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Selling to the Hispanic Market: The Dealership’s Fastest Growing Demographic Mark Williams | Kelley Blue Book | Sr. Market Intelligence Analyst |

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Presentation on theme: "Selling to the Hispanic Market: The Dealership’s Fastest Growing Demographic Mark Williams | Kelley Blue Book | Sr. Market Intelligence Analyst |"— Presentation transcript:

1 Selling to the Hispanic Market: The Dealership’s Fastest Growing Demographic Mark Williams | Kelley Blue Book | Sr. Market Intelligence Analyst |

2 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 & Q Hispanics, N = 293. Non-Hispanics, N = significant at 90%

3 Hispanics Consider Import Brands When Looking At Non-Luxury Vehicles 34% Toyota 23% Nissan 31% Honda 26% Chevrolet 27% Ford BrandWatch Q1 & Q Hispanics, N = 293

4 Toyota Has The Highest Consideration Among Hispanics BrandWatch Q1 & Q Hispanics, N = 293

5 When Considering A Luxury Brand, Hispanics Favor Imports BrandWatch Q1 & Q Hispanics, N = 293 BMW – 9% Audi – 6% Lexus – 6% Acura – 8% Luxury consideration among Hispanics is very low.

6 Hispanics Consider BMW More Than Other Luxury Brands BrandWatch Q1 & Q Hispanics, N = 293

7 Hispanics Are Willing To Spend The Least On A New Car, However, They Are Willing To Have A High Monthly Payment BrandWatch Q1 & Q Hispanics, N = 253, Caucasian N = 4282, African American N = 213, Asian N = 106

8 Hispanics Want Cars That Are Practical BrandWatch Q1 & Q Hispanics, N = 246, Caucasian N = 4247, African American N = 204, Asian N = 98 1.Durability/Reliability 2.Safety 3.Affordability 4.Fuel Efficiency 5.Driving Performance Hispanics 1.Durability/Reliability 2.Safety 3.Driving Comfort 4.Driving Performance 5.Affordability Caucasians 1.Durability/Reliability 2.Safety 3.Affordability 4.Driving Performance 5.Driving Comfort African Americans 1. Durability/Reliability 2. Safety 3. Fuel Efficiency 4. Driving Comfort 5. Driving Performance Asians

9 Segment Consideration More segment differences seen when there are more groups BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = significant at 90%

10 Top 3 Segments Hispanics Will Consider 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 47% 44%* 18%* BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = *=significant at 90%

11 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! BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = *=significant at 90%

12 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%)* VW Jetta(3%)* Ford Focus (3%) Nissan Sentra(2%)* BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = *=significant at 90%

13 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%) Ford Fusion (4%) Nissan Altima(4%) Audi A4 (3%)* BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = *=significant at 90%

14 Hispanics Flock To Non-Luxury Midsize Sedans BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = 4931 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). 9% consideration 6% consideration

15 With Proper Brand Education, Hispanics Can Get Into Luxury Models Non-Luxury Midsize Sedans Luxury Midsize Sedans Honda Accord: 9% consideration Toyota Camry: 9% consideration Acura ILX: 0.3% consideration Buick Verano: 0% Consideration MSRP: $23,545 MSRP: $23,250 MSRP: $27,795 MSRP: $24,625 For the same price, I can own a Buick Verano! BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = 4931

16 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 & Q Hispanics, N = 293. Non-Hispanics, N = significant at 90%

17 Few Hispanics Are Considering Small CUVs BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = * = significant at 90% 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. Honda CR-V (5%) Toyota RAV4 (3%)Ford Escape (3%)* Nissan Rogue (3%)

18 The Jeep Grand Cherokee and Kia Sorento Have The Highest Consideration Among Hispanics For Midsize CUVs Jeep Grand Cherokee (4%) Kia Sorento (4%)* Honda Pilot (3%) Ford Explorer(3%) Toyota Highlander(3%) BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = * = significant at 90%

19 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 & Q Hispanics, N = 293. Non-Hispanics, N = significant at 90%

20 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. – 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 Nissan Frontier (3%)* Ford F150 (5%) Silverado F1500 (6%)* Toyota Tacoma (4%) BrandWatch Q1 & Q Hispanics, N = 293. Non-Hispanics, N = * = significant at 90%

21 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 Ford en Espanol – Toyota Latino Toyota Latino – Nissan Espanol Nissan Espanol

22 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 Hyundai Espana – Kia Optima Spanish Commercial Kia Optima Spanish Commercial Hispanics are considering some models significantly more than Non Hispanics – Kia Sorento, Hyundai Accent

23 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

24 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

25 Contact Info Full Name: Company: Job Title : Share an important takeaway you received from this session using hashtag #DD17 for a chance to win an iPad. Mark Williams Kelley Blue Book Sr. Market Intelligence Analyst


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