7. CAR MARKET UK car parc and new car registrations, 2003-13 2004-7: Interest rates rose & new car sales fell New car sales are expected to fall by 19% in 2009 compared with 11% in 2008. Modest recovery in 2010. Stronger growth in 2011 and 2012 - pent-up demand released. Source: Mintel
8. Car Purchase Process Life events are determining factors 21% know make and model 79% can be influenced Default list of preferred brands Dismissed brands Brand re-evaluation
11. BMW ‘The ultimate driving experience.’ Premium Finish, Style, Sporty, Aggressive PREMIUM Strengths: Style and design, build quality, brand image, resale value Weaknesses: reliability, fuel consumption , insurance environmental Typical consumer: City Boys/ Low level executive role Technology: Rear wheel drive Different engineering –50/50 balance &vertically mounted to avoid under steer Main competitors: Audi ‘VW is a volume brand.’
12. Audi PREMIUM Strengths: Style and design, build quality, brand image, speed and power Weaknesses: Fuel consumption, price, comfort, insurance Typical consumer: ABC1, 26-40 Technology: Same parts, they’re competitors in price, not in class. Main competitors: BMW, Mercedes Sporty, sophisticated, dynamic ‘The more sophisticated older brother’
13. Mercedes-Benz ‘Its premium status is supported by perceptions of high prices.’ Prestigious, Expensive, Aspirational PREMIUM Strengths: Style and design, brand image, build quality, comfort. Weaknesses: Price, reliability, safety and insurance. Typical consumer: Age 30 – 70, Rich families, Stock brokers Technology: known for safety – invented airbag, anti-lock brakes, crumple zones Main competitors: BMW, Lexus, Jaguar Mercedes CLS Q: Is VW a competitor? A: What do you think?
14. Ford‘Price leader but weak build quality’ VOLUME Strengths: Price, fuel consumption, safety, insurance Weaknesses: Build quality, brand image, speed and power, resale value Typical consumers: Middle class, ‘soccer mums’ Main competitors: Honda, BMW, Audi, VW, Hyundai ‘The Passat CC is in the premium car sector but not a family car like the Mondeo.’
15. Brand Perceptions “Reliable, finally up-to-date. Excellent engines.” “Reliable, solid and safe.” Male, 55, Company Director, Hertfordshire Male, 46, Detective Inspector, Kent “Great at Hatchback and the Beetle.” “Good, reliability.” “Well- built, reliable. Good long-term value.” Male, 58, Town Planner, Nottingham Male, 52, Lecturer, St. Albans Male, 44 Chartered Surveyor, London
16. Passat CC Perceptions “Extremely aesthetic.” “Reliable, straightforward car.” Male, 46, Detective Inspector, Kent Male, 55, Company Director, Hertfordshire “Passat, Yes. But I’m not sure what the CC means.” “Stylish and elegant.” “I own one, I’m very happy with it.” Male, 58, Town Planner, Nottingham Male, 44, Chartered Surveyor, London Male, 52, Lecturer, St. Albans
17. Business Problem Poor awareness Of the CC vs. Passat Of VW selling a premium car Low consideration vs. competition Disconnect between product profile and brand values
27. An unusual/unexpected offering from Volkswagen Older – more comfortable in his skin, more self-assured and confident Attracts attention and stimulates conversation
32. Solution Elevate the status of the car within the VW range. ‘The connoisseur’s car’ ‘Premium without the price tag’ Ensure that VW set up specific training on the VW Passat CC.
35. Creative Proposition In the 1950’s Volkswagen asked you to THINK SMALL... ...Now In 2010 Volkswagen is asking you to THINK AGAIN!
36. Think Again! Your car says something about the type of person you are, not just how much money you’ve made. The Passat CC is a beautifully styled head turner…from Volkswagen. It’s a bit unusual, it’s not what everyone else has gone for. It shows you’ve actually thought about what you want in a car - It shows you know your own mind, you make considered decisions rather than just going with the pack.
37. Three levels of the campaign Awareness Engagement Conversion
43. Campaign overview Show off the cars looks Introduce the positioning Bring core audience closer to the brand Generate positive conversations by… …communicating model positioning message …creating an engaging/useful experience
48. Campaign overview Show off the cars looks Introduce the positioning Bring core audience closer to the brand Generate positive conversations by… …communicating model positioning message …creating an engaging/useful experience Drive brochure request and test drive by… …communicating additional spec, reinforcing model positioning, reaffirming value
49. Campaign overview OOH DM Radio Event Event Banners Microsite DM Sales Force Incentives
Economic: When interest rates rise, sales of new and used cars tend to fall and when interest rates fall, car sales tend to rise.
The need or desire to buy a car, whether a first car, second car or a replacement, is likely to be influenced by life events. The key life events that trigger the new car purchase decision are making major home improvements, a child going to university or getting married, the birth of grandchildren and entering retirement.If people are aware of car brands, they tend to have a default list of preferred brands which fulfil their cognitive needs.The factors that encourage consumers to consider specific brands not on their original default list are: a big improvement in fuel economymore stylish designsa new model in the range that meets specific requirementsa big reduction in running costs (fuel, insurance, tax and maintenance costs)price reductions/promotionsimprovement in safety featureslonger warranty period (five years)big improvement in reliability/build quality.There are also other brands which are normally dismissed due to legacy opinion (eg reliability, cost).People re-evaluate brands and brand options due to a change in a brand’s position relative to the consumer’s purchase criteria and also in relation to their changing economic situation and lifestyle. For new car prospects, making major home improvements, the marriage of an older child, the birth of grandchildren and entering into retirement are the life events that can trigger the desire or need for a new car. It is at a time of life when direct responsibilities for children and other major financial commitments such as mortgages reduce that the circumstances that encourage greater ownership of new cars arise. Brand selection tends depends initially on brand awareness
Internet: Price informationVehicle comparisonProduct informationPrincipal sources: car manufacturer and car dealer websites
BMW 3 SeriesTechnology:whereas the passat is only front wheel.BMW’s official stance is now that they are more open and consider other cars competitors that they might not have considered so 15 or 20 years ago.Previously BMW vs. MercedesNow BMW vs. AudiTALK ABOUT SHOWROOMS
Same parts
£600,000 for a 1 bed flat on the road of the showroom (near Sloane Sq) – therefore people have to have money.Same designer that designed the beetle, porsche etc – Ferdinand Porsche (see its history)???
What differentiates Ford from VW?Long history with car market, High brand recognitionFord Mondeo: Family car,Good for the long trips, feel planted and stable when driven, crisp steering, best “drivers” car
Grey/retired-This group are likely to be willing to pay a premium for the long-term core benefits of greater reliability, fuel economy, build quality and comfort, which enables them to minimise the regularity with which they need to repurchase cars. Only 5% listed brand image as important. Most increased car ownership (2003 – 2008) High level of ownership of just one car Third agers & grey/retired lifestage : Lowest intentions of buying a car Highest intention of purchasing new cars
Cheese and wine evenings; wine tastingSporting games: Laser pigeon shooting, golf simulators and PS2 driving Auction: Can win tickets to Ashes, Rugby world cup