thinkLA Motor City West 2012 - Rick Wainschel

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thinkLA Motor City West

Vice President of Automotive Insights

AutoTrader.com

Millennials Rick Wainschel

Vice President, Automotive Insights

AutoTrader.com

Before I talk about automotive, here are some things to think about

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Every generation is different

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They will never get on an airplane without first taking their

shoes off, putting their 3.4 ounce toiletries in plastic bags,

or going through millimeter wave scanners

The youngest Millennials were 7 years old on September 11, 2001

The First Vote for President Among Many Millennials was for an African-American

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Percent Saying It is Bad For Society For People of Different Races to Marry Each Other

Source: Pew Research Center, 2010

Silent Generation 26%

Boomers 14%

Gen X 10%

Millennials 5%

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By 2050, Minorities Will Be a Thing of the Past

Source: Center For Public Education

2000 2050

Caucasian 69% 50%

African American 13% 15%

Hispanic 13% 24%

Asian 4% 8%

Percent

of U.S.

Population

Percent of Millennials

Who Have a Tattoo

You might want to invest in tattoo removal centers

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I dont have to tell you that Millennials are amazingly well-connected

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But just to give you some stats

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Percent of Millennials who

Gen X: 50% Boomers: 30% 75%

Gen X: 77% Boomers: 51%

Gen X: 24% Boomers: 13%

have a cell phone and no land line

have created a social

networking profile

use a cell phone to text

(median texts per day: 20) 88% 41%


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of Millennials sleep with their phone next to their beds

83%

Gen X: 68%; Boomers: 50%


To more than half of Millennials, technology enables human connections


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Boomers:

48% closer to friends and family

42% more isolated

of Millennials feel that new technology makes people closer to their friends and family

38% feel it

makes people

more isolated

54%

In the past

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When we were younger, only a 16 year old could get excited about standing in this line

For the first time, we could decide where to go and who to connect with

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What does it look like now?

Todays Millennials are not in a hurry to drive

Then Now

19 year olds 87% 75%




Source: University of Michigan Transportation Research Institute

Percent with Drivers Licenses

Car brand equity research

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Do I know who you are?

Familiarity

Quality

Consideration

What do I think about you??

How do I want to interact with you?

Source: 2012 Harris

Poll EquiTrend Study.

23 out of 29 brands studied (particularly domestics) have lower familiarity among Millennials

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-30

-25

-20

-15

-10

-5

0

5

10

Familiarity with Auto Brands (Millennials vs. Boomers)

Source: 2012 Harris


010

20

30

40

50

60

70

Among selected makes studied, Mercedes-Benz, Toyota, Lexus lead equity scores among Millennials

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Brand Equity Scores

Source: 2012 Harris


-20

-15

-10

-5

0

5

Among selected makes studied, negative equity gaps are larger than positive gaps

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Millennials vs. Boomers

Source: 2012 Harris


Multiple technology brands have higher equity scores among Millennials than all car brands studied

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0

10

20

30

40

50

60

70

80

Brand Equity Scores

Source: 2012 Harris


Multiple retailers also have higher equity scores than all car brands studied

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26

0

10

20

30

40

50

60

70

80

Brand Equity Scores

Source: 2012 Harris


Do Millennials love or hate

car brands?

Do they care? 27

Chevrolet

Millennials Love 20%

Ambivalent 67%

Hate 12%

Boomers Love 55%

Ambivalent 29%

Hate 17%

Source: 2012 Harris


Millennials Love 51%

Ambivalent 39%

Hate 9%

Boomers Love 62%

Ambivalent 27%

Hate 11%

Honda

Source: 2012 Harris


Brand Ambivalence - Millennials vs. Boomers Selected Domestic Brands

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Millennials Boomers Difference

Chevrolet 67% 29% 38

Dodge 47% 32% 15

Chrysler 47% 38% 9

Ford 45% 37% 8

Source: 2012 Harris


Brand Ambivalence - Millennials vs. Boomers Selected Asian Brands

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Nissan 48% 29% 19

Mazda 44% 29% 15

Honda 39% 27% 12

Subaru 37% 27% 10

Hyundai 37% 32% 5

Toyota 37% 35% 2

Source: 2012 Harris


Brand Ambivalence - Millennials vs. Boomers Selected Luxury Brands

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Cadillac 36% 36% 0

Lexus 33% 30% 3

Mercedes

-Benz 31% 27% 4

Source: 2012 Harris


Millennials are More Promiscuous in Their Car Shopping Behaviors

Millennials view

26% more unique make/models on

AutoTrader.com compared to

older shoppers (5.3 vs. 4.2)

Source: ATC SAS site data for survey respondent activity day of survey from 12/15/2011 through 6/15/2012 33

Four fearless findings

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#1

For Millennials,

staying virtually

connected diminishes

importance of driving


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#2

The brand of phone,

computer, and clothing

are more important to

Millennials than the

brand of car they drive


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#3

Manufacturers will have to work harder to overcome ambivalence towards brands and shopping promiscuity among Millennials


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#4

Boomer

brands need

to reintroduce

themselves to

Millennials

Thank you!!

Rick Wainschel

Vice President, Automotive Insights

AutoTrader.com

949-887-7345

[email protected]

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thinkLA Motor City West 2012 - Rick Wainschel