The document discusses trends in the aftermarket industry in 2011. It notes that while economic conditions mirrored 2008 in some ways, consumer behavior differed as more consumers turned to do-it-for-me repairs out of necessity. The document reviews key economic indicators like GDP, miles driven, unemployment, and consumer credit that are impacting the aftermarket. It indicates that most factors are trending negative which has caused aftermarket sales to be lower than projected. It also discusses how consumers are keeping their vehicles longer, expanding the age range considered the "sweet spot" for aftermarket sales beyond 10 years old.
Wholesale and retail used vehicle prices have changed dramatically in recent years. Retail premiums, which represent the spread between wholesale and retail prices, provide insight into dealer profitability. This document analyzes retail premium trends between 2005-2015 using wholesale and retail transaction data. The key findings are:
1) Retail premiums fluctuated between 33-41% during this period, generally narrowing as wholesale prices increased more than retail prices.
2) Premiums decreased the most for mainstream vehicles like compacts and midsize cars, falling by up to 15 percentage points.
3) Premiums vary seasonally, with the smallest gap in Q1 and largest in Q4, though this seasonal effect has les
This document summarizes a report from NADA on used vehicle prices by age level. It finds that from 2007-2012, prices grew 18% for vehicles 1-3 years old but even more, 21.5% on average, for vehicles 4-10 years old. Recently, prices have softened 1.2% for vehicles under 4 years as new vehicle demand and incentives increase, drawing customers from used vehicles. However, older vehicle prices have remained steady as quality improvements make them more desirable and supply declines. NADA predicts prices will continue to diverge, with newer used vehicles softening 1.5% in 2013 while older models see 1.5% growth or remain flat.
icdp_managementbriefing100_futurenetworksSteve Young
The document discusses changes in customer behavior and its impact on the car distribution model. It finds that customers are increasingly researching and purchasing cars online rather than through dealerships. This shifts the traditional sales process and erodes dealer loyalty. It presents opportunities to better understand customers through data and enhance online experiences, but also challenges to adapt operations, people, and systems to the new digital landscape.
This document analyzes a study of 366 first-time car buyers ages 18-30 in the US. Some key findings:
- 35% said the internet was the most important information source when buying their first vehicle. Friends/family also had strong influence.
- Over 1/4 entered the market because their previous hand-me-down vehicle was no longer operable. Nearly 1/5 did so because they reached driving age.
- Top considerations for first-time buyers were monthly payment amount and dealer treatment. Half financed through dealerships and 1/3 through banks.
- Two-thirds had the final say in their vehicle selection and nearly half strongly felt they got the vehicle they wanted. Affordable
Strategic Review Of The Canadian Automotive Industrybwatson
The automotive sector is very important to the Canadian economy, directly employing over 700,000 workers. It contributes billions annually in revenue and trade. However, the Canadian automotive industry faces challenges in securing future investments as costs rise and global competition increases. The recent UAW agreements in the US may threaten Canadian and Mexican plants by prioritizing US jobs and investments going forward. Canada needs to improve its competitiveness, especially in the automotive supply sector, to have the best chance at securing future investments from automakers.
This document provides an analysis of Bajaj Finserv's lending schemes in comparison to its competitors. It outlines Bajaj Finserv's primary and secondary objectives, which are to compare its schemes to other lenders and analyze competitors' schemes in relation to Bajaj Finserv's products. The document also provides information on Bajaj Finserv's company profile and the various consumer finance, SME finance, and commercial lending schemes it offers.
The survey found that respondents were optimistic about the global economy and trade outlook for 2014. However, their top concerns were a potential slump in global demand and rising wages in major manufacturing countries like China. While many buyers and suppliers expected their costs to increase due to wage inflation, most planned to increase their spending and saw opportunities for growth. Vietnam and Africa emerged as new potential hotspots for sourcing, while issues like the Bangladesh factory collapse and US government shutdown did not appear to significantly impact trade patterns.
The car industry : Which nations are more inclined to purchasing a car online Sumit Roy
This document summarizes the key findings of an annual automotive study conducted in 8 countries. Some of the main findings include:
1) The vehicle buying cycle is shrinking significantly, with over half of consumers starting research within 2 months of purchase.
2) The sources of information used varies widely by country, requiring localized marketing approaches.
3) Consumers want both qualitative and quantitative vehicle information in one online location.
4) Consumers in developing markets like China and India have very exacting needs and expectations.
Wholesale and retail used vehicle prices have changed dramatically in recent years. Retail premiums, which represent the spread between wholesale and retail prices, provide insight into dealer profitability. This document analyzes retail premium trends between 2005-2015 using wholesale and retail transaction data. The key findings are:
1) Retail premiums fluctuated between 33-41% during this period, generally narrowing as wholesale prices increased more than retail prices.
2) Premiums decreased the most for mainstream vehicles like compacts and midsize cars, falling by up to 15 percentage points.
3) Premiums vary seasonally, with the smallest gap in Q1 and largest in Q4, though this seasonal effect has les
This document summarizes a report from NADA on used vehicle prices by age level. It finds that from 2007-2012, prices grew 18% for vehicles 1-3 years old but even more, 21.5% on average, for vehicles 4-10 years old. Recently, prices have softened 1.2% for vehicles under 4 years as new vehicle demand and incentives increase, drawing customers from used vehicles. However, older vehicle prices have remained steady as quality improvements make them more desirable and supply declines. NADA predicts prices will continue to diverge, with newer used vehicles softening 1.5% in 2013 while older models see 1.5% growth or remain flat.
icdp_managementbriefing100_futurenetworksSteve Young
The document discusses changes in customer behavior and its impact on the car distribution model. It finds that customers are increasingly researching and purchasing cars online rather than through dealerships. This shifts the traditional sales process and erodes dealer loyalty. It presents opportunities to better understand customers through data and enhance online experiences, but also challenges to adapt operations, people, and systems to the new digital landscape.
This document analyzes a study of 366 first-time car buyers ages 18-30 in the US. Some key findings:
- 35% said the internet was the most important information source when buying their first vehicle. Friends/family also had strong influence.
- Over 1/4 entered the market because their previous hand-me-down vehicle was no longer operable. Nearly 1/5 did so because they reached driving age.
- Top considerations for first-time buyers were monthly payment amount and dealer treatment. Half financed through dealerships and 1/3 through banks.
- Two-thirds had the final say in their vehicle selection and nearly half strongly felt they got the vehicle they wanted. Affordable
Strategic Review Of The Canadian Automotive Industrybwatson
The automotive sector is very important to the Canadian economy, directly employing over 700,000 workers. It contributes billions annually in revenue and trade. However, the Canadian automotive industry faces challenges in securing future investments as costs rise and global competition increases. The recent UAW agreements in the US may threaten Canadian and Mexican plants by prioritizing US jobs and investments going forward. Canada needs to improve its competitiveness, especially in the automotive supply sector, to have the best chance at securing future investments from automakers.
This document provides an analysis of Bajaj Finserv's lending schemes in comparison to its competitors. It outlines Bajaj Finserv's primary and secondary objectives, which are to compare its schemes to other lenders and analyze competitors' schemes in relation to Bajaj Finserv's products. The document also provides information on Bajaj Finserv's company profile and the various consumer finance, SME finance, and commercial lending schemes it offers.
The survey found that respondents were optimistic about the global economy and trade outlook for 2014. However, their top concerns were a potential slump in global demand and rising wages in major manufacturing countries like China. While many buyers and suppliers expected their costs to increase due to wage inflation, most planned to increase their spending and saw opportunities for growth. Vietnam and Africa emerged as new potential hotspots for sourcing, while issues like the Bangladesh factory collapse and US government shutdown did not appear to significantly impact trade patterns.
The car industry : Which nations are more inclined to purchasing a car online Sumit Roy
This document summarizes the key findings of an annual automotive study conducted in 8 countries. Some of the main findings include:
1) The vehicle buying cycle is shrinking significantly, with over half of consumers starting research within 2 months of purchase.
2) The sources of information used varies widely by country, requiring localized marketing approaches.
3) Consumers want both qualitative and quantitative vehicle information in one online location.
4) Consumers in developing markets like China and India have very exacting needs and expectations.
This document discusses Thor Industries, a manufacturer of recreational vehicles. Some key points:
- Thor is the world's largest manufacturer of RVs, with over $3 billion in annual sales.
- They have a diverse portfolio of towable and motorized RVs sold under multiple brands.
- Thor has a strong balance sheet and profitable growth strategy focused on innovation, acquisitions, and margin expansion.
- Industry conditions have improved in recent years with growing RV shipments and dealer inventory at appropriate levels for demand.
Thor Industries provides concise summaries in 3 sentences or less:
Thor Industries is a leading manufacturer of RVs with over $3 billion in annual sales. It acquired the assets of Livin' Lite, an innovative RV manufacturer, to expand into new markets. Thor also developed a 3-year strategic plan focused on growth and margin improvement through product innovation, capacity expansion, and improved quality and content.
Best Buy Co., Inc. Strategic Opportunities Discussion Materials provides an analysis of Best Buy's current position and strategic alternatives. It recommends that Best Buy be acquired by a consortium of private equity firms through a leveraged buyout. A buyout would allow Best Buy to address its underlying problems of poor customer retention, a weak online presence, and an inefficient distribution network without quarterly reporting pressures. An analysis values Best Buy at $9.7 billion, implying an enterprise value to EBITDA multiple of 4.1x based on comparable company analyses and discounted cash flow valuations.
CNW US retail automotive-summary-Sept-2012Brian Crotty
1. August new car sales were reported at 1.285 million units, up 19.85% from a year ago. However, this number included a significant increase in fleet/business orders that will likely not all be fulfilled. Adjusting for these, actual sales were up a solid but less impressive 15.25% to 1.2 million units.
2. Used vehicle sales in September are projected to be up over 8% from a year ago, with franchised dealer sales up 11.7% and independent dealer sales up 9.7% due to stabilizing inventory levels.
3. The presidential election is the top issue for consumers and views on the candidates' impact differ, with Romney seen as better
Social Trust Survey GfK Noblet Media CIS report 2011 UkraineMax Zhumenko
The report presents the results of annual Prosperous Consumers' Trust Survey (Ukraine), so-called PR & Communications Guide, conducted by Noblet Media CIS in partnership with GfK Ukraine
This document provides an integrated marketing communication plan for the Chevrolet Volt electric vehicle. It begins with an introduction and table of contents. The document then performs a situational analysis including a competitive analysis of other electric vehicles, opportunities for communicating to target markets, an analysis of the target market of millennials, and a SWOT analysis. It proposes strategies for market segmentation, establishing the Volt as its own brand, and allocating marketing expenditures. Finally, it outlines specific tactics for digital advertising, promotions, social media marketing, and public relations. The overarching goal is to increase awareness, market share, interest and sales of the Volt through consistent branding and promotional strategies.
The Internet is the most heavily used and influential media channel for new and used vehicle shoppers. 71% of buyers use the Internet, spending an average of 18-19 hours researching online and offline. 60% of research time (about 11 hours for used vehicles) is spent online, primarily on third-party sites rather than manufacturer or dealer sites. While the Internet heavily influences purchases, most buyers first contact dealers through walk-ins rather than online. The Internet provides pricing info and model comparisons to inform decisions.
Conn's stock is recommended as a buy with a 12-month price target of $50 per share, up from its current price of $25.53. Key factors supporting this recommendation include Conn's undervaluation relative to its peers and growth potential given signs of recovery in the US economy and consumer spending. While winter storms recently dampened sales, spending is expected to pick up again soon.
Connected consumers are driving changes in the automotive industry. They demand constant access to information from multiple sources, including online reviews and social media. Many are open to new purchasing options like buying cars online or using alternatives to ownership. As consumers become more familiar with connected vehicle technologies, their interest is growing in cars that enable services like safety, maintenance and customer care features. OEMs and dealers must adapt to meet the expectations of these always-connected shoppers by providing information across multiple channels and being responsive to their preferences for flexibility and connectivity throughout the car buying and ownership experience.
The document analyzes the consumer discretionary sector. It discusses that the sector consists of nonessential goods and services retailers, media companies, and automakers. It provides analysis of the sector weighting, performance from 2005-2015 and each industry. It also discusses Porter's Five Forces analysis and influence factors like the economy and consumer confidence. The recommendation is to go slightly underweight in the sector due to its late business cycle stage. Reasons given to invest include improving US economy, holiday spending, and solid industry outlook. Specific ETFs recommended are Vanguard Consumer Discretionary, First Trust Consumer Discretionary AlphaDEX, and PowerShares DWA Consumer Cyclicals Momentum Portfolio.
BDO Breakout Session: 2014 Texas A&M Retailing Summit Gordon Porter
Ted Vaughan and Bob Snape, President of BDO Capital Advisors, presented on the topic of strategic growth opportunities and M&A activity in the retail sector at the 2014 Texas A&M Retailing Summit.
This document provides an overview and literature review for a study analyzing the impact of credit availability and interest rates on consumer car expenditures using data from the Consumer Expenditure Survey. The study aims to test whether credit constraints had a stronger impact on car spending in the 2000s compared to the 1990s. Previous research found credit availability positively impacts car expenditures but produced mixed findings on interest rate effects. The study will use tobit and logit regressions to analyze expenditures from 1990-1999 and 2000-2013, comparing the effects of credit availability, interest rates, and other factors between the two decades. Consistent with other research, the study expects to find credit availability increases expenditures while the impact of interest rates is unclear and may differ between the decades
This document provides an overview and summary of the report "Alternative Payment Systems in the U.S., 2nd Edition". The report examines the size and growth of the alternative payments market in the context of the ecommerce and overall payments markets. It defines alternative payments and describes various types including peer-to-peer payments and e-wallets. The report provides market data on transaction volumes for different categories of alternative payments from 2006-2010 and forecasts growth to 2015. It also profiles major competitors and analyzes trends in the marketplace including the rise of mobile payments and changing consumer demographics and preferences.
The document discusses the inefficiency of metal currencies like pennies and nickels in the US economy. It costs more to produce a dollar's worth of pennies and nickels than their face value, while quarters and dimes are cheaper to produce. Hundreds of millions of coins are also taken out of circulation each year. Cash remains an important payment method for consumers of all ages, especially for transactions under $10. Younger consumers are more open to mobile payments. Retailers raise tens of millions annually through coin donation programs, showing consumers are willing to donate small change. Developing an API to convert fractional cash to donations or other payment methods could help address these inefficiencies.
This document profiles online shoppers and buyers in Canada. It finds that while online shopping was once mysterious, it is now the preferred method for many Canadians. Online buyers are most likely to be aged 25-34, college educated, and have middle incomes. The top concerns of online shoppers are returns policies, shipping costs, and ensuring product quality matches online descriptions. Retailers must provide seamless online experiences across all devices to meet rising customer expectations of convenience.
Top 8 Insights From the 2018 Beauty, Health & Wellness SurveyL.E.K. Consulting
The survey analyzed spending and preferences around nutritional supplements and skincare products. It found that 80% of consumers across generations are highly engaged with both categories, spending on average over $100 per month. Key insights include: (1) Amazon is the most preferred channel for supplements and second most for skincare; (2) consumers spend significantly on the other category as well, showing crossover opportunities; (3) while spending increases with age for supplements, skincare spending is higher for millennials. The survey suggests opportunities around personalization and developing the convenience store channel.
1) As costs increase and standard services decrease, airlines need to find ways to upgrade the travel experience without raising costs to avoid rising customer criticism.
2) Research shows traditional carriers like Delta and American have half as many brand advocates as alternative carriers, and most customers feel trapped flying them due to limited options.
3) JetBlue has redefined passenger expectations with a unique experience and has garnered as many advocates as popular brands like Target and Verizon. Virgin Airlines has also made a strong first impression despite limited customer experience.
Strategies to Help CPG Companies Win in Chinaaccenture
Accenture’s latest study reveals consumer insights and strategies that can help accelerate growth for CPG companies and Retailers in China.
The profit rates of CPG companies have been declining in China recently, but by understanding the changing Chinese consumer, and adjusting their strategies to best serve consumer needs, CPG companies can drive growth in the country.
For more information view us on http://www.accenture.com/ConsumerGoods
This study aimed to understand how macroeconomic indicators like consumer confidence, stock market values, interest rates, unemployment rates, and consumer credit impacted attendance and revenue at regional theme parks. Annual data from 2007-2012 for Cedar Fair and Six Flags theme parks was analyzed using multiple regression to see if correlations existed between the macroeconomic variables and attendance/revenue at a statistically significant level. The results could help theme parks predict consumer spending patterns during different economic conditions and improve strategic planning.
1) Technology and changing tastes/lifestyles have intensified competition in the retail industry. Retailers are using technology and data to improve customer service while also meeting demand for healthier products.
2) Economic pressures have divided customers into those seeking low prices and those willing to pay more for quality. Retailers are targeting both segments by developing own brands at different price points.
3) High information access and bargaining power has led to price wars, forcing down unit prices in many retail segments in the UK market. Retailers are focusing on convenience and value-added services to differentiate themselves.
Growing digitalization and technology advancements are reshaping the
global automobile industry. Digital Transformation acts as an enabler of
fundamental innovation and disruption in this sector by transforming it to a
digitally driven solutions focussed industry accelerated by the expectations
of the new generation customers.
This document summarizes key findings about automotive advertising spending in the United States from a report by Kantar Media. It finds that total US automotive ad spending hit $16.4 billion in 2013, the highest since 2007. Most of this spending is by car manufacturers, dealers, and dealer associations to sell vehicles. The amount spent per vehicle sold has remained relatively stable at around $1,000-$1,100 over the past decade. Advertising aims to convert the small portion of the population - around 4% - that is already considering buying a new vehicle, rather than create new demand. Growth in ad spending has tracked rising vehicle sales and been stimulated by the increasing number of new car models and redesigns introduced
This document discusses Thor Industries, a manufacturer of recreational vehicles. Some key points:
- Thor is the world's largest manufacturer of RVs, with over $3 billion in annual sales.
- They have a diverse portfolio of towable and motorized RVs sold under multiple brands.
- Thor has a strong balance sheet and profitable growth strategy focused on innovation, acquisitions, and margin expansion.
- Industry conditions have improved in recent years with growing RV shipments and dealer inventory at appropriate levels for demand.
Thor Industries provides concise summaries in 3 sentences or less:
Thor Industries is a leading manufacturer of RVs with over $3 billion in annual sales. It acquired the assets of Livin' Lite, an innovative RV manufacturer, to expand into new markets. Thor also developed a 3-year strategic plan focused on growth and margin improvement through product innovation, capacity expansion, and improved quality and content.
Best Buy Co., Inc. Strategic Opportunities Discussion Materials provides an analysis of Best Buy's current position and strategic alternatives. It recommends that Best Buy be acquired by a consortium of private equity firms through a leveraged buyout. A buyout would allow Best Buy to address its underlying problems of poor customer retention, a weak online presence, and an inefficient distribution network without quarterly reporting pressures. An analysis values Best Buy at $9.7 billion, implying an enterprise value to EBITDA multiple of 4.1x based on comparable company analyses and discounted cash flow valuations.
CNW US retail automotive-summary-Sept-2012Brian Crotty
1. August new car sales were reported at 1.285 million units, up 19.85% from a year ago. However, this number included a significant increase in fleet/business orders that will likely not all be fulfilled. Adjusting for these, actual sales were up a solid but less impressive 15.25% to 1.2 million units.
2. Used vehicle sales in September are projected to be up over 8% from a year ago, with franchised dealer sales up 11.7% and independent dealer sales up 9.7% due to stabilizing inventory levels.
3. The presidential election is the top issue for consumers and views on the candidates' impact differ, with Romney seen as better
Social Trust Survey GfK Noblet Media CIS report 2011 UkraineMax Zhumenko
The report presents the results of annual Prosperous Consumers' Trust Survey (Ukraine), so-called PR & Communications Guide, conducted by Noblet Media CIS in partnership with GfK Ukraine
This document provides an integrated marketing communication plan for the Chevrolet Volt electric vehicle. It begins with an introduction and table of contents. The document then performs a situational analysis including a competitive analysis of other electric vehicles, opportunities for communicating to target markets, an analysis of the target market of millennials, and a SWOT analysis. It proposes strategies for market segmentation, establishing the Volt as its own brand, and allocating marketing expenditures. Finally, it outlines specific tactics for digital advertising, promotions, social media marketing, and public relations. The overarching goal is to increase awareness, market share, interest and sales of the Volt through consistent branding and promotional strategies.
The Internet is the most heavily used and influential media channel for new and used vehicle shoppers. 71% of buyers use the Internet, spending an average of 18-19 hours researching online and offline. 60% of research time (about 11 hours for used vehicles) is spent online, primarily on third-party sites rather than manufacturer or dealer sites. While the Internet heavily influences purchases, most buyers first contact dealers through walk-ins rather than online. The Internet provides pricing info and model comparisons to inform decisions.
Conn's stock is recommended as a buy with a 12-month price target of $50 per share, up from its current price of $25.53. Key factors supporting this recommendation include Conn's undervaluation relative to its peers and growth potential given signs of recovery in the US economy and consumer spending. While winter storms recently dampened sales, spending is expected to pick up again soon.
Connected consumers are driving changes in the automotive industry. They demand constant access to information from multiple sources, including online reviews and social media. Many are open to new purchasing options like buying cars online or using alternatives to ownership. As consumers become more familiar with connected vehicle technologies, their interest is growing in cars that enable services like safety, maintenance and customer care features. OEMs and dealers must adapt to meet the expectations of these always-connected shoppers by providing information across multiple channels and being responsive to their preferences for flexibility and connectivity throughout the car buying and ownership experience.
The document analyzes the consumer discretionary sector. It discusses that the sector consists of nonessential goods and services retailers, media companies, and automakers. It provides analysis of the sector weighting, performance from 2005-2015 and each industry. It also discusses Porter's Five Forces analysis and influence factors like the economy and consumer confidence. The recommendation is to go slightly underweight in the sector due to its late business cycle stage. Reasons given to invest include improving US economy, holiday spending, and solid industry outlook. Specific ETFs recommended are Vanguard Consumer Discretionary, First Trust Consumer Discretionary AlphaDEX, and PowerShares DWA Consumer Cyclicals Momentum Portfolio.
BDO Breakout Session: 2014 Texas A&M Retailing Summit Gordon Porter
Ted Vaughan and Bob Snape, President of BDO Capital Advisors, presented on the topic of strategic growth opportunities and M&A activity in the retail sector at the 2014 Texas A&M Retailing Summit.
This document provides an overview and literature review for a study analyzing the impact of credit availability and interest rates on consumer car expenditures using data from the Consumer Expenditure Survey. The study aims to test whether credit constraints had a stronger impact on car spending in the 2000s compared to the 1990s. Previous research found credit availability positively impacts car expenditures but produced mixed findings on interest rate effects. The study will use tobit and logit regressions to analyze expenditures from 1990-1999 and 2000-2013, comparing the effects of credit availability, interest rates, and other factors between the two decades. Consistent with other research, the study expects to find credit availability increases expenditures while the impact of interest rates is unclear and may differ between the decades
This document provides an overview and summary of the report "Alternative Payment Systems in the U.S., 2nd Edition". The report examines the size and growth of the alternative payments market in the context of the ecommerce and overall payments markets. It defines alternative payments and describes various types including peer-to-peer payments and e-wallets. The report provides market data on transaction volumes for different categories of alternative payments from 2006-2010 and forecasts growth to 2015. It also profiles major competitors and analyzes trends in the marketplace including the rise of mobile payments and changing consumer demographics and preferences.
The document discusses the inefficiency of metal currencies like pennies and nickels in the US economy. It costs more to produce a dollar's worth of pennies and nickels than their face value, while quarters and dimes are cheaper to produce. Hundreds of millions of coins are also taken out of circulation each year. Cash remains an important payment method for consumers of all ages, especially for transactions under $10. Younger consumers are more open to mobile payments. Retailers raise tens of millions annually through coin donation programs, showing consumers are willing to donate small change. Developing an API to convert fractional cash to donations or other payment methods could help address these inefficiencies.
This document profiles online shoppers and buyers in Canada. It finds that while online shopping was once mysterious, it is now the preferred method for many Canadians. Online buyers are most likely to be aged 25-34, college educated, and have middle incomes. The top concerns of online shoppers are returns policies, shipping costs, and ensuring product quality matches online descriptions. Retailers must provide seamless online experiences across all devices to meet rising customer expectations of convenience.
Top 8 Insights From the 2018 Beauty, Health & Wellness SurveyL.E.K. Consulting
The survey analyzed spending and preferences around nutritional supplements and skincare products. It found that 80% of consumers across generations are highly engaged with both categories, spending on average over $100 per month. Key insights include: (1) Amazon is the most preferred channel for supplements and second most for skincare; (2) consumers spend significantly on the other category as well, showing crossover opportunities; (3) while spending increases with age for supplements, skincare spending is higher for millennials. The survey suggests opportunities around personalization and developing the convenience store channel.
1) As costs increase and standard services decrease, airlines need to find ways to upgrade the travel experience without raising costs to avoid rising customer criticism.
2) Research shows traditional carriers like Delta and American have half as many brand advocates as alternative carriers, and most customers feel trapped flying them due to limited options.
3) JetBlue has redefined passenger expectations with a unique experience and has garnered as many advocates as popular brands like Target and Verizon. Virgin Airlines has also made a strong first impression despite limited customer experience.
Strategies to Help CPG Companies Win in Chinaaccenture
Accenture’s latest study reveals consumer insights and strategies that can help accelerate growth for CPG companies and Retailers in China.
The profit rates of CPG companies have been declining in China recently, but by understanding the changing Chinese consumer, and adjusting their strategies to best serve consumer needs, CPG companies can drive growth in the country.
For more information view us on http://www.accenture.com/ConsumerGoods
This study aimed to understand how macroeconomic indicators like consumer confidence, stock market values, interest rates, unemployment rates, and consumer credit impacted attendance and revenue at regional theme parks. Annual data from 2007-2012 for Cedar Fair and Six Flags theme parks was analyzed using multiple regression to see if correlations existed between the macroeconomic variables and attendance/revenue at a statistically significant level. The results could help theme parks predict consumer spending patterns during different economic conditions and improve strategic planning.
1) Technology and changing tastes/lifestyles have intensified competition in the retail industry. Retailers are using technology and data to improve customer service while also meeting demand for healthier products.
2) Economic pressures have divided customers into those seeking low prices and those willing to pay more for quality. Retailers are targeting both segments by developing own brands at different price points.
3) High information access and bargaining power has led to price wars, forcing down unit prices in many retail segments in the UK market. Retailers are focusing on convenience and value-added services to differentiate themselves.
Growing digitalization and technology advancements are reshaping the
global automobile industry. Digital Transformation acts as an enabler of
fundamental innovation and disruption in this sector by transforming it to a
digitally driven solutions focussed industry accelerated by the expectations
of the new generation customers.
This document summarizes key findings about automotive advertising spending in the United States from a report by Kantar Media. It finds that total US automotive ad spending hit $16.4 billion in 2013, the highest since 2007. Most of this spending is by car manufacturers, dealers, and dealer associations to sell vehicles. The amount spent per vehicle sold has remained relatively stable at around $1,000-$1,100 over the past decade. Advertising aims to convert the small portion of the population - around 4% - that is already considering buying a new vehicle, rather than create new demand. Growth in ad spending has tracked rising vehicle sales and been stimulated by the increasing number of new car models and redesigns introduced
India Pre-owned Car Market Report - 2nd Edition (2017)tarunbhatia1990
The document provides an overview and insights into India's pre-owned car market in 2017. Some key points:
- The pre-owned car market size grew 9% to 3.6 million units in 2017, though demonetization reduced the market by 6%.
- The organized dealer segment grew fastest at 36% while the unorganized segment was flat. Overall dealer count was essentially flat.
- Dealer productivity increased 18% as dealers now sell an average of 7 units/month.
- Finance penetration increased, with 45% of financed cars in non-metros. Approximately 36,500 pre-owned cars are financed monthly.
- Reforms like demonetization and GST impacted prices and transaction
Mercer Capital's Value Focus: Auto Dealer Industry | Year-End 2018Mercer Capital
Mercer Capital's Auto Dealer Industry newsletter provides perspective on valuation issues. Each newsletter also includes macroeconomic trends, industry trends, and guideline public company metrics.
The document discusses the results of a survey of over 1,800 car owners in India regarding their vehicle purchase considerations and brand perceptions. Some key findings:
- For first-time buyers, needing a vehicle for their family's use was the top purchase driver, rather than brand image. Repeat buyers prioritized new technology.
- Both first-time and repeat buyers typically consider 3-5 brands before purchasing. SUV/van owners consider more brands than those looking at hatchbacks/sedans.
- Rural buyers tend to consider fewer brands than urban or suburban buyers due to fewer options and price points available.
- On average, buyers keep their vehicle for 6-7 years or until it reaches 50,
Deloitte Report : Driving through the consumer’s mind – Considerations for Ca...Vikrant Mudaliar
The document discusses the results of a survey of over 1,800 car owners in India regarding their vehicle purchase considerations and brand perceptions. Some key findings:
- For first-time buyers, needing a vehicle for their family's use was the top purchase driver, rather than brand image. Repeat buyers prioritized new technology.
- Both first-time and repeat buyers typically consider 3-5 brands. SUV/van owners consider more brands than those looking at hatchbacks/sedans.
- Attributes like reliability, dealership services, and resale value are important filters for both buyer types when choosing a brand.
- On average, respondents keep a vehicle for 6-7 years and drive it 50,
WHAT IS THE COX AUTOMOTIVE INSIGHT REPORT?
How will the new and used car markets perform during the rest of this year? What will become the future fuel of choice? What are the barriers as we drive towards Mobility as a Service (MaaS)?
In this first annual Insight Report from Cox Automotive and Grant Thornton, we go beyond the headlines to provide our view on the future of our market, and what it means for us all.
The survey of auto executives found that over 90% viewed the state of the U.S. automotive industry as better than the previous year due to a return to fundamentals. While projected auto sales of 13.7 million for 2012 are below pre-crisis levels, executives are optimistic that restructuring has improved profitability even at lower volumes. The survey also showed uncertainty around emerging technologies and the need to strengthen global supply chains to prepare for potential disruptions.
See the Roland Berger Strategy Consultants (http://www.rolandberger.us/) 2014 study on The Next Challenge Of The US Auto Industry.
http://tinyurl.com/NPAutomotive
http://www.linkedin.com/in/TonyLy
https://www.facebook.com/MechanicalMarketer
The document discusses the history of incentive use in the automotive industry from the 1990s to present. It notes that incentive spending grew dramatically from the mid-1990s to 2004, helping new vehicle sales reach record highs but also depressing used vehicle prices. Manufacturers began reducing incentive use in the mid-2000s in response to negative impacts on used vehicle values. Incentive spending has declined since but risks rising again with increased production capacity if sales growth levels off.
This document summarizes a whitepaper on the global hybrid car market. It discusses how hybrid car sales have grown from 2.5 million units in 2011 to an estimated 3 million units in 2013 and are forecast to reach 4.72 million units by 2017. The US, Japan, and Europe currently make up the largest markets. Toyota leads the industry with 67% market share followed by Ford. Factors driving hybrid market growth include concerns over fuel consumption, emissions, and volatile oil prices. Challenges include higher hybrid costs and competition from electric and other alternative fuel vehicles.
Philippine Automotive Industry Insights | AutoDeal | Q3 2018 Christopher Franks
The document provides insights from AutoDeal, the Philippines' leading online automotive marketplace, on key metrics and trends in the automotive industry in Q3 2018. Some highlights include:
- Website visits, quotes/test drives, and conversations were up year-over-year, while confirmed purchases increased 1% from Q2 2018.
- Inquiries were dominated by Toyota, Ford, and Mitsubishi models and came primarily from mobile devices.
- Purchase intent has slowed compared to 2017, suggesting longer buying cycles, emphasizing the importance of lead retention.
- The top locations for leads were Metro Manila and key Luzon cities like Quezon City, Angeles City, and Bacoor City
This whitepaper provides an overview and analysis of the global hybrid car market. It finds that hybrid car sales were approximately 2.5 million units in 2011 and are estimated to reach around 3 million units by the end of 2013. The market is anticipated to grow at a CAGR of 11.5% from 2013 to 2017. The US currently leads the market with around half of global sales, followed by Japan and Europe. Toyota is the leading manufacturer with 67% market share. Factors such as rising oil prices, environmental concerns, and government incentives are fueling market growth, though high hybrid vehicle costs and competition from electric cars present challenges.
Cox Automotive Market Insight Overview April 2019 Philip Nothard
“Welcome to the latest Market Insight Overview from Cox Automotive.
Every month, we provide automotive industry professionals with unique intelligence, supported by invaluable insight and market sentiment from our customers, that goes beyond the headlines to uncover what’s driving the new and used car sectors from wholesale, retail and funding perspectives. We hope our holistic analysis arms you with the essential knowledge needed to navigate the fast-paced, ever-changing automotive market.”
PHILIP NOTHARD Customer Insight & Strategy Director - UK
The automotive aftermarket industry in the US is poised for steady growth driven by several factors:
- The average age of vehicles on the road is at an all-time high of 11.5 years, creating more demand for repairs and replacements.
- The total number of vehicles in operation continues to rise and is expected to grow 5% in the next five years.
- Vehicles are becoming more complex with advanced technologies, leading to more expensive repairs that many owners turn to professionals for.
- Online sales of auto parts are a growing segment, estimated at $6 billion currently and projected to reach $16.6 billion by 2020.
- The industry is consolidating through mergers and acquisitions as
Digital Marketing Plan for Euro Car Parts Ltd.
This plan was an assigment for my Professional Diploma in Digital Marketing in the IDM (Institute of Direct and Digital Marketing).
Please be aware: this is not a real plan, it does not contain any company's real information.
Automotive Aftermarket in North America to 2016ReportsnReports
This report analyzes the $85.5 billion automotive aftermarket in North America projected to 2016. It provides historical data from 2001-2011 and forecasts by country, product, and service provider for the US, Canada and Mexico markets. The fastest growing segment will be electronic products, fueled by advanced vehicle systems. Mechanical products like filters, brake parts and engines will remain the largest segment. Professional service providers will account for 85% of sales due to increasing vehicle complexity. The report profiles 44 industry competitors and provides insights on market drivers and trends in vehicle quality, technology, regulations and international trade.
Automotive lenders are increasingly offering subprime auto loans again as credit-challenged consumers' access to credit expands. Some analysts believe this trend will continue to boost auto sales as the recession's effects gradually fade. However, lenders must ensure loan quality is maintained, as aggressive subprime lending practices could lead to increased defaults if borrowers' ability to pay is overestimated. Adopting GPS tracking systems allows lenders to better monitor collateral, identify poorly performing loans, and take precautions to safeguard against future economic turbulence.
1) Over the past 10 years, Capgemini has surveyed almost 42,000 consumers and automotive companies across 15 countries to track how the automotive industry and consumer vehicle purchasing behaviors have changed.
2) A key finding is that consumer use of the internet as a vehicle research tool has increased dramatically over the past decade, rising from 11% of consumers in 1999 to 88% in the current report. This has shifted the balance of power from dealers and manufacturers to more informed consumers.
3) While price and product information have consistently been the most important internet research factors for consumers, their increased online research has also boosted expectations for timely responses from dealers and manufacturers.
3. Read Aftermarket Perspectives online at npd.com/lps/Auto_Brief
Greetings from David Portalatin
The big question in 2011 has been, “What’s going on with the economy, and what does it
mean for the aftermarket?” Throughout the year we looked at how factors like high gas
prices and miles driven affected aftermarket sales. While many economic conditions have
started to mirror the events of 2008, we have noticed some key differences in consumer
behavior. For instance, more consumers have turned to DIFM this year than in the past few
years as DIFM has become more of a “must.”
You can learn more in this booklet about the trends that shaped the aftermarket this year
and those that will influence next year’s sales. It is compiled from of past issues of After-
market Perspectives, a monthly communication from The NPD Group. Each edition focuses
on our data and my perspectives on the industry issues that matter to your business right
now. Aftermarket Perspectives is designed to help you better understand your consumers and
their needs and uncover opportunities — especially in these economically volatile times.
As always, we’re pleased to bring you the information you need to succeed in today’s
environment. I hope you find these articles helpful. Please contact me if you’d like to learn
more, or visit npd.com/lps/Auto_Brief. The site is updated each month with a new article.
David Portalatin
Director of Industry Analysis
The NPD Group
713-576-5126
david.portalatin@npd.com
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Table of Contents
Are Things Sounding Familiar? ........................................Page 5
Aftermarket-Friendly Vehicles ..........................................Page 7
DIFM Picks Up .................................................................Page 9
Industry Expertise/About NPD..........................................Page 11
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5. Read Aftermarket Perspectives online at npd.com/lps/Auto_Brief
Are Thing Sounding Familiar?
As talk in economic circles heats up concerning the prospects of a double-dip recession,
questions arise about how such a scenario could affect the aftermarket. Fortunately, we know
how consumers responded to the economic downturn in 2008, and we can look at current
trends for any similarities. The overriding change in consumer behavior when the recession hit was
a notable deferral of all spending. In 2008, consumers reported they postponed approximately
one-third of all needed vehicle maintenance and repair. As a result, unit sales volumes in
the auto parts channel declined nearly 8 percent. By mid-2009, in a more stable economy,
consumers embraced the reality that spending to keep their old cars running smoothly was
the most economically responsible alternative, ushering in the robust aftermarket sales of the
past 24 months. But now, are high gas prices and persistent economic challenges pushing
consumers back into deferral mode?
Updating key market drivers
To begin to evaluate the prospects of an aftermarket double-dip, let’s take a look at the macroeco-
nomic factors most relevant to the aftermarket, as determined by our 2011 forecast model:
■ GDP — Real GDP in the second quarter rose 1 percent (this is the revised second estimate).
While this number signals some economic growth, it is fairly weak. An economy with a
more robust growth rate would provide a better environment for stronger after market
sales.
■ Miles Driven — Gasoline prices remain well above the critical $3.00 per gallon mark,
and in response, consumers are cutting back on driving. Through June, total miles driven
were down 15.5 billion miles on the year, or 1.1 percent. Based on gasoline sales indicators,
we don’t expect July or August results to show improvement. Fewer miles translates into
less wear-and-tear and longer maintenance intervals, and therefore has a negative effect
on the aftermarket.
■ Unemployment — Unemployment is a double-edged sword for the aftermarket. First,
rising unemployment constrains consumers’ ability to spend. Second, it takes people out of
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the daily commute, reducing miles driven. The unemployment rate in July was 9.1 percent,
showing no lasting improvement in 2011. There are still 6 million fewer employed persons
in the U.S. than there were in July 2008. Furthermore, the average number of weeks un-
employed rose to 40 – the highest in modern history.
■ Revolving Credit — After paying down $200 billion in debt following the recession,
a new frugality emerged where consumers were motivated to take care of their cars to
avoid incurring more debt for new vehicles. However, recent economic conditions have
consumers once again relying on credit cards. Revolving credit debt in June is up 10 bil-
lion dollars (1.3 percent) since April. If the monthly household budget gets “maxed out,”
consumers may be pushed back into deferral mode.
■ CPI Used Cars — Consumer attitudes have changed about how to define an “old”
car. This means more and more consumers are content to drive older vehicles and are
revaluing used cars. The CPI for used vehicles reflects this attitude, which is favorable to
the aftermarket and continued to rise with an index value of 152 in July, up from 144 in
January.
What does in all mean?
Of the five factors driving aftermarket sales, three are trending negative. We’ll call GDP
neutral and the used car value positive, as it reflects a continued desire to assign higher
value to aging vehicles. As a result, it is not surprising that auto parts channel unit volumes
are trending below the level we projected nearly one year ago. At last year’s AAPEX show,
we announced a 2011 forecast of -0.9 percent in unit volume versus year-ago. Year-to-date
through July, unit volume was down 1.7 percent versus the same period in 2010. In part, the
strong performance in 2010 creates a difficult hurdle for positive growth in 2011. But thanks
to the forecast modeling done last year, we have a rational basis for better understanding
why the market is trending lower. We will revise and update the forecast model based on all
of this new information. You’ll see the results, along with our 2012 forecast, here at AAPEX.
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7. Read Aftermarket Perspectives online at npd.com/lps/Auto_Brief
Aftermarket-Friendly Vehicles
Most in the automotive aftermarket have long understood that there is a typical vehicle
profile that is friendly to the aftermarket. Such vehicles are likely no longer under the original
manufacturer’s warranty and are beginning to show some normal wear-and-tear with age
and usage. How to precisely define this vehicle profile is the subject of some discussion, but
generally the conversation centers around a vehicle age range that begins at about four years
after purchase (when most warranties begin to run out) and ends at around 10 years.
In the past, conventional wisdom held that spending on vehicles more than 10 years old will
wane as these cars lose value and consumers begin to look toward replacement. The vehicle
population that fits into this range has often been referred to as “the sweet spot.” Borrowed
from the sports world, this term refers to that place right in the center of the barrel of a base-
ball bat or the face of a golf club. When you hit the sweet spot, the contact feels pure, and
the ball seems to effortlessly spring to life and take flight. For aftermarket manufacturers and
retailers, hitting the vehicle sweet spot is the key to a home run of revenue.
A growing “sweet spot”
For some time now, we have monitored the lingering effects of the recession on consumer
attitudes and behaviors. A new frugality among many consumers has them holding on to cars
longer than before and seeing value in the necessary expenditures on repair and maintenance
required to keep older cars going. This new vehicle mindset calls for some closer examination
and re-evaluation of how we define the sweet spot. Our Car Care Track® captures automotive
purchase information from a nationally representative sample of approximately 72,000 vehicle
owners annually. Comparing pre- and post-recession behavior allows us to gain insight into
emerging new behaviors and opportunities.
Automotive Purchasers With Vehicles More Than 10 Years Old
43%
37%
2005 2010
Source: The NPD Group/Car Care Track /December 2010
®
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While it is true that average annual expenditures on a vehicle tend to peak at around 10 years
of age, Car Care Track provides evidence that there may be a growing opportunity among
owners of cars over 10 years old. Of those surveyed for Car Care Track, 43 percent of consumer
panelists said they had a vehicle more than 10 years old in 2010. In 2005, before the recession
and the decline in new car sales, only 37 percent of respondents had cars over 10 years old. The
spending curve in 2010 peaked at $633 in annual expenditures for 2001 model year vehicles. But
although the curve declines gradually at this point, spending on older cars remains relatively
high. In fact, spending on vehicles 10 years and older is an average of 10 percent higher than
spending on newer vehicles. So the vehicle population is aging, and consumers are demon-
strating a willingness to continue to spend on these vehicles.
Annual Expenditures by Vehicle Age
$700
2005 2010
$600
Annual Expenditure
$500
$400
$300
$200
$100
$0
20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Vehicle Age in Years
Source: The NPD Group/Car Care Track®/December 2010
Responding to Change
While these new trends in consumer behavior are clearly positive for the aftermarket, retailers
and manufacturers will need to stay focused on the trend to maximize the opportunity. Here
are some questions to ask in considering how best to benefit from older vehicles:
■ Does my assortment reflect these new vehicle realities?
■ Does my value proposition appeal to the consumer trying to extend the life of an aging vehicle?
■ What needs can we anticipate owners of older vehicles will have?
The surge in aftermarket-friendly vehicles represents a great opportunity for growth, and a clear
understanding of the consumers who own them will help marketers benefit from this trend.
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9. Read Aftermarket Perspectives online at npd.com/lps/Auto_Brief
Do-It-For-Me Automotive Service Picks Up Steam
New car sales in the U.S. are on the rise. Through the first six months of 2011, light vehicle
unit sales were up nearly 13 percent over last year. Even though this increase is significant, it
only translates into about 6.3 million new cars, trucks, and SUVs sold. That puts us at a rate
still well below pre-recession levels, meaning most Americans remain focused on repairing
and maintaining the nation’s aging vehicle fleet.
With consumers still largely focused on spending only on those things they absolutely need,
many are finding professional automotive service among the “must” expenditures in the
family budget. To help you get a better handle on where America is going for do-it-for-me
(DIFM) automotive services, we’ve just released a special report: Consumers Shifting Gears to
DIFM Outlets. It drills into Car Care Track® (our monthly consumer tracker of automotive purchase
behavior) data, complemented by insight from a customized consumer survey on the topic.
This timely study, fielded in mid-June, found 68 percent of today’s drivers said they will have
all automotive service and repair performed by a professional. For you, that means it is critically
important to understand the changing behaviors and motivations of DIFM consumers to
make the most of this opportunity.
Consumers shifting gears on service outlets
The comprehensive report contains more than 100 pages of charts and expert analysis covering
every aspect of the DIFM marketplace. Among the findings is that many consumers’ outlet
behavior is shifting. Reliable personal transportation is a must-have, yet consumers are still being
squeezed by rising unemployment, high gas prices, and price inflation in many automotive
categories. In the tension between the need for transportation and the economic pain consumers
are feeling, the value equation is being closely scrutinized. For some consumers, this means
making new choices about where to have their vehicles serviced and why.
In this environment, tire stores and car dealers are two segments that have gained momentum.
Dealerships have likely benefited from the uptick in new unit sales, as some new car owners are
returning to the dealer for initial services. But a closer look reveals these two distinct outlets
may have something in common contributing to their success. Both appear to be perceived
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by consumers as bringing more coupons and promotional offers to the table, compared to
other outlets. When looking at what attributes of the service/repair occasion consumers were
most satisfied with, those at dealerships and tire stores were much more likely to say they
were extremely satisfied with a coupon or special offer. While it is important to acknowledge
that overall value can be derived from delivering on a variety of attributes including, trust,
convenience, knowledge, price and others, it appears these outlets might be leveraging cou-
pons and specials to appeal to a price-conscious and value-driven consumer.
Customer Satisfaction Index
Coupons or special offers
140
127
120 117
56 64 98
100
80
60
Independent Car Discount/ Quick Lube Tire Store
Repair Shops Dealership Mass Merchant
Source: The NPD Group/Consumers Shifting Gears to DIFM Outlets/June 2011
Positioning for success in the DIFM market
Understanding where consumers perceive value in the marketplace and uncovering what relevant
attributes play to your strengths is critical to creating a position that will be attractive in
today’s environment. Knowing who is winning in the market and how they are doing it will
allow both suppliers and installers to collaborate to craft winning strategies. Key questions for
a winning DIFM strategy include:
■ How is the consumer defining value, and is that changing?
■ What outlets offer the best opportunities for growth?
■ What attributes of my brand, product, or service model are most relevant to consumers in
the current economic environment?
Among the many truths reinforced in these turbulent times is that change is inevitable. Taking the
consumer’s pulse will help you stay abreast of changes in attitudes and behaviors and keep
your offer and message relevant.
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Industry Expertise
The NPD Group is the premium provider of consumer and retail information for the North
American automotive aftermarket, petroleum marketing, and convenience retailing industries.
NPD expertise and data provide industry leaders with essential market information to assist in
making more effective business decisions. NPD is uniquely qualified to help marketers apply
information to address key marketplace issues from multiple perspectives, based on more
than 20 years of experience in these industries.
NPD’s diverse portfolio of services includes consumer panel tracking and national and Store
Level retail point-of-sale (POS) tracking. Specifically, NPD information supports benchmarking,
competitive analysis, assortment and product planning, and identification of new channel
opportunities.
About The NPD Group
The NPD Group is the leading provider of reliable and comprehensive consumer and retail
information for a wide range of industries. Today, more than 1,800 manufacturers, retailers,
and service companies rely on NPD to help them drive critical business decisions at the global,
national, and local market levels. NPD helps our clients to identify new business opportunities
and guide product development, marketing, sales, merchandising, and other functions. Infor-
mation is available for the following industry sectors: automotive, beauty, commercial technol-
ogy, consumer technology, entertainment, fashion, food and beverage, foodservice, home,
office supplies, software, sports, toys, and wireless. For more information, visit npd.com
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For more information, contact The NPD Group at
866-444-1411 or email contactnpd@npd.com.
npd.com