Automobile Industry Analysis

Auto Industry Analysis
AEM 4550 PRESENTATION
JON CULLOM ▪ GEORGINA HUDJA ▪ JUNE LIU ▪ LUCIA VILLANI

Agenda
INTRODUCTION
INDUSTRY ANALYSIS
ADVERTISING STRATEGIES
CASE STUDY
RECOMMENDATIONS
Why Automobile Industry?
•  2nd largest industry in terms of ad •  New technologies

expenditures after retail
•  New players
•  Recently invigorated by boost in economy -  Hybrid cars (Tesla, Prius)
-  Low gas prices -  Autonomous cars (Google Car)
-  Low interest rates
-  Shifting consumer preferences
INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

Industry Analysis
Automobile History
•  Late 1880s: Blueprint for modern automobile perfected in Germany & France
•  In US, Henry Ford innovates mass production techniques

•  1908: Ford’s Model T debuts
•  Acceptance of the automobile by the average American
•  1920s: Ford, GM, Chrysler become the “Big Three”
•  Industry plays critical role in producing military vehicles for WWI & WWII
•  1970s: Oil Crisis leads to rise of German & Japanese fuel-efficient compact
vehicles
•  1980: Japan becomes leading automaker

Industry Overview
Major Products Industry Facts
Luxury Cars Revenue: $119.1 billion

5%
Profits: $3.9 billion
Large Cars Exports: $52.1 million

16% Imports: $184 million
Compacts &
Subcompacts
45% # of Companies: 175
Employment: 75,127
Midsize Wages: $6 million
Sedans
34%
Domestic Demand: $251 million

Supply Chain
Bodies
Supplying
Manufacture & Body
Industries
stamping of assembling
body panels & paining
Steel and other
metals Components
Rubber
Manufacture of mechanical & electrical Final Consumer
Electronics components (wheels, tires, seats, breaking Assembly Market
systems, windshields, exhausts, etc.)
Plastic
Engines & Transmissions
Glass
Forging & casting of Machining & assembly
Textiles
engine & transmission of engines &
components transmissions

Major Markets
Key Economic Drivers Breakdown of Major Markets

50.0%
•  Consumer Confidence Index 45.0%

43.7%
Share of Automobile Industry

40.0%
•  Demand from new car dealers
35.0%
•  World price of crude oil 30.0%
•  World price of steel 25.0%
26.1%
20.0%
•  Currency exchange rates
15.0%
10.0% 12.2% 11.5%
5.0% 6.5%
0.0%
Exports Dealers Rental Wholesalers Government
Companies

Global Major Players
Overview Market Share
General Motors Corporation (13% global, 16.5% US):
•  Brands: Chevrolet, Chevy, GMC, Buick, Cadillac General
•  Focusing on alternatively fueled vehicles (Chevy Volt) Motors
13%
•  Narrowed brand portfolio to focus on marketing &
design
Ford
Ford Motor Company (12% global, 15.1% US): 12%
•  Brands: Ford and Lincoln
•  One Ford Initiative: streamlined design & production Other Toyota
51% 10%
(Ford Focus and Fiesta)
•  Relied too heavily on trucks & SUVs Honda
8%
Fiat Chrysler
Toyota (10% global, 13.8% US): 6%
•  Brands: Toyota, Lexus, Scion
•  Toyota Prius: first mass-produced hybrid gasoline- Based on global revenue
electric car

Competitor Analysis
Company Headquarters Market Cap Ad Expenditures Revenues Ad-to-Sales
Detroit, MI $51.04B 3.50B 152.00B 2.30%
Dearborn, MI $44.56B 2.68B 149.60B 1.79%
Aichi Prefecture, Japan $147.29B 2.25B 239.10B 0.94%
Minato, Tokyo, Japan $47.86B 1.80B 121.29B 1.48%
Turin, Italy $15.16B 1.14B 110.60B 1.03%

Competitive Landscape
Internal External
•  Medium and increasing •  Primary substitute is SUV & Light Trucks
•  CR4: 42.4% C4=w1+w2+w3+w4, where wi = Si/ST •  Alternative forms of transportation

•  Walking
•  HHI: ~650 HHI = 10,000 x Swi^2, where wi = Si/ST •  Biking
•  Motorcycles
•  HHI is less than 1,000 ! competitive market •  Railroad
•  Bus
•  High foreign competition •  Ride sharing
•  Japan
•  Europe

Industry Barriers
Barriers to Entry Regulations
•  Medium and steady

•  Strict regulatory standards
•  High level of capital requirement
•  National Traffic and Motor Vehicle Safety Act
•  Rapid technology change
•  Federal Motor Vehicle Safety Standard
•  Sophisticated facilities
•  EPA emission standards
•  Robust supply chains, distribution channels
•  Corporate Average Fuel Economy
•  High R&D costs
•  Brand awareness

Global vs. United States Market
MexicoExports To… Imports From…
[PERCENTA
GE]
Mexico
13%
Germany Canada
13% Other 26%
36% Germany
14%
China
[PERCENTA
GE]
Japan Other
23% 24%
Canada
28%
Top US-based exporters: Top importers in US market:

Ford, GM, Chrysler Toyota, Honda, Nissan, Volkswagen

Product Differentiation
Characteristics Perceptual Map
High Price
Price
Fuel economy
Reliability
Low Quality High Quality
Styling
Utility
Brand
Low Price

Brand Equity
Top 5 Most Valuable Car Brands Findings
•  Most are also in top 5 largest brands

35
30 •  Very well-known, established brands

25
•  Represent both luxury and budget
20 brands
$BN
15
10
0
Toyota BMW Mercedes-Benz Honda Ford

Brand Equity
Leaders in Brand Equity Growth Why?
60
•  Ford has 67% growth in China
% Change in Growth
50
•  Audi releases the A4 and S4 with huge
40 success
30 •  Toyota Corolla becomes world’s best

selling vehicle
20
10
•  Mercedes CLS December dominates
Christmas season
0
Ford Audi Toyota Mercedes-Benz Hyundai

Investor Lenses - Industry Value
•  Auto industry transforming into the “mobility” industry
•  Venture Capital Firms are investing in technologies including solar energy
•  Huge valuations of companies like Tesla, Uber, and Mobileye
•  More VC firms invested in automotive startups in 2014 than in the previous four years combined
•  Meanwhile, startups are often wary - investor may become a competitor
•  Google’s venture investment in Uber
Because self-driving cars need mapping

Ford Motor Co. putting seed money into 3D mapping startup Civil Maps to push forward self-driving cars
The $6.6 million seed round was led by Motus Ventures and others

Manufacturer vs. Dealer Commercials
Manufacturers Dealers
•  Greater focus on brand advertising •  Tend to use price advertising
•  Branding messages and product characteristics: •  Deals: “$2,000 rebate” or “Labor Day sales
“Ford Tough” or “V-8 engine” event”

Industry Future
Trends Opportunities
•  Alternative fuels •  Fuel efficient vehicles
•  More environmentally friendly •  Reducing material costs
•  Improved safety •  New ownership models
•  Wireless device integration •  Ride-sharing
•  Vehicle cybersecurity •  Autonomous vehicles

Advertising Strategies
Industry Ad Expenditure
Industry Data Top 3 Competitors in Ad Spend

•  $44B Advertising Exp. in 2015
•  Growing at 2.8% annually
•  Volkswagen leading industry with $6.6B in 2017 Ad-Sales (2015):
0.56%
Ad-Sales Ratio Trend
2011 2012 2013 2014 2015 0.57%

.47% .36% .63% .43% .31%
•  Low and decreasing overtime 1.79%

•  Average sales has been increasing while average ad
expenditure has been decreasing
•  Could be due to more efficient advertising

Advertising Mediums
Auto Manufacturer Ad Spend Share, By Medium
Television
Directories
•  Remains biggest medium in the U.S Radio
•  Increased from $3.9 billion in 2014 to Telemarketing

$4.84 billion in 2015 OutdoorCinema
Direct mail
Digital Media Other print
•  $3.4 billion in mobile advertising in 2015 Newspapers
Cable
•  $1.1 billion in digital video advertising in
Broadcast TV
2015
Online
•  Expected to grow to $5.3 billion by 2021 0% 10% 20% 30% 40% 50% 60%
2015 2014

C O M P L E M E N TA RY
C O M PA R A T I V E
INFORMATIVE
CELEBRITY ENDORSEMENT
SPONSORSHIPS
PRODUCT PLACEMENT
Volkswagen Recall
•  Sept 3, 2015: VW Admits to installing a “defeat device” to bypass emission controls
•  Sept 18, 2015: EPA concludes that VW violated the Clean Air Act
•  Sept 22, 2015: VW announces that roughly 600K domestic automobiles have defeat device; company sets
aside $7.3BN to cover cost of cars
•  June 26, 2016: VW announces a settlement of $14.7BN; plan to take 85% of affected vehicles off the road
Sept 4, 2015: 162.2

Oct 2, 2015: 92.36

Interest Over Time
Google Trends: Interest in “Volkswagen Recall” from August ‘15 to Sept ‘16

Aftershock and Rebound
•  VW brand equity falls over $10B in September from $31B to $21B
•  VW increases advertising to save failing brand

•  End of 2015: $6.6B in ad spending
•  Feb 2016: 60 second spot on keeping promises & detailing 40 years of VW vehicles
•  Dec 2016: Release Golf Alltrak and Atlas Sport-Utility contributed to 20% increase in
US sales
•  In 2016, US sales fall 8%, but North America sales only fall 1.9%
•  Today: VW shares stand only 15 points below pre-scandal shares
•  Many attribute resurgence due to advertising spending and focus on brand’s history

Top 5 Companies (2014 Primetime Data)
Primetime Ads Ad Expenditure
800 140
700
$ Spent On Ads (millions)

120
# of Ads
600
100
500
80
400
60
300
200 40
100 20
0 -
Ford Chevrolet Volkswagen Honda Toyota Chevrolet Volkswagen Ford Toyota Cadillac
*trend line=industry average for

top 25

Category Analysis
# of Advertisers by Category Prime Time Ads by Category
4000
Asian Advertisers 11 3500
# of Ads
Domestic Advertisers 7 3000
European Advertisers 7
2500
2000
1500
Explanation
1000
•  ~57% more Asian companies 500
•  European brands tend to be luxury, 0

Asian Factory Domestic Factory European Factory
which advertise less often

Network Analysis for Industry
Primetime Ads $ Spent on Ads
2500
450
400
2000

350
# of Ads
300
1500
250
1000 200
150
500 100
50
0 -
ABC NBC CBS FOX CW NBC FOX CBS ABC CW

Network Analysis for Top Brands
300
60
250
50
$ Spent on Ads (millions)

200
40
Ford
# of Ads
150 Ford
Chevrolet 30
Chevrolet
Toyota
100 Toyota
20
50
10
0 -
ABC CBS FOX NBC CW ABC CBS FOX NBC CW

Breakdown of Program Types for Industry
Professional
Football
Games
5%
Olympics
Suspense 7%
& Mystery Situation Professional
9% Drama & Comedy Football Games
Adventure 12% 24%
Situation 31%
Comedy
15%
Slice of Life
16%
Other
Slice of Life 21%
19% Other Drama &
21% Adventure
20%

Breakdown of Program Types for Top Brands
Chevrolet Ford Toyota
Police &
Police & Suspense News Magazine
Suspense
7% 4%
6%
Other
11%
Olmypics Other Drama &
Drama & Police &
8% 7% Adventure
Adventure Drama & Suspense
30% 29%
Adventure 11%
37%
Situation Comedy
11% Situation Professional
Comedy Football Game
20% 12%
Slice of Life
21% Situation Slice of Life
Other 21%
Comedy
23% Slice of Life 16%
26%
*based on # of ads

Top 5 Programs for Industry
200 140
180
120

160
# of Ads
140 100
120
80
100
80 60
60
40 40
20 20
0
Sunday Voice Shark Tank Winter America's 0
Night Olympics Got Talent Sunday Night Winter Superbowl Voice American
Football Football Olympics XLVIII Idol

Top 5 Programs for Top Brands
60 Chevrolet 60 Ford
50 50
# of Ads
40 40
# of Ads
30 30
20 20
10 10
0 0
Hawaii Winter Bachelorette American Extreme American Amazing Amazing Simpsons New Girl
FIve-0 Olympics (ABC) Ninja Weight Loss Idol (FOX) Race 25 Race All (Fox) (Fox)
(CBS) (NBC) Warrior (ABC) (CBS) Stars (CBS)
(NBC)
50 Toyota
40
# of Ads
30
20
10
0
Sunday Night Shark Tank Law & NCIS (CBS) 60
Football (ABC) Order: SVU MINUTES
(NBC) (NBC) (CBS)

Month-by-Month Analysis for Industry
Pulsing Media Strategy $ Spent on Ads
250
•  Highest in spring & fall

200
•  Ad spend peaks at premiere and 150
finale of TV shows
100
•  Exception is February for 50
Superbowl
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month-by-Month Analysis for Top Brands
# of Ads Findings
140
120
100 •  Ford has more ads &
Ford
# of Ads
80 spends more during

60 Chevrolet beginning of year
40
Toyota
20
0
•  Chevrolet has highest peak
Jan Feb March April May June July Aug Sept Oct Nov Dec in ad spend in Feb, but
highest peak in ad # in July
50
$ Spent
40 •  Toyota advertises more

Ford frequent and spends more
30
towards end of the year
20 Chevrolet
10 Toyota
0
Jan Feb March April May June July Aug Sept Oct Nov Dec

Common Characteristics Of Ads
Nature of Advertisements Focus of Advertisement
# of Ads
# of Ads
0 2 4 6 8 10 12 14
0 2 4 6 8 10 12
Humor 12
Experience 11
Celebrity 8
Features 9
Serious 6
Handling 7
Adventerous 6
Safety 3
Luxurious 6 Fuel 3
Other 1 Comfort 3

Case Study
Budget vs. Luxury
Budget Luxury
Low Medium High Low Medium High
Persuasive Persuasive
Complementary Complementary
Informative Informative
Combative Combative
Comparative Comparative
Memory Jamming Memory Jamming

Brand Status
Budget Luxury
•  Search good •  Experience good
•  Low social prestige •  High social prestige
•  Focus on •  Signaling efficiency effect

•  Product Features
•  Safety •  Focus on driving experience and comfort
•  Warranty
•  Discount
•  MPG

Budget vs. Luxury Ads
Explanation Differences in Ad #
800
•  4 largest companies own luxury & budget brands
700
# of Primetime Ads
600
•  All companies advertise their budget brands
more frequently 500
400
•  Smaller, more specific target market for luxury 300
cars as fewer people can afford them 200
100
•  TV may not be an effective means of advertising
0
for luxury car brands, so it is used less often

Mercedes vs. Mazda

Company Mission
Mercedes Mazda
“Our main business objective is to be the best provider for “We love cars and want people to enjoy fulfilling lives
technical accessories and collection. With innovative and high through cars. We envision cars existing sustainably with the
quality products, we ensure sustainable economic growth and a earth and society, and we will continue to tackle challenges
constant contribution to the group’s success.” with creative ideas.”

Advertising Strategies
Mercedes Mazda
Average Price: $60 – 80K Average Price: $17 – 30K
•  Targets upper-class, middle aged drivers •  Middle-class, family oriented drivers
•  Uses complementary advertising & social prestige •  Generation Y & younger professionals
focusing on design and style
•  Usually only car owned by consumer
•  Now, segments untapped Millennial and
Generation X target audience •  Uses mostly informative advertising focusing on
durability and safety features
•  Wants to target younger consumer segment
without losing brand prestige •  Common features include built-in tailgate remote
control, one-touch fast recline backseat, &
•  Introduce new models & product lines adjustable trunk space partition

Ad Expenditure
Expenditure Ad Creative
30
25
# of Unique Ad Creatives
Mercedes Mazda
20
# of Ads 201 438
15
$ Spent $43,096,000 $56,228,100
10
$/Ad $214,408 $128,374
5
$/Second $7,147 $4,269
0
Mercedes Mazda

Networks and Programs
Top 5 Programs for Mazda Primetime Ads by Network

180
1.  Following (Fox)
2.  Hell's Kitchen (Fox) 160
3.  Shark Tank (ABC) 140
# of Primetime Ads
4.  America's Got Talent (NBC) 120
5.  Thursday Night Football (CBS) 100

80
60
Top 5 Programs for Mercedes 40
1.  Sunday Night Football (NBC) 20
2.  NCIS (CBS) 0
3.  Blacklist (NBC) ABC CBS FOX NBC
4.  Dancing with the Stars (ABC) Network
5.  Person of Interest (CBS)
Mazda Mercedes Benz
* Measured by ad #

Program Types by Ad Number
Mercedes Mazda
Police/ Sports Related
Suspense 4%
Other 6%
6%
Comedy
11% Other
Drama
35% 10% Drama
35%
Slice of Life
12%
Comedy
17%
Police/
Suspense
12% Slice of Life
Sports Related
24% 28%

Month-by-Month Analysis
80
# of Ads
Findings
60
# of Ads
40 Mercedes
•  For most months, Mazda
20
Mazda spends more and advertises
more frequently
0
•  Exception is end of
summer
12
$ Spent
•  Both show pulsing pattern
10
$ Spent (millions)
8
6 Mercedes
4 Mazda
2
0

Mercedes

Mazda

Recommendations
Recommendations For Case Study
Mercedes Mazda
•  Increase high tech features: •  Develop Brand Equity –
•  Vehicle cybersecurity reliability, loyalty
•  Advertise as fun, young, •  Tap into alternative fuels

energetic for the Millennials
and Gen X targets •  Two fold strategy to target
millennials
•  Position car as aspirational •  Promote safety features
•  Mother, Father for parents/guardians
•  Position Mazda as reliable
first car

Recommendations For Industry
•  Advertising Mediums:
•  Look to increase advertising on channels watched by demographics with rising purchasing power
•  Univision/Telemundo over top 5 channels
•  Suspense & Mystery Programs are underserved- increase adv. for luxury automobiles with new, exciting features
•  Advertising Differentiation:
•  Primetime is saturated; look to break through clutter with politically, socially, or economically relevant ads
•  Audi, 84 Lumber
•  Comfort is an underserved advertising focus; increase advertising targeted to families and luxury consumers
•  Recovery:
•  Widespread advertising can be used to combat scandals or product deficiencies
•  Underscore brand history/product relevance to reposition product in consumers’ perceptual maps
•  Sacrifice short term sales for long term strength of brand image/equity

Conclusion
Mature market with several major players
Strong need to differentiate to stay ahead of competition
New trends and opportunities to tap into
Target younger generations by

utilizing digital advertising &
by developing new technologies

Thank You, Questions?

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Auto Industry Analysis

AEM 4550 PRESENTATION

JON CULLOM ▪ GEORGINA HUDJA ▪ JUNE LIU ▪ LUCIA VILLANI

• 2nd largest industry in terms of ad • New technologies

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

• In US, Henry Ford innovates mass production techniques

• 1920s: Ford, GM, Chrysler become the “Big Three”

• 1980: Japan becomes leading automaker

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

Luxury Cars Revenue: $119.1 billion

Large Cars Exports: $52.1 million

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

Key Economic Drivers Breakdown of Major Markets

• Consumer Confidence Index 45.0%

Share of Automobile Industry

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

Detroit, MI $51.04B 3.50B 152.00B 2.30%

Dearborn, MI $44.56B 2.68B 149.60B 1.79%

Aichi Prefecture, Japan $147.29B 2.25B 239.10B 0.94%

Minato, Tokyo, Japan $47.86B 1.80B 121.29B 1.48%

Turin, Italy $15.16B 1.14B 110.60B 1.03%

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

• Medium and increasing • Primary substitute is SUV & Light Trucks

• CR4: 42.4% C4=w1+w2+w3+w4, where wi = Si/ST • Alternative forms of transportation

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

• Medium and steady

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

Top US-based exporters: Top importers in US market:

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

• Most are also in top 5 largest brands

30 • Very well-known, established brands

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

30 • Toyota Corolla becomes world’s best

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

Because self-driving cars need mapping

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

• Greater focus on brand advertising • Tend to use price advertising

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

• Alternative fuels • Fuel efficient vehicles

• More environmentally friendly • Reducing material costs

• Improved safety • New ownership models

• Wireless device integration • Ride-sharing

• Vehicle cybersecurity • Autonomous vehicles

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

Industry Data Top 3 Competitors in Ad Spend

Ad-Sales Ratio Trend

2011 2012 2013 2014 2015 0.57%

• Low and decreasing overtime 1.79%

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

• Increased from $3.9 billion in 2014 to Telemarketing

• $3.4 billion in mobile advertising in 2015 Newspapers

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

Sept 4, 2015: 162.2

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

• VW increases advertising to save failing brand

• Today: VW shares stand only 15 points below pre-scandal shares

INDUSTRY ANALYSIS | ADVERTISING STRATEGIES | CASE STUDY | RECOMMENDATIONS

Primetime Ads Ad Expenditure

$ Spent On Ads (millions)

•  2nd largest industry in terms of ad •  New technologies

•  In US, Henry Ford innovates mass production techniques

•  1920s: Ford, GM, Chrysler become the “Big Three”

•  1980: Japan becomes leading automaker

•  Consumer Confidence Index 45.0%

•  Medium and increasing •  Primary substitute is SUV & Light Trucks

•  CR4: 42.4% C4=w1+w2+w3+w4, where wi = Si/ST •  Alternative forms of transportation

•  Medium and steady

•  Most are also in top 5 largest brands

30 •  Very well-known, established brands

30 •  Toyota Corolla becomes world’s best

•  Greater focus on brand advertising •  Tend to use price advertising

•  Alternative fuels •  Fuel efficient vehicles

•  More environmentally friendly •  Reducing material costs

•  Improved safety •  New ownership models

•  Wireless device integration •  Ride-sharing

•  Vehicle cybersecurity •  Autonomous vehicles

•  Low and decreasing overtime 1.79%

•  Increased from $3.9 billion in 2014 to Telemarketing

•  $3.4 billion in mobile advertising in 2015 Newspapers

•  VW increases advertising to save failing brand

•  Today: VW shares stand only 15 points below pre-scandal shares

•  European brands tend to be luxury, 0

40 •  Toyota advertises more

•  Low social prestige •  High social prestige

•  Focus on •  Signaling efficiency effect

•  Targets upper-class, middle aged drivers •  Middle-class, family oriented drivers

•  Advertise as fun, young, •  Tap into alternative fuels