THE
COMMANDO OBSERVATION POST
03/26/02
While
the Observation Post usually addresses branding issues on a national scale, this
installment focuses on a local phenomenon that's consistent across the country--the
lack of branding in car dealership advertising.
Buying
a car is said to be the second biggest purchase, next to a home, in an individual's
life. So why are dealer ads in wild contrast to the warmth and sophistication
real estate ads project?
From
coast to coast, the Automotive sections in daily newspapers are filled with full-page
ads visually screaming for attention with giant headlines, prices, starburst violators
and goofy cartoon mascots.
The
only rationale for these garish graphics is, perhaps, to achieve the design equivalent
of the banners and balloons decorating dealer lots and showrooms.
Until
I turn up any research supporting the effectiveness of the conventional cluttered,
multi-car pile up approach to dealer newspaper ads, I can only attribute its use
to herd instinct.
Giving
credence to this assumption is the fact that upstart car seller CarMax has quickly
created a branded presence in the Automotive section that clearly distinguishes
it from the surrounding local dealership eyesores.
Ultimately, this "buy now" hysteria and the accompanying "me-too" claims of "unbeatable
deals" neutralizes the entire category into a commodity.
It's
strange how, in an image-driven field like automotive advertising, brand building
breaks down at the point of sale level.
The
task of brand building is left solely to manufacturers' ad campaigns. These beautiful
celebrations of sheet metal are clean and uncluttered in both broadcast and print.
Newspaper
versions, which dealers are allowed to tag with tiny type, generally feature a
single car occupying the space a dealership would cram with a couple dozen vehicles.
The
only down side to manufacturer's ads is that they tend to all look the same (currently
with a mandatory slammin' dance track on TV spots).
Apparently, the hope is that prospects will be so impressed by flashy national
image campaigns that only location and perhaps a personal recommendation remain
as factors in deciding where to buy a car. Never mind who's selling it.
Further contributing to the commodification of local dealerships is the control
manufacturers hold over special deals and rebates. One dealership's "unbeatable
deal" on a particular make and model is the same as a competitor's down the street.
So what's the point of shopping around?
Manufacturer's
are also calling the shots on the regional advertising level. Until the late 80's,
these promotion-driven campaigns were controlled by dealerships who contributed
a percentage of their sales to an advertising fund. While they still pool their
money in this manner, how it's spent is dictated by car manufacturers and their
national agencies.
While
this lends a element of consistency to an automobile's brand image, it further
removes dealerships from a branding mindset.
This
atmosphere of overwhelming manufacturer control has produced a generation of passive
dealerships that devoid of personality.
Some
car brands, like Land Rover, don't even allow dealerships to so much as mention
their names. They are not worthy. Dealerships are merely given the privilege of
selling the cars in a protected geographic area.
Gone
are they days of dealers like the legendary Cal Worthington. In his pioneering
TV spots, Cal, duded up in a cowboy suit, would literally stand on his head to
beat anybody's deal. He'd host late night movies from his car lot with a rotating
menagerie of animals (including a tiger) that posed as "his dog Spot."
Corny? Yes but this consistent branding effort made an indelible impression on
car buyers in Southern California. (Cal, now in his early 80s, is still producing
spots).
Besides
some direct descendants of Cal Worthington, like Chicago's Mad Max Madsen, not
many car dealers use their personalities as a branding tool any more. They're
just names on a sign or ad. Most are too timid to make any claim or embrace a
branding strategy.
The
vague marketing needs of some noncommittal dealerships are being met by auto advertising
syndicators who peddle the same bland ads around the country as templates for
dealerships to put their names on.
Other
dealerships take a tip from David Ogilvy, who said, "when you have nothing to
say, sing it." They've composed jingles that amount to little more than a recitation
of the cars they carry and their location. Name, rank and serial number.
At
least jingles, used consistently, build brand equity. All too often, dealerships
just hand off their budgets to quasi-ad agencies who are merely brokers more concerned
with buying media rather than what they're filling it with. And it shows.
Auto
dealership branding is stuck in neutral through sheer inertia. Laziness.
Things
don't have to be this way. Car dealerships are essentially retail outlets. And
as Target has skillfully demonstrated, it's possible for a retailer to promote
a diverse range of national brands without losing their identity in the process.
However,
to do so, one needs a strategy. And that's something auto dealerships don't seem
to put a lot of faith in. Or have a lot of patience with.
Apparently,
many can't think beyond the next sale. Which is a shame since they have access
to resources that can both brand them and build sales for years to come.
I'm
referring to the wealth of information in their data bases. All the people who
have not only purchased cars from them but also those who have visited their showroom
or have had service work done.
Through
mailed questionaires or phone calls, dealerships could uncover the mystery of
why people do business with them rather than the guy down the street. These insights
could reveal the foundation of a solid branding campaign.
And
once a campaign is developed, they can turn to their customers once again to measure
its effectiveness in generating and converting leads.
Besides
a source of information, a dealership's database is also a source of lasting relationships.
Generally overlooked, these can be cultivated into repeat business.
Direct mail would certainly play a part in this. But instead of using the preprinted
postcards provided by manufacturers for dealerships to stamp their names on, mail
pieces specifically promoting the dealership should be created.
Besides
service promotions, mailing pieces celebrating birthdays, holidays and other personal
events should also be part of this long term effort.
Dealerships
would do well to study the techniques of car salesman Joe Girard. (His books have
been on the market for years and should be required reading in the industry.)
While
the Detroit Chevy dealership Joe worked in was undistinguished, Joe transformed
himself into a one man brand. This guy was into permission marketing decades before
it became a catch phrase.
His
innovative sales system earned him the title "World's Greatest Salesman" by the
Guinness Book of Records for 12 years in a row (up until he retired). Talk about
excelling in a commodity market.
I'm
unaware of any dealership that has extrapolated Joe's winning system into a full
scale branding campaign. The opportunity is certainly there. Guess they're all
asleep at the wheel.