can afford it. Minivans target young
families (parents between the ages of 25-34) with 2-3 children or more residing in rural
and suburban areas in which transportation needs are involved. Despite the minivan's
convenience, studies from show its target group has been decreasing and has been
forecasted to continue decreasing in the years to come. Many factors contribute to this
decreasing target group. First and foremost, the decreasing number of children per
family. Also, the price, limiting its buyers to those who attain a certain income
(studies show income earned by members of society is directly proportionate to their
level of education). An income level predominantly earned by members of the middle to
upper middle class. It has also been noted that people have been and are continuing to
migrate from the more rural areas to the cities due to higher incomes and a faster pace
of life, decreasing the amount of transportation needed to commute. More importantly,
according to Stats, the family structure is changing, and due to the increase in cost of
living, more women (between the ages of 25-34) are joining the workforce. This happens to
be the age bracket where most women have their children. Married couples with no children
are the fastest growing demographic group. Families, with children, are a shrinking
market for this product. 
More people from 5 to 32 years of age die as a result of traffic accidents than any other
cause. This leads parents to prefer the use of a vehicle that provides a reliable, safe
and secure driving experience. Families spend most of their time and money to find a
vehicle that is designed to prevent car accidents and protect passengers and drivers. A
family's primary concern is the well being and safety of their children on the road.
Therefore, consumers prefer to choose vehicles with family friendly features. In order to
satisfy the consumer's safety needs automotive companies build vehicles, with their
tastes and want in mind. Manufactures install government-specified (See Vehicle Safety
Act) lights, reflectors, brakes, tires, windows, windshield wipers, defrosters and dash
board controls to prevent accidents and install seat belts, air bags, head restraints and
bumper system to protect car occupants. These features not only satisfy government
regulations, but also please the safety conscious families of today's market. Evolution
The "nuclear" family has gone through drastic changes through the course of the last few
decades. From a single breadwinner, supporting a household of four or more children, the
family unit has graduated to double incomes with only one or two children and a higher
level of education for both the man and the women and even to same sex couples. Due to
inflation and women increasingly entering the work force this change was self-evident.
With this continuing trend families are becoming fewer and fewer. Consumers are ready to
pay more to remain style conscious. Bigger, more luxurious appeal to this market and
conform to their opinion of a worthwhile vehicle. Purchasing Power As for the purchasing
power of families, the median income has gradually increased over the course of the last
10 years. Rising along with incomes are inflation rates and single parent households.
This demonstrates the buying power of today's young families with double or single
incomes, has dropped dramatically. Even with the greater availability of credit which
increases buying power. Over the last decade and in today's unstable economy an increase
in purchasing revenues seems unlikely with the lowered buying power of today's young
families. 
A decrease in buying power demonstrates a shift in buying patterns towards more value for
each dollar spent illustrating Engel's Law. Young families are now leaning towards
smaller more cost efficient cars with longer warranties (forcing the automotive industry
to assume longer warranty liabilities) This trend is confirmed by the decrease in
revenues of the automobile industry over the last decade. 
Bibliography Internet Sites 
www.statcan.ca
www.economagic.com www.enm.maine.edu/courses/business/bua263web/lecture5html
http://theautochannel.com/content/news/press/.../press0111788.html.
www.entrepreneurmag.com http://nova.umuc.edu www.car.org/legislation/ www.caa.ca
www.tc.gc.ca (motor vehicle safety act)
www.cwrl.utexas.edu/~daniel/hyperwriting/arguments/incalacaterra/edu.html/ 
Bibliography
Books 
Sens, Allen, and Peter Stoett. Global Politics: Origins, Currents, Directions.
Scarborough: International Thompson Publishing Nelson, 1998. 
The Public Pulse, March 1998 
Standard & Poor's Industry Survey , The McGraw-Hill Companies, December 1998. 
Kotler, Armstrong, Cunningham, Principle 's of Marketing, Fourth Canadian Edition
Prenticehall Canada 1999, Scarbourough Ontario 
Monroe, The Automobile: Problem of Safety, World Book Multi media Encyclopedia , Chicago
1999