months

12 +27%

Surpassed revised sales projections by

When the audience you want is NOT the audience you need...

Launching the Ridgeline, Honda does two things it has never done before:

One: The company enters the highly competitive U.S. pickup truck market for the first time.

Designed as an SUT ("Sport Utility Truck”), the goal of the Honda Ridgeline is to steal market share from competitors in the large and lucrative U.S. truck category. The advertising shows the Ridgeline plowing through bogs, toting oversized payloads of camping gear, and hauling impressive loads of construction equipment. Right at home in extreme environments of hard work, mud, desert, and snow, the message is clear:

The Ridgeline is a testosterone-fueled war horse!

That’s when Honda does the second thing it has never done before: It failed.

The Problem: Interest in the Ridgeline is tepid. Dealer traffic is stagnant. Sales lag. With pressure mounting from Japan, the North American Ridgeline team is in turmoil.

The product team blames the marketing.
The marketing team wants better advertising.
Honda’s ad agency feeks that more dealer support is needed.
And the dealers? They don't like any of it!

Just about everyone feels the price of the Ridgeline is too high for the target audience, but the necessary margins can't sustain a price drop. The ad agency even proposes an expensive $150k+ / 10-week research project to study the problem, but there just isn't budget (or time) for that.

As for me? My involvement begins as it almost always does:

I am asked, "How can we fix this...fast?"

DESPERATELY TRYING TO BE SOMETHING WE'RE NOT

The first thing I notice is that Honda's strategy relies on converting a significant share of traditional pickup truck buyers to the Ridgeline. The marketing math some goes thing like this:

The top selling pickup truck in the United States is the Ford F-150.
That means, our greatest opportunity is to steal market share from the F-150.
So...let's go after their audience: 'Truck guys' in their 20s and 30s.

The REAL Problem: Poking around, however, I discover that no one has asked the most important question: "Will 25-35 year-old 'truck guys' be willing to buy the Honda Ridgeline as a replacement for the F-150?"

The intuitive answer is "No."

PRODUCT: The Ridgeline just doesn't fit this shopper's definition of a pickup truck.

While the Ridgeline's 3.5-liter engine is competitive against other V6 motors, Honda does not offer a V8 option.
Additionally, standard pickups are 'frame on body.' Instead, the Ridgeline is a 'unibody' design (think car or minivan).
These two factors alone mean that the Ridgeline's payload and towing capacity fall far short of truck guy expectations.
Moreover, the Ridgeline's 4x4 isn't true 4-wheel-drive...it's just a modified version of Honda's all-wheel drive system.
Bottom line: Without these features, the Ridgeline is a non-starter for the many shoppers who also use their trucks for work.

PERCEPTION: In the U.S., truck guys often define themselves based on the truck brands they choose.

Joe is a Chevy guy. Mike is a Dodge man. When he dies, Steve will be buried in his Ford.
So, which one of these 4-by-brothers is going to show up to the annual hunting trip driving a new Honda thingamajig?

PRICE: The standard-equipped Ridgeline carries a substantial $35k - $37k price tag.

This makes it barely affordable for the typical 30 year-old truck guy.
What's more, for the same $28k he would spend on a basic 'bare-bones' Ridgeline, our truck guy can purchase an F-150 super cab with an upgraded XLT trim package (including a V8 motor and real 4x4).

Don't get me wrong...I really like the Ridgeline. And I have tremendous respect for Honda's ability to engineer high quality vehicles.

But, for me, it's just so obvious: From product to perception to price...this younger truck guy is absolutely the wrong audience for this particular vehicle.

But, who is the right audience for the Ridgeline? And what proof do I actually have?

THE DEVIL IS IN THE DATA...

To identify the right audience for the Ridgeline, I feel our best bet is to reverse engineer our profile. That is, we need to examine (A) who is shopping for the Ridgeline and (B) who is actually buying the Ridgeline.

For this, I turn to a couple of trusted partners.

First, I go to Edmunds and Kelley Blue Book - the top auto search-sources at the time. Reviewing their raw online search data, I uncover a much different mathematical equation.

It goes something like this...

I find a small, yet powerful blip on the radar screen. There is actually a 1:1 correlation between searches for Honda's Ridgeline and the Ford Explorer Sport-Trac SUV. That is, every time a shopper searches for one of these trucks, they always shop for the other. "Don't even think about it," the Honda team members tell me. "The Sport-Trac is a piece of junk. It doesn't hold a candle to the Ridgeline! They're not even in the same class!"

But the correlation is irrefutable.

Armed with this, I set out to profile these shoppers. Since this is the launch year of the Honda Ridgeline, there is very little reliable data on Ridgeline shoppers. On the other hand, the Sport-Trac has been on the market for four years, so the information about those shoppers is pretty robust. The data tells me that the Sport-Trac shopper is (and logically, the most likely Ridgeline shopper / buyer might be) a 56-year-old male with higher income, nearing retirement, with kids in college. "No way," my Honda and agency partners warn me. "You need to stop this already...that's not our customer!"

But again, I just can't ignore the data.

Finally, I seek to understand who is actually buying the Ridgeline. For this, I collaborate with another trusted partner, Honda Financial Services (HFS) - the division of Honda that collects and catalogues all sales data (including finance applications and sales agreements...aka demographic data). The Ridgeline buyer profile is undeniable: Empty Nesters. Average age 54. Most have higher income and/or higher net worth. Nearly one-fifth are retired.

"This may not be your favorite audience," I explain, "But the Ridgeline is their favorite truck!"

The long-term consequences of focusing on this audience? We can debate that later. But if we want to reverse lagging sales now, I explain, we need to connect with these shoppers ASAP!

LEARNING MORE ABOUT OUR WOULD-BE BUYERS

This doesn't require the ad agency's $150k / 10-week research proposal, either.

Given the green light, I cut that price in half and finish in three weeks.

Using buyer email addresses from HFS, we send out a survey to our Ridgeline owners.

The surveys collect valuable information (for example: Sure enough, the Sport-Trac was the #1 competitor considered!). But they also serve as a recruitment tool - inviting Ridgeline owners to participate in personal telephone interviews (IDIs).

In the end, around 45% of the Ridgeline owners who take the survey check the YES box and are willing to offer their opinions on the phone (Honda owners are the best!).

What do we find out from the dozens of interviews we complete?

The Honda Ridgeline is an ideal mix. To these men, the Ridgeline easily fits their diverse yet specific needs. It's a truck, sure, but with a comfortable ride and plenty of upscale features: Things like a leather interior, hidden access storage boxes, a pre-lined bed, and a recessed electric rear window.

"If I could design a truck for this stage in my life," one owner tells us, "the Honda Ridgeline is exactly what I would create."

The Ridgeline buyer is transporting garden supplies, small appliances, and luggage...NOT construction equipment, boulders, or dirt bikes. To them, this is really a practical decision, enhanced by the lightweight diversity of the Ridgeline.

"I love it because I can use it to work on the house on the weekend," another owner explains, "but it's also great for a comfortable cross-country road trip."

As a result, the ad agency's adrenaline-fueled advertising has actually been an initial turn-off. The agency is right that young truck guys really dig heavy-hauling, mud-slinging advertising. But again, this really isn't the best Ridgeline audience. In fact, several owners explain that their purchase of the Ridgeline is an intentional decision to not buy a standard pickup truck. They simply don't need (nor want) that kind of macho performance.

"If I brought home a Ford F-150 4x4," a customer tells us, "My wife would tell me to take it back!"

Even the economics worked: Older affluent customers can more easily afford the more expensive Ridgeline.

A NEW APPROACH

From there...

Working with Honda's marketing department and their agencies, we transform the targeting, shift the media, and update the messaging, focusing instead on this older and more affluent audience.

Using zip-code-level Scarborough data, we even develop a U.S. map that reveals target-rich environments where concentrations of potential Ridgeline buyers live (we had found that Ridgelines were actually being shipped to dealers in much weaker markets). To my surprise, Honda actually begins diverting shipments of Ridgelines to these more target-dense markets so that dealers will have a better chance with better qualified customers (What a well run and efficient company!).

PERFORMANCE

Dealer reports – supported by data from Honda Financial Services – begin to reflect stronger foot traffic for the Ridgeline.

By mid-year, sales are starting to look up.

By year’s end, Honda reports that sales of the Ridgeline have surpassed revised projections by more than +27%.

Back to Results

months

12

+27%

Surpassed revised sales projections by

When the audience you want is NOT the audience you need...

DESPERATELY TRYING TO BE SOMETHING WE'RE NOT

The REAL Problem: Poking around, however, I discover that no one has asked the most important question: "Will 25-35 year-old 'truck guys' be willing to buy the Honda Ridgeline as a replacement for the F-150?"

THE DEVIL IS IN THE DATA...

To identify the right audience for the Ridgeline, I feel our best bet is to reverse engineer our profile. That is, we need to examine (A) who is shopping for the Ridgeline and (B) who is actually buying the Ridgeline.

For this, I turn to a couple of trusted partners.

First, I go to Edmunds and Kelley Blue Book - the top auto search-sources at the time. Reviewing their raw online search data, I uncover a much different mathematical equation.

LEARNING MORE ABOUT OUR WOULD-BE BUYERS

This doesn't require the ad agency's $150k / 10-week research proposal, either.

Given the green light, I cut that price in half and finish in three weeks.

​

Using buyer email addresses from HFS, we send out a survey to our Ridgeline owners.

The surveys collect valuable information (for example: Sure enough, the Sport-Trac was the #1 competitor considered!). But they also serve as a recruitment tool - inviting Ridgeline owners to participate in personal telephone interviews (IDIs).

​

In the end, around 45% of the Ridgeline owners who take the survey check the YES box and are willing to offer their opinions on the phone (Honda owners are the best!).

​​​

What do we find out from the dozens of interviews we complete?

​

"If I could design a truck for this stage in my life," one owner tells us, "the Honda Ridgeline is exactly what I would create."

The Ridgeline buyer is transporting garden supplies, small appliances, and luggage...NOT construction equipment, boulders, or dirt bikes. To them, this is really a practical decision, enhanced by the lightweight diversity of the Ridgeline.

​​

"I love it because I can use it to work on the house on the weekend," another owner explains, "but it's also great for a comfortable cross-country road trip." ​​

​

​​​

"If I brought home a Ford F-150 4x4," a customer tells us, "My wife would tell me to take it back!"

​

Even the economics worked: Older affluent customers can more easily afford the more expensive Ridgeline.

A NEW APPROACH From there...

Working with Honda's marketing department and their agencies, we transform the targeting, shift the media, and update the messaging, focusing instead on this older and more affluent audience.

PERFORMANCE

​

Dealer reports – supported by data from Honda Financial Services – begin to reflect stronger foot traffic for the Ridgeline.

By mid-year, sales are starting to look up.

​​

By year’s end, Honda reports that sales of the Ridgeline have surpassed revised projections by more than +27%.

"I love it because I can use it to work on the house on the weekend," another owner explains, "but it's also great for a comfortable cross-country road trip."

A NEW APPROACH

From there...