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Subaru. Regional TV Market Update . March 2011. RTM is the marketing bureau for Regional free t o a ir TV. www.regionaltvmarketing.com.au. Subaru key models continue to be more popular among regional buyers but coming under pressure in 2011.
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Subaru Regional TV Market Update March 2011
RTM is the marketing bureau for Regional free to air TV www.regionaltvmarketing.com.au
Subaru key models continue to be more popular among regional buyers but coming under pressure in 2011 Subaru derives 34% of national sales from regional – used to be as high as 37% Compact SUV segment has grown by 50% in regional past 5 years more opportunity and more competition Subaru regional sales have been inline with the total market last year and so far this year
Regional TV covers all areas outside capital cities and reaches 36% of population QLD DIARY REG. WA NNSW SNSW VIC TAS
Regional TV coverage includes large cities and fast growing coastal suburbs Gold Coast Newcastle & Central Coast Canberra Wollongong & Illawarra
Diary markets: A diverse mix of urban and rural Darwin Satellite Regional WA Mildura Griffith Port Pirie/ Broken Hill Loxton/Mt Gambier
Populations of major regional TV markets are comparable with the metros NNSW 2,079 SNSW 1,410 People Source: ATR & OZTAM 2011, Nielsen Media Research 2010
Australian population moving North and to the coast. Over 30% growth in 10 years in some regional areas QLD NSW VIC TAS METRO National average Population Increase: 2001 vs. 2011 Source: ATR & OZTAM 2011
Urbanisation and high population growth changing the profile of regional Australia • Seachange: Baby boomers and young families • Lower cost of living and lifestyle are main attractions • Rural populations moving to regional hub towns • Less than 4% of households depend on farming
Seachange… … for baby boomers …for families
“Typical” SeachangerRyan, 36. Wollongong NSW Made the seachange from the “Shire” to the “Gong”. Owns a small business in building trade Above average income & primary focus is kids and lifestyle. Loves footy , cars and teaching kids surfing.
Why has regional spending been more stable and the outlook more positive? • Lower cost of living – less debt • Huge investment in infrastructure • Population growth driving development of local economies • Resources growth impacting many parts of regional: NSW, QLD, WA, SA.
Regional Subaru buyers slightly older, and more financially secure Source: Roy Morgan Research (12 months to Dec 2010- own new Subarubought in the last 5years)
Doubling in number of wealthy people living in regional Australia in past five years People 18-54 with HHI $130k+ or Investments $500K+ Source: Roy Morgan Single Source (12mths to Sep 2010, 2009, 2008, 2007, 2006, 2005 )
1 3 in cars sold are in regional Source: VFACTS January – December 2010 - Regional accounts for 33% of sales excluding Trucks and Buses including utes
New car sales grew in regional by 7% YOY – following better 2009 than metro YOY change in new car sales Source: VFACTS (excluding trucks and buses, including utes)
In 2010 Regional markets contributed 34% of national Subaru sales with Reg. NSW a key volume market Regional sales +7% YOY Metro +11% Subaru Total vehicle sales: Jan to Dec 2010 Source: VFACTS Jan – Dec 2010 vs. 2009 Excl T&B
All Subaru main models had higher market share in Regional Australia – all wheel drive and brand heritage Subaru Model share of respective category Jan to Dec 2010 Source: VFACTS Jan to Dec 2010
2010: Subaru YOY growth by model: Forester and Impreza regional lagged metro Share Subaru Model growth rate for Jan to Dec 2010 Source: VFACTS Jan to Dec 2010 vs. 2009
In 2010 Subaru regional sales growth under performed the market in Reg. NSW and Reg. QLD Subaru YOY change * Jan to Dec 2010 vs. 2009 Source: VFACTS Jan to Dec 2010 vs. 2009 (excl T&B, inclUtes)
In 2011 Subaru sales growth vs. the market trend varies a lot – Reg. QLD performing well Subaru YOY change * Jan to Mar 2011 vs. 2010 Source: VFACTS Jan to Mar 2011 vs. 2010 (excl T&B, inclUtes)
Forester’s historical strength in regional being challenged • Forester’s higher regional BDI has started to slip over past 2-3 years • Regional buyers shifting to new soft road models • Significant increases in regional marketing by competitors
SUV Compact segment has grown by 50% over past five years – similar trend in regional Share SUV Compact share of all category sales* Source: VFACTS *Includes T&B
Forester has traditionally had higher share in regional 2011 Jan-Feb Total TV: $747k Reg share: 30% 2010 Total TV: $3.9m Reg share: 15% Forester share of compact SUV TV spend Subaru Forester share of SUV compact category sales Source: VFACTS and AdQuest
In 2010 Regional buyers shifting to new urban style compact SUV’s Compact SUV: Model growth rate for Jan to Dec 2010 vs. 2009 Source: VFACTS Jan – Dec 2010 vs. 2009 (Excluding Trucks & Buses)
2011: Compact SUV segment continues to grow – Dualis and Outlander Compact SUV: Model growth rate for Jan to Mar 2011 vs. 2010 Source: VFACTS Jan – Mar 2011 vs. 2010 (Excluding Trucks & Buses)
Forester share of compact SUV remains strong in Reg. NSW and QLD – cost efficient markets to increase TV spend Subaru Forester share of SUV compact category sales Jan to Dec 2010 vs. 2009 Source: VFACTS Jan – Dec 2010 vs. 2009
Subaru Forester sales: Regional is 36% of national total Reg. NSW is a key volume market Regional sales +3% YOY Metro +9% Subaru Forester vehicle sales: Jan to Dec 2010 Source: VFACTS Jan – Dec 2010 vs. 2009
Impreza is off to a flying start for 2011 in regional • Impreza regional share declined in 2010 following highs of 2009 • Lancer, i30 and Mazda3 investing large amounts in regional TV and getting strong results
Impreza has always had a higher share of regional small car segment 2008 Jan-Jun Total TV: $2.7m Reg share: 19% 2011 Jan-Feb Total TV: $826k Reg share: 26% 2007 Total TV: $2.9m Reg share: 20% 2010 Total TV: $4.3m Reg share: 17% TV spend Share Subaru Impreza share of Small < $40k category sales Source: VFACTS and AdQuest
In 2010 newer models in small car segment put Impreza under pressure in regional Small < $40K: Model growth rate for Jan to Dec 2010 vs. 2009 Source: VFACTS Jan – Dec 2010 vs. 2009 (Excluding Trucks & Buses)
2011 YTD: Impreza back in higher growth in regional Small < $40K: Model growth rate for Jan to Mar 2011 vs. 2010 Source: VFACTS Jan to Mar 2011 vs. 2010 (Excluding Trucks & Buses)
Subaru Impreza has higher share across most regional markets – Reg. NSW is big growth opportunity Subaru Impreza share of Small <$40k segment sales* Jan to Dec 2010 vs. 2009 Source: VFACTS Jan – Dec 2010 vs. 2009
Regional is 33% of national Imprezasales: Reg NSW is virtually equal to Melbourne Regional sales -6% YOY Metro +3% Subaru Impreza: Jan to Dec 2010 Source: VFACTS Jan – Dec 2010 vs. 2009
Media landscape in regional markets is broadly similar to capital cities – but FTA TV is more popular Source: Roy Morgan Single Source 12 months to Dec 2010, *AGB NMR Panorama 12 mths to Dec 2010
Higher cost efficiency of regional TV means more can be invested to refine and target communications Share of national TV budget Share of national population
Share of total TV spend allocated to regional has gradually increased to over 20% in car category RTV % of national TV ad spend Source: Nielsen Media Research AdEx (incl. Dealer spend)
Regional TV share of individual model campaigns could increase and still remain twice as cost efficient as metro Period: Jan – Dec 2010 Category: Food (Dairy & Dairy Substitutes) & Beverages (Milk) Source: Nielsen Media Research AdEx Note: 50% allocated to multiple product campaigns
Regional consumers have the same attitudes to brands as metro but higher preference for local involvement Source: Roy Morgan Single Source (12mths to Dec 2010)
YOUI CBA MACDONALDS TVC’S view or download at www.regionaltvmarketing.com.au
Regional TV is part of the community… “We live here too” • News & current affairs • Local TV ads • Promotions • Community sponsorships …means greater engagement
Regional TV delivers higher engagement through… RTM SIZZLE REEL view or download at www.regionaltvmarketing.com.au
Subaru’s regional stronghold needs additional support to fend off competitive challenges Affluent regional buyers want the latest models and can afford them Lifestyle and all wheel drive heritage of Subaru is still key – bring it to life through localised promos and support
Subaru Liberty has been consistent with metro for the past four years 2007 Total TV: $1.1m Reg share: 5% 2010 Total TV: $3.7m Reg share: 14% 2011 Jan-Feb Total TV: $262k Reg share: 6% 2005 Total TV: $5.2m Reg share: 4% 2006 Total TV: $3.1m Reg share: 5% 2008 Total TV: $1.7m Reg share: 30% TV spend Share Subaru Liberty share of Medium < $60k category sales Source: VFACTS and AdQuest
Subaru Liberty vehicle sales Regional is 29% of total national sales Regional sales +15% YOY Metro +10% Subaru Liberty vehicle sales: Jan to Dec 2010 Source: VFACTS Jan – Dec 2010 vs. 2009
Subaru Liberty market share has wide spread with Reg. NSW key market Subaru Liberty share of Medium < $60k category sales Jan to Dec 2010 vs. 2009 Source: VFACTS Jan – Dec 2010 vs. 2009
VW Jetta and Liberty regional outperformed metro in sales YOY Medium < $60K: Model growth rate for Jan to Dec 2010 vs. 2009 Source: VFACTS Jan – Dec 2010 vs. 2009 (Excluding Trucks & Buses)
Reg. TV CPM is 45% below metro TV average and delivers double the cost efficiency and ROI Index TV market CPM indices National average CPM P18+ = 100 Source: Regional TV Agency Survey 2010