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3. Analysis of the African American
Consumer: Profile and Emerging Trends
Chrysler Brands and African
American Consumers
Marketing Plan
“We Are What We Drive”
2011-2013
3
4. Build a stronger brand image
with African Americans
Increase sales
Gain market share
4
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
8. 10%
18%
18%
7 million African Americans
54%
21 million African Americans
8
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. 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. 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
15. African Americans are twice as likely to trust
black 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. AM/FM Radio
18%
TV
36%
Magazines &
Others
20%
Internet
26%
80% of weekly media time is spent with TV, Radio or Internet
16
18. Lincoln Nissan Cadillac
9.83% 9.54% 9.44%
Kia Mitsubishi Chrysler
9.36% 9.29% 8.59%
Mercury Dodge Chevrolet
7.83% 7.72% 7.38%
Saturn
7.35%
*Jeep Ranked 22nd
18
19. 1 in 4 Affluent
African Americans
plan to buy a car
over the next 12
months
Meaningful
Many distinct
similarities and
segments
differences
One size doesn’t
fit all
Desire vehicles
Trend Setters that express
individuality and
success
Motivated by
quality and
selection
19
20. Stretched Black Black is Better
Sick and Stressed Straddlers 11%
8% 7%
Black Onliners
New 7%
Middle
Class
5% Boomer Blacks
6%
Family Struggles
Digital Networkers
10%
7%
Broadcast Blacks
Faith Fulfills 17% Connected Black
10% Teens
12%
20
21. Black consumers trust
Heterogeneous market
black media
Highly concentrated in
Family and friends are
the Southeast and in
opinion leaders
urban areas
Younger and spend Women influence all
more major purchases
Very Brand Conscious!
21
22. Overall Perceptions of Chrysler Brand
• Somewhat aware of the Brand
• Frequent discounts/deals
• Borderline prestigious
• Not fuel efficient
• Not exhilarating
22
23. Familiarity
• Somewhat
47%
Overall
Opinion of
Product
• Good
36%
Purchase
African American Intent
Perception • Probably
Not
37%
23
24. Overall Perception of Dodge/Ram Brand
• High brand awareness
• Rugged/Tough
• Somewhat dependable
• Reasonably priced
• Not fuel efficient
24
25. Familiarity
• Somewhat
familiar
42%
Overall Opinion of
Product
• Fair
42%
Purchase
African American Intent
Perception • Probably
not
34%
25
26. Overall Perception of Jeep Brand
• Somewhat aware of the brand
• Rugged/Tough
• Exhilarating
• Not fuel efficient
• Not prestigious
26
27. Familiarity
• Somewhat
familiar
41%
Overall Opinion of
Product
• Good
58%
Purchase
African American Intent
Perception • Definitely
not
48%
27
29. Strengths
• Dealers in key cities/states
Weaknesses
• Limited product appeal
• Limited product portfolio
• Limited ads that cater to African Americans
Opportunities
• 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” targeting
Threats
• Declining optimism towards economic recovery
• Certain segments have less income 29
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
32. Chrysler Group
Communicate
desired brand Create emotional
attributes to involvement
African American
consumers
Create brand Identify and
awareness at eliminate brand
young age bottlenecks
Align brand
attributes to African
American market 32
segments
33. Stretched Black Black is Better
Sick and Stressed Straddlers 11%
8% 7%
Black Onliners
New 7%
Middle
Class
5% Boomer Blacks
6%
Family Struggles
Digital Networkers
10%
7%
Broadcast Blacks
Faith Fulfills 17% Connected Black
10% Teens
12%
33
34. Profitable Target Segments
New Middle Boomer Stressed Black Black is
Faith Fulfills
Class Blacks Straddlers Better
Increased Sales and Revenue
34
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. • Promotion
• WSJ, NY Times, Black Enterprise, Business Week, News
Week
• Commercials that show successful confident black
individuals and families
New • HBCUs
Middle Supporting alumni events
Class • Excellent customer service, will assist in promoting referrals
• Placement
• Dealerships
• Internet shoppers 36
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/TV
Dodge 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. • Promotion
• Major church conferences and mega ministries
• Religious networks
Faith • BET, TBN, TCT Ex: Sunday’s Best
Fulfills
• Religious radio stations
• Placement
• Dealerships with a high percentage of black salesmen
38
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 online
Chrysler 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. • Promotion
• TV commercials and ads should link product to black heritage and
culture
• Promotions should emphasize commercials with black employees
Boomer 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. Vehicles with
better fuel
efficiency
Luxury Smaller and
sedans and mid-size
SUVs vehicles
Classy and
cute
Price points
Vehicles that between 12K-
are powerful 15K and
above 50K
41
43. Contest
Interactive Websites
Promotion with Black Athletes
43
44. • Population in South and Northeast
28.0 M
• Population 18 years old and above
18.9 M
• Population 18 years old and above that will
purchase a new vehicle in the next 12
3.8 M months (1 in 5)
44
45. 2011 2012 2013
Chrysler
106,296 111,610 122,771
Dodge
182,221 191,332 210,465
Jeep
37,963 39,861 43,847
Total Potential Units
326,479 342,803 377,084
45
46. $590
$100 Advertising cost
per vehicle to
find a new
Advertising cost per customer
vehicle to market to
existing customer
46
47. 2011 2012 2013
Potential Units Sold
326,479 342,803 377,084
Proposed Ad
Expenditure per Unit
590 590 590
Proposed Advertising
Expense
$ 192,622,841 $202,253,983 $222,479,382
47
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. $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. $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. 2011 2012 2013
In Millions
Current Est. Expense
$462.0 $456.0 $468.0
Proposed Expense for
African Americans
192.6 $202.3 $222.5
Additional Marketing
Expense 195.4 266.7 309.5
Total
$850.0 $925.0 $1,000.0
51
56. 1st – Chrysler’s marketing efforts
2nd –Chrysler brands should
should be geographically
appeal to African American
concentrated and focused on key
preferences and taste
African American segmentation
3rd –Chrysler should increase the
number of minority dealerships
56