1. Briefing notes and sales support for news media sales teams
Automotive market
Briefing notes and sales support
for news media sales teams

2. What’s in this deck?
This deck is split into two sections: Section 1 An overview of the Australian automotive market The 2015 Media i Industry Survey asked agencies “what are the most important factors when dealing with media owners”. The most common factor (52% agreed ) was “understanding of your client’s business and category”. Section 1 of this deck won’t make you an instant expert, but it will help get you up to speed on the most important facts about the category.
Section 2 Support slides for sales presentations Every great sales presentation is tailored for each client, but there are certain points that fit most clients within a category. Section 2 contains research about how consumers buy cars, and the contribution news media makes in the decision process.

3. Section 1 Automotive market: an overview

4. Auto industry: strong growth
Top 10 Manufacturers of 2015
Rank
Brand
Market Share
Total Sales
% Change in Sales from 2014 1
Toyota
17.8%
206,236
1.3% 2
Mazda
9.9%
114,024
13.2% 3
Holden
8.9%
102,951
-3.0% 4
Hyundai
8.8%
102,004
2.0% 5
Mitsubishi
6.2%
71,743
4.5% 6
Ford
6.1%
70,454
-11.6% 7
Nissan
5.7%
66,062
0.1% 8
Volkswagen
5.2%
60,225 9
Subaru
3.8%
43,600
7.6% 10
Honda
3.5%
40,100
21.5%
In 2015 car manufacturers sold a record 1.2m new cars
The fourth consecutive year of 1.1 million-plus new car sales.
An increase of 3.8 per cent compared to 2014 sales.
Toyota tops the rankings, followed by Mazda, Holden, Hyundai and Mitsubishi.
Sales for 1H2016 totalled 598,140, a 3.4 per cent increase on STLY.
Sources: Federal Chamber of Automotive Industries, VFACTS, 2015, 2016.

5. Auto industry: key segments
New vehicle sales dominated by
Passenger cars
45% of sales in 2015, but a declining percentage of total sales
SUVs
35% of 2015 sales, rapidly increasing in popularity (+15.9% YoY)
Light commercial vehicles
17% in 2015, retaining steady market share
Sources: Federal Chamber of Automotive Industries, VFACTS, 2015, 2016.

6. Auto industry: top selling models
The most popular models are still mainly passenger cars
Four of the top 5 best selling models, and 6 of the top 10, are passenger vehicles.
Three light commercial vehicles make the top 10.
Although SUVs outsell light commercial vehicles, only 1 SUV in the top 10
Top 10 individual models
(by sales volume)
Rank
Vehicle
Segment
2015
2014
% diff  1
Toyota Corolla
Psgr car
42,703
43,735
-2.4%  2
Mazda3
38,644
43,313
-10.8%  3
Toyota Hilux
Lt comm’l
35,161
38,126
-7.8%  4
Hyundai i30
32,306
31,505
2.5% 6
Ford Ranger
29,185
26,619
9.6%  5
Holden Commodore
27,770
30,203
-8.1%  8
Toyota Camry
27,654
22,044
25.4%  7
Mitsubishi Triton
25,338
24,256
4.5%  9
Mazda CX5
SUV
25,136
21,571
16.5%
 10
Volkswagen Golf
22,092
19,178
15.2%
Sources: Federal Chamber of Automotive Industries, VFACTS, 2014, 2015.

7. Auto industry: big spenders on main media
5 of the top 20 largest advertisers in 2014 were car companies
Brand
Total Adex
Rank
Toyota
$82m
7th
Mitsubishi
$54m
12th
Mazda
$47m
13th
Holden
$45m
16th
Hyundai
$43m
17th
Source: Ebiquity, 2014 Advertisers Report

8. Auto industry: big spenders on newspapers
Brand
Newspaper Adex
Rank
Toyota
$30m
5th
Mitsubishi
$16m
14th
Mazda
$13m
16th
Volkswagen
$12.1m
18th
Nissan
19th
Hyundai
$11.8m
20th
Mercedes-Benz
$9.6m
24th
Brand
Newspaper Adex
Rank
Ford
$7.7m
32nd
Audi
$7.6m
33rd
Lexus
$7.3m
36th
BMW
$6.6m
39th
Land Rover
$6.2m
41st
Suzuki
$6.1m
43rd
Honda
$5.9m
45th
And 14 of the top 50 newspaper advertisers
Source: Ebiquity, 2014 Advertisers Report

9. Section 2 Support slides for sales presentations

10. About these slides
The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive automotive sales, and to show how news media can help to influence the sales process.
These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and be should be adapted to suit your particular presentation requirements.
Recap client/agency brief
Automotive industry support slides
Client specific analysis
Recommendations

11. The automotive market is intensely competitive
Over 60 brands competing for 1.2 million new car sales/year

12. The marketing challenge:
Consumers are spoilt for choice. So where do you start?

13. Start on the short list
Most people buy a brand they considered before researching models and prices.
Source: The Nielsen Automotive Report 2012

14. The average new car buyer only considers 3.9 models
It’s a very short list
The average new car buyer only considers 3.9 models
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

15. News media influences initial consideration
“Despite the increase of online and mobile sources, traditional sources of research remain popular tools.
Print media as an awareness and discovery mechanism is particularly popular among new car buyers with two-thirds (65%) using print resources at the awareness stage.”
Source: The Nielsen Automotive Report 2012

16. …and continues to work at every stage of the purchase process
From striking brand-building campaigns… …to offer-driven call-to-action retail

17. News media excels at reaching car buyers
866,000
People intend to buy a
new car in the next year.
829,000
Potential buyers read
news media each month.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

18. The combined reach of print and digital news media:
In print and digital
81%
79%
The combined reach of print and digital news media:
96%
of new car buyers.
Print Digital
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

19. Readers are above average prospects
News media readers are % more likely to buy a new car in the next year than non-readers.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

20. Readers use newspapers to help them buy
Buyers turn to newspapers to help them when they’re buying a new car.
Media most useful when buying a car
Newspapers
26%
Magazines
24%
Television
19%
Social media 6%
Radio 5%
Outdoor advertising 3%
Unaddressed mail or catalogues 2%
Cinema 1%
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

21. Automotive sections: high intention, high value
Automotive section readers are high value new car prospects
69% more likely to buy within the next year than non-readers
Above average spenders: $43,000 vs $40,000 for non-readers
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

22. Digital news readers are prime targets
People who read news media on digital devices are 31% more likely to buy a new car in the next 12 months compared to non-readers.
72% of
consumers
spend over 2
hours/day on
their mobiles.
75% research purchases on
mobiles.
Sources: emma ™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016;
Deloitte Media Consumer Survey 2015 – Australian media and digital preferences – 4th ed.

23. Client specific analysis & recommendations
This is the point to bridge to a client specific discussion.
Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to
Analyses that address the client’s specific situation, challenges and opportunities.
Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.