Page 1

The Marion Auto Market Presented to:

Mathews Auto Group


Your Objectives In our preliminary meeting, you told us: ™ Business is down from last year and you would like to increase your sales volume and store traffic. ™ Your primary targets consist of : Adults, 40-60 years old, >$50K income Males, 20-30 years old Single Females, >$30K income ™ You would like to reach a broader audience, possibly through increased internet exposure and targeted advertising campaigns. ™ You need assistance developing new ideas and creative ways to draw in new customers. 2


Our Goal We listened and want to help by: ™ Exploring the current automotive trends in Ohio, Marion, it’s surrounding counties and within the Mathews group of dealerships. ™ Illustrating how Mathews Group could benefit from pump out and capturing lost units within their core market. ™ Helping you find your primary customers through research and strategic ad placement. ™ Increasing your branding, exposure and influence in Marion county and beyond through multi-platform solutions. ™ Giving examples of advertising campaigns that have worked in the past and exploring new options currently available. 3


Current National Trends • Coming in 2008 – Ford is set to reintroduce the Mercury Sable line. According to company officials, the Mercury Sable name maintains an impressive 60 percent consumer awareness level. • June, 2007 – Hyundai introduces a new national sales event called "The Big Duh Sales Event." The promotion is supported by a nationwide advertising campaign, which pokes fun at traditional car sales event advertising. • May, 2007 - Private equity group Cerberus Capital Management will take control of the Chrysler Group acquiring 80.1 percent of brand, while DaimlerChrysler will retain 19.9 percent. • May, 2006 - Honda introduces the Fit targeting first-time car buyers and empty nesters, as well as anyone else who is looking for a youthful and practical vehicle • March, 2006 - Dodge launches a campaign for its 2007 Caliber targeted to 25to 35-year-old consumers. The ads were featured on youth-oriented websites and publication Source: Ad Mall, 2007

4


State of Ohio – 2006 Vehicle Sales New Units Sold : 483,161

Used Units Sold : 1,835,980

New Trucks / Vans Used Trucks / Vans Used Cars New Cars New Car Lease

$6.5 Billion $5.5 Billion $4.7 Billion $3.6 Billion $3.1 Billion

Vehicle Purchases & Leases $24.3 Billion

Source: Claritas, 2007

5


State of Ohio – Vehicle Sales Ohio experienced an 11.3% decrease in the sale of new and used vehicles over a one year period – 2005 to 2006 Mathews Group:

- 8.1%

New vehicle sales declined 6.8% 2005 to 2006 Mathews Group:

- 1.0%

Used vehicle sales recorded a 12.4% loss in sales between 2005 to 2006. Mathews Group:

- 19.1%

Source: Polk Insight, 2007

6


Mathews Group Coverage Area

5 Miles 10 Miles

Acura, Honda

Source: Claritas, 2007

Ford, Lincoln, Mercury

Chrysler, Dodge, Jeep

Mathews East

7


Marion County Profile 2006

2011

% Change

Population

66,317

66,399

+0.12%

Households

24,881

24,988

+0.43%

Avg. HH Income

$54,497

$60,750

+11.47%

Age 18-34

15,145

15,854

+4.68%

Age 35-49

15,090

13,757

-8.83%

Age 50-64

12,138

13,187

+8.64%

9,017

9,685

+7.41%

Key Age Segments

Age 65+ Projected Automotive Sales Vehicle Purchases & Leases

$128 Million

$152 Million

+18.75%

Source: Claritas, 2007

8


Mathews New Vehicle Sales (’02 to ’06) The Mathews Group new vehicle segment has experienced an 18.7% decrease in sales over a 5-year period 3,500 3,000 2,500 Units

2,000 Mathews Group

1,500

Source: Polk Insight, 2007

1,000 500 0

2002

2003

2004

2005

2006

Year 9


Mathews Comparative Sales – New Import sales are

, Domestic sales are

1,000 Up from 2005 Acura, Honda: 4.13% Hyundai: 93.18%

900 800 700

Down from 2005 Dodge, Chrysler, Jeep: - 13.36% Ford, Lincoln, Mercury: - 22.77%

600 Units

500 400 300

Acura, Honda

200

Dodge, Chrysler, Jeep

100

Hyundai Ford, Lincoln, Mercury

0 2002

2003

2004

2005

2006

Source: Polk Insight, 2007

Year 10


Mathews Used Vehicle Sales (’02 to ’06) Similary, the used vehicle segment has experienced a 29.8% decrease in vehicle sales over the same 5-year period 2,000 1,800 1,600 1,400 Units

1,200 1,000

Mathews Group

800

Source: Polk Insight, 2007

600 400 200 0

2002

2003

2004

2005

2006

Year 11


Mathews Comparative Sales – Used Used car sales for all segments are experiencing loss in sales 800

Down from 2005

700

Imports: Acura, Honda: - 7.75% Hyundai: - 28.28%

600

Domestics: Dodge, Chrysler, Jeep: - 25.33% Ford, Lincoln, Mercury: - 19.64%

500 Units

400 300 200

Acura, Honda Dodge, Chrysler, Jeep

100

Hyundai Ford, Lincoln, Mercury

0 2002

2003

2004

2005

2006

Source: Polk Insight, 2007

Year 12


Mathews Sales by County - New The Mathews Group serves multiple counties‌ Acura, Honda

Chrysler, Dodge, Jeep Other 18%

Other 21%

Marion 43%

Morrow 4%

Marion 59%

Crawford 6%

Crawford 9% Delaware 10%

Morrow 8%

Delaware 5% Franklin 11%

Richland 2%

Franklin 3%

Source: Polk Insight, 2007

Richland 1%

13


Mathews Sales by County - Used The Mathews Group serves multiple counties‌ Acura, Honda

Chrysler, Dodge, Jeep Other 13%

Other 17% Morrow 12%

Morrow 11% Marion 53%

Crawford 5%

Crawford 8% Delaware 4%

Delaware 10% Franklin 3%

Marion 58%

Franklin 4%

Richland 1%

Source: Polk Insight, 2007

Richland 1%

14


Mathews Sales by County – New The Mathews Group serves multiple counties Ford, Lincoln, Mercury

Hyundai Other 15%

Other 13%

Morrow 12%

Marion 60%

Crawford 6%

Marion 55%

Crawford 8%

Delaware 8% Franklin 1%

Morrow 14%

Delaware 6% Richland 0%

Franklin 1%

Source: Polk Insight, 2007

Richland 1%

15


Mathews Sales by County - Used The Mathews Group serves multiple counties Ford, Lincoln, Mercury

Hyundai Other 15%

Other 13% Morrow 12%

Marion 57%

Morrow 17%

Crawford 4% Delaware 6% Franklin 3%

Marion 61%

Crawford 2% Delaware 5% Franklin 2% Richland 2%

Richland 1%

Source: Polk Insight, 2007

16


Marion County Trends New Units Sold : 2,120

Used Units Sold : 12,020

New Trucks / Vans Used Trucks / Vans Used Cars New Cars New Car Lease

$34.7 Million $30.0 Million $25.1 Million $18.9 Million $15.8 Million

Vehicle Purchases & Leases by Marion County Residents: $128.4 Million

Source: Claritas, 2007

17


Mathews Market Share – Marion County Sales to Marion County Residents from Marion County Dealers 2006 MG Market Share - New: 69%, Used: 25% New Vehicle Sales

McDaniel Chevrolet 17%

Used Vehicle Sales

Ford, Lincoln, Mercury 23%

McDaniel Nissan 14%

Hyundai 7%

Ford, Lincoln, Mercury Acura, Honda 11% 6%

Dodge, Chrysler, Jeep 6% Other Used Dealerships 45%

Acura, Honda 21%

Dodge, Chrysler, Jeep 18%

Hyundai 2% McDaniel Nissan 8%

McDaniel Chevrolet 8% Southland Streetwise 9% 5% Source: Polk Insight, 2007

18


Mathews Market Share – All Dealerships Sales to Marion County Residents from All Dealerships 2006 MG Market Share - New: 43%, Used: 7% New Vehicle Sales

Used Vehicle Sales Acura, Honda 2% Ford, Lincoln, Mercury 3%

Ford, Lincoln, Mercury 15% Acura, Honda 13% Other New Dealerships 31%

Other Used Dealerships 25%

Hyundai 0%

McDaniel Nissan 2% McDaniel Chevrolet 2% Streetwise 2%

Southland 1%

Dodge, Chrysler, Jeep 11%

Byers Delaware 3% Haydocy Chevrolet 3% McDaniel Chevrolet 11%

Dodge, Chrysler, Jeep 2%

McDaniel Nissan 9%

Private Party 61%

Hyundai 4%

Source: Polk Insight, 2007

19


YOY Comparison by Dealer - New Total Combined Dealership Sales – All States/Counties 2006 Market Share

2,500

-5.77% -9.11%

2,000

-6.06%

Mathews: 1,799 Units

1,500

Units

Mathews

-18.41%

1,000

-3.79%

-4.48%

McDaniel

McDaniel: 896 Units Gap: 903 Units Decreasing Gap

500

0 2003

2004

2005

2006

2003: 1,041 Units 2004: 1,132 Units 2005: 977 Units 2006: 903 Units

Year Source: Polk Insight, 2007

20


YOY Comparison by Dealer - Used Total Combined Dealership Sales – All States/Counties 2006 Market Share

3,000 7.10%

2,500

-9.41%

Mathews: 1,942 Units

-14.90%

2,000 Units

Mathews

23.39%

1,500

McDaniel -29.88%

81.61%

1,000

-14.43%

64.21%

500

-8.42% -12.94%

-8.09%

-11.00%

0 2003

2004

2005

Southland Streetwise

McDaniel: 935 Units Gap: 1,007 Units Decreasing Gap 2003: 2004: 2005: 2006:

1,172 Units 1,063 Units 1,261 Units 1,007 Units

2006

Year Source: Polk Insight, 2007

21


Vehicle Sales Lost Mathews Group averages 36% sales to Marion Co. Residents compared to the McDaniel Group whose sales to Marion = 37% 222 Units / 58% 160 Units / 42%

Southland

364 Units / 56% 291 Units / 44%

Streetwise McDaniel Chevrolet

Dealership

268 Units / 33%

544 Units / 67%

391 Units / 59% 270 Units / 41%

McDaniel Nissan Ford, Lincoln, Mercury

360 Units / 38%

Out of County

598 Units / 62%

Based on 2006 Sales, Source: Polk Insight, 2007

105 Units / 64% 59 Units / 36%

Hyundai Dodge, Chrysler, Jeep

In County

345 Units / 64% 195 Units / 36% 386 Units / 66% 195 Units / 34%

Acura, Honda

0

200

400

600

800

Units 22


The Pump-Out Factor The total value of new car sales to Marion County residents lost to out of market dealers:

$33,970,494 The total value of used car sales to Marion County residents lost to out of market dealers:

$62,149,590 Lost Opportunity: $96.12 Mil. Figures based on 2006 unit sales. New Vehicle: 1,194 units x $28,451 (avg. price new vehicle), Used Vehicle: 4,005 units x $15,518 (avg. price used vehicle) Source: NADA, May 2007 & Polk Insight, 2007

23


Sales Lost – Ford, Lincoln, Mercury Mathews Kennedy Ford, Lincoln, Mercury lost

95 new Ford, Lincoln, Mercury vehicle sales in the Marion County market to comparable competitors selling the makes and brands.

Lost Opportunity: $2.70 Mil. Figures based on 2006 unit sales. New Vehicle: 95 units x $28,451 (avg. price new vehicle. Research looking at specific makes: Ford, Lincoln, Mercury. Sources: NADA, May 2007 & Polk Insight, 2007

24


Sales Lost – Chrysler, Dodge, Jeep Mathews Group lost

96 new Chrysler, Dodge, Jeep vehicle sales in the Marion County market to comparable competitors selling the makes and brands.

Lost Opportunity: $2.73 Mil. Figures based on 2006 unit sales. New Vehicle: 95 units x $28,451 (avg. price new vehicle. Research looking at specific makes: Chrysler, Dodge, Jeep. Sources: NADA, May 2007 & Polk Insight, 2007

25


Ad Spending vs. Units Sold Ad Spending 2004

$471,188

2005

$433,692

2006

$324,306

2007

$118,595

Units Sold

- 7.96% - 25.22%

4,865 Units Sold 4,384 Units Sold 4,029 Units Sold

- 9.89% - 8.10%

1,803 Units Sold

Source: Genesys Revenue Report, Internal Documentation

26


Chrysler, Dodge, Jeep Trade Area Primary and Secondary Trading Zones • Chrysler, Dodge, Jeep trade area is highly competitive with 16 dealers in a 50-mile radius of Mathews Group. • The map illustrates the 10-mile coverage zones of other competitive dealerships. • Mathew’s closest competitors capable of stealing market share are Terry Mowery, Hardin Motors and Courtsey Auto Mall. • How can Mathews stand out from the competition and dominate its trade area? Source: Claritas, 2007

28


Chrysler, Dodge, Jeep New Market What does this mean in dollars to Mathews Chrysler, Dodge, Jeep?

Dollars Ohio

Units

$1,769,253,886

(62,186)

$181,090,615

(6,365)

$11,807,165

(415)

50-Mile Trade Area Mathews CDJ

$169,283,450 In 2006, Mathews left $169 Million in Chrysler, Dodge, Jeep sales on the table in its 50-Mile area. Source: Polk Insight, 2006, NADA 2006 Industry Analysis Division. Based on an average sticker price of $28,451

29


Chrysler, Dodge, Jeep Sales by Dealer Top 5 Chrysler, Dodge, Jeep Dealers: 50-Mile Radius of Mathews 1,400

2002 2003 2004 2005 2006

1,200 1,000 800 600 400 200 0

NELSON AUTO GROUP

CARRIAGE TOWNE CHRYSLER DODGE JEEP

CROWN CHRYSLER JEEP

BYERS DUBLIN MATHEWS DODGE DODGE CHRYSLER JEEP

30


New Vehicle Sales by Model 2006 Top 10 New Vehicle % of Sales by Model

Ohio Town & Country 12%

Other 24%

Mathews Dodge, Chrysler, Jeep Ram 12%

Other 19%

Ram 21%

PT Cruiser 5%

Commander 5% Dakota 5%

Caliber 4%

Pacifica 5% PT Cruiser 5%

Caravan 11% 300 5%

Grand Cherokee 7%

Liberty 9%

Town & Country 12%

300 5% Grand Cherokee Commander 5% 5%

Dakota 7%

Liberty 8%

Caravan 9%

*Mathews outperforms the market in Ram, Dakota and Caliber sales. Mathews underperforms with Caravan, Liberty, Grand Cherokee and Pacifica. Mathews has an opportunity with Caravan, Liberty and Grand Cherokee sales. Source: Polk Insight, 2007

31


Chrysler, Dodge, Jeep Demographics Age

Income

35.0%

35.0%

30.0%

30.0%

25.0%

25.0% 20.0%

20.0%

15.0%

15.0%

10.0%

10.0%

5.0%

5.0% 0.0%

0.0% 18-24

25-34 Ohio

35-44

45-54

50-Mile Radius

55-64

<$30K $30-39K

65+

Mathews

Ohio

$40$49K

$50$74K

50-Mile Radius

$75$99K

Mathews

GROWTH OPPORTUNITY

GROWTH OPPORTUNITY

• Adults 45-54 and 65+

• $40-39K and High Income

Source: Polk Insight, 2007

$100K+

32


Ford, Lincoln, Mercury Trade Area Primary and Secondary Trading Zones • Ford, Lincoln, Mercury trade area is highly competitive with 9 dealers in a 50-mile radius of Mathews Group. • The map illustrates the 10-mile coverage zones of other competitive dealerships. • Mathew’s closest competitors capable of stealing market share are Courtsey Auto Superstore, Donley Ford and Bob Chapman. • How can Mathews stand out from the competition and dominate its trade area? Source: Claritas, 2007

34


Ford, Lincoln, Mercury New Market What does this mean in dollars to Mathews Ford, Lincoln, Mercury?

Dollars Ohio

Units

$2,201,453,027

(77,377)

50-Mile Trade Area

$82,849,312

(2,912)

Mathews FLM

$15,249,736

(536)

$67,599,576 In 2006, Mathews left $67 Million in Ford, Lincoln, Mercury sales on the table in its 50-Mile area. Source: Polk Insight, 2006, NADA 2006 Industry Analysis Division. Based on an average sticker price of $28,451

35


Ford, Lincoln, Mercury by Dealer Top 5 Ford, Lincoln, Mercury Dealers: 50-Mile Radius of Mathews 900

2002 2003

800

2004 2005 2006

700 600 500 400 300 200 100 0

MATHEWS KENNEDY FORDLINC/MERC

DONLEY FORDLINCOLNMERCURY

GRAHAM CHEVROLET COMPANY

BOB CHAPMAN FORD INC

COURTESY AUTO SUPERSTORE 36


New Vehicle Sales by Model 2006 Top 10 New Vehicle % of Sales by Model

Ohio

Mathews Ford, Lincoln Mercury F-Series 27%

Other 20% Milan 3%

Taurus 3%

Freestyle 3% Focus 10%

Ranger 4% Five Hundred 4%

F-Series 30%

Other 23%

Explorer 6%

Mustang 6%

Fusion 9%

Montego 3% Fusion 9%

Milan 4% Explorer 4%

Escape 8%

Escape 5%

Ranger 5%

Mustang 6%

Focus 8%

*Mathews outperforms the market in F-Series, Ranger, Milan, Montego and Taurus sales. Mathews underperforms with Freestyle, Five Hundred, Explorer, Escape and Focus. Mathews has an opportunity with Explorer and Focus sales. Source: Polk Insight, 2007

37


Ford, Lincoln, Mercury Demographics Age

Income

30.0%

30.0%

25.0%

25.0%

20.0%

20.0% 15.0%

15.0%

10.0%

10.0%

5.0%

5.0%

0.0% 0.0%

18-24

25-34 Ohio

35-44

45-54

50-Mile Radius

55-64

<$30K $30-39K

65+

Mathews

Ohio

$40$49K

$50$74K

50-Mile Radius

$75$99K

Mathews

GROWTH OPPORTUNITY

GROWTH OPPORTUNITY

• Adults 25-34, 35-44 and 45-54

• $30-39K and $75-$99K

Source: Polk Insight, 2007

$100K+

38


Age 40-60, $50K+ Income Meet The Sables Marion County has approximately

2,774 households that fit this profile The Sables: â&#x20AC;˘

Love to drive cars similar to the Mercury Sable.

â&#x20AC;˘

The Sables live in suburban areas like prospect, LaRue and on the outskirts of Marion.

Source: Claritas, 2007

39


Males, Age 21-34 Meet Robert Dakota Marion County has approximately 7,212 households that fit this profile Robert: â&#x20AC;˘

Loves to drive cars similar to the Ford Mustang & Dodge Dakota

â&#x20AC;˘

Robert is a professional, single man with refined taste. Source: Claritas, 2007

40


Single Women, $30K+ Income Meet Kim Mercury

Marion County has approximately 11,873 females* that fit this profile Kim is: â&#x20AC;˘

Looking to buy goods and services from sales people who will show her respect and meet her needs.

Source: Claritas, 2007

41


Automotive Purchasing Funnel In the final two weeks before purchase, vehicle buyers rely heavily on newspaper and online as their primary source for information

Source: CNW Marketing / Research

42


The Purchasing Funnel The Purchase Funnel Concept explores the fluidity of automotive buyers and their moves into -- and out of -- the purchasing process. The Purchasing Funnel is not linear - at any given time buyers are moving into and out of the funnel for Timeline a variety of reasons. The most important information presented by the Funnel is that more than half of all potential buyers drop out of the buying process.

Total New Vehicle Intenders 30.1 Million Intenders

6 months

6.9

5 months

6.3

4 months

4.2

3 months

5.6

2 months

3.4

1 month

Models under consideration

2.9

2 WK

1.9

Acquisition 16.6 million

43


Mathews Group â&#x20AC;&#x201C; Proposed Package Target: The Sables

Target: Richard Dakota

(40-60 years old, <$50K income)

Daily News Journal Sunday News Journal Daily Star Sunday Star Daily Telegraph Forum Cars.com (3) Newspaper Websites

Reach

% of Total Target Population

20,250 21,312 7,944 7,778 2,398

72.3% 76.1% 72.7% 71.2% 79.0%

(Males, 20-30 years old) Reach

Daily News Journal 12,843 Sunday News Journal 13,393 Daily Star n/a Sunday Star n/a Daily Telegraph Forum 1,491 Cars.com (3) Newspaper Websites

Target: Kim Mercury (Females, >$30K income) Reach

Daily News Journal Sunday News Journal Daily Star Sunday Star Daily Telegraph Forum Cars.com (3) Newspaper Websites

38,122 38,363 12,435 12,576 4,251

% of Total Target Population

58.7% 61.2% n/a n/a 68.0%

% of Total Target Population

72.1% 72.6% 70.1% 70.9% 77.0%

Source: W&A Study, 2004

44


Reaching Your Targets

The Marion Star

Bucyrus TelegraphTelegraph-Forum

Mansfield News Journal

Full page Monday Half page Tuesday Half page Wednesday Full page Thursday Half page Friday Half page Saturday Full page Sunday/Snapshots

Full page Monday Half page Thursday Half page Tuesday Half page Saturday Half page Wednesday Half page Sunday/Snapshot Full page Thursday Half page Friday Full page each Saturday/Snapshots 45


Effectively Reaching Your Customers PowerPositions can double Cars.com traffic to your website.

With PowerPositions, shoppers see your advertising in search results whenever they search for a specific make in your local area. • Drive more traffic to your website

• Targeted advertising you can measure

• Edge out your competition

• Secure a premium placement

46


Mathews Auto Group â&#x20AC;&#x201C; Online Proposal Cars.com Four New dealerships, plus Budget lot $3,180 per month Seven Power Positions - $525 per month

MarionStar.com Banner sponsorship - $350 per month

Bucyrus Telegraph Forum.com Banner sponsorship - $300 per month

Mansfield News Journal.com Banner sponsorship - $500 per month 47


Success of Mathews Honda & Hyundai

48


What Works?

49


Mathews Auto Group â&#x20AC;&#x201C; Print Proposal

Print Ad schedule: (134,082 inches annual)

50


Mathews Auto Group â&#x20AC;&#x201C; Total Proposal

Mathews Auto Group proposal $420,000 annual contract 51


Let Us Work for You! Benefits to using the Star: • Market partner-analyzing demographic and statistical data supplying information each quarter for educated advertising decisions. • Build ads and transmit to all papers allowing managers to proof ads with one newspaper (must be pickups and proofed before transmissions). • Develop and communicate weekly ad schedule between all Mathew’s dealerships. Giving each manager approved monthly ad calendar for a more consistent ad schedule. • Supply monthly spec ads for each manager. • Assign a Advertising rep and a Account relationship specialist to better serve the Mathews account. 52

Mathews Auto Group  

Sample Auto Presentation

Read more
Read more
Similar to
Popular now
Just for you