SEMA News—March 2013

RESEARCH
By Steve Campbell

2012 SEMA Consumer Segmentation Report

Know Your Customers to Build Your Business

		The 136-page 2012 SEMA Consumer Segmentation Report—available free of charge to SEMA members—provides insights and sales opportunities among six prominent categories of automotive specialty-equipment purchasers. Ranging from a core group of enthusiasts to the least-savvy consumers of aftermarket parts, these segments and the opportunities they present are fully explored in the report.

From manufacturers and distributors to jobbers and retailers, the automotive specialty-equipment industry is built around meeting consumers’ demands. Understanding which goods and services those consumers are actually interested in requires study of the marketplace, interaction with customers and attention to detail—and that is a pretty fair synopsis of what was done to create the latest offering from the SEMA research team and the Modellers Inc.,a market research and analytics company.

SEMA-member companies rely on the association for targeted, meaningful research that can help them understand and meet their customers’ needs more effectively. They know that the marketplace is comprised of a huge variety of people whose requirements are as diverse as the vehicles they drive and the lifestyles they embrace. But within that mass of differing motivations are some prominent segments that are driven by common attitudes and shared interests. The purpose of the 2012 SEMA Consumer Segmentation Report is to point out how those market divisions can be targeted by SEMA-member companies.

In talking about “segments,” the report is not referring to just the various types of vehicle hobbyists serviced by the industry, such as hot rodders, off-roaders or sport-compact tuners. While each of those categories is crucial to the business community that serves it, this new report looks at people and their economic, demographic and vehicular characteristics. The report examines the diversity of attitudes they have about accessorization, specialty-equipment products and working on their vehicles.

“The 2012 SEMA Consumer Segmentation Report establishes a baseline of consumer groups, which we will use to structure ongoing research efforts,” the report says. “[Industry professionals] can use this robust segmentation scheme to drive improvements across several facets of your business.”

Reviewing the report and understanding market segmentation allows aftermarket businesses to augment sales efforts in a variety of ways:

		The total audience surveyed by the report can be roughly divided into three enthusiast and three general-interest categories. All had purchased automotive specialty-equipment parts in the past year.

• Identify target consumers: By looking at product purchases, vehicle usage and interests, companies can identify the segment(s) that are likely to be their core customers. Understanding the needs of these key consumers can help each business better serve its customers.
• Expand customer base: Expansion opportunities may exist with customers a business hadn’t previously targeted.
• Secondary segments: By recognizing the different needs and interests of consumers, an aftermarket company may be able to tailor services to a wider variety of customers.
• Vehicle platform and usage: Each business’ target segments may show that owners of vehicles it doesn’t currently support have similar needs or interests in the company’s product types.
• Messaging: Consumer needs and benefits, along with interests and hobbies, can point to refined and targeted messaging that will resonate with a company’s customers.
• Marketing: Purchase and research sites, hobbies/interests and vehicle usage can be used to refine marketing strategies and advertising channels.
• Product development: Vehicle usage, interests/hobbies and parts-purchase patterns can spark ideas for new products, line extensions, feature enhancements and cross-selling opportunities for target consumers.

The genesis of the study was based on requests for this type of research from SEMA members, but its gestation began with a series of interviews with member companies that service different sectors of the industry. These conversations provided the fodder from which a consumer questionnaire was developed. The questions were based on the information that the member companies thought most useful to understanding automotive consumers in general and specialty-equipment consumers specifically.

The researchers next held a series of focus-group meetings with consumers who had been identified as buyers of aftermarket parts. The information resulting from these gatherings led to further refinement of the survey questions, uncovering what the researchers defined as “issues and thinking directly from target consumers.”

The final raw research was acquired through a nationwide online survey of 3,000 specialty-equipment consumers in the spring of 2012. The survey subjects were prequalified as U.S. residents over the age of 18 who had spent more than $100 per year on automotive accessories or modifications, not including routine maintenance. They owned all types of vehicles and included both enthusiasts and casual accessory purchasers, and they represented every demographic slice of society.

“For this research we intentionally looked at a broader group of consumers than in our typical research studies,” the report states. “We did this for a few reasons:

“To make sure we’re not missing someone. There may be some people who are consumers in the market but who we might not typically research, since they don’t look like our traditional buyers.

“To make it applicable to the widest range of parts and accessory applications (Remembering that our industry isn’t solely made up of ‘go fast’ upgrades.)

“To identify opportunities for expansion or extension. We want to identify ways that our membership can grow their market by gaining understanding of the broadest consumer needs.”

Based on the questions and insights from the industry and the focus groups, each of the survey participants was asked to rate a series of statements to gauge their feelings about their vehicles as well as their opinions about accessorizing or modifying their cars and trucks. The resulting analysis coalesced around six groups of consumers that displayed distinct feelings about automobiles and customization. The respondents were also asked about their purchase habits and interests in order to develop an understanding of their underlying motivations. Using this information, the researchers gave the six groups names that reflect their levels of interest in automobiles and specialty parts.

Three of the segments were comprised of what are usually called “Enthusiasts,” and those segments were projected to make up a total of about 9% of all vehicle owners.

“Enthusiasts can be more effectively marketed to by recognizing which segment they belong to and developing messaging and communications strategies geared toward their specific motivations,” the researchers said.

From an enthusiast perspective, the top tier of the group is comprised of “Builders.” These are the core automotive hobbyists who are probably most recognized as “gearheads” or “car guys” by the general public. They’re the people who love the time they spend actually working on their vehicles and derive great satisfaction from doing it.

Next in the enthusiast hierarchy are “Drivers.” These are the folks who work on their vehicles to make them more enjoyable. The Driver group accessorizes and modifies vehicles more from the enjoyment of using their cars and trucks rather than from the pleasure of the effort itself.

The third enthusiast segment is the “In-Crowd.” Vehicles are part of this group’s social life. They belong to car clubs and attend car shows, and their accessorization tends to follow trends. They enjoy the recognition they get from having unique or high-profile vehicles.

“Enthusiasts can still be reached through many of the traditional methods, including car shows, races, automotive magazines, television shows and other automotive events,” the report says. “Increasingly, the Internet is becoming their primary research tool (and frequent shopping method), and they are influenced by social-media activities, such as blogs and automotive forums on their favorite automotive topics. However, these are still very much hands-on type people, and they appreciate dealing with knowledgeable people and having access to reputable information sources, such as local specialty shops, manufacturers websites and customer service representatives.”

The other three segments that fit the demographics of the survey were made up of what might be called “General Market” consumers and comprise 12% of all vehicle owners in the United States. These segments are more likely to purchase accessories and appearance products than performance goods, the report says.

The first of the General Market survey participants were labeled as the “Handyman” group. They tend to be do-it-yourself mechanics who perform their own work in order to save money and prolong the life of their vehicles. They may be open to upgrades as part of their vehicle repairs and maintenance. “The Handyman segment represents an opportunity for manufacturers and sellers of certain types of parts based on a positioning of quality, durability and increased fuel mileage,” the report says.

The next group uses vehicles mainly for transportation from place to place and is mostly concerned about function. Labeled as “Commuters,” they use their cars and trucks as everyday drivers and don’t view their vehicles as a reflection of their interests or lifestyles.

And the final group of participants comprises the “Do It for Me (DIFM)” segment. This group relies on professional mechanics for their vehicle maintenance and upgrades. They’re the least automobile-savvy group, but they do still have some interest in accessories and appearance products.

“Quality parts that can be positioned against OEM replacement parts at a competitive price can be a strong motivator [for the Commuter and DIFM segments], especially if highly recommended by independent installation shops,” the report says. “More expensive parts can still be marketed effectively to this audience if value can be demonstrated through longer life, better mileage, etc. Distribution through the national chain parts stores is likely to reach the widest spectrum of potential non-enthusiast customers.”

The report examines core metrics across the segments—what each group spends, what each one buys, where they get their information, where they like to shop, what types of vehicles they own and advice about how to target each group. The metrics also look at the demographic composition of each group—gender, age, income—as well as the types of media programming, reading and activities they enjoy. It further breaks out what each group looks for in the parts they buy, ranking items such as quality, looks, functionality and reputation. For instance, Builders rank performance at the top of their lists, while Commuters are looking primarily for the lowest price and the best reviews.

The report then delves into greater detail about each group, including information about segment size, annual and total spending levels, attitudes about their vehicles, the modifications they’ve made and specific guidance on how to address or message each segment. The modification information includes not only the types of parts and products purchased, but also the reasons behind the purchases and the emphasis put on various types of products. It reviews the specific types of research and shopping tools each group uses, including where and why.

Each individual profile ultimately provides targeted guidance about how to market to the segment, with information about motivations, emotional responses and product features. It also indicates specific media to target, such as enthusiast magazines and websites or more general media.

The final sections of the 136-page report include a series of appendices that reflect the raw data. They include parts tables that show the percentages of modifications performed by each consumer segment, such as engine work, chassis, suspension and wheel modifications and intake, fuel and exhaust upgrades, as well as the vehicle types owned by the various segments.

The 2012 SEMA Consumer Segmentation Report is full of information crucial to aftermarket executives, engineers and developers who wish to understand the automotive specialty-equipment market. But it will also be the basis for further SEMA research, including additional consumer studies, education sessions at upcoming SEMA Shows and webinars discussing how companies may use the data. In fact, all future SEMA consumer research will include segment profiling.

As with nearly all SEMA research information, The 2012 SEMA Consumer Segmentation Report is free to SEMA-member companies. It is available as a PDF download.

SEMA News—March 2013

RESEARCH
By Steve Campbell

2012 SEMA Consumer Segmentation Report

Know Your Customers to Build Your Business

		The 136-page 2012 SEMA Consumer Segmentation Report—available free of charge to SEMA members—provides insights and sales opportunities among six prominent categories of automotive specialty-equipment purchasers. Ranging from a core group of enthusiasts to the least-savvy consumers of aftermarket parts, these segments and the opportunities they present are fully explored in the report.

From manufacturers and distributors to jobbers and retailers, the automotive specialty-equipment industry is built around meeting consumers’ demands. Understanding which goods and services those consumers are actually interested in requires study of the marketplace, interaction with customers and attention to detail—and that is a pretty fair synopsis of what was done to create the latest offering from the SEMA research team and the Modellers Inc.,a market research and analytics company.

SEMA-member companies rely on the association for targeted, meaningful research that can help them understand and meet their customers’ needs more effectively. They know that the marketplace is comprised of a huge variety of people whose requirements are as diverse as the vehicles they drive and the lifestyles they embrace. But within that mass of differing motivations are some prominent segments that are driven by common attitudes and shared interests. The purpose of the 2012 SEMA Consumer Segmentation Report is to point out how those market divisions can be targeted by SEMA-member companies.

In talking about “segments,” the report is not referring to just the various types of vehicle hobbyists serviced by the industry, such as hot rodders, off-roaders or sport-compact tuners. While each of those categories is crucial to the business community that serves it, this new report looks at people and their economic, demographic and vehicular characteristics. The report examines the diversity of attitudes they have about accessorization, specialty-equipment products and working on their vehicles.

“The 2012 SEMA Consumer Segmentation Report establishes a baseline of consumer groups, which we will use to structure ongoing research efforts,” the report says. “[Industry professionals] can use this robust segmentation scheme to drive improvements across several facets of your business.”

Reviewing the report and understanding market segmentation allows aftermarket businesses to augment sales efforts in a variety of ways:

		The total audience surveyed by the report can be roughly divided into three enthusiast and three general-interest categories. All had purchased automotive specialty-equipment parts in the past year.

• Identify target consumers: By looking at product purchases, vehicle usage and interests, companies can identify the segment(s) that are likely to be their core customers. Understanding the needs of these key consumers can help each business better serve its customers.
• Expand customer base: Expansion opportunities may exist with customers a business hadn’t previously targeted.
• Secondary segments: By recognizing the different needs and interests of consumers, an aftermarket company may be able to tailor services to a wider variety of customers.
• Vehicle platform and usage: Each business’ target segments may show that owners of vehicles it doesn’t currently support have similar needs or interests in the company’s product types.
• Messaging: Consumer needs and benefits, along with interests and hobbies, can point to refined and targeted messaging that will resonate with a company’s customers.
• Marketing: Purchase and research sites, hobbies/interests and vehicle usage can be used to refine marketing strategies and advertising channels.
• Product development: Vehicle usage, interests/hobbies and parts-purchase patterns can spark ideas for new products, line extensions, feature enhancements and cross-selling opportunities for target consumers.

The genesis of the study was based on requests for this type of research from SEMA members, but its gestation began with a series of interviews with member companies that service different sectors of the industry. These conversations provided the fodder from which a consumer questionnaire was developed. The questions were based on the information that the member companies thought most useful to understanding automotive consumers in general and specialty-equipment consumers specifically.

The researchers next held a series of focus-group meetings with consumers who had been identified as buyers of aftermarket parts. The information resulting from these gatherings led to further refinement of the survey questions, uncovering what the researchers defined as “issues and thinking directly from target consumers.”

The final raw research was acquired through a nationwide online survey of 3,000 specialty-equipment consumers in the spring of 2012. The survey subjects were prequalified as U.S. residents over the age of 18 who had spent more than $100 per year on automotive accessories or modifications, not including routine maintenance. They owned all types of vehicles and included both enthusiasts and casual accessory purchasers, and they represented every demographic slice of society.

“For this research we intentionally looked at a broader group of consumers than in our typical research studies,” the report states. “We did this for a few reasons:

“To make sure we’re not missing someone. There may be some people who are consumers in the market but who we might not typically research, since they don’t look like our traditional buyers.

“To make it applicable to the widest range of parts and accessory applications (Remembering that our industry isn’t solely made up of ‘go fast’ upgrades.)

“To identify opportunities for expansion or extension. We want to identify ways that our membership can grow their market by gaining understanding of the broadest consumer needs.”

Based on the questions and insights from the industry and the focus groups, each of the survey participants was asked to rate a series of statements to gauge their feelings about their vehicles as well as their opinions about accessorizing or modifying their cars and trucks. The resulting analysis coalesced around six groups of consumers that displayed distinct feelings about automobiles and customization. The respondents were also asked about their purchase habits and interests in order to develop an understanding of their underlying motivations. Using this information, the researchers gave the six groups names that reflect their levels of interest in automobiles and specialty parts.

Three of the segments were comprised of what are usually called “Enthusiasts,” and those segments were projected to make up a total of about 9% of all vehicle owners.

“Enthusiasts can be more effectively marketed to by recognizing which segment they belong to and developing messaging and communications strategies geared toward their specific motivations,” the researchers said.

From an enthusiast perspective, the top tier of the group is comprised of “Builders.” These are the core automotive hobbyists who are probably most recognized as “gearheads” or “car guys” by the general public. They’re the people who love the time they spend actually working on their vehicles and derive great satisfaction from doing it.

Next in the enthusiast hierarchy are “Drivers.” These are the folks who work on their vehicles to make them more enjoyable. The Driver group accessorizes and modifies vehicles more from the enjoyment of using their cars and trucks rather than from the pleasure of the effort itself.

The third enthusiast segment is the “In-Crowd.” Vehicles are part of this group’s social life. They belong to car clubs and attend car shows, and their accessorization tends to follow trends. They enjoy the recognition they get from having unique or high-profile vehicles.

“Enthusiasts can still be reached through many of the traditional methods, including car shows, races, automotive magazines, television shows and other automotive events,” the report says. “Increasingly, the Internet is becoming their primary research tool (and frequent shopping method), and they are influenced by social-media activities, such as blogs and automotive forums on their favorite automotive topics. However, these are still very much hands-on type people, and they appreciate dealing with knowledgeable people and having access to reputable information sources, such as local specialty shops, manufacturers websites and customer service representatives.”

The other three segments that fit the demographics of the survey were made up of what might be called “General Market” consumers and comprise 12% of all vehicle owners in the United States. These segments are more likely to purchase accessories and appearance products than performance goods, the report says.

The first of the General Market survey participants were labeled as the “Handyman” group. They tend to be do-it-yourself mechanics who perform their own work in order to save money and prolong the life of their vehicles. They may be open to upgrades as part of their vehicle repairs and maintenance. “The Handyman segment represents an opportunity for manufacturers and sellers of certain types of parts based on a positioning of quality, durability and increased fuel mileage,” the report says.

The next group uses vehicles mainly for transportation from place to place and is mostly concerned about function. Labeled as “Commuters,” they use their cars and trucks as everyday drivers and don’t view their vehicles as a reflection of their interests or lifestyles.

And the final group of participants comprises the “Do It for Me (DIFM)” segment. This group relies on professional mechanics for their vehicle maintenance and upgrades. They’re the least automobile-savvy group, but they do still have some interest in accessories and appearance products.

“Quality parts that can be positioned against OEM replacement parts at a competitive price can be a strong motivator [for the Commuter and DIFM segments], especially if highly recommended by independent installation shops,” the report says. “More expensive parts can still be marketed effectively to this audience if value can be demonstrated through longer life, better mileage, etc. Distribution through the national chain parts stores is likely to reach the widest spectrum of potential non-enthusiast customers.”

The report examines core metrics across the segments—what each group spends, what each one buys, where they get their information, where they like to shop, what types of vehicles they own and advice about how to target each group. The metrics also look at the demographic composition of each group—gender, age, income—as well as the types of media programming, reading and activities they enjoy. It further breaks out what each group looks for in the parts they buy, ranking items such as quality, looks, functionality and reputation. For instance, Builders rank performance at the top of their lists, while Commuters are looking primarily for the lowest price and the best reviews.

The report then delves into greater detail about each group, including information about segment size, annual and total spending levels, attitudes about their vehicles, the modifications they’ve made and specific guidance on how to address or message each segment. The modification information includes not only the types of parts and products purchased, but also the reasons behind the purchases and the emphasis put on various types of products. It reviews the specific types of research and shopping tools each group uses, including where and why.

Each individual profile ultimately provides targeted guidance about how to market to the segment, with information about motivations, emotional responses and product features. It also indicates specific media to target, such as enthusiast magazines and websites or more general media.

The final sections of the 136-page report include a series of appendices that reflect the raw data. They include parts tables that show the percentages of modifications performed by each consumer segment, such as engine work, chassis, suspension and wheel modifications and intake, fuel and exhaust upgrades, as well as the vehicle types owned by the various segments.

The 2012 SEMA Consumer Segmentation Report is full of information crucial to aftermarket executives, engineers and developers who wish to understand the automotive specialty-equipment market. But it will also be the basis for further SEMA research, including additional consumer studies, education sessions at upcoming SEMA Shows and webinars discussing how companies may use the data. In fact, all future SEMA consumer research will include segment profiling.

As with nearly all SEMA research information, The 2012 SEMA Consumer Segmentation Report is free to SEMA-member companies. It is available as a PDF download.

SEMA News—March 2013

RESEARCH
By Steve Campbell

2012 SEMA Consumer Segmentation Report

Know Your Customers to Build Your Business

		The 136-page 2012 SEMA Consumer Segmentation Report—available free of charge to SEMA members—provides insights and sales opportunities among six prominent categories of automotive specialty-equipment purchasers. Ranging from a core group of enthusiasts to the least-savvy consumers of aftermarket parts, these segments and the opportunities they present are fully explored in the report.

From manufacturers and distributors to jobbers and retailers, the automotive specialty-equipment industry is built around meeting consumers’ demands. Understanding which goods and services those consumers are actually interested in requires study of the marketplace, interaction with customers and attention to detail—and that is a pretty fair synopsis of what was done to create the latest offering from the SEMA research team and the Modellers Inc.,a market research and analytics company.

SEMA-member companies rely on the association for targeted, meaningful research that can help them understand and meet their customers’ needs more effectively. They know that the marketplace is comprised of a huge variety of people whose requirements are as diverse as the vehicles they drive and the lifestyles they embrace. But within that mass of differing motivations are some prominent segments that are driven by common attitudes and shared interests. The purpose of the 2012 SEMA Consumer Segmentation Report is to point out how those market divisions can be targeted by SEMA-member companies.

In talking about “segments,” the report is not referring to just the various types of vehicle hobbyists serviced by the industry, such as hot rodders, off-roaders or sport-compact tuners. While each of those categories is crucial to the business community that serves it, this new report looks at people and their economic, demographic and vehicular characteristics. The report examines the diversity of attitudes they have about accessorization, specialty-equipment products and working on their vehicles.

“The 2012 SEMA Consumer Segmentation Report establishes a baseline of consumer groups, which we will use to structure ongoing research efforts,” the report says. “[Industry professionals] can use this robust segmentation scheme to drive improvements across several facets of your business.”

Reviewing the report and understanding market segmentation allows aftermarket businesses to augment sales efforts in a variety of ways:

		The total audience surveyed by the report can be roughly divided into three enthusiast and three general-interest categories. All had purchased automotive specialty-equipment parts in the past year.

• Identify target consumers: By looking at product purchases, vehicle usage and interests, companies can identify the segment(s) that are likely to be their core customers. Understanding the needs of these key consumers can help each business better serve its customers.
• Expand customer base: Expansion opportunities may exist with customers a business hadn’t previously targeted.
• Secondary segments: By recognizing the different needs and interests of consumers, an aftermarket company may be able to tailor services to a wider variety of customers.
• Vehicle platform and usage: Each business’ target segments may show that owners of vehicles it doesn’t currently support have similar needs or interests in the company’s product types.
• Messaging: Consumer needs and benefits, along with interests and hobbies, can point to refined and targeted messaging that will resonate with a company’s customers.
• Marketing: Purchase and research sites, hobbies/interests and vehicle usage can be used to refine marketing strategies and advertising channels.
• Product development: Vehicle usage, interests/hobbies and parts-purchase patterns can spark ideas for new products, line extensions, feature enhancements and cross-selling opportunities for target consumers.

The genesis of the study was based on requests for this type of research from SEMA members, but its gestation began with a series of interviews with member companies that service different sectors of the industry. These conversations provided the fodder from which a consumer questionnaire was developed. The questions were based on the information that the member companies thought most useful to understanding automotive consumers in general and specialty-equipment consumers specifically.

The researchers next held a series of focus-group meetings with consumers who had been identified as buyers of aftermarket parts. The information resulting from these gatherings led to further refinement of the survey questions, uncovering what the researchers defined as “issues and thinking directly from target consumers.”

The final raw research was acquired through a nationwide online survey of 3,000 specialty-equipment consumers in the spring of 2012. The survey subjects were prequalified as U.S. residents over the age of 18 who had spent more than $100 per year on automotive accessories or modifications, not including routine maintenance. They owned all types of vehicles and included both enthusiasts and casual accessory purchasers, and they represented every demographic slice of society.

“For this research we intentionally looked at a broader group of consumers than in our typical research studies,” the report states. “We did this for a few reasons:

“To make sure we’re not missing someone. There may be some people who are consumers in the market but who we might not typically research, since they don’t look like our traditional buyers.

“To make it applicable to the widest range of parts and accessory applications (Remembering that our industry isn’t solely made up of ‘go fast’ upgrades.)

“To identify opportunities for expansion or extension. We want to identify ways that our membership can grow their market by gaining understanding of the broadest consumer needs.”

Based on the questions and insights from the industry and the focus groups, each of the survey participants was asked to rate a series of statements to gauge their feelings about their vehicles as well as their opinions about accessorizing or modifying their cars and trucks. The resulting analysis coalesced around six groups of consumers that displayed distinct feelings about automobiles and customization. The respondents were also asked about their purchase habits and interests in order to develop an understanding of their underlying motivations. Using this information, the researchers gave the six groups names that reflect their levels of interest in automobiles and specialty parts.

Three of the segments were comprised of what are usually called “Enthusiasts,” and those segments were projected to make up a total of about 9% of all vehicle owners.

“Enthusiasts can be more effectively marketed to by recognizing which segment they belong to and developing messaging and communications strategies geared toward their specific motivations,” the researchers said.

From an enthusiast perspective, the top tier of the group is comprised of “Builders.” These are the core automotive hobbyists who are probably most recognized as “gearheads” or “car guys” by the general public. They’re the people who love the time they spend actually working on their vehicles and derive great satisfaction from doing it.

Next in the enthusiast hierarchy are “Drivers.” These are the folks who work on their vehicles to make them more enjoyable. The Driver group accessorizes and modifies vehicles more from the enjoyment of using their cars and trucks rather than from the pleasure of the effort itself.

The third enthusiast segment is the “In-Crowd.” Vehicles are part of this group’s social life. They belong to car clubs and attend car shows, and their accessorization tends to follow trends. They enjoy the recognition they get from having unique or high-profile vehicles.

“Enthusiasts can still be reached through many of the traditional methods, including car shows, races, automotive magazines, television shows and other automotive events,” the report says. “Increasingly, the Internet is becoming their primary research tool (and frequent shopping method), and they are influenced by social-media activities, such as blogs and automotive forums on their favorite automotive topics. However, these are still very much hands-on type people, and they appreciate dealing with knowledgeable people and having access to reputable information sources, such as local specialty shops, manufacturers websites and customer service representatives.”

The other three segments that fit the demographics of the survey were made up of what might be called “General Market” consumers and comprise 12% of all vehicle owners in the United States. These segments are more likely to purchase accessories and appearance products than performance goods, the report says.

The first of the General Market survey participants were labeled as the “Handyman” group. They tend to be do-it-yourself mechanics who perform their own work in order to save money and prolong the life of their vehicles. They may be open to upgrades as part of their vehicle repairs and maintenance. “The Handyman segment represents an opportunity for manufacturers and sellers of certain types of parts based on a positioning of quality, durability and increased fuel mileage,” the report says.

The next group uses vehicles mainly for transportation from place to place and is mostly concerned about function. Labeled as “Commuters,” they use their cars and trucks as everyday drivers and don’t view their vehicles as a reflection of their interests or lifestyles.

And the final group of participants comprises the “Do It for Me (DIFM)” segment. This group relies on professional mechanics for their vehicle maintenance and upgrades. They’re the least automobile-savvy group, but they do still have some interest in accessories and appearance products.

“Quality parts that can be positioned against OEM replacement parts at a competitive price can be a strong motivator [for the Commuter and DIFM segments], especially if highly recommended by independent installation shops,” the report says. “More expensive parts can still be marketed effectively to this audience if value can be demonstrated through longer life, better mileage, etc. Distribution through the national chain parts stores is likely to reach the widest spectrum of potential non-enthusiast customers.”

The report examines core metrics across the segments—what each group spends, what each one buys, where they get their information, where they like to shop, what types of vehicles they own and advice about how to target each group. The metrics also look at the demographic composition of each group—gender, age, income—as well as the types of media programming, reading and activities they enjoy. It further breaks out what each group looks for in the parts they buy, ranking items such as quality, looks, functionality and reputation. For instance, Builders rank performance at the top of their lists, while Commuters are looking primarily for the lowest price and the best reviews.

The report then delves into greater detail about each group, including information about segment size, annual and total spending levels, attitudes about their vehicles, the modifications they’ve made and specific guidance on how to address or message each segment. The modification information includes not only the types of parts and products purchased, but also the reasons behind the purchases and the emphasis put on various types of products. It reviews the specific types of research and shopping tools each group uses, including where and why.

Each individual profile ultimately provides targeted guidance about how to market to the segment, with information about motivations, emotional responses and product features. It also indicates specific media to target, such as enthusiast magazines and websites or more general media.

The final sections of the 136-page report include a series of appendices that reflect the raw data. They include parts tables that show the percentages of modifications performed by each consumer segment, such as engine work, chassis, suspension and wheel modifications and intake, fuel and exhaust upgrades, as well as the vehicle types owned by the various segments.

The 2012 SEMA Consumer Segmentation Report is full of information crucial to aftermarket executives, engineers and developers who wish to understand the automotive specialty-equipment market. But it will also be the basis for further SEMA research, including additional consumer studies, education sessions at upcoming SEMA Shows and webinars discussing how companies may use the data. In fact, all future SEMA consumer research will include segment profiling.

As with nearly all SEMA research information, The 2012 SEMA Consumer Segmentation Report is free to SEMA-member companies. It is available as a PDF download.

SEMA News—March 2013

RESEARCH
By Steve Campbell

2012 SEMA Consumer Segmentation Report

Know Your Customers to Build Your Business

		The 136-page 2012 SEMA Consumer Segmentation Report—available free of charge to SEMA members—provides insights and sales opportunities among six prominent categories of automotive specialty-equipment purchasers. Ranging from a core group of enthusiasts to the least-savvy consumers of aftermarket parts, these segments and the opportunities they present are fully explored in the report.

From manufacturers and distributors to jobbers and retailers, the automotive specialty-equipment industry is built around meeting consumers’ demands. Understanding which goods and services those consumers are actually interested in requires study of the marketplace, interaction with customers and attention to detail—and that is a pretty fair synopsis of what was done to create the latest offering from the SEMA research team and the Modellers Inc.,a market research and analytics company.

SEMA-member companies rely on the association for targeted, meaningful research that can help them understand and meet their customers’ needs more effectively. They know that the marketplace is comprised of a huge variety of people whose requirements are as diverse as the vehicles they drive and the lifestyles they embrace. But within that mass of differing motivations are some prominent segments that are driven by common attitudes and shared interests. The purpose of the 2012 SEMA Consumer Segmentation Report is to point out how those market divisions can be targeted by SEMA-member companies.

In talking about “segments,” the report is not referring to just the various types of vehicle hobbyists serviced by the industry, such as hot rodders, off-roaders or sport-compact tuners. While each of those categories is crucial to the business community that serves it, this new report looks at people and their economic, demographic and vehicular characteristics. The report examines the diversity of attitudes they have about accessorization, specialty-equipment products and working on their vehicles.

“The 2012 SEMA Consumer Segmentation Report establishes a baseline of consumer groups, which we will use to structure ongoing research efforts,” the report says. “[Industry professionals] can use this robust segmentation scheme to drive improvements across several facets of your business.”

Reviewing the report and understanding market segmentation allows aftermarket businesses to augment sales efforts in a variety of ways:

		The total audience surveyed by the report can be roughly divided into three enthusiast and three general-interest categories. All had purchased automotive specialty-equipment parts in the past year.

• Identify target consumers: By looking at product purchases, vehicle usage and interests, companies can identify the segment(s) that are likely to be their core customers. Understanding the needs of these key consumers can help each business better serve its customers.
• Expand customer base: Expansion opportunities may exist with customers a business hadn’t previously targeted.
• Secondary segments: By recognizing the different needs and interests of consumers, an aftermarket company may be able to tailor services to a wider variety of customers.
• Vehicle platform and usage: Each business’ target segments may show that owners of vehicles it doesn’t currently support have similar needs or interests in the company’s product types.
• Messaging: Consumer needs and benefits, along with interests and hobbies, can point to refined and targeted messaging that will resonate with a company’s customers.
• Marketing: Purchase and research sites, hobbies/interests and vehicle usage can be used to refine marketing strategies and advertising channels.
• Product development: Vehicle usage, interests/hobbies and parts-purchase patterns can spark ideas for new products, line extensions, feature enhancements and cross-selling opportunities for target consumers.

The genesis of the study was based on requests for this type of research from SEMA members, but its gestation began with a series of interviews with member companies that service different sectors of the industry. These conversations provided the fodder from which a consumer questionnaire was developed. The questions were based on the information that the member companies thought most useful to understanding automotive consumers in general and specialty-equipment consumers specifically.

The researchers next held a series of focus-group meetings with consumers who had been identified as buyers of aftermarket parts. The information resulting from these gatherings led to further refinement of the survey questions, uncovering what the researchers defined as “issues and thinking directly from target consumers.”

The final raw research was acquired through a nationwide online survey of 3,000 specialty-equipment consumers in the spring of 2012. The survey subjects were prequalified as U.S. residents over the age of 18 who had spent more than $100 per year on automotive accessories or modifications, not including routine maintenance. They owned all types of vehicles and included both enthusiasts and casual accessory purchasers, and they represented every demographic slice of society.

“For this research we intentionally looked at a broader group of consumers than in our typical research studies,” the report states. “We did this for a few reasons:

“To make sure we’re not missing someone. There may be some people who are consumers in the market but who we might not typically research, since they don’t look like our traditional buyers.

“To make it applicable to the widest range of parts and accessory applications (Remembering that our industry isn’t solely made up of ‘go fast’ upgrades.)

“To identify opportunities for expansion or extension. We want to identify ways that our membership can grow their market by gaining understanding of the broadest consumer needs.”

Based on the questions and insights from the industry and the focus groups, each of the survey participants was asked to rate a series of statements to gauge their feelings about their vehicles as well as their opinions about accessorizing or modifying their cars and trucks. The resulting analysis coalesced around six groups of consumers that displayed distinct feelings about automobiles and customization. The respondents were also asked about their purchase habits and interests in order to develop an understanding of their underlying motivations. Using this information, the researchers gave the six groups names that reflect their levels of interest in automobiles and specialty parts.

Three of the segments were comprised of what are usually called “Enthusiasts,” and those segments were projected to make up a total of about 9% of all vehicle owners.

“Enthusiasts can be more effectively marketed to by recognizing which segment they belong to and developing messaging and communications strategies geared toward their specific motivations,” the researchers said.

From an enthusiast perspective, the top tier of the group is comprised of “Builders.” These are the core automotive hobbyists who are probably most recognized as “gearheads” or “car guys” by the general public. They’re the people who love the time they spend actually working on their vehicles and derive great satisfaction from doing it.

Next in the enthusiast hierarchy are “Drivers.” These are the folks who work on their vehicles to make them more enjoyable. The Driver group accessorizes and modifies vehicles more from the enjoyment of using their cars and trucks rather than from the pleasure of the effort itself.

The third enthusiast segment is the “In-Crowd.” Vehicles are part of this group’s social life. They belong to car clubs and attend car shows, and their accessorization tends to follow trends. They enjoy the recognition they get from having unique or high-profile vehicles.

“Enthusiasts can still be reached through many of the traditional methods, including car shows, races, automotive magazines, television shows and other automotive events,” the report says. “Increasingly, the Internet is becoming their primary research tool (and frequent shopping method), and they are influenced by social-media activities, such as blogs and automotive forums on their favorite automotive topics. However, these are still very much hands-on type people, and they appreciate dealing with knowledgeable people and having access to reputable information sources, such as local specialty shops, manufacturers websites and customer service representatives.”

The other three segments that fit the demographics of the survey were made up of what might be called “General Market” consumers and comprise 12% of all vehicle owners in the United States. These segments are more likely to purchase accessories and appearance products than performance goods, the report says.

The first of the General Market survey participants were labeled as the “Handyman” group. They tend to be do-it-yourself mechanics who perform their own work in order to save money and prolong the life of their vehicles. They may be open to upgrades as part of their vehicle repairs and maintenance. “The Handyman segment represents an opportunity for manufacturers and sellers of certain types of parts based on a positioning of quality, durability and increased fuel mileage,” the report says.

The next group uses vehicles mainly for transportation from place to place and is mostly concerned about function. Labeled as “Commuters,” they use their cars and trucks as everyday drivers and don’t view their vehicles as a reflection of their interests or lifestyles.

And the final group of participants comprises the “Do It for Me (DIFM)” segment. This group relies on professional mechanics for their vehicle maintenance and upgrades. They’re the least automobile-savvy group, but they do still have some interest in accessories and appearance products.

“Quality parts that can be positioned against OEM replacement parts at a competitive price can be a strong motivator [for the Commuter and DIFM segments], especially if highly recommended by independent installation shops,” the report says. “More expensive parts can still be marketed effectively to this audience if value can be demonstrated through longer life, better mileage, etc. Distribution through the national chain parts stores is likely to reach the widest spectrum of potential non-enthusiast customers.”

The report examines core metrics across the segments—what each group spends, what each one buys, where they get their information, where they like to shop, what types of vehicles they own and advice about how to target each group. The metrics also look at the demographic composition of each group—gender, age, income—as well as the types of media programming, reading and activities they enjoy. It further breaks out what each group looks for in the parts they buy, ranking items such as quality, looks, functionality and reputation. For instance, Builders rank performance at the top of their lists, while Commuters are looking primarily for the lowest price and the best reviews.

The report then delves into greater detail about each group, including information about segment size, annual and total spending levels, attitudes about their vehicles, the modifications they’ve made and specific guidance on how to address or message each segment. The modification information includes not only the types of parts and products purchased, but also the reasons behind the purchases and the emphasis put on various types of products. It reviews the specific types of research and shopping tools each group uses, including where and why.

Each individual profile ultimately provides targeted guidance about how to market to the segment, with information about motivations, emotional responses and product features. It also indicates specific media to target, such as enthusiast magazines and websites or more general media.

The final sections of the 136-page report include a series of appendices that reflect the raw data. They include parts tables that show the percentages of modifications performed by each consumer segment, such as engine work, chassis, suspension and wheel modifications and intake, fuel and exhaust upgrades, as well as the vehicle types owned by the various segments.

The 2012 SEMA Consumer Segmentation Report is full of information crucial to aftermarket executives, engineers and developers who wish to understand the automotive specialty-equipment market. But it will also be the basis for further SEMA research, including additional consumer studies, education sessions at upcoming SEMA Shows and webinars discussing how companies may use the data. In fact, all future SEMA consumer research will include segment profiling.

As with nearly all SEMA research information, The 2012 SEMA Consumer Segmentation Report is free to SEMA-member companies. It is available as a PDF download.

SEMA News—March 2013

RESEARCH
By Steve Campbell

2012 SEMA Consumer Segmentation Report

Know Your Customers to Build Your Business

		The 136-page 2012 SEMA Consumer Segmentation Report—available free of charge to SEMA members—provides insights and sales opportunities among six prominent categories of automotive specialty-equipment purchasers. Ranging from a core group of enthusiasts to the least-savvy consumers of aftermarket parts, these segments and the opportunities they present are fully explored in the report.

From manufacturers and distributors to jobbers and retailers, the automotive specialty-equipment industry is built around meeting consumers’ demands. Understanding which goods and services those consumers are actually interested in requires study of the marketplace, interaction with customers and attention to detail—and that is a pretty fair synopsis of what was done to create the latest offering from the SEMA research team and the Modellers Inc.,a market research and analytics company.

SEMA-member companies rely on the association for targeted, meaningful research that can help them understand and meet their customers’ needs more effectively. They know that the marketplace is comprised of a huge variety of people whose requirements are as diverse as the vehicles they drive and the lifestyles they embrace. But within that mass of differing motivations are some prominent segments that are driven by common attitudes and shared interests. The purpose of the 2012 SEMA Consumer Segmentation Report is to point out how those market divisions can be targeted by SEMA-member companies.

In talking about “segments,” the report is not referring to just the various types of vehicle hobbyists serviced by the industry, such as hot rodders, off-roaders or sport-compact tuners. While each of those categories is crucial to the business community that serves it, this new report looks at people and their economic, demographic and vehicular characteristics. The report examines the diversity of attitudes they have about accessorization, specialty-equipment products and working on their vehicles.

“The 2012 SEMA Consumer Segmentation Report establishes a baseline of consumer groups, which we will use to structure ongoing research efforts,” the report says. “[Industry professionals] can use this robust segmentation scheme to drive improvements across several facets of your business.”

Reviewing the report and understanding market segmentation allows aftermarket businesses to augment sales efforts in a variety of ways:

		The total audience surveyed by the report can be roughly divided into three enthusiast and three general-interest categories. All had purchased automotive specialty-equipment parts in the past year.

• Identify target consumers: By looking at product purchases, vehicle usage and interests, companies can identify the segment(s) that are likely to be their core customers. Understanding the needs of these key consumers can help each business better serve its customers.
• Expand customer base: Expansion opportunities may exist with customers a business hadn’t previously targeted.
• Secondary segments: By recognizing the different needs and interests of consumers, an aftermarket company may be able to tailor services to a wider variety of customers.
• Vehicle platform and usage: Each business’ target segments may show that owners of vehicles it doesn’t currently support have similar needs or interests in the company’s product types.
• Messaging: Consumer needs and benefits, along with interests and hobbies, can point to refined and targeted messaging that will resonate with a company’s customers.
• Marketing: Purchase and research sites, hobbies/interests and vehicle usage can be used to refine marketing strategies and advertising channels.
• Product development: Vehicle usage, interests/hobbies and parts-purchase patterns can spark ideas for new products, line extensions, feature enhancements and cross-selling opportunities for target consumers.

The genesis of the study was based on requests for this type of research from SEMA members, but its gestation began with a series of interviews with member companies that service different sectors of the industry. These conversations provided the fodder from which a consumer questionnaire was developed. The questions were based on the information that the member companies thought most useful to understanding automotive consumers in general and specialty-equipment consumers specifically.

The researchers next held a series of focus-group meetings with consumers who had been identified as buyers of aftermarket parts. The information resulting from these gatherings led to further refinement of the survey questions, uncovering what the researchers defined as “issues and thinking directly from target consumers.”

The final raw research was acquired through a nationwide online survey of 3,000 specialty-equipment consumers in the spring of 2012. The survey subjects were prequalified as U.S. residents over the age of 18 who had spent more than $100 per year on automotive accessories or modifications, not including routine maintenance. They owned all types of vehicles and included both enthusiasts and casual accessory purchasers, and they represented every demographic slice of society.

“For this research we intentionally looked at a broader group of consumers than in our typical research studies,” the report states. “We did this for a few reasons:

“To make sure we’re not missing someone. There may be some people who are consumers in the market but who we might not typically research, since they don’t look like our traditional buyers.

“To make it applicable to the widest range of parts and accessory applications (Remembering that our industry isn’t solely made up of ‘go fast’ upgrades.)

“To identify opportunities for expansion or extension. We want to identify ways that our membership can grow their market by gaining understanding of the broadest consumer needs.”

Based on the questions and insights from the industry and the focus groups, each of the survey participants was asked to rate a series of statements to gauge their feelings about their vehicles as well as their opinions about accessorizing or modifying their cars and trucks. The resulting analysis coalesced around six groups of consumers that displayed distinct feelings about automobiles and customization. The respondents were also asked about their purchase habits and interests in order to develop an understanding of their underlying motivations. Using this information, the researchers gave the six groups names that reflect their levels of interest in automobiles and specialty parts.

Three of the segments were comprised of what are usually called “Enthusiasts,” and those segments were projected to make up a total of about 9% of all vehicle owners.

“Enthusiasts can be more effectively marketed to by recognizing which segment they belong to and developing messaging and communications strategies geared toward their specific motivations,” the researchers said.

From an enthusiast perspective, the top tier of the group is comprised of “Builders.” These are the core automotive hobbyists who are probably most recognized as “gearheads” or “car guys” by the general public. They’re the people who love the time they spend actually working on their vehicles and derive great satisfaction from doing it.

Next in the enthusiast hierarchy are “Drivers.” These are the folks who work on their vehicles to make them more enjoyable. The Driver group accessorizes and modifies vehicles more from the enjoyment of using their cars and trucks rather than from the pleasure of the effort itself.

The third enthusiast segment is the “In-Crowd.” Vehicles are part of this group’s social life. They belong to car clubs and attend car shows, and their accessorization tends to follow trends. They enjoy the recognition they get from having unique or high-profile vehicles.

“Enthusiasts can still be reached through many of the traditional methods, including car shows, races, automotive magazines, television shows and other automotive events,” the report says. “Increasingly, the Internet is becoming their primary research tool (and frequent shopping method), and they are influenced by social-media activities, such as blogs and automotive forums on their favorite automotive topics. However, these are still very much hands-on type people, and they appreciate dealing with knowledgeable people and having access to reputable information sources, such as local specialty shops, manufacturers websites and customer service representatives.”

The other three segments that fit the demographics of the survey were made up of what might be called “General Market” consumers and comprise 12% of all vehicle owners in the United States. These segments are more likely to purchase accessories and appearance products than performance goods, the report says.

The first of the General Market survey participants were labeled as the “Handyman” group. They tend to be do-it-yourself mechanics who perform their own work in order to save money and prolong the life of their vehicles. They may be open to upgrades as part of their vehicle repairs and maintenance. “The Handyman segment represents an opportunity for manufacturers and sellers of certain types of parts based on a positioning of quality, durability and increased fuel mileage,” the report says.

The next group uses vehicles mainly for transportation from place to place and is mostly concerned about function. Labeled as “Commuters,” they use their cars and trucks as everyday drivers and don’t view their vehicles as a reflection of their interests or lifestyles.

And the final group of participants comprises the “Do It for Me (DIFM)” segment. This group relies on professional mechanics for their vehicle maintenance and upgrades. They’re the least automobile-savvy group, but they do still have some interest in accessories and appearance products.

“Quality parts that can be positioned against OEM replacement parts at a competitive price can be a strong motivator [for the Commuter and DIFM segments], especially if highly recommended by independent installation shops,” the report says. “More expensive parts can still be marketed effectively to this audience if value can be demonstrated through longer life, better mileage, etc. Distribution through the national chain parts stores is likely to reach the widest spectrum of potential non-enthusiast customers.”

The report examines core metrics across the segments—what each group spends, what each one buys, where they get their information, where they like to shop, what types of vehicles they own and advice about how to target each group. The metrics also look at the demographic composition of each group—gender, age, income—as well as the types of media programming, reading and activities they enjoy. It further breaks out what each group looks for in the parts they buy, ranking items such as quality, looks, functionality and reputation. For instance, Builders rank performance at the top of their lists, while Commuters are looking primarily for the lowest price and the best reviews.

The report then delves into greater detail about each group, including information about segment size, annual and total spending levels, attitudes about their vehicles, the modifications they’ve made and specific guidance on how to address or message each segment. The modification information includes not only the types of parts and products purchased, but also the reasons behind the purchases and the emphasis put on various types of products. It reviews the specific types of research and shopping tools each group uses, including where and why.

Each individual profile ultimately provides targeted guidance about how to market to the segment, with information about motivations, emotional responses and product features. It also indicates specific media to target, such as enthusiast magazines and websites or more general media.

The final sections of the 136-page report include a series of appendices that reflect the raw data. They include parts tables that show the percentages of modifications performed by each consumer segment, such as engine work, chassis, suspension and wheel modifications and intake, fuel and exhaust upgrades, as well as the vehicle types owned by the various segments.

The 2012 SEMA Consumer Segmentation Report is full of information crucial to aftermarket executives, engineers and developers who wish to understand the automotive specialty-equipment market. But it will also be the basis for further SEMA research, including additional consumer studies, education sessions at upcoming SEMA Shows and webinars discussing how companies may use the data. In fact, all future SEMA consumer research will include segment profiling.

As with nearly all SEMA research information, The 2012 SEMA Consumer Segmentation Report is free to SEMA-member companies. It is available as a PDF download.

SEMA News—March 2013

RESEARCH
By Steve Campbell

2012 SEMA Consumer Segmentation Report

Know Your Customers to Build Your Business

		The 136-page 2012 SEMA Consumer Segmentation Report—available free of charge to SEMA members—provides insights and sales opportunities among six prominent categories of automotive specialty-equipment purchasers. Ranging from a core group of enthusiasts to the least-savvy consumers of aftermarket parts, these segments and the opportunities they present are fully explored in the report.

From manufacturers and distributors to jobbers and retailers, the automotive specialty-equipment industry is built around meeting consumers’ demands. Understanding which goods and services those consumers are actually interested in requires study of the marketplace, interaction with customers and attention to detail—and that is a pretty fair synopsis of what was done to create the latest offering from the SEMA research team and the Modellers Inc.,a market research and analytics company.

SEMA-member companies rely on the association for targeted, meaningful research that can help them understand and meet their customers’ needs more effectively. They know that the marketplace is comprised of a huge variety of people whose requirements are as diverse as the vehicles they drive and the lifestyles they embrace. But within that mass of differing motivations are some prominent segments that are driven by common attitudes and shared interests. The purpose of the 2012 SEMA Consumer Segmentation Report is to point out how those market divisions can be targeted by SEMA-member companies.

In talking about “segments,” the report is not referring to just the various types of vehicle hobbyists serviced by the industry, such as hot rodders, off-roaders or sport-compact tuners. While each of those categories is crucial to the business community that serves it, this new report looks at people and their economic, demographic and vehicular characteristics. The report examines the diversity of attitudes they have about accessorization, specialty-equipment products and working on their vehicles.

“The 2012 SEMA Consumer Segmentation Report establishes a baseline of consumer groups, which we will use to structure ongoing research efforts,” the report says. “[Industry professionals] can use this robust segmentation scheme to drive improvements across several facets of your business.”

Reviewing the report and understanding market segmentation allows aftermarket businesses to augment sales efforts in a variety of ways:

		The total audience surveyed by the report can be roughly divided into three enthusiast and three general-interest categories. All had purchased automotive specialty-equipment parts in the past year.

• Identify target consumers: By looking at product purchases, vehicle usage and interests, companies can identify the segment(s) that are likely to be their core customers. Understanding the needs of these key consumers can help each business better serve its customers.
• Expand customer base: Expansion opportunities may exist with customers a business hadn’t previously targeted.
• Secondary segments: By recognizing the different needs and interests of consumers, an aftermarket company may be able to tailor services to a wider variety of customers.
• Vehicle platform and usage: Each business’ target segments may show that owners of vehicles it doesn’t currently support have similar needs or interests in the company’s product types.
• Messaging: Consumer needs and benefits, along with interests and hobbies, can point to refined and targeted messaging that will resonate with a company’s customers.
• Marketing: Purchase and research sites, hobbies/interests and vehicle usage can be used to refine marketing strategies and advertising channels.
• Product development: Vehicle usage, interests/hobbies and parts-purchase patterns can spark ideas for new products, line extensions, feature enhancements and cross-selling opportunities for target consumers.

The genesis of the study was based on requests for this type of research from SEMA members, but its gestation began with a series of interviews with member companies that service different sectors of the industry. These conversations provided the fodder from which a consumer questionnaire was developed. The questions were based on the information that the member companies thought most useful to understanding automotive consumers in general and specialty-equipment consumers specifically.

The researchers next held a series of focus-group meetings with consumers who had been identified as buyers of aftermarket parts. The information resulting from these gatherings led to further refinement of the survey questions, uncovering what the researchers defined as “issues and thinking directly from target consumers.”

The final raw research was acquired through a nationwide online survey of 3,000 specialty-equipment consumers in the spring of 2012. The survey subjects were prequalified as U.S. residents over the age of 18 who had spent more than $100 per year on automotive accessories or modifications, not including routine maintenance. They owned all types of vehicles and included both enthusiasts and casual accessory purchasers, and they represented every demographic slice of society.

“For this research we intentionally looked at a broader group of consumers than in our typical research studies,” the report states. “We did this for a few reasons:

“To make sure we’re not missing someone. There may be some people who are consumers in the market but who we might not typically research, since they don’t look like our traditional buyers.

“To make it applicable to the widest range of parts and accessory applications (Remembering that our industry isn’t solely made up of ‘go fast’ upgrades.)

“To identify opportunities for expansion or extension. We want to identify ways that our membership can grow their market by gaining understanding of the broadest consumer needs.”

Based on the questions and insights from the industry and the focus groups, each of the survey participants was asked to rate a series of statements to gauge their feelings about their vehicles as well as their opinions about accessorizing or modifying their cars and trucks. The resulting analysis coalesced around six groups of consumers that displayed distinct feelings about automobiles and customization. The respondents were also asked about their purchase habits and interests in order to develop an understanding of their underlying motivations. Using this information, the researchers gave the six groups names that reflect their levels of interest in automobiles and specialty parts.

Three of the segments were comprised of what are usually called “Enthusiasts,” and those segments were projected to make up a total of about 9% of all vehicle owners.

“Enthusiasts can be more effectively marketed to by recognizing which segment they belong to and developing messaging and communications strategies geared toward their specific motivations,” the researchers said.

From an enthusiast perspective, the top tier of the group is comprised of “Builders.” These are the core automotive hobbyists who are probably most recognized as “gearheads” or “car guys” by the general public. They’re the people who love the time they spend actually working on their vehicles and derive great satisfaction from doing it.

Next in the enthusiast hierarchy are “Drivers.” These are the folks who work on their vehicles to make them more enjoyable. The Driver group accessorizes and modifies vehicles more from the enjoyment of using their cars and trucks rather than from the pleasure of the effort itself.

The third enthusiast segment is the “In-Crowd.” Vehicles are part of this group’s social life. They belong to car clubs and attend car shows, and their accessorization tends to follow trends. They enjoy the recognition they get from having unique or high-profile vehicles.

“Enthusiasts can still be reached through many of the traditional methods, including car shows, races, automotive magazines, television shows and other automotive events,” the report says. “Increasingly, the Internet is becoming their primary research tool (and frequent shopping method), and they are influenced by social-media activities, such as blogs and automotive forums on their favorite automotive topics. However, these are still very much hands-on type people, and they appreciate dealing with knowledgeable people and having access to reputable information sources, such as local specialty shops, manufacturers websites and customer service representatives.”

The other three segments that fit the demographics of the survey were made up of what might be called “General Market” consumers and comprise 12% of all vehicle owners in the United States. These segments are more likely to purchase accessories and appearance products than performance goods, the report says.

The first of the General Market survey participants were labeled as the “Handyman” group. They tend to be do-it-yourself mechanics who perform their own work in order to save money and prolong the life of their vehicles. They may be open to upgrades as part of their vehicle repairs and maintenance. “The Handyman segment represents an opportunity for manufacturers and sellers of certain types of parts based on a positioning of quality, durability and increased fuel mileage,” the report says.

The next group uses vehicles mainly for transportation from place to place and is mostly concerned about function. Labeled as “Commuters,” they use their cars and trucks as everyday drivers and don’t view their vehicles as a reflection of their interests or lifestyles.

And the final group of participants comprises the “Do It for Me (DIFM)” segment. This group relies on professional mechanics for their vehicle maintenance and upgrades. They’re the least automobile-savvy group, but they do still have some interest in accessories and appearance products.

“Quality parts that can be positioned against OEM replacement parts at a competitive price can be a strong motivator [for the Commuter and DIFM segments], especially if highly recommended by independent installation shops,” the report says. “More expensive parts can still be marketed effectively to this audience if value can be demonstrated through longer life, better mileage, etc. Distribution through the national chain parts stores is likely to reach the widest spectrum of potential non-enthusiast customers.”

The report examines core metrics across the segments—what each group spends, what each one buys, where they get their information, where they like to shop, what types of vehicles they own and advice about how to target each group. The metrics also look at the demographic composition of each group—gender, age, income—as well as the types of media programming, reading and activities they enjoy. It further breaks out what each group looks for in the parts they buy, ranking items such as quality, looks, functionality and reputation. For instance, Builders rank performance at the top of their lists, while Commuters are looking primarily for the lowest price and the best reviews.

The report then delves into greater detail about each group, including information about segment size, annual and total spending levels, attitudes about their vehicles, the modifications they’ve made and specific guidance on how to address or message each segment. The modification information includes not only the types of parts and products purchased, but also the reasons behind the purchases and the emphasis put on various types of products. It reviews the specific types of research and shopping tools each group uses, including where and why.

Each individual profile ultimately provides targeted guidance about how to market to the segment, with information about motivations, emotional responses and product features. It also indicates specific media to target, such as enthusiast magazines and websites or more general media.

The final sections of the 136-page report include a series of appendices that reflect the raw data. They include parts tables that show the percentages of modifications performed by each consumer segment, such as engine work, chassis, suspension and wheel modifications and intake, fuel and exhaust upgrades, as well as the vehicle types owned by the various segments.

The 2012 SEMA Consumer Segmentation Report is full of information crucial to aftermarket executives, engineers and developers who wish to understand the automotive specialty-equipment market. But it will also be the basis for further SEMA research, including additional consumer studies, education sessions at upcoming SEMA Shows and webinars discussing how companies may use the data. In fact, all future SEMA consumer research will include segment profiling.

As with nearly all SEMA research information, The 2012 SEMA Consumer Segmentation Report is free to SEMA-member companies. It is available as a PDF download.

SEMA News—March 2013

RESEARCH
By Steve Campbell

2012 SEMA Consumer Segmentation Report

Know Your Customers to Build Your Business

		The 136-page 2012 SEMA Consumer Segmentation Report—available free of charge to SEMA members—provides insights and sales opportunities among six prominent categories of automotive specialty-equipment purchasers. Ranging from a core group of enthusiasts to the least-savvy consumers of aftermarket parts, these segments and the opportunities they present are fully explored in the report.

From manufacturers and distributors to jobbers and retailers, the automotive specialty-equipment industry is built around meeting consumers’ demands. Understanding which goods and services those consumers are actually interested in requires study of the marketplace, interaction with customers and attention to detail—and that is a pretty fair synopsis of what was done to create the latest offering from the SEMA research team and the Modellers Inc.,a market research and analytics company.

SEMA-member companies rely on the association for targeted, meaningful research that can help them understand and meet their customers’ needs more effectively. They know that the marketplace is comprised of a huge variety of people whose requirements are as diverse as the vehicles they drive and the lifestyles they embrace. But within that mass of differing motivations are some prominent segments that are driven by common attitudes and shared interests. The purpose of the 2012 SEMA Consumer Segmentation Report is to point out how those market divisions can be targeted by SEMA-member companies.

In talking about “segments,” the report is not referring to just the various types of vehicle hobbyists serviced by the industry, such as hot rodders, off-roaders or sport-compact tuners. While each of those categories is crucial to the business community that serves it, this new report looks at people and their economic, demographic and vehicular characteristics. The report examines the diversity of attitudes they have about accessorization, specialty-equipment products and working on their vehicles.

“The 2012 SEMA Consumer Segmentation Report establishes a baseline of consumer groups, which we will use to structure ongoing research efforts,” the report says. “[Industry professionals] can use this robust segmentation scheme to drive improvements across several facets of your business.”

Reviewing the report and understanding market segmentation allows aftermarket businesses to augment sales efforts in a variety of ways:

		The total audience surveyed by the report can be roughly divided into three enthusiast and three general-interest categories. All had purchased automotive specialty-equipment parts in the past year.

• Identify target consumers: By looking at product purchases, vehicle usage and interests, companies can identify the segment(s) that are likely to be their core customers. Understanding the needs of these key consumers can help each business better serve its customers.
• Expand customer base: Expansion opportunities may exist with customers a business hadn’t previously targeted.
• Secondary segments: By recognizing the different needs and interests of consumers, an aftermarket company may be able to tailor services to a wider variety of customers.
• Vehicle platform and usage: Each business’ target segments may show that owners of vehicles it doesn’t currently support have similar needs or interests in the company’s product types.
• Messaging: Consumer needs and benefits, along with interests and hobbies, can point to refined and targeted messaging that will resonate with a company’s customers.
• Marketing: Purchase and research sites, hobbies/interests and vehicle usage can be used to refine marketing strategies and advertising channels.
• Product development: Vehicle usage, interests/hobbies and parts-purchase patterns can spark ideas for new products, line extensions, feature enhancements and cross-selling opportunities for target consumers.

The genesis of the study was based on requests for this type of research from SEMA members, but its gestation began with a series of interviews with member companies that service different sectors of the industry. These conversations provided the fodder from which a consumer questionnaire was developed. The questions were based on the information that the member companies thought most useful to understanding automotive consumers in general and specialty-equipment consumers specifically.

The researchers next held a series of focus-group meetings with consumers who had been identified as buyers of aftermarket parts. The information resulting from these gatherings led to further refinement of the survey questions, uncovering what the researchers defined as “issues and thinking directly from target consumers.”

The final raw research was acquired through a nationwide online survey of 3,000 specialty-equipment consumers in the spring of 2012. The survey subjects were prequalified as U.S. residents over the age of 18 who had spent more than $100 per year on automotive accessories or modifications, not including routine maintenance. They owned all types of vehicles and included both enthusiasts and casual accessory purchasers, and they represented every demographic slice of society.

“For this research we intentionally looked at a broader group of consumers than in our typical research studies,” the report states. “We did this for a few reasons:

“To make sure we’re not missing someone. There may be some people who are consumers in the market but who we might not typically research, since they don’t look like our traditional buyers.

“To make it applicable to the widest range of parts and accessory applications (Remembering that our industry isn’t solely made up of ‘go fast’ upgrades.)

“To identify opportunities for expansion or extension. We want to identify ways that our membership can grow their market by gaining understanding of the broadest consumer needs.”

Based on the questions and insights from the industry and the focus groups, each of the survey participants was asked to rate a series of statements to gauge their feelings about their vehicles as well as their opinions about accessorizing or modifying their cars and trucks. The resulting analysis coalesced around six groups of consumers that displayed distinct feelings about automobiles and customization. The respondents were also asked about their purchase habits and interests in order to develop an understanding of their underlying motivations. Using this information, the researchers gave the six groups names that reflect their levels of interest in automobiles and specialty parts.

Three of the segments were comprised of what are usually called “Enthusiasts,” and those segments were projected to make up a total of about 9% of all vehicle owners.

“Enthusiasts can be more effectively marketed to by recognizing which segment they belong to and developing messaging and communications strategies geared toward their specific motivations,” the researchers said.

From an enthusiast perspective, the top tier of the group is comprised of “Builders.” These are the core automotive hobbyists who are probably most recognized as “gearheads” or “car guys” by the general public. They’re the people who love the time they spend actually working on their vehicles and derive great satisfaction from doing it.

Next in the enthusiast hierarchy are “Drivers.” These are the folks who work on their vehicles to make them more enjoyable. The Driver group accessorizes and modifies vehicles more from the enjoyment of using their cars and trucks rather than from the pleasure of the effort itself.

The third enthusiast segment is the “In-Crowd.” Vehicles are part of this group’s social life. They belong to car clubs and attend car shows, and their accessorization tends to follow trends. They enjoy the recognition they get from having unique or high-profile vehicles.

“Enthusiasts can still be reached through many of the traditional methods, including car shows, races, automotive magazines, television shows and other automotive events,” the report says. “Increasingly, the Internet is becoming their primary research tool (and frequent shopping method), and they are influenced by social-media activities, such as blogs and automotive forums on their favorite automotive topics. However, these are still very much hands-on type people, and they appreciate dealing with knowledgeable people and having access to reputable information sources, such as local specialty shops, manufacturers websites and customer service representatives.”

The other three segments that fit the demographics of the survey were made up of what might be called “General Market” consumers and comprise 12% of all vehicle owners in the United States. These segments are more likely to purchase accessories and appearance products than performance goods, the report says.

The first of the General Market survey participants were labeled as the “Handyman” group. They tend to be do-it-yourself mechanics who perform their own work in order to save money and prolong the life of their vehicles. They may be open to upgrades as part of their vehicle repairs and maintenance. “The Handyman segment represents an opportunity for manufacturers and sellers of certain types of parts based on a positioning of quality, durability and increased fuel mileage,” the report says.

The next group uses vehicles mainly for transportation from place to place and is mostly concerned about function. Labeled as “Commuters,” they use their cars and trucks as everyday drivers and don’t view their vehicles as a reflection of their interests or lifestyles.

And the final group of participants comprises the “Do It for Me (DIFM)” segment. This group relies on professional mechanics for their vehicle maintenance and upgrades. They’re the least automobile-savvy group, but they do still have some interest in accessories and appearance products.

“Quality parts that can be positioned against OEM replacement parts at a competitive price can be a strong motivator [for the Commuter and DIFM segments], especially if highly recommended by independent installation shops,” the report says. “More expensive parts can still be marketed effectively to this audience if value can be demonstrated through longer life, better mileage, etc. Distribution through the national chain parts stores is likely to reach the widest spectrum of potential non-enthusiast customers.”

The report examines core metrics across the segments—what each group spends, what each one buys, where they get their information, where they like to shop, what types of vehicles they own and advice about how to target each group. The metrics also look at the demographic composition of each group—gender, age, income—as well as the types of media programming, reading and activities they enjoy. It further breaks out what each group looks for in the parts they buy, ranking items such as quality, looks, functionality and reputation. For instance, Builders rank performance at the top of their lists, while Commuters are looking primarily for the lowest price and the best reviews.

The report then delves into greater detail about each group, including information about segment size, annual and total spending levels, attitudes about their vehicles, the modifications they’ve made and specific guidance on how to address or message each segment. The modification information includes not only the types of parts and products purchased, but also the reasons behind the purchases and the emphasis put on various types of products. It reviews the specific types of research and shopping tools each group uses, including where and why.

Each individual profile ultimately provides targeted guidance about how to market to the segment, with information about motivations, emotional responses and product features. It also indicates specific media to target, such as enthusiast magazines and websites or more general media.

The final sections of the 136-page report include a series of appendices that reflect the raw data. They include parts tables that show the percentages of modifications performed by each consumer segment, such as engine work, chassis, suspension and wheel modifications and intake, fuel and exhaust upgrades, as well as the vehicle types owned by the various segments.

The 2012 SEMA Consumer Segmentation Report is full of information crucial to aftermarket executives, engineers and developers who wish to understand the automotive specialty-equipment market. But it will also be the basis for further SEMA research, including additional consumer studies, education sessions at upcoming SEMA Shows and webinars discussing how companies may use the data. In fact, all future SEMA consumer research will include segment profiling.

As with nearly all SEMA research information, The 2012 SEMA Consumer Segmentation Report is free to SEMA-member companies. It is available as a PDF download.

By SEMA Staff

	John Waraniak, SEMA vice president of vehicle technology, will moderate a panel of experts at Telematics Detroit. The panel will discuss accelerating the deployment of connected vehicle technology aftermarket products and services in the 250 million vehicles on the roads in the United States.

John Waraniak, SEMA vice president of vehicle technology, will moderate a panel of experts at Telematics Detroit, June 5, in Novi, Michigan. Ted Cardenas, vice president of marketing at Pioneer Car Electronics; David Pio, engineering partner at Facebook; and Zoran Lazovski, solution delivery director at Covisint will analyze the aftermarket's critical role in enhancing the driver and passenger experience. They will also discuss accelerating the deployment of connected vehicle technology aftermarket products and services in the 250 million vehicles on the roads in the United States.

In this session, attendees will learn how to:

• Work with new non-automotive players offering aftermarket solutions to ensure innovative new systems, functions and apps are optimized for safe in-vehicle use.
• Increase telematics purchases among Gen-Y and Gen-O drivers by harnessing the aftermarket to offer the personalized social driving experience demanded by this key demographic.
• Utilize aftermarket solutions to create a telematics business case for the entire vehicle by empowering the passenger with connected entertainment content and applications.

SEMA members planning to attend can receive a $100 discount by registering at the Telematics Detroit website and entering code: 2231SEMA.

Connected-vehicles are quickly becoming part of the contemporary driving experience and social graph. Next-generation technologies and innovations are coming from both automotive and consumer electronics companies, as well as the aftermarket and new, nonendemic players. The challenge remains on how effectively new systems, features, functions and apps get installed, upgraded and integrated into vehicles and consumer lifestyles. Design and social thinking, combined with the Aftermarket X-Factor and collaborative business models, are rapidly democratizing traditional product development as well as marketing and branding strategies. The aftermarket X-factor can play a critical role in retrofitting many of the 250 million vehicles on U.S. roads and optimizing the connected vehicle experience.

Young car buyers want to extend their digital lifestyles into their vehicles and prefer vehicles packed with safety and connectivity technology. Nearly three-quarters of Gen-Y drivers prefer touchscreens, and nearly as many rate smartphone applications as highly desirable. Most Millennials also want to be able to customize and personalize their vehicle's interior with telematics accessories and upgrades after purchase. Technology is the game-changer for leading designers—it is the trump card for making the active interface the reason consumers will buy a car in the future. Within Gen-Y, there is also a new cohort called Generation-O. This is the generation of 10- to 29-year-olds known as optimizers. Gen-O was born online and raised on technology. They will be the generation that shows the telematics industry the way forward in how new technologies, systems, apps, products and vehicles will be used to optimize the customer experience and make connectivity cool.

This panel will provide valuable insights and new ideas for automotive OEM and supplier executives, mobile application developers and aftermarket entrepreneurs focusing on enhancing the driver experience and accelerating the deployment of connected vehicle technologies.

Compiled by SEMA Staff

	Clay Buzzard

The University of the Aftermarket Foundation board of trustees is mourning its former chairman, Clay Buzzard, who passed away February 7, at the age of 87, and has pledged that donations made in his honor will be used to advance industry education.

"Clay Buzzard was a true aftermarket visionary who left a legacy of excellence that will always be remembered,” said Rusty Bishop, chairman of the University of the Aftermarket Foundation. “One of his lasting accomplishments will be his work as chairman of the University of the Aftermarket Foundation. Clay was instrumental in getting the industry to emphasize the importance of education and training, and the foundation is a tribute to his hard work and dedication.

“We have received numerous inquiries from those who want to make a donation to the University of the Aftermarket Foundation in Clay’s name. This is a testament to the effect Clay had on people’s lives as well as his commitment to the industry. We are honored to accept these donations in his memory and will ensure that they are used toward one of his favorite causes—aftermarket education.”

Buzzard was the former chairman and CEO of Middle Atlantic Warehouse Distributor Inc. (MAWDI) from 1963 until 2004, when Uni-Select purchased the company. After the sale, he served on the Uni-Select Inc. board of directors until May 2012. He remained active in the aftermarket during his time on the Uni-Select board. Buzzard received many honors during his distinguished career, including Leader of the Year by the Automotive Warehouse Distributors Association (AWDA) in 1996, Hall of Fame honors by the New York State Automotive Aftermarket Association in 2000 and the Automotive Aftermarket Education Award by Northwood University in 2003.

Industry colleague Mort Schwartz remembers Buzzard: “When Clay took over as chairman of the foundation, he elevated the program to new heights, bringing energy, enthusiasm and direction to the group. He focused on the main objective of providing more funds for education and scholarships, and with his background of building a highly successful family WD business, he used his contacts and know-how to raise the foundation to the level it is today. The aftermarket has lost a true leader and a wonderful person.”

Fellow University of the Aftermarket Foundation board member Jack Creamer recalls: “When Martin Fromm was looking for real leadership to head up the foundation, he turned to Clay. Everyone he asked had suggested Clay because of his reputation for tough, yet fair leadership in business and his warmth, yet coolness under pressure. Clay rallied those on the foundation board, and they responded to his ideas and plans. The result was the strong organization that endures today. Clay was ahead of his time in business and he set the tone for the foundation.”

To make a donation to the University of the Aftermarket Foundation in memory of Clay Buzzard, call 816-584-0511.

By SEMA Washington, D.C., Staff

West Virginia Delegate Gary Howell has introduced a concurrent resolution urging the Environmental Protection Agency (EPA) to revoke its decision to allow the sale of gasoline with 15% ethanol (E15) until there is clear and convincing scientific evidence that E15 does not pose a risk to any gasoline-powered vehicle or equipment. Among other things, the resolution recognizes that ethanol increases water formation, which can then create formic acid and corrode metals, plastics and rubber, especially over a period of time when the vehicle is not used. Current high-performance specialty parts, along with the pre-’01 cars and parts, may be most susceptible to corrosion. 

For more information, visit the SEMA Action Network (SAN) website. For details, contact Steve McDonald at stevem@sema.org.