lotlinx covid-19 market analysis 04.30 · 3 insights & recommendations...

LOTLINX COVID-19 MARKET ANALYSIS

04.30.20

2 OVERVIEW

At times of crisis, all dealers and automotive partners need to be armed

with the data necessary to make the smartest decisions for their business.

This market overview analyzes current government, OEM, and consumer

responses to the COVID-19 outbreak, as well as predictions for the future

impact of the pandemic.

3 INSIGHTS & RECOMMENDATIONS

● TV/Radio/Internet/Streaming is being consumed at the home.

○ More in home: Video, desktop traffic, streaming music and TV.

● Market Presence: We are advising our dealers to consider carefully any adjustments to their marketplace

presence, and to maintain a strong bias toward preserving all low funnel traffic to SRP, VDP or service pages.

○ These types of marketing are the lowest funnel customers and typically the most likely to buy a vehicle or to

schedule a service campaign. We recommend dealers to reassess their current marketing efforts and

consider reducing spend on branding campaigns and third-party listing sites.

● Consumer behavior has changed during these turbulent times, but they still expect you to offer them insight

into your brand.

● Digital Retailing: Dealers offering Free Home Delivery, Online Checkout, Over the Phone Sales, Delivery in the

Parking Lot will garner more business over the next few months. We believe this will also speed up the Digital

Retailing portion of your business after the market recovers as explained in “Just Faster” by Brian Pasch.

4 WHAT NEXT?

1.Schedule a walk through

of recommendations

designed to maximize

your outcomes with a

dedicated LotLinx

inventory strategist

2.Evaluate the

opportunities, not just

problems, in your current

market

3.Find ways to leverage your

existing services that will

provide long-term support

for current and potential

customers

5 AREAS TO SPOTLIGHT FOR NEAR TERM RECOVERY

Marketing

➔ Assess your current marketing strategy

➔ Avoid removing all ads, especially

anything that is low funnel traffic to SRP,

VDP or service

➔ Analyze and re-prioritize marketing

channels during the outbreak

➔ Consider reducing marketing spend on

branding campaigns and third party

listing sites

Branding

➔ Adjust marketing message

➔ Communicate how your dealership is

being responsible and responding to the

pandemic

➔ Align your messaging with Tier I and Tier

II to have a consistent, strong brand

statement

6 KEY CONSIDERATIONS

Maintain an online presence:

Consumers are still shopping for

cars, and right now, they’re online

more than ever. Businesses that

stop advertising in times of crisis

are likely to lose share of mind and

market. Stay present, but

acknowledge the issue at hand.

Expand your current services:

Get your finger on the pulse of

what consumers need in these

turbulent times. Free at home

deliveries and online check-outs are

just some offerings that can go a

long way in a consumer’s mind.

Stay informed and inform your consumers:

Inform shoppers of in-stock

inventory and available services.

Transparently communicate how

your business is being responsible,

including statements about your

strict adherence to CDC guidelines

and your commitment to the

community.

7 EXAMPLE OF EFFECTIVE DEALERSHIP MESSAGING

Focusing on services they do offer to help customers stay home and employees stay busy:

➔ Over-the phone and online service appointments

➔ Complimentary vehicle pick-up and drop-off

services for service appointments

Adhering to social distancing guidelines:

➔ Fresh pair of gloves, protective seat covers and

disinfectant wipes

➔ Frequent sanitation and additional hand

sanitizing dispensers

➔ Six feet of distance between all customers and

LOTLINX COVID-19 MARKET OVERVIEW

1. ECONOMIC IMPACT

2. CONSUMER BEHAVIOR IMPACT

3. AUTOMOTIVE MARKET IMPACT

4. OEM IMPACT

5. INDUSTRIES BEHAVIOR IMPACT

6. COMMUNITY IMPACT

ECONOMICIMPACT

10 GOVERNMENT RESPONSE

Self-Quarantine Event Cancellations

COVID-19 Testing

Non-Essential Business Closures School Closures

Resources (food, supplies) Economic Relief Healthcare Capacity

● Signed into law 3/27/20

● Highlights:

○ Direct payments: One-time direct deposit of up to $1,200 to taxpaying Americans. Restrictions apply.

○ Unemployment: $250 billion for an extended unemployment insurance program

○ Small business relief: $350 billion dedicated to preventing layoffs and business closures. Companies with

500 employees> that maintain payroll can receive up to 8 weeks of cash-flow assistance.

○ Large corporations: $500 billion will be allotted to provide loans, loan guarantees, and other investments.

○ Hospitals and health care: $140 billion+ in appropriations to support the U.S. health system, provide

personal and protective equipment for health care workers, testing supplies, increased workforce and

training, accelerated Medicare payments, etc.

○ Coronavirus testing: All testing and potential vaccines for COVID-19 will be covered at no cost to patients.

○ States and local governments: $150 billion to state, local and tribal governments. $30 billion for states and

educational institutions, $45 billion for disaster relief, and $25 billion for transit programs.

○ Agriculture: Agriculture Department bailout program increased to $50 billion

CARES - Coronavirus Aid, Relief, and Economic Security Act

Source: The CARES Act Has Passed: Here Are The Highlights

What it means for dealers:

▪ $349 billion dedicated to Small Business Administration (SBA) loans

▪ Available for companies with no more than 500 employees at the franchise level

▪ Be sure your OEM is registered with the SBA

▪ The maximum loans are 2.5 times the average monthly payroll for the preceding 12

months, or $10 million

▪ Loan proceeds may only be used for payroll, health benefits, mortgage interest, rent and

utilities

Source: CARES Act Contains SBA Loan Provisions Favorable to Most Dealerships

CARES ACT - SMALL BUSINESS ADMINISTRATION LOANS

13 CURRENT CASES

Source: World Health Organization

Current stages of the impact of COVID-19 around the world:

14 HOW LONG WILL IT LAST?

China started seeing reversal of cases as early as

4 weeks post quarantine &

8 weeks post initial panic.

Source: Mapping the spread of the Coronavirus in the U.S. and worldwide, The Washington Post

15 SIGNS OF RECOVERY

As of April 7th, the number of cases

has started to decline in most major

nations.

However, the U.S. still has the highest

number of confirmed cases in the

world.

16 SIGNS OF RECOVERY

China is showing several areas of recovery, with daily new cases, active

cases, and newly infected cases rapidly decreasing.

DAILY NEW CASES ACTIVE CASESNEWLY INFECTED VS.

NEWLY RECOVERED

Source: World O Meters

Optimistic that a potential global economic

downturn could be short-lived, mitigating negative

impacts on the worldwide ad market.

Most likely scenario: “V-Shape” A classic economic

shock, where growth eventually rebounds.

Source: What Coronavirus Could Mean for the Global Economy, HBR

U.S. GDP PREDICTIONS COMPARED TO PAST EPIDEMICS

18 U.S. GDP PREDICTIONS COMPARED TO PAST EPIDEMICS

Past epidemics have all been “V-Shaped”:

Source: What Coronavirus Could Mean for the Global Economy, Harvard Business Review

19 EQUITY MARKETS

As fears of recession increased, equity

markets plunged in March with

most exchanges losing

around ⅓ of their value.

Source: An instant economic crisis: How deep and how long? McKinsey & Company

20 EQUITY MARKETS

In China, where the pandemic has subsided, equity markets have suffered less in recent weeks.

21 VOLATILITY INDEXES

Volatility indexes have generally spiked,

hitting readings not seen since the 2008/2009 financial crisis.

22 ECONOMIC OUTLOOK

Source: Assessing the near-term impact of COVID-19 on US workers

U.S. initial unemployment

claims reached an all-time

high of 6.6 million

between March 21-28.

CONSUMER BEHAVIORIMPACT

24 REMINDER FOR CASH CLUNKERS

Cash for Clunkers showed the power of incentives to drive sales

9.6 millionSales pace before Cash for Clunkers

10.7 millionSales pace following

Cash for Clunkers

Source: Did 'Cash-for-Clunkers' work as intended?

25 PREDICTED GLOBAL AD SPEND

In 2020, we expect total media ad

spending worldwide will reach

$691.7 billion up by 7.0% from 2019.

Source: How COVID-19 Has—And Has Not—Affected Global Ad Spending, E-Marketer

26 CONCERNS

Overall concern about the outbreak is back on the rise, with 62% of adults concerned about the spread.

Source: Tracking Public Opinion on the Coronavirus, The Morning Consult

27 CONSUMER CONCERNS

35% of respondents believe people should shelter in place until further notice.

Source: Daily COVID-19 Update: Concern + Media Consumption, Nuvoodoo

28 BEHAVIOR CHANGES

43% of respondents report feeling extremely concerned and significantly impacted by the virus.

29 BEHAVIOR CHANGES

Source: The Weekly Consumer Pulse, William Blair

U.S. consumers have been adjusting their leisure activities since the outbreak.

30 SPENDING CHANGES

Consumers have greatly

increased their

spending on groceries

and have cut back in all other

areas.

Source: How the Virus Transformed the Way

Americans Spend Their Money

31 SHOPPING TRENDS

Various industries have seen extreme increases or decreases in consumption due to social distancing necessities.

Source: How the Virus Transformed the Way Americans Spend Their Money

32 SHOPPING TRENDS

Source: COVID-19: TRACKING THE IMPACT ON FMCG, RETAIL AND MEDIA, Nielsen

Online shopping trends continue to be on the rise, especially for

household cleaning essentials.

U.S. WEEKLY COVID-19 CATEGORY TRENDS % sales growth vs year ago

33 SHOPPING TRENDS

Source: COVID-19 Ecommerce Impact Report, Steelhouse

Purchase and consumer growth for

fitness and furniture verticals continue to rise.

34 INCREASED TIME SPENT ON ONLINE ACTIVITIES

Reading more

news stories

Source: Coronavirus: how news consumption is changing across the U.S. and UK, Global Web Index

Watching more

live videos

Sharing more

photos/videosSharing more memes

↑ 48% 28%

18% 18%

↑ ↑

Sharing more news

Started following

more journalists

35 CONSUMPTION OF NEWS & MEDIA

Source: McKinsey & Company Implications for Business

Consumption of news and media is

evolving toward television, online, & social,

while moving away from print.

Source, Media Consumption during the Coronavirus Pandemic, Comscore

Source: Media Economy: How Far Down is Down? The Myers Report

The Myers Report predicts an

increase in Broadcast Network TV, Social Media, PR, Video Game Advertising, & Content Marketing consumption.

85% of users report using at least one media source more since the outbreak.

39 CONSUMPTION OF TELEVISION

TV viewing levels are up, especially during the evening news:

People watch the

evening news per week

Increase in people

watching the evening news

from the year before

32.2m 42%↑Increase among young

adults aged 25-54

67%↑

Source: The New York Times, The Evening News Is Back

40 CONSUMPTION OF TELEVISION

The top 25 local markets saw, on average, an 11 percent increase in daily households viewing local news.

Source, Media Consumption during the Coronavirus Pandemic, Comscore

41 CONSUMPTION OF RADIO

Radio listenership is trending up, as 29% of users report using it more since the outbreak,

and 31% are using it to keep informed about local cases.

42 CONSUMPTION OF STREAMING VIDEO

During two previous crises that kept people housebound, consumers watched 61% more streaming video content. Predictions

show that Coronavirus will have consumers follow a similar trajectory, expecting streaming video content to rise by over 60%.

Source: Self-Isolating Because of Coronavirus? You’re Probably Watching TV, AdWeek

43 CONSUMPTION OF VIDEO

Source: Video on Demand Transactions Increase in Month of March, Comscore

Comscore has reported video on demand subscription increases in nearly every category.

44 CONSUMPTION OF SOCIAL MEDIA

Twitter has seen that COVID-19 related content is

shared every 45 milliseconds and #coronavirus is

now the second most used hashtag of 2020.

Source: Brand communications in times of crisis, Twitter

45 LONG-TERM SHIFTS IN CONSUMPTION HABITS

Education

Shift from offline to online

E-Commerce

Continued growth, attracting

older generations

Service Delivery

Transformation from

IRL to virtual

Traditional Businesses

Accelerated digital

transformation efforts

Source: What do consumers expect from brands? Kantar

46 LONG-TERM SHIFTS IN CONSUMPTION HABITS

AUTOMOTIVE MARKETIMPACT

Immediately we have seen a huge and expected drop in sales volume, but

are now seeing rises in shopper engagement. Shoppers are now sitting at home and spending more time looking at the cars they plan to buy in the future.

NATIONWIDE SHOPPER METRICS AND SALES

Across the board, sales volumes are down,

but many models are enjoying higher shopper volumes and engagement.

NATIONWIDE PERFORMANCE OF VINS

50 DEALERSHIP CLOSURES BY STATE

States issuing nonessential business closures:

AlaskaCaliforniaColoradoConnecticutDelawareHawaiiIdahoIllinoisIndianaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMissouri

States impacted by dealership sales bans

Montana Nevada New MexicoNorth CarolinaOhioOklahomaPennsylvania Rhode IslandTennesseeTexasVermontVirginiaWashingtonWest VirginiaWisconsin

Source: COVID-19 Updates for the U.S. Retail and Real Estate Industry Source: Automotive News COVID-19 Headlines

OEM IMPACT

1 MILLION+

AUTO WORKERS

people employed in automobile parts and manufacturing in the U.S.

1.3 MILLIONpeople work for auto dealerships

in the U.S.

The United Auto Workers union has been pressuring major manufacturers to continue

to adhere to CDC guidelines.

Source: The New York Times

GENERAL MOTORS

U.S. Manufacturing Suspension:No official date for restart. Plants making face masks.

Consumer Aid: - Flexible payment extensions and

deferrals for current customers.- Providing 0% interest on 84-month

loans and 120-day deferred payments on new-vehicle purchases for select customers.

OEM BREAKDOWN

FORD MOTOR COMPANY

U.S. Manufacturing Suspension:No official date for restart. Michigan plant making respirators.

deferrals for current customers.- 90-day first payment deferral and

payment relief for first three payments.

General Aid:The Ford Fund is donating $500,000 to nonprofit groups and food delivery.

FIAT CHRYSLER AUTOMOTIVES

U.S. Manufacturing Suspension:Through 5/3.

Consumer AId: - Flexible payment extensions and

deferrals for current customers.- Interest-free financing for 84 months

and deferred payment for 90 days on select models.

U.S. Manufacturing Suspension:Resumes 5/11.

Consumer Aid: - Current customer payment extensions

and deferrals. - 90-Day Deferred Payment on new

vehicle sales financed by Honda Financial Services for qualified customers.

- $1,000 cash toward new models. - Low-APR financing for certifies

models.

OEM BREAKDOWN

NISSAN

U.S. Manufacturing Suspension:Resumes mid-May.

Consumer Aid:- Case-by-case payment rescheduling

for current customers. - 0% APR financing- 90 day payment deferral and two

months of payment relief

HYUNDAI

U.S. Manufacturing Suspension:Resumes 5/4.

Consumer Aid: - 90-day deferred payments for current

customers. Extended warranty protection through June.

- 0% financing for 84 months- 120-day payment deferrals on select

models. - Assurance Job Loss Protection will

make up 6 months of payments for customers who buy before 4/30 and lose their jobs.

TOYOTA

U.S. Manufacturing Suspension:Resumes 5/11. Plants making face shields, masks, and ventilators.

deferrals for current customers.- Deferred payments for 90 days on

select new vehicles.

OEM BREAKDOWN

VOLKSWAGEN

U.S. Manufacturing Suspension:No official date for restart.

Consumer Aid:- 90-day payment deferrals and

6-month lease extension for current customers.

- 180-day payment deferrals- 0%, 72-month financing for new-car

buyers.

SUBARU

U.S. Manufacturing Suspension:Through 5/11.

Consumer Aid:- 90-day payment extensions and

6-month lease extensions for current customers.

- 0 interest financing for 63 months on select models

- 90-day payment deferrals

INDUSTRIES IMPACT

Changes in Service:

- Suspending “pool” rides

- Free Uber Eats delivery from local businesses

Messaging:

RIDE SHARES

Changes in Service:

- Suspending shared rides

- Offering compensation to sick drivers

Messaging:

AMERICAN AIRLINES

Changes in Service:

- Waiving flight change feed through 4/30

- Changing flight schedules to eliminate unnecessary travel

Messaging:

TRANSPORTATION EXAMPLES

Changes in Service:

- Assisting with flight cancellations and waiving fees

- Addressing proper cleaning procedures

Messaging:

AMTRAK

Changes in Service:

- No change fees for cancellations- Updates on suspended services- Guides for cancelling reservations

Messaging:

GOOGLE

Changes in Service:

- Small and medium-sized businesses receiving $340 million in Google Ad credits.

- $250 million in ad grants for government organizations

SERVICES EXAMPLES

DEALERSOCKET

Changes in Service:

- Giving test drive technology free for 100 days

- Consumers can request test drives at any location

Messaging:

DIGITAL AIR STRIKE

Changes in Service:

- Retailing platform can conduct sales and vehicle servicing through video and virtual messaging

- Free for 30 days

Messaging:

POSITIVE IMPACT

Social distancing in areas like China and Italy has resulted in

decreased traffic and industrial business pollution and reduced the amount of nitrogen dioxide emissions in the air.

AIR POLLUTION DECLINE

Source: Earth Observatory

Dozens of research organizations across the globe are on

the hunt to uncover a vaccine for the virus, with U.S. researchers already administering a trial study in Washington state.

VACCINE TESTING

Source: PBS

Bill and Melinda Gates have started

backing seven of the most promising vaccines in production.

1.DIGITAL RETAILING

As trends continue to shift toward digital, it is more important than ever to be advertising online.

SUGGESTIONS FOR AUTO RETAILERS

HOME DELIVERY & ONLINE ORDERS

Now is the time to expand services to appeal to online-focused consumers.

3.INVENTORY DRIVEN MARKETING

The sales approach is shifting toward targeting individual consumers. To do this, advertising must focus on your must-sell inventory as opposed to general messaging.

4.UTILIZING DATA

Dealers need to continue to stay informed of fluctuating market data to make informed marketing decisions.

Drawing attention to expanded consumer services can be as easy as adding badges to your digital advertisements.

YOURIMPACT

“If a window of opportunity appears, don't pull down the shade.”

- Tom Peters

lotlinx covid-19 market analysis 04.30 · 3 insights & recommendations...

Documents

· 01.30 pm to 04.30 pm 01.30 pm to 04.30 pm 01.30 pm to...

video streaming © nanda ganesan, ph.d.. video streaming...

brico store, 2011.04.06-04.30

market analysis lotlinx covid-19...& content marketing...

Érdi batthyány sportiskolai Általános...

akciosujsag.hu - diego, 2015.04.01-04.30

pacs numbers: 04.30.-w,04.50.kd,04.25.-g,97.60

akciosujsag.hu - cora, 2012.04.17-04.30

pacs numbers: 04.25.dg, 04.25.d-, 04.30.-w, 04.25 · pacs...

akciosujsag.hu - deichmann, 2011.04.01-04.30

akciosujsag.hu - office depot, 2013.04.02-04.30

pacs numbers: 04.30.db, x04.25.nx, 04.80.nn, 95.55

akciosujsag.hu - diego, 2014.04.01-04.30

(google · 2020. 8. 14. · (captive goat farming scope,...

market analysis lotlinx covid-19 · 2 confidential and...

เดินทางโดย...

punching - lotlinx

akciosujsag.hu - deichmann, 2011.04.01-04.30-2

lotlinx covid-19 market analysis 04.09 · 4/9/2020 ·...

domestic streaming: international streaming