Customer Needs Drive Motor Vehicle P-O-P

The days when customers walked into auto showrooms and were bombarded with banners, balloons and loud "Buy Now!" signs seem to be over. But that doesn't mean P-O-P materials aren't being used. Instead, many automakers are moving to more permanent, flexible merchandising pieces that produce longer-term value for dealers. They are also keeping an eye on how the Internet may change how they supply in-store information to their customers."There's a new trend toward upscale images and to cleaning up the look of the showroom to make it a more friendly atmosphere," says Norman Miglietta, an advertising specialist with Subaru of America, Moorestown, N.J. "Making the process more comfortable is the key to what's going on. Some dealers are adding playrooms to keep kids busy, an Internet area to do research, or quiet areas so husbands and wives can talk privately. That affects what P-O-P materials we use in the showroom."Automakers face a P-O-P challenge that's almost unique among product marketers. Most customers come in looking for a specific product. There are no impulse sales (except for an occasional options package). There are few products on the "shelves." Comparing competitive products between makers means driving to another location."People today have done a lot of research before they come to the showroom," says Miglietta. Whether that information comes from the library, brochures or the Internet, they aren't looking for features and benefits when they walk in, he explains. "When they arrive, they want to see the car and touch it. They don't need information overload."To keep the selling floor in tune with that, Miglietta says Subaru just put its showrooms through their first overall update since the mid-1980s. The company eliminated the bright chrome sign stands and big towers and replaced them with subtler pieces using wood highlights and brushed aluminum. "We wanted an upscale, clean look," he says.That's also the approach taken at Chevrolet, says Gene Reamer, assistant manager for national advertising. "Over the last few years, we've gotten rid of a lot of stuff that doesn't work in dealerships any more, like danglers and temporary pieces." To replace them, the car maker introduced its Image 2000 program several years ago. It presents "a clean, professional, upscale look that's uncluttered."The "heart and soul" of that program, Reamer says, focuses on an Information Center, a two-sided floorstand that has comprehensive details about every model combined into one binder on a large pedestal base. "That format underwent the most changes in both presentation and emphasis," he says. "It used to be pretty copy intensive. Now it's very graphic, with a lot of pictures, icons and copy that's bold and bulleted."Subaru has also put more emphasis on its permanent information center, which it also uses as a one-stop center, with model photos and material samples. "We didn't want customers to have to wander from station to station to gather information," says Miglietta.Dealer Cooperation CriticalThe key problem with moving to more permanent pieces is that the dealers have to be sold on the value of the program and the investment. And with more multi-brand dealerships, it can be a fight to gain the floor space for permanent pieces. "Our Information Center is carried by only about half of our dealers," says Reamer. "But those dealers sell about 80 percent of our cars. They're the ones most interested in our products and finding better ways to sell them."Adds Miglietta, "Some of the old-line dealers like the old gimmicks and will take whatever we give them. But the smart ones know that you have to move with the times and are responsive to updates to attract customers as their needs change."That's also the challenge faced by Volkswagen, says Jules Bauduc, marketing services manager for the Auburn Hills, Mich.-based marketing office of the German automaker. The company recently introduced a new permanent display sign for its full line using its "Drivers Wanted" slogan and tying into other pieces being produced. To get it into dealerships, he says, the company had to convince many dealers to eliminate the large neon sign sporting the previous slogan, "Fahrvergnugen." It stood 5 feet by 4 feet and cost each dealer about $1,000, so that wasn't an easy sell in all cases. "But most dealers realize that these new pieces can help sell cars."The key, Bauduc explains, comes in providing more value for the dealers and meeting their evolving needs. For instance, until recently, the company promoted specific models with outdoor banners. But those outdoor pieces were receiving poor response, because they were hard to control and set up. The company has now stopped producing those and focuses everything in-store. Its most recent success came with a Passat promotion that used silk-like vertical banners that had the car image screen printed directly onto the material. "The reproduction was absolutely spectacular and they were very well received," he says. Motorcycle Challenges VaryRetail cooperation becomes an even bigger challenge for motorcycle manufacturers, since most dealers sell a wide variety and have different needs dependent on their customer base. Some want window clings announcing new models and options, explains Joanne Goulding, national advertising and merchandising coordinator for Kawasaki Motors Corp. U.S.A., in Irvine, Calif. But others don't want to block up their windows since they want their products to be visible to passersby."Each is an independent businessman, so we can't dictate what they use, and support varies widely," she says. "Some are very supportive, and we think P-O-P is very important, so we keep looking for the best balance."Supporting that philosophy is a new merchandising program the company has started that integrates its national advertising under one thematic umbrella with local dealer advertising, P-O-P, in-store promotions and sales incentives. Kawasaki's campaign, which began in 1997, is being credited with raising dealer participation in the advertising program by 20 percent. P-O-P materials include outdoor and in-store banners, hanging pieces, standing signs, counter cards, on-product pieces such as hang tags and see-through window graphics.Kawasaki takes the program a step further by creating a personalized approach and working directly with each dealer who participates. "Dealerships are a very diverse group, and some require more help than others," explains Sharon Lund, vice president of Kawasaki's ad firm, The Falls Agency, Minneapolis. "We essentially produce and place campaign advertising for the dealer that thematically ties into the national program. We also help with in-store promotions, sales incentives, value-added features, and a complete P-O-P display kit."Flexibility DominatesFlexibility definitely remains uppermost in marketing executives' minds to meet the variety of dealer needs they face. Volkswagen and Chevrolet both report adding new visuals to their lines of posters, as well as dressing up the presentation areas to provide a more upscale look and target the specific image each dealer wants to promote. At Volkswagen, that includes producing new, thinner poster frames that project a more modern, upscale look and are easier to access.At Chevrolet, a "feature pylon" provides space for two posters, one on each side, with a variety available to high-light the latest promoted message or vehicle featured in the ads. The company also recently introduced a tower glorifier that's being used to merchandise its 1997 Corvette sports car. It features twin 80-inch-high towers of tempered glass with a stylish silver metal base and spine. "Dealers like the flexibility of that piece," Reamer says. "It doesn't take up much space and it's clear so it doesn't block sight lines. The vehicles are primary, and we don't want to hide them, but the displays still have to be prominent." Technology Use GrowsTechnology is becoming more critical to selling cars, and even though less is coming directly from the showrooms, it doesn't mean it isn't coming from the car makers, says Volkswagen's Bauduc. "We load as much information about models and pricing as we can into our web site to give browsers the background they need." Chevrolet's Reamer adds that while younger buyers use the Internet heavily, older buyers are getting information in other ways, which prevents any type of information-gathering system from dominating or edging out the other.Chevrolet has investigated the use of in-showroom information kiosks, Reamer says, offering keypads to access laser-disk options. "We want to find ways to get information to customers on features that don't come across well on a page," he says. These include such elements as detailing how systems work or how the air bladder inside the seat is positioned. "These are hard to get across in a diagram, but you can show them to someone easily on a screen." The company hasn't produced any final pieces yet, he adds, "But our focus-group research shows there's some potential, and we're investigating options."Subaru tested the information-kiosk concept as well when it introduced touch-screen kiosks about three years ago that the company planned to update with new laser disks as needed. But the program has slowed. "Customers did so much of their own research before arriving that we found they didn't want more background," he says.No matter what format the information takes, the customary paper brochure is not being phased out, notes Bauduc, who says Volkswagen has also investigated high-tech approaches. "We'll never get rid of brochures," he says. "There will always be people who want that format. Plus, when someone first comes in to see what's available, we want him leaving with something tangible that he can refer to and that has some quality to its production."Even so, all agree that as Internet use grows, it will change how the car companies project their message in the showroom. Subaru's Miglietta notes that some dealers have been hesitant to add Internet access for fear that a customer might find a better deal on a local dealer's web site. Reamer says Chevrolet has considered adding Internet kiosks at dealerships, but consumers have indicated they'd rather access that information in their own environment."We're talking about what the Internet's impact might be right now," Reamer says. "It's possible that our information center may become redundant in the future if customers can find this information elsewhere. The Internet will probably change how we market our cars -- but we don't yet know how."

Customer Needs Drive Motor Vehicle P-O-P

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