John Elway + Dealership = Success?

A close friend of mine is living smack dab in the middle of the economic challenges, playing the role of Marketing & Public Relations for a dealership. In this economy, the industry feeling it that bad would be those in construction or residential realestate.

He was kind enough to sit down and talk a bit about life in the dealership.

Interview With:

Al Wise
Director of Marketing and Public Relations
John Elway’s Manhattan Beach Toyota and Scion

MFG: Give us a run down on your position, time with company and daily duties.

Al Wise: My official position is Director of Marketing and Public Relations. I have been in this position for 1 year and I oversee all print ads including full page spreads in the LA Times, Daily Breeze, Easy Reader, etc.

I coordinate all local promotions with our cities, schools, non-profits and in-store promotions. I design banners, TV commercials for John Elway, and coordinate his appearances here in the South Bay. I also oversee the marketing budget for the dealership.

As Public relations, I am a member of 5 chamber of commerce’s, including Hawthorne, El Segundo, Manhattan Beach, Hermosa Beach and Redondo Beach. I actively attend their functions, dinners and luncheons to promote awareness of our products and location.

MFG: Toyota doesn’t seem to have the dire projections for 09 that say the Detroit Three do. What has kept Toyota somewhat stable in this economy?

Al Wise: Toyota is dealing with the same reductions in sales as the big three. We are down about 30-35% from a year ago. What makes some difference in our position is the quality of our product. Toyota is well-respected as the making the worlds’ most reliable cars. That is one reason we surpassed GM as the #1 auto maker in the world.

Toyota is also financially secure. While GM and Chrysler are basically broke, needing a government bailout and Ford is living off of a loan from 2007; Toyota has billions in reserve – enough to last many years of slowdown. In spite of the slowdown in the economy, we are not facing even the thought of bankruptcy.

Toyota does thing right the first time and makes advances when the market and technology are ready. We spend 1 million dollars every hour of every day, 365 days per year on research and development to give our clients the best products.

MFG: On a dealership level, do you feel Toyota is better positioned in this market than Ford and GM? If so, why?

Al Wise: Toyota is only better positioned than our competitors in that our customers have a very high loyalty to the Toyota brand – much higher than GM or Ford. Some of the pricier dealerships, such as BMW and Mercedes are suffering because of the cost of their cars. Toyota makes vehicles for every budget and comfort level form the cost savings Yaris ($13K) to the top of the line Land Cruiser ($70K).

During these challenging financial times, some Toyota dealers will go under, no doubt, but not nearly at the rate of the big three.

MFG: What is Manhattan Beach Toyota’s marketing niche / angle?
Why was this chosen?

Al Wise: We have a three pronged marketing niche.

1. We are a neighborhood dealership, away from the freeway. Therefore we support our local communities on a grass-roots level. We contribute to schools, chambers of commerce, non-profit organizations and city sponsored events. This embodies the psychological Law of Reciprocity – meaning, we did something nice for you, so now you should do something nice for us – like buy your next car here.
2. We have the John Elway name, which is a credible asset. When John says something, you can believe it. It also gives us an inside track to many sports fans who take note of the high profile name.
3. We have changed the culture of the dealership into a “gentleman’s dealership” as opposed to a “cut-throat dealership”.

MFG: How do you go about achieving it?

Al Wise: One of the ways in which we get out the John Elway name and support our community is to give away autographed footballs for local raffles and silent auctions. They make a huge impression and remind the community that we are here.

Another way is through our commercials on cable. I will email you two of them. The first is a rebranding commercial the second is a price-based ad meant to capitalize on John Elway’s credibility. We call it the “Believe It” campaign.

MFG:What is the sales process from the sales rep’s perspective?

Al Wise: Every sales associate engages the client using the “10 Steps To A Sale” process:

1. Meet and greet with enthusiasm
2. Sell yourself
3. Sell the dealership
4. Qualify the client
5. Land the client on a vehicle that meets their needs
6. Complete walk around of vehicle
7. Demonstration ride
8. Close the deal
9. Complete paperwork and ask for referrals
10. Department orientation and delivery

MFG: What is their focus?

Al Wise: The focus of the sales staff is two-fold – First, assisting the customer in finding the vehicle that best meets their needs and wants at a price they can afford; second, making a profit so the staff member can provide for their family.

MFG: What % of your marketing budget does it consist of?

Al Wise: Our marketing budget has, in the “good times” been as high as $100K per month. In this current economy we are spending about $35K per month in advertising from all sources. The internet budget is about 1/3 of this amount, or between $10-11K per month.

* Thank you Al for taking the time to answer a few questions and talk about life at the dealership.

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