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Castrol Trend Tracker Re-Invents Itself
Even Deeper Under the Skin With a revised summer edition format comparing 1999 service retention performances with those identified in 1994, the latest issue of the Castrol Trend Tracker gets even deeper under the skin of the changing UK automotive parts and service market. It provides new information on the inter-relationship between franchised dealers, fast-fits, independent garages parts distributors or retail parts stores – highlighting the factors that are driving owners of specific marques to visit them for servicing. It looks at the links between car registration trends, parc age profiles, network capacity and where the parts and service potential lies. The ‘swings’ in customer base age profiles since 1994 are also identified - by marque, age and service sector. The usual comprehensive review of distribution channels and the ‘newsbyte’ section are included, but to mark the change in the summer edition format, the half yearly version of the report has a new name – The Castrol Trend Tracker of Automotive Parts, Service and Channel Dynamics.
New Data The new report shows VW and Toyota performing particularly well since 1994 by improving their service retention performances with the <6-year age group. The improvements are bigger with older cars within these age groups. Franchised Dealer < 4 Year Service Retention Change
Franchised Dealer 4-6 Year Service Retention Change
Independent garages show much bigger increases in service penetration as the cars get older. The bigger growth has come from the medium volume marques as their parcs have grown and presented more prospects. Independent Garage 4-6 Year Service Penetration
Independent Garage 7-9 Year Service Penetration
Independent Garage 10 Year+ Service Penetration
The DIY service penetration trends since 1994 are mostly downwards, the medium volume marques showing the least reductions. DIY 7-9 Year Service Penetration
DIY 10 Year+ Service Penetration
The following graphs are examples of the detailed analysis now available in Trend Tracker. We have shown the results of a medium volume marque but all the usual Trend Tracker marque and marque groupings are analysed in the same detail – Fiat Group, Ford, Nissan, Toyota, Other Japanese (Mazda, Honda, Suzuki), Peugeot, Citroen, Renault, Volvo, Rover, Vauxhall, Volkswagen and Other German (Mercedes, BMW, Audi). WHERE VEHICLE LAST SERVICED - % OF TOTALS Comparisons with 1994
Source: Sample Surveys Omnicar, The Castrol Car Service ‘Trend Tracker’
NEW
VEHICLE REGISTRATION AND PARC BUILD TRENDS Source; Pemberton Associates, Sewells Franchised Networks
Customer Base Age Profile Swing Knowing your customer base vehicle age profile is crucial to measuring aftermarket potential and success. So the swings in the sector customer base age profiles are very useful markers – sometimes reflecting improved new vehicle registration trends but not always. They sometimes indicate problems with service and parts strategies or networks. The only franchised dealers increasing their <4 year vehicle age group proportion are Fiat, Renault, Peugeot and VW. Most marques showed decreases. But the analysis of the older age groups show a trend towards increased proportions of older cars within the total customer base of all marques. The same general trend towards a higher proportion of older vehicles in the service provider customer base is identified for independent garages and DIY parts channels. You would expect this as it relates to the overall dynamics of the parc and independent garages gaining work on older cars which might previously received DIY attention. In the case of DIY service this is a worry as the 10-year+ parc is now subject to an increased scrappage rate. So the demise of this sector is likely to speed up with vehicles of the very age showing increased prominence in the DIY service customer base. WHERE VEHICLE LAST SERVICED - % OF TOTALS Customer age profile sample swing since 1994
Source: Sample Surveys Omnicar, The Castrol Car Service ‘Trend Tracker’ It is increasingly important for franchised dealers to relate service and parts strategies to the age of vehicle providing maximum parts and labour potential. As this is gradually getting older it might conflict with the demands placed on dealerships to ‘cuddle up’ to the increased number of new car customers. This can become a problem if network capacity has been reduced to provide high levels of aftersales departmental profit from younger cars still with their first owners. The new Trend Tracker, which includes the new Experian First Owner Index, helps subscribers get a better understanding of these dynamics. The recent changes in ownership of Kwik-Fit and Partco have resulted in some mega and parallel changes in the control of fast-fits and distance retailing programmes. Trend Tracker shows the effects of these changes rating the programme operators by the number of outlets they have on such programmes because some operators have more than one programme.
Microscopic Attention This dual format report now places the UK as the country with the most detailed and comprehensive analysis of the dynamics affecting automotive parts, service and accessory businesses - anywhere in the world. No other aftermarket is given such microscopic attention. Rather than ‘how to’ manuals, they are critical strategic documents for those in the industry charged with understanding the changing automotive parts and service market. They help readers develop more applicable and profitable products, and aftersales service offers that in turn will provide the specific solutions that branch operators are looking for. However, branch operators looking to influence strategic change, and so enhance their careers, will find the reports invaluable as a fund of new thinking to challenge existing perceptions. The changing industry demands changing strategies. But those analysing the industry also need to constantly re-invent themselves. The Castrol Car Service & Customer Satisfaction Trend Tracker accepts this challenge so that it can continue to provide leading edge views for forward thinking companies. Hence, The Castrol Trend Tracker of Automotive Parts, Service and Channel Dynamics. Phone 01733 467191 for more details. (9/99) |
The
latest issue of the Castrol Trend Tracker has just been published
and it shows that since 1994, VW and Toyota are the marques delivering
the most improved dealer service retention results within the <6
year vehicle age group. Fiat and Peugeot have provided independent
garages with their most improved service penetration figures in the
4-year+ vehicle age group during the same period. The DIY service
sector has experienced reduced service penetration across all marques
within the 7 year+ age group, with Renault, and a bunch of Japanese
marques which includes Mazda, Suzuki and Honda, showing the lowest
value reductions. The report also identifies a huge swing towards
an increased proportion of older vehicles within the service customer
base of all service sectors.
