- Propane Studio

auto
industry
propanestudio.com
san francisco
[email protected]
415.550.8692
private & confidential
july 19th 2013
agenda
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industry overview
car manufacturers
car dealers
car buying behaviors
leveraging new technology
industry
overview
industry overview
statistics
cars on the
road
245 M1
expected sales
2013 $15.5 M2
total sales
jan-june
$7.8 M3
average price of
a car
$30,3034
dealership
revenue
$609 B5
new car dealers
17,540 (US)
1,307 (CA)6
1. Whitehurst, Roslyn. "The Number of Older Vehicles on the Road Increased More than 17 Million Since 2009." Experian. N.p., 27 June 2012. Web.
2. Snyder, Jesse. "US Sales pace in August Projected to Top 15.5 Million Analyst Predict." Automotive News. N.p., 28 Aug. 2013. Web.
3. Durbin, Dee-Ann. "Auto Sales Keep Picking up Speed." Philly.com. N.p., 04 July 2013. Web.
4. MoneyBuilder. "Average Price of a New Car?" Forbes. Forbes Magazine, 10 May 2012. Web.
5-6."NADA Data." State of the Industry Report 2012. N.p., 2012. Web.
industry overview
holding companies
General Motors (Buick, Cadillac, Chevrolet, GMC)
Volkswagen Group AG (Audi, Bentley, Lamborghini, Porsche, Volkswagen)
Toyota Motor Corp (Lexus, Scion, Toyota)
Hyundai Motor (Kia, Hyundai)
Ford Motor Company (Ford, Lincoln)
Nissan (Datsun, Infiniti, Nissan)
Fiat S.P.A (Chrysler, Dodge, Ferrari, Fiat, Jeep, Maserati)
Honda Motor Company (Acura, Honda)
BMW AG (BMW, MINI, Rolls-Royce
Daimler AG (Mercedes, Mitsubishi)
Tata Motors (Jaguar, Land Rover, Tata, Daewoo)
industry overview
fastest growing car companies
1.volkswagen
2.BMW
3.BAIC
4.toyota
5.kia &
hyundai (tie)
6.SAIC
motor
7.FAW
group
8.Geely
automotive
9.nissan
10.tata
motors
7."World's Fastest Growing Car Companies." Forbes. Forbes Magazine, n.d. Web. <http://www.forbes.com/pictures/eglg45fgfmj/what-auto-execs-think-3/>.
industry overview
auto manufacturers by market share
Nissan
10%
Honda
12%
GM
24%
Chrysler-Fiat
15%
Ford
20%
Toyota
19%
figure 1."Auto Sales - Markets Data Center - WSJ.com." WSJ.com. N.p., 04 Sept. 2013. Web
car
manufacturers
connected cars
new technology
the connected car enables the exchange
of information between the car and its
surroundings via the Internet. the
connection is provided by a transmitter/
receiver unit built into the vehicle or via a
3rd party system such as a smartphone8
8."Trend Analysis: Connected Car 2015." MBtech Consulting. Mercedes Benz Consulting, n.d. Web.
car manufacturers
challenge vs. opportunity
the challenge:
original equipment manufacturers are having difficulties
generating revenue from connected cars for two reasons, first
connected vehicles are costly to build, second it is hard to
convert customers from the trial phase to adoption of the
technology
the opportunity:
however, connected car technology has the ability to add
significant value to customers through the creation of a better
user experience and the continuation of ongoing customer
relationships9
9."The Connected Car Industry Report 2013." Telefonica Digital. Telefonica Digital, 2013. Web.
car manufacturers
benefits of connected cars
1. increase in road capacity
a. one stretch of road will be able to safely accommodate more cars,
eliminating congestion and reducing accidents
2. connected communities
a. connected car sharing could lead to a large reduction in vehicle
ownership
3. personalization
a. every car could feel like your car, cars that come to your location and
are smart enough to remember individual drivers’ preferences
4. virtual environments
a. heads up displays, that allows customers to keep their eyes on the
road, sensors that recognize hazards and points of interest along the
way10
10."The Connected Car Industry Report 2013." Telefonica Digital. Telefonica Digital, 2013. Web.
car manufacturers
embracing connectivity
Luxury Vehicles
Economy Vehicles
built-in
systems
built-in systems
nissan
system: NissanConnect partnered with Google, Pandora and Intel
features: real time traffic updates, predictive 5 day weather forecasts, hands
free communication (texts and calls), music streaming
connectivity: customer’s Bluetooth phone
pricing: $1090 for the package, first 3 years free, after that yearly subscription
11.Nissan USA. N.p., n.d. Web. <http://www.nissanusa.com/cars/sentra/features/>.
built-in systems
volvo
system: Sensus Connected Touch partnered with Ericsson
features: full internet browser, real time traffic updates and directions,
points of interest, service center locator, weather updates, voice
control
connectivity: customer phone data plan
pricing: $2,058 for the package12
12."Volvo Sensus Connected Touch." Sensus Connected Touch. N.p., n.d. Web. <http://www.volvocars.com/intl/sales-services/sales/sensus-connected-touch/pages/
default.aspx>.
built-in systems
mini cooper
system: MINIConnected USB integration
features: hands free voice recognition, music playlists, Google local search,
apps (Facebook, twitter etc.), send to car, navigation
connectivity: customer’s Bluetooth phone
pricing: package for $2,25013
13."What Is MINI Connected? Official MINI Video." YouTube. YouTube, 07 Mar. 2011. Web. 27 Sept. 2013. <http://www.youtube.com/watch?v=1zvp7D5KGtE>.
built-in systems
porsche
system: Porsche connect
features: voice command, navigation, music and contacts
transferring, mobile app
connectivity: customer’s Bluetooth phone
pricing: package for $93014
14."Bluetooth® Communications - Porsche Service - Service and Accessories - Dr. Ing. H.c. F. Porsche AG." Bluetooth® Communications - Porsche Service Service and Accessories - Dr. Ing. H.c. F. Porsche AG. N.p., n.d. Web. <http://www.porsche.com/usa/accessoriesandservices/porscheservice/bluetooth/>.
built-in systems
gmc
system: Intellilink
features: internet radio (Sirius, Pandora), hands free calling, voice
commands and controls, real time traffic and directions, points of
interest, updated info about movies, weather and fuel
connectivity: customer’s Bluetooth phone
pricing: free for first 3 mo.,, then monthly subscription15
15."GMC." Infromant System. N.p., n.d. Web. <http://www.gmc.com/intellilink-infotainment-system.html>.
brought-in
systems
brought-in systems
mercedes
system: Mbrace powered by Hughes Telematics
features: Send2Benz, route assistance, concierge, points of interest,
location based traffic, in vehicle apps (Facebook, yelp etc.)
connectivity: monthly or yearly subscription
pricing: 3 package options ranging from $280/yr. to $14/mo16
16."Mbrace In-Vehicle Telematics Technology and Personal Assistance | Mercedes-Benz." Mercedes-Benz USA. N.p., n.d. Web. <http://www.mbusa.com/
mercedes/mbrace>.
brought-in systems
kia
System: UVO system powered by Microsoft
Features: voice recognition, a Send2Car app, roadside assistance (crash
notification and 911 connect), vehicle maintenance reminders
Connectivity: customer’s Bluetooth phone
Pricing: customer’s data plan17
17."Kia Motors - Experience UVO." Kia Motors - Experience UVO. N.p., n.d. Web. <http://www.kia.com/us/uvo/>.
brought-in systems
toyota
system: Entune uses mobile apps and data services
features: apps (iheartradio, movietickets, opentable etc.), stocks, fuel
prices, weather, traffic updates, sports
connectivity: customer’s data plan
pricing: free for 3 years, then monthly subscription $5-$2818
18."Toyota Entune - IHeartRadio." YouTube. YouTube, 14 Dec. 2012. Web. <http://www.youtube.com/watch?v=vLGeXslNObU>.
combination
systems
combination systems
bmw
system: ConnectedDrive uses a built in SIM card and iPhone integration
features: send-to-car app, heads up display, real time traffic updates,
vehicle maintenance reminders, personal assistant (directions,
destinations etc.), hands free calling and messaging
connectivity: customer’s data plan
pricing: 3 year trial period, then $182.21 /yr19
19."BMW Vision ConnectedDrive - How to Steal Jewellry." YouTube. YouTube, 12 Aug. 2011. Web. 2013. <http://www.youtube.com/watch?v=P-12wG6V46U>.
combination systems
lexus
system: Enform
features: app suite (pandora, bing, opentable etc.), real time weather
and traffic updates, destination services, roadside assistance, stolen
vehicle location, collision notification
connectivity: customer’s data plan
pricing: 1 yr. free, then from $139.50-$264.90 /yr20
20."2013 Lexus Enform App Suite." YouTube. YouTube, 14 June 2012. Web. <http://www.youtube.com/watch?v=dGwDUzKD9R0>.
combination systems
audi
system: Audi Connect w/built in wi-fi hotspot
features: Google earth, points of interest, travel information, weather
reports, fuel prices, send to car, voice control
connectivity: customer’s data plan
pricing: partner with T-Mobile plans for $15/mo21
21."Audi Connect." In Car WiFi. N.p., n.d. Web. <http://www.audiusa.com/innovation/intelligence/audi-connect>.
combination systems
chrysler
system: Uconnect
features: built in wi-fi, in vehicle apps (iheartradio, Pandora etc.),
emergency assistance (stolen vehicle, 911), voice texting, vehicle
performance stats, send-to-car
connectivity: customer’s data plan and Bluetooth enabled phone
pricing: subscription from $9.99/day to $34.99/month22
22."Chrysler Uconnect." Chrysler Uconnect. N.p., n.d. Web. <http://www.driveuconnect.com/>.
combination systems
ford
system: Ford Sync
features: voice control for hands free calling and texting, music
playback, turn by turn directions, vehicle health report, 911 assist, in car
apps, built in wi-fi
connectivity: customer’s Bluetooth phone
pricing: subscription for wi-fi23
23."Ford Sync." Ford Sync. Ford, n.d. Web. <http://www.ford.com/technology/sync>
combination systems
chevy
system: Chevy MyLink
features: hands free calling/messaging, app integration (Pandora, Sirius
Radio etc.), voice control
connectivity: customer’s Bluetooth phone
pricing: unknown24
24."Chevrolet MyLink." Take Control. Chevy, n.d. Web. <http://www.chevrolet.com/mylink-vehicle-technology.html>.
connected cars
summary
the internet of things is the way of the future. Auto
Manufacturers will experience the most success when they are
able to provide customers with personalized features they need
at an affordable price.
connected cars
opportunities for the future
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interactive touchscreen interfaces
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augmented reality GPS (directions projected on the road)
mobile app development (send-to-car feature)
heads-up display (Mercedes pointing prototype)
enhanced car windows (Toyota zooming prototype)
rearview cameras (Keio University Japan transparent
backseats)
car sharing
new idea
car sharing is a version of car rentals
where users rent cars for a short
period of time often by the hour or
for the day. car sharing gives
customers access to vehicles without
the cost and worry of ownership.
car sharing
bmw drive now
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premium car sharing by bmw, mini & sixt
available in san francisco
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users join and then receive their
individual drivenow id
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they can locate cars via the drivenow
app or site
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and drive for as little or long as they
want ($12 for first 30 mins and .32 for
each additional min or $90 for the day)
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cars can be dropped off at any drivenow
station25
25. "DriveNow." BMW. N.p., n.d. Web. <https://us.drive-now.com>.
car clubs
new idea
car clubs allow individuals to
purchase vehicle packages, giving
them access to a variety of luxury
cars. customers can experience
these vehicles for a allocated
number of days per year based on
the their individual plans.
car clubs
club sportiva
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gives car connoisseurs
access to a luxury fleet of
vehicles for a monthly
membership fee.
•
the club takes care of the
cost of depreciation,
insurance and maintenance
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members enjoy the cars
without the inconvenience of
ownership26
26."Exotic Car Rentals, Exotic Car Tours, Club Memberships." Club Sportiva. N.p., n.d. Web. <http://clubsportiva.com/>.
car sharing & car clubs
summary
successful companies will have a wide reach and superior
customer service. car pickup locations will be widespread and
maybe, in the future the vehicle will drive to the customer.
representatives will be accessible to customers via all digital
channels, including in the vehicle interface.
car sharing & car clubs
opportunities for the future
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seamless and interactive websites that let users browse,
schedule and reserve vehicles
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this also includes a mobile component for bookings on the
go
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smart car interface systems that remember drivers
preferences
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interfaces with video/audio/augmented reality capabilities
that enable customers to access company representatives
car
dealers
car buying goes digital
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dealers are no longer the
source of product information
•
buying conversations are
happening online instead of
at the dealership
•
dealers are approached much
later in the game27
27. Boyle, Matthew. "Why Car Dealers Are Failing Online Customers." Why Car Dealers Are Failing Online Customers. SlideShare, 27 Sept. 2012. Web.
car
buying
behaviors
preshopping
pre-shopping
buyers gather info online
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85% shop online first where
they can easily compare prices
and vehicle models
•
64% consult sites such Kelly
Blue Book to get the
manufacturer’s invoice price
•
25% have used or will use
Facebook as a resource while
shopping for their next
vehicle28
28. "Have You Met the New Car Shopper?" 2013 New Car Guide. Cars.com, 2013. Web.
pre-shopping
sites for buyers
pre-shopping
sites for buyers
pre-shopping
sites for buyers
pre-shopping
sites for buyers
pre-shopping
sites for buyers
pre-shopping
buyers explore financing options
in addition to pre-shopping on sites,
smart car buyers tend to deal with
financing ahead of time.
•
finance department is the biggest
profit center for dealerships
•
shop interest rates from local
banks or credit unions
•
bring newfound knowledge to the
dealership and present it to the
salesman and challenge him to
match or beat your rate29
29. Munroe, Brian. "Buying a Car: What to Know Before You Go." Car and Driver. N.p., June 2009. Web.
dealership
shopping
dealership shopping
the independent buyer
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car buyers want to remain
anonymous until they are
ready to buy30
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they are interested in
engaging with technology like
mobile apps, interactive kiosks,
and virtual videos to
independently and easily
access vehicle information
30. Bunkley, Nick. "Why Dealers Should Embrace 'the Age of Transparency'"Automotive News. N.p., 22 Apr. 2013. Web.
dealership shopping
the independent buyer
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use smartphones for tasks
closer to purchase
•
33% feel that info attained
from their mobile devices is
essential in their vehicle
purchase
•
43% use smartphones on the
dealership floor31
31. "Have You Met the New Car Shopper?" 2013 New Car Guide. Cars.com, 2013. Web.
dealership shopping
the independent buyer
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enjoys engaging with a series of
interactive kiosks and tv displays
•
this allows customers to view
features and build their own car
from scratch
•
tesla stores as pictured on the
left, are an excellent example of
this new dealership experience
that is not only interactive, but
incorporates digital technology
next generation experience
audi digital showroom
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audi opened the world’s first digital
dealership in london during 2012
•
the dealership is two story and features
only 3 cars on display that rotate weekly
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customers have the freedom to wander
the floors, interact with paint and
leather samples and manipulate car
designs via in store touchscreens
•
customers can also schedule test
drives, negotiate and purchase vehicles
all from the digital dealership
•
buyers believe this digital experience is
much more relaxed and places them at
the center of the buying experience32
32. Laird, Jeremy. "Audi's Digital Showroom Is the Ultimate Car Buying Experience."TechRadar. N.p., 03 Dec. 2013. Web.
car buying behaviors
summary
successful dealerships will be the ones that leverage technology
to quickly deliver car buyers with customized relevant
information. this information will be consistent and available on
all digital channels. no matter what customers will be connected,
whether they choose to pre-shop online or engage with mobile
devices and other technology on the dealership floor.
car buying behaviors
opportunities for the future
•
create intelligent, easy to navigate sites that combine all
the resources customers (reviews, invoice price
information, financing etc.) use when pre-shopping new
cars
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ensure these sites are responsive and function seamlessly
on mobile devices
•
build smart interactive touchscreens that live on the
dealership floor to engage customers
leveraging
new
technologies
mobile
sales tool
•
integration of mobile devices and
apps for dealers to use on the
sales floor
•
features Include: direct
communication and the ability to
send tailored messages to
customers, access analytical
information and DMS and CRM
integration33
33. "FUSION Mobile Car Dealer Websites." Click Motive. N.p., n.d. Web. <http://clickmotive.com/mobile-car-dealer-websites.html>.
the differences
dms vs. crm
dealership management system
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track vehicle inventory & sales
calculate insurance & financing
track customers (follow-up)
manage accounting
manage dealer website
calculate commissions for sales
staff
track purchase orders
customer relationship management
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track marketing efforts
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track client responses, leads
and deals
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manage customer requests
and rewards
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schedule appointments
measure campaigns over
multiple channels
integrate social media35
manage parts inventory
manage work orders
schedule appointments34
34. "Dealership Management System." Wikipedia. Wikimedia Foundation, 09 Dec. 2013. Web.
35. "Customer Relationship Management." Wikipedia. Wikimedia Foundation, 26 June 2013. Web.
tablet
sales tool
•
intellacar is a way to
revolutionize the sales process
and empower reps to close more
sales
•
reps are led through the sales
process from greeting to
delivery
•
they can even demonstrate car
features through videos and
illustrations and show customers
instantly how different feature
packages can enhance a car36
36."IntellaCar Is the Game-Changer That Transforms Shoppers IntoBuyers." IntellaCar. N.p., n.d. Web. <http://www.intellacar.com/>.
mobile
customer engagement tool
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creating custom apps that
give loyal customers access
to coupons and benefits
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features: dealer directions
and contact info, inventory
search and payment
details37
37. Long, Kimberly. "The Importance of Mobile Websites for Dealerships." Internet Department. Auto Dealer Monthly, June 2011. Web.
mobile
customer engagement tool
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QR codes next to traditional
window labels so customers
can access information
about vehicles quickly and
easily
•
features include: record of
saved vehicles, book test
drives on the spot38
38. Long, Kimberly. "Incorporating QR Codes into Dealership Marketing." Article. Auto Dealer Monthly, June 2011. Web.
software
inventory management tool
•
VinManager allows dealers to
access stock numbers
directly
•
they can use the VinCamera
to take and upload photos
and videos of vehicles and
print customized window
stickers
•
dealers also have access to
integrated pricing tools, DMS
integration tool that
automatically adds or
removes vehicles from
inventory39
39. "Take Your Automotive Inventory Everywhere." VinSolutions. N.p., n.d. Web. <http://www.vinsolutions.com/inventory-overview.aspx>.
software
other vinsolution tools
online
wholesale buying & selling tool
40. OVE.com. N.p., n.d. Web. <https://www.ove.com/login>.
41. "Manheim." N.p., n.d. Web. 30 Sept. 2013. <http://www.manheim.com/>.
•
allow dealers to purchase
vehicles online instead of
attending traditional auctions
•
this allows dealers to sell nonmoving inventories more
quickly
•
two sites dealers are using
are OVE.com40 and ATCOnlane41
online
vehicle financing tool
•
dealers can finance any
customer regardless of
credit and streamline the
entire process
•
two sites dealers are using
DealerTrack42and
RouteOne43
42. "Dealertrack Technologies." Dealertrack Technologies. N.p., n.d. Web. <https://www.dealertrack.com/public/login.fcc?TYPE=33554432>.
43. "Dealers." Route One. N.p., n.d. Web. <http://www.routeone.com/>.
leveraging new technology
summary
successful dealerships will be the ones that use technology to
streamline their internal business functions and selling
strategies. they will use software and other tools to manage and
track inventories. additionally, they will educate sales staff to
serve each customer with a personalized approach.
leveraging new technology
opportunities for the future
•
develop online and mobile solutions for dealerships to
manage inventories
•
design apps that allow sales staff to easily show, share and
save cars for customers
•
develop apps that educate dealership staff on sales tactics
(quiz or game something that is fun and interactive)
•
design apps that project onto Smart TVs where sales staff
and customers can close sales wirelessly instead of sitting
at a desk
propane studio is a full-service
digital agency focused on
developing experiences and
solutions that fuel the way people
connect with brands and each other.
propane studio | 1160 battery street, suite 350 san francisco, ca 94111 | 415.550.8692 | www.propanestudio.com