Blog Posts by Margaret Zewatsky

By day, Margaret is a Product Strategist, aptly and effectively "strategizing" to enhance Polk's products and services. By night, Margaret is a super-mom and loves working out, biking, boating and running. With a secret minivan obsession, Margaret aspires to save the almost-extinct minivan segment. In her later years, you'll find Margaret and her many grandkids chilling out on a 52-foot boat cruising into the sunset... Below are links to some of Margaret's additional blog entries: What is the Best Hybrid Strategy for OEMs? Minicars for Mini-Markets? For the Love of Minivans Will Flex Fuel Be Scrapped? Is the U.S. Ready for Indian Vehicles?

I am currently attending the 10th Annual Telematics Detroit 2010. I left the first day with three main points: keep it simple, location services are key and telematics are not just for the luxury market.

1. Keep it simple. There's an app for everything these days available on mobile devices, but this isn't the best strategy for apps appropriate for moving vehicles. Customer retention and conquest sales will depend on an OEM's ability to balance the consumers' increasing desire to incorporate media seamlessly into the driving experience while maintaining vehicle safety. Simple apps designed for automotive use that engage the user, while improving the driving experience, will help win business.
2. Location Services. The first speaker of the conference, Thilo Koslowski from Gartner, revealed the top three applications consumers want. These include mapping, traffic, and weather updates. Seems obvious right? But most drivers are interested in getting from point A to point B in the fastest possible way. So focusing on delivering user location-based information services is key. The challenge will be differentiating vehicle mapping, traffic, and weather functionality from mobile device functionality already available.
3. Not just for the Luxury Market. Luxury vehicles will be the first to market with integrated telematics. But the real numbers start to hit when you incorporate telematics into volume vehicles. Ford is doing this today with their Sync system as is GM with OnStar, but the general consensus at today's Telematics conference was by 2016 industrialized nations will provide telematics on volume vehicles. Not too far away when you consider the automotive development timeframe.

Today's conference has really got me thinking about changes the connected car will bring to consumers and OEMs. Many questions are running through my mind that I'd like your perspective on. Is the key to monetizing telematics in vehicles differentiation or integration with mobile devices? Will regulation stop telematics in its tracks or can regulation even prevent media availability in cars and trucks?

Your opinion matters and I appreciate you sharing it.

Posted by Margaret Zewatsky, Product Strategist, Polk (06.09.10)

Yesterday I participated in an AutomotiveWorld.com webinar titled, "Social Networks and the Global Automotive Industry: the Marketing Opportunity." The conversation got me really excited about the relative ease of connecting with customers and all of the benefits it can bring to the company, employees and customers. 

Social media, as one component of a digital marketing strategy, can bring mass exposure to a brand with engaged followers interested in your subject matter. Employees can get closer to customers, build online relationships and understand customers' needs in real time.  And customers can reap the benefit of instant information -- controlling who they get it from, when they get it and what they get.  
 
The question becomes,"How does a company's social media influence higher sales, customer retention and customer advocacy?" Does tracking "likes" on Facebook, the number of followers on Twitter and the number of hits on your blog page get you the measurement you need to keep going? What else do you think should be tracked to validate an investment in social media?

Posted by Margaret Zewatsky, Product Strategist, Polk (06.04.10)

Mass produced hybrids have come a long way since 2001 when the Prius was first launched in Japan. In 2009, 35 different hybrid models were offered accounting for just over 1 percent of the global market share. One percent (1.28% to be exact) may not seem like a big deal, but the emergence of hybrids is more than a vehicle purchase. It's a culture change. Hybrid sales are a direct results of multiple forces within a market coming together to drive a change in automotive purchase behavior.

These forces encourage consumers to include hybrids into their consideration set and ultimately buy a hybrid:

• High retail fuel prices
• Availability of hybrid supporting infrastructure (i.e. dealerships and service facilities)
• Consumer range and reliability confidence
• Government incentives

These hybrid selling forces have only been seen in more established markets such as Japan or the U.S., which represent 84% of the global hybrid market share. But will this continue with the emergence of new technology such as electric vehicles?

These topics and more are discussed in a new Polk View titled "Asia Pacific Region Propels Growth of Hybrid Market." I invite you to read the article and let me know your thoughts on the future of global hybrid sales including the adoption of hybrids within emerging markets and if Japan can sustain the hybrid sales trend growth experienced in 2009.

Posted by Margaret Zewatsky, Product Strategist, Polk (03.31.2010)

Global hybrid sales trends have continued to increase despite the declining global light vehicle market. Some of the fastest growing light vehicle markets in the world are BRIC nations with China, India and Brazil experiencing light vehicle growth in 2009.

Despite the overall automotive growth in these emerging markets, hybrids have declined. And not just declined, but not sold. In China from January - October of 2009, only 303 vehicles out of nearly 9.7 million sold, were hybrids. For this same time period, India had 61 hybrid sales out of nearly 1.7 million vehicles. And Brazil didn't have a single hybrid vehicle sold during this time period.

So why don't hybrids sell in these otherwise fast growing markets? My best answer for this is a combination of activities including relatively low retail gas prices, no financial incentives from the government to buy "greener" cars that would compensate for the higher sticker price and also the possibility of limited availability due to OEM distribution strategies.

I'm currently working on a global hybrid Polk View analysis that will be published soon and would like to hear your thoughts on why hybrids aren't selling in emerging markets.

Posted by Margaret Zewatsky, Global Market Analyst, Polk (02.09.10)

I'm at the Detroit Auto Show today and there are hybrids and electric vehicles galore. I came to the show with an interest in super small cars and wanted to see and touch the cars I wrote about in my Will Super Small Cars Generate Super Big Sales analysis. I had the opportunity to see the Chevy Spark (I was sorry to see the clam shell doors were replaced by a traditional rear passenger door), the Fiat 500 and the Toyota FT-EVII concept that sits four, but not much more. 

I also had the opportunity to test drive a super small eZone from CT&T. CT&T is a Korean OEM with a fleet of electric vehicles that they are introducing to the U.S. market. This was my first test drive of an electric vehicle other than a golf cart. When I sat in the car I was surprised that I didn't feel cramped, but there wasn't room for my big auto show bag so the CT&T co-pilot held it at his feet. I sat down, was told to go slow and then reached for the gear shifter, but all I found was a button with D and R. I pushed the D for drive, stepped on the petal and away I silently went. You couldn't really tell the acceleration of the car in the basement of the Expo hall, but I don't think you'd win any races. It could be an ideal car for the urban commuter that has the opportunity to plug in or the golf cart community member looking for something different. What do you think? Is there a market for these super small electric vehicles in the U.S.?
 


Posted by Margaret Zewatsky, Global Market Analyst, Polk (1.12.2010)

I'm listening to the speakers at the SAA Outlook conference and one of the speakers, John Casesa, from Casesa Shapiro Group mentioned that there is research to support the demand for "clean cars" which is fueling new technologies such as those seen in Electric Vehicles (EVs). But the sales trend for EVs is predicted to be less than 1 percent of the market in the near term. With an anticipated price of $40K, the Chevy Volt's price may decrease the number of potential buyers. Meanwhile, the lack of supporting infrastructure for EVs may also scare off potential buyers.

This year's Detroit Auto Show is said to be all about electric vehicles, and EVs represent an exciting revolutionary way to create clean cars, but is there volume to support the new EV technology expenses? Bob Lutz (a speaker at tonight's SAA conference) said the Volt has future sales potential of 50-60,000 units a year, and serves as a symbol of the new GM. The Volt technology will work its way into future GM models, but will the volume of these and other OEM vehicles be enough to push EV sales past 1 percent?

Posted by Margaret Zewatsky, Global Market Analyst, Polk (01.10.2010)

I've held nothing back about my love of minivans, but in a time with global platforms and small cars I'm glad Toyota continues to invest in the minivan segment. New Sienna features that I found most thoughtful of the busy American family include:

• 23" second row sliding seats. Translation - I can have the seat closer to the front row for when the baby needs his pacifier while underway or I can move the seat all the way back to let third row passengers in without taking my kid out of their car seat.
• A stowable second row middle seat. Translation - I can have more cup holders and storage when there is only 2 kids in the back or another seat when friends want to come too.
• The SE trim sits lower. Translation - It's easier to get everyone in and out.

Back in 2004 there were 22 minivan players in the U.S. market and the Toyota Sienna was the best selling minivan. Now in 2009, there are 9 players in the market and Honda has been leading sales of this dwindling segment since 2005 while Ford and GM have or are in the process of discontinuing their minivan models. Minivans are now known for being uncool and to many it's seen as a necessary evil. But the Sienna is offering a new sporty SE trim with sports tuned suspension, 19-inch wheels and a bolder design. Maybe now my husband might consider driving one... I doubt it. How about you?

Posted by Margaret Zewatsky, Global Market Analyst, Polk (12.4.2009)

Small cars can provide ultra luxury, too! Luxury OEMs, Rolls Royce and Aston Martin have both announced new releases of small cars in Europe.

Rolls Royce recently announced they are planning to release a special edition Mini Cooper in 2010. Mini Cooper and Rolls Royce are both owned by parent company, BMW. It makes sense to offer a minicar to wealthy Rolls Royce owner garages that is easy on the environment, yet still allows the posh comforts to which they are accustomed.

Aston Martin is also working on a minicar called the Cygnet for the European market. The Cygnet will help the automaker comply with the 2012 emissions regulation. Aston Martin is partnering with Toyota to utilize the iQ platform, but the exterior and interior plans are said to meet the Aston Martin luxury expectations. In the recent minicar analysis I wrote, titled "Will Super Small Cars Generate Super Small Sales", the Cygnet, included in the Western European automotive forecast, was expected to sell 625 units in Western Europe by 2014.

So the big question... With a Mini Cooper starting at $20K and a Rolls Royce Phantom going for $380K+, how much will the Mini Cooper Rolls Royce Edition cost? Anyone ready to place an order?

Posted by Margaret Zewatsky, Global Market Analyst, Polk (11.24.2009)

The Ford Ka minicar, popular in Europe, will not be sold in the U.S. In an article by Automotive News released on November 9, Alan Mulally said the Ka is too small for American tastes. Aside from me immediately agreeing with him, I thought of the recent minicar analysis I wrote titled, "Will Super Small Cars Generate Super Small Sales". The market for minicars in the U.S. is small -- the segment is not forecasted to grow greater than 1% of the U.S. market. If I were an OEM prioritizing my U.S. lineup for the next 5 years, I would consider skipping the minicar segment and focusing on the B segment and the crossovers. Yet Fiat, GM, BMW, Hyundai, Toyota, and Volkswagen are all planning launches within the next 5 years, so there must be some common rationale for offering a minicar.

All this makes me wonder...

• Are so many manufacturers launching minicars to ensure they meet the new CAFE standards?
• Will the automotive forecast hold true or will the American consumer start demanding minicars and if so, will the OEMs be ready?
• Is Ford trying to make the most of the Fiesta launch in early 2010 and drive more volume by not launching a minicar?
• Or is Alan Mulally right and the B segment vehicles are the smallest cars Americans will purchase?

What do you think?

Posted by Margaret Zewatsky, Global Market Analyst, Polk (11.10.2009)