Strictly Private & Confidential McLaren Automotive Luxury Retail Summit – September 18, 2013
Strictly Private & Confidential
McLaren Automotive
Luxury Retail Summit – September 18, 2013
Strictly Private & Confidential
Today’s Talking Points
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Who is McLaren Automotive? How did we launch a new company in a well-established marketplace. Defining McLaren Customers: Who are they?
Marketing that is most effective to reach the McLaren customer and outlets that work best The dealership network
Key Success Factors
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Who Is McLaren Automotive? McLaren Racing
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1963 – Bruce McLaren Motor Racing is formed
1968 – Maiden F1 Victory in Belgium Grand Prix
1970 – Bruce McLaren killed in testing accident at Goodwood
1972 – McLaren wins Indianapolis 500
1974 – First Formula One Drivers' and Constructors‘ Championship win
1980 – McLaren Racing is formed with Ron Dennis as Managing Director
1986 – McLaren Marketing is formed
1989 – McLaren Cars is formed
1989 – McLaren Electronic Systems is formed
1995 – Debut win at Le Mans 24 Hours
2004 – McLaren Applied Technologies is formed
2011 – McLaren Production Centre opened
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Only race team to win Formula One, Indianapolis 500, Can-
Am and Le Mans championships
3 Titles 5 Titles 1 Title
Constructors
Champions
Drivers
Champions
8 Titles 12 Titles
Indy 500
Champions
Can-Am
Champions
1998 McLaren
Mercedes
1991
1990
1989
1988 McLaren Honda
1985
1984 McLaren TAG-
Porsche
1974 McLaren Ford
1976 J. Rutherford
1974 J. Rutherford
1972 Mark Donohue
1971 Peter Revson
1970 Denny Hulme
1969 Bruce McLaren
1968 Denny Hulme
1967 Bruce McLaren Y.Dalmas,
JJ Lehto,
M.Sekiya
1995 E Fittipaldi
James Hunt
Niki Lauda
Alain Prost
Ayrton Senna
Alain Prost
Ayrton Senna
Mika Hakkinen
Lewis Hamilton
Le Mans
Champions
1998
1991 1990 1989 1988
1986
1984
1974
1985
1976
1999
2008
Who Is McLaren Automotive? Our Heritage
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Who is McLaren Automotive? Timeline
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Established as McLaren Cars in 1989 to produce leading
edge vehicles leveraging all of the experience and
technology available to the McLaren Group.
The company's debut vehicle, the iconic McLaren F1
road car, was produced in 1994 and was until recently the
fastest-ever production road car.
In 1999 McLaren Automotive entered into an agreement
with Daimler to design, develop and manufacture the
Mercedes-Benz SLR McLaren sports car which was
launched in 2003.
McLaren Automotive was re-launched in 2011 and
continues to design and build new products having launch
the McLaren 12C (2011), 12C Spider (2012) and the
McLaren P1TM (2013).
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Who is McLaren Automotive?
McLaren Technology and Production Centres
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Who is McLaren Automotive? McLaren Technology Centre
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Who is McLaren Automotive? McLaren Production Centre
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McLaren Automotive: The launch of the company
EVOLVING AN F1 COMPANY INTO A ROAD CAR BUSINESS
TRANSITION THE BRAND
DESIGN, DEVELOP, TEST & PRODUCE SET UP A GLOBAL DISTRIBUTION
DEVELOP THE INFRASTRUCTURE
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Started with a clean sheet of paper
Created a distinct identity… being different / unique in every aspect
Don’t reinvent the wheel…..instead refine it
Leverage McLarens racing history and heritage
Leverage McLarens history as innovators
Built a strong experienced internal team
Strategically selected the best dealership partners in the key markets
Think outside the box. Adaptable and open to changing directions
Put egos aside
Learned from mistakes. Quickly!
Remain Humble
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McLaren Automotive: How did we launch?
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Typically male
High Net Worth Income individuals with annual incomes exceeding $1M
Typically in the age range of 40-65
Sports car enthusiasts having owned other sports cars
Executives of Entrepreneurs
Racing enthusiasts both fans and participants
Fan of the brand
Defining Current Customers Who are they?
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Superior Performance / Superior Handling
State of the art Technology
High level of Quality / Reliability
Solid / strong brand name. Longevity in the market.
The product to be in High demand. Highly sought after. Difficult to obtain
Considered prestigious and luxurious
Strong Residual Value
Purchase must be validated
Product will represent a gift for oneself
Defining Current Customers What do they expect?
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2010
LUXURY
LIFESTYLE
BUYERS
Global supercar brand
2015
FUTURE BUYERS
Global luxury brand
2020
AUTOPHILES
A racing company that makes sports
cars
Customers Future Vision
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THE PATH TO OWNERSHIP IS PAVED BY AN ONGOING BRAND AND PRODUCT DIALOGUE.
AWARENESS CONSIDERATION OWNERSHIP - MEDIA (ALL) - DRIVE EXPERIENCE - PURCHASE RATIONALIZATION - AUTO SHOW - PRODUCT RESEARCH - FAMILY/PEER APPROVAL - ADVERTISING - PERSONAL INTERACTION - TANGENTIAL BENEFITS - DISPLAY - OWNER ENDORSEMENT - SERVICE SATISFACTION - EVENT EXPERIENCE - COST/VALUE EVALUATION - RESIDUAL VALUE - WEB/SOCIAL - LIFESTYLE/FUNCTIONAL FIT - EVANGELISM
OBJECT OF AFFECTION “NICE TO HAVE”
OBJECT OF DESIRE “HAVE TO HAVE”
GUIDING PRINCIPLE:
Effective Marketing Strategic Approach
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Exposure and Brand Awareness
Distinguish the brand
Highlight the desirability of the product / brand
Identify targeted prospects
Become a consideration and understand the barriers
Keep events exclusive
Quantify our events
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Effective Marketing Goals
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Multi-market driving program DRIVING EVENT
EVENT : ROAD AND ON-TRACK DRIVING PROGRAMS
MARKET REACH: MAJOR METRO’S THROUGHOUT NORTH AMERICA
ATTENDANCE: 500-800 EST. GUESTS (+ MEDIA)
GOALS:
DEVELOP A DRIVING PROGRAM TO GET PROSPECTIVE CLIENTS BEHIND THE WHEEL
PROFESSIONAL DRIVERS HIGHLIGHT THE KEY PERFORMANCE FEATURES OF THE
VEHICLE
CO-FUNDED BETWEEN RETAILERS AND MCLAREN NORTH AMERICA
HIGH ROI EXPECTATIONS; FORMAL FOLLOW-UP PROCESS VIA SURVEY AND BY RETAILERS
Summary:
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Event dates: Friday & Saturday, Aug. 16-17
Fleet: Two units – 12C Spider
Total prospect drives: 34
Surveys: 27 (79% responder rate)
Hot Leads: 10 (37% of respondents requested post-event dealer contact)
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P1 Preview / Unveil Events
LIFESTYLE /INFLUENCER EVENT
EVENT : SMALL RECEPTION UNVEILS
MARKET REACH: NATIONAL
ATTENDANCE: 471 (+ MEDIA)
GOALS:
INVITATION EVENT EXCLUSIVE TO CLIENTS AND PROSPECTS
OPPORTUNITY TO HAVE PRIVATE APPOINTMENTS
EVENT MUST BE HELD IN AN EVENT SETTING THAT IS DESIRABLE TO OUR DEMOGRAPHICS.
BUILD BRAND AWARENESS AND CREATE ANTICIPATION
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Neiman Marcus Owner MTC Experience LIFESTYLE /INFLUENCER EVENT
EVENT: NEIMAN MARCUS CHRISTMAS CATALOG
MARKET REACH: GLOBAL
VEHICLES OFFERED: 12 MCLAREN 12C NEIMAN MARCUS EDITION SPIDERS
GOAL:
NEIMAN MARCUS CHRISTMAS CATALOGUE MOST ANTICIPATED GIFT GUIDE OF THE
YEAR (CIRCULATION 1,100,000)
PROVIDE A LIMITED / SPECIAL EDITION THAT WILL BE HIGHLY SOUGHT AFTER
EXPOSURE AS A THE TODAY SHOW FEATURE
RETAILERS TO UTILIZE THEIR MARKET NEIMAN MARCUS STORES FOR IN STORE
VEHICLE DISPLAYS
RESULT: ALL 12 NEIMAN MARCUS EDITION VEHICLES SOLD IN LESS THAN AN HOUR
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Movie Premiers LIFESTYLE /INFLUENCER EVENT
EVENT: SPECIAL ADVANCE SCREENINGS
MARKET REACH: UNITED STATES
TYPE OF EVENT: BRAND HERITAGE / PIGGY BACK MARKETING
GOAL:
LEVERAGE MCLARENS RACING HERITAGE TO FURHTER BUILD NATIONAL BRAND
AWARENESS
LEVERAGE THE HISTORY TO HIGHLIGHT THE SUCCESS AND SUSTAINABILITY OF THE
BRAND
ATTRACT MAIN STREAM LIFESTYLE EXPOSURE
HIGLHIGHT THE ‘COOL’ FACTOR
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McLaren received a tremendous amount of PR during the E3 Video Game Conference.
Unveil at Xbox briefing: As a surprise, P1 rose from the floor during the Forza briefing. The event was broadcast on Xbox Live and Spike TV. E3 Conference: P1 was displayed in Xbox’s stand. Microsoft Executives also drove 2 – Forza branded 12C Spiders during the conference. Wednesday: We brought the 12C to CarCast, Adam Carolla’s Podcast (the #1 rated podcast). Working with Xbox to help coordinate a commercial using the 12C Spider. The P1 will be featured in all in-store promotional assets.
Effective Marketing Partnerships
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Working on commercial with the 12C for an upcoming Xbox/Forza commercial
Behind-the-scenes series to appear on Gawker
Another commercial being shot for Xbox being shot with P1 to be aired in a mass media buy pre-Christmas
Effective Marketing Partnerships
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Coupe: March This was McLaren’s first time on Top Gear America. The concept was bringing the British import to an American audience and they decided to do this by showcasing it with a Nascar race car and inviting Carl Edwards to drive. Carl Edward is to Nascar what Jenson Button is to Formula One. The show aired in March and received 1.6 million viewers
Spider: September Each host got to choose which car he would most like to drive across the country and Tanner choose the 12C. This will be the season opener show which is often the most watched show.
Effective Marketing Televison Coverage
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Effective Marketing Lifestyle Press
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Effective Marketing Automotive Press
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Strategically select the best long-term dealership partners. Selection process is critical.
Avoiding adding dealership points in order to achieve a short term sales objectives.
This cannot be reversed.
Our role is to help support the dealership network but a two way relationship is needed
Be fair but tough, be prepared to make unpopular rules / policy. Make rules / policy based upon what is best for the brand and the market not ego
Believer in objective based support and supporting those that support the company.
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Role of Franchise Dealerships Representing the Brand
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Perception is reality
Demand exceeding supply. Wait-lists.
Exclusive without arrogance. Must be engaged and accessible.
Unlike other industries the secondary market plays a key role in the success of the brand
Brand must have the ‘cool factor’
Unprecedented level of customer service
Fewer but targeted events. Target marketing more important than mass marketing
Influencers are important but they can also be positive one day and negative the next.
Blogs can create rumors and speculation. Negative press spreads faster than positive press
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Key Success Factors Principals
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TELLS A THOUSAND STORIES HAS A THOUSAND STORIES TO TELL
Key Success Factors Brand Image
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What is next? Watch this space…
www.cars.mclaren.com