super consumers: racing to the top · with their elite lifestyles, such as regularly frequenting...

1SUPER CONSUMERS: RACING TO THE TOP Copyright © 2015 The Nielsen Company

F E AT U R E D I N S I G H T S

S U P E R C O N S U M E R S: R A C I N G TO T H E TO P

DELIVERING CONSUMER CLARITY

The last couple of years have been turbulent for the Indian automobile

industry. A decline in volume sales, market instability and capacity

overhang combined to create a gloomy outlook for this sector.

• Automobilesuperconsumersconstitute35%ofthecarbuyingconsumersegment

• 40%superconsumersownmorethanonecar

• Superconsumersfortheautomobilesegmentareusuallyaffluentmalesbetweentheagesof25-35

• Superconsumersprefertobuytop-endvariantsbecauseofqualityandconvenience

Source: Society of Indian Automobile Manufacturers (SIAM)

PASSENGERVEHICLESSALES(IN‘000) GROWTH

26%28%

5%1%

-6%

2008-20

09

1553

1951

2009-20

102010

-2011

2011-20

12

2012-20

13

2013-20

14

2502 2630 26652504

2 SUPER CONSUMERS: RACING TO THE TOP

But the dust is now settling, and some categories within the automobile

industry are showing signs of stabilization—and in some cases, even a

gradual increase in sales. Still, the passenger car segment, in particular,

needs a quick boost to profit. Given the existing capacity overhang,

manufacturers may have to explore avenues other than volume sales

to achieve this. One such avenue could be the sale of top-end variants.

Clearly, not everyone in the market to buy a new car will purchase a

top-end variant. Only 35% of the total auto consumer population are

interested in and purchase top-end variants/trims, whether sedans or

hatchbacks. At Nielsen, we call them super consumers.

So, who is a super consumer and how are they different from regular

consumers?

GETTING TO KNOW THE SUPER CONSUMERThe cliché of ‘boys and their toys’ seems to have its roots in truth, at

least for this consumer group. Consumers who own top-end variants

tend to be males between the ages of 25 to 35. They also are metro

dwellers concentrated, for the most part, in Mumbai and Delhi.

Not surprisingly, they are affluent and earn an average monthly salary

of at least INR 60,000 or more. They are fairly successful professionals,

often in middle- or senior-level management positions or successful

business owners.

These consumers are brand conscious and tend to gravitate towards

premium brands, whether in footwear, apparel or fashion accessories.

Most of these brands have strong associations with quality. These

consumers also engage in a number of activities that are associated

with their elite lifestyles, such as regularly frequenting gyms, owning

time-share holidays, or club memberships where they play sports like

tennis and cricket.

AUTO SUPER CONSUMERS ARE TYPICALLY 25-35 YEAR-OLD MALES, LIVING IN METRO CITIES. THEY ARE AFFLUENT AND SUCCESSFUL PROFESSIONALS OR BUSINESS OWNERS.


Source: Nielsen

HIGH TRIM

HIGH TRIM

OTHERS

OTHERS

SEDANHATCHBACK PREMIUM MPV SUV

Badminton, Cricket, Driving,

Jogging, Frequent Outings

No

Gym, Horse

riding, Picnics,

Shopping

No

Cricket,

Horse riding,

Shopping

Yes: No – 50:50

Shopping,

Tennis

Yes

Shopping

No

Shopping

Yes

Gym, Picnics, Swimming

Yes: No – 50:50

Badminton, Cricket, Football

Yes

Walk, Watch movies

Yes

Cricket

Yes

OUTDOOR ACTIVITIES

CLUB/ TIME SHARE COMPANY MEMBERS

THE AUTOMOBILE SUPER CONSUMER: A PROFILE


HIGHTRIM

MIDTRIM

BASETRIM

CAR TYPES AND PREFERENCES

21%35% 35% 40%

29% 33% 36%

44%HATC

HBACK

SEDAN

PREMIUM SUV MPV

SUPER CONSUMER: PROFILE OF MULTI-CAR OWNERS

SINGLECAROWNER

MULTIPLECAROWNER

21%

44%

35%42%

58%

HIGHTRIM

MIDTRIM

BASETRIM

Source: Nielsen

THE SUPER CONSUMER AND HIS GARAGEApproximately 40% of the super consumer segment owns more than

one car. These dual-car-owning consumers often have households with

two or more wage-earning members. Similarly, businessmen in this

category operate their businesses with more than 10 employees.

While super consumers span across all types of cars, more consumers

looking for high-end accessories and detailing (high trim) can be found

in the sedan and multi-purpose vehicle (MPV) categories.


Our survey uncovered a number of reasons. Quality and convenience

are at the top of the list. While it is possible to add accessories to a

low-end variant, the results are often less than satisfactory. Installing

accessories, such as a music system, mounted keys or even a parking

sensor after purchase mars the factory finish and often is not done as

cleanly. It is a time-consuming process that often necessitates plenty of

garage time, as well as trips to the mechanic. Super consumers prefer

top-end variants as most accessories are fitted in at the assembly line

itself.

But where high-trim variants in most other segments are largely a

male preserve, the premium car category is different. Comprising a

higher ratio of women compared to other categories, consumers in

this segment are affluent, with a monthly income of over a lakh. Aged

between 26 to 30 years, they are also older than the average super

consumer. We also found that Hyderabad has a significant population

of such consumers.

CAR TYPES AND PREFERENCES

PROPORTION OF TOP END VARIANT OWNERS IN EACH VEHICLE SEGMENT

SINGLE CAR OWNER

MULTIPLE CAR OWNER

HIGH MID BASE

59% 60% 54%

41% 40% 46%

* Among the recent car buyers surveyedSource: Nielsen

UNDERSTANDING SUPER CONSUMER BEHAVIOURWhat makes the super consumer opt for the more expensive variant?

Is it a status-driven motivation or are there other reasons behind their

premium purchases?

SUPER CONSUMER: PROFILE OF MULTI-CAR OWNERS

I WOULD PREFER TO GET A TOP-END VARIANT. THOUGH IT WILL BE COSTLIER THAN A BASE MODEL OUTFITTED WITH AFTER-MARKET ACCESSORIES, THE FINISH AND INTEGRATION OF ACCESSORIES WOULD BE FAR BETTER IN THE FORMER. - JYOTI, SERVICE PROFESSIONAL


THE LARGE DIFFERENCE IN PRICE ACROSS VARIANTS IS NOT ONLY BECAUSE OF THE ACCESSORIES. MANY OF THE SAFETY FEATURES THAT WE SEE IN TOP-END VARIANTS CANNOT BE FITTED IN THE LOWER VERSIONS AFTER PURCHASE.

- AJAY S., CIVIL ENGINEER

GETTING THE SUPER CONSUMER’S ATTENTION…Perhaps the best place to start would be by understanding the super

consumer’s perception of himself. He sees himself as modern,

ambitious, special and a trendsetter. This is in contrast to consumers

opting for low and mid trims, who are often conservative, traditional

and upwardly mobile.

Auto retailers also prefer stocking and selling top end variants. In

addition to the fit and finish of post-sales additions, retailers also raise

the issue of safety. Top-end variants include many safety features that

cannot be installed later.

So how do you reach out to these super consumers?


TRADITIONAL

BASETRIM MIDTRIM TOPTRIM

ELITE

MODERN

STRIVER

SOCIALINFLUENCER

MIDDLEFOLLOWER

UPWARDMOBILE

RATIONALIST

AFFLUENTTRADITIONAL

ELITE SUCCESSFUL&GLOBALLEADER,EXCLUSIVEHIGHSOCIETY,WEALTHYTRENDSETTER

MODERNACTIVERISKTAKER,PURSUINGDIFFERENTIATION,SELF-SATISFACTION

STRIVERAMBITIOUS,SUCCESSSEEKER,EMOTIONALCONNECTION

SOCIAL INFLUENCERRESPECTFROMOTHERS,SOCIALRESPONSIBILITY

Source: Nielsen

BEHAVIOURAL TRAITS OF THE SUPER CONSUMER

This distinction is important because it often plays an important role in

purchasing decisions. Motivation is another important factor. Mid- and

low-trim consumers buy cars from necessity. This is not the case with

high trim consumers.

8 SUPER CONSUMERS: RACING TO THE TOP Copyright © 2015 The Nielsen Company

WINNING WITH SUPER CONSUMERS

TRIGGERS FOR PURCHASE

HIGH TRIM

REQUIREANADDITIONALCARINTHEHOUSEHOLDFOREVERYONE’SCONVENIENCE

INCREASEINHOUSEHOLDINCOME

VISITSTOWEEKENDHOMEWITHFAMILY&FRIENDS

HADTOREPLACETHEOLDONE

FORSOCIALISINGWITHFAMILY/FRIENDS,VISITINGMALLS/CINEMAS,SHOPPING,ETC.

MOREHOUSEHOLDMEMBERSREQUIREDACARFOR

CONVENIENTCOMMUTING

GOTSOMEGOODFINANCEOPTIONSANDSCHEMESTHAT

HELPEDUSBUYTHECAR

OTHERS

Source: Nielsen


While India is still primarily a small-car market, this is gradually changing.

Despite the dismal start to 2014, the excise duty cuts announced in the

national budget coupled with announcements of new launches brought

cautious cheer to the Indian automotive industry. How manufacturers

and retailers leverage specific groups like the super consumer may be

the deciding factor in market success.

WINNING WITH SUPER CONSUMERS

Source: Nielsen

BASETRIM MIDTRIM TOPTRIM

ADVANCEDINNOVATIVE

SMART

PREMIUM

TRUSTWORTHY

CARING/THOUGHTFUL

SAFE

STYLISH

TRENDY

UNIQUE

REFINEDDYNAMIC

COMFORTABLE

PRACTICAL

HARMONIOUS

AFFORDABLE

MODERN

SPORTY

DIFFERENTIATED

PROVENQUALITY

WORLDCLASS

CONFIDENT

WHAT ARE THEY LOOKING FOR?Unlike his price conscious counterpart who values practicality, the super

consumer is looking for a vehicle that is smart, premium, trustworthy,

safe, trendy and world class. These high-end shoppers use their car as

more than just a means of transport.


ABOUTTHESTUDYThe study on the automobile super consumer was conducted among 1200 car owners who bought a vehicle within last

two years. The survey was conducted through online panel in June 2014 and covered respondents in the age group of 21

to 50 years. The study was conducted in Delhi NCR, Chandigarh, Ludhiana, Mumbai, Bangalore and Hyderabad.

THE NIELSEN QUALITATIVE VIEWBY: SARBANI SEN AND SIMERAN SETH, NIELSEN INDIA

• The super automobile consumer believes that spending

more will help acquire not just greater comfort but also a

better brand experience.

• Super consumers desire ‘ownership comfort.’ There is

absolutely no room for breakdowns and manufacturing

problems. He is looking for a car that’s a facilitator rather

than an inhibitor.

• Brands that offer zero-maintenance and pamper customers

during after sales, help create and even promote brand

loyalty. Facilities like service reminders, pick and drop are

considered a given by super consumers.

• Globally, marketers have recognized this need and are

differentiating their service. Indian players need to catch up

and create a distinct ‘space’ for themselves in the market to

appeal to the super consumer.


ABOUTTHEAUTHORS

ADRIAN TERRON

SENIOR VICE PRESIDENT

NIELSEN INDIA

Avinash Ashar from the Nielsen Auto team contributed to this issue of

Featured Insights.

SANDEEP PANDE

DIRECTOR

NIELSEN INDIA

ABOUTNIELSENNielsen N.V. (NYSE: NLSN) is a global performance management

company that provides a comprehensive understanding of what

consumers Watch and Buy. Nielsen’s Watch segment provides

media and advertising clients with Total Audience measurement

services across all devices where content — video, audio and text

— is consumed. The Buy segment offers consumer packaged goods

manufacturers and retailers the industry’s only global view of retail

performance measurement. By integrating information from its Watch

and Buy segments and other data sources, Nielsen provides its clients

with both world-class measurement as well as analytics that help

improve performance. Nielsen, an S&P 500 company, has operations

in over 100 countries that cover more than 90 percent of the world’s

population.

For more information, visit www.nielsen.com.

Copyright © 2015 The Nielsen Company. All rights reserved. Nielsen

and the Nielsen logo are trademarks or registered trademarks of

CZT/ACN Trademarks, L.L.C. Other product and service names are

trademarks or registered trademarks of their respective companies.

super consumers: racing to the top · with their elite lifestyles, such as regularly frequenting...

Documents