The automotive market is the Cadillac Escalade of the promotional products industry: massive, and filled with $100 bills that spill out of it when you open the door (we're assuming this particular Escalade is driven by a mega-famous hip-hop artist). Or, in plainer terms: Selling to the automotive market can be ridiculously rewarding for distributors.
Much of that is due to America's nearly 200 million licensed drivers, all in need of air fresheners, license plate frames and hula-dancing dashboard figurines, among other vehicle-related products. But those are far from the only sales opportunities in the automotive market. According to the National Automobile Dealers Association, as of 2012, there were 17,540 automobile dealerships in the U.S.—an average of about 350 per state—and that doesn't include the untold number of used-car dealerships that dot strip malls nationwide.
Whatever the total number, dealerships represent a huge chunk of potential business for distributors. You just have to know how and what to sell—and for that, Gregg Emmer, chief marketing officer and vice president of Kaeser & Blair (K&B), Batavia, Ohio, had a suggestion: incentives. Read on as Emmer explains.
Print+Promo (P+P): Describe a promotion of yours that you consider one of K&B's best.
Gregg Emmer (GE): A Corvette dealership had gorgeous leather jackets done with the Corvette logo tastefully embroidered on them. They displayed Corvettes in the showroom with the jackets lying across the seats. When car shoppers asked about the jackets (most wanted to buy them) the salesman told them that they were only available to customers who purchased a car, and, in fact, they were a gift to the customer. Since competitors could match or beat the pricing, but not provide the jackets, this dealer increased sales and has continued to use the jackets as a premium.
P+P: What items were featured in this promotion, and what influenced that decision?
GE: It featured high-quality leather bomber-style jackets with left chest embroidery and the dealer imprint on the label inside the collar. The jackets had to be top retail quality to impress the customers, and the price was not an issue as it was always far less than any discount on an expensive sports car.
P+P: How was this a profitable promotion for your company? For your client?
GE: The jackets were ordered in three sizes, a few at a time. If a special size was needed it could be delivered within a week. This program ran for several years and was sold by other Kaeser & Blair dealers to similar customers in other market areas.
P+P: Did you encounter any challenges with this particular promotion? If so, how did you overcome them?
GE: The challenge was that the promotion could not be advertised and had to be experienced in the showroom to have the maximum impact. The original Corvette dealer did have salespeople wearing them in the showroom and in their TV commercials, but never actually said "free jacket with purchase," which would have cheapened the promotion.
P+P: Do you have any advice for distributors interested in selling to the automotive market?
GE: Automobile marketing of new cars is generally separated into two segments that will operate at the same time. There are zone promotions and non-zone promotions. A zone promotion is a regional or national marketing program that the brand (manufacturer) is sponsoring and the individual dealership is subscribing to (at a cost). Many times it will involve signage, promotional items and companion advertising support. Many dealerships decide not to join these zone promotions. Those that work with promotional specialty advertising distributors and salespeople to build their own unique marketing are said to be non-zone promotions. So obviously that is where you should focus your attention. Also, many dealerships want to build their own unique brand, not just promote the [brand of] cars they sell. So helping a dealership sell "Bob Smith Fords," rather than just Fords, is critical.
P+P: Is there anything you would like add?
GE: Don't forget about used car sales and automotive repair businesses. They are great customers and promotional specialty advertising works extremely well for them.