Table of Contents
Executive Summary
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- The issues
- Some consumers are less diligent about servicing or maintaining their vehicles
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- Figure 1: Vehicle maintenance schedule, March 2016
- Good customer service is a must
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- Figure 2: Top five decision factors when choosing a specific repair or maintenance facility for your vehicle, March 2016
- Attracting the DIY consumer
- The opportunities
- A large share of consumers care for their vehicles
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- Figure 3: Vehicle maintenance schedule, March 2016
- Older consumers are influenced by their past experience and the reputation of a facility
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- Figure 4: Factors influencing decision to choose one facility over another, March 2016
- Vehicle sales growth via Millennials bodes well for auto service
- What it means
The Market – What You Need to Know
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- Canada’s population is expected to age in the future
- A growing population that is ethnically diverse
- Millennials bode well for vehicle sales and auto service
- Increasing household debt may put consumers off from purchasing cars
Market Factors
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- Canada’s population is expected to age in the coming years
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- Figure 5: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Figure 6: Projected trends in the age structure of the Canada population, 2014-19
- A growing population that is ethnically diverse
- Millennials should help drive growth of vehicle sales
- Increasing household debt may deter consumers from new car purchase
Key Players – What You Need to Know
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- Highlighting seasonal and complimentary offers via marketing techniques
- More cars on the road means more business for service facilities
- DIY work on vehicles is becoming increasingly difficult
- Automotive innovations and changing consumer preferences
- Consumers don’t always follow recommended maintenance schedule
- Mobile automotive services could impact the future of the industry
Marketing and Advertising
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- Spotlighting seasonal offers through advertising
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- Figure 7: Reliable Ford, Fergus, Ontario, loyalty mailing, November 2015
- Figure 8: Speedy auto service, St. John’s, Newfoundland, acquisition mailing, November 2015
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- Figure 9: Speedy auto service, Halifax, Nova Scotia, acquisition mailing, August 2015
- Figure 10: Mr. Lube, acquisition mailing, March 2016
- Complimentary offerings to win the crowd
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- Figure 11: Mr. Lube, acquisition mailing, September 2015
- Figure 12: Mr. Lube, acquisition mailing, November 2015
- Figure 13: Mr. Lube, acquisition mailing, August 2015
- Service reminders via loyalty mailing to keep on track of maintenance
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- Figure 14: Active Green + Ross, loyalty mailing, February 2016
What’s Working?
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- More cars on the road means more business for service facilities
- DIY work on vehicles is becoming increasingly difficult
What’s Struggling?
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- Automotive innovations and changing consumer preferences
- Consumers don’t always follow recommended maintenance schedule
What’s Next?
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- Mobile automotive services could impact the future of the industry
The Consumer – What You Need to Know
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- The vast majority of consumers have at least one vehicle in their homes
- Consumers follow manufacturer maintenance schedules
- Dealerships are the most common facility chosen for oil changes
- Past experience and reputation of a facility are essential for older consumers
- Good customer service is vital
Ownership of Vehicles and Service/Maintenance Schedule
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- The vast majority of consumers have at least one vehicle in their homes
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- Figure 15: Number of vehicles in household, March 2016
- Consumers follow manufacturer maintenance schedules
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- Figure 16: Vehicle maintenance schedule, March 2016
- Young adults less meticulous about their vehicles’ maintenance
- One in 10 maintain their vehicles on their own
Facility of Choice for Maintenance/Repair
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- Dealerships are the most common facility chosen for oil changes
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- Figure 17: Facility of choice for oil change, March 2016
- Older consumers lean towards dealerships for their transmission service
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- Figure 18: Facility of choice for transmission service, March 2016
- Nearly a third of consumers choose independent auto shops for tune-ups
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- Figure 19: Facility of choice for tune-ups, March 2016
- Franchise auto shops attract male 18-24s for brake service
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- Figure 20: Facility of choice for brake service, March 2016
- A fifth of men visit a tire retailer for their wheel and tire needs
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- Figure 21: Facility of choice for tire installation/wheel balancing/realignment, March 2016
- Consumers are most likely to replace batteries/headlights themselves
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- Figure 22: Facility of choice for “other maintenance”, March 2016
Factors in Choosing Repair or Maintenance Facility
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- Past experience and reputation of a facility are vital for older consumers
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- Figure 23: Influencing factors when choosing a specific repair facility for your vehicle, March 2016
- Price and location propel consumer choice
- Chinese Canadians are more influenced by others
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- Figure 24: Influencing factors when choosing a specific repair facility for your vehicle, Chinese Canadians vs overall population, March 2016
- Good customer service is key
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- Figure 25: Decision factors when choosing a specific repair or maintenance facility for your vehicle, March 2016
- Over-45s are more particular about where they take their cars
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- Figure 26: Decision factors when choosing a specific repair or maintenance facility for your vehicle, 18-44s vs over-45s, March 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
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