Luxury dealerships tend to look at other luxury dealerships as their only competition but that is an oversight since the most sold vehicle in the market place – regardless of income – is the Ford F-Series. People are more likely to purchase a Ford F-Series than any other luxury make.
Buyers who have an annual household income of $200K or greater and are living in the mid- Tennessee, Alabama, Mississippi or Florida Gulf Coasts, are almost twice as likely to purchase a Ford F-Series than the highest selling luxury vehicle in the marketplace, the Lexus RX.
Buyers with a household income less than $200,000 are five times more likely to purchase a Ford F-Series than the Lexus RX.
According to a Ford truck buyers survey in 2016, truck buyers purchase for one of three reasons: Towing (17%); Work (39%); and Image (44%). To put that into perspective, in 2016 369 Ford F-Series trucks were purchased because of image.
The image-driven buyer – non-millennial, highly affluent, male and female – will be the driving force of most trucks bought in 2017. The F-Series and truck market sees a female buyer for every two male buyers, shows that while there are some outliers, the idea of image goes beyond the male segment. Studies also show that up to 95% of women influence a vehicle purchase, so there is need to address both male and female in the decision making process.
Ford has managed to muscle their way into the affluent buyer market by offering a high quality, value-retaining truck. They have also been slowly moving into the SUV market which is booming, particularly in the luxury CUV market with the Edge and Escape model upgrades.
If you’re not a Ford dealer, this is what you need to watch out for
Lincoln saw significant growth from 2015 to 2016. As Lincoln continues to rise as a viable luxury brand, there is a great possibility that Lincoln will continue to grow in the luxury market because of their affiliation to the Ford F-Series. Did you really think it was all Matthew McConaughey?
That leaves the obvious question, how does a luxury dealership address this? First, surround your competition. Target affluent Ford F-Series owners – who are most likely to convert to a luxury brand – with your advertising message.
How? First, make sure you blanket them with a digital display campaign (including online video). Your advertising message should focus on the image of a luxury buyer. Then, follow potential buyers where ever they are online with high frequency through creative re-messaging. You can also use precise location-based targeting to message buyers on competitors’ lots! Lastly, adjust your paid search keywords to capture those searching for Ford F-series.
Turn this shift in the market into an opportunity to refine your marketing plan. And as always, Alabama Media Group is here to help.