Post on 21-Aug-2015
Healthy TensionFiguring Out the Auto Scene Dan Dembicki, Business Development Mgr.R. L. Polk & Co.
Healthy TensionFiguring Out the Auto Scene Dan Dembicki, Business Development Mgr.R. L. Polk & Co.
© 2006 R. L. Polk & Co. All rights reserved
Television Bureau of Advertising
Annual Marketing Conference Jacob Javits Convention Center
New York, NYThursday, April 20, 2006
Television Bureau of Advertising
Annual Marketing Conference Jacob Javits Convention Center
New York, NYThursday, April 20, 2006
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FrameworkFramework
Macro Issues:Profits * Demand * Global * Technology
OEMs
Buyers(Consumers)
Dealers
Media Relevancy inPurchase Cycle & Ownership Experience
Accountability
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“60 Second Cheat Sheet”“60 Second Cheat Sheet”
Profits– Domestics: “Recovery”– Asians: “Feelin’ Fine”– Europeans: “It’s Not Necessarily Luxury Living”
U.S. New Vehicle Demand– 2005 3rd best year ever, but it doesn’t feel like it– Crowded product lineup– Used & Certified Used keeping buyers interested
Global– China, China, China…
Technology– Hybrids, E85, Fuel Cell– Telematics
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Top 10 Brand Leaders (2005 CYE, U.S.)Top 10 Brand Leaders (2005 CYE, U.S.)
2.8
2.8
3.2
3.5
6.1
6.1
9.0
13.1
13.4
13.7
0.0 3.0 6.0 9.0 12.0 15.0
Hyundai
Jeep
Chrysler
GMC
Dodge
Nissan
Honda
Toyota
Ford
Chevrolet
U.S. Market Share - New Retail Registrations
Top 10 accounts for nearly 75% of all new retail units
Chrysler & Jeep are only domestics in this list who did not lose sharefrom 2004
Hyundai - 20 years of U.S. presence starting to payoff!
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25
30
35
40
45
50
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Lo
ya
lty
Ra
te
60
65
70
75
80
85
90
AC
SI
Le
ve
l
Hyundai Make LoyaltyAuto Industry ACSIHyundai ACSI
Hyundai Customer Satisfaction & Loyalty 1996 to 2005
Hyundai Momentum
Source: R. L. Polk & Co. Manufacturer Loyalty ExceleratorTM 1996 – 2004 Model Year; The University of Michigan, ACSI 1996 – 2005.
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GM cuts $200 million from ad budgetAutomaker will concentrate on product launches (2/6/06)
Auto Company PrioritiesAuto Company Priorities
GM: More non-traditional advertising approach planned
Ford: Fewer nameplates get ad dollars,dealer bonuses & incentives– Ford Division: F-Series, Fusion, Escape, Mustang– Lincoln Division: Zephyr, Navigator– Mercury Division: Milan, Mariner
Chrysler Group:– Jeep lineup expansion– Heavy focus on
production excellence
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Auto Company PrioritiesAuto Company Priorities
Toyota & Nissan: Winning the “Heartland”– Tundra / Titan Full-size Pickup Battle with Ford / Chevy
– Toyota in NASCAR Nextel Cup with Camry
European brands: “Quiet confidence”– Audi, Jaguar, Volvo, Volkswagen struggling
– BMW continues to set U.S. sales records
Korean brands: Impatient and aggressive– Leadership changes
– Last into U.S. market and taking full advantage of it
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Auto Company PrioritiesAuto Company Priorities
Toyota, Nissan, Honda: “B-Segment”
Toyota Yaris
Honda Fit
Nissan Versa
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Must Do #1: Know Regions IntimatelyMust Do #1: Know Regions Intimately
Auto Companies want to push marketing to the regions
Regional marketing agencies are growing and dealers can choose who they want
Promote ability to deliver on minority buyers
Understand the personality of the DMAs
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Orlando: Top Growth Brands**2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004
Orlando: Top Growth Brands**2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004
Top… Brand
Changein Retail
Volume (%)
Was Growthin Orlando
Stronger than U.S.?
…Overall Brand Subaru 28.1 Yes
…GM Brand Cadillac 13.5 Yes
...Ford Brand Ford 1.8 Yes
…DCX Brand Dodge 17.4 Yes
…Asian Brand Subaru 28.1 Yes
…European Brand Mercedes-Benz 19.8 Yes
Orlando Retail Growth:
9.6%
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San Francisco: Top Growth Brands**2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004
San Francisco: Top Growth Brands**2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004
Top… Brand
Changein Retail
Volume (%)
Was Growthin San Francisco
Stronger than U.S.?
…Overall Brand HUMMER 44.5 No
…GM Brand HUMMER 44.5 No
...Ford Brand Mercury 10.5 Yes
…DCX Brand Chrysler 19.7 Yes
…Asian Brand Toyota 7.5 No
…European Brand Land Rover 35.4 Yes
San Francisco Retail Growth:
0.8%
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Must Do #2: Talk About LoyaltyMust Do #2: Talk About Loyalty
Ask if / how programming can support loyalty strategies
Note where integrated programming ties to repeat buying behavior
Take a stab at estimates on gains from growing loyalty
Make Number of Returning Owners*
Overall Make
Loyalty
Revenue from LoyalOwners ($)
Lost Revenue from Defectors
($)
Ford 1,109,796 57.4% $19.6B $14.6B
Volkswagen 120,277 30.5% $1.6B $3.6B
Toyota 547,110 52.2% $7.7B $7.1B
*Base: Vehicle Owning Households with a Retained Vehicle Acquired New Under 10 Years Old (10/03 – 9/04).R. L. Polk & Co. 2004 Model Year Manufacturer Loyalty ExceleratorTM
Assumed average MSRP of 2005 MYr. vehicles: $30,798 (Domestic), $43,303 (European), $27,079 (Asian). Average MSRPs provided by Edmunds.com
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Must Do #3: Anticipate Auto Companies’Marketing Strategy Must Do #3: Anticipate Auto Companies’Marketing Strategy
GM: “Incentive Insomnia”; Defend truck markets still
Ford: “Red, White and Bold” Be profitable in N. Am.
DCX: Product and Styling Rule; Watch Jeep efforts
Toyota: Hyundai is the new Honda to them– Price may force their positioning on some entry models
Nissan: Expect growing dependence on interactive and highly specialized, niche marketing
Hyundai: Make friends with these franchises
All: Compact car segment will draw from youthand mature buyers find growing demand