Post on 09-May-2015
description
Sarah Brookes BMW Research 2012.
One of the concerns from recent data, suggests that BMW is becomingA less-loved brand amongst 18-30 year olds.
There is no clear understanding as to why this is happening, but it is apparent that Audi in particular is over-taking us amongst that age group.
While this isn’t a catastrophe right now we are concerned that this could lead to long term damage to the brand as these young people grow up with BMW
lower down on their consideration list.
Contents:Who are Gen Y?
What do they expect from brands?
What are their attitudes to cars and driving?
Why is BMW becoming a less loved brand?
If BMW isn’t loved, who is?
Research & retail behaviours
Insight & proposition
Who Are Gen Y?
Gen Y:
Also known as “Millennials”Born 1980 to 20009.7 million in the UKGrew up with rising oil prices & climate change. Educated and in debtHit by the recession
Aimia_GenY_Whitepaper_UK_2011
Optimistic, ambitious & entrepreneurialExpect reward, recognition & respectIn search of value & meaningFriendship is importantCreative and collaborativeTech savvy & connected 24/7
Aimia_GenY_Whitepaper_UK_2011
Education
Technology & Innovation
Big Ideas
Relationships & friends
Diversity, tolerance, and social good
Environmental & economic sustainability
Work / life balance
Travel & Leisure
What matters to Gen Y?
67% search for a brand or service on SM before Google
50% consider TV, radio, and music as background noise
35% check web-based email via PC – most popular activity
38% check social networks via mobile phones
75% go online everyday
42% listen to music free online
50% use PC, TV or radio to catch-up
25% are tech-junkies
Social & Social Media Friendly
What do they expect from Brands?
Informal InteractionA philosophy / mission
statementA human feelA way to curate their
identityTo take the leadNot be try-hard Culturally relevantThe ability to give
feedbackTo be entertainedOptions for discussion
You like car advertising that…
Why is BMW a less loved brand?
Historically, BMW was seen as the yuppie badge of success. For Gen X there was one mainsuccess – your career. Today Gen Y, who value a work/life balance, are in search of value and meaning through what they do, buy and believe in. Money is secondary in terms of success, but it is important because they don’t have very much of it. Still ambitious to achieve, through enjoying life, being good parents, giving back to society and the environment.
Success has now been redefined.
Hypothesis:
• Educated and aware of their real-time identity• Image is still very important. • The BMW model of success is irrelevant now, even looked down upon.• Gen Y look to brands to express themselves and their values. • It’s no longer cool to be brash. Instead ‘Quietly brilliant, is admired’.• Gen Y want a well priced car, that is stylish too. • A lower grade model could be justified as the ‘intelligent’ choice • Being efficient, environmental and a money-saver. • Less is more.
My GEN Y survey revealed the following concerns:
46% don’t notice BMW advertising
38% rate it as dull and uncreative
83% saw it as an arrogant or male brand
25% saw it as old fashioned and not cool
0% don’t recognise BMW’s environmental credentials
0% saw it as young or for females
50% don’t drive a car
However 16/25 were not against buying a BMW in the future…
Gen Y are increasingly getting used to not owning things…but renting them instead.
Price
Fuel economyIs important with high
Fuel costs and environmental
Damage.
Style
Social networksMake brand image
Important with association
The battle between priceand style.
Ownership Subscription
The cost to own and run a car are not seen as essential for urban-focused Millennials anymore…
So What do Gen Y define as success and what makes them happy?
Environment Price Style
Gen Y make intelligent & emotional choices
Male, arrogant, and needless expense becomes irrelevant
Gen Y have redefined what success and mobility means.
BMW knows that their classic definition of premium is irrelevant to Gen Y and has invested in redefining what an automotive company needs to provide…
Emotional &Intellectual
success
Transactionalsuccess
Mobility needs to be efficient, sustainable and connected.
What are their attitudes towards cars & driving?
Competitor Review
If BMW isn’t loved who is?
6
6
9
9
Starts at £13,640
Starts at £17,830
Engaging wider target audience
Audi / BMW Facebook conversation insight
Brand loyal
Engaging very young audience
• Environmental• Compact• Family• EfficientThe alternative car with lifestyle benefits, not meaningless & expensive style.
30%
Gen Y ownership insight:
62%
72%
32%
94% of all consumers research an average 32 sources online before they purchase a car.
71% purchases are influencedBy positive online opinion.
51% will change their purchase decision due to negative online opinion.
73% value the opinions of others.
What is their approach to retail and research?
Deloitte GEN Y & automotive purchasing behaviours USA (2009)
Insight
The strategic story:
Human Insight:Most people don’t know what they are missing until they experience it
Audience Truth: They are in search of value and meaning
Brand Truth: BMW offers a great driving experience
Market Truth: Gen Y are increasingly looking for alternatives
Engagement truth: 94% research online before purchasing a car70% would like to test drive a vehicle for 24 hours
Technology Truth: Just because they use technology doesn’t mean it has to be onlineExperiences are equally important
Proposition: BMW is a journey worth taking
THANK YOU!