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TEAM BEAR-O-DACTYL Avan Datt | Chaz Faulhaber Robert Hribernick | Sho Ito | Doug Kim


Table of Contents Team.....................................................................................................................i History.................................................................................................................2 Situation Analysis................................................................................................4 Insight..................................................................................................................3 The Industry........................................................................................................6 Target Demographics..........................................................................................8 Creative.............................................................................................................12 Expense List......................................................................................................25 Appendix...........................................................................................................26


History

1936: Baxter’s Auto Parts began. -     Ray & Wilma Baxter opened their business in Chehalis, Washington. 1944: First store opened in Portland, Oregon. -       One half of the building was a machine shop, which was used to keep vehicles on the road for the war effort. 1949: Second store opened in North Portland. -       Expansion was happening in St. Johns area. 1963: Third store opened in Parkrose. -       This area was a perfect place for rapid growth. 1985: Fourth store opened in Oak Grove. -       This was a pivotal time for Baxter’s Auto Parts, with four store locations  presenting Baxter’s Auto Parts as a strong, NW regional auto parts business. 2010: Baxter’s Auto Parts has been expanding to over 30 locations throughout the Pacific Northwest and Northern California.


Insight After visiting multiple Baxter locations around the Portland/Salem area, we came away with 3 distinct elements that make Baxter unique to their communities. Relationships

Experiences

Brotherhood

We came away with one clear, unique thought about what Baxter provides to its dedicated customers.

“We’ve Been There”


Situation Analysis ✓ Industry ✓ Competitors ✓ Demographics


“The world has changed, and with it the mindset of the affluent consumer. The word that best describes that mindset at the moment is ‘recalibration.’ We have all been forced to take a closer look at what we spend, why we spend and ultimately, what we get from what we purchase.” - Andrew Sacks, 2008


The Industry

Since August 2005, AutoZone “As consumers began to take more of their economic lives into has increased sales revenue on their own hands, they inevitably changed the financial landscape average between 3.5-4% for a wide variety of businesses. Losers included service providers such as beauty salons and landscaping services. (IBISWorld “AutoZone, Winners included companies such as auto-parts retailers catering to the DIY segment. In the fourth quarter of 2008 AutoZone’s 2010”) same-store sales grew 6% at a time when the retail sector was experiencing one of the worst periods in memory.” Packaged Facts, June 2009

O’Reilly Automotive earned over $2,405

million in December of 2005. In 3 years, that number had grown to over $4,847 million in December of 2009. (IBISWorld “O’Reilly Automotive, 2010”)


“Welcome to the do-it-yourself economy, where customers of every demographic stripe are putting off the purchase of new cars and handling many auto repairs themselves” Fortune (April 2, 2009)

“The overall industry has grown –and will continue to grow.” IBISWorld Auto Industry Risk, 2010

Auto parts stores compete on the basis of price, part quality, location and customer service.

“AutoZone Top Choice for DIYers. The leading automotive retail destinations of DIYers are AutoZone, where 48% of DIYers shopped in the past year, and Walmart (42%). Car dealerships are the top choice of DIFMers when they need something for their vehicle.” Packaged Facts (June 2009)

“The industry's main risk factor is total motor vehicle registrations which will return to slight growth, followed by IBISWorld's forecast growth score for this industry.” IBISWorld, 2007

IBISWorld predicts that the average number of miles driven per vehicles will return to growth in 2010, rising by 0.3% to 11,519. With the economy recovering, and unemployment passing its peak,

people will begin to drive more.


Target Demographics


The Young Adult/DIY •Around one in three (34%) of adults changing their own

motor oil are under the age of 35, compared to 25% of those taking their cars to a service facility and 28% of adults as a whole. •DIYers in the automotive world also are more likely to be male. While 52% of DIFMers are women, 53% of DIYers are men. !"#$"%&'(")*+),-./"#0) N0@3;25A-.=6#

Young, relatively inexperienced, and driven by appearance/performance. This may come as a result of video games and Hollywood tuning movies, but the overall younger demographic is experiencing its first bouts with freedom and selfexpression, and many of them represent themselves through their cars. They don’t have a lot of money, so they’re very particular about achieving a certain spectacle with each purchase. They don’t have the most to spend, but every purchase counts.

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The Affluent Consumer This person is a hardworking male. He has payments (house, car, insurance, phone etc), he has children (2-4), he doesn’t have the funds to buy a new car, he isn’t looking for a salesman to sell him, he has time, he’s hardworking, responsible, caring, and smart. He has TIME, time to research, time to answer important questions about how a car will benefit his family first, instead of himself. He is looking for an auto maintenance or auto parts place that is knowledgeable to answer questions that will not only educate, answer, save him money, but also make him feel good about coming in..

-The average consumer spent three times more than the nonaffluent consumers (less than $75,000) -7 in 10 affluent consumers have full time jobs. Retirees are not listed as affluent consumers. Only 6% of affluent customers are considered “retired”. - The share of aggregate consumer expenditures controlled by affluent consumer units grew steadily between 2003 and 2008. In 2003, affluent consumer units were responsible for 26% of all consumer expenditures. By 2008 their share had grown to 35% !"#$%&'()#*$+),-*.'/)0&,1%-231%4)#5$026$15$0&)%.'78'9::;' <#!!=!!!"2-3"@A:;" <'?!=!!!".)"<'>>=>>>" <'!!=!!!".)"<'$>=>>>" 5")6"788"9)01:/)831",-"7;:2" ()*"+,-"./)012-314" !"

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The Old Guy

The old guy has seen it all. At this point in his life, his car is either his hobby or his horse, depending on how he retired. If he retired on a slim salary, his truck just needs to run reliably and the majority of his purchases go towards keeping it in running condition. Price and Selection Matters. If he retired with a little extra gravy on his plate, then auto restoration is a huge percentage of his expenditure. Restoring a car back to the condition it was in when he saw them new on the lot holds sentimental value.


Creative


Redesigned Website •New Look •Easier Navigation •Live Chat •News Feed •How to Videos •Synchronized Events Page


Billboards


Events

Implemented by: - Putting posters around the stores (main window, front desk, and walls) - On Baxterâ&#x20AC;&#x2122;s Auto Parts website - Back of receipts - Also could be found at different locations, and events (promoting within promotions)


Print


Outdoor


Radio -Astute British NARRATOR talking over sounds of auto maintenance. 1. The sound of birds chirping fades in. A loud garage door opens. NARRATOR The weekend has finally arrived, and it’s time for you to get back under the hood of that gorgeous ’67 Mustang. A car hood creaks open. NARRATOR You’d better be careful though, you don’ want to… Oops. Looks like you forgot to label your spark plugs. How will you know where the right ones go? This won’t end well. BZZZZZZZT!!! A person is violently electrocuted in the background. NARRATOR Oh dear. That was quite a bit of sparks. Don’t worry though. That happens to everyone at some point. It’s certainly happened to us. At Baxter, we’ve been there. NARRATOR But it appears that it may be slightly late for calming advice. Maybe a bit of friendly help next time? You’ll certainly need help getting your foot out of there. That really looks painful. But don’t worry. The simple stuff can be the hardest. At Baxter, we’ve been there.


2. The sound of a car racing down a highway can be heard. The Narrator speaks up, and the engine noises quiet. NARRATOR Out for a peaceful drive, I see? Now, you’re sure that you’ve properly fastened that oil filter of yours? Because…. BOOM!! A loud boom echoes, followed by the sound of billowing smoke. DRIVER AAHH!!! WHAT THE….. NARRATOR Ooo. Well. Because that can happen. You see, a loose oil filter can mean oil drips onto your exhaust pipe, causing a considerable amount of smoke. But don’t worry. Even the best make mistakes. At Baxter, we’ve been there.


3. The sounds of frustrated grunting and attempts at attaching windshield wipers is heard. NARRATOR Putting on windshield wipers can be a consternating affair. The key, however, is to maintain focus and to not get frustrated. In the background, the grunts stop and a long scream followed by a smash are heard. NARRATOR But it appears that it may be slightly late for calming advice. Maybe a bit of friendly help next time? You’ll certainly need help getting your foot out of there. That really looks painful. But don’t worry. The simple stuff can be the hardest. At Baxter, we’ve been there.


EXPENSE LIST

Cost for Advertising in Portland: $205,930

Bus: Full Back (any size) on 60 buses @ $57,000/ 4 weeks to 18+ population (1,163,906) Bus: Left/Right Side (30”x144”) on 66 buses @ $82,680/ 4 weeks to 18+ population Bus Shelters (6’x4’) on 125 panels @ $58,750 / 4 weeks to 1,163,896 to 18+ population Billboard: (14’x48’) $7,500 /4 weeks to 1,847,000 targets in 18 and over population * Rates provided by Lamar Advertising Cost for Advertising by National Magazine Spread: $184,653 Radio in/around Portland: $2,115 (Over 40 stations available, prices vary)


Appendix

*Mintel Data was used to survey: Magazine, Radio, and Internet statistics (out of 222,210 people).


THE INTERNET Type

Age

Internet Sites

%

Type

Age

Internet Sites

%

The Young Adult

18-2 4

eBay

15%

The Affluent Man

25-5 4

eBay

27%

The Young Adult

18-2 4

Yahoo! Mail

40%

The Affluent Man

25-5 4

Yahoo! Mail

72%

The Young Adult

18-2 4

MapQuest

44%

The Affluent Man

25-5 4

MapQuest

65%

The Young Adult

18-2 4

Youtube

58%

The Affluent Man

25-5 4

Youtube

29%

Age

Internet Sites

%

The Older Senior

55-6 5

eBay

28%

The Older Senior

55-6 5

Yahoo! Mail

21%

The Older Senior

55-6 5

MapQuest

23%

The Older Senior

55-6 5

Youtube

31%

Type


RADIO Type

Age

Radio Usage Time

%

Type

Age

Radio Usage Time

%

The Young Adult

18-2 M-F 4 6:00am-10:00am

33%

The Affluent Man

25-5 4

M-F 6:00am-10:00am

38%

The Young Adult

18-2 M-F 3:00pm-7:00pm 29% 4

The Affluent Man

25-5 4

M-F 3:00pm-7:00pm

44%

The Young Adult

18-2 Weekend 4 10:00am-3:00pm

The Affluent Man

25-5 4

Weekend 10:00am-3:00pm

45%

Type

Age

Radio Usage Time

38%

%

The Older Senior

55-65

M-F 6:00am-10:00am

28%

The Older Senior

55-65

M-F 3:00pm-7:00pm

32%

The Older Senior

55-65

Weekend 10:00am-3:00pm

33%


MAGAZINE Age

Magazine

%

The Affluent Man

25-54

Better Homes and Garden

59%

42%

The Affluent Man

25-54

Car and Driver

82%

Sports Illustrated

29%

The Affluent Man

25-54

Sports Illustrated

44%

Age

Magazine

%

The Older Senior

55-6 5

Better Homes and Garden

59%

The Older Senior

55-6 5

Car and Driver

47%

The Older Senior

55-6 5

Sports Illustrated

56%

Type

Age

Magazine

%

The Young Adult

18-2 4

Better Homes and Garden

18%

The Young Adult

18-2 4

Car and Driver

The Young Adult

18-2 4

Type

Type


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2010 Campaigns Presentation: Baxter Auto Parts  

Our final project for J448 Campaigns was for Baxter Auto Parts, a North Western United States auto parts retailer. I was responsible for the...

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