Buying the Family Car - US - July 2012

Published by: Mintel International Group Ltd.

Published: Jul. 1, 2012 - 94 Pages


Table of Contents

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Family car sales ride wave of overall recovery in auto sales
Family car sales forecast to reach pre-recession peak by 2017
Figure 1: Total U.S. unit sales of family-size vehicles, 2006-12
Source: Mintel/Morgan and Company, Inc., West Olive, MI
Figure 2: Fan chart forecast of total U.S. family car unit sales, 2007-17
Market factors
Old cars need replacing as average age reaches 11 years
Figure 3: Model year of primary family car, March 2012
High fuel costs impact family car buyers
High used car prices may persuade families to buy new
Mobile apps let families compare prices, end haggling
Market segmentation
CSUVs replace SUVs as family car of choice
Figure 4: Total U.S. unit sales of SUVs vs. CSUVs, 2007-12
Large cars lose relevancy as CSUVs provide spacious, affordable option
Rebranded as cool, minivan sales increase for second consecutive year
The consumer
Family car decisions involve mom too
Figure 5: Women's involvement in the family vehicle purchase decision, March 2012
Cost matters most for family car buyers
Figure 6: Important factors in the purchase of a family vehicle, March 2012
Safety most valued feature, especially among women
Figure 7: Features deemed important in a family car, by gender, March 2012
Grocery shopping most common use, though large need for versatility
Figure 8: Everyday activities family car mostly used for, March 2012
What we think
ISSUES IN THE MARKET
Do fuel prices matter?
How to market fuel efficiency?
What if gasoline prices decline?
INSIGHTS AND OPPORTUNITIES
Parents involving kids in car-buying decision, changing marketing dynamic
As families tighten belts, costs of owning car in spotlight
INSPIRE INSIGHTS
Trend: Experience Is All
Trend: Influentials
MARKET SIZE
Key points
Family car sales strong for second consecutive year
Figure 9: Total U.S. unit sales of family-size vehicles, 2007-17
Fan chart forecast
Figure 10: Fan chart forecast of total U.S. family car unit sales, 2007-17
MARKET DRIVERS
Key points
Rising fuel costs impact market for larger, family cars
Figure 11: Average U.S. regular gas price, 48-month average, June 2012
Family cars soon need replacing as average age of cars at record high
Figure 12: Average age and number of passenger cars and light trucks in operation, 2006-11
Automakers rebrand minivan as stylish, cool option for parents
High used-car prices may push more families to buy new
Price comparison mobile apps change the way consumers buy cars
SEGMENT PERFORMANCE—OVERVIEW
Key points
CSUVs replace SUVs as most popular family car
Figure 13: Total U.S. unit sales of family-size vehicles, by segment, 2009 and 2011
SEGMENT PERFORMANCE—LARGE CARS
Key points
Large cars losing luster as consumers rush to buy CSUVs
Figure 14: Total U.S. unit sales of large cars, 2007-12
SEGMENT PERFORMANCE—SUVS
Key points
SUV sales plummet with concerns over high fuel price and recession
Figure 15: Total U.S. unit sales of SUVs, 2007-12
SEGMENT PERFORMANCE—CSUVS
Key points
More than 3 million CSUVs sold as consumers trade size for style
Figure 16: Total U.S. unit sales of CSUVs, 2007-12
SEGMENT PERFORMANCE—MINIVANS
Key points
Recast as cool, minivans are returning as a popular family car option
Figure 17: Total U.S. unit sales of minivans, 2007-12
INNOVATIONS AND INNOVATORS
GM prototype brings fun to the back seat widow
Nissan Quest Minivan System reduces odors and allergens
MARKETING STRATEGIES
Seeking female audience, automakers turn to “mommy bloggers”
GM pulls paid-ad Facebook platform, prompting new approach to social media
Marketers use several methods to emphasize safety
Infiniti ad shows safety features provide relief in emotional ad
Figure 18:Infiniti Ad, even before you do, April 2012
Mercedes markets safety innovations as cutting-edge to luxury buyers
Figure 19:Mercedes Ad, In the blink of an eye, April 2012
Ads prioritize parents’ needs over their children
Dodge ad reminds parents they are in control
Figure 20: Dodge Ad, Symphony Hall, September 2011
Surprising twist emphasizes family car versatility
Figure 21: Dodge Ad, Girls Night Out, June 2012
Calling out to consumers, Chevrolet says its brand is listening
Figure 22:Chevy Ad, Drivers have told us, July, 2011
TYPE OF FAMILY CAR OWNED
Key points
SUVs most popular family car
Figure 23: Type of family car owned, primary vs. secondary vehicle, March 2012
CSUVs popular with young families, new buyers
Figure 24: Type of family car owned, primary vehicle, by age, March 2012
SUV and CSUV ownership increases with household income
Figure 25: Type of family car owned, primary vehicle, by household income, March 2012
Larger families buy minivans
Figure 26: Type of family car owned, primary vehicle, by number of children in household, March 2012
AGE OF PRIMARY FAMILY CAR
Key points
Two-thirds of vehicles owned are 2005 model or later
Figure 27: Model year of primary family car, by gender, March 2012
Higher household income linked with newer cars
Figure 28: Model year of primary family car, by household income, March 2012
Glut of older minivans on the road
Figure 29: Type of family car owned, by model year of primary family car, March 2012
NEW VS. USED
Key points
Even split between new/used buyers
Figure 30: Incidence of buying new vs. used family car, by gender, March 2012
$75K household income level presents tipping point for buyers
Figure 31: Incidence of buying new vs. used family car, by household income, March 2012
Larger families more likely to buy used
Figure 32: Incidence of buying new vs. used family car, by number of children in household, March 2012
ROLE OF WOMEN IN THE PURCHASE OF THE FAMILY VEHICLE
Key points
Car-buying decisions involve both parents
Figure 33: Purchase involvement, by gender, March 2012
IMPORTANT FACTORS IN THE PURCHASE OF A FAMILY VEHICLE
Key points
Cost factors most important when buying a car
Figure 34: Important factors in the purchase of a family vehicle, by gender, March 2012
Multiple factors influence young, first-time buyers
Figure 35: Important factors in the purchase of a family vehicle, by age, March 2012
Middle-income parents influenced by many factors
Figure 36: Important factors in the purchase of a family vehicle, by household income, March 2012
WHAT FEATURES ARE IMPORTANT TO FAMILY CAR OWNERS?
Key points
Safety tops concerns, especially among women
Figure 37: Features deemed important in a family car, by gender, March 2012
Young respondents want it all
Figure 38: Features deemed important in a family car, by age, March 2012
EVERYDAY USES OF THE FAMILY CAR
Key points
Grocery shopping is most common use of the family car
Figure 39: Everyday activities requiring use of family car, by gender, March 2012
One-third of 18-34 year-olds use car for work other than commuting
Figure 40: Everyday activities requiring use of family car, by age, March 2012
Parents who use family car for carpooling influenced by friends, family
Figure 41: Important factors in the purchase of a family vehicle, by everyday activities requiring use of
family car, March 2012
NON-EVERYDAY, OTHER USES FOR THE FAMILY CAR
Key points
Majority of respondents use family vehicle for vacations
Figure 42: Frequency of using family car for specific other, non-everyday travel, by gender, March 2012
Young parents frequently using family car for outdoor activities
Figure 43: Frequency of using family car for specific other, non-everyday travel, by age, March 2012
More-affluent families vacation more, need in-car entertainment
Figure 44: Frequency of using family car for specific other, non-everyday travel, by household income,
March 2012
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Hispanic families need more size than midsize sedan
Figure 45: Type of family car owned, by race/Hispanic origin, March 2012
Hispanics twice as likely to own old cars
Figure 46: Model year of primary family car, by race/Hispanic origin, March 2012
Hispanics need vehicles that can accommodate large families
Figure 47: Features deemed important in a family car, by race/Hispanic origin, March 2012
One-third of Hispanics use family car to store work items
Figure 48: Everyday activities requiring use of family car, by race/Hispanic origin, March 2012
APPENDIX—OTHER USEFUL TABLES
Figure 49: Type of family car owned, by bought new vs. used, March 2012
Figure 50: Important factors in the purchase of a family vehicle, by number of children in household,
March 2012
APPENDIX—TRADE ASSOCIATIONS
APPENDIX: RESEARCH METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Sampling
Global Market Insite (GMI)
Secondary Data Analysis
Experian Simmons National Consumer Studies
Statistical Forecasting
Statistical modelling
Qualitative insight
The Mintel fan chart
Weather analogy
APPENDIX: WHAT IS MINTEL?
Mintel provides industry-leading market intelligence
Mintel Solutions:
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Abstract

According to the U.S. Census Bureau there were over 115 million households in the U.S. in 2011 and this number is growing. As most households need a vehicle that can accommodate the many needs of a family, how automakers market family cars is crucial to their ability to increase sales.

This report provides an up-close look at how consumers buy family cars, including:

How has the family car market shifted in the past few years following the recession?
Which segments of family cars are selling the best and why?
How are family car-buyers responding to current issues such as the high price of gasoline, high used car prices, available financing, increased use of in-car entertainment, and the historically high age of the U.S. fleet?
What types of family cars do consumers own today?
What changes are expected in the future?
Who is involved in the family car decision-making process?
How have women’s roles in this capacity changed, and what are marketers doing in response?
Where do parents look when deciding to buy a family car?
What might consumer trends tell marketers about building strategies to tap into specific demographics?
What do consumers look for when buying a family car?
How are consumers using the family car and what features and/or benefits might be most valuable to their needs?

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