Connecting with a Multicultural Nation - Growth Strategies for OEMs and Dealers June 14, 2011
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Connecting with a
Multicultural Nation
Growth Strategies for OEMs and Dealers
June 14, 2011
Today’s Agenda
Hispanics are essential to your growth
Connect with them in culture
Leadership strategies to win with Hispanics
2
No More “Joe Consumer”
Hola!
In the nation’s 10
largest cities no
racial or ethnic
category describes
a majority of the
population
Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009
3
Concept of “Average American”
Is Obsolete
The iconic
American family –
married couple
with children – will
account for a
mere 22% of
households
Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009
4
Hispanics are 50.5 Million Strong!
U.S. Census Bureau, Census 2010
5
Hispanics Represent All the
Growth Among Adults 18-49
From 2010-2020 Hispanics are
projected to account for:
100 %
of all A18-49
growth
Source: U.S. Census Bureau Projections by single year, age, sex, and Hispanic origin released on August 2008.
6
Without Hispanics,
the Math Doesn’t Work
Hispanic Population A18-49
Chicago New York
San Francisco 23% 24%
25%
Los Angeles
48% Phoenix Dallas
32% 30%
Miami
U.S.
50%
18%
Houston
37%
San Antonio
55%
Source: Nielsen Universe Estimates, 2010, A18-49
7
Auto Consumer and Market
8
Hispanics Spend at Similar Levels
Average Base M.S.R.P. of New Vehicle Purchase
Total U.S. Hispanic
Hispanic Index
to Industry: 95
Source: Polk New Vehicle Personal Retail Registrations (Sales and Leases), CY10, US
9
…and Hispanics Return To New
Vehicle Market Sooner
Average Months Between New Vehicle Purchases – U.S.
Total U.S. Hispanic
CY10
Source: Polk 2010 Custom Study; New Vehicle Retail Registrations (Sales and Leases), based on Enhanced Ethnic Data, 1-2Q
CY10, USA Total. Note: Due to a small sample size , data only available for U.S., Los Angeles and New York markets only.
10Leading Brands in U.S. Hispanic Market
2010 2010 Industry 2010 Hispanic Difference % of Brand Sales to
Hisp Rank Make Total SOM SOM +/- Hispanics
#1 15.2% 20.0% +4.8 11.5%
#2 12.1% 13.9% +1.8 10.0%
#3 7.6% 12.0% +4.4 13.7%
#4 10.7% 9.2% -1.5 7.4%
#5 11.8% 8.9% -2.9 6.5%
#6 5.1% 4.1% 1.0 7.1%
#9 2.6% 2.9% +0.3 9.8%
Source: Polk New Vehicle Personal Retail Registrations (Includes Leases), Enhanced Ethnic Data, 2010, US 11Leading Brands in U.S. Hispanic Market
CY10 1Q 2010 1Q 2011 Difference % of Brand Sales to
Hisp Rank Make Hispanic SOM Hispanic SOM +/- Hispanics in 2010
#1 21.0% 18.4% -2.6 11.5%
#2 13.8% 13.7% -0.1 10.0%
#3 12.6% 13.2% +0.6 13.7%
#4 8.9% 10.0% +1.1 7.4%
#5 8.9% 8.7% -0.2 6.5%
#6 3.6% 4.7% +1.1 7.1%
#9 2.9% 3.0% -0.1 9.8%
Source: Polk New Vehicle Personal Retail Registrations (Includes Leases), Enhanced Ethnic Data, 1Q11 vs, 1Q10, US 12Honda and Nissan Gaining a Higher
Percent of Sales From Conquests
2010 Hispanic Conquest & Defection Units by Brand
% of Sales From % of Sales lost
Conquests to Defections Variance
20% -21% -1
27% -21% +6
26% -21% +5
Source Conquest & Defection data is sourced from Polk’s Registration database. The data only contains and evaluates households in a given time period who are
returning to market to purchase a new vehicle (sales and leases), where the last vehicle purchased was also a new vehicle (sales and leases). Analysis provided by
Polk only includes Brand-to-Brand evaluation (vehicle model level) for 2010.
Brand Conquest customers are newly acquired customers through a new vehicle purchase where the last new vehicle purchase was from a different brand.
Brand Defection customers are customers with a previous new vehicle purchase from the brand that have since purchased a new vehicle with a different brand.
13Investing to Win With Hispanics
% of Total TV to Spanish-language TV (SLTV)
2010 – U.S.
13.3% 9.2%
12.4% 8.4%
10.1% 7.0%
Source: KANTAR, Stradegy Analysis 2010. Totals include Spot TV spending for Tier 1 & 2 in U.S. No individual dealers.
14Why Spanish?
15Spanish Is The Language Of The Heart
Language Identity Pride Culture
Spanish
Connects
16Spanish is a Choice, Not a Necessity
Language Distribution among
Hispanic Adults 18-49 Population
28%
Only Spanish
Speak
Spanish 57% Bilingual
15% Only English
2011
Source: The Nielsen Company. TV Universe Estimates. Total U.S. Hispanic Adults 18-49 Language of the Person, 2011 17Hispanics Speak Spanish in Home
U.S.
Los Angeles 89%
New York 95%
Miami 99%
Source: 2011 Nielsen Universe Estimates; Hispanic TV Households
by Language Strata, includes Speaks Only Spanish, Mostly
Spanish, Spanish and English Equally, and Mostly English (based
on Persons 2+).
18La Familia de Univision
19Univision is the 5 Largest Network
th
Rank Network A18-49 (000)
1 4,238
2 3,552
3 3,247
4 3,167
5 1,807
6 1,276
7 1,063
8 1,055
9 1,022
10 991
Source: The Nielsen Company, NPM. NHPM, NPM-H. 09/21/09-08/29/10 Llve +7. (Primetime defined as) Mon-sat 8p-11p, Sun
7p-11p, EL Cable based on TimePeriod data. Exclused Breakouts.
20Our
Musica
Our Our
Novelas Sports
Our Our
Chisme Reality
Our Our
Sabor News
21
21Univision Content
Continues to Connect
Among BILINGUAL
Top TV Shows Among Hispanic Adults 18–49
Hispanic Adults 18–49
1993 2010 2010
28
of the Top 50
46
of the Top 50
42
of the Top 50
on Univision on Univision on Univision
Source: The Nielsen Company, NHPM, NPM-H, 1993 Live+SD (12/28/1992-12/26/1993) and 2010 Live+7
(12/29/2008-12/27/2009). M-Su 7a-2a, excludes all programs under 29 minutes, all pre and post sports programs.
Only includes Spanish-language and English-language Broadcast Nets only.
22Univision’s Unique Viewers Are Not
Reached Elsewhere 69%
Unduplicated Weekly Prime Audience
vs. Other Top-Rated Networks
Adults 18-49
10% 10% 10% 11%
8% 8% 8% 9% 9%
7%
Source: The Nielsen Company. NPower. NPM (11/01/2010-11/07/2010) Mon-Sat 8pm-11pm & Sun 7pm-11pm, Live+SD. Based on a qualified audience of 6+
minutes and on the percent of each network’s prime time audience that didn’t watch any of the other listed networks. (E-L networks based on the Top 10 in
prime time among Adults 18-49 for the week).
23Univision Local News Has the #1 News
in the Top Hispanic Markets
Adults18-49 Ratings
Early Local News
Market Rating Rank
Los Angeles 1.5 #1 1.0 0.3 0.5 -- 0.5
New York 1.4 #1 1.4 0.7 0.5 0.4 0.5
Miami 1.5 #1 0.9 0.5 0.4 1.4 1.5
Source: NSI Feb11 ViP Local News PAV (M-F 6-630pm Est/Pac). Los Angeles KMEX includes UMEX. New York and Miami are tied for #1.
24Leadership: Connecting with
Hispanic Passion Points
25IT’S PART OF OUR DNA
Nothing connects with Hispanic men, women
and children like the passion of soccer
26Toyota: Consistent Multi-Platform Ownership of
Premium Soccer Properties
27Toyota Making Share Gains in Texas
Among Hispanics
From 2005 to 2010: Toyota Hispanic share
(Non-Hispanic share +1.4 )
Closing share gap with
#1 ranked Chevy
(Difference between Toyota and Chevy
was 8.7 points in 2005 vs. 1.6 in 2010)
Tundra leads growth in
Full-size pickup segment
(Tundra ranks 5th in segment)
Source: Polk New Vehicle Personal Retail Registrations (Includes Leases), Enhanced Ethnic Data, 2005 – 2010 Texas DMAs
28VW: Connecting Nationally and Locally
with Multi-lingual Soccer Fanatics
29VW Hispanic Sales Growth
World Cup Sponsorship and Jetta Launch Effort
Deliver Significant Sales Results!
Sales Change Hispanic Industry
Total Industry 32% 23%
VW 43% 20%
Jetta 89% 47%
Hispanic Sales represented 20% of Total Sales gains!
Source: Polk U.S. New Vehicle Registrations (Includes Leases), Enhanced Ethnic Data, Oct 2010-Mar 2011 vs. Oct 2009 – Mar 2010.
30Brand Loyalty Among Hispanics Rising
Hispanic Brand Loyalty 2006 – 2010
43.6
+48% Change
2010 vs. 2006
29.4
2006 2007 2008 2009 2010
Source: Loyalty data is sourced from Polk’s Registration database. The data only contains and evaluates households in a given time period who are returning to
market to purchase a new vehicle ( sales and leases), where the last vehicle purchased was also a new vehicle (sales and leases). Analysis provided by only
includes Brand-to-Brand evaluation for 2006-2009. Brand Loyal customers are returning customers with a previous new vehicle purchase that decided to
purchase another new vehicle with the same brand. 31Loyal Hispanic Jetta Owners Move
Into Higher-Priced Models
Tiguan
CC
7.5%
Passat
14.7%
Jetta 6.4%
GTI
Other
58.7%
9.3% 3.5%
Source: Polk’s Loyalty RTM & Defection Database, Total US, EED CYE 2010. The data only contains and evaluates households in a given time period who are returning to market
to purchase a new vehicle (sales and leases), where the vehicle disposed was also a new vehicle (sales and leases within past 10 years).. Model Loyalty to Brand customers
are customers who disposed of a model that was previously purchased new and purchased a new model within the same Brand. 32Chevy: Creating Local Market
Connections
República Deportiva (Sports Republic)
Long-running Sunday sports show delivers1 million viewers weekly
La Embajada (The Embassy)
A fully branded expandable 18-wheeler serves as a “rolling embassy” for the show,
attracting consumers where they live and play
La Embajada Tour Results
Chevrolet connected with 80,000 attendees in the 10 leading U.S. Hispanic markets
33Leadership:
Multi-Media Promotion
34Driving The Extra Mile New York Market
60%
Index 110
of Hispanic new vehicle owners
traveled 10+ miles one way to
purchase their last new vehicle.
Compared to 53% of Non-Hispanic NVOs (Index 99)
1 in 2
In this group said Dealer
Financing and Reputation
were top reasons for
selecting a dealership.
(Among Hispanics)
Hispanic Scarborough 2010 Release 2, Total, (Sep09-Aug10); Base: New Vehicle Owner; A18+; NVO means New Vehicle Owner
35Multi-Platform Promotion
Paragon Honda Captures Latinos in New York
Giveaway Promotion
VIP Red Carpet experience to premiere of
Spanish-language movie La Soga
Multi-phase, multi-platform
Promotion: Spanish-language TV, radio, print
Call-to-action: Visit website to enter
Go Viral
Registrants received extra entries when shared
via email/Facebook/Twitter
36The Perfect Social Campaign
Increased sales and
service business
Doubled store’s social
community
Captured large
database of Latino
consumers for future
marketing initiatives
37Leadership:
Community Involvement
38Beyond Advertising:
Community Involvement
Brickell Motors Stands Out in Miami
Camillus House
Services to the homeless and poor
Teacher Appreciation
Buyer Program gives back to leaders in community
Radio Paz
Raised $290,000 through auction of 2 Honda Accords
39Mario Murgado's Brickell Motors is an Anchor of Little Havana
“Mario's one heck of a
presence who motivates others
along the street to make their
businesses look better and help
the area grow…If I need help
with an event or charity, I know I
can count on him.”
Frank Carollo, Miami City
Commissioner
Automotive News, April 25th, 2011
40Leadership:
Dealership Infrastructure
41A Growth Strategy
Located in high density Hispanic area – yet
sales to Hispanics were not reflective of this
Developing infrastructure
Invites and connects with Hispanics in culture
42Success: Earnhardt Honda
43Earnhardt Honda - Growing
Hispanics Sales
Bilingual Staff 2008 2011
Sales people 5 13
Finance and Insurance 0 2
Service Advisor 1 1
Internet Sales 0 1
Receptionist 0 1
Service Cashier 1 1
Total 7 19
Sales Metrics 2008 2011
% of Sales to Hispanics 22% 34%
% of Ad $ to Spanish TV 10% 35%
Spanish-language website N/A Launched 3/2011
44Come to Your
Census!
Hispanics are essential to your growth
Connect with them in culture
Market leaders are earning sales and
developing loyal customers
45Hispanic is their
Secret Weapon
What’s Yours?
46¡GRACIAS!
Thank you!
47Cultural Differences Impact Attitudes and
Behaviors During The Auto Purchasing Process
Non-Hispanic Hispanic
Source: Univision M.A.S. More Auto Sales Focus Groups 2007.
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