THE FUTURE OF THE AUTOMOTIVE INDUSTRY AND ITS AFTERMARKET THE SECRET ? BE ADAPTABLE !
Automobile industryAuthor :
Donna Messer 
Donna Messer is a networking expert. She is the author of “Effective Networking Strategies” a Canadian Best Seller. Donna is a motivational speaker, addressing audiences on three continents. To reach Donna or get a copy of her book - www.connectuscanada.com
What’s in the future for the automotive industry and its aftermarket? If we really want to know, perhaps we should look at current population statistics and see what they are telling us.
• The Silent Generation - 52.5 million people, born 1924-1945.
• The Baby Boomers - 72 million people, born 1945-1964.
• Generation X - 61 million people, born 1965 to 1984.
• Generation Y - 100 million people, born 1985 to the present.
Each generation has different interests, attitudes and tastes. How do you determine how to reach each generation when it comes to influencing their needs in the automotive sector? The following information might just help you determine a strategy that will work for you and your franchise.
THE SILENT GENERATION
According to statistics, the Silent Generation (prewar) is being more careful with spending, and will be keeping their cars longer and driving less. This generation is about 95% retired at this point. They will rely on others for the upkeep of their vehicles. In a few short years they will disappear.
THE BABY BOOMERS
The Baby Boomers favor reliable Japanese sedans such as the Toyota Camry and Honda Accord or upscale German cars such as the Mercedes E320. The oldest of the 72-million baby boomers entered their 50s, (the age when consumers usually spend the most on autos), and a majority prefers Japanese or European cars. As the Silent Generation (which makes up the industry's most loyal customer) dies off, the mix of cars on the road will slide inevitably toward imports.
By 2010, the older generation, which now buys a third of all cars, will account for just 12% of sales and the aftermarket needs of those cars. Boomers will buy half of all vehicles, followed by Generation X (11 million fewer), which is even less inclined than Boomers to buy American and much less to care for their cars.
In 2008, the economy was the boomers! They represented the most of the work force. And the huge growth in the economy since the 90s was due in large part, to them working up to their peak earning and spending years.
What were they spending their money on? What kind of cars were they choosing? They were buying at the upper end of the automobile market, which showed by the explosion in the popularity of SUVs. They were responsible for the increase in RV sales as retirement and vacations become a more important part of their lifestyle.
Now here's where the rubber meets the road.
When the number of Boomers begins to decline, there will be alternative prospects available for your automotive franchise businesses. Gen X'ers have very different tastes and consumer attitudes -making marketing to them more intense and focused very differently.
GENERATION X
Gen X'ers want fuel-efficient cars, which are high tech, fast, powerful and cool. To reach Generation X, aim right at them! They love experiences, activities that arouse their sense of adventure and passion. Research shows that Volkswagen appealed to Gen X’ers because they liked the driving experience, and couldn’t afford the BMW. To add value, if they bought a VW they got a Trek Bike as a give away. The results? A 25% increase in sales and a real niche as a Gen X car. This generation has energy, and they have balance in their lives. They are willing to work, but also expect to have lives outside of the office.
Generation X - Do you know how to market to them?
They make lots of money. They are educated and they are young. So why is it that many marketing efforts aimed at Generation X don't bring in the dollars expected? The key to success is to walk in their shoes! See who they are, what they do, what they like and how they think! The following 6 points should help to determine how best to reach this market.
1. Understand the Characteristics That Define Them
This is the best-educated generation in history. Unlike the Boomers who value spontaneity, Gen X wants things mapped out for them. They like it when they hear, "Do this and you'll get that."
2. Aim Right at Them
Advertising that works for Gen X is aimed right at their love of "experiences," those activities that arouse their sense of adventure and passion get their business.
3. Market a Truly New Product
Customize your product or service to the needs of this group and it will do very well.
Skiing was a Baby Boomer activity. Snowboarding has become the icon for Gen X.
4. Make It Funny
Gen X loves a good time and they value humor in ads. Put a smile on their face and you’ll really make a hit with the Gen X market.
5. Maintain a Quality Attitude
Gen X is a quality-conscious group, they are cynical generation, and can spot a fake message. Be sincere.
6. Appeal to Their New Attitude Towards Work
This generation has a more balanced view of the role that work plays in their lives. They have the money to buy expensive and top-quality products. Be adaptable.
GENERATION Y
Born during a baby bulge that demographers locate between 1979 and 1994. The new power generation is Generation Y. By 2010 they will account for 25 percent of the new car market. They're the biggest thing to hit the American scene since the 72-million baby boomers. One in three is not Caucasian. One in four lives in a single-parent household. Three in four have working mothers. While boomers are still mastering Microsoft Windows, their kids are tapping away at computers in nursery school.
With the oldest Gen Y’ers barely out of high school, in just a few years, today's teens will be out of college and shopping for their first car. Gen Y responds to humor, irony, and the unvarnished truth. The Internet's power to reach young consumers has not been lost on marketers. These days, a well-designed Web site is crucial for any company hoping to reach under-18 consumers.
Toyota Motor Corp., noting that four million new drivers will come of age each year until 2010, introduced the Echo. With low emissions and a price well below the Corolla, the new subcompact is aimed squarely at Boomers' kids who are buying their first cars. The Scion is aimed at Gen X and Y that live on the Internet. The Scion is marketed through an Internet site where they can build their car and print out the results. The average Scion buyers are 35 years old, 60 percent male and 40 percent Asian or Hispanic - young and multi-cultural.
General Motors Corp. put together a task force to figure out how to appeal to Gen Y. Teens and children as young as sixth-graders are invited to car clinics, where researchers probe their opinions of current models and prototypes of future cars.
What’s the future of the automotive industry and its aftermarket? It’s simple : to be successful, learn about the different generations, and be flexible when it comes to their needs. Each generation will be reached in a different way. The secret to your success in the automotive sector in today’s market is to be adaptable!
• The Silent Generation - 52.5 million people, born 1924-1945.
• The Baby Boomers - 72 million people, born 1945-1964.
• Generation X - 61 million people, born 1965 to 1984.
• Generation Y - 100 million people, born 1985 to the present.
Each generation has different interests, attitudes and tastes. How do you determine how to reach each generation when it comes to influencing their needs in the automotive sector? The following information might just help you determine a strategy that will work for you and your franchise.
THE SILENT GENERATION
According to statistics, the Silent Generation (prewar) is being more careful with spending, and will be keeping their cars longer and driving less. This generation is about 95% retired at this point. They will rely on others for the upkeep of their vehicles. In a few short years they will disappear.
THE BABY BOOMERS
The Baby Boomers favor reliable Japanese sedans such as the Toyota Camry and Honda Accord or upscale German cars such as the Mercedes E320. The oldest of the 72-million baby boomers entered their 50s, (the age when consumers usually spend the most on autos), and a majority prefers Japanese or European cars. As the Silent Generation (which makes up the industry's most loyal customer) dies off, the mix of cars on the road will slide inevitably toward imports.
By 2010, the older generation, which now buys a third of all cars, will account for just 12% of sales and the aftermarket needs of those cars. Boomers will buy half of all vehicles, followed by Generation X (11 million fewer), which is even less inclined than Boomers to buy American and much less to care for their cars.
In 2008, the economy was the boomers! They represented the most of the work force. And the huge growth in the economy since the 90s was due in large part, to them working up to their peak earning and spending years.
What were they spending their money on? What kind of cars were they choosing? They were buying at the upper end of the automobile market, which showed by the explosion in the popularity of SUVs. They were responsible for the increase in RV sales as retirement and vacations become a more important part of their lifestyle.
Now here's where the rubber meets the road.
When the number of Boomers begins to decline, there will be alternative prospects available for your automotive franchise businesses. Gen X'ers have very different tastes and consumer attitudes -making marketing to them more intense and focused very differently.
GENERATION X
Gen X'ers want fuel-efficient cars, which are high tech, fast, powerful and cool. To reach Generation X, aim right at them! They love experiences, activities that arouse their sense of adventure and passion. Research shows that Volkswagen appealed to Gen X’ers because they liked the driving experience, and couldn’t afford the BMW. To add value, if they bought a VW they got a Trek Bike as a give away. The results? A 25% increase in sales and a real niche as a Gen X car. This generation has energy, and they have balance in their lives. They are willing to work, but also expect to have lives outside of the office.
Generation X - Do you know how to market to them?
They make lots of money. They are educated and they are young. So why is it that many marketing efforts aimed at Generation X don't bring in the dollars expected? The key to success is to walk in their shoes! See who they are, what they do, what they like and how they think! The following 6 points should help to determine how best to reach this market.
1. Understand the Characteristics That Define Them
This is the best-educated generation in history. Unlike the Boomers who value spontaneity, Gen X wants things mapped out for them. They like it when they hear, "Do this and you'll get that."
2. Aim Right at Them
Advertising that works for Gen X is aimed right at their love of "experiences," those activities that arouse their sense of adventure and passion get their business.
3. Market a Truly New Product
Customize your product or service to the needs of this group and it will do very well.
Skiing was a Baby Boomer activity. Snowboarding has become the icon for Gen X.
4. Make It Funny
Gen X loves a good time and they value humor in ads. Put a smile on their face and you’ll really make a hit with the Gen X market.
5. Maintain a Quality Attitude
Gen X is a quality-conscious group, they are cynical generation, and can spot a fake message. Be sincere.
6. Appeal to Their New Attitude Towards Work
This generation has a more balanced view of the role that work plays in their lives. They have the money to buy expensive and top-quality products. Be adaptable.
GENERATION Y
Born during a baby bulge that demographers locate between 1979 and 1994. The new power generation is Generation Y. By 2010 they will account for 25 percent of the new car market. They're the biggest thing to hit the American scene since the 72-million baby boomers. One in three is not Caucasian. One in four lives in a single-parent household. Three in four have working mothers. While boomers are still mastering Microsoft Windows, their kids are tapping away at computers in nursery school.
With the oldest Gen Y’ers barely out of high school, in just a few years, today's teens will be out of college and shopping for their first car. Gen Y responds to humor, irony, and the unvarnished truth. The Internet's power to reach young consumers has not been lost on marketers. These days, a well-designed Web site is crucial for any company hoping to reach under-18 consumers.
Toyota Motor Corp., noting that four million new drivers will come of age each year until 2010, introduced the Echo. With low emissions and a price well below the Corolla, the new subcompact is aimed squarely at Boomers' kids who are buying their first cars. The Scion is aimed at Gen X and Y that live on the Internet. The Scion is marketed through an Internet site where they can build their car and print out the results. The average Scion buyers are 35 years old, 60 percent male and 40 percent Asian or Hispanic - young and multi-cultural.
General Motors Corp. put together a task force to figure out how to appeal to Gen Y. Teens and children as young as sixth-graders are invited to car clinics, where researchers probe their opinions of current models and prototypes of future cars.
What’s the future of the automotive industry and its aftermarket? It’s simple : to be successful, learn about the different generations, and be flexible when it comes to their needs. Each generation will be reached in a different way. The secret to your success in the automotive sector in today’s market is to be adaptable!