Automotive An Industry Analysis

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• Automotive - An Industry Analysis
• Presented To
• Claritas Precision Marketing Conference
• By Cynthia Reyes-Methvin, Research Analyst
• The Spokesman-Review
• Spokane, Washington
• May 17, 1999

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• The Spokesman-Reviews Vision
• The Spokane Market
• The Spokesman-Reviews Advertising Departments
  Role as a TMSC
• Our Purpose
• Our Vision, Mission and Values
• Our Customer Segments
• Our Service Premise
• Our Products and Services
• View of Spokane, WA
• Demographic Snapshot
• Market Comparative Analysis
• Automotive Industry Challenges
• National and Local Levels
• Case Study Ford Dealership
• Analysis
• Forecast of Key Issues
• Partnership with Claritas The Spokesman-Review

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the preferred information source of news and
advertising for the Inland Northwest. To inspire
greater citizen involvement in solving community
problems
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The Inland Northwest
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CANADA
MONTANA
WASHINGTON
IDAHO
Bonners Ferry
Kettle Falls
Republic
LINCOLN
PEND
Colville
Troy
OREILLE
BONNER
Libby
FERRY
STEVENS
Sandpoint
Newport
Priest River
Chewelah
Deer Park
Grand Coulee
Rathdrum
Hayden Lake
Spokane
Wilbur
Coeur d'Alene
Davenport
Liberty Lake
LINCOLN
KOOTENAI
Cheney
(
Wallace
Soap Lake
SPOKANE
Odessa
Ephrata
BENEWAH
Quincy
SHOSHONE
Moses Lake
Ritzville
WHITMAN
ADAMS
GRANT
LATAH
Colfax
Pullman
Moscow
PMA Market Coverage
MSA Market Coverage
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TOTAL POPULATION OF SPOKANE COUNTY 1980-2000
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1998 SPOKANE COUNTY RETAIL SALES (000)
4,225,956
(000s)
998,689
595.930
573,136
516,563
303,165
General
Total Retail Sales
Auto
Furniture/ Furnishings/ Appliance
Eat/Drink
Food
Merchandise
Source 1998 Sales Marketing Managements
Survey of Buying Power
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our customer by helping them fulfill their
marketing and promotional informational needs.
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• To be the predominant Total Marketing Services
  Company in the Inland Northwest, providing
  advertising media, strategic marketing, campaign
  development and promotion planning to our
  external customers. To be the COMPANY OF
  CHOICE in regard to employment by top
  professionals in the communications industry who,
  once employed by us, become our internal
  customer.

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• Three Customer Segments
• Consumer Reader
• Commercial Advertiser
• Internal Customer

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We are part of a service industry
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We believe that our readers value media that can
inform, amuse, inspire and provoke both thought
and action. Our advertisers and their agents
value a medium that provides them a fair return
on promotion dollars invested, hassle-free
processes and value beyond the core
purchase. Our internal customers a meaningful
and satisfying work, fair wage and benefit
package, and continuous growth and learning.
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• Newspapers Offers
• Small space scattered throughout the issue to
  attract the greatest
• number of different readers at once.
• Continuity schedules that build reach over time.
• Schedules that reinforce an advertisers key
  selling season.
• Blockbuster spreads that command immediate
  attention.
• Sunday magazines or freestanding inserts to
  compliment the
• regular newspaper buy.
• Detailed, up-to-date information that enables
  consumers to make
• informed buying decisions.

Source NAA Why Newspapers 1999
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(No Transcript)
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Demographic Snapshot

• Population Approx.. 412,600
• Rank Among U.S. MSAs 121 of 320
• Estimated Total Households 161,800 (Rank 119)
• Median Adult Age 44 other markets 42
• MSA Median Household EBI 32,732 (Rank 169)
• Washington State Median HH EBI 36,919
• U.S. Median HH EBI 34,618
• Education 55 attended College
• Other Markets 51 attended College
• Lower Median HH Income Other markets are 4
  higher
• Reasons why to lower HH income 37 Fewer women
  work full time 44 other markets.
• Slightly fewer white-collar workers 38 Spokane
  41 other
• Slightly more retired 22 Spokane 19 other
• More Single-Family Dwellings 81 Spokane 74
  other
• More Adults with Children
• Under 18 at Home 43 Spokane 39 other

Source Survey of Buying Power, SMM, Belden
Associates Spokane Market Study 1998.
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• National
• Predicted Decline in U.S. Auto Sales in 1999
• Car Sales Slowed to Recessionary Levels
• Industry Consolidation Continues into 21st
  Century
• Fewer Dealerships, Larger Volumes
• Safety Equipment A Key Market
• Dealer Competition Increases
• Internet No Longer a Love-Hate Relationship

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Local Spokane Washington State Automotive
Dealer Sales 999 million (123) Washington State
Dealer Sales 12 billion (18)
Source Survey of Buying Power Online, SMM.
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Local
TAXABLE RETAIL SALES - AUTOMOTIVE SPOKANE COUNTY,
WA
Source Department of Revenue, WA State
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• Local Economic Factors for Decline
• Slower Job Growth
• Higher Unemployment
• Slower Wage Growth
• Slower Population Growth
• Slower Retail Sales Growth
• Y2K Effects

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• Customer Requirements
• Increase Profitability
• New Marketing Opportunities
• Increase Market Share
• Target, Segmentation, Positioning
• Marketing Strategy
• Automotive Consumer Profile
• Branding Campaign Development
• Competitive Analysis

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(No Transcript)
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Dealership Locations
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Ford Customers New Ford Truck Buyers New Ford SUV
Buyers New Ford Car Buyers New Ford Van
Buyers Used Car Truck Buyers
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Ford New Truck Profile
Lifestyles of Top Ford New Truck Owners
Online Product Info Last Mo.
Smoke Non Filter Cigarettes
Go to Ice Hockey Games
Eat at Dominos Pizza
Coupons for Tobacco
4Overnight Camp Trips
Demographics of Ford New Truck Owners
From Affluent (52,600) to Lower Middle (29,300)
Income, College Graduates to High School
Education, Suburban to
Rural, Professionals to Farmers, Couples
Families, Age Range from 25-64 emphasis in the
35-54 Age Group.
The following Prizm Clusters make-up the Top Ford
New Truck Profile Group

(Top Indices from 325 to 167)

Boomers Babies Young White-Collar Suburban
Families - Upper Middle Income, 25-54 years,
College Educated, Professional (325)

Mobility Blues Young Families, Middle Income,
Under 24 years, 25-34 years, HS/Some College,
Blue Collar/Service (Index 291)
Kids Cul-de-Sacs Upscale Suburban Families -
Affluent, Family, 35-54 years, College Educated,
Executive/White Collar (Index 254)

Greenbelt Families Young, Middle-Class Town
Families - Upper Middle, Family, 25-54 years,
HS/College, White Collar (Index 238)

New Empty Nesters Upscale Suburban - Upper
Middle Income, Couples, 35-64 years, College
Educated, Professional (Index 238)

Big Sky Families Midscale Couples, Kids
Farmland - Upper Middle Income, 35-54 years,
HS/Some College, Blue Collar/Farm (Index 222)

Gray Collars Aging Couple in Inner Suburbs -
Middle Income Couples, Over Age 55, High School
Education, Blue Collar/Service (Index 205)

Military Quarters GIs Surrounding Off-Base
Families - Lower Middle Income, Age 25-54,
Service/White Collar, Some College (Index 187)

Shotguns Pickups Rural Blue-Collar Workers
Families - Middle Income, Family, 35-64 years,
High School, Blue Collar (Index 182)

Pools Patios Established Empty Nesters -
Affluent, Couples, Age 55-64 years, College,
Professional (Index 167)
Media Habits of Top Ford New Truck Buyers
Product Usage by Top Ford New Truck Buyers
f/X Net Audience
Fitness Magazine
Bght Bridgestone Tires LYr
Bght Mattress lt250 LYr
Home Shopping Network
MTV
Bght Tires at Autoparstore
Used Credit Union Car Loan
Motorcycle Magazine
Classic Rock
Bght Bedroom Furn 250 LYr
Domestic/Imported Beer Heavy Users
Actual-Potential Grid for New Ford Truck
Customers INVEST DOMINATE Areas by ZIP Code
MPI (Potential)
200
83815
99036
99208
99003
99037
99212
83814
99023
99005
99201
99216
83842
99202
99019
99203
99217
99011
99204
Invest
Dominate
99021
99205
99218
99020
99251
99022
99206
99223
95
105
99025
99207
99224
AI (Actual)
0
200
Neutral
Innovate
Maintain
Innovate
Maintain
0
Source 1998 Claritas, Inc..
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Ford New SUV Profile
Lifestyles of Top Ford New SUV Owners
Used CompuServe Last Mo.
Add Bathroom
Remodel Bedroom
Go Downhill Skiing
Own Timeshare Residence
Play Tennis on Vacation
Demographics of Ford New SUV Owners
From Elite (94,500) to Middle Income Level
(28,000), College Graduates, Suburban Families
Couples, Professionals
to Blue Collar Occupations, Primary Age Group
from 35-54.
The following Prizm Clusters make-up the Top Ford
New SUV Profile Group

(Top Indices from 713 to 255)

Blue Blood Estates Elite Super-Rich
Families-Elite, Family - 35-54 years, College
Graduates, Professional (Index 713)

Boomers Babies Young White-Collar Suburban
Families - Upper Middle Income, 25-54 years,
College Educated, Professional (Index 455)

Mobility Blues Young Blue-Collar/Service
Families -Middle Income, Families/Couples, lt35
years, HS/Some College, BC/Service (Index 455)

New Empty Nesters Upscale Suburban Fringe
Couples-Upper Middle Income, 35-64 years,
College Graduates, Professional (Index 416)

Kids Cul-de-Sacs Upscale Suburban
Families-Affluent, Family, 35-54 years, College
Educated, Executive/White Collar (Index 408)

Young Influentials Upwardly Mobile Singles
Couples-Upper Middle, lt24 25-34 years, College
Graduates, Professional (Index 386)

Pools Patios Established Empty Nesters -
Affluent, Couples, Age 55-64 years, College,
Professional (Index 380)

Greenbelt Families Young, Middle-Class Town
Families - Upper Middle, Family, 25-54 years,
HS/College, White Collar (Index 328)

Executive Suites Upscale White-Collar Couples -
Affluent, 25-54 years, College Graduates,
Professional (Index 281)

Winners Circle Executive Suburban Families -
Wealthy, 35-54 years, College Graduates,
Professional (Index 255)
Media Habits of Top Ford New SUV Buyers
Product Usage by Top Ford New SUV Buyers
Home Shopping Network
Motorcycle Magazines
Bght Bridgestone Tires LYr
Bght Elec Air Cleanr Last Yr..
f/XNet Audience
Classic Rock
Bght Bedroom Furn 250
Bght 35mm Camera Last Yr..
Baby Magazines
Learning Channel

250 Sport Jacket Lst Yr..
Bght Sears Tires Last Yr...
Actual-Potential Grid for New Ford SUV Customers
INVEST DOMINATE Areas by ZIP Code
MPI (Potential)
200
83815
99205
83814
99207
99005
99206
83816
99212
99019
99208
99020
99216
99021
99217
99023
99251
Invest
Dominate
99037
99218
99201
99026
99203
99223
99202
105
95
99204
99224
AI (Actual)
0
200
Neutral
Innovate
Maintain
Innovate
Maintain
0
Source 1998 Claritas, Inc.
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Ford New Car Profile
Lifestyles of Top Ford New Car Owners
Online Product Info Last Mo.
Smoke Non Filter Cigarettes
Go to Ice Hockey Games
Stay at Motel 6 on Vacation
Collect Stamps
Buy New Wave Music
Demographics of Ford New Car Owners
From Upper Middle (52,600) to Lower Middle
(17,800) Income, College Graduates to Less than
High School Education,
Suburban to Second City, Professionals to Blue
Collar, Families/Couples, Primary Age Range from
25-54
The following Prizm Clusters make-up the Top New
Ford Car Profile Group

(Top Indices from 318 to 194)

Boomers Babies Young White-Collar Suburban
Families, Upper Middle Income, 25-54 years,
College Educated, Professional (Index 318)

Mobility Blues Young Families, Middle Income,
Under 24 years, 25-34 years, HS/Some College,
Blue Collar/Service (Index 300)

Executive Suites Upscale White-Collar Couples -
Affluent, Couples, Age 25-54, College Educated,
Executive/White Collar (Index 262)

Kids Cul-de-Sacs Upscale Suburban Families -
Affluent, Family, 35-54 years, College Educated,
Executive/White Collar (Index 242)

New Empty Nesters Upscale Suburban - Upper
Middle Income,Couples, 35-64 years, College
Educated, Professional (Index 240)

Winners Circle Executive Suburban Families -
Wealthy, Family, Age 35-64, College Educated,
Executive (Index 238)

Gray Collars Aging Couple in Inner Suburbs,
Middle Income Couples, Over Age 55, High School
Education, Blue Collar/Service (Index 236)

Family Scramble Low-Income Hispanic Families -
Poor Families, Under Age 35, Less than High
School Education, BC/Service (Index 217)

Country Squires Elite Exurban Families -
Wealthy, Family/Couple, Predominant Age 35-64,
College Educated, Executive (Index 213)

Greenbelt Families Young, Middle-Class Town
Families - Upper Middle, Family, 25-54 years,
HS/College, White Collar (Index 194)
Media Habits of Top New Ford Car Buyers
Product Usage by Top New Ford Car Buyers
Motorcycle Magazine
Classic Rock
Bght Tires at Autoparstore
Bght Mattress lt250 LYr
f/XNet Audience
Fitness Magazine
Bght Bridgestone Tires LYr
Bght Elec Air Cleanr LYr
Home Shopping Network
MTV
Bght Bedroom Furn 250 LYr
Domestic/Imported Beer Heavy Users
Actual-Potential Grid for New Ford Truck
Customers INVEST DOMINATE Areas by ZIP Code
MPI (Potential)
200
83815
99202
99216
99005
99203
99217
83814
99023
99020
99205
99218
83842
99204
99021
99206
99223
99011
99251
Invest
Dominate
99027
99207
99224
99019
99037
99208
95
105
99201
99212
AI (Actual)
0
200
Neutral
Innovate
Maintain
Innovate
Maintain
0
Source 1998 Claritas, Inc.
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Actual-Potential Ford New Trucks
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Actual-Potential Ford New SUVs
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Actual-Potential Ford New Cars
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The Automotive Industry is Changing Rapidly!
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• Market Identified Measured
• Large Profitable Segments
• Reachable Market
• Segment Responsiveness
• Stable Segments

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Our Recommendation
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the preferred source of news and advertising for
the Inland Northwest. To inspire greater citizen
involvement in solving community problems
Our Philosophy
our customer by helping them fulfill their
marketing and promotional informational needs.
34
Sales Marketing Management, Survey of Buying
Power Belden Associates 1998 Market
Study Department of Revenue, WA State Spokane at
the New Millennium, Shaun Higgins Spokane Journal
of Business Automotive News Monthly Investment
Review, Industry Surveys, Dec. 1998 Auto Auto
Parts Industry Survey, December 24, 1998 U.S.
Motor Vehicle Market Quick Facts Cross-Sell Clarit
as, Inc. The Spokesman-Review S- R Research Team,
Cynthia Reyes-Methvin Jodi Nordby
35
Thank You
The End