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Winston-Salem State University                                 1
Miranda R. DaltonJonnetta PembertonDeWayne HallAdvisor: Dr. Suresh Gopalan                               2
Analysis of the African American           Consumer: Profile and Emerging TrendsChrysler Brands and African   American Con...
Build a stronger brand imagewith African Americans   Increase sales   Gain market share                         4
5
African Americans comprise 13.5%      of the U.S population                                   • Estimated Total Population...
100 >                                      1.90%                         75 - <100                                        ...
10%      18%                                       18%                            7 million African Americans             ...
$57.8 B                        77.8 B                               $          $41.8B                   $32.9 B           ...
In 2008:• African American consumers had a   total earned income of $803 billion• If African Americans were a  separate na...
Affluent African Americans• Income: $75,000 and above• Considerable amount of disposable income and material  possessions•...
African Americans Represent :                                 2012                  2008           $1.1 trillion          ...
Make 85% of brand     Increasingpurchasing      income decisions               Purchase   Less       58% of allcomparative...
• Acknowledging• Understanding• Catering                  14
African Americans are twice as likely to trustblack media than mainstream sources.             Ads are well received when ...
AM/FM Radio                        18%                                                      TV                            ...
Classy                                36% Powerful                                 35%     Cute                     23% En...
Lincoln   Nissan        Cadillac9.83%     9.54%         9.44%Kia       Mitsubishi    Chrysler9.36%     9.29%         8.59%...
1 in 4 Affluent                                                      African Americans                                    ...
Stretched Black          Black is Better Sick and Stressed      Straddlers                 11%        8%                  ...
Black consumers trustHeterogeneous market                               black media                               Highly c...
Overall Perceptions of Chrysler Brand• Somewhat aware of the Brand• Frequent discounts/deals• Borderline prestigious• Not ...
Familiarity                        • Somewhat                          47%                   Overall                   Opi...
Overall Perception of Dodge/Ram Brand•   High brand awareness•   Rugged/Tough•   Somewhat dependable•   Reasonably priced•...
Familiarity                            • Somewhat                              familiar                              42%  ...
Overall Perception of Jeep Brand• Somewhat aware of the brand• Rugged/Tough• Exhilarating• Not fuel efficient• Not prestig...
Familiarity                         • Somewhat                           familiar                           41%           ...
Awareness      2nd   5th   6thFamiliarity    2nd   5th   6thExc. Opinion   8th   7th   7thDef. Cons.     3rd   6th   6thIn...
Strengths  • Dealers in key cities/statesWeaknesses  • Limited product appeal  • Limited product portfolio  • Limited ads ...
African American Consumers                             • Prefer Chrysler                               over Dodge and     ...
31
Chrysler Group Communicate desired brand                             Create emotional  attributes to                      ...
Stretched Black          Black is Better Sick and Stressed      Straddlers                 11%        8%                  ...
Profitable Target SegmentsNew Middle                    Boomer   Stressed Black   Black is             Faith Fulfills  Cla...
New Middle Class                             “Doing It Big!”                                            • Smallest Segment...
• Promotion          • WSJ, NY Times, Black Enterprise, Business Week, News            Week          • Commercials that sh...
Faith Fulfills        “Blessed and Highly Favored! “                                                   •   Tied for 4th la...
• Promotion            • Major church conferences and mega ministries            • Religious networks Faith      • BET, TB...
Boomer Blacks                 “Living my life like it’s golden!”                                         •   7th largest s...
• Promotion          • TV commercials and ads should link product to black heritage and            culture          • Prom...
Vehicles with                                            better fuel                                            efficiency...
Increase           42
Contest                              Interactive WebsitesPromotion with Black Athletes                                    ...
• Population in South and Northeast28.0 M         • Population 18 years old and above18.9 M      • Population 18 years old...
2011       2012      2013Chrysler                        106,296    111,610   122,771Dodge                        182,221 ...
$590$100                          Advertising cost                              per vehicle to                            ...
2011            2012           2013Potential Units Sold                            326,479        342,803        377,084Pr...
$ 192.6 Million – Total Budget           AM/FM Radio      $34.7 Million              18%                                  ...
$202.3 Million- Total Budget                             $ 36.4 Million                                                   ...
$222.5 Million-Total Budget                              $ 40.1 Million                                AM/FM Radio        ...
2011     2012       2013In MillionsCurrent Est. Expense                       $462.0   $456.0    $468.0Proposed Expense fo...
8%29%   9%                52
• Current Revenue                • Proposed Revenue      Stream                            Stream   2011        2012    20...
• Current Profit Streams • Proposed Profit Streams    2011        2012   2013      2011        2012          2013 • $1,579...
Awareness      1st   (+1)   3rd   (+2)   3rd        (+3)Familiarity    1st   (+1)   3rd   (+2)   4th        (+2)Exc. Opini...
1st – Chrysler’s marketing efforts                                               2nd –Chrysler brands shouldshould be geog...
RecognizeUnderstandCommunicate              57
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2010 Chrysler Case Study Competition

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2010 Multiline Consulting Marketing Strategy presented at the National Black MBA Conference in
Los Angeles, CA

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  • Transcript of " 2010 Chrysler Case Study Competition"

    1. 1. Winston-Salem State University 1
    2. 2. Miranda R. DaltonJonnetta PembertonDeWayne HallAdvisor: Dr. Suresh Gopalan 2
    3. 3. Analysis of the African American Consumer: Profile and Emerging TrendsChrysler Brands and African American Consumers Marketing Plan “We Are What We Drive” 2011-2013 3
    4. 4. Build a stronger brand imagewith African Americans Increase sales Gain market share 4
    5. 5. 5
    6. 6. African Americans comprise 13.5% of the U.S population • Estimated Total Population: 39-41 million • Median Age: 30.6 • Gender: 52% female 48% male • Martial Status: Married 37.2% Single 62.8% • Family Size: 2.66 people 6
    7. 7. 100 > 1.90% 75 - <100 7.70% 50 - <75 15.20%(Dollars in Thousands) 35 - <50 14.80% 25 - <35 13.50% 15 - <25 15.20% 10 - <15 8.60% 5 - <10 9.20% 0-<5 6.60% 0% 2% 4% 6% 8% 10% 12% 14% 7 16%
    8. 8. 10% 18% 18% 7 million African Americans 54% 21 million African Americans 8
    9. 9. $57.8 B 77.8 B $ $41.8B $32.9 B $35.6 B $49.6B $38.5 B $57.9 B $63 B $57.4 B 9
    10. 10. In 2008:• African American consumers had a total earned income of $803 billion• If African Americans were a separate nation, this amount would count as the 17th largest economy in the world• African Americans spent $31.5 billion on cars and trucks 10
    11. 11. Affluent African Americans• Income: $75,000 and above• Considerable amount of disposable income and material possessions• 45% of total purchasing power• Educated and sizeable market segment• High potential for selling luxury brands 11
    12. 12. African Americans Represent : 2012 2008 $1.1 trillion $803 billion 12
    13. 13. Make 85% of brand Increasingpurchasing income decisions Purchase Less 58% of allcomparative new cars shopping and trucks 13
    14. 14. • Acknowledging• Understanding• Catering 14
    15. 15. African Americans are twice as likely to trustblack media than mainstream sources. Ads are well received when they convey benefits of a product or service, and send a positive message to the black community. 15
    16. 16. AM/FM Radio 18% TV 36%Magazines & Others 20% Internet 26% 80% of weekly media time is spent with TV, Radio or Internet 16
    17. 17. Classy 36% Powerful 35% Cute 23% Energetic 21%Easy Going 19% Leader 18% Bold 16% Honest 15% 0% 5% 10% 15% 20% 25% 30% 35% 40% 17
    18. 18. Lincoln Nissan Cadillac9.83% 9.54% 9.44%Kia Mitsubishi Chrysler9.36% 9.29% 8.59%Mercury Dodge Chevrolet7.83% 7.72% 7.38% Saturn 7.35% *Jeep Ranked 22nd 18
    19. 19. 1 in 4 Affluent African Americans plan to buy a car over the next 12 months MeaningfulMany distinct similarities and segments differences One size doesn’t fit all Desire vehiclesTrend Setters that express individuality and success Motivated by quality and selection 19
    20. 20. Stretched Black Black is Better Sick and Stressed Straddlers 11% 8% 7% Black Onliners New 7%MiddleClass 5% Boomer Blacks 6% Family Struggles Digital Networkers 10% 7% Broadcast Blacks Faith Fulfills 17% Connected Black 10% Teens 12% 20
    21. 21. Black consumers trustHeterogeneous market black media Highly concentrated inFamily and friends are the Southeast and inopinion leaders urban areasYounger and spend Women influence allmore major purchases Very Brand Conscious! 21
    22. 22. Overall Perceptions of Chrysler Brand• Somewhat aware of the Brand• Frequent discounts/deals• Borderline prestigious• Not fuel efficient• Not exhilarating 22
    23. 23. Familiarity • Somewhat 47% Overall Opinion of Product • Good 36% PurchaseAfrican American Intent Perception • Probably Not 37% 23
    24. 24. Overall Perception of Dodge/Ram Brand• High brand awareness• Rugged/Tough• Somewhat dependable• Reasonably priced• Not fuel efficient 24
    25. 25. Familiarity • Somewhat familiar 42% Overall Opinion of Product • Fair 42% PurchaseAfrican American Intent Perception • Probably not 34% 25
    26. 26. Overall Perception of Jeep Brand• Somewhat aware of the brand• Rugged/Tough• Exhilarating• Not fuel efficient• Not prestigious 26
    27. 27. Familiarity • Somewhat familiar 41% Overall Opinion of Product • Good 58% PurchaseAfrican American Intent Perception • Definitely not 48% 27
    28. 28. Awareness 2nd 5th 6thFamiliarity 2nd 5th 6thExc. Opinion 8th 7th 7thDef. Cons. 3rd 6th 6thIntentions 3rd 6th 5thShopping 3rd 5th 5thRetail Share 6th 7th 6th 28
    29. 29. Strengths • Dealers in key cities/statesWeaknesses • Limited product appeal • Limited product portfolio • Limited ads that cater to African AmericansOpportunities • Significant buying power and market size • Median age of 30.6 is younger than that of the U.S. population (36.9) • Heavy media consumption offers many advertising opportunities • Urban population allows “concentrated” targetingThreats • Declining optimism towards economic recovery • Certain segments have less income 29
    30. 30. African American Consumers • Prefer Chrysler over Dodge and Jeep brands • Low levels of consideration to purchase Chrysler Group’s brands in relation to competitors 30
    31. 31. 31
    32. 32. Chrysler Group Communicate desired brand Create emotional attributes to involvementAfrican American consumers Create brand Identify and awareness at eliminate brand young age bottlenecks Align brand attributes to African American market 32 segments
    33. 33. Stretched Black Black is Better Sick and Stressed Straddlers 11% 8% 7% Black Onliners New 7%MiddleClass 5% Boomer Blacks 6% Family Struggles Digital Networkers 10% 7% Broadcast Blacks Faith Fulfills 17% Connected Black 10% Teens 12% 33
    34. 34. Profitable Target SegmentsNew Middle Boomer Stressed Black Black is Faith Fulfills Class Blacks Straddlers Better Increased Sales and Revenue 34
    35. 35. New Middle Class “Doing It Big!” • Smallest Segment 5% • 67% between 25-44 years old and mostly female • 82% household income at least 50K and 1/4 over 100k • Highest educated • Heavy internet, referrals from friends, magazines, TV etc... • Not a fan of "slang" Grand Cherokee Dodge Charger Dodge Challenger Town and Country Chrysler 300 Dodge Viper• Price: $26,010 • Price:$31,385 • Price: $32,238 • Price:$35,252 • Price: $36,063 • Price: $90,630 35
    36. 36. • Promotion • WSJ, NY Times, Black Enterprise, Business Week, News Week • Commercials that show successful confident black individuals and families New • HBCUsMiddle Supporting alumni events Class • Excellent customer service, will assist in promoting referrals • Placement • Dealerships • Internet shoppers 36
    37. 37. Faith Fulfills “Blessed and Highly Favored! “ • Tied for 4th largest - 10% • 83% are >35 years and mostly female • 71% income is 50K to 100k • Faith focal point of life • Media consumption is religious radio/TVDodge Journey Jeep Liberty Grand Cherokee Chrysler Sebring Dodge Charger Chrysler 300• Price: $25,295 • Price: $25,750 Price:$26,010 • Price: $28,620 • Price:$31,385 • Price:$36,063 37
    38. 38. • Promotion • Major church conferences and mega ministries • Religious networks Faith • BET, TBN, TCT Ex: Sunday’s BestFulfills • Religious radio stations • Placement • Dealerships with a high percentage of black salesmen 38
    39. 39. Boomer Blacks “Living my life like it’s golden!” • 7th largest segment - 6% • 75% over 44 years (mean age: 52) and mostly female • 40% household income between 50K-100k • Prefer black advertising and ads that reflect black culture • 90% are onlineChrysler PT Cruiser Jeep Liberty Grand Cherokee Chrysler Sebring Chrysler 300 All Ram Trucks• Price: $18,275 • Price: $25,750 • Price:$26,010 • Price: $28,620 • Price: $36,063 • Price:$38,930 39
    40. 40. • Promotion • TV commercials and ads should link product to black heritage and culture • Promotions should emphasize commercials with black employeesBoomer saying “I built this car” and “This is my family car” Blacks • Link product to black service men and women Military commercial “When you were there, we were there with you ”Served the Country with Distinction” • Placement • Dealerships with a high percentage of black salesmen • Internet shoppers 40
    41. 41. Vehicles with better fuel efficiency Luxury Smaller andsedans and mid-size SUVs vehicles Classy and cute Price pointsVehicles that between 12K-are powerful 15K and above 50K 41
    42. 42. Increase 42
    43. 43. Contest Interactive WebsitesPromotion with Black Athletes 43
    44. 44. • Population in South and Northeast28.0 M • Population 18 years old and above18.9 M • Population 18 years old and above that will purchase a new vehicle in the next 123.8 M months (1 in 5) 44
    45. 45. 2011 2012 2013Chrysler 106,296 111,610 122,771Dodge 182,221 191,332 210,465Jeep 37,963 39,861 43,847Total Potential Units 326,479 342,803 377,084 45
    46. 46. $590$100 Advertising cost per vehicle to find a new Advertising cost per customer vehicle to market to existing customer 46
    47. 47. 2011 2012 2013Potential Units Sold 326,479 342,803 377,084Proposed AdExpenditure per Unit 590 590 590Proposed AdvertisingExpense $ 192,622,841 $202,253,983 $222,479,382 47
    48. 48. $ 192.6 Million – Total Budget AM/FM Radio $34.7 Million 18% $69.3 Million TV 36%$38.5 Million Magazines & Others 20% Internet 26% $50.1 Million 48
    49. 49. $202.3 Million- Total Budget $ 36.4 Million $ 72.8 Million AM/FM Radio TV 18%$40.4Million 36% Magazines & Others 20% Internet 26% $ 52.7 Million 49
    50. 50. $222.5 Million-Total Budget $ 40.1 Million AM/FM Radio $ 80.1 Million TV 18% 36% Magazines & Others 20%$44.5 Million Internet 26% $ 57.8 Million 50
    51. 51. 2011 2012 2013In MillionsCurrent Est. Expense $462.0 $456.0 $468.0Proposed Expense forAfrican Americans 192.6 $202.3 $222.5Additional MarketingExpense 195.4 266.7 309.5Total $850.0 $925.0 $1,000.0 51
    52. 52. 8%29% 9% 52
    53. 53. • Current Revenue • Proposed Revenue Stream Stream 2011 2012 2013 2011 2012 2013• $52,026 • $56,708 • $61,245 • $56,723 • $62,385 • $67,685 Percent Increase 9% 10% 11% In Millions 53
    54. 54. • Current Profit Streams • Proposed Profit Streams 2011 2012 2013 2011 2012 2013 • $1,579 • $2,106 • $2,358 • $1,973 • $3,018 • $3,756 Percent Increase 25% 43% 59% In Millions 54
    55. 55. Awareness 1st (+1) 3rd (+2) 3rd (+3)Familiarity 1st (+1) 3rd (+2) 4th (+2)Exc. Opinion 4th (+4) 4th (+3) 4th (+4)Def. Cons 3rd (0) 4th (+2) 4th (+2)Intentions 2nd (+1) 4th (+2) 3rd (+2)Shopping 2nd (+1) 3rd (+2) 4th (+1)Retail Share 3nd (+3) 4th (+3) 5th 55 (+1)
    56. 56. 1st – Chrysler’s marketing efforts 2nd –Chrysler brands shouldshould be geographically appeal to African Americanconcentrated and focused on key preferences and tasteAfrican American segmentation 3rd –Chrysler should increase the number of minority dealerships 56
    57. 57. RecognizeUnderstandCommunicate 57
    58. 58. 58

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