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PLACE IMAGE HERE New Zealand Vehicle Fuel Efficiency Labelling Marketing overview Paul Cording March 2015
An endorsed brand architecture
EECA manages mandatory and voluntary labels across various industries and sectors. EECA’s Labels Energy Rating Label (Mandatory) Energy Star Label (Voluntary) Energywise Approved Fuel Efficient Tyre Mark (Voluntary) NabersNZ Commercial Building Performance (Voluntary) Vehicle Fuel Economy Label (Mandatory) Vehicle Fuel Economy Badge (Voluntary)
Vehicle Fuel Economy Labelling (VFEL) Mandatory Vehicle Fuel Economy Labelling Scheme –Introduced in 2008 –All new and used cars must display the label if available –Provides a star rating, L/100km and annual running costs A simplified voluntary Vehicle Fuel Economy Badge –Introduced in 2014 –To counter distributors making their own versions –To provide a simple and consistent approach in all advertising Introduction to the New Zealand Scheme
Work with relevant industry stakeholders –Need engagement, support and compliance Understand the consumer mindset –Tap into key insights, benefits and barriers Intercept the customer journey –Place media along the path to purchase Measure our impact/effectiveness –Show the value of what we do VFEL Strategic Approach How do we go about it?
PLACE IMAGE HERE Work with relevant industry stakeholders
The Industry Stakeholders Align with relevant Influencers and trusted vehicle bodies eg. Automobile Association Motor Trade Association
The Industry Stakeholders Work with vehicle distributors –Reduce mixed messages around fuel efficiency and show the value of a consistent market approach –Understand their commercial drivers and make it easy for them to engage and see value working with us –Sign partnership agreements to get commitment
PLACE IMAGE HERE Understand the consumer mindset
Prioritise car buyers as our primary audience Recognise people often buy a car based on lifestyle need Inform, don’t tell Raise label awareness and understanding Influence their purchase behaviour The consumer mindset Understand why consumers buy cars
11 Base: all recent car buyers 2014 (n=202) What sort of vehicle are people looking for? Q2. Type of vehicle Q3. Size of engine Q2b. Type of fuel Green = Significantly higher than previous year, Red = Significantly lower than previous year Q4. Likely age of car *Note: new category added in 2014
Q10b When you bought a car, how important were the following factors? Base: all recent car buyers 2014 (n=202) 12 Understand their key purchase considerations Not at all important Not important Neither important or unimportantImportantVery important Don’t know Any importance Green = Significantly higher than last year Red = Significantly lower than last year
PLACE IMAGE HERE Intercept the customer journey
The customer journey What are people looking for in a car? Where do they get information from? Who do they talk to? Where do they go to buy? What journey do customers go on from decision to buy through to purchase
Green = Significantly higher than last year, Red = Significantly lower than last year 15 Customer Journey : main information and resources used Note: first asked in 2014 Maintaining a strong presence where consumers look for information on cars gives EECA the opportunity to further increase VFEL awareness and understanding.
16 Base: all recent car buyers 2014 (n=202) How do people buy cars? Q15. Where did you buy the car from? Green = Significantly higher than previous year, Red = Significantly lower than previous year Two in three (68%) bought their car from a dealership
In home Pre store In store The customer journey Mapping the Path to Purchase
In home TV –Overarching ‘Energy Spot’ Campaign Digital –Advertising (and the power of trademe) –Website and web tools –SEO / SEM –Social Media Where people research cars
What is trademe? NZ’s answer to eBay - 70% of all domestic web traffic It is double the size of any other channel relating to new and used car sales Prepopulate with car fuel efficiency data
1.2M consumers visit www.energywise.govt.nz every year www.energywise.govt.nz Over 20,000 people a month use our VFEL web tool We also provide the tool to partners to allow them to provide model comparisons on their own websites The Fuel Economy Tool Provide consumers with a way to know how their current (or intended) car performs.
Pre Store Billboards –Support distributor messaging Bus stop Advertising –Very targeted placement Positioned within 100M of car dealerships On the way to the dealership
In Store Compliance –Ensuring the marketing investment is converted at the point of sale –Dealership label display compliance The point of purchase
The Path to Purchase Engage throughout the customer journey In Home Pre Store In Store
PLACE IMAGE HERE Measuring our impact / effectiveness
We measure consumer engagement amongst: Those who recently brought a car - recent car buyers Those in the market for a car - intended car buyers Label awareness, understanding and influence: Three in five car buyers are aware of the VFEL: VFEL understanding is also strong with 50% of people able to describe it in some detail. 60% of car buyers aware of the VFEL also rated it as an influential information source. 25 Annual Research - Key Findings
We really want to unpack the role of each of our labels and the relevance and influence each of them have on the market 26 New labels research is currently in field
Using Behavioural Insights Look for ways to ‘nudge’ people’s behaviour –Simply providing information, educating people and assuming they will make rational decisions is not sufficient –Applying models like MINDSPACE to unlock real behaviour change potential Agreed framework to apply across all of our programmes –COM-B
28 High level COM-B model for buying a fuel efficient car B C O M Key % = top 3 box Thicker line = stronger relationship Larger bubble = stronger importance to stated behaviour It is easy It is important I am confident I will buy a fuel efficient car because….. 72% Motivation is having the biggest impact on behaviour 23% 31%
Future Challenges Using behavioural insights effectively (and measuring the impact) Greater engagement with distributors The introduction of new vehicle technologies
PLACE IMAGE HERE Thank You
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