Evaluating Consumers' Propensity for American-Made Products
•Descargar como PPTX, PDF•
0 recomendaciones•991 vistas
Last fall, Ford announced it will soon move all small car production to Mexico. Several other U.S. auto manufacturers currently produce vehicles outside of the country, but Ford’s announcement sparked a significant amount of backlash, which was fueled by then presidential-nominee Donald Trump’s amplification. Through this analysis, we will understand how Ford’s decision to move some of its production to Mexico has impacted sentiment & purchase intent toward the automaker. We will also examine how other U.S. auto manufacturers have been impacted by their decision to move production outside of the country. This knowledge will lead us to the final portion of the analysis where we will explore if Americans are becoming more conscious of products made in the U.S. and whether President Trump has had any role in that.
Recomendados
Recomendados
Más contenido relacionado
La actualidad más candente
La actualidad más candente (20)
Similar a Evaluating Consumers' Propensity for American-Made Products
Similar a Evaluating Consumers' Propensity for American-Made Products (20)
Más de Brandwatch
Más de Brandwatch (20)
Último
Último (20)
Evaluating Consumers' Propensity for American-Made Products
- 1. EVALUATING CONSUMERS’ PROPENSITY FOR AMERICAN-MADE PRODUCTS Jacob Chavis Analyst
- 2. 2
- 3. 3 WHATYOU’LLLEARN • Where a product is made is an important factor to consumers when evaluating a purchase and possibly increasingly so • Higher consideration products, with longer purchase cycles, may be less impacted by negative publicity • The perception of being “American-Made” outweighs a product’s actual origin
- 4. 4 “A business that makes nothing but money is a poor business.”
- 5. AS OFF-SHORING INCREASED, NUMBER OF FACTORYWORKERS DECREASED 5 0 5,000 10,000 15,000 20,000 1939 1941 1943 1945 1947 1949 1951 1953 1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Number of Manufacturing Employees in the U.S. Source: Bureau of Labor Statistics 28%Drop in U.S. manufacturing employees from 2000 to 2016
- 6. FORD CONSIDERED ONE OF THE MOST “PATRIOTIC” BRANDS 6 Sources: Brand Keys – Most Patriotic Brands in America 2016; AOL Omnibus, April 2017, n=1009 US Internet Users 1.Jeep / Disney 2. Levi Strauss 3. Ralph Lauren 4. Ford 5. Coca-Cola / Jack Daniels 42%Consider Ford to be an above average brand
- 7. MADE INAMERICASTAMPDOES AFFECT PURCHASE DECISIONS 7 66% 32% Are aware of purchasing products made in the U.S. Have decided not to make a purchase because a product was made outside of the U.S. Source: AOL Omnibus, April 2017, n=1009 US Internet Users
- 8. CLICK HERE TO EDIT HEADLINE 8
- 9. 9
- 10. TRUMPQUICKLYCRITICIZED FORD’S DECISION 10 “To think that Ford is moving its small car division is a disgrace. It’s disgraceful. It’s disgraceful that our politicians allow them to get away with it. It really is.”
- 11. PRESIDENT TRUMPMAJOR FOCUS OF FORD SOCIALCONVERSATION 11 Pickup Trucks Henry Ford test drive Road TrumpCheck driving cars Ford Recalls Ford Taurus Ford Edge Ohio Automatic transmission TV Ford Transit Ford Explorer 4 cylinder engine Dates: 4/1/2016 – 4/16/2017 Most Prevalent Topics Source: Brandwatch
- 12. 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 4/1/2016 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/1/2016 11/1/2016 12/1/2016 1/1/2017 2/1/2017 3/1/2017 4/1/2017 Mentions Mentions Over Time by Day ANNOUNCEMENT IGNITED FORD’S SOCIALCONVERSATION 12 Source: Brandwatch
- 13. 0 500 1,000 1,500 2,000 2,500 9/1/2016 9/2/2016 9/3/2016 9/4/2016 9/5/2016 9/6/2016 9/7/2016 9/8/2016 9/9/2016 9/10/2016 9/11/2016 9/12/2016 9/13/2016 9/14/2016 9/15/2016 9/16/2016 9/17/2016 9/18/2016 9/19/2016 9/20/2016 9/21/2016 9/22/2016 9/23/2016 9/24/2016 9/25/2016 9/26/2016 9/27/2016 9/28/2016 9/29/2016 9/30/2016 Mentions Sentiment Over Time by Day DECISION CREATED CONSIDERABLE AMOUNT OF NEGATIVE SENTIMENT 13 Source: Brandwatch
- 14. 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 4/1/2016 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/1/2016 11/1/2016 12/1/2016 1/1/2017 2/1/2017 3/1/2017 4/1/2017 Mentions Mentions Over Time by Day CONFIRMATION OF KENTUCKYPLANT STAYING OPEN SPARKED CHATTER 14 Source: Brandwatch
- 15. 0 500 1,000 1,500 2,000 2,500 3,000 3,500 11/1/2016 11/2/2016 11/3/2016 11/4/2016 11/5/2016 11/6/2016 11/7/2016 11/8/2016 11/9/2016 11/10/2016 11/11/2016 11/12/2016 11/13/2016 11/14/2016 11/15/2016 11/16/2016 11/17/2016 11/18/2016 11/19/2016 11/20/2016 11/21/2016 11/22/2016 11/23/2016 11/24/2016 11/25/2016 11/26/2016 11/27/2016 11/28/2016 11/29/2016 11/30/2016 Mentions Sentiment Over Time by Day TRUMP, NOT FORD, RECEIVED NEGATIVE CRITICISM FROMANNOUNCEMENT 15 Source: Brandwatch
- 16. 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 4/1/2016 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/1/2016 11/1/2016 12/1/2016 1/1/2017 2/1/2017 3/1/2017 4/1/2017 Mentions Mentions Over Time by Day CANCELED PLANS FOR MEXICAN PLANT GENERATED SIGNIFICANT NOISE 16 Source: Brandwatch
- 17. 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 1/1/2017 1/2/2017 1/3/2017 1/4/2017 1/5/2017 1/6/2017 1/7/2017 1/8/2017 1/9/2017 1/10/2017 1/11/2017 1/12/2017 1/13/2017 1/14/2017 1/15/2017 1/16/2017 1/17/2017 1/18/2017 1/19/2017 1/20/2017 1/21/2017 1/22/2017 1/23/2017 1/24/2017 1/25/2017 1/26/2017 1/27/2017 1/28/2017 1/29/2017 1/30/2017 1/31/2017 Mentions Sentiment Over Time by Day SOCIALAUTHORS WERE ELATED BY SCRAPED MEXICO PLANT NEWS 17 Source: Brandwatch
- 18. 18 SMALLCAR PRODUCTION STILL MOVING TO MEXICO
- 19. PRODUCTION CHATTER WAS SUBSTANTIALPART OF DISCUSSION 19 7% 93% Mentions of Production or Trump Compared to Rest of Conversation Production + Trump Uncategorized Dates: 9/1/2016 – 2/28/2017 119K Mentions 24M Impressions 86K Authors Source: Brandwatch
- 20. MEN & POLITICALLY-MINDED MOST ACTIVE WITHIN PRODUCTION CHATTER 20 43% 57%MaleFemale 8% 10% 15% 18% Books Sports Family & Parenting Politics Top Interests Demo Summary of Ford Production Authors Source: Brandwatch
- 21. MICHIGAN MOST LIKELY TO DISCUSS FORD PRODUCTION 21 Index Scale Weighted State Contribution by Index Source: Brandwatch
- 22. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Sentiment Over Time by Month HIGH LEVELS OF NEGATIVE SENTIMENT DID NOT LAST LONG 22 Source: Brandwatch
- 23. AS NEGATIVE SENTIMENT INCREASED, FORD SALES DECREASED 23 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 50,000 100,000 150,000 200,000 250,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ford Motor Company 2016 Monthly Sales vs. Negative Sentiment Unit Sales Negative Sentiment Sources: Ford; Brandwatch
- 24. NOT WILLING TO PAYPREMIUM DESPITE PREFERENCE FORAMERICAN-MADE 24 Source: AOL Omnibus, April 2017, n=1009 US Internet Users General Population Trump Voters Buying a vehicle from a U.S. manufacturer is very important 59% 71% Willing to pay premium on U.S. made vehicle 10% 15%
- 25. WHICH CARSARE ENTIRELYMADE IN THE U.S.? 25 Of the 450+ vehicle models sold in the U.S. for the 2016 model year… None Source: American Automobile Labeling Act
- 26. WHICH CARSARE MOST “AMERICAN-MADE”? 26 Source: Cars.com Annual Survey Toyota Camry Honda Accord Toyota Sienna Honda Odyssey Honda Pilot 1 2 3 4 5
- 27. WHERE VEHICLE IS MADE MAY BE IMPORTANT, BUT NOT TOP CONCERN 27 Source: AOL Omnibus, April 2017, n=1009 US Internet Users 5% 21% 26% 30% 32% 35% 39% Made domestically Big enough for family Budget oriented Good reputation Safety rating Handles well Fuel efficiency Consumers’ Top 3 Factors When Purchasing a New Vehicle
- 28. MORE LIKELY TO BUYFORD DESPITE SEEING BRAND LESS FAVORABLY 28 Source: E-Poll; 2017 comScore//GFK MRI Media MMX + Fusion (02-17/F16) 4.18% 6.95% 0.42% 3.56% 7.96% Likelihood to Purchase If Making Decision Today % of Consumers 37% 37% 16% 24% 26% 36% 36% 20% 25% 28% Consumers’ Perceptions Towards Auto Manufacturers High-Quality Reliable
- 29. FORD LEADINGAUTO MANUFACTURER IN THE U.S. 29 Source: Statista 2.49 2.11 2.10 1.48 1.43 0.93 0.77 Leading Car Brands in the U.S., 2016 (Unit Sales in Millions)
- 30. CLICK HERE TO EDIT HEADLINE 30
- 31. CONSUMERS PAYING MOREATTENTION TO WHERE PRODUCTSARE MADE 31 30%Pay more attention to whether a product is made in the U.S. compared to a year ago 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Mentions American-Made Social Chatter Over Time Individual Twitter Accounts 2014 2015 2016 2017 Sources: Brandwatch; AOL Omnibus, April 2017, n=1009 US Internet Users
- 32. WITHINAMERICAN-MADE DISCUSSION, FASHION TOPICS DISCUSSED THE MOST 32 Fashion Automobiles Tech/Electronics CosmeticsStructural Materials 31% 21% 17% 16% 9% Category Breakout of Social Chatter Dates: 4/1/2016 – 4/27/2017Source: Brandwatch
- 33. MEN & POLITICALLY-MINDED MOST ACTIVE WITHIN DISCUSSION 33 49% 51%MaleFemale 8% 9% 13% 14% Books Sports Family & Parenting Politics Top Interests Demo Summary of Ford Production Authors Source: Brandwatch
- 34. 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 4/1/2016 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/1/2016 11/1/2016 12/1/2016 1/1/2017 2/1/2017 3/1/2017 4/1/2017 Mentions American-Made Mentions Over Time by Day TRUMP’S EXECUTIVE ORDER SPARKED INFLUX OF CHATTER 34Dates: 4/1/2016 – 4/27/2017Source: Brandwatch
- 35. INITIAL REACTION TO EXECUTIVE ORDER VERYNEGATIVE 35 20% 80% Sentiment Towards Executive Order White House Ivanka Trump Mexico American-made tools Made in China Made in the United StatesPresident Trump Trump products aren’t made made in USA New executive order Obama 1B Visas Chinese Clothing line 90 days power to make Made in the USA buy American goods visas are awarded products are stamped America first commerce secretary American-made steel Dates: 4/17/2016 – 4/27/2017Source: Brandwatch
- 36. KEYTAKEAWAYS 36 • Where products are made does impact consumers’ likelihood to purchase, but it’s not the most influential factor • Data suggests that the perception of being “American-Made” outweighs the products actual origin • U.S. automakers like Ford should continue to take advantage of the reputation they’ve built, while looking to improve their image of quality & reliability • Foreign owned automakers could benefit by placing more emphasis on being more “American-Made” than U.S. competitors • Higher consideration products, with longer purchase cycles, may be less impacted by negative publicity
Notas del editor
- Introduction, what our team does I work as an Analyst on the Consumer Analytics & Research team at AOL. Behind me are some of the brands my team is responsible for serving. As you can imagine, we use Brandwatch differently than a lot of you. We’re not monitoring the conversation around our own brands, but rather our clients’. We use Brandwatch to get a pulse of the conversation, whether it be around a specific brand or topic, to arm our sales team for upcoming pitches. And also to assist with content ideation for our team at HuffPost. Which brings me to why I am here today. And that’s to give an example of a circumstance where Brandwatch really helped us develop a strategic approach that probably otherwise would have been missed.
- Number of manufacturing jobs greatly increased following the auto boom & other significant developments. Sharp decline at the turn of the century – leaving many Americans feeling scorned by even their favorite companies. But even some of those who were among the biggest contributors to off-shoring, maintained a positive, “American” image…
- …Ford was one of those companies. Despite having foreign production for many years now, they still sit at the top of the list when it comes to the most “patriotic” brands in the U.S. Ford is above Harley Davidson, Coors, Sam Adams, Gatorade, John Deere, Dallas Cowboys. Why is this important?
- Because consumers are very conscious of where a product is made. We surveyed an online panel of over 1,000 internet users and 66% of them report being aware of purchasing a product that’s made in the U.S. What’s really fascinating, is that 32% of those consumers have decided not to make a purchase because a product was made outside of the U.S. Brands, like Ford, are undoubtedly aware of these behaviors and it’s evident in how they position themselves in their marketing initiatives. Let’s take a look at a clip from Ford’s “Built in America” campaign that ran a couple years ago.
- This came as a huge surprise to many when Ford announced it will be moving all small-car production to Mexico. Citing decreasing profit margins on these vehicles. No one though was perhaps more vocal about their disdain for this business move then by then Presidential Nominee Donald Trump…
- Trump’s criticism was so loud, that when we look at Ford’s social chatter for the past year, he is the center of the conversation. The most prevalent topic within Ford’s social discussion. Let’s take a look at how this all played out…
- Ford cancelled plans for new plant, but will move small car production to Mexico, just into an existing Ford plant in Hermosillo.
- For comparison, Honda’s Airbag scandal equated to just 3% of the total Honda social conversation
- We asked that same panel of U.S. internet users about the importance of buying from a U.S. automaker. As you see, nearly 60% stated it was important by only 10% said they would pay more for a domestic vehicle. Looking at Trump voters, again a very high percentage say it is important to them, but only 15% reported they would pay a premium for a U.S. made vehicle.
- Before we move forward, I think it’s important to get a better sense of the current automobile industry landscape. Can anyone answer this?
- 6. Chevy Traverse 7. GMC Acadia 8. Buick Enclave Number of cars overall that meet the standards to qualify for the list has been shrinking over the years. After reaching an all-time low of just seven cars on the 2015 American-Made Index, this year’s list is up one car, but still remains much smaller than earlier indexes, when the list included nearly 30 eligible cars
- So what do consumers care most about when purchasing a car?
- This is where I think things get interesting. Consumers perceive Ford as being of lesser quality and less reliable than Toyota & Honda. But when asked if they were to “make a purchase today, who would they choose?” consumers are more likely to choose Ford. And that’s proven out when we look at the leading car sales by brand for 2016…
- So if it’s of lesser quality & generally of the same cost, what is it that Ford has that Honda & Toyota don’t? Ford’s F-Series Pickup – best selling vehicle in 2016
- We thought understanding how consumers responded to Trump’s executive order might help shape our next steps. We’ve interpreted this clearly negative reaction as confirmation that where a product is manufactured is not everything to consumers. As you can see by the most prevalent topic in the topic cloud, they also are turned off by the apparent hypocrisy. Again, the perception of embodying our culture & spirit appears to be more important than where it was actually made. As we’ve seen that does matter to an extent, but probably moreso when we talk about the lower consideration items. Because when it comes down to it, consumers really just want the best products at the cheapest prices.