Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- U.S. new car dealership units in freefall, suffering severe unit losses in 2009
- New car dealerships expanding service, repair component of businesses
- Independent repair shop repairs cost significantly less than at dealerships
- AutoZone dominates aftermarket auto parts market
- Increase in vehicle recalls generates more activity for service operators
- Fewer highway miles travelled may create less reliance on maintenance
- Car sales plummet as consumers maintain older cars, benefiting service
- Consumer survey findings
Insights and Opportunities
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- Pursue former or current Toyota owners by stressing quality control
- Use text messaging to connect with customers when vehicles in shop
- Shift marketing of new models from engine power to electronic capability
Inspire Insights
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- Trend: Simplicity and Convenience
- Convenience means far more ease and portability
- Service outlets will benefit by allowing convenience to start from home
Service Performance
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- Key points
- Male respondents more likely than females to repair or service own vehicle
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- Figure 1: Where vehicles are serviced/repaired, by gender, Nov-Dec. 2009
- Respondents under age 45 most likely to repair, service own vehicles
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- Figure 2: Where vehicles are serviced/repaired, by age, Nov-Dec. 2009
- Automotive dealerships most popular for service among households earning $100K+
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- Figure 3: Where vehicles are serviced/repaired, by household income, Nov-Dec. 2009
Service Performance—New Car Dealerships
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- Key points
- U.S. new car dealership units in freefall, suffering worst unit losses in 2009
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- Figure 4: Number of U.S. new car dealerships, 2000-09
- New car dealerships expanding service, repair component of businesses
Service Performance—Independent Shops
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- Key points
- Independent repair shop repairs cost significantly less than at dealerships
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- Figure 5: Consumer satisfaction with dealership service departments, non-dealership shops, 2004-08*
Service Performance—Chains
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- Key points
- Overview
- Walmart Tire & Lube Express
- Goodyear Gemini Automotive Care
- Firestone Complete Auto Care
- Midas Auto Service
- Sears Auto Center
- Meineke also approaching rejected dealerships
- Top U.S. oil change-plus chains
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- Figure 6: Top 50 U.S. oil change-plus chains, by store units, March 2009
Aftermarket Retail Chains
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- Key points
- AutoZone dominates aftermarket auto parts market
- Top aftermarket chain outlets
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- Figure 7: Top 20 U.S. aftermarket chain outlets, companies by store count, 2009
- Figure 8: Top 20 U.S. aftermarket chain outlets by total store count, 2004-09
Do-it-Yourself
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- Key points
- Majority of respondents not working on cars; men are most likely to DIY
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- Figure 9: Home repair/service choice, by gender, Nov-Dec., 2009
- Batteries, filters are the most commonly purchased replacement parts
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- Figure 10: Vehicle components repaired/serviced at home, by gender, Nov-Dec., 2009
- Operators can sell expertise to budget-minded, DIY consumers
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- Figure 11: AutoZone ad, 2010
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- Figure 12: NAPA Auto Parts Stores, 2010
Market Drivers
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- Right to Repair Act poised to give independent operators repair advantage
- Increase in vehicle recalls generates more activity for service operators
- Fewer highway miles travelled may create less reliance on maintenance
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- Figure 13: Consumer vehicle miles traveled, all U.S. roads and streets, 1998-2008
- Car sales plummet as consumers maintain older cars, benefiting service
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- Figure 14: Total sales* at new car dealerships, at current prices, 2003-09
- Service and parts revenue dropping slightly for new car dealerships
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- Figure 15: U.S. sales at new car dealerships, by segment, 2005 and 2007
Components Serviced
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- Key points
- Overview
- Engine parts
- Brakes
- Auto fluids and chemicals
- Exhaust
- Batteries
Innovation and Innovators
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- GM reaches out to owners of shuttered brand with service opportunities
- Ford pushes service centers outside dealerships; extended hours pay off
- Recession opportune time to build expanded, luxury service facilities
Advertising and Promotion
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- Online retailing, social media allows dealerships to sell, promote parts
- Dealerships benefit from Mopar online store
- Toyota launches website, membership program to boost parts sales, service
- Web coupons have further reach, less expensive, than traditional print mailings
- eBay gives parts operators opportunity to reach global consumers, unload inventory
- Parts often marketed with masculine edge, high technology imagery
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- Figure 16: E3 Spark Plugs ad, 2010
- Recession becomes an opportunity to talk about preventive maintenance
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- Figure 17: Parts Plus ad, 2010
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- Figure 18: Castrol GTX High Mileage ad, 2010
- Confidence in delivery system key to promoting online parts ordering
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- Figure 19: National Parts Depot, 2010
Nature of Work Repaired/Serviced
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- Key points
- Preventive maintenance the reigning type of work performed at shops
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- Figure 20: Nature of work done on vehicle for last repair/service, by gender, Nov-Dec.2009
- Respondents aged 45 and over most likely to come in for preventive work
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- Figure 21: Nature of work done on vehicle for last repair/service, by age, Nov-Dec.2009
- High-income households more likely to pursue preventive maintenance
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- Figure 22: Nature of work done on vehicle for last repair/service, by household income, Nov-Dec.2009
Model Year of Car Repaired/Serviced
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- Key points
- Model years 2005-09, 2000-04 most likely to be serviced
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- Figure 23: Model year of car last repaired/serviced, by gender, Nov-Dec 2009
- Youngest respondents are most likely to repair/service older cars
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- Figure 24: Model year of car last repaired/serviced, by age, Nov-Dec.2009
- Households earning $100K or more most likely to service newest models
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- Figure 25: Model year of last car repaired/serviced, by household income, Nov-Dec 2009
Factors Influencing Repair Shop Choice
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- Key points
- Quality of service, history with facility two reigning reasons for shop choice
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- Figure 26: Factors influencing repair shop choice, by gender, Nov-Dec.2009
- Quality and history with a facility biggest draw for respondents aged 45+
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- Figure 27: Factors influencing repair shop choice, by age, Nov-Dec 2009
- History, quality best draws households with incomes starting at $50K
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- Figure 28: Factors influencing repair shop choice, by household income, Nov-Dec 2009
Impact of Online Research
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- Key points
- 77% of respondents did not bother to research service shop online
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- Figure 29: Online research components used when researching service/repair choice, by gender, Nov-Dec 2009
- Respondents younger than 35 more likely to go online to research repairs
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- Figure 30: Online research components used when researching service/repair choice, by age, Nov-Dec 2009
- Households with highest incomes favor customer testimonials
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- Figure 31: Online research components used when researching service/repair choice, by household income, Nov-Dec 2009
Car Component Repaired/Serviced
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- Key points
- Filters and brakes are components most commonly repaired or serviced
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- Figure 32: Car component repaired/serviced, by gender, Nov-Dec 2009
- Respondents aged 25-34 have work done on multiple vehicle components
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- Figure 33: Car component repaired/serviced, by age, Nov-Dec 2009
- Households earning highest incomes more likely to have filters replaced
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- Figure 34: Car component repaired/serviced, by household income, Nov-Dec 2009
Impact of Race and Hispanic Origin
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- Key points
- Hispanic respondents most likely to do vehicle work at home
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- Figure 35: Where vehicles are serviced/repaired, by race and Hispanic origin, Nov-Dec 2009
- Asian respondents most likely to get preventive maintenance for vehicles
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- Figure 36: Nature of work done on vehicle for last repair/service, by race and Hispanic origin, Nov-Dec 2009
- Blacks most likely to bring in 2000-04 model cars for service and repair
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- Figure 37: Model year of car last repaired/serviced, by race and Hispanic origin, Nov-Dec 2009
- Asians most likely to stress quality, history in choosing repair shops
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- Figure 38: Factors influencing repair shop choice, by race and Hispanic origin, Nov-Dec 2009
- White respondents most likely to not research repair/service shops online
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- Figure 39: Online research components used when researching service/repair choice, by race and hispanic origin, Nov-Dec 2009
- Asian respondents most likely to have filters, batteries repaired/serviced
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- Figure 40: Car component repaired/serviced, by race and hispanic origin, Nov-Dec 2009
Cluster Analysis
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- Researchers
- Dealers
- Indie Shoppers
- Cluster characteristics
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- Figure 41: Under the hood clusters, November 2009
- Figure 42: Factors influencing repair shop choice, by under the hood clusters, November 2009
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- Figure 43: Reasons for choosing repair shop by under the hood clusters, November 2009
- Figure 44: Preferred online components used when researching service/repair choice, by under the hood clusters, November 2009
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- Figure 45: Car component repaired/serviced, by under the hood clusters, November 2009
- Cluster demographics
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- Figure 46: Under the hood clusters, by gender, November 2009
- Figure 47: Under the hood clusters, by age group, November 2009
- Figure 48: Under the hood clusters, by household income group, November 2009
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- Figure 49: Under the hood clusters, by race, November 2009
- Figure 50: Under the hood clusters, by Hispanic origin, November 2009
- Cluster methodology
Appendix: Trade Associations
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