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

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

Demographic

Mark Williams | Kelley Blue Book | Sr. Market Intelligence Analyst | [email protected]

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%

Hispanics Consider Import Brands When Looking At Non-Luxury Vehicles

34% Toyota23% Nissan

31% Honda26% Chevrolet

27% Ford

BrandWatch Q1 & Q2 2014. Hispanics, N = 293

Toyota Has The Highest Consideration Among Hispanics


When Considering A Luxury Brand, Hispanics Favor Imports


BMW – 9%

Audi – 6%

Lexus – 6%

Acura – 8%

Luxury consideration among Hispanics is very low.

Hispanics Consider BMW More Than Other Luxury Brands


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

Hispanics Want Cars That Are Practical

BrandWatch Q1 & Q2 2014. Hispanics, N = 246, Caucasian N = 4247, African American N = 204, Asian N = 98

1. Durability/Reliability2. Safety3. Affordability4. Fuel Efficiency5. Driving Performance

Hispanics

1. Durability/Reliability2. Safety3. Driving Comfort4. Driving Performance5. Affordability

Caucasians

1. Durability/Reliability2. Safety3. Affordability4. Driving Performance5. Driving Comfort

African Americans

1. Durability/Reliability2. Safety3. Fuel Efficiency4. Driving Comfort5. Driving Performance

Asians

Segment Consideration

More segment differences seen when there are more groups


Top 3 Segments Hispanics Will Consider

1. Both gender equally likely to consider Non-Lux Sedan2. Hispanic females more likely to choose Non-Lux Utility Vehicle3. Hispanic males more likely to consider Pickup

47%44%*

18%*

BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. *=significant at 90%

Hispanic Males More Likely to Consider Non-Lux Coupe Than Non-Hispanic Males

Top 5 Coupe Models1. Ford Mustang

(4%)*2. Chevrolet Camaro

(3%)*3. Honda Accord

Coupe (3%)*4. Dodge Challenger

(3%)*5. Honda Civic Coupe

(2%)*

• 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!


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%)*


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

Hispanics Flock To Non-Luxury Midsize Sedans

BrandWatch Q1 & Q2 2014. 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

With Proper Brand Education, Hispanics Can Get Into Luxury Models

Non-Luxury Midsize Sedans Luxury Midsize SedansHonda 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 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931

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)


Few Hispanics Are Considering Small CUVs

BrandWatch Q1 & Q2 2014. Hispanics, N = 293. Non-Hispanics, N = 4931. * = 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%)

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%)


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


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%)


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

Make Familiarity ConsiderationToyota 49% 13%Honda 41% 11%Ford 45% 10%

Chevrolet 43% 10%Nissan 38% 8%

https://www.facebook.com/fordenespanol



https://www.facebook.com/ToyotaLatino

https://www.facebook.com/NissanEspanol

https://www.facebook.com/NissanEspanol

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

Make Familiarity ConsiderationHyundai 36% 4%Dodge 43% 4%Jeep 36% 4%Kia 32% 4%

BMW 30% 3%Mazda 38% 3%

https://www.facebook.com/Hyundai.es

https://www.facebook.com/Hyundai.es

http://www.ispot.tv/ad/71gl/2104-kia-optima-pescado-spanish

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

Make Familiarity ConsiderationRam 55% 1%GMC 45% 3%

Cadillac 38% 2%MINI 34% 1%

Chrysler 34% 1%Acura 33% 3%Audi 33% 2%Scion 32% 1%

Mercedes-Benz 31% 1%Subaru 30% 1%Buick 28% 0%

Mitsubishi 23% 1%

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

Make Familiarity ConsiderationRam 55% 1%GMC 45% 3%

Cadillac 38% 2%MINI 34% 1%

Chrysler 34% 1%Acura 33% 3%Audi 33% 2%Scion 32% 1%

Mercedes-Benz 31% 1%Subaru 30% 1%Buick 28% 0%

Mitsubishi 23% 1%

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Mark Williams

Kelley Blue Book

Sr. Market Intelligence Analyst

[email protected]

Documents

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