New Zealand - Tyres - consumer and retailer views
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Transcript of New Zealand - Tyres - consumer and retailer views
Research methodology
Consumer awareness, attitudes and behaviours:
─ Four focus groups (two in Auckland and two in Wellington) with recent tyre purchasers, May 2013. Two groups were with low-to-middle income and two were with high-income participants, and were a mix of ages and gender.
─ Four questions were asked in the Consumer Omnibus to get an indication of the size and value of the New Zealand tyre market. The sample was nationally representative. The survey was conducted in May 2013, there were 1,037 respondents.
─ A consumer online survey with 300 recent tyre purchasers using the Research Now panel was conducted in June 2013. The consumer online survey was weighted back to the Consumer Omnibus data for tyre purchasers and has a margin of error of 5.7%.
Retailer attitudes and behaviour:
─ 100 computer-aided telephone interviewing (CATI) with tyre retailers sourced through the Yellow Pages, in May and June 2013.
2
Almost 1 in 2 New Zealand adults have bought tyres in the past year for themselves or someone else
Base: Total May 2013 poll sample (n=1,037)
T1. Which of the following best describes you?
47%
53%
I have not bought tyres in
the past 12 months
I have bought tyres in the past
12 months
4
Sales in 2012: for comparison… LV tyres: ~ 3 million Light bulbs: ~ 11 million
For the majority of people (70%) it’s a ‘distress’ purchase
5
Q17. Which of the following prompted you to purchase your tyres? 58%
35%
27% 25%
16%
6% 4% 1% 1% 0%
20%
40%
60%
80%
100%
Recommendedby / failed WOF
Recommendedas part of the
WOF test
Failed the WOFtest
I felt I neededto replace them
It wasrecommended
at service /repairs
I just decided Iwanted to
replace them
Puncture /blow out /damaged
Replace onregular basis
Others
30%
70%
Active Buyers - replaced their tyres without beingrecommended or instructed to (n=90)
Passive Buyers - replaced their tyres because theywere recommended to or they failed WOF (n=210)
Base: All respondents (n=300)
Almost half of consumers don’t remember which brand of tyre they bought
6 Base: May 2013 poll sample, tyre buyers (n=494)
12%
11%
4%
4%
3%
3%
3%
14%
46%
Bridgestone
Firestone
Dunlop
Goodyear
Kumho
Hankook
GT Radial
Other brand*
Don’t know
T3. And what brand did you purchase?
Brand purchased
1%
18%
29%
16% 13% 14% 8%
0%
10%
20%
30%
Up to $50 $51 to $100 $101 to $150 $151 to $200 $201 to $250 $250 or more Don’t know
T4. And finally approximately how much did each tyre cost you?
Those buying more expensive tyres ($250+) are significantly more likely to know which
brand they bought (68% vs. 54%)
Cost
Irrespective of buyer type, consumers claim a high level of information gathering prior to purchase – although the sources for information differ
7
40%
22% 25%
12% 18%
7% 7% 7% 6% 2% 1% 9%
27%
38% 25% 16% 13% 12% 5% 4% 4% 2% 1% 0% 3% 30%
37% 26%
12% 13% 10% 4% 3% 3% 0% 1% 0% 1%
31%
0%
20%
40%
60%
80%
100%Active buyers (n=90) Total (n=300) Passive buyers (n=210)
Q18. Prior to buying those tyres, did you seek any information from the following sources?
30%
70%
I didn’t seek any information (n=90)
I sought outinformation (n=210)
Base: All respondents and by sub-group as indicated
4%
5%
6%
9%
18%
4%
3%
5%
6%
13%
13%
16%
28%
11%
11%
13%
13%
21%
27%
34%
34%
41%
41%
34%
61%
51%
53%
42%
55%
53%
44%
37%
31%
27%
15%
26%
36%
30%
41%
19%
13%
12%
11%
8%
7%
6%
0% 20% 40% 60% 80% 100%
Durability of the tyre
Safety factors
Road handling
The price
Fuel efficiency
Recommendation by a mechanic or retailer
Type of tyre, e.g. performance, directional
Noise reduction
Have used the tyre before
The brand
The look of the tyres
1 Extremely unimportant 2 Unimportant 3 Neither unimportant nor important 4 Important 5 Extremely important
Durability, safety, road handling and price are the tier-one factors that people consider when buying a tyre – fuel efficiency is a second-tier consideration
9
Q22. If you were buying tyres for your vehicle tomorrow, how important would each of the following factors be to you when deciding which tyres to buy?
Total important
Mean
87% 4.1
86% 4.2
83% 4.1
82% 4.2
74% 3.9
66% 3.7
56% 3.5
48% 3.4
40% 3.2
34% 3.1
21% 2.6
Base: All respondents (n=300)
This is low relative to retailers’
perceptions (87%)
3.1
4.5
4.9
6.1
6.5
12.0
12.7
11.7
14.4
18.7
23.6
3.7
5.3
5.4
6.2
6.5
11.8
11.8
12.2
14.0
18.5
23.4
5.2
7.0
6.6
6.4
6.6
11.4
9.6
13.3
13.2
17.9
22.8
The look of the tyres
The brand
Have used the tyre before
Noise reduction
Type of tyre, e.g. performance, directional
Fuel efficiency
A mechanic, retailer or other expert’s recommendation
Durability of the tyre
Road handling
Safety factors
The price
Below shows the average number of points given per item
Active buyers (n=90)
Total (n=300)
Passive buyers (n=210)
Comparatively, price is the most important factor, followed by safety and road handling; fuel efficiency has only half the weight of price
10
Q22b. Please allocate a total of 100 points across the list below in terms of what you think are the most important factors to you.
Base: All respondents (n=300)
But a brand may be associated with other higher ranked factors such as safety, road handling
12
Yes, 35%
No, 65%
Q23. Have you heard about, or know of, fuel-efficient tyres (sometimes called low-rolling resistance tyres)?
Yes, 27%
No, 73%
Yes, 24%
No, 76%
Active buyers (n=90) Total (n=300) Passive buyers (n=210)
With only around a quarter of people being aware of fuel-efficient tyres (FETs), there is some work needed to improve awareness
Base: All respondents and by sub-group as indicated
26% 21% 17%
10% 16% 20%
52% 46% 42%
12% 17% 21%
0%
20%
40%
60%
80%
100%
Active buyers (n=31) Total (n=82) Passive buyers (n=51)
Can't remember
Not offered
Offered, not bought
Offered and bought
Prompting of FETs by tyre resellers is low, but where this did occur, active buyers had a higher conversion than passive buyers
13
Q25. Thinking back to the last time you bought tyres, did the tyre specialist / retailer discuss or offer fuel-efficient tyres as an option?
Of those offered FET, 72% were converted to purchase
Of those offered FET, 46% were converted to purchase
5%
6%
9%
4%
24%
22%
25%
53%
49%
55%
15%
15%
15%
0% 20% 40% 60% 80% 100%
Total (n=300)
Active buyers (n=90)
Passive buyers (n=210)
Extremely unlikely to consider Unlikely to consider
Neither unlikely nor likely to consider Likely to consider
Extremely likely to consider
After being presented with the FET concept, people reported high levels of purchase consideration, particularly passive buyers
14
Q28. … Thinking about the description below, how likely are you to consider buying fuel-efficient tyres the next time you need tyres?
Would consider
Mean
68% 3.7
64% 3.6
70% 3.8
New fuel-efficient tyres use modern design, construction and materials to improve fuel efficiency by minimising the amount of energy needed to push tyre the along the road, without compromising safety and performance.
Using fuel-efficient tyres can improve your vehicle’s fuel efficiency by 3% on average. Over a year this would equate to around $70 worth of savings for a typical New Zealand motorist, or around $200 over the life of the tyres.
Base: All respondents and by sub-group as indicated
44%
10% 7%
0% 3%
12%
0% 3% 3%
0%
6% 3% 3% 3%
13%
49%
9% 7% 6% 5% 5% 4% 4% 3% 3% 3% 2% 1%
7% 10%
52%
9% 7%
9% 6%
1%
7% 5%
3% 5%
1% 2% 0%
10% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100% Active buyers (n=32) Total (n=95) Passive buyers (n=63)
For those who rejected the concept, the potential price of FETs was the main concern
15
Q29. What stops you from considering fuel-efficient tyres?
“I'm guessing they are quite a bit more expensive than regular tyres and so
cancelling out any savings.”
Base: All respondents and by sub-group as indicated
“Age of car and small distances I
now travel.”
“They most probably won't suit my type of car, they will be aimed at 4 cylinder family
cars not performance cars.”
Price is the biggest single piece of information that people would like to know more about
16
28%
18%
10% 10%
0%
8% 8% 6% 6% 5%
0% 0% 2%
22%
31%
15% 11%
9% 8% 6% 5% 4% 3% 3% 3% 3% 3%
22%
33%
14% 12%
8% 11%
6% 3% 4% 3% 3% 4% 4% 3%
23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Active buyers (n=38) Total (n=148) Passive buyers (n=110)
Q31. What additional information, if any, would you like about fuel-efficient tyres?
“Information to show how they compare with normal everyday
tyres.”
“Does the fuel efficiency influence safety and road holding, and by how much?”
“The saving from the efficiency has to be compared to the initial cost.”
“Type, price, suitable to which cars, brands, where to [buy] cheaper from, etc.”
“Would need safe tyres.”
Base: All respondents and by sub-group as indicated
17
People may assume that just because you can buy them, they are all equally good…
2011 AutoBild - 50 Sommerreifen im Test 205-55-R16
3%
6%
6%
6%
7%
7%
7%
16%
20%
18%
23%
33%
29%
23%
28%
38%
37%
39%
28%
4%
4%
8%
8%
0% 20% 40% 60% 80% 100%
Efficiency and safety labellingon tyres similar to the energy
rating label
Information on minimumstandards for safety and
efficiency of tyres
An online comparison tool
Information from anindependent organisation or
government agency
Not useful at all Not useful Neither useful nor useful
Useful Extremely useful Don't know
What support is there for better information…
18
Q16. Thinking about what you would find useful when next buying tyres, please rate the following on how useful you think each one would be.
Total useful
Mean
71% 4.0
66% 3.9
62% 3.9
56% 3.7
Base: All respondents (n=300)
Only 4 out of 10 check their tyres once a month, with the primary site of pressure checking being the petrol station
21
38%
37%
13%
6% 6%
In the past month
1 to 3 months ago
4 to 6 months ago
More than 6 months ago
Never
Q13. When was the last time you checked your tyre pressure?
79%
9%
9% 3%
Petrol station Home Tyre retailer Other
Q14. Where do you normally check your tyre pressure?
Base: Q13 - all respondents (n=300); Q14 - respondents who have checked their tyre pressure (n=281)
Men tend to
“forget”
“can’t be bothered”
Women tend to
“not to know what they pressure should be”
“not know how to check pressure”
“leave it to their partner”
AA survey from 2011 looked at the reasons why some people don’t check their tyre pressure
22
Male 25-44 Female 25-44
Male 45-64 Female 45-64
Over half of people don’t know their tyre pressure and some people do not know how to check and adjust their tyre pressure
23
Q10. Do you know what your tyre pressure should be?
43% 57%
No
Yes
Base: All respondents (n=300)
20%
80%
No
Yes
Q11. And do you know how to check and adjust tyre pressure for your tyres?
Base: All respondents (n=300)
72% of males knew their tyre pressure, compared to 44% of women
Who are the retailers we surveyed?
59%
35%
5% 0% 1% 0%
20%
40%
60%
80%
100%
Independentlyowned
Part of a franchise Corporate /company
ownership
Company owned Others
49%
20% 11% 6% 6% 3% 3% 3%
0%
20%
40%
60%
80%
100%
Bridgestone(all)
Beaurepaires Firestone Carters Tyres Other DiscountTyres
GoodyearAuto Service
Centre
Mag & Turbo
Q2. Is your business ...
Q2b. Which franchise is your business part of?
Base: Franchise retailers (n=35)
Base: Total retailers (n=100)
*NB: Tony’s Tyre Centre has a company policy of not participating in surveys 25
16% 31%
43%
3%
8%
Independent retailer
WOF / servicing / mechanic
Franchise / corporate retailer
Other
Don’t know
Where do consumer buy tyres
Retailer survey did not capture this part of the market
Mid-range and budget tyres make up most of the market
34%
36%
34%
43%
30%
42%
43%
41%
37%
46%
19%
18%
21%
17%
21%
5%
3%
5%
4%
4%
Total (n=100)
Independents (n=59)
Franchises (n=35)
Personal (n=34)
Personal & business(n=57)
Budget range Mid-range Performance range Other types
Q8. Thinking about your customers, does your business service mostly personal vehicles, business fleets or both equally?
Q7. And approximately what proportion of your light vehicle tyre sales volume, out of 100%, do each of the following categories make up?
By customer type
By retailer type
*NB: small base size (n<30) Base: Total retailers (n=100) 26
2%
4%
3%
4%
6%
15%
26%
3%
3%
5%
3%
6%
7%
13%
11%
11%
13%
14%
23%
28%
12%
17%
21%
19%
29%
25%
26%
32%
41%
38%
38%
41%
36%
35%
51%
33%
23%
30%
43%
42%
40%
31%
36%
33%
36%
30%
16%
3%
36%
46%
53%
45%
24%
25%
26%
20%
12%
15%
9%
9%
10%
8%
0% 20% 40% 60% 80% 100%
Retailer recommendation
Price
Safety
Suitability for vehicle
Durability
Deals / special offers
Road handling
Noise
Have used the tyre before
Type of tyre
Brand
Personal recommendation
Fuel efficiency
Look of tyres
Extremely unimportant Unimportant Neither unimportant nor important Important Extremely important
Retailers don’t think consumers value fuel efficiency…
27
Q9. Now thinking about what is important to your customers when buying tyres. Please could you rate each of the following factors?
Total important
87%
79%
76%
75%
67%
67%
66%
51%
48%
48%
45%
39%
26%
11%
Base: Total retailers (n=100) Low relative to consumers’ priorities 74% important
Many franchises are currently stocking LRR tyres
11%
24%
63%
2% Not aware of them
Aware and plan to sell in future
Aware and don’t intend to sell in future
Currently stocking
80% - franchises & 51% - independents
14% - franchises & 31% - independents
6% - franchises & 15% - independents
Q11. …Which of the following best describes your business’ awareness of these new types of [fuel-efficient] tyres?
Base: Total retailers (n=100), independent retailers (n=59), franchisee retailers (n=35) 29
16%
16%
13%
11%
11%
10%
10%
8%
8%
6%
5%
5%
5%
5%
3%
Customer demand / request
Had to / told to / company policy
Research / results / personalexperience
Natural progression / way market hasgone
Dealer / franchise and part of productrange
Benefits - fuel saving, wear and tear
Quality / good tyre
Enviromental impact / eco-friendly
Brand brought out new tyres
Our company makes them
Availability / supply
Good selling point / easy to sell
Something new to try
Best for the customer
Cost / price
There are a number of reasons for selling LRRTs, with franchises being most strongly influenced by company policy
Q15. And what made you decide to start selling fuel-efficient tyres? (Base: Retailers who sell fuel-efficient tyres)
20%
0%
13%
13%
13%
7%
10%
3%
10%
0%
7%
0%
7%
3%
3%
14%
29%
11%
11%
11%
14%
11%
11%
7%
7%
0%
11%
4%
7%
4%
Base: Retailers who sell fuel-efficient tyres
*NB: small base size (n<30)
Franchises (n=28*) Total (n=63) Independents (n=30)
30
63% of all tyre
retailers sell LRRTs
51% of independents
sell LRRTs
80% of franchises sell LRRTs
Retailers claim consumer demand is a key motivator to start stocking LRR tyres
65%
38%
38%
35%
30%
27%
22%
19%
5%
5%
3%
Customers start asking for themregularly
There is stronger proof ofbenefits than currently available
One of your suppliers offers anincentive to start selling them
There is industry wide supportfor them
They add something new ordifferent to your product range
Regulatory influence such asminimum standards or labelling
They provide better profitmargins than conventional tyres
A local competitor starts sellingthem
Not convinced to sell them
Others
Don’t know
Q16. Which of the following would prompt your business to start selling fuel-efficient tyres?
Base: Retailers who currently don’t sell fuel-efficient tyres
Total (n=37)
31
37% of all tyre retailers don’t currently sell
LRRTs
18
5
5
2
2
4
There is no demand fromcustomers for them
We are not sure what thebenefits of choosing these
tyres are
They have a lower profitmargin
We have safety concernsabout these tyres
Cost / price
Others
Total (n=24*)
*NB: small base size (n<30), reported in raw numbers
24% of all tyre
retailers don’t plan
to sell LRRTs
Q12. For which of the following reasons, if any, are you not planning to stock fuel-efficient tyres in the near future?
Further information is needed to drive demand for LRR tyres
Q17. And now thinking fuel-efficient tyres in general, please tell me to what extent you agree or disagree with each of the following statements?
Agree
76%
75%
77%
…People need further education and information to start asking for or buying fuel-efficient tyres
3%
3%
3%
6%
7%
3%
15%
15%
17%
39%
37%
43%
37%
37%
34%
0% 20% 40% 60% 80% 100%
Total (n=100)
Independents (n=59)
Franchises (n=35)
Completely disagree Disagree Neither agree nor disagree Agree Completely agree
Base: Total retailers (n=100)
So what’s the market share of fuel efficient tyres?
33
27% of consumers have heard about
LRR tyres
37% of those consumers have
been offered LRR at their last purchase
57% of those consumers who were
offered LRR also bought LRR
Indicative sales market share for light
vehicle LRR tyres = 6%
Context: about 47% of tyre outlets (franchise,
independents, other) already stock LRR
% in blue boxes based on tyre research findings
2.85 million light vehicle tyres
sold/imported per year
LRR 170,000