MARKET ANALYSIS OF HYUNDAI & PREOWNED SALES FROM NOV 1 2005 TO JULY 31 2006 PREPARED FOR: ERNIE PARISI, GENERAL MANAGER Prepared by: ROBERT D. KEETON Presented by: RICHARD HARRIS ZAHR & ASSOCIATES 1059 BROADWAY, SUITE E DUNEDIN, FL 34698 Toll Free: 877-230-3163
INTRODUCTION <ul><li>After thoroughly and systematically analyzing all of Buchanan Jenkins Hyundai’s sales, Keenote was able to pinpoint the consumers with the highest potential to purchase a Hyundai or preowned vehicle from Buchanan Jenkins Hyundai. </li></ul><ul><li>This analysis will now allow Buchanan Jenkins Hyundai to: </li></ul><ul><li>Focus specifically on the desired target with incisive, cost-efficient campaigns; </li></ul><ul><li>Make informed decisions regarding the deployment of financial and human resources; </li></ul><ul><li>Guide Buchanan Jenkins Hyundai in their own marketing efforts. </li></ul>
MOSAIC GLOSSARY <ul><li>Customer Segmentation – A method of grouping customers by similarities by MOSAIC lifestyle code. </li></ul><ul><li>Geodemographic – A term applied to marketing models that marry geography to aggregated demographics and lifestyle data. This method of classification groups people together according to their demographic characteristics and their geographical location. This allows you to determine which types of people predominate, and which types are under-represented. </li></ul><ul><li>MOSAIC Classification – A segmentation system, which is used to identify types of individual/household in a customer data file or geographical area. MOSAIC is owned and marketed by Experian. </li></ul><ul><li>MOSAIC Coded File – A data file of customer or area information, with a MOSAIC Code allocated to each record. </li></ul><ul><li>MOSAIC Type – One of the 60 unique neighborhood types within the US MOSAIC Classification System. </li></ul><ul><li>ZIP+4 (nine-digit ZIP codes) – fine divisions of a ZIP codes which are assigned by the United States Postal Service to further facilitate the delivery of mail. ZIP+4 area include geographic units such as a block face (one side of a street between intersections), or one floor of an apartment building. There are currently over 20 million residential ZIP+4s in the United States, each containing an average of 4-6 households. </li></ul>
UNDERSTANDING MOSAIC In today’s complex marketing world, where every choice is expensive, a powerful geodemographic segmentation system can be a business executive’s best friend. It is a versatile tool that allows you to define your target customers with accuracy, understand what makes them “tick,” and pinpoint their location on a map. You can then apply carefully selected marketing strategies that will hit the mark with accuracy and accountability. Among the many applications of geodemographic segmentation are customer profiling and development, site selection, and targeted direct mail campaigns.
BIRDS OF A FEATHER SHOP TOGETHER <ul><li>Geodemographic segmentation, also known as clustering, is based on the premise that people tend to gravitate towards others who are like them, settling into communities and neighborhoods of relative homogeneity. Factors that go into clustering include age, income, education, ethnicity, occupation, housing type, and family status. </li></ul><ul><li>Of course, you are not exactly like your neighbor and your family is not identical to the family across the street, but, painting in broad stroke, demographers have found that the old adage, “birds of a feather flock together” is true. And, most important to marketers, neighbors also share similar patterns of predictable consumer behavior. The need to “keep up with the Joneses” reflects this tendency for neighbors to buy the same products, shop at the same store, dine out at the same restaurants, and yes, drive similar cars. </li></ul>
BUCHANAN JENKINS HYUNDAI CUSTOMER DATABASE NORMALIZATION <ul><li>On August 11, 2006, Buchanan Jenkins Hyundai provided a customer database of 2,968 vehicle sales made from November 1, 2005 to July 31, 2006. </li></ul><ul><li>548 sales were dealer trades, auction & businesses. </li></ul><ul><li>1,021 had no addresses. </li></ul><ul><li>24 had duplicate last name and address. </li></ul><ul><li>14 had duplicate address. </li></ul><ul><li>15 had Post Office Boxes </li></ul><ul><li>26 addresses were non correctable. </li></ul><ul><li>Therefore, this analysis is based on 1,320 of which 729 were new or leased Hyundai sales and 591 were pre-owned sales. </li></ul>
BUCHANAN JENKINS HYUNDAI’S CUSTOM SALES UNIVERSE (DARK BLACK LINE)
49.32% OF HOUSEHOLDS WITHIN BUCHANAN JENKINS HYUNDAI’S CUSTOM SALES UNIVERSE DELIVERED 63.30% OF HYUNDAI SALES
E05 – AMERICAN GREAT OUTDOORS – 13.65% OF HOUSEHOLDS - PURCHASED 20.39% OF HYUNDAI & 13.92% OF PREOWNED Located in low-density urban centers and rural areas throughout Florida, the West and even pockets of Massachusetts, this cluster trails the U.S. median in income, education and home value. Twenty percent are age 65 plus. With median incomes of $34,000, seventy percent own their homes with median values of $34,000. Indexing at over four times that of the U.S. median, 25% live in mobile homes. 70% of households do not have children. They drive large pick-ups and small imported and domestic budget vehicles to blue collar jobs in manufacturing and clerical jobs in retail, education and healthcare. They tend to own older, basic PCs and are below average Internet users. For leisure, they enjoy woodworking, bird watching, crafts and sometimes, gambling. They enjoy country music and country entertainment via their satellite dishes. Their sports activities include hunting, fishing and cross-country skiing. They like to order their tools, outdoor or western apparel, hunting and fishing gear, collectibles and gardening supplies through catalogs and other direct media. They prefer domestic travel, usually by car or motor home.
E03 – PROFESSIONAL URBANITES – 6.98% OF HOUSEHOLDS – PURCHASED 7.67% OF HYUNDAI & 6.75% OF PREOWNED Located in low-density urban centers throughout Texas, the Southwest, California and parts of New York and Pennsylvania, this group of highly educated professionals has a median household income of $67,000, with a significant percentage earning over $100,000. Sixty percent claim interest or dividend income, 40% collect Social Security and 20% collect retirement income. The median age is 47. Children are present in a quarter of households. Sixty percent are married couples and 83% own homes. Median home value is $240,136. They enjoy a high employment rate, working mostly in the service industry. Health, education, retail, finance and manufacturing are top career choices. They enjoy catalog shopping for shoes, jewelry and athletic apparel .
E04 – URBAN ADVANCEMENT – 12.35% OF HOUSEHOLDS - PURCHASED 12.07% OF HYUNDAI & 10.34% OF PREOWNED This cluster is scattered throughout urban sprawl areas up and down the Atlantic coast, in parts of the South and in Southern California. Though the median household income is $46,500, over 40% earn between $100 and $200K. Most prefer driving upscale premium imports cars and SUVs to their service industry and blue collar jobs in retail, healthcare, sales and manufacturing. Seventy percent own homes. The median home value is $127,300. Median rent is $550. The median age is 42. Half are married couples. 25% of households have children present. 26% are age 65 plus vs. the U.S. median of just over 6%. They drive domestic pick-up trucks and prefer to shop Wal-Mart for their car maintenance needs. Hunting, fishing, motorcycling and crocheting top their leisure preferences. Satellite dishes provide family and country programming entertainment. They regularly purchase shoes, apparel and jewelry through catalogs.
C01 – SECOND CITY HOMEBODIES – 14.71% OF HOUSEHOLDS - PURCHASED 15.17% OF HYUNDAI & 13.98% OF PREOWNED While this cluster is more than 70% white, its minority Hispanic and Asian populations hold definite sway over some of its key consumer travel and media habits. With median household incomes of just over $56,000, these families know how to stretch those dollars for homes with median values of nearly $175,000. Located in urban areas as diverse as Maryland, Florida, California and Washington, these mostly married couples live in households that are nearly 66% without children under 18. Yet, their neighbors with children are fairly heavy buyers of baby formula and prepared meals for children. Representing a quite stratified demographic segment – 18% of households make over $100,000 while 30% bring in over $75,000 and 6% pull in over $150,000. Another 33% earn between $40,000 and $75,000. Given the diversity in this group, it’s no surprise that car preferences range from mini-vans to luxury Lexus, Acura, BMW and Volvo models. These households also have a penchant for lower-end German, Japanese and Korean-made vehicles, some perhaps, as second vehicles. Frequent users of family and fast-food restaurants, these people are busy dual income earners who relax at home watching rented movies and police docudramas on TV. They go to movie theatres monthly and are not avid readers of books. Their minority cluster population seeks Asian and Black electronic news and information. For sports entertainment, this diverse cluster scores high on soccer, boxing, weight lifting, football and fishing. The majority of this cluster doesn’t appear to be very interested in traveling. Yet, a small segment is two or three times or more likely than the national average to visit South or Central America.
F03 - SOUTHERN BLUES – 24.12% OF HOUSEHOLDS - PURCHASED 16.64% OF HYUNDAI & 24.89% OF PREOWNED Clustered mostly in Florida, pockets of this group can be found in the Great Lakes, the Virginias and Georgia. Most hold jobs in manufacturing, retail, sales, health, food and other service industries. Fifty percent are under age 35 and a quarter over age 50. Blacks and Hispanics are strongly represented in this cluster. Median age is 33 and median household income is $37,000. Thirty percent earn less than $25,000 while over 60% earn between $25,000 and $75,000. Sixty percent are homeowners with median home values of $82,000. Twenty percent are married with children. They work in manufacturing, retail, sales, health, food and other service industries. They drive economy imported and domestic cars, vans and pick-ups. Well below average home PC owners, they’re not Internet users. A small percentage of the group enjoys catalog shopping from Spiegel, Fingerhut, Avon or Mary Kay cosmetics. For music, news and entertainment they rely on cable programming. They prefer BET, MTV2 and premium movie channels. They enjoy watching basketball, boxing, pro-wrestling and NFL football. Other leisure activities include going to movies, participating in church groups and casino gambling. A small percentage travels domestically by chartered bus .
SO WHERE ARE THE 92,355 LOW POTENTIAL HOUSEHOLDS WITHIN BUCHANAN JENKIN’S CUSTOM SALES UNIVERSE? WHO CARES?
THE FOLLOWING DEMOGRAPHIC AND PSYCHOGRAPHIC DATA IS BASED ON THE HOT ZIP CODES WITHIN BUCHANAN JENKINS HYUNDAI’S CUSTOM SALES UNIVERSE. IN CERTAIN SITUATIONS, LIKE THIS, A MUCH CLEARER PICTURE IS DRAWN BY FOCUSING ON INDEXES RATHER THAN NUMBERS OR PERCENTAGES. INDEXES ARE DERIVED BY DIVIDING THE PERCENTAGE OF HYUNDAI BUYERS BY THE PERCENTAGE OF HOUSEHOLDS
FOLLOWING REPORTS ARE BASED ON: <ul><li>HIGH INDEXING MOSAIC LIFESTYLES LISTED IN SLIDE 9. </li></ul><ul><li>HOT ZIP CODES LISTED IN SLIDE 37. </li></ul><ul><li>AGE BY INDEX LISTED IN SLIDE 38. </li></ul><ul><li>HOUSEHOLD INCOME INDEX LISTED IN SLIDE 39. </li></ul><ul><li>WE HAVE CLEARLY IDENTIFIED 18,455 HOUSEHOLDS THAT ARE PERFECT CLONES OF BUCHANAN JENKINS 729 HYUNDAI SALES. </li></ul>