Dan Dembicki TVB April 20 2006

Slide1: 

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

Domestic Market Share Penetration (2000): 

Domestic Market Share Penetration (2000)

Domestic Market Share Penetration (2005): 

Domestic Market Share Penetration (2005)

European Market Share Penetration (2000): 

European Market Share Penetration (2000)

European Market Share Penetration (2005): 

European Market Share Penetration (2005)

Asian Market Share Penetration (2000): 

Asian Market Share Penetration (2000)

Asian Market Share Penetration (2005): 

Asian Market Share Penetration (2005)

Today: 

Today Factory & Dealer Shifts Consumer Shifts Staying Relevant

Framework: 

Framework Macro Issues: Profits * Demand * Global * Technology OEMs Buyers (Consumers) Dealers Media Relevancy in Purchase Cycle & Ownership Experience Accountability

“60 Second Cheat Sheet”: 

“60 Second Cheat Sheet” Profits Domestics: “Recovery” Asians: “Feelin’ Fine” Europeans: “It’s Not Necessarily Luxury Living” U.S. New Vehicle Demand 2005 3rd best year ever, but it doesn’t feel like it Crowded product lineup Used & Certified Used keeping buyers interested Global China, China, China… Technology Hybrids, E85, Fuel Cell Telematics

Factory & Dealer Shifts: 

Factory & Dealer Shifts

Top 10 Brand Leaders (2005 CYE, U.S.): 

Top 10 Brand Leaders (2005 CYE, U.S.) Top 10 accounts for nearly 75% of all new retail units Chrysler & Jeep are only domestics in this list who did not lose share from 2004

Slide13: 

Hyundai Customer Satisfaction & Loyalty 1996 to 2005 Hyundai Momentum Source: R. L. Polk & Co. Manufacturer Loyalty ExceleratorTM 1996 – 2004 Model Year; The University of Michigan, ACSI 1996 – 2005.

Auto Company Priorities: 

Auto Company Priorities GM: More non-traditional advertising approach planned Ford: Fewer nameplates get ad dollars, dealer bonuses & incentives Ford Division: F-Series, Fusion, Escape, Mustang Lincoln Division: Zephyr, Navigator Mercury Division: Milan, Mariner Chrysler Group: Jeep lineup expansion Heavy focus on production excellence

Auto Company Priorities: 

Auto Company Priorities Toyota & Nissan: Winning the “Heartland” Tundra / Titan Full-size Pickup Battle with Ford / Chevy Toyota in NASCAR Nextel Cup with Camry European brands: “Quiet confidence” Audi, Jaguar, Volvo, Volkswagen struggling BMW continues to set U.S. sales records Korean brands: Impatient and aggressive Leadership changes Last into U.S. market and taking full advantage of it

Auto Company Priorities: 

Auto Company Priorities Toyota, Nissan, Honda: “B-Segment”

3 Things You Must Do: 

3 Things You Must Do Knowledge is Power

Must Do #1: Know Regions Intimately: 

Must Do #1: Know Regions Intimately Auto Companies want to push marketing to the regions Regional marketing agencies are growing and dealers can choose who they want Promote ability to deliver on minority buyers Understand the personality of the DMAs

Orlando: Top Growth Brands**2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004: 

Orlando: Top Growth Brands* *2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004 Orlando Retail Growth: 9.6%

San Francisco: Top Growth Brands**2004 to 2005 CYE New Retail Registrations - Among Brands w/ 500+ Units in 2004: 

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%

Must Do #2: Talk About Loyalty: 

Must Do #2: Talk About Loyalty Ask if / how programming can support loyalty strategies Note where integrated programming ties to repeat buying behavior Take a stab at estimates on gains from growing loyalty *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 ExceleratorTM Assumed average MSRP of 2005 MYr. vehicles: $30,798 (Domestic), $43,303 (European), $27,079 (Asian). Average MSRPs provided by Edmunds.com

Must Do #3: Anticipate Auto Companies’Marketing Strategy : 

Must Do #3: Anticipate Auto Companies’ Marketing Strategy GM: “Incentive Insomnia”; Defend truck markets still Ford: “Red, White and Bold”  Be profitable in N. Am. DCX: Product and Styling Rule; Watch Jeep efforts Toyota: Hyundai is the new Honda to them Price may force their positioning on some entry models Nissan: Expect growing dependence on interactive and highly specialized, niche marketing Hyundai: Make friends with these franchises All: Compact car segment will draw from youth and mature buyers  find growing demand

Your Fit?: 

Your Fit? Macro Issues: Profits * Demand * Global * Technology OEMs Buyers (Consumers) Dealers Media Relevancy in Purchase Cycle & Ownership Experience Accountability