Social Leaderboard_Indian luxury car brands_14 September 2012
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Transcript of Social Leaderboard_Indian luxury car brands_14 September 2012
SOCIAL LEADERBOARD
LUXURY CAR BRANDS: 1st Sep – 14th Sep 2012
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
INDEX:
SOCIAL LEADERBOARD:
week-on-week performance of top 3 luxury car brands…
SUMMARY
Potential upside for the festive season…
RECONNECT GRADE:
o BMW
o AUDI
o MERCEDES-BENZ
WHY COMMUNITIES?
METHODOLOGY:
the research process…
ABOUT SHACK
2:
©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
93%
82%
65%
SOCIAL LEADERBOARD
1st September – 14th September 2012
Historical Ranking
86% 84%79%
40%
79% 80%
31%
46%51%
4th-17th Aug 18th-31st Aug 1st-14th Sep
BMW Audi Mercedes
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
SUMMARY
BUBBLE CHART SUMMARY
1. Frequency of user engagement has been most consistent for Mercedes-Benz
2. Active users (%) of Audi have fallen by ~50% in the week after the jungle Quattro drive event
3. Even though % Active users of BMW has increased w-o-w, corresponding user engagement has fallen
Notes:
1. Size of the bubble indicates unique active users
2. Engagement frequency: Average interactions per active user
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Week-5 Week-6 Week-7 Week-8 Week-9 Week-10
Enga
ged
Use
rs (
%)
BMW
Audi
Merc
2.3%3.4%
3.6%
2.0%
1.9%1.7%
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
- 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Enga
gem
ent
Freq
un
cy (
x)
Active Users (%)
BMW (W9)
BMW (W10)
Audi (W9)
Audi (W10)
Merc (W9)
Merc (W10)
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
FESTIVE SEASON – POTENTIAL UPSIDE
• The festive season and the Indian GP are round the corner which gives
luxury car brands an opportunity to boost their sales this year. Except for
Audi, the industry this year has witnessed slow growth on account of the
gloomy economic climate (rising interest rates, fuel prices etc.) which has
caused consumers, especially first-time buyers, to defer their purchase.
• Sudhir Rao, MD of Skoda India believes that "Festive discounts across the
industry will be significant as car makers fight it out for the limited customer
pool in the market."
• Therefore, brands will be spending on discounts, promotional offers and
freebies to clear out the rising inventory, more likely of older variants of
their models, and buck the existing sales trend.
GROWING MIDDLE CLASS - THE MAIN TARGET
Note: *2012 monthly sales volumes only available till September
0
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Mo
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ales
(u
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
We observed the monthly sales numbers of Audi India for the
previous 3 years and witnessed that sales jump in September-October
and then gradually fall up till December.
Demand by existing luxury car owners/repeat buyers is largely
inelastic for promotions, discounts. Discounts, promotions provide
greater stimulus for upper-middle consumers who normally purchase
near-premium brands like Honda and Volkswagen.
They are looking for a good deal and move up the value chain.
The auspicious time of the season also prompts individuals to make
purchases during this season.
As a result, we observe a big gap between the actual outcome and
the desired one.
THE OPPORTUNITY
We believe that the target group for luxury car brands can be broadly
segregated into 2
1. TG-I: The immediate target audience is existing owners and
prospective buyers of the brand. The primary communication
objective here is to inform this group about product launches, special
offers and share brand-related news. The brand would also listen to
this audience for their feedback, answer their queries and look to
them to influence others based on their experience.
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
2. TG-II: The other target group is that made up of enthusiasts who
admire the brand for its technology, heritage, personality and other
brand qualities. This group largely remains ignored by the brand,
with all the mainline marketing communication focused on
reaching out to prospects.
Though TG-II does not have immediate purchasing power to own the brand,
they are a major source of earned media for the brand and help in
evangelizing the brand through word-of-mouth. The brands fans on
Facebook, for instance, mainly belong to this second group. Even a 1%
conversion of these fans in the future will result in 6000-10,000
potential customers for the brand.
The digital medium, with its participatory nature and flexibility in creating
tailored messaging, can be leveraged by brands to improve its brand
reconnect with this latent audience and create brand advocates in the
process.
The Brand
TG-I: Owners
& prospects
TG-II: Brand
enthusiasts
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
SPECIAL OPPORTUNITY FOR MERCEDES
Mercedes is lagging behind BMW and Audi. It is the only brand out of the
three German car makers that has heavily invested in the Indian GP - Team,
Engines, Safety Cars etc. It is spending close to INR 8-10 crores in
advertising on the Indian GP, according to estimates. We believe that the
brand has an opportunity to reinvent its image by connecting with a newer
and younger audience associated with Formula-I.
THE APPROACH
We think that the brands will have to address the following gaps in order to
tap this opportunity-
1. Bridge the gap between enthusiasts and owners, instead of keeping
them in silos which is the current scenario. The interaction will help in
multiplying the desirability of the brand.
Owners and enthusiasts
interact in silos
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
Provide enthusiasts an opportunity to experience the luxury value of the
brand by creating parallel experiences which are accessible to them. e.g.
Food and gifts are an integral part of the festival season. Therefore, the
brand can create a platform that provides a curated list of unique yet
affordable gifting options recommended by influential
trendsetters/tastemakers. Curated Platforms such as AHA Life and The
Fancy can be leveraged to create these experiences.
As we lead up to the festive season, only time will tell whether brands can
identify and act on this opportunity or stick to the old formulaic Twitter
contests, Facebook updates and social ads devoid of any context and, thus,
weak marketing tools.
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
2.1% 1.9% 1.9%
1.4%
0.2%- -
-
1.0%
2.0%
3.0%
4.0%
5.0%
Re
con
ne
ct G
rad
e
4.3%
0.4% 0.2% 0.2% 0.1% - --
1.0%
2.0%
3.0%
4.0%
5.0%
Re
con
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ct G
rad
e
RECONNECT GRADE
Reconnect with concept car designs (futuristic model, intelligent
design, pioneering tech) is relatively high
The Hire web-film series failed to appeal to the TG
1st – 7th September 2012
8th – 14th September 2012
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
3.2%
2.3%
1.2%
0.4% 0.3% 0.3% 0.3%
-
1.0%
2.0%
3.0%
4.0%
5.0%
Re
con
ne
ct G
rad
e
0.9% 0.7% 0.5%0.1% 0.1% 0.1% 0.03%
-
1.0%
2.0%
3.0%
4.0%
5.0%
Re
con
ne
ct G
rad
e
RECONNECT GRADE
Existing owners consider the new navigation system to be expensive
Coverage of the sports car experience, on an average, only managed
to connect with 3 in 500 users
1st – 7th September 2012
8th – 14th September 2012
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
0.9% 0.8%0.5%
0.3% 0.3% 0.2% 0.1%
-
1.0%
2.0%
3.0%
4.0%
5.0%
Re
con
ne
ct G
rad
e
0.8% 0.7%0.3% 0.3% 0.2% 0.2% 0.03%
-
1.0%
2.0%
3.0%
4.0%
5.0%
Re
con
ne
ct G
rad
eRECONNECT GRADE
Promotional content around festive offers was the most popular
theme
The Star Drive experience, on average, appealed to 4 in 1000 users
1st – 7th September 2012
8th – 14th September 2012
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
About the Social Leaderboard
The Leaderboard updates the results derived from our internal tools and
methodologies on a bi-monthly basis, based on which we will bring out our
conclusions. Shack uses a proprietary grading mechanism
ShackMatrix™ to derive the Authority, Activity and Reconnect Grades,
which are key determinants of a brand’s social presence. Read more
about the Matrix and Grades.
Why Communities? Create, Connect, Curate — The Shack Manifesto for Building
Communities With the social online world becoming an important cog in a customer’s
relationship with a brand, there is a need for a common language that can
give meaning to the seemingly unstructured social data scattered across
platforms that represents a brand’s interaction with its core community.
As has happened with the introduction of any new communication medium,
practitioners are making the mistake of using the measuring stick (such as
views and reach) of traditional advertising media to gauge success in the
social web. For over a half a century, we have been thinking about
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
marketing in terms of campaigns with a very clear beginning, middle and an
end. But the online digital world is currently in the process of being rebuilt
around people and what we know as the social web, in a few years, would
simply be the web.
Therefore, long term success for brands depends on leveraging these
human relationships to create a strong sense of community around
products, concepts and values that are dearest to the brands.
How we measure effectiveness in Online Communities?
The ShackMatrix™ is a proprietary framework that enables assessment of a
brand’s digital footprint in a holistic way. It is a common language designed to
understand the value of a brand’s online efforts expressed through 5 grades that
combine the understanding of traditional branding with the dynamics of a social
online world.
Presence Grade: Measures how well is the brand represented on digital
platforms.
Authority Grade: Measures how authoritative is a brand’s owned-
channels for information on the brand and its products.
TG Grade: Measures the percentage of the desired target group mix
active on the brand’s owned platforms.
Activity Grade: Measures the level of activity on existing channels.
Re-Connect Grade: Measures the extent to which community members
connect and identify the brand with the attributes desired by it.
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
Data Methodology
We take online performance as a holistic concept. While size of the brand’s
community and level of activity are important factors, the profile of the TG,
the authority of the brand’s platforms and its recall are also equally
important ingredients.
In calculating the ShackMatrix™, we assign weights to the different metrics
on individual platforms in order to combine them into a single comparable
grade that is relevant to the digital objectives of the brand.
The weights are decided based on the relative effectiveness of the platform
to a brand’s community as well as the brand’s own digital goals.
Data Validity and Integrity
We source the data from the brand’s official digital properties. Our scope is
restricted by the data made available through the APIs of the social
platforms we cover.
The coverage of data in this report is restricted to Facebook and Twitter.
More detailed and granular metric studies are done for clients on a project
basis.
Disclaimer
While reasonable effort has been made to ensure accuracy of data, Shack is
not responsible for any damage caused by individual decisions based on it.
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©Shack Companis. All Rights Reserved. Social Leaderboard: Luxury Car Brands
About Shack
Shack is a digital marketing company which brings together brands and their
customers in carefully crafted, wholesome communities, providing exceptional
experiences for all.
We leverage communities for brands:
In order to create and maintain buzz around your brand you need your target
audience to form lasting relationships with your brand.
We build platforms for the communities:
Being a one-stop solution for all your community building and web-based marketing
needs, we craft comprehensive campaigns, based on careful strategy, encompassing
an entire digital eco-system.
We develop content for the platforms:
Along with creating engagement tools both online and off-line we also encourage and
facilitate generation of remarkably effective and compelling content, in a methodical
manner by our own team, and in a random manner, by your community members.
We measure the impact on the brand:
You need to monitor the impact that the campaign has on your brand. This impact is
not something hypothetical, it is hard, tangible, three-dimensional data that not only
tells you where you presently stand, but also tells you where you need to go and
what path you need to follow with the help of Shack’s proprietary Digital Ecosystem
Management tool. Website || Blog || Twitter