Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Total unit sales of new cars reach 6 million, a 20% decline from 2008
- Domestic unit sales outpace imports although both suffered in 2009
- March 2010 sales suggest slight rebound for domestic automakers
- General Motors, Toyota share nearly 40% of total U.S. car market
- Primarily older, wealthiest households purchased new the most…
- …but younger buyers are planning to purchase more over the next year
- Women are essential to new car buying
- In the past, consumers purchased four-door sedans the most…
- …today sedans still rule but consumers aspire to be more diverse in what they purchase
- Price and fuel economy is not enough to get high income earners to buy
- To sell consumers options, automakers will need to go past practicality
- Cut-rate financing, shorter loan terms trending to help drive up sales
- Obama administration raises fuel economy standards 40% for new cars
- U.S. new car dealership units plummet in 2009
- The showroom experience, test drive will matter most to high wage earners
Insights and Opportunities
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- Target women car buyers from marketing campaigns to the showroom
- Create nuanced messages emphasizing reliability following Toyota crisis
- Partner with neighborhood businesses to get new models on road
Inspire Insights
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- Trend: Rethinking Business, Capitalism and Consumerism
- Toyota crisis illustrates how to deal with responsibility
- Toyota bypassed crisis by taking responsibility and doing it credibly
Market Size
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- Key points
- Drop in car unit sales near doubles in 2009 from declines one year prior
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- Figure 1: Total U.S. car unit sales, 2003-09
- Domestic unit sales outpace imports although both suffered in 2009
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- Figure 2: Total U.S. unit car sales, by domestic and import, 2003-09
Segment Performance
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- Key points
- General Motors, Toyota share nearly 40% of total U.S. car market
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- Figure 3: Total North America car sales revenue, 2008 and 2009
Segment Performance—Domestic
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- Key points
- March 2010 sales suggest slight rebound for domestic automakers
- General Motors: Returning from bankruptcy to test coming Volt
- North American GM sales fell 35% in 2009
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- Figure 4: GM total North America automotive sales revenue, 2006-09
- Figure 5: GM North America vehicle unit car sales, 2006-09
- Ford Motor Company: Gaining market share through recession
- Ford revenues drop nearly 24% in 2008 from previous year
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- Figure 6: Ford total North America automotive sales revenue, 2006-09
- Figure 7: Ford U.S. vehicle unit car sales, 2005-09
- Chrysler: Struggling to re-freshen stale brands
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- Figure 8: Chrysler U.S. vehicle unit sales, 2005-09
Segment Performance—Imports
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- Key points
- Toyota Motor Co.
- Toyota’s unit car sales in U.S. dropped almost 20% from one year prior
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- Figure 9: Toyota motor sales U.S.A.’s U.S. vehicle unit sales, 2005-09
- Honda Motor Co.
- Competing against Toyota’s Prius with the Insight
- Honda’s unit car sales in U.S. dropped about 20% in 2009
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- Figure 10: Honda’s U.S. vehicle unit sales, 2005-09
- Nissan Motor Co.
- Nissan planning to mass-market electric cars
- Unit car sales in U.S. dropped 13% in 2009 compared to one year prior
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- Figure 11: Nissan North America’s U.S. vehicle unit sales, 2005-09
- Hyundai Motor Co.
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- Figure 12: Hyundai U.S. vehicle unit sales, 2005-09
Market Drivers
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- Cut-rate financing, shorter loan terms trending to help drive up sales
- Obama administration raises fuel economy standards 40% for new cars
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- Figure 13: Average fuel economy required under federal clean car standards, by vehicle, 2011-16
- Steel industry raising production costs, passing onto carmakers
- Recalls by top automotive manufacturers hurt public confidence in industry
Dealerships—Where Consumers Purchase New Cars
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- Key points
- After gradual declines, dealership revenues plummet starting in 2008
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- Figure 14: Total sales at new car dealerships, at current prices, 2004-09
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- Figure 15: Total sales at new car dealership, at inflation-adjusted prices, 2004-09
- U.S. new unit dealerships decrease the most in 2009 over the past 22 years
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- Figure 16: U.S. new car dealerships, 1987-2009
- Where consumers are purchasing new cars
- What it means:
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- Figure 17: Location of last car purchase, by gender, January 2010
- Large auto malls most preferred by respondents aged 18-34
- What it means:
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- Figure 18: Location of last car purchase, by age, January 2010
Dealerships—Factors Influencing Consumer Purchase
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- Key points
- Consumers want test drives to help determine vehicle purchasing
- What it means:
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- Figure 19: Factors influencing consumer purchasing, by gender, January 2010
- Incentives for purchasing making greatest impact on those aged 35-54
- What it means:
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- Figure 20: Factors influencing consumer purchasing, by age, January 2010
- Highest household earners most concerned about dealership aesthetic
- What it means:
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- Figure 21: Factors influencing consumer purchasing, by household income, January 2010
Brand Qualities
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- “Fiesta Movement” unique for hyping car’s launch, then continued impact
- Phase One: Brand exposure on the ground
- Phase Two: Brand exposure through multimedia interaction
- Ford also targeting Fiesta to black car buyers through branded site, contest
- Toyota adopts retro luxury approach in creating awareness around Avalon
Innovation and Innovators
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- Chevrolet re-styles economy cars to shift buyer perceptions
- GM launches test drive centers that allow buyers to drive the competition
- Ford and Microsoft partner to launch energy monitoring system in cars
- GM, Segway partner to create concept car tailored to curb city congestion
Advertising and Promotion
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- Companies embrace incentives to move inventory in a recession
- Integrated social media, online video campaigns becoming more essential
- Honda borrows underlying appeal of social media for broadcast ad
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- Figure 22: Honda ad, 2010
- Showing empathy—and confidence—in a recession follows fine line
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- Figure 23: Honda ad, 2010
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- Figure 24: Hyundai ad, 2010
- Jeep campaign stresses individuality through nuanced confidence
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- Figure 25: Chrysler Jeep ad, 2010
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- Figure 26: Chrysler Jeep ad, 2010
New Car Purchasing Participation
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- Key points
- A fifth of respondents purchased cars over the last 24 months
- What it means:
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- Figure 27: New car purchasing participation, by gender, age and household income, January 2010
- Consumers who are purchasing are replacing previous cars bought new
- What it means:
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- Figure 28: Vehicle replaced by new car purchase, by gender, January 2010
- Oldest respondents most likely to purchase new cars as a pattern
- What it means:
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- Figure 29: Vehicle replaced by new car purchase, by age, January 2010
Plans to Purchase a New Car
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- Key points
- A quarter of respondents unsure if they will purchase a new car this year
- What it means:
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- Figure 30: Plans to purchase a car, by gender, January 2010
- Respondents in oldest age group least likely to purchase new vehicles
- What it means:
- Only households earning $75K+ want to purchase new in coming year
- What it means:
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- Figure 32: Plans to purchase a car, by household income, January 2010
- Female respondents desire to purchase new at higher rate than men
- What it means:
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- Figure 33: Vehicle expected to replace, by gender, January 2010
- Starting at age 35, respondents likely to want to purchase new vehicles to replace new vehicles
- What it means:
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- Figure 34: Vehicle expected to replace, by age, January 2010
- The lowest-earning households most likely to desire purchasing new to replace a car purchased used
- What it means:
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- Figure 35: Vehicle expected to replace, by household income, January 2010
Type of New Car Consumers Last Purchased
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- Key points
- Sedans and SUVs most popular choices among those who bought new cars
- What it means:
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- Figure 36: Type of vehicle last purchased, by gender, January 2010
- Sedans most popular new vehicle last purchased across all age groups
- What it means:
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- Figure 37: Type of vehicle last purchased, by age, January 2010
- More than half of households earning $50K or less purchasing four-door sedans
- What it means:
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- Figure 38: Type of vehicle last purchased, by household income, January 2010
Type of New Car Consumers Plan to Purchase
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- Key points
- Majority of respondents plan to purchase sedans, but open to variety
- What it means:
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- Figure 39: Type of vehicle consumers plan to purchase, by gender, January 2010
- SUV/truck purchasing will appeal most to middle-age new car buyers
- What it means:
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- Figure 40: Type of vehicle consumers plan to purchase, by age, January 2010
- Highest household earners most likely purchasing sedans
- What it means:
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- Figure 41: Type of vehicle consumers plan to purchase, by household income, January 2010
Vehicle Components Influencing New Car Purchasing
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- Key points
- Price, comfort, fuel efficiency biggest considerations when buying new cars
- What it means:
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- Figure 42: Vehicle components influencing car purchasing, by gender, January 2010
- Price most significant for under-55s; over-55s most influenced by comfort
- What it means:
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- Figure 43: Vehicle components influencing car purchasing, by age, January 2010
- Households earning $100K+ most likely influenced by range of choices
- What it means:
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- Figure 44: Vehicle components influencing car purchasing, by household income, January 2010
Options Purchased At Time of New Car Purchase
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- Key points
- Most popular amenities included tinted windows and security systems
- What it means:
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- Figure 45: Options purchased at time of new car purchase, by gender, January 2010
- Respondents aged 35-54 splurged more on premium features
- What it means:
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- Figure 46: Options purchased at time of new car purchase, by age, January 2010
- Households earning $100K+ most likely to purchase leather seats, sunroof
- What it means:
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- Figure 47: Options purchased at time of new car purchase, by household income, January 2010
Race and Hispanic Origin
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- Key point
- Most respondents did not purchase a new car regardless of race
- What it means:
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- Figure 48: New car purchasing participation, by race, January 2010
Cluster Analysis
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- Opters
- Who they are
- Opportunity
- Comforters
- Who they are
- Opportunity
- Stockers
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 49: New car clusters, January 2010
- Figure 50: Incentive components influencing new car purchasing, by new car clusters, January 2010
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- Figure 51: Vehicle components influencing new car purchasing, by new car clusters, January 2010
- Figure 52: New car options purchased by consumers, by new car clusters, January 2010
- Cluster demographics
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- Figure 53: New car clusters, by gender, January 2010
- Figure 54: New car clusters, by age, January 2010
- Figure 55: New car clusters, by household income, January 2010
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- Figure 56: New car clusters, by Hispanic origin, January 2010
- Cluster methodology
Appendix: Other Useful Consumer Tables
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- Vehicle purchasing and household income
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- Figure 57: Vehicle replaced by new car purchase, by household income, January 2010
- Where consumers purchase new cars and household income
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- Figure 58: Location of last car purchase, by household income, January 2010
Appendix: Trade Associations
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