Social Leaderboard_Indian luxury car brands_14 September 2012


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Shack evaluated India's three top-selling luxury car brands – BMW, Audi and Mercedes-Benz – to derive a comparative benchmark of their standing on social platforms.

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Social Leaderboard_Indian luxury car brands_14 September 2012

  1. 1. SOCIAL LEADERBOARDLUXURY CAR BRANDS: 1st Sep – 14th Sep 2012
  2. 2. 1:INDEX:  SOCIAL LEADERBOARD: week-on-week performance of top 3 luxury car brands…  SUMMARY Potential upside for the festive season…  RECONNECT GRADE: o BMW o AUDI o MERCEDES-BENZ  WHY COMMUNITIES?  METHODOLOGY: the research process…  ABOUT SHACK©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  3. 3. 2:SOCIAL LEADERBOARD 1st September – 14th September 2012 93% 82% 65%Historical Ranking 86% 84% 79% 79% 80% 51% 46% 40% 31% 4th-17th Aug 18th-31st Aug 1st-14th Sep BMW Audi Mercedes©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  4. 4. 3:SUMMARY 12.0% 10.0% 8.0% Engaged Users (%) BMW 6.0% Audi Merc 4.0% 2.0% 0.0% Week-5 Week-6 Week-7 Week-8 Week-9 Week-10BUBBLE CHART SUMMARY 1. Frequency of user engagement has been most consistent for Mercedes-Benz 2. Active users (%) of Audi have fallen by ~50% in the week after the jungle Quattro drive event 3. Even though % Active users of BMW has increased w-o-w, corresponding user engagement has fallen 3.0x 3.6% 2.5x 1.7% 1.9% Engagement Frequncy (x) 2.0x BMW (W9) BMW (W10) 1.5x 2.0% Audi (W9) 2.3% 3.4% Audi (W10) 1.0x Merc (W9) Merc (W10) 0.5x 0.0x - 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Active Users (%)Notes: 1. Size of the bubble indicates unique active users 2. Engagement frequency: Average interactions per active user©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  5. 5. 4:FESTIVE SEASON – POTENTIAL UPSIDE• The festive season and the Indian GP are round the corner which givesluxury car brands an opportunity to boost their sales this year. Except forAudi, the industry this year has witnessed slow growth on account of thegloomy economic climate (rising interest rates, fuel prices etc.) which hascaused consumers, especially first-time buyers, to defer their purchase.• Sudhir Rao, MD of Skoda India believes that "Festive discounts across theindustry will be significant as car makers fight it out for the limited customerpool in the market."• Therefore, brands will be spending on discounts, promotional offers andfreebies to clear out the rising inventory, more likely of older variants oftheir models, and buck the existing sales trend.GROWING MIDDLE CLASS - THE MAIN TARGET 1200 1000 Monthly Sales (units sold) 800 2010 600 2011 400 2012* 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecNote: *2012 monthly sales volumes only available till September©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  6. 6. 5:  We observed the monthly sales numbers of Audi India for the previous 3 years and witnessed that sales jump in September-October and then gradually fall up till December.  Demand by existing luxury car owners/repeat buyers is largely inelastic for promotions, discounts. Discounts, promotions provide greater stimulus for upper-middle consumers who normally purchase near-premium brands like Honda and Volkswagen.  They are looking for a good deal and move up the value chain.  The auspicious time of the season also prompts individuals to make purchases during this season.  As a result, we observe a big gap between the actual outcome and the desired one.THE OPPORTUNITYWe believe that the target group for luxury car brands can be broadlysegregated into 2 1. TG-I: The immediate target audience is existing owners and prospective buyers of the brand. The primary communication objective here is to inform this group about product launches, special offers and share brand-related news. The brand would also listen to this audience for their feedback, answer their queries and look to them to influence others based on their experience.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  7. 7. 6: The Brand TG-I: Owners & prospects TG-II: Brand enthusiasts 2. TG-II: The other target group is that made up of enthusiasts who admire the brand for its technology, heritage, personality and other brand qualities. This group largely remains ignored by the brand, with all the mainline marketing communication focused on reaching out to prospects.Though TG-II does not have immediate purchasing power to own the brand,they are a major source of earned media for the brand and help inevangelizing the brand through word-of-mouth. The brands fans onFacebook, for instance, mainly belong to this second group. Even a 1%conversion of these fans in the future will result in 6000-10,000potential customers for the brand.The digital medium, with its participatory nature and flexibility in creatingtailored messaging, can be leveraged by brands to improve its brandreconnect with this latent audience and create brand advocates in theprocess.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  8. 8. 7:SPECIAL OPPORTUNITY FOR MERCEDESMercedes is lagging behind BMW and Audi. It is the only brand out of thethree German car makers that has heavily invested in the Indian GP - Team,Engines, Safety Cars etc. It is spending close to INR 8-10 crores inadvertising on the Indian GP, according to estimates. We believe that thebrand has an opportunity to reinvent its image by connecting with a newerand younger audience associated with Formula-I.THE APPROACHWe think that the brands will have to address the following gaps in order totap this opportunity- 1. Bridge the gap between enthusiasts and owners, instead of keeping them in silos which is the current scenario. The interaction will help in multiplying the desirability of the brand. Owners and enthusiasts interact in silos©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  9. 9. 8:Provide enthusiasts an opportunity to experience the luxury value of thebrand by creating parallel experiences which are accessible to them. e.g.Food and gifts are an integral part of the festival season. Therefore, thebrand can create a platform that provides a curated list of unique yetaffordable gifting options recommended by influentialtrendsetters/tastemakers. Curated Platforms such as AHA Life and TheFancy can be leveraged to create these experiences.As we lead up to the festive season, only time will tell whether brands canidentify and act on this opportunity or stick to the old formulaic Twittercontests, Facebook updates and social ads devoid of any context and, thus,weak marketing tools.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  10. 10. 9: RECONNECT GRADE  Reconnect with concept car designs (futuristic model, intelligent design, pioneering tech) is relatively high  The Hire web-film series failed to appeal to the TG1st – 7th September 2012 5.0% 4.0% Reconnect Grade 3.0% 2.1% 1.9% 1.9% 2.0% 1.4% 1.0% 0.2% - - -8th – 14th September 2012 5.0% 4.3% 4.0% Reconnect Grade 3.0% 2.0% 1.0% 0.4% 0.2% 0.2% 0.1% - - -©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  11. 11. 10: RECONNECT GRADE  Existing owners consider the new navigation system to be expensive  Coverage of the sports car experience, on an average, only managed to connect with 3 in 500 users 1st – 7th September 2012 5.0% Reconnect Grade 4.0% 3.2% 3.0% 2.3% 2.0% 1.2% 1.0% 0.4% 0.3% 0.3% 0.3% - 8th – 14th September 2012 5.0% Reconnect Grade 4.0% 3.0% 2.0% 0.9% 0.7% 1.0% 0.5% 0.1% 0.1% 0.1% 0.03% -©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  12. 12. 11: RECONNECT GRADE  Promotional content around festive offers was the most popular theme  The Star Drive experience, on average, appealed to 4 in 1000 users1st – 7th September 2012 5.0% 4.0% Reconnect Grade 3.0% 2.0% 0.9% 0.8% 1.0% 0.5% 0.3% 0.3% 0.2% 0.1% -8th – 14th September 2012 5.0% 4.0% Reconnect Grade 3.0% 2.0% 1.0% 0.8% 0.7% 0.3% 0.3% 0.2% 0.2% 0.03% -©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  13. 13. 12:About the Social LeaderboardThe Leaderboard updates the results derived from our internal tools andmethodologies on a bi-monthly basis, based on which we will bring out ourconclusions. Shack uses a proprietary grading mechanismShackMatrix™ to derive the Authority, Activity and Reconnect Grades,which are key determinants of a brand’s social presence. Read moreabout the Matrix and Grades.Why Communities?Create, Connect, Curate — The Shack Manifesto for BuildingCommunitiesWith the social online world becoming an important cog in a customer’srelationship with a brand, there is a need for a common language that cangive meaning to the seemingly unstructured social data scattered acrossplatforms that represents a brand’s interaction with its core community.As has happened with the introduction of any new communication medium,practitioners are making the mistake of using the measuring stick (such asviews and reach) of traditional advertising media to gauge success in thesocial web. For over a half a century, we have been thinking about©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  14. 14. 13: marketing in terms of campaigns with a very clear beginning, middle and an end. But the online digital world is currently in the process of being rebuilt around people and what we know as the social web, in a few years, would simply be the web. Therefore, long term success for brands depends on leveraging these human relationships to create a strong sense of community around products, concepts and values that are dearest to the brands.How we measure effectiveness in Online Communities?The ShackMatrix™ is a proprietary framework that enables assessment of abrand’s digital footprint in a holistic way. It is a common language designed tounderstand the value of a brand’s online efforts expressed through 5 grades thatcombine the understanding of traditional branding with the dynamics of a socialonline world.  Presence Grade: Measures how well is the brand represented on digital platforms.  Authority Grade: Measures how authoritative is a brand’s owned- channels for information on the brand and its products.  TG Grade: Measures the percentage of the desired target group mix active on the brand’s owned platforms.  Activity Grade: Measures the level of activity on existing channels.  Re-Connect Grade: Measures the extent to which community members connect and identify the brand with the attributes desired by it. ©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  15. 15. 14:Data MethodologyWe take online performance as a holistic concept. While size of the brand’scommunity and level of activity are important factors, the profile of the TG,the authority of the brand’s platforms and its recall are also equallyimportant ingredients.In calculating the ShackMatrix™, we assign weights to the different metricson individual platforms in order to combine them into a single comparablegrade that is relevant to the digital objectives of the brand.The weights are decided based on the relative effectiveness of the platformto a brand’s community as well as the brand’s own digital goals.Data Validity and IntegrityWe source the data from the brand’s official digital properties. Our scope isrestricted by the data made available through the APIs of the socialplatforms we cover.The coverage of data in this report is restricted to Facebook and Twitter.More detailed and granular metric studies are done for clients on a projectbasis.DisclaimerWhile reasonable effort has been made to ensure accuracy of data, Shack isnot responsible for any damage caused by individual decisions based on it.©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
  16. 16. 15:About ShackShack is a digital marketing company which brings together brands and theircustomers in carefully crafted, wholesome communities, providing exceptionalexperiences for all.We leverage communities for brands:In order to create and maintain buzz around your brand you need your targetaudience to form lasting relationships with your brand.We build platforms for the communities:Being a one-stop solution for all your community building and web-based marketingneeds, we craft comprehensive campaigns, based on careful strategy, encompassingan entire digital eco-system.We develop content for the platforms:Along with creating engagement tools both online and off-line we also encourage andfacilitate generation of remarkably effective and compelling content, in a methodicalmanner by our own team, and in a random manner, by your community members.We measure the impact on the brand:You need to monitor the impact that the campaign has on your brand. This impact isnot something hypothetical, it is hard, tangible, three-dimensional data that not onlytells you where you presently stand, but also tells you where you need to go andwhat path you need to follow with the help of Shack’s proprietary Digital EcosystemManagement tool. Website || Blog || Twitter ©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands