The digital gear shifts of this age for automobile brands

The automobile industry is not immune to the sweeping, lasting changes unleashed by COVID-19 on all businesses. The ‘new normal’ requires it to adapt to a dichotomy. For instance, the fear of contracting the virus on public transport is making many consider investing in a car but they also fear walking into showrooms to check their options. The industry, so dependent on the show-and-tell model so far, has been forced to look at new ways to make potential customers experience their products and to service them in a contact-less manner. Accordingly, automobile manufacturers are adapting by instituting online test drives, digital bookings and contact-free ways to enable potential customers to experience their cars. And it is working. Maruti Suzuki, for example, saw online inquiries spike 45% during the lockdown, encouraging it to digitise 21 of the 26 touchpoints in the purchase journey – including documentation and payments*. Skoda India, too, has recently introduced its ‘Contactless Virtual Demo’ feature, where potential buyers are promised ‘safe and secure’ car demos from the safety of their homes or offices.

*Source: https://m.timesofindia.com/auto/news/post-lockdown-maruti-suzuki-sells-every-second-car-digitally/articleshow/77203161.cms

These trends are likely to persist even after the lockdown ends fully, what with people not only feeling safer in their own cars, but also demanding that the dealer experience get closer to home through online buying and doorstep delivery.An analysis of consumer sentiment on social media by The Distillery – Star India’s intelligence centre for data-driven business decisions – showed the emergence of certain trends:

• The fear of contracting COVID-19 has resulted in dread of public transport, increasing the demand for private cars. This trend is being seen in other countries too: the use of private cars in China rose 94% after the outbreak.
• Consumers are also looking for economically viable options when it comes to private cars, providing a fillip to the pre-owned cars market. The sales for used cars have shot up, despite the vehicle sales dropping by 78.43% in the April to June 2020 quarter.
• A shift in conversations from brands, performance and design to safety and social responsibility defined by COVID-19 prevention measures. There is some concern about service centres as consumers rely on private vehicles. Furthermore, the conversation extends to discounts and offers on purchases.
• Hatchbacks is the lone segment witnessing a growth in conversations; utility vehicles have seen a huge drop.
• The fear of infection will impact the supply chain and consumer preferences as will the online sales and service experience. It will create new possibilities for innovation.
• Consumers are actively tracking brands’ corporate social responsibility initiatives and appreciating them. For example, MG Motors’ and the Tata Group’s initiatives have raised their brand visibility.

In this scenario, communicating the brand’s innovations in line with prevailing customer sentiment is becoming crucial. The media mix is a key pillar in this marketing strategy. As consumers change the way they gain information, the right media mix ensures consistent communication by strategically releasing messages in different media.

KIA motors recently launched ‘Sonet’, its new offering in the competitive compact SUV segment. The brand also telecast the world premiere event live on Disney+ Hotstar. Following this, the event video was also hosted on the online streaming platform for viewers to see and learn more about KIA’s latest offering.

To this end, no brand can afford to keep OTT out of its media mix – and, by extension, Disney+ Hotstar. Other than the reach, it offers brands the best of digital and linear media – from direct targeting and superior measurement to higher video completion rates and more engaged experiences. This, naturally, delivers a significant impact on brand measures such as consideration and salience. For the automobile industry, therefore, the highway to the future is digital.