The automotive industry is changing rapidly, leading some in the field to a conclusion that soon cars may become the most technologically advanced products that consumers will ever buy.
The transition from a primarily mechanical-based to a software-based industry leads some to claim that car manufacturing is focusing less on transportation but rather on technology.
Since those changes will sooner or later affect most of the world’s population, it is fascinating to take a closer look as to what is currently happening in the automotive industry.
The report presents the car industry based on the Customer Value Canvas and will highlight innovation within the core product, added-value services, customer/shopping experience and brand communication, and as they are all important in customer’s overall impression.
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
The Near Future of Automotive Industry
1. UNDERSTAND TODAY. SHAPE TOMORROW.
The Near Future of Automotive Industry
May 2016
GAME
CHANGERS
ON 4 WHEELS
1
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY
2. ABOUT.
At LHBS, we are curious about the brand opportunities that lie at the
crossroads of emerging consumer needs, enabling technology and
market dynamics. What we learn, we like to share. That’s why we’ve
created the Near Futures Series of inspiration and insights reports
designed to highlight what is happening today and how it can shape
tomorrow for brands and business.
This one is about The Near Future of Automotive Industry.
We hope you enjoy this deck and are able to be inspired by it in your
innovation process.
This report is powered by the LHBS Inspiration-Hub that
systematically tracks changes in culture, markets and technology and
how these signs collectively point to a bigger story.
INTRODUCTION
UNDERSTAND TODAY. SHAPE TOMORROW. 2
Discover Define Develop Deliver
UNDERSTAND TODAY. SHAPE TOMORROW.
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY
3. UNDERSTAND TODAY. SHAPE TOMORROW.
INTRO.
The transition from a primarily mechanical-based to a software-
based industry lead some to claim that car manufacturing is
focusing less on transportation but rather on technology.
Since those changes will sooner or later affect most of the world’s
population, it is fascinating to take a closer look as to what is
currently happening in the automotive industry.
The report will present the car industry based on the Customer
Value Canvas and will highlight innovation within the core
product, added-value services, customer/shopping experience
and brand communication, and as they are all important in
customer’s overall impression.
LHBS // INTRODUCTION
The automotive industry is changing rapidly, leading some in the
field to a conclusion that soon cars may become the most
technologically advanced products that consumers will ever buy.
Magdalena Ludwicka
Marketing Strategist at LHBS
lhbs.com | ml@lhbs.com
INTRODUCTION
3
4. LHBS // INTRODUCTION INTRODUCTION
UNDERSTAND TODAY. SHAPE TOMORROW. 4
Products
Experiences
Services
Communication
Customer
Value
What are the additional
services , also non car-
related, that the customers
can enjoy when they buy a
car?
What are the trends and
innovation within both hardware
and software of the car?
Is interacting with a brand and
shopping for a car a unique and
pleasant experience?
Is the content relevant for people to
consume and share?
LHBS Customer Value Canvas
5. CHAPTER TITLE
CHAPTER
TITLE
UNDERSTAND TODAY. SHAPE TOMORROW.
LHBS // INTRODUCTION.
5
POINT
OF VIEW.
However, this report will intentionally summarise the innovation
cases from industry’s major players.
The gestation period that the industry imposes on new
technologies is very long due to testing and certification, yet the
market and consumer expectations change so rapidly that the
business needs to quickly adapt.
It is particularly interesting to observe how established
companies react to those core-shaking changes and re-invent
their business models accordingly.
Hence, the following pages will give examples of innovations by
key industry players that already have an established position on
the automotive market, like Volvo, Audi, Ford or Toyota.
The automotive market has recently became a playground for
startups and smaller innovation hubs. Those companies realised a
huge growth potential for themselves in the car industry and were
lured by a promise of high revenues. They are already reshaping
the industry with their unconventional business models and
product ideas.
INTRODUCTION
6. UNDERSTAND TODAY. SHAPE TOMORROW. 6
3rd
Most innovation active industry across the top 12
technology sectors
Between 2012 and 2013, automotive had the highest
percentage change in patent volume of all areas.
Source: The state of innovation in the Automotive Industry 2015 - Thomson Reuters
Automotive industry
LHBS // INTRODUCTION INTRODUCTION
7. UNDERSTAND TODAY. SHAPE TOMORROW. 7Source: Deloitte 2014 Global Automotive Consumer Study
Generation Y Market Potential
plan to buy a new car
within 5 years
plan to buy a new car
within 3 years
plan to buy a new car
within 1 years
64mln 48,8mln 18,4mln
INTRODUCTIONLHBS // INTRODUCTION
8. CONTENT.
UNDERSTAND TODAY. SHAPE TOMORROW.
ADDED VALUE
SERVICE
TOUCHPOINTS &
COMMUNICATION
CORE
PRODUCT
LHBS // CONTENT. CONTENT
8
SHOPPING
EXPERIENCE
ƞ ƞ ƞƞ
9. CORE PRODUCT
INNOVATION WITHIN A CAR ITSELF
CORE PRODUCT
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LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY
10. UNDERSTAND TODAY. SHAPE TOMORROW. 10Source: The state of innovation in the Automotive Industry 2015 - Thomson Reuters
Top categories of patent applications
ƞ
ƞ
ƞ
ƞ
ƞPROPULSION NAVIGATION HANDLING
SAFETY & SECURITY ENTERTAINMENT
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
11. UNDERSTAND TODAY. SHAPE TOMORROW. 11Source: The state of innovation in the Automotive Industry 2015 - Thomson Reuters
12500
25000
37500
50000
2009 2010 2011 2012 2013
Overall patent filings in
the automotive industry
Growth rate >10%
CORE PRODUCTLHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY
12. UNDERSTAND TODAY. SHAPE TOMORROW. 12
The increased use of car data will unlock new
customer benefits in 4 main areas
Source: McKinsey Car Data; Paving the way to value-creating mobility, 2016
SECURITY
- Real-time emergency calls
- Early and on-scene accident information to
support rescue services
- Real-time road hazard warning
CONVENIENCE
- Reduced breakdown risk and vehicle downtime
- Increased customer convenience by concierge
services
- Improved experience from connected lifestyle
TIME
- Reduced customer delivery time
- Reduced time to find parking
COST
- Reduced insurance cost
- Reduced toll/road tax rate through automated
payment infrastructure
- Reduced customer mobility cost
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
13. UNDERSTAND TODAY. SHAPE TOMORROW. 13
Car manufacturers are redefining their view of the car itself.
It’s about pushing the boundaries a little bit further in every
crucial aspect. Aesthetics, speed, components, impact on the
environment - as consumers are becoming more informed, all
those aspects are getting more crucial for them when making a
purchasing decision.
PRODUCT
HARDWARE
The product cycle in the automotive industry is quite long - on
average a new car model takes three to five years to develop and
launch. Then it usually stays up to 6 years on the market. If a
consumer wants new features, he has to buy a new model.
Car manufacturers are tackling this problem by starting to offer
‘hardware’ for which consumers would update the OS.
Innovations within the hardware will encompass lighter and
faster products, made out of less components. Revolutionary use
of materials will add value to customer’s lives while at the same
time, due to increased scientific research into alternative sources
of energy, cars will become more environmentally friendly.
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
14. UNDERSTAND TODAY. SHAPE TOMORROW. 14Source: Deloitte 2014 Global Automotive Consumer Study
Consumers from Generation Y
see themselves driving an
alternative engine in 5 years59%
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
15. LHBS Put the Title of the Report hereUNDERSTAND TODAY. SHAPE TOMORROW.
New Eco-Fuel Technology
Audi is investing in the development of renewable forms
of energy that would use CO2 as a raw material for fuels.
The car manufacturer is currently looking into four types
of fuels: e-gas, e-gasoline, e-diesel and e-ethanol. The
fuels need only four ingredients to produce and have
many potential benefits.
Explore the Sign
Learning
Invest in green technologies - eco-friendly and
environmentally-conscious consumers will follow.
3D-Printing Revolution of Car Parts
Learning
Observe innovation in related industries and then use it
to your product’s advantage
Innovative Car Materials
Nissan has created the world’s first self-cleaning car
prototype.
Nissan's coating creates a texture of geometric shapes
whose peaks repel water and some oils. Nissan states
that splashing around in mud will still dirty the
underbelly, tires and windshield of the vehicle.
Explore the Sign
Learning
Innovation in the hardware can be a game changer for
the consumers as well
15
GE opened a new manufacturing facility in India that will
solely focus on 3D printing.
Parts that are being printed are already by 25% lighter in
weight as well and up to five times more durable than
when using the traditional methods of manufacturing.
They will be applicable in car manufacturing.
Explore the Sign
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
16. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Redesigned Car
Interior
Explore the Sign
Regus and Rinspeed introduced XchangE, an
autonomous concept car where the two fronts seats
swivel backwards to create a meeting space for four
people.
The car's infotainment system will let workers
connect to their office and create presentations. This
self-driving car is in the making with a prime focus on
turning daily commute into productive times. The
XchangE will be driven by ‘steer by wire’ technology.
This technology relies more on electric actuators and
sensors which will govern the steering. This means
the steering mechanism will have less mechanical
linkages.
16
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
17. UNDERSTAND TODAY. SHAPE TOMORROW.
Owing to the fact that most of carmakers are already offering
embedded Wi-Fi in their cars, over-the-air upgrades of the
systems will become more common and finally replace visits to
the auto shops for a yearly check-up altogether.
Vehicle-to-vehicle communication, as well as vehicle-to-
infrastructure communication are beginning their ascend in most
cities in the world.
Soon the driver’s engagement will be reduced to a minimum by
equipping cars in software that would make autos ‘talk’ to each
other as well as to the street’s infrastructure.
17
The future of automotive industry will largely be built on
software developers. Similar to mobile phones, cars will soon
become physical products full of adjustable functionalities that
could be delivered instantly to users, systematically adapting cars
to customer’s needs.
PRODUCT
SOFTWARE
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
18. UNDERSTAND TODAY. SHAPE TOMORROW. 18
Share of cars connected to the Internet
worldwide from 2012 to 2020
Source: www.statista.com
Shareofcars
0 %
5 %
10 %
15 %
20 %
25 %
2012 2013 2014 2015 2016 2017 2018 2019 2020
22 %
19 %
17 %
14 %
12 %
10 %
8 %
5 %
3 %
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
19. UNDERSTAND TODAY. SHAPE TOMORROW. 19Source: McKinsey consumer survey on connectivity 2014 and 2015
% of respondents answering ‘yes’
I would switch to another manufacturer if it
was the only one offering a car with full access
to apps, data and media
I would be willing to pay for connected
services in my car in a subscription-
based model
20
37
21
32
2014
2015
+85% +52%
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
20. UNDERSTAND TODAY. SHAPE TOMORROW. 20Source: Deloitte 2014 Global Automotive Consumer Study
Consumers believe there are significant
benefits from new vehicle technologies
80%
They don’t crash
60%
Are highly fuel efficient 29%
Drive themselves
35%
Are fully connected
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
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Software Upgrades Will
Come Wirelessly to
Your Car
Explore the Sign
Tesla Motors is revolutionising automotive industry
by introducing over-the-air software upgrades to its
cars.
The innovation starts with P85D Model S sedans by
Tesla, but all others will follow. Most of the carmakers
are already offering embedded Wi-Fi in their cars,
which will enable over-the-air (OTA) software
updates. Soon the functions such as self-parking or
general performance upgrades will be available
through wireless downloads. "The experience is
similar to downloading the latest software upgrade
for a smartphone," the Tesla spokesperson said.
21
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22. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
V2V Communication
Explore the Sign
Vehicle-to-vehicle communication systems are on
the rise.
Governments are taking steps to enable V2V
communication technology for light vehicles. This
would enable vehicles to 'talk' to each other and, in
effect, avoid crashes by exchanging basic safety data,
like speed and position, ten times per second, to
improve safety.
The system uses 'ad hoc network' where every car is
free to communicate with any other car available in
the network and share equal status. Many
automobile manufacturers including are BMW, Audi,
Honda, General Motors, Volvo and Daimler working
and developing this technology to improve safety,
overcome blind spots and avoid accidents.
22
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
23. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
IntelliSafe by Volvo
Explore the Sign
Volvo introduces an innovative co-pilot system in its
cars.
Volvo's cockpit technology will do most of the work
for the driver. It includes bird's-eye-view when
parking the car, blind spot information system
facilitating switching lanes or adaptive cruise control
that would maintain distance to other vehicles
ultimately preventing collisions.
23
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
24. IMPLICATIONONE
Think about the impact your
product has on the environment
The impact of a car on the environment plays an important role in consumer’s perception as it reduces their
ownership costs. The research into renewable sources of energy and their usage in automotive industry is a
race that every car manufacturer should participate it. Green fuels and 3D printing are steps in the right
direction.
UNDERSTAND TODAY. SHAPE TOMORROW. 24
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
25. IMPLICATIONTWO
Use connectivity and
automation to your advantage.
Vehicle-to-Vehicle and Vehicle-to-Infrastructure communication technologies are the future of automotive
industry. Many car manufacturers are already investing in research of those new field and the customers
see a huge potential there as well, as it increases safety on the roads. And safety is the best selling point.
UNDERSTAND TODAY. SHAPE TOMORROW. 25
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
26. IMPLICATIONTHREE
Use the smartphone analogy
when designing a car.
Use the idea behind a smartphone - aesthetically pleasing hardware that, by connecting to the Wi-Fi,
reveals all the new functionalities for the consumer. Offer your clients great hardware that can adapt over
time to changes on the market with upgrades of the software or additional features offered via Internet
connection. Those features could be delivered by external developers, which opens up new business
opportunities for car manufacturers.
UNDERSTAND TODAY. SHAPE TOMORROW. 26
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY CORE PRODUCT
27. ADDED-VALUE SERVICE
ENHANCING CAR FUNCTIONALITIES
ADDED-VALUE SERVICE
UNDERSTAND TODAY. SHAPE TOMORROW. 27
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY
28. UNDERSTAND TODAY. SHAPE TOMORROW. 28Source: IAB Prosper Insights, 2014
Auto buyer vs. typical adult
Own a smartphone
Own a tablet
75%
42%
54%
33%
……..
……..
……..
……..
……..
……..
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY ADDED-VALUE SERVICE
29. UNDERSTAND TODAY. SHAPE TOMORROW.
Since most of the car users own mobile phones, those will become
irreplaceable in a car-related routine. Apps will enable the
consumers to remotely control most features of their cars, but
will also play a vital role for a more comfortable driving
experience.
The drivers will be equipped with digital help during most
complex manoeuvres like parking or switching lanes on a highway.
Multifunctional dashboard interfaces will ensure that the ride is
more pleasant with music control, temperature adjustments or
even breathing exercises recommended by the in-car system.
29
Providing a smooth driving experience is not the only top priority
for car manufacturers. There is so much more a consumer can do
with a car than just drive it.
ADDED-
VALUE
SERVICE
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY ADDED-VALUE SERVICE
30. UNDERSTAND TODAY. SHAPE TOMORROW. 30
Generation Y expectations of car technology:
Easier customisation of a vehicle’s technology after purchase or lease
To connect their smartphones to use all its applications from the vehicle's dashboard interface
Technologies that help manage daily activities
Technologies that help keep them connected to family and friends
57%
49%
46%
52%
Source: Deloitte 2014 Global Automotive Consumer Study
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY ADDED-VALUE SERVICE
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The expected growth of the
value pool from car data and
shared mobility by 2030
1,5
trillion
Source: McKinsey Car Data; Paving the way to value-creating mobility, 2016
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY ADDED-VALUE SERVICE
32. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Volvo Lets You Control
Your Car with an App
Explore the Sign
Not only is there an app that replaces car keys , but the
car manufacturer designed an application that enables
owners to remotely manage their vehicles’ technology.
Volvo cars are now equipped with a built-in feature that
enables the driver to access the car’s dashboard, get the
door lock status, fuel level, maintenance warnings etc
using a downloadable application.
The driver can also keep a driving journal, send the car’s
location, get directions and plan a trip using the feature.
Additional features include roadside assistance,
emergency support, automatic collision alert and theft
alert.
32
ADDED-VALUE SERVICELHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY
33. LHBS Put the Title of the Report hereUNDERSTAND TODAY. SHAPE TOMORROW.
Volvo Manuals on Your Mobile
The car manufacturer offers its customers an app with
user guides and videos.
The app is a smart substitute for paper manuals. It is easy
to navigate and features everything a Volvo-user would
need to know (articles and information about the car
model, instructional videos, keywords etc).
Explore the Sign
Learnings
Visual aid is more appealing to consumers
‘AirBnB for Cars’ Service by BMW
BMW is preparing to become the first carmaker to
launch an “Airbnb for cars” service, shifting from vehicle
manufacturer to mobility provider. BMW owners will
soon be able to earn extra money by renting out their
cars. ReachNow is an expansion of BMW’s existing pay-
per-minute car rental service, DriveNow.
Explore the Sign
Learnings
Be prepared to adjust the business model and offer
consumer additional platforms
Audi easy-delivery service
Audi launches an easy-delivery service to its customers.
In cooperation with Amazon Prime and DHL Parcel Audi
wants to start offering a special logistic service. The
packages ordered on Amazon would be delivered by
DHL directly to a car’s trunk.
Explore the Sign
Learnings
Services not solely related to the car itself are a game
changer for consumers
33
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY ADDED-VALUE SERVICE
34. LHBS Put the Title of the Report hereUNDERSTAND TODAY. SHAPE TOMORROW.
Ford Cars Now Talk to Amazon Echo
Ford is working on connecting devices like Amazon Echo
to be able to control smart home systems including
lighting, thermostats or even security systems straight
from the car. The same principle could be applied the
other way round: you could stop, start, lock and unlock
your car from inside the house.
Explore the Sign
Learning
Car-home connection will soon be a standard feature
Audi FitDriver
Audi plans to connect your smart devices to its in-car
system and help you cope better with stressful driving.
Audi says it will combine vital stats from your smart
watch with information that it monitors and then change
the car’s environment to help you stay calm.
Explore the Sign
Learning
Driving comfort will still be a focus of car manufacturers
Tesla & Spotify
Tesla cars in Europe, Australia and Hong Kong now come
equipped in their own Spotify Premium account.
Each car will have their own account with access to a full
Spotify library for free. Apart from giving a gratis access
to music, Tesla cuts the mobile data costs as well.
Explore the Sign
Learning
Cooperations with companies outside automotive
industry can benefit both parties
34
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY ADDED-VALUE SERVICE
35. IMPLICATIONONE
Implement agility to your
business model
Exploiting new monetisation opportunities that arise from innovative car functionalities requires constant
adjustment of a business model. It’s not just about selling cars, but more about adding value to customers’
lives in a broader sense. Monitor what’s important for your consumers, then alter your business model and
react to emerging trends.
UNDERSTAND TODAY. SHAPE TOMORROW. 35
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY ADDED-VALUE SERVICE
36. IMPLICATIONTWO
Cooperate with companies that meet
consumer’s complementary needs
Implementing extra services in cooperation with non-automotive companies helps consumers save resources like money
or time and increases brand loyalty
UNDERSTAND TODAY. SHAPE TOMORROW. 36
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY ADDED-VALUE SERVICE
37. IMPLICATIONTHREE
Investigate into new paths that will
be possible with car data
In-car advertising and hence also decision making and online purchases will be available while driving a car. Vehicles
could carry the consumer to the point of purchase after the decision-making process. It would be applicable for non-
automotive-related purchases as well.
UNDERSTAND TODAY. SHAPE TOMORROW. 37
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY ADDED-VALUE SERVICE
38. SHOPPING EXPERIENCE
NEW WAYS OF EXPERIENCING BRANDS
SHOPPING EXPERIENCE
UNDERSTAND TODAY. SHAPE TOMORROW. 38
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY
39. UNDERSTAND TODAY. SHAPE TOMORROW. 39
Digital is key to driving premium perception.
McKinsey analysed 24 customer touch points for more than 9,000 new car
buyers to better understand which touch points drive customers’ premium
perception and, hence, willingness to pay. A factor analysis identified seven
core touch point dimensions of customers’ willingness to pay.
Of these, digital experience ranked second most valued,
just behind live experience.
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY SHOPPING EXPERIENCE
40. UNDERSTAND TODAY. SHAPE TOMORROW.
Customer experience starts even before the product purchase.
The concept expands from retail to online and encompasses all
the media and platforms that enable consumers to get to know
the brand and what it stands for.
As said before, cars may become the most technologically
enhanced products that most consumers will ever buy. Yet the
shopping experience should be kept as easy, stress-free and fun
for the consumer as possible.
Automotive industry is giving its customers an opportunity to not
only play with the product’s features, customise it and test it
before the purchasing decision, but also to learn about the brand
in a more informal environment.
40
Customers experience brands in many different ways. In order
to create a pleasant brand image, companies need to align their
effort on every platform that consumers come in contact with.
SHOPPING
EXPERIENCE
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY SHOPPING EXPERIENCE
41. UNDERSTAND TODAY. SHAPE TOMORROW. 41Source: McKinsey 2013 Retail Innovation Consumer Survey
Find city stores appealing to very appealing
Brand experience most appealing to
consumers
61%
Small stores in prime city centre locations exhibiting only
limited products physically, often supported with digital
technologies; focus on customer and brand experience
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY SHOPPING EXPERIENCE
42. UNDERSTAND TODAY. SHAPE TOMORROW. 42Source: Retail’s Main Event: Brick & Mortar vs. Online, RetailNext
84% of consumers believe that retailers
should be doing more to integrate their
online and offline channels.
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY SHOPPING EXPERIENCE
43. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Intersect by Lexus-
Luxury Brand
Experience Space
Explore the Sign
Lexus, in cooperation with a Japanese design firm
Wonderwall, opened in Tokyo a luxury brand experience
space.
Surprisingly, the store is neither a dealership, nor a
traditional retail spot and there are no cars in sight. The
purpose of the venue is to give visitors a true Lexus-
experience through art, design, fashion, culture, film,
music and technology without them actually being
under a steering wheel of the car. Potential customers
visiting the space can enjoy a beverage at the cafe,
admire designer pieces of furniture, use the on-site
collection of books while listening to carefully selected
pieces of music.
43
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY SHOPPING EXPERIENCE
44. UNDERSTAND TODAY. SHAPE TOMORROW.
Ferrari AR Showroom
Ferrari's Australasia dealerships are now offering an
augmented reality application that allows potential
customers to immediately customise the sports cars.
Customers will be able to see the car in different colours,
with certain extras and other options. They will also be
able to see more detailed information about the
components of each car.
Explore the Sign
Learnings
Make use of new technologies to increase brand loyalty
Tesla’s Way of Selling Cars
Tesla Motors created rich, interactive shopping spaces
engaging people in Tesla-experience.
The strategy was to open stores in high traffic retail
locations and educate customers in a less formal
environment. The store’s space was created to address
the 4 customer needs.
Explore the Sign
Hyundai’s ‘Digital First’ Showroom
Hyundai has opened the UK’s first ‘digital-first’ car
showroom where car shoppers browse and buy primarily
via screens.
Customers input their current car, budget, financing
options and the system returns a list of potential cars
that they can then customize with color, fuel type,
transmission, etc.
Explore the Sign
Learnings
Rethink the design of your shopping space
Learnings
Let the customers play with the product’s features prior
to purchase
44
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY SHOPPING EXPERIENCE
45. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Audi Virtual Cockpit
Explore the Sign
The new Audi TT brochure uses conductive print to
turn the brochure into a smart surface which
connects to a mobile app to deliver an augmented
reality experience.
Audi's Virtual Cockpit uses smart surfaces to turn a
brochure into a storytelling platform. By hacking into
the conventional sales brochure by using conductive
technology, Audi has opened up the possibilities for
this important touchpoint in the customer journey.
The design of the brochure allows prospective
buyers to launch the Audi Virtual Cockpit app, which
connects to the brochure via Bluetooth and responds
to the touching of hotspots printed on the brochure.
The brochure's smart functionality even includes
customising the car's features and requesting test
drives.
45
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY SHOPPING EXPERIENCE
46. IMPLICATIONONE
Use a broad spectrum of stimuli
to increase brand loyalty
Increase brand recognition not by focusing on one product but by enabling your customers to immerse in a
full brand universe.
UNDERSTAND TODAY. SHAPE TOMORROW. 46
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY SHOPPING EXPERIENCE
47. IMPLICATIONTWO
Enable your customers to play
and experience the product
Design spaces that welcome consumers to learn more about the product and its features in a fun and
interactive way.
UNDERSTAND TODAY. SHAPE TOMORROW. 47
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY SHOPPING EXPERIENCE
48. TOUCHPOINTS &
COMMUNICATION
STAND OUT FROM THE CROWD
TOUCH POINTS & COMMUNICATION
UNDERSTAND TODAY. SHAPE TOMORROW. 48
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY
49. UNDERSTAND TODAY. SHAPE TOMORROW. 49
The majority of consumers spend more than
10 hours researching and considers 3 or more
brands before they purchase a vehicle
Source: Deloitte 2014 Global Automotive Consumer Study
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50. UNDERSTAND TODAY. SHAPE TOMORROW.
Marketing efforts are becoming increasingly consumer-driven.
Due to the rise of social media, nearly 80% of the online brand
content is user-generated.
In order to engage customers into an active conversation about a
brand or a product, companies need to be authentic, provide
interesting content and most importantly, promote the brand on
different platforms in a way that consumers feel is fun and
enjoyable.
Within the automotive industry, it is crucial to focus the brand
communication not only on a product itself, but more on the
lifestyle associated with a particular brand.
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A major challenge in today’s commercially-driven society is to
create content that people seek, not avoid. Consumers are
bombarded with advertising on every platform, but once you
stand out from the crowd you’ll be rewarded with brand loyalty
beyond compare.
COMMUNI-
CATION
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51. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Toyota Creates a
Climbable Billboard at
New York’s Times
Square
Explore the Sign
The car manufacturer together with Saatchi &
Saatchi agency created a 10-story billboard that is
climbable by professionals and amateurs.
The project introduces a new Toyota RAV4 Hybrid
model and the idea behind it was to create something
extraordinary, illogical that would generate instant
buzz on social media. The giant rock catches the eyes
of passers-by who immediately post on social media.
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52. LHBS Put the Title of the Report hereUNDERSTAND TODAY. SHAPE TOMORROW.
Chevrolet ‘Real People, Not Actors’
The car manufacturer launches a campaign that
challenges consumer’s perception of the brand.
The campaign features real people, potential clients of
Chevrolet, being introduced to different models of
sedan. The focus is on new, technical features of the car.
It has already proved very successful. Since its debut
retail sales have increased every month.
Explore the Sign
Learning
Testimonies from real people are more believable to
consumers
Audi’s #WOMENDRIVERS
In a new Twitter campaign, Audi Ireland has tackled the
stereotype that women are bad drivers.
The automaker has posted a series of images that appear
to make fun of women drivers; however, the tweets
contained links that reveal that women are not only not
stereotypical bad drivers, but rather real drivers in fields
like technology, science, and sports.
Explore the Sign
Learning
Create content that questions stereotypes and disrupts
equilibrium
Ford ‘Unlearn’- Campaign
The car manufacturer asks people to ‘unlearn’ what they
know about the world and let go of preconceptions
about the brand itself in their new campaign for a UK
market. The campaign is part of the re-branding strategy
of Ford, that wants to transition to an auto and mobility
company that sells services and not just cars.
Explore the Sign
Learning
Serious subjects presented in a fun way are more
remembered by consumers
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53. UNDERSTAND TODAY. SHAPE TOMORROW.
BMW’s 360 Film Featuring GiGi
BMW tapped model Gigi Hadid to star in their
interactive film promoting the new BMW M2.
The ad is a high speed shell game where the viewers are
invited to test their capacities to stay laser-focused on
the ride with the beautiful woman in it. The ad was shot
in both normal and 360 versions.
Explore the Sign
Learnings
Engaging carefully selected celebrities as testimonies to
the product speaks volumes to younger generation
Aston Martin’s Soundcloud Account
Aston Martin's Soundcloud account lets you experience
what it would be behind the wheel of the car of your
dreams.
The account takes you on a journey through an entire
range of sounds– from starting up the car, speeding up
and zooming right by.
Explore the Sign
Audi’s Wi-Fi Network Names
The luxury German automaker Audi trolled its
competition at the New York Auto Show by creating
open Wi-Fi networks that listed why its new A4 sedan
was better than other cars.
The move seemed slightly out-of-character for the
normally gentlemanly Audi.
Explore the Sign
Learnings
Seek for unconventional platforms to market your
product
Learnings
Fun and witty marketing methods are most admired by
customers
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54. UNDERSTAND TODAY. SHAPE TOMORROW.
Audi’s Social Stunt
Audi brought in an Italian endurance racing driver, to
create a video where he drives the Audi R8 to skid the
number 500,000 into the ground.
In fact, the video got so much love that Audi decided to
broadcast it on TV to engage new audiences, particularly
in Germany. All these efforts worked together to grow
their fans by 17%.
Explore the Sign
Learnings
Celebrate milestones by engaging your customers
Lexus Overboard
Lexus unveiled a levitating hoverboard and are
renovating a skatepark to include the metallic surfaces
their board needs in order to operate.
The move is an attempt to show the viability of a realistic
consumer product by overcoming several hurdles, in this
case, incorporating an infrastructure of metal lanes into
skate parks to accommodate for the boards design.
Explore the Sign
Buick - Pinboard to Dashboard
In their campaign, Buick has called on nine of the most
influential Pinfluencers to create a brand image around
its Encore model.
The Pinterest influencers have been asked to create
their own inspirational boards regarding the new model
and with a fresh perspective.
Explore the Sign
Learnings
Let your company’s credo be visible through your
marketing actions
Learnings
Engage influencers only on platforms they feel
comfortable with
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55. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Mercedes-Benz
Whatsapp-Newsletter
Explore the Sign
The car manufacturer has launched a new initiative
to connect with its customers and fans.
Whatsapp-Newsletter has been introduced as a
means to communicate with the fans about most
recent events from the Mercedes-Benz universe.
Customers can choose between two channels -
Formula One (racing results) or Deutsch
Tourenwagen Master (racing results, training etc).
Activation as well as de-activation of the service is
intuitive- all you need to do is send a Whatsapp text
to Mercede-Benz.
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56. UNDERSTAND TODAY. SHAPE TOMORROW.Source:
Toyota collaborates
with latin musicians on
Snapchat
Explore the Sign
Toyota is using Snapchat and popular Latin musicians
to create an innovative storytelling experience.
Toyota has partnered with Latin artists for a unique
Snapchat piece that requires users to follow each
account and place three smartphones side by side.
Users follow the personal accounts of the three
artists on Snapchat and then line up their
smartphones to view the piece in its entirety.
The campaign is to promote its RAV4 Hybrid vehicle.
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57. IMPLICATIONONE
Show your brands personality
Take creative risks when it comes to advertising and, in return, make lasting impression by your consumers.
Play with new platforms and media, go beyond a pure driving experience and most of all, remember to
appreciate your customer’s engagement and loyalty.
UNDERSTAND TODAY. SHAPE TOMORROW. 57
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58. IMPLICATIONTWO
Provide consumers with relevant
content
The marketing efforts are only effective, as long as they resonate with your target audience. Research into
who your customers really are and what they enjoy.
UNDERSTAND TODAY. SHAPE TOMORROW. 58
LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY TOUCH POINTS & COMMUNICATION
59. IMPLICATIONTHREE
Have a conversation with
individual customers
Engage in an interaction with individuals. It builds trust, promotes positive brand image and sets you apart
from your competition.
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60. LHBS Put the Title of the Report here
HUB.
UNDERSTAND TODAY. SHAPE TOMORROW.
INSPIRATION-HUB The Inspiration-Hub is a service that gives
marketing teams constant access to the latest insights and inspiration, so
that they can develop more relevant marketing ideas.
http://www.inspiration-hub.com
INSPIRATION-HUB
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REQUEST
A DEMO.
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61. UNDERSTAND TODAY. SHAPE TOMORROW.
Discover
ABOUT
LHBS. Define Develop Deliver
We are an unconventional strategy firm that helps clients to
better understand today and successfully shape tomorrow. LHBS
has extensive experience & expertise in business development,
brand building and customer experience. The firm works across all
major industries for clients from the FT Global 500, German
Mittelstand and fast growing startups.
http://www.lhbs.com
ABOUT
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LHBS // THE NEAR FUTURE OF AUTOMOTIVE INDUSTRY
We work with our clients to build more purposeful and therefore more
profitable relationships with the customers.
In a rapidly changing business world, we are committed to watch, listening
and translating sign of change into strategic opportunities and powerful
ideas for products, services, experiences and communication.
http://www.lhbs.com
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die ganze oder teilweise Vervielfältigung sowie jede Weitergabe an Dritte ist nicht gestattet.
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Köpenicker Straße 154
10997 Berlin Germany
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