Healthy Tension Figuring Out the Auto Scene  Dan Dembicki, Business Development Mgr. R. L. Polk & Co. © 2006 R. L. Polk & ...
Domestic Market Share Penetration (2000)
Domestic Market Share Penetration (2005)
European Market Share Penetration (2000)
European Market Share Penetration (2005)
Asian Market Share Penetration (2000)
Asian Market Share Penetration (2005)
Today Factory & Dealer Shifts Consumer Shifts Staying Relevant
Framework Macro Issues: Profits * Demand * Global * Technology OEMs Buyers (Consumers) Dealers Media Relevancy in Purchase...
“60 Second Cheat Sheet” <ul><li>Profits </li></ul><ul><ul><li>Domestics:  “Recovery” </li></ul></ul><ul><ul><li>Asians:  “...
Factory & Dealer Shifts
Top 10 Brand Leaders (2005 CYE, U.S.) <ul><li>Top 10 accounts for nearly 75% of all new retail units </li></ul><ul><li>Chr...
Hyundai Customer Satisfaction & Loyalty  1996 to 2005 Hyundai Momentum Source:  R. L. Polk & Co.  Manufacturer Loyalty Exc...
Auto Company Priorities <ul><li>GM:  More non-traditional advertising approach planned </li></ul><ul><li>Ford:  Fewer name...
Auto Company Priorities <ul><li>Toyota & Nissan:  Winning the “Heartland” </li></ul><ul><ul><li>Tundra / Titan Full-size P...
Auto Company Priorities <ul><li>Toyota, Nissan, Honda:  “B-Segment” </li></ul>Toyota Yaris Honda Fit Nissan Versa
3 Things You Must Do Knowledge is Power
Must Do #1:  Know Regions Intimately <ul><li>Auto Companies want to push marketing to the regions </li></ul><ul><li>Region...
Orlando:  Top Growth Brands* *2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004 Orlando Retai...
San Francisco:  Top Growth Brands* *2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004 San Fra...
Must Do #2:  Talk About Loyalty <ul><li>Ask if / how programming can support loyalty strategies </li></ul><ul><li>Note whe...
Must Do #3:  Anticipate Auto Companies’ Marketing Strategy  <ul><li>GM:  “Incentive Insomnia”; Defend truck markets still ...
Your Fit? Macro Issues: Profits * Demand * Global * Technology OEMs Buyers (Consumers) Dealers Media Relevancy in Purchase...
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  1. 1. Healthy Tension Figuring Out the Auto Scene Dan Dembicki, Business Development Mgr. R. L. Polk & Co. © 2006 R. L. Polk & Co. All rights reserved Television Bureau of Advertising Annual Marketing Conference Jacob Javits Convention Center New York, NY Thursday, April 20, 2006
  2. 2. Domestic Market Share Penetration (2000)
  3. 3. Domestic Market Share Penetration (2005)
  4. 4. European Market Share Penetration (2000)
  5. 5. European Market Share Penetration (2005)
  6. 6. Asian Market Share Penetration (2000)
  7. 7. Asian Market Share Penetration (2005)
  8. 8. Today Factory & Dealer Shifts Consumer Shifts Staying Relevant
  9. 9. Framework Macro Issues: Profits * Demand * Global * Technology OEMs Buyers (Consumers) Dealers Media Relevancy in Purchase Cycle & Ownership Experience Accountability
  10. 10. “60 Second Cheat Sheet” <ul><li>Profits </li></ul><ul><ul><li>Domestics: “Recovery” </li></ul></ul><ul><ul><li>Asians: “Feelin’ Fine” </li></ul></ul><ul><ul><li>Europeans: “It’s Not Necessarily Luxury Living” </li></ul></ul><ul><li>U.S. New Vehicle Demand </li></ul><ul><ul><li>2005 3 rd best year ever, but it doesn’t feel like it </li></ul></ul><ul><ul><li>Crowded product lineup </li></ul></ul><ul><ul><li>Used & Certified Used keeping buyers interested </li></ul></ul><ul><li>Global </li></ul><ul><ul><li>China, China, China… </li></ul></ul><ul><li>Technology </li></ul><ul><ul><li>Hybrids, E85, Fuel Cell </li></ul></ul><ul><ul><li>Telematics </li></ul></ul>
  11. 11. Factory & Dealer Shifts
  12. 12. Top 10 Brand Leaders (2005 CYE, U.S.) <ul><li>Top 10 accounts for nearly 75% of all new retail units </li></ul><ul><li>Chrysler & Jeep are only domestics in this list who did not lose share from 2004 </li></ul>Hyundai - 20 years of U.S. presence starting to payoff!
  13. 13. Hyundai Customer Satisfaction & Loyalty 1996 to 2005 Hyundai Momentum Source: R. L. Polk & Co. Manufacturer Loyalty Excelerator TM 1996 – 2004 Model Year; The University of Michigan, ACSI 1996 – 2005.
  14. 14. Auto Company Priorities <ul><li>GM: More non-traditional advertising approach planned </li></ul><ul><li>Ford: Fewer nameplates get ad dollars, dealer bonuses & incentives </li></ul><ul><ul><li>Ford Division: F-Series, Fusion, Escape, Mustang </li></ul></ul><ul><ul><li>Lincoln Division: Zephyr, Navigator </li></ul></ul><ul><ul><li>Mercury Division: Milan, Mariner </li></ul></ul><ul><li>Chrysler Group: </li></ul><ul><ul><li>Jeep lineup expansion </li></ul></ul><ul><ul><li>Heavy focus on production excellence </li></ul></ul>                                                         GM cuts $200 million from ad budget Automaker will concentrate on product launches (2/6/06)
  15. 15. Auto Company Priorities <ul><li>Toyota & Nissan: Winning the “Heartland” </li></ul><ul><ul><li>Tundra / Titan Full-size Pickup Battle with Ford / Chevy </li></ul></ul><ul><ul><li>Toyota in NASCAR Nextel Cup with Camry </li></ul></ul><ul><li>European brands: “Quiet confidence” </li></ul><ul><ul><li>Audi, Jaguar, Volvo, Volkswagen struggling </li></ul></ul><ul><ul><li>BMW continues to set U.S. sales records </li></ul></ul><ul><li>Korean brands: Impatient and aggressive </li></ul><ul><ul><li>Leadership changes </li></ul></ul><ul><ul><li>Last into U.S. market and taking full advantage of it </li></ul></ul>
  16. 16. Auto Company Priorities <ul><li>Toyota, Nissan, Honda: “B-Segment” </li></ul>Toyota Yaris Honda Fit Nissan Versa
  17. 17. 3 Things You Must Do Knowledge is Power
  18. 18. Must Do #1: Know Regions Intimately <ul><li>Auto Companies want to push marketing to the regions </li></ul><ul><li>Regional marketing agencies are growing and dealers can choose who they want </li></ul><ul><li>Promote ability to deliver on minority buyers </li></ul><ul><li>Understand the personality of the DMAs </li></ul>
  19. 19. Orlando: Top Growth Brands* *2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004 Orlando Retail Growth: 9.6% Yes 28.1 Subaru … Overall Brand 19.8 28.1 17.4 1.8 13.5 Change in Retail Volume (%) Yes Mercedes-Benz … European Brand Yes Subaru … Asian Brand Yes Dodge … DCX Brand Yes Ford ...Ford Brand Yes Cadillac … GM Brand Was Growth in Orlando Stronger than U.S.? Brand Top…
  20. 20. San Francisco: Top Growth Brands* *2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004 San Francisco Retail Growth: 0.8% No 44.5 HUMMER … Overall Brand 35.4 7.5 19.7 10.5 44.5 Change in Retail Volume (%) Yes Land Rover … European Brand No Toyota … Asian Brand Yes Chrysler … DCX Brand Yes Mercury ...Ford Brand No HUMMER … GM Brand Was Growth in San Francisco Stronger than U.S.? Brand Top…
  21. 21. Must Do #2: Talk About Loyalty <ul><li>Ask if / how programming can support loyalty strategies </li></ul><ul><li>Note where integrated programming ties to repeat buying behavior </li></ul><ul><li>Take a stab at estimates on gains from growing loyalty </li></ul>*Base: Vehicle Owning Households with a Retained Vehicle Acquired New Under 10 Years Old (10/03 – 9/04). R. L. Polk & Co. 2004 Model Year Manufacturer Loyalty Excelerator TM Assumed average MSRP of 2005 MYr. vehicles: $30,798 (Domestic), $43,303 (European), $27,079 (Asian). Average MSRPs provided by Edmunds.com 52.2% 30.5% 57.4% Overall Make Loyalty $7.7B $1.6B $19.6B Revenue from Loyal Owners ($) $7.1B 547,110 Toyota $3.6B 120,277 Volkswagen $14.6B 1,109,796 Ford Lost Revenue from Defectors ($) Number of Returning Owners* Make
  22. 22. Must Do #3: Anticipate Auto Companies’ Marketing Strategy <ul><li>GM: “Incentive Insomnia”; Defend truck markets still </li></ul><ul><li>Ford: “Red, White and Bold”  Be profitable in N. Am. </li></ul><ul><li>DCX: Product and Styling Rule; Watch Jeep efforts </li></ul><ul><li>Toyota: Hyundai is the new Honda to them </li></ul><ul><ul><li>Price may force their positioning on some entry models </li></ul></ul><ul><li>Nissan: Expect growing dependence on interactive and highly specialized, niche marketing </li></ul><ul><li>Hyundai: Make friends with these franchises </li></ul><ul><li>All: Compact car segment will draw from youth and mature buyers  find growing demand </li></ul>
  23. 23. Your Fit? Macro Issues: Profits * Demand * Global * Technology OEMs Buyers (Consumers) Dealers Media Relevancy in Purchase Cycle & Ownership Experience Accountability

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