Auto Industry Analysis 2013
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Auto Industry Analysis 2013

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This presentation provides a comprehensive overview of the current auto industry. The focus is to further explore car manufacturers, as well as some new technologies and ideas facing this sector. From ...

This presentation provides a comprehensive overview of the current auto industry. The focus is to further explore car manufacturers, as well as some new technologies and ideas facing this sector. From there, we move into a discussion on car dealers. This section breaks down customer car buying behaviors, during the pre-shopping and dealership shopping phases. To end we take a look into how various companies are leveraging technologies to advance the industry.

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    Auto Industry Analysis 2013 Auto Industry Analysis 2013 Presentation Transcript

    • auto industry propanestudio.com san francisco newbusiness@propanestudio.com 415.550.8692 private & confidential july 19th 2013
    • agenda • industry overview • car manufacturers • car dealers • car buying behaviors • leveraging new technology
    • industry overview
    • statistics industry overview cars on the road 245 M1 expected sales 2013 $15.5 M2 total sales jan-june $7.8 M3 average price of a car $30,3034 dealership revenue $609 B5 new car dealers 17,540 (US) 1,307 (CA)6 1. Whitehurst, Roslyn. "The Number of Older Vehicles on the Road Increased More than 17 Million Since 2009." Experian. N.p., 27 June 2012. Web. 2. Snyder, Jesse. "US Sales pace in August Projected to Top 15.5 Million Analyst Predict." Automotive News. N.p., 28 Aug. 2013. Web. 3. Durbin, Dee-Ann. "Auto Sales Keep Picking up Speed." Philly.com. N.p., 04 July 2013. Web. 4. MoneyBuilder. "Average Price of a New Car?" Forbes. Forbes Magazine, 10 May 2012. Web. 5-6."NADA Data." State of the Industry Report 2012. N.p., 2012. Web.
    • holdingcompanies industry overview General Motors (Buick, Cadillac, Chevrolet, GMC) Volkswagen Group AG (Audi, Bentley, Lamborghini, Porsche, Volkswagen) Toyota Motor Corp (Lexus, Scion, Toyota) Hyundai Motor (Kia, Hyundai) Ford Motor Company (Ford, Lincoln) Nissan (Datsun, Infiniti, Nissan) Fiat S.P.A (Chrysler, Dodge, Ferrari, Fiat, Jeep, Maserati) Honda Motor Company (Acura, Honda) BMW AG (BMW, MINI, Rolls-Royce Daimler AG (Mercedes, Mitsubishi) Tata Motors (Jaguar, Land Rover, Tata, Daewoo)
    • fastestgrowingcarcompanies industry overview 1.volks- wagen 2.BMW 3.BAIC 4.toyota 5.kia & hyundai (tie) 6.SAIC motor 7.FAW group 8.Geely automotive 9.nissan 10.tata motors 7."World's Fastest Growing Car Companies." Forbes. Forbes Magazine, n.d. Web. <http://www.forbes.com/pictures/eglg45fgfmj/what-auto-execs-think-3/>.
    • automanufacturersbymarketshare industry overview GM 24% Ford 20% Toyota 19% Chrysler-Fiat 15% Honda 12% Nissan 10% figure 1."Auto Sales - Markets Data Center - WSJ.com." WSJ.com. N.p., 04 Sept. 2013. Web
    • car manufacturers
    • newtechnology connected cars the connected car enables the exchange of information between the car and its surroundings via the Internet. the connection is provided by a transmitter/ receiver unit built into the vehicle or via a 3rd party system such as a smartphone8 8."Trend Analysis: Connected Car 2015." MBtech Consulting. Mercedes Benz Consulting, n.d. Web.
    • challengevs.opportunity car manufacturers the challenge: original equipment manufacturers are having difficulties generating revenue from connected cars for two reasons, first connected vehicles are costly to build, second it is hard to convert customers from the trial phase to adoption of the technology the opportunity: however, connected car technology has the ability to add significant value to customers through the creation of a better user experience and the continuation of ongoing customer relationships9 9."The Connected Car Industry Report 2013." Telefonica Digital. Telefonica Digital, 2013. Web.
    • benefitsofconnectedcars car manufacturers 1. increase in road capacity a. one stretch of road will be able to safely accommodate more cars, eliminating congestion and reducing accidents 2. connected communities a. connected car sharing could lead to a large reduction in vehicle ownership 3. personalization a. every car could feel like your car, cars that come to your location and are smart enough to remember individual drivers’ preferences 4. virtual environments a. heads up displays, that allows customers to keep their eyes on the road, sensors that recognize hazards and points of interest along the way10 10."The Connected Car Industry Report 2013." Telefonica Digital. Telefonica Digital, 2013. Web.
    • Luxury Vehicles Economy Vehicles embracingconnectivity car manufacturers
    • built-in systems
    • nissan built-in systems system: NissanConnect partnered with Google, Pandora and Intel features: real time traffic updates, predictive 5 day weather forecasts, hands free communication (texts and calls), music streaming connectivity: customer’s Bluetooth phone pricing: $1090 for the package, first 3 years free, after that yearly subscription 11.Nissan USA. N.p., n.d. Web. <http://www.nissanusa.com/cars/sentra/features/>.
    • volvo built-in systems system: Sensus Connected Touch partnered with Ericsson features: full internet browser, real time traffic updates and directions, points of interest, service center locator, weather updates, voice control connectivity: customer phone data plan pricing: $2,058 for the package12 12."Volvo Sensus Connected Touch." Sensus Connected Touch. N.p., n.d. Web. <http://www.volvocars.com/intl/sales-services/sales/sensus-connected-touch/pages/ default.aspx>.
    • minicooper built-in systems system: MINIConnected USB integration features: hands free voice recognition, music playlists, Google local search, apps (Facebook, twitter etc.), send to car, navigation connectivity: customer’s Bluetooth phone pricing: package for $2,25013 13."What Is MINI Connected? Official MINI Video." YouTube. YouTube, 07 Mar. 2011. Web. 27 Sept. 2013. <http://www.youtube.com/watch?v=1zvp7D5KGtE>.
    • porsche built-in systems system: Porsche connect features: voice command, navigation, music and contacts transferring, mobile app connectivity: customer’s Bluetooth phone pricing: package for $93014 14."Bluetooth® Communications - Porsche Service - Service and Accessories - Dr. Ing. H.c. F. Porsche AG." Bluetooth® Communications - Porsche Service - Service and Accessories - Dr. Ing. H.c. F. Porsche AG. N.p., n.d. Web. <http://www.porsche.com/usa/accessoriesandservices/porscheservice/bluetooth/>.
    • gmc built-in systems system: Intellilink features: internet radio (Sirius, Pandora), hands free calling, voice commands and controls, real time traffic and directions, points of interest, updated info about movies, weather and fuel connectivity: customer’s Bluetooth phone pricing: free for first 3 mo.,, then monthly subscription15 15."GMC." Infromant System. N.p., n.d. Web. <http://www.gmc.com/intellilink-infotainment-system.html>.
    • brought-in systems
    • mercedes brought-in systems system: Mbrace powered by Hughes Telematics features: Send2Benz, route assistance, concierge, points of interest, location based traffic, in vehicle apps (Facebook, yelp etc.) connectivity: monthly or yearly subscription pricing: 3 package options ranging from $280/yr. to $14/mo16 16."Mbrace In-Vehicle Telematics Technology and Personal Assistance | Mercedes-Benz." Mercedes-Benz USA. N.p., n.d. Web. <http://www.mbusa.com/ mercedes/mbrace>.
    • kia brought-in systems System: UVO system powered by Microsoft Features: voice recognition, a Send2Car app, roadside assistance (crash notification and 911 connect), vehicle maintenance reminders Connectivity: customer’s Bluetooth phone Pricing: customer’s data plan17 17."Kia Motors - Experience UVO." Kia Motors - Experience UVO. N.p., n.d. Web. <http://www.kia.com/us/uvo/>.
    • toyota brought-in systems system: Entune uses mobile apps and data services features: apps (iheartradio, movietickets, opentable etc.), stocks, fuel prices, weather, traffic updates, sports connectivity: customer’s data plan pricing: free for 3 years, then monthly subscription $5-$2818 18."Toyota Entune - IHeartRadio." YouTube. YouTube, 14 Dec. 2012. Web. <http://www.youtube.com/watch?v=vLGeXslNObU>.
    • combination systems
    • bmw combination systems system: ConnectedDrive uses a built in SIM card and iPhone integration features: send-to-car app, heads up display, real time traffic updates, vehicle maintenance reminders, personal assistant (directions, destinations etc.), hands free calling and messaging connectivity: customer’s data plan pricing: 3 year trial period, then $182.21 /yr19 19."BMW Vision ConnectedDrive - How to Steal Jewellry." YouTube. YouTube, 12 Aug. 2011. Web. 2013. <http://www.youtube.com/watch?v=P-12wG6V46U>.
    • lexus combination systems system: Enform features: app suite (pandora, bing, opentable etc.), real time weather and traffic updates, destination services, roadside assistance, stolen vehicle location, collision notification connectivity: customer’s data plan pricing: 1 yr. free, then from $139.50-$264.90 /yr20 20."2013 Lexus Enform App Suite." YouTube. YouTube, 14 June 2012. Web. <http://www.youtube.com/watch?v=dGwDUzKD9R0>.
    • audi combination systems system: Audi Connect w/built in wi-fi hotspot features: Google earth, points of interest, travel information, weather reports, fuel prices, send to car, voice control connectivity: customer’s data plan pricing: partner with T-Mobile plans for $15/mo21 21."Audi Connect." In Car WiFi. N.p., n.d. Web. <http://www.audiusa.com/innovation/intelligence/audi-connect>.
    • chrysler combination systems system: Uconnect features: built in wi-fi, in vehicle apps (iheartradio, Pandora etc.), emergency assistance (stolen vehicle, 911), voice texting, vehicle performance stats, send-to-car connectivity: customer’s data plan and Bluetooth enabled phone pricing: subscription from $9.99/day to $34.99/month22 22."Chrysler Uconnect." Chrysler Uconnect. N.p., n.d. Web. <http://www.driveuconnect.com/>.
    • ford combination systems system: Ford Sync features: voice control for hands free calling and texting, music playback, turn by turn directions, vehicle health report, 911 assist, in car apps, built in wi-fi connectivity: customer’s Bluetooth phone pricing: subscription for wi-fi23 23."Ford Sync." Ford Sync. Ford, n.d. Web. <http://www.ford.com/technology/sync>
    • chevy combination systems system: Chevy MyLink features: hands free calling/messaging, app integration (Pandora, Sirius Radio etc.), voice control connectivity: customer’s Bluetooth phone pricing: unknown24 24."Chevrolet MyLink." Take Control. Chevy, n.d. Web. <http://www.chevrolet.com/mylink-vehicle-technology.html>.
    • summary connected cars the internet of things is the way of the future. Auto Manufacturers will experience the most success when they are able to provide customers with personalized features they need at an affordable price.
    • opportunitiesforthefuture connected cars • interactive touchscreen interfaces • mobile app development (send-to-car feature) • heads-up display (Mercedes pointing prototype) • enhanced car windows (Toyota zooming prototype) • rearview cameras (Keio University Japan transparent backseats) • augmented reality GPS (directions projected on the road)
    • newidea car sharing car sharing is a version of car rentals where users rent cars for a short period of time often by the hour or for the day. car sharing gives customers access to vehicles without the cost and worry of ownership.
    • bmwdrivenow car sharing • premium car sharing by bmw, mini & sixt available in san francisco • users join and then receive their individual drivenow id • they can locate cars via the drivenow app or site • and drive for as little or long as they want ($12 for first 30 mins and .32 for each additional min or $90 for the day) • cars can be dropped off at any drivenow station25 25. "DriveNow." BMW. N.p., n.d. Web. <https://us.drive-now.com>.
    • newidea car clubs car clubs allow individuals to purchase vehicle packages, giving them access to a variety of luxury cars. customers can experience these vehicles for a allocated number of days per year based on the their individual plans.
    • clubsportiva car clubs • gives car connoisseurs access to a luxury fleet of vehicles for a monthly membership fee. • the club takes care of the cost of depreciation, insurance and maintenance • members enjoy the cars without the inconvenience of ownership26 26."Exotic Car Rentals, Exotic Car Tours, Club Memberships." Club Sportiva. N.p., n.d. Web. <http://clubsportiva.com/>.
    • summary car sharing & car clubs successful companies will have a wide reach and superior customer service. car pickup locations will be widespread and maybe, in the future the vehicle will drive to the customer. representatives will be accessible to customers via all digital channels, including in the vehicle interface.
    • opportunitiesforthefuture car sharing & car clubs • seamless and interactive websites that let users browse, schedule and reserve vehicles • this also includes a mobile component for bookings on the go • smart car interface systems that remember drivers preferences • interfaces with video/audio/augmented reality capabilities that enable customers to access company representatives
    • car dealers
    • carbuyinggoesdigital • dealers are no longer the source of product information • buying conversations are happening online instead of at the dealership • dealers are approached much later in the game27 27. Boyle, Matthew. "Why Car Dealers Are Failing Online Customers." Why Car Dealers Are Failing Online Customers. SlideShare, 27 Sept. 2012. Web.
    • car buying behaviors
    • pre- shopping
    • buyersgatherinfoonline pre-shopping • 85% shop online first where they can easily compare prices and vehicle models • 64% consult sites such Kelly Blue Book to get the manufacturer’s invoice price • 25% have used or will use Facebook as a resource while shopping for their next vehicle28 28. "Have You Met the New Car Shopper?" 2013 New Car Guide. Cars.com, 2013. Web.
    • sitesforbuyers pre-shopping
    • sitesforbuyers pre-shopping
    • sitesforbuyers pre-shopping
    • sitesforbuyers pre-shopping
    • sitesforbuyers pre-shopping
    • buyersexplorefinancingoptions pre-shopping in addition to pre-shopping on sites, smart car buyers tend to deal with financing ahead of time. • finance department is the biggest profit center for dealerships • shop interest rates from local banks or credit unions • bring newfound knowledge to the dealership and present it to the salesman and challenge him to match or beat your rate29 29. Munroe, Brian. "Buying a Car: What to Know Before You Go." Car and Driver. N.p., June 2009. Web.
    • dealership shopping
    • theindependentbuyer dealership shopping • car buyers want to remain anonymous until they are ready to buy30 • they are interested in engaging with technology like mobile apps, interactive kiosks, and virtual videos to independently and easily access vehicle information 30. Bunkley, Nick. "Why Dealers Should Embrace 'the Age of Transparency'"Automotive News. N.p., 22 Apr. 2013. Web.
    • theindependentbuyer dealership shopping • use smartphones for tasks closer to purchase • 33% feel that info attained from their mobile devices is essential in their vehicle purchase • 43% use smartphones on the dealership floor31 31. "Have You Met the New Car Shopper?" 2013 New Car Guide. Cars.com, 2013. Web.
    • theindependentbuyer dealership shopping • enjoys engaging with a series of interactive kiosks and tv displays • this allows customers to view features and build their own car from scratch • tesla stores as pictured on the left, are an excellent example of this new dealership experience that is not only interactive, but incorporates digital technology
    • audidigitalshowroom next generation experience • audi opened the world’s first digital dealership in london during 2012 • the dealership is two story and features only 3 cars on display that rotate weekly • customers have the freedom to wander the floors, interact with paint and leather samples and manipulate car designs via in store touchscreens • customers can also schedule test drives, negotiate and purchase vehicles all from the digital dealership • buyers believe this digital experience is much more relaxed and places them at the center of the buying experience32 32. Laird, Jeremy. "Audi's Digital Showroom Is the Ultimate Car Buying Experience."TechRadar. N.p., 03 Dec. 2013. Web.
    • summary car buying behaviors successful dealerships will be the ones that leverage technology to quickly deliver car buyers with customized relevant information. this information will be consistent and available on all digital channels. no matter what customers will be connected, whether they choose to pre-shop online or engage with mobile devices and other technology on the dealership floor.
    • opportunitiesforthefuture car buying behaviors • create intelligent, easy to navigate sites that combine all the resources customers (reviews, invoice price information, financing etc.) use when pre-shopping new cars • ensure these sites are responsive and function seamlessly on mobile devices • build smart interactive touchscreens that live on the dealership floor to engage customers
    • leveraging new technologies
    • salestool mobile • integration of mobile devices and apps for dealers to use on the sales floor • features Include: direct communication and the ability to send tailored messages to customers, access analytical information and DMS and CRM integration33 33. "FUSION Mobile Car Dealer Websites." Click Motive. N.p., n.d. Web. <http://clickmotive.com/mobile-car-dealer-websites.html>.
    • dmsvs.crm the differences dealership management system • track vehicle inventory & sales • calculate insurance & financing • track customers (follow-up) • manage accounting • manage dealer website • calculate commissions for sales staff • track purchase orders • manage parts inventory • manage work orders • schedule appointments34 customer relationship management • track marketing efforts • measure campaigns over multiple channels • track client responses, leads and deals • manage customer requests and rewards • schedule appointments • integrate social media35 34. "Dealership Management System." Wikipedia. Wikimedia Foundation, 09 Dec. 2013. Web. 35. "Customer Relationship Management." Wikipedia. Wikimedia Foundation, 26 June 2013. Web.
    • salestool tablet • intellacar is a way to revolutionize the sales process and empower reps to close more sales • reps are led through the sales process from greeting to delivery • they can even demonstrate car features through videos and illustrations and show customers instantly how different feature packages can enhance a car36 36."IntellaCar Is the Game-Changer That Transforms Shoppers IntoBuyers." IntellaCar. N.p., n.d. Web. <http://www.intellacar.com/>.
    • customerengagementtool mobile • creating custom apps that give loyal customers access to coupons and benefits • features: dealer directions and contact info, inventory search and payment details37 37. Long, Kimberly. "The Importance of Mobile Websites for Dealerships." Internet Department. Auto Dealer Monthly, June 2011. Web.
    • customerengagementtool mobile • QR codes next to traditional window labels so customers can access information about vehicles quickly and easily • features include: record of saved vehicles, book test drives on the spot38 38. Long, Kimberly. "Incorporating QR Codes into Dealership Marketing." Article. Auto Dealer Monthly, June 2011. Web.
    • inventorymanagementtool software • VinManager allows dealers to access stock numbers directly • they can use the VinCamera to take and upload photos and videos of vehicles and print customized window stickers • dealers also have access to integrated pricing tools, DMS integration tool that automatically adds or removes vehicles from inventory39 39. "Take Your Automotive Inventory Everywhere." VinSolutions. N.p., n.d. Web. <http://www.vinsolutions.com/inventory-overview.aspx>.
    • othervinsolutiontools software
    • wholesalebuying&sellingtool online • allow dealers to purchase vehicles online instead of attending traditional auctions • this allows dealers to sell non- moving inventories more quickly • two sites dealers are using are OVE.com40 and ATC- Onlane41 40. OVE.com. N.p., n.d. Web. <https://www.ove.com/login>. 41. "Manheim." N.p., n.d. Web. 30 Sept. 2013. <http://www.manheim.com/>.
    • vehiclefinancingtool online • dealers can finance any customer regardless of credit and streamline the entire process • two sites dealers are using DealerTrack42 and RouteOne43 42. "Dealertrack Technologies." Dealertrack Technologies. N.p., n.d. Web. <https://www.dealertrack.com/public/login.fcc?TYPE=33554432>. 43. "Dealers." Route One. N.p., n.d. Web. <http://www.routeone.com/>.
    • summary leveraging new technology successful dealerships will be the ones that use technology to streamline their internal business functions and selling strategies. they will use software and other tools to manage and track inventories. additionally, they will educate sales staff to serve each customer with a personalized approach.
    • opportunitiesforthefuture leveraging new technology • develop online and mobile solutions for dealerships to manage inventories • design apps that allow sales staff to easily show, share and save cars for customers • develop apps that educate dealership staff on sales tactics (quiz or game something that is fun and interactive) • design apps that project onto Smart TVs where sales staff and customers can close sales wirelessly instead of sitting at a desk
    • propane studio | 1160 battery street, suite 350 san francisco, ca 94111 | 415.550.8692 | www.propanestudio.com propanestudioisafull-service digitalagencyfocusedon developingexperiencesand solutionsthatfuelthewaypeople connectwithbrandsandeachother.