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Selling to the Hispanic Market: The Dealership’s Fastest Growing Demographic

Selling to the Hispanic Market: The Dealership’s Fastest Growing Demographic. Mark Williams | Kelley Blue Book | Sr. Market Intelligence Analyst | mwilliams@kbb.com. Hispanics Have High Consideration For Japanese Brands.

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Selling to the Hispanic Market: The Dealership’s Fastest Growing Demographic

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

  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 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. significant at 90%

  3. Hispanics Consider Import Brands When Looking At Non-Luxury Vehicles 27% Ford 34% Toyota 23% Nissan 26% Chevrolet 31% Honda BrandWatch Q1 & Q2 2014. Hispanics, N = 293

  4. Toyota Has The Highest Consideration Among Hispanics BrandWatch Q1 & Q2 2014. Hispanics, N = 293

  5. When Considering A Luxury Brand, Hispanics Favor Imports Audi – 6% Acura – 8% BMW – 9% Lexus – 6% Luxury consideration among Hispanics is very low. BrandWatch Q1 & Q2 2014. Hispanics, N = 293

  6. Hispanics Consider BMW More Than Other Luxury Brands BrandWatch Q1 & Q2 2014. 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 & Q2 2014. Hispanics, N = 253, Caucasian N = 4282, African American N = 213, Asian N = 106

  8. Hispanics Want Cars That Are Practical Hispanics Durability/Reliability Safety Affordability Fuel Efficiency Driving Performance Asians Caucasians 1. Durability/Reliability 2. Safety 3. Fuel Efficiency 4. Driving Comfort 5. Driving Performance Durability/Reliability Safety Driving Comfort Driving Performance Affordability African Americans Durability/Reliability Safety Affordability Driving Performance Driving Comfort BrandWatch Q1 & Q2 2014. Hispanics, N = 246, Caucasian N = 4247, African American N = 204, Asian N = 98

  9. Segment Consideration More segment differences seen when there are more groups BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. significant at 90%

  10. Top 3 Segments Hispanics Will Consider 47% 44%* 18%* Both gender equally likely to consider Non-Lux Sedan Hispanic females more likely to choose Non-Lux Utility Vehicle Hispanic males more likely to consider Pickup BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. *=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! • Top 5 Coupe Models • Ford Mustang (4%)* • Chevrolet Camaro (3%)* • Honda Accord Coupe (3%)* • Dodge Challenger (3%)* • Honda Civic Coupe (2%)* BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. *=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%)* Nissan Sentra(2%)* Ford Focus (3%) VW Jetta(3%)* BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. *=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%) Nissan Altima(4%) Ford Fusion (4%) Audi A4 (3%)* BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. *=significant at 90%

  14. Hispanics Flock To Non-Luxury Midsize Sedans 6% consideration 9% consideration • 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). BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931

  15. With Proper Brand Education, Hispanics Can Get Into Luxury Models Non-Luxury Midsize Sedans Luxury Midsize Sedans Honda Accord: 9% consideration Acura ILX: 0.3% consideration MSRP: $27,795 MSRP: $23,545 For the same price, I can own a Buick Verano! Toyota Camry: 9% consideration Buick Verano: 0% Consideration MSRP: $23,250 MSRP: $24,625 BrandWatch Q1 & Q2 2014. 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 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. significant at 90%

  17. Few Hispanics Are Considering Small CUVs Honda CR-V (5%) Toyota RAV4 (3%) Ford Escape (3%)* Nissan Rogue (3%) • 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. BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. * = significant at 90%

  18. The Jeep Grand Cherokee and Kia Sorento Have The Highest Consideration Among Hispanics For Midsize CUVs Jeep Grand Cherokee (4%) Honda Pilot (3%) Kia Sorento (4%)* Toyota Highlander(3%) Ford Explorer(3%) BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. * = 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 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. 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%)* Toyota Tacoma (4%) Silverado F1500 (6%)* Ford F150 (5%) BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. * = 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 • Toyota Latino • 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 • 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. Mark Williams Kelley Blue Book Sr. Market Intelligence Analyst mwilliams@kbb.com

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