A Perfect Fit: In El Cerrito, Honda is Emblematic of a Target Demographic

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In the hierarchy of Silicon Valley cities and those that cluster around them, there is little that is remarkable about El Cerrito, California.

 

A thirty minute drive from San Francisco and shouting distance to Berkeley, the city whose name translates to “little hill” has none of the hi-tech cachet or intellectual pedigree of its neighbors.

 

But those who live here aren’t clamoring to catch up with San Francisco or the over-hyped and overpriced towns along the Peninsula.

 

They see themselves as unpretentiously liberal (unlike Berkeley where everything they do is a political statement), civic-minded, and proudly working class.

 

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{ How did Honda’s smallest car yet become so much in favor here? }

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On several recent visits, we couldn’t help but notice that everyone seems to drive the same car: the Honda Fit. On a brief 15-minute drive down El Cerrito’s San Pablo Avenue, one could easily spot 15-20 of them at a time.

 

 

El Cerrito, California was once a sleepy, working class town but has begun showing signs of being an emerging market. Honda’s El Cerrito dealership is a destination for local car buyers.

So how did Honda’s smallest car yet become so much in favor here? Was there some marketing magic at work?

 

A spokesperson says that the town was not directly targeted.

 

“We found that the buyer didn’t want another vanilla-type of car, they wanted to stand out and feel unique,” says Patrick Field, regional account director with RPA, the ad agency responsible for most of Honda’s automobile marketing.

 

Instead, the answer might be found in El Cerrito’s demographics and Honda Fit’s unique ability to satisfy how this consumer perceives themselves.

 

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{ “It’s a known fact that the older generation will buy younger-buyer-type of vehicles, but not vice versa. You don’t see Millennials getting excited about buying a Buick.” }

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With a population of just under 25,000, DataUSA pegs El Cerrito’s median age at 43.8 with a median household income of roughly $88,000.

 

The Honda Fit appears to hold a direct appeal to female consumers.

However, those we saw driving the Fit were often a good deal older, and, female. Our own cursory research wasn’t far off.

 

“Based off POLK [the automotive industry research firm] data, our largest buyer of the Honda Fit is 55-64 years old. But the initial research was conducted with a younger target in mind, 18 to 35, and those buyers had a positive reception towards the Fit concept.”

 

But as was famously the case in 2010 with the Kia Soul (and its commercial showing hip little hamsters driving the car), the intended audience became an entirely different one altogether.

 

The Soul became an instant favorite with senior citizens.

 

“The Fit is not aimed at a 43 year-old buyer but they might buy it based on the same features and benefits it provides,” says Field.

 

“The younger generation might use it to haul their drums to practice in the city and the older generation might haul their dog to the park. It’s a known fact that the older generation will buy younger-buyer-type of vehicles, but not vice versa. You don’t see Millennials getting excited about buying a Buick.”

 

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{ Honda’s strategy for the 2018 Fit emphasizes “Fit for fun” in an effort to more aggressively target Millennials. }

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Case in point, Honda’s strategy for the 2018 Fit emphasizes “Fit for fun” in an effort to more aggressively target Millennials.

 

 

The brand has introduced new colors, trims, and on-trend technology such as Apple CarPlay and Android Auto. Since 2010, Honda has seen an increase of 12 percentage points in the coveted multicultural millennial buyer.

 

In the Bay Area’s East Bay (where El Cerrito is located), the Fit and CR-Z market share is at 31.8% — nearly as high as San Francisco’s 47.9% share.

 

Maybe the answer to the Fit’s appeal lies in its three-letter name: “Fit”.

 

“Fit” conjures not only the notion of being physically fit – a notion that would certainly appeal to older as well as younger demos – but also speaks of the car’s practicality.

 

 

The name alone offers a compact message that is fitting for such a compact car. But its size belies the interior’s roominess.

 

“The reliability is very high and the resale value is tremendous,” says Larry Maxson, general manager at Honda’s El Cerrito dealership. “For what you’re spending, you’re paying a used car price for a car that’s brand new.”

 

With parking at a premium in so many Bay Area towns, the Fit manages to squeeze into spaces that are nearly Smart Car-sized. It also manages to accommodate a range of body types. Maxson notes that taller customers are amazed that they can be comfortable in such a relatively small car.

 

“Most of the people in our DMA are very middle class, so I think they’re more modest in what they are willing to buy. So there is some status to driving a Honda versus a Kia or Hyundai — you’re driving your first choice car not your second choice car.”

 

But what about the car’s apparent appeal with women?

 

“I’m not sure there’s any evidence of that, but I know what you mean.”

 

In the span of several months, we repeatedly saw female drivers versus male. Could its name – not to mention its reliability – be a factor in enticing El Cerrito women? Would a woman be more prone to buying a Fit than a CRV? No doubt Honda has some research on that.

 

Lili Polastri lives in San Francisco and chose the Fit over a Prius. “I think it’s a pretty cute car.”

Lili Polastri, a business strategy consultant living in San Francisco.

“I feel like it fits my ‘image’ and lifestyle. I’m a practical person but at the end of the day, it’s a pretty cute car. I looked at the Prius as well but the Fit definitely won out in price.”

 

Along with price, Maxson cites environmental activism as a possible subliminal reason for the Fit’s appeal.

 

That was certainly a factor for Lili. “I wanted something eco-friendly and also fuel-efficient to keep my commute cost down. it checked all of these boxes and despite being small still have a surprising amount of trunk space.”

 

“I think people have the impression that it’s a environmentally and politically correct vehicle, even if it’s not a hybrid.” says Maxson. “So for the person who maybe doesn’t want to step up and spend the extra money for a hybrid, they can still get an entry level car and something which seems environmentally friendly. It fits into that profile.”

> Learn more about the 2018 Honda Fit. Click here.

 

 

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