Kia Regional TV Market Update February 2012. RTM is the marketing bureau for Regional free to air TV.

Kia

Regional TV Market Update

February 2012

www.regionaltvmarketing.com.au

RTM is the marketing bureau for Regional free to air TV

http://www.regionaltvmarketing.com.au/regional-tv/home

• Regional car sales will grow above the national average in 2012

• KIA gets 38% of national sales from regional – maintaining share in a cost efficient market is vital

• As KIA moves to more premium and innovative position regional consumers need to have their perceptions challenged even more than metro

• Cerato proves the success of higher share of budget allocated to regional

Strong support for regional markets is more important than ever to KIA in 2012

Regional TV covers all areas outside capital

cities and reaches 36% of

populationQLD

NNSW

SNSW

TAS

VIC

REG. WA

DIARY

Regional TV coverage

includes large cities and fast

growing coastal suburbs

Newcastle & Central Coast

Gold Coast

Wollongong & Illawarra

Canberra

Diary markets: 19% of total regional population

Regional WA

Port Pirie/ Broken

Hill

Satellite

Griffith

Mildura

Darwin

Loxton/Mt Gambier

35% of all people live in Regional TV markets

SYDMEL

Reg NSWBRIPERQLDADEVIC

Diary TASWA

0m 1m 2m 3m 4m 5m

4,715 4,626

3,538 3,033

1,890 1,792

1,430 1,183

969 515 505

People

Source: OzTAM 2012, Regional TAM 2012, Nielsen Media Research 2010

NNSW 2,109 SNSW 1,429

Population Increase: 2001 vs. 2012

Source: Source: OzTAM 2012, Regional TAM 2012

Australian population moving North and to the coast. Over 40% growth in 10 years in some regional areas

MARYB

MACKA

YBRIS

NOR RIV

CAIRNS

PERTH

TOW

NS

ROCK

TOOW

CANB

GIPPS M

EL

TAM/T

AR

ALBURY

WOLL

BALLSY

DADEL

NEWC

HOBART

BEND

LAUNCE

SHEP

P

O/D/W

0%5%

10%15%20%25%30%35%40%45%

National average

QLD NSW VIC TAS METRO

Urbanisation and high population growth changing the profile of regional Australia

• Seachange: Baby boomers and young families

• Lower cost of living and lifestyle are main attractions

• Rural populations moving to regional hub towns

• Less than 4% of households depend on farming

Regional consumers’ willingness to spend grew is more positive in regional looking ahead to 2012

2006 2007 2008 2009 2010 20110

50

100

150

200

250

300

350

Metro

Spending per discretionary $1000

Source: foreseechange 2005 – 2010 annual average, 2011 June & November 2011 survey

average

Average household incomes in regional TV markets are within 10% of national average

Regional Metro

NNSW $87,230 Sydney $116,950

SNSW $106,160 Melbourne $103,060

Victoria $81,500 Brisbane $103,450

Queensland $95,410 Adelaide $95,720

Tasmania $87,850 Perth $123,260

Rural $106,610

Source: Roy Morgan Single Source (12mths to Sep 2011 )

P25-54: Average household Income

Incomes in regional and rural Australia are growing well above the national average

Metro National Regional Rural0%

20%

40%

60%

80%

38% 40% 44%57%

Average household income growth since 2004 (P25-54)

Source: Roy Morgan Single Source (12mths to Sep 2011 – 2004 )

2003 2004 2005 2006 2007 2008 2009 2010 2011-10%

-5%

0%

5%

10%

15%

10%

4% 3%

-1%

9%

-4%

-9%

13%

-4%

11%

8%

5%

-5%

8%

-4% -4%

7%

-1%

Last year regional sales fell by only 1% vs. down 4% in capital cities

YOY change in new car sales

Source: VFACTS (excluding trucks and buses, including utes)

2003 2004 2005 2006 2007 2008 2009 2010 2011-10%

-5%

0%

5%

10%

15%

10%

4% 3%

-1%

9%

-4%

-9%

13%

-4%

11%

8%

5%

-5%

8%

-4% -4%

7%

-1%

In last six months regional car sales grew by 5% YOY vs. 2% decline in metro

YOY change in new car sales

Source: VFACTS (excluding trucks and buses, including utes)

5%

-2%

1in3New cars

sold are to regional

buyers

Source: VFACTS Jan-Dec 2011 - Regional accounts for 34% of sales excluding Trucks and Buses including utes

38% of total Kia sales are to regional buyers - but down compared to metro

SYD

BRI

PER

VIC

TAS

0 1,000 2,000 3,000 4,000 5,000 6,000

4,323

4,924

2,735

1,202

2,007

4,244

1,530

2,446

334

898

Kia vehicle sales: Jan to Dec 2011

YOY Change

-

+26%

+14%

+5%

-6%

-1%

+1%

-2%

+10%

-45%

-15%

Source: VFACTS Jan-Dec 2011 vs. 2010 (Excludes T&B, including Utes)

Regional sales -2% YOYMetro +11%

KIA share of regional car sales coming from a very high base – new models clearly appealing to metro as well

2005 2006 2007 2008 2009 2010 2011

-1%

0%

1%

2%

3%

4%

5%

6%

Metro Regional

Kia share of all category sales by year*

Share

Source: VFACTS and AdQuest, *excludes trucks and buses

2005Total TV: $14.9mReg share: 18%



2008 Total TV: $8.2mReg share: 19%

2009Total TV: 10mReg share: 19%



Kia market share is particularly strong in Reg. NSW, QLD and VIC

SYD MEL BRI ADE PER NSW VIC QLD TAS W/S/N

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Total Kia share all segment sales: Jan to Dec 2011

+0.47%

+0.43%

+0.11%

-0.03%+0.14

%0% -0.01%

+0.19%

-1.23% -0.29%YOY % change


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Kia is more popular in regional across the key volume models

Kia model Regional %: Jan to Dec 2011 vs. 2010

Gro

wth

Source: VFACTS Jan-Dec 2011 vs. 2010 (Includes Trucks and Buses)

34% of all vehicles sold nationally are

to regional

The fastest growing vehicle segments are in regional and suit KIA profile – small and compact SUV

Light < $25K

Small < $40K

Medium < $60K

People Movers <

$55K

SUV Compact

SUV Medium

-20%

-15%

-10%

-5%

0%

5%

10%

15%

-6%

-1%

-6%

-17%

7%

-7%

0%

5%

-8%

-12%

11%

-9%

Metro Regional

Sales growth rate by segment for Jan to Dec 2011 vs. 2010

Source: VFACTS Jan-Dec 2011 vs. 2010 (Excluding Trucks & Buses, Inc Utes)

YOY sales growth for major brands in regional – showing the appeal of newer quality imported models

-30%-25%-20%-15%-10%-5%0%5%

10%15%20%

Metro Regional

YOY unit sales growth: Jan to Dec 2011 vs. 2010


KIA Carnival Cerato Rio SorentoSportage Rondo Soul-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Kia range : Cerato was only model to grow more in regional than metro – shows rapid uptake of new models

Kia model growth rate: Jan to Dec 2011 vs. 2010

Gro

wth


Cerato

• Higher growth in regional shows strength of consumer spending and appeal of KIA new models and brand offer

• Higher share of TV budget allocated to regional (27%) proves effective

Cerato share of regional market easily outperformed metro and had highest share of budget allocated to RTV

Q1 05

Q2 05

Q3 05

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

0%

1%

2%

3%

4%

5%

$0.0m

$0.5m

$1.0m

$1.5m

$2.0m

$2.5m

$3.0m

Metro TV Regional TV Metro Regional2008 Total TV: $0.4Reg Share: 21%

2009 Total TV: $4mReg Share: 18%

KIA Cerato share of Small < $40k category sales

Sha

reT

V spend

Source: VFACTS and AdQuest




2010Total TV: $3.3mReg Share: 23%

2011Total TV: $3.5Reg Share: 27%

Small car segment growing in regional – especially with premium styled models – Focus, Mazda3, Golf & Cerato

Smal

l < $

40K

Ford

Foc

us

Holde

n Ast

ra/C

ruze

Hyund

ai i3

0

Kia

Cerat

o

Maz

da3

Mits

ubish

i Lan

cer

Nissan

Tiid

a

Toyo

ta C

orol

la

Volks

wag

en G

olf

-60%

-20%

20%

60%

100%

Metro Regional

Small < $40K: Model growth rate: Jan to Dec 2011 vs. 2010


Kia Cerato especially popular in Reg. QLD, VIC, NSW


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Kia Cerato share of Small <$40k segment sales: Jan to Dec 2011

+0.87%

+1.14%

+0.65%

+0.73%

+1.05%

+1.48%

+1.39%

+1.74%

-0.54%+0.86

%


Kia Cerato Sales – Regional sales 39% of national

SYD

BRI

PER

VIC

TAS

0 200 400 600 800 1,000 1,200

1,118

1,139

617

303

572

1,105

402

602

40

218

Kia Cerato vehicle sales: Jan to Dec 2011

YOY Change

-

+67%

+98%

+46%

+46%

+42%

+96%

+83%

+99%

-43%

+45%

Regional sales +81% YOYMetro +6%


Dealers

Carnival Grand

Cerato

Motors Corp

Optima

Rio

Sorento

Sportage

Total

75%

27%

27%

73%

26%

23%

22%

18%

24%

Metro TV Regional TV

Kia TV national spend and share into Regional TVKia TV national spend and share into Regional TV

Source: AQX

Period: January to December 2011

Total TV spend

$204k

$810k

$3.5m

$11k

$521k

$3.8m

$871k

$2.3m

$15.5m

KIA regional buyers are younger and

more affluent than average and retain

female bias

Source: Roy Morgan Research (12 months to Sep 2011- own new Kia Bought new in last 5 years)

Kia owners bought new L5Y

Metro Regional

Average age 56yrs 47yrs

Male: Female 39:61 43:57

Employed FT or PT 55% 55%

Own or paying off home 90% 86%

Own home outright 34% 34%

Household income $100k+ 24% 28%

KIA Rio

• New model growing sales rapidly• Almost half of national sales coming from regional buyers

• Proof of affluence and shift to premium of regional buyers

Kia Rio regional share growing rapidly since new model launch

Q1 05

Q2 05

Q3 05

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

0%2%4%6%8%

10%12%14%16%

$0.0m

$0.5m

$1.0m

$1.5m

$2.0m

$2.5m

$3.0m

Metro TV Regional TV Metro

Kia Rio share of light < $25k category sales

Share


TV

spend





2009Total TV: $191kReg share: 42%

2010Total TV: $969kReg share: 22%


Regional light car sales easily outperforming metro in past year – Fiesta, Micra and Swift show trend to new models

Light < $25K

Ford Fiesta

Holden Barina

Honda Jazz

Hyundai Getz/i20

Kia Rio Nissan Micra

Suzuki Swift

Toyota Yaris

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Metro Regional

Light < $25K: Model growth rate for Jan to Dec 2011 vs. 2010


Jan-Sep: Kia Rio Sales – Regional sales 43% of national

SYD

BRI

PER

VIC

TAS

0 50 100 150 200 250 300 350 400

232

346

207

118

114

375

124

173

21

69

Kia Rio vehicle sales: Sep to Dec 2011

YOY Change

-

-8%

-15%

-16%

-32%

-38%

-34%

-30%

-34%

-89%

-26%

Regional sales -41% YOYMetro -20%

Source: VFACTS Sep-Dec 2011 vs. 2010 (Excludes T&B, including Utes)

• 38% of sales from regional buyers

• Growth lagging slightly• Highly competitive segment in regional

KIA Sportage

SUV compact segment is enjoying a growth period in regional – likely to continue long term

SUV C

ompa

ct

Honda

CR-V

Kia

Spor

tage

Maz

da C

X-7

Mits

ubish

i Out

land

er

Nissan

Dua

lis

Nissan

X-T

rail

Toyo

ta R

AV4

Hyund

ai ix

35-40%-20%

0%20%40%60%80%

Metro Regional

Compact SUV: Model growth rate: Jan to Dec 2011 vs. 2010


Kia Sportage regional share of category higher than metro – responsive to RTV

Q1 05

Q2 05

Q3 05

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

0%

1%

2%

3%

4%

5%

$0.0m

$0.5m

$1.0m

$1.5m

$2.0m

$2.5m

$3.0m

Metro TV Regional TV Metro Regional

Kia Sportage share of compact SUV category sales

Share

TV

spend








Kia Sorento

• 39% of sales from regional – well above segment average

• Regional growth good but lagging metro

Medium SUV segment in regional has a bias to offroad in QLD market – still plenty of opportunity

SUV M

ediu

m

Ford

Ter

ritor

y

Hyund

ai S

anta

Fe

Kia

Sore

nto

Maz

da C

X-9

Mits

ubish

i Paj

ero

Nissan

Mur

ano

Nissan

Pat

hfind

er

Toyo

ta K

luge

r

Toyo

ta P

rado

Holde

n Cap

tiva/

7-40%

-20%

0%

20%

40%

60%

80%

Metro Regional

Medium SUV: Model growth rate: Jan to Dec 2011 vs. 2010



0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%

Kia Sorento share of Medium SUV segment sales: Jan to Dec 2011

+0.80%

+1.08%

+1.45%

+1.08%

+0.67%

+1.10%

+0.08%

+0.29%

+1.01%

-0.02%

Kia Sorento has big growth opportunity in REG. QLD


2005 2006 2007 2008 2009 2010 20110%

5%

10%

15%

20%

25%

30%

Nissan

Holden

Mit-subishi

Toyota

Mazda

Hyundai

Ford

KIA

KIA share of TV $ allocated to regional is above average – reflecting higher brand strength and increased competitive activity

Source: Nielsen Media Research AdEx (incl. Dealer spend)

Total TV spend2011

$14.6m

$31.8m

$24m

$31.5m

$17.8m

$31.3m

$29.4m

$15.5m

RTV % of national TV ad spend

• Regional car sales will grow above the national average in 2012

• KIA gets 38% of national sales from regional – maintaining share in a cost efficient market is vital

• A higher share of national TV budget could be justified to maximise growth and ROI from available funds

Strong support for regional markets is more important than ever to KIA in 2012

Kia Regional TV Market Update February 2012. RTM is the marketing bureau for Regional free to air TV.

Documents

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