Jaguar Case Study How Insights From Social Media Helped Win Jaguar’s Business

Overview

Company Industry Category Jaguar Automotive Luxury

Challenge Solution Result Identify consumer Infegy Atlas used to Depth and uniqueness of motivations on a analyze consumer insights discovered global scale for perceptions in three contributed to the agency selecting car repair countries winning Jaguar’s Global services Account

www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116 How Insights From Social Media Helped Win Jaguar’s Business

Introduction

Jaguar had begun noticing a decline in customer visits to its dealerships for routine maintenance items. This was of great concern for many reasons, but one reason in particular was the possibility that sub quality repairs made by independent shops could lead to negative consumer perceptions of the overall quality of the brand. ! Agencies were asked to address this issue in their pitch to Jaguar for the opportunity to become the agency of record for the global account. The agency that ended up winning the account leveraged Infegy Atlas, a social media analytics platform, to compare buyers from around the world to gain unique insights about why people choose to go to dealerships or independent mechanics for service. ! A Brief History of Jaguar

In 1922, Sir and William Walmsley founded the , soon after referred to as SS Cars Ltd. The company originally manufactured motorcycle sidecars before beginning development on automobiles. Following the end of World War II the company changed their name to Jaguar to avoid negative associations of the SS initials with the German SS. ! From its inception, Jaguar has focused on designing elegant automobiles that are powered by cutting edge technology. Early success was attributed to an advanced twin- cam straight six engine design praised for its performance and reliability. The design was widely used in military vehicles and was responsible for Jaguar teams winning the Le Mans 24-hour race in 1951, 1953, 1956 and 1957. 1 ! 1. "." Wikipedia. Wikimedia Foundation, 29 Oct. 2013. Web. 12 Nov. 2013.

www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116 How Insights From Social Media Helped Win Jaguar’s Business

Yet although the engines were largely held in high esteem, in the United States Jaguar has long been regarded as suffering from reliability issues, particularly with the electronics. This long-held perception was perhaps best exemplified by the television show Mad Men. ! He turns the key and it doesn’t start. It’s a Jaguar, they never start. They’re absolutely beautiful but terribly unreliable. ! ! In the fifth season set in 1967, the show’s protagonist, Don Draper, alludes to this perception of unreliability when talking to a Jaguar sales associate. He’s blown away by the beauty, but quips, “I hear that dampness is murder on the electrical system.” Later in that same season a newly purchased Jaguar fails at a very climactic moment for Lane Pryce, a partner of the firm. He turns the key and it doesn’t start. It’s a Jaguar, they never start. They’re absolutely beautiful but terribly unreliable.

“Christmas Waltz.” Mad Men. AMC. 20 May 2012. Television.

This perception has taken a long time to shake; however, in the past decade the company has made enormous strides to improve reliability and overall quality. This is why it was so important to Jaguar’s leadership that the public perceptions around reliability and quality continued to their upward trajectory. ! www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116 How Insights From Social Media Helped Win Jaguar’s Business

Research on a Global Scale - Establishing Benchmarks

As a global brand, Jaguar needed to understand the differences between buyers of varying nationalities. To gain this insight, the agency focused on conversations taking place over five years in three major markets, the United States, United Kingdom, and Germany. ! Conversation Volume (in thousands) To better understand the landscape and 975 establish a benchmark to compare Jaguar against, the agency set out to define the baseline of consumer perceptions of car 390 maintenance and repair as it related to 227 150 dealerships and independent mechanics. In 68 9 21 49 their research around conversation volume, UK DE US Global dealerships were discussed far more often Independent Shops Dealerships than independent shops. ! Globally, independent service centers represented 13% of the total conversation. The United States and Germany were within 4% of this baseline, however, in England independent shops accounted for nearly 30% of the total conversation. As a result it was recognized that consumers in the UK were much more aware of alternatives to having their vehicles serviced at the dealership. Dealer vs. Independent Sentiment ! Analysis Yet, while dealerships were talked UK Dealer UK Indie about to a much greater extent, DE Dealer DE Indie on average they were also US Dealer discussed more negatively than US Indie Global Dealer their independently owned Global Indie competitors. 0 25 50 75 100 ! Positive Negative

www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116 How Insights From Social Media Helped Win Jaguar’s Business

The only country in which dealership service was discussed more positively than independent service was in Germany. Upon analyzing the categorical themes of the overall conversation the agency identified a different set of motivators for German consumers. ! While price and service were the top two most positively referenced motivators globally, within the United States, and within the United Kingdom, German consumers placed a higher value on the quality of the work and the trustworthiness of the service provider. !

Consumer Motivational Factors for Dealership Service Germany United States

62% 59% 53% 44% 34% 25%

Trust Quality Results Service Price Quality

Global United Kingdom

44% 61% 31% 29% 36% 24%

Price Service Expectations Service Price Expectations

Interestingly, although overall German’s discussed dealerships more positively, independent mechanics received higher positive conversation share for both trust and quality. For Germans, where the dealerships were able to excel over independent mechanics was on price, but only by a very small margin.

www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116 How Insights From Social Media Helped Win Jaguar’s Business

Variances in gender distribution were noted across the four samples. Globally and within the US there was close to a 45/55 distribution of females to males for both service types. However, in the UK women strongly made up the majority of the conversations about car repair and maintenance, averaging 65% of the total volume. Contrast this with Germany where conversations about dealership service were primarily held by men with a ratio of 60:40.

Gender Distribution

36% 44% 43% 45% 48% 45% 60% 71%

64% 56% 57% 55% 52% 55% 40% 29%

UK Dealer UK Indie DE Dealer DE Indie US Dealer US Indie Global Dealer Global Indie

With demographic, perception and purchasing driver information identified the final baselines that the agency identified were related to the specific component categories being repaired or receiving maintenance work.

Dealerships United Kingdom Germany United States

1. Engine 1. Engine 1. Engine

2. Electrical 2. Transmission 2. Suspension

3. Transmission 3. Electronics 3. Transmission

Independent Mechanics United Kingdom Germany United States

1. Engine 1. Engine 1. Suspension

2. Electrical 2. Transmission 2. Transmission

3. Suspension 3. Brakes 3. Engine

www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116 How Insights From Social Media Helped Win Jaguar’s Business

Research on a Global Scale - Measuring Jaguar

Within conversations about Jaguar, US Jaguar Conversation Volume maintenance or repair, and dealerships or 118,000 independent mechanics, there were several key differences from the established baselines. Comparing Jaguar to the volume baselines, conversations about independent mechanics 58,000 represented a much higher percentage of the total conversations within every market. For instance, when US consumers spoke about Jaguar and maintenance, independent US mechanics represented 17% more of the total conversation volume. Independent Shops Dealerships ! The above line volume of conversations concerning independent mechanics and Jaguar supported the findings that consumers were increasingly more aware of and apt to utilize providers other than Jaguar dealerships for maintenance and repair. ! Dealer vs. Independent At first glance the sentiment results for Sentiment Analysis Jaguar looked bleak. However, in both UK Dealer the global market and the US, Jaguar UK Indie DE Dealer enjoyed a 12% positivity advantage over DE Indie established benchmarks. In Germany US Dealer US Indie Jaguar held a slight positivity Global Dealer Global Indie advantage of 2% and positivity 0 25 50 75 100 remained unchanged in the UK at 68% Positive Negative of total.

www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116 How Insights From Social Media Helped Win Jaguar’s Business

Consumer Motivational Factors for Jaguar Dealership Service (Comparison)

Germany United States

75% 62% 59% 71% 59% 48% 53% 44% 34% 25% 25% 26%

Baseline Jaguar Baseline Jaguar Trust Trust Price Price Quality Quality Service Quality Results Attractiveness Quality Service

Global United Kingdom

53% 61% 44% 39% 31% 29% 29% 29% 36% 24% 26% 28%

Baseline Jaguar Baseline Jaguar Price Price Price Price Service Quality Service Service Expectations Expectations Expectations Expectations

Contrasted against the motivational baselines, motivational factors for choosing a Jaguar dealership to perform service varied in the level of importance and the actual drivers themselves. Jaguar’s German customers placed an even higher level of importance on their trust in the dealer to perform high quality work. They also spoke frequently about the attractiveness of how easy Jaguar dealerships made it to have service performed by offering things such as complimentary loaner vehicles. ! The majority of conversations among US consumers were focused on price, which was discussed more positively than the baseline of all dealers. However, when discussing qualitative measures of service (friendliness, accommodations, experience), Jaguar dealerships did not fare nearly as well, with 18% less positive conversations. ! Consumers in the UK also viewed Jaguar’s service pricing as being marginally better than average, but once again the experiential aspects of the service were significantly lower than the benchmark, dropping from 61% positivity to just 26%.

www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116 How Insights From Social Media Helped Win Jaguar’s Business

Gender Distribution

36% 40% 38% 39% 38% 50% 44% 43% 45% 48% 44% 45% 54% 60% 69% 71%

64% 60% 62% 61% 62% 50% 56% 57% 55% 52% 56% 55% 46% 40% 31% 29%

G BI G JI DE JI US JI G BD G JD UK BD UK JD UK BI UK IJ DE BD DE JD DE BI US DB US DJ US BI

Very little change in gender distribution was found when comparing the standard results to those for Jaguar. ! For dealership and independent service, frequency of discussion around components related to the engine, suspension, brakes and transmission remained fairly constant across the baseline and Jaguar samples. One notable variance was more use of independent mechanics for brake related service and repair. ! More strikingly, in both US comparisons of the Jaguar to the baseline, repairs related to electronics, a traditionally weak spot for Jaguar, were much more commonplace. ! Dealerships UK Baseline UK Jaguar DE Baseline DE Jaguar US Baseline US Jaguar

1. Engine 1. Engine 1. Engine 1. Engine 1. Engine 1. Engine

2. Electronics 2. Brakes 2. Transmission 2. Electronics 2. Suspension 2. Electronics

3. Transmission 3. Electronics 3. Electronics 3. Transmission 3. Transmission 3. Suspension

Independent Mechanics UK Baseline UK Jaguar DE Baseline DE Jaguar US Baseline US Jaguar

1. Engine 1. Engine 1. Engine 1. Engine 1. Suspension 1. Engine

2. Electronics 2. Suspension 2. Electronics 2. Electronics 2. Transmission 2. Suspension

3. Suspension 3. Brakes 3. Brakes 3. Brakes 3. Engine 3. Electronics

www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116 How Insights From Social Media Helped Win Jaguar’s Business

Taking action on the insights

The results of the research helped to identify the strengths and weaknesses of Jaguar's dealership service offerings globally and across the United States, United Kingdom and Germany.

Strengths Weaknesses

• High levels of trust and perceptions of • Qualitative factors related to consumer quality globally and in Germany! experiences with Jaguar dealerships ! for service was significantly more • Service pricing positively positioned negative in US and UK! within the overall market

Opportunities Threats

• Campaigns targeted to female • Increasing awareness and adoption of ! customers in the UK! ! independent mechanics for service! • Adapt experiential service elements • Higher frequency of electronics issues from Germany to other markets! reported in US!

Consistently across the US, UK and general market, the findings suggested that consumers took their vehicles to Jaguar service centers due to higher perceived quality of the workmanship and parts, price point position, and ability to meet or marginally exceed consumers’ expectations. In Germany, although price and cost of parts and service were of interest, trust and quality were the most important factors for choosing the dealership over an independent mechanic. ! The agency’s pitch to Jaguar leveraged the findings above to make informed recommendations to better position the brand’s after purchase sales to align with the identified consumer motivational factors for each territory. They also suggested selectively elevating the aspects that mattered most to each consumer group by utilizing specific language and imagery in their messaging and advertising campaigns. ! Jaguar was so impressed with the team, the pitch, and the data, that the agency was awarded the global account.

www.infegy.com +1 816-494-1650 [email protected] 4151 N Mulberry Dr., Suite 240, Kansas City, Missouri 64116