Download to read offline
Uploaded byMediaPost
Increasing Marketing Efficiency by Identifying Key Industry Trends
The document outlines five key industry trends impacting marketing in the automotive sector for 2020, including a plateau in market growth, increased loyalty among consumers, competition in the SUV segment, opportunities from discontinued brands, and an expansion of the luxury market. It highlights that loyalty is at an all-time high and suggests that brands must adapt to changing market dynamics to sustain sales. The data references consumer behavior and market forecasts to support these trends.
More Related Content
Similar to Increasing Marketing Efficiency by Identifying Key Industry Trends
Increasing Marketing Efficiency by Identifying Key Industry Trends
- 1. Confidential. © 2019IHS Markit®. All rights reserved. Industry Trends Impacting Marketing in 2020 Tom Libby, Automotive Loyalty Principal 5Trends
- 2. Confidential. © 2019IHS Markit®. All rights reserved. Industry has plateaued Brands can no longer rely on industry growth to drive sales – it must be earned 2 Trend #1
- 3. Confidential. © 2019IHS Markit®. All rights reserved. Recovery growth from 2008 recession has leveled off ~ 17 million 0 2 4 6 8 10 12 14 16 18 20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 3 USnewlightvehiclesales(millions) Source: IHS Markit 17.1M 16.8M
- 4. Confidential. © 2019IHS Markit®. All rights reserved. Loyalty at all-time high for both vehicle make and model Reaching buyers most likely to switch brands is key for growth 4 Trend #2
- 5. Confidential. © 2019IHS Markit®. All rights reserved. Both brand loyalty and model loyalty are at all-time highs 51.5% 52.9% 53.4% 53.6% 54.2% 25.1% 26.4% 26.5% 26.9% 27.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2015 1 2 3 4 2016 1 2 3 4 2017 1 2 3 4 2018 1 2 3 4 2019 1 2 3* 5 *Note: Q3 2019 includes July and August only. Make Loyalty Model Loyalty 0.6 points ~ 54,000 Sales
- 6. Confidential. © 2019IHS Markit®. All rights reserved. Nomads have the highest volume of shoppers and lowest brand loyalty 6 Return-to-market mix by household type 28.9% 52.9% 18.3% 0% 10% 20% 30% 40% 50% 60% Loyalist Nomad Super loyalist Make loyal rate 59.2% 46.1% 71.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Loyalist Nomad Super loyalist Time Period: August 2019 CYTD Loyalty leaders Ford ~ 77% Lincoln ~ 77% Subaru ~ 76% Mercedes ~ 75% Chevrolet ~ 73% Honda ~ 73%
- 7. Confidential. © 2019IHS Markit®. All rights reserved. SUVs will have more competition joining the segment…. …but the segment isn’t growing 7 Trend #3
- 8. Confidential. © 2019IHS Markit®. All rights reserved. SUV market share is plateauing 38.3% 39.1% 41.0% 42.8% 42.3% 41.6% 43.0% 44.5% 45.4% 45.5% 46.9% 47.2% 47.6% 46.8% 7.4% 9.4% 9.0% 5.9% 4.8% 2.8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2016 1 2 3 4 2017 1 2 3 4 2018 1 2 3 4 2019 1 2 SUV y/y % change 8 Registration type: Total SUVmarketshareandy/y%change
- 9. Confidential. © 2019IHS Markit®. All rights reserved. The number of SUV entries in the market will increase 53% by 2025 9 0 50 100 150 200 250 Pickup Car Utility vehicle 2005 2015 2018 2019 2025 Source: IHS Markit Forecasting Practice 112 109 129 135 206 70+ models added in 5 years
- 10. Confidential. © 2019IHS Markit®. All rights reserved. Over 47 million SUV-owning marketable households 10 5.8 mil. Luxury SUVs 41.3 mil SUVs 16.8 million of these marketable households display no brand loyalty Source:
- 11. Confidential. © 2019IHS Markit®. All rights reserved. Discontinued brands and vehicles create opportunity in a flat market 11 Trend #4
- 12. Confidential. © 2019IHS Markit®. All rights reserved. 1.4 million households owning discontinued-brands are in market for new vehicle 12 Source: Pontiac has highest OEM loyalty rate ~ 49%
- 13. Confidential. © 2019IHS Markit®. All rights reserved. Owners of recently discontinued sedans will be looking for a home Continental CT6 ELR XTS LaCrosse Volt 13 Discontinued sedans 200 300 Dart Fiesta Focus Taurus Cascada Regal Verano Caprice Cruze Impala Sonic SS ~ 6.5 million marketable households Source: ~ 44% loyalty to sedan market IHS Markit Loyalty Analytics August 2019 CYTD.
- 14. Confidential. © 2019IHS Markit®. All rights reserved. Luxury brands sales can come from outside traditional luxury segments 14 Trend #5
- 15. Confidential. © 2019IHS Markit®. All rights reserved. The luxury market will expand from 16 to 20 marques by 2021 15 Land Rover Lexus Lincoln Maserati Mercedes-Benz Porsche Tesla Volvo Acura Alfa Romeo Audi BMW Cadillac Genesis Infiniti Jaguar 16 luxury brands today Acura Alfa Romeo Audi BMW Cadillac Genesis Infiniti Jaguar Land Rover Lexus Lincoln Maserati Mercedes-Benz Porsche Tesla Volvo Lynk & Co. Lucid Rivian Polestar 20 luxury brands by 2021
- 16. Confidential. © 2019IHS Markit®. All rights reserved. ~ ½ of conquests by luxury brands come from nonluxury segments 42.1% 41.6% 42.8% 41.8% 38.8% 50.2% 48.9% 48.4% 47.5% 47.2% 0% 10% 20% 30% 40% 50% 60% 2015 2016 2017 2018 2019 Total defection, % to nonluxury Total conquest % from nonluxury 16 Source: IHS Markit Note: Data for all years are August CYTD.
- 17. Confidential. © 2019IHS Markit®. All rights reserved. Nonluxury owners are stepping up to their OEM luxury brand at low rates 6.1% 5.9% 4.8% 4.8% 4.1% 3.7% 3.0% 2.9% 2.6% 0.3% 0% 1% 2% 3% 4% 5% 6% 7% % of Volkswagen defections going to Audi % of Toyota defections going to Lexus % of Buick defections going to Cadillac % of Honda defections going to Acura % of GMC defections going to Cadillac % of Ford defections going to Lincoln % of Hyundai defections going to Genesis % of Chevrolet defections going to Cadillac % of Nissan defections going to Infiniti % of Kia defections going to Genesis 17 Source: IHS Markit Time period: August 2019 CYTD. Audi ▲ VW Acura ▲ Honda Cadillac ▲ GMC Lincoln ▲ Ford Genesis ▲ Hyundai Cadillac ▲ Chevrolet Infiniti ▲ Nissan Cadillac ▲ Buick Lexus ▲ Toyota Genesis ▲ Kia Only VW & Toyota over 5%
- 18. Confidential. © 2019IHS Markit®. All rights reserved. Leading luxury sedan households are increasingly acquiring another sedan 40% 45% 50% 55% 60% 2015 2016 2017 2018 2019 Audi Lexus MB BMW 18 Source: IHS Markit Note: Data are August CYTD for every year.
- 19. Confidential. © 2019IHS Markit®. All rights reserved. 19 Industry has plateaued 1 Loyalty is at all time high 2 SUVs will have more competition 3 Discontinued brands create opportunity 4 Luxury sales outside from non-luxury households 5
- 20. Thank you! Tom Libby AutomotiveLoyalty Principal