The Dealership`s Fastest Growing Demographic

Report
Selling to the Hispanic Market: The
Dealership’s Fastest Growing Demographic
Mark Williams | Kelley Blue Book | Sr. Market Intelligence Analyst | [email protected]
Hispanics Have High Consideration For Japanese
Brands
• Hispanic more likely to consider
Japanese brands than Caucasians
and African Americans
• Less likely to consider domestic
brands than Caucasians, but more
than Asians
• Hispanics shoppers are very similar
to Asian shoppers in respect to
Domestic and Japanese brands
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931.
significant at 90%
Hispanics Consider Import Brands When Looking
At Non-Luxury Vehicles
27% Ford
23% Nissan
31% Honda
34% Toyota
26% Chevrolet
BrandWatch Q1 & Q2 2014. Hispanics, N = 293
Toyota Has The Highest Consideration Among
Hispanics
BrandWatch Q1 & Q2 2014. Hispanics, N = 293
When Considering A Luxury Brand, Hispanics Favor
Imports
Audi – 6%
Acura – 8%
BMW – 9%
Luxury consideration among
Hispanics is very low.
BrandWatch Q1 & Q2 2014. Hispanics, N = 293
Lexus – 6%
Hispanics Consider BMW More Than Other Luxury
Brands
BrandWatch Q1 & Q2 2014. Hispanics, N = 293
Hispanics Are Willing To Spend The Least On A New Car,
However, They Are Willing To Have A High Monthly
Payment
BrandWatch Q1 & Q2 2014. Hispanics, N = 253, Caucasian N = 4282, African American N =
213, Asian N = 106
Hispanics Want Cars That Are Practical
Hispanics
Asians
1. Durability/Reliability
2. Safety
3. Fuel Efficiency
4. Driving Comfort
5. Driving Performance
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
Durability/Reliability
Safety
Affordability
Fuel Efficiency
Driving Performance
1.
2.
3.
4.
5.
Caucasians
Durability/Reliability
Safety
Driving Comfort
Driving Performance
Affordability
African Americans
Durability/Reliability
Safety
Affordability
Driving Performance
Driving Comfort
BrandWatch Q1 & Q2 2014. Hispanics, N = 246, Caucasian N = 4247, African American N =
204, Asian N = 98
Segment Consideration
More segment differences
seen when there are more
groups
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931.
significant at 90%
Top 3 Segments Hispanics Will Consider
47%
44%*
18%*
1. Both gender equally likely to consider Non-Lux Sedan
2. Hispanic females more likely to choose Non-Lux Utility Vehicle
3. Hispanic males more likely to consider Pickup
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. *=significant at 90%
Hispanic Males More Likely to Consider Non-Lux
Coupe Than Non-Hispanic Males
•
•
Hispanics significantly rated all the
factors higher than Non Hispanics,
specifically driving performance,
durability/reliability, reputation,
technology, and exterior were the top 5
factors
Hispanic males like their muscle cars!
Top 5 Coupe Models
1. Ford Mustang
(4%)*
2. Chevrolet Camaro
(3%)*
3. Honda Accord
Coupe (3%)*
4. Dodge Challenger
(3%)*
5. Honda Civic Coupe
(2%)*
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. *=significant at 90%
Hispanics Favors the Corolla Within the Compact
Sedan Segment
• Hispanics likely to consider Toyota
Corolla, Honda Civic Sedan, Ford
Focus, Volkswagen Jetta Sedan, and
Nissan Sentra.
Toyota Corolla (6%)*
Honda Civic (5%)*
Nissan Sentra(2%)*
Ford Focus (3%)
VW Jetta(3%)*
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. *=significant at 90%
Hispanics Favors the Honda Accord Within the
Midsize Sedan Segment
• Hispanics likely to consider Honda
Accord, Toyota Camry, Nissan
Altima, Ford Fusion, Audi A4,
Chevrolet Impala, Kia Optima within
midsize sedan segment
• Hispanics significantly consider the
Accord, Altima, and A4 over Non
Hispanics
Honda Accord (9%)*
Toyota Camry (6%)
Nissan Altima(4%)
Ford Fusion (4%)
Audi A4 (3%)*
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. *=significant at 90%
Hispanics Flock To Non-Luxury Midsize Sedans
9% consideration
•
•
6% consideration
Hispanics are mainly considering the Honda Accord and Toyota
Camry.
• They are value shoppers.
Value brands (Mazda, Hyundai, and Kia) need to market more
towards Hispanics to gain their loyalty.
• Play up importance factors (durability, safety, affordability).
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931
With Proper Brand Education, Hispanics Can Get
Into Luxury Models
Non-Luxury Midsize Sedans
Honda Accord: 9%
consideration
Acura ILX: 0.3%
consideration
MSRP: $27,795
MSRP: $23,545
Toyota Camry: 9%
consideration
MSRP: $23,250
Luxury Midsize Sedans
For the same
price, I can
own a Buick
Verano!
Buick Verano: 0%
Consideration
MSRP: $24,625
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931
Hispanics Most Likely to Consider a Non-Luxury
Sedan When Purchasing a Vehicle
• Hispanics rated reputation, fuel efficiency, driving performance, interior layout,
prestige/sophistication, and ruggedness higher than Non Hispanic
• A new car is perceived to be prestigious and have good driving performance
• When given a sedan to rate, Hispanics rated reputation higher than Non Hispanics; this
may be due to the strong models within this segment (i.e. Toyota Camry, Honda Accord)
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931.
significant at 90%
Few Hispanics Are Considering Small CUVs
Honda CR-V (5%)
Toyota RAV4 (3%)
•
•
Nissan Rogue (3%)
Ford Escape (3%)*
Educating Hispanics on CUVs can increase their purchases in this
segment.
CUVs are within Hispanics price range!
• Not much more expensive than a midsize sedan.
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. * = significant at 90%
The Jeep Grand Cherokee and Kia Sorento Have The
Highest Consideration Among Hispanics For Midsize
CUVs
Jeep Grand Cherokee (4%)
Honda Pilot (3%)
Kia Sorento (4%)*
Toyota Highlander(3%)
Ford Explorer(3%)
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. * = significant at 90%
Non Luxury Utility Vehicle
• Hispanics rated durability/reliability,
safety, reputation, driving
performance, and driving comfort
significantly higher than Non
Hispanics
• Among the mid-sized utility
vehicles, Hispanics likely to consider
the Jeep Grand Cherokee, Kia
Sorento, Honda Pilot, Toyota
Highlander, Ford Explorer, and
Dodge Durango
– Hispanics more likely to choose the Kia
Sorento than Non Hispanic
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931.
significant at 90%
Pickup Consideration
• If considering a small sized pickup, likely to
consider a Toyota Tacoma or Nissan Frontier
– Hispanics (3%) more likely to consider a Frontier
than Non Hispanics (1%)
• If considering a full sized pickup, likely to
choose the Chevrolet Silverado 1500 or Ford
F150
• Ram and GMC are high in familiarity, but low
in consideration; this may be due to brand
reputation or lack of marketing to the
Hispanic market.
Toyota Tacoma (4%)
Nissan Frontier (3%)*
– Hispanics (1%) are less likely to consider the GMC
Sierra 1500 than Non Hispanics (3%)
• Hispanics rated affordability and fuel
efficiency higher than Non Hispanics
• Exterior styling, driving performance, driving
comfort, durability/reliability, and
ruggedness were the top 5 highest rated
factors
Silverado F1500 (6%)*
Ford F150 (5%)
BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. * = significant at 90%
Brands Doing a Good Job Reaching Hispanic
Consumers
• High consideration and familiarity
among Hispanics
• Targeted marketing by these companies
in Spanish via social media, such as
Facebook, Twitter, Instagram
– Ford en Espanol
– Toyota Latino
– Nissan Espanol
Make
Toyota
Honda
Ford
Chevrolet
Nissan
Familiarity Consideration
49%
13%
41%
11%
45%
10%
43%
10%
38%
8%
With More Targeted Marketing, These Brands Can
Reach More Hispanic Consumers
• Moderate consideration and familiarity
• Hispanics may need to be educated
with the different models within these
brands for increased consideration
• Many of these vehicles are within the
price range that they would consider
• Play up factors such as
durability/reliability, safety, and
affordability in these vehicles
• Some of these companies have targeted
marketing towards Hispanics
– Hyundai Espana
– Kia Optima Spanish Commercial
• Hispanics are considering some models
significantly more than Non Hispanics
– Kia Sorento, Hyundai Accent
Make
Hyundai
Dodge
Jeep
Kia
BMW
Mazda
Familiarity Consideration
36%
4%
43%
4%
36%
4%
32%
4%
30%
3%
38%
3%
Missing the Hispanic Target
• Moderate to high familiarity, but low
consideration
• The Ram 1500 has the highest
familiarity among Hispanics, yet it has
only 1% consideration
• Need more marketing towards Hispanic
audience
• Hispanics should be considering value
brands like Buick, Scion,
– Hispanics significantly familiar with the
Scion xD, Chrysler 300, Acura TSX
Make
Familiarity Consideration
55%
1%
Ram
45%
3%
GMC
38%
2%
Cadillac
34%
1%
MINI
34%
1%
Chrysler
33%
3%
Acura
33%
2%
Audi
32%
1%
Scion
31%
1%
Mercedes-Benz
30%
1%
Subaru
28%
0%
Buick
23%
1%
Mitsubishi
Missing the Hispanic Target
• Moderate to high familiarity, but low
consideration
• The Ram 1500 has the highest
familiarity among Hispanics, yet it has
only 1% consideration
• Need more marketing towards Hispanic
audience
Make
Familiarity Consideration
55%
1%
Ram
45%
3%
GMC
38%
2%
Cadillac
34%
1%
MINI
34%
1%
Chrysler
33%
3%
Acura
33%
2%
Audi
32%
1%
Scion
31%
1%
Mercedes-Benz
30%
1%
Subaru
28%
0%
Buick
23%
1%
Mitsubishi
Contact Info
Full Name:
Mark Williams
Company:
Kelley Blue Book
Job Title :
Sr. Market Intelligence Analyst
Email:
[email protected]
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