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This question has been closed, and points have been awarded.
Need Help W/ Marketing A Collision Shop
Posted By: Sarorn* on 10/4/2004 4:04 PM (CST) 250 Points
As an automotive collision shop, we specialize in body repair for high end- prestige vehicles. Most of our clients own BMWs, Jaguars, and Mercedes. We would like to break away from this niche and reach other markets.

Because we have a reputation of specializing in the luxury vehicle market, the community often thinks that we're too expensive and that we don't work on ordinary cars. This misconception takes away a large market share.

Currently, we're advertising on the radio by sponsoring traffic tags, and on roadside billboards. We're branding ourselves as a Customer First service center.

Is there anything else we can be doing? Any help is much appreciated. Thanks!

Posted by: W.M.M.A. Accepted Answer
10/4/2004 4:16 PM (CST)
Welcome to KHE. If hope your printer has plenty of ink, because you are about to receive so much information fro wirm the colleagues within this forum. I hope you're ready.

Let's begin with the development of a marketing plan. I realize this may sound a bit trite, since you have been in business successfully, but you are now approaching an entirely new area of visibility. You will need an entirely new strategy.

You are attempting to rebrand your company. This will certainly take a substantial amount of research on your area demographic profiles. Will you do "custom" work or straight body-shop work? What is the differentiation between your firm and other body shops. Your present market perception is that you are too expensive. How do you think this can be overcome?

I believe that radio and billboard advertising are too expensive to educate your new customer base as to the changes you are about to go through.

Remember Earl Scheib, back in the day..."Any car...Any color" - this is what you are will soon undertake, except you probably do not want that image. You don't want to downgrade your image, from high-end, but you certainly want to "expand" your market w/o reducing the value of your product/service.

If you will input a few of YOUR ideas about your market, and how you believe you should approach this change, and fill in your profile information...we can certainly provide you with ongoing assistance.

Randall
WMMA
 
Posted by: NuCoPro Member Response
10/4/2004 4:40 PM (CST)
I understand you would like to broaden your market, but you have to be very careful on how you do this. You run the risk of losing high-end business, if you become perceived as "just another body shop." A lot of S class owners wouldn't want their car repaired at a shop with a lot full of Chevy's and Fords!

Have you thought about expanding into other luxury and near-luxury brands like Lexus, Infinity, Accura, Cadillac, Lincoln? I'm thinking your first "extension" should hold your customers' perception of you as a high-end service provider. I believe your "rebranding" should keep the low end of your target market at close to $40,000.

Before I go any further with this, I would be interested in your thoughts.
 
Posted by: SteveByrneBranding Accepted Answer
10/4/2004 4:49 PM (CST)
Sarorn,

IMHO you should step back from your advertising program and look at your marketing position.

“We specialize in body repair for high end- prestige vehicles”

This is a strong marketing position. Presumably you own a top position in your market, maybe the number one position. Perhaps it makes greater marketing sense to give up the mid/low-end segments so you can continue a strong ownership of the position the market is already acknowledging. You could risk your top position in luxury but diluting your brand with mid/low-end work. Ask yourself, Is there enough of a market in the luxury segment? How much more business can I get in the luxury segment? Seems like the luxury business would be a good business in most markets -- and too much greed might result in a net loss verses gain.

Note: you could start a new separate company that specialized in mid/low-end repairs.

Hope this helps,

- Steve
 
Posted by: Sarorn* Author Response
10/4/2004 4:56 PM (CST)
Hi Randall:

We currently have a marketing plan. We currently do both costume work, and general bodyshop work as well.

What seperates us from the competition is clearly our image and the way we do business. We're not like any of the shops in our market (Small, messy, grungy looking shops)--we're considered "posh" in the collision repair industry. Our building alone says alot about our image.

As proud as I am of our image, in a way, it hurts our business, especially when we're trying to expand into other markets.

The current marketing plan puts emphasis on customer service. We're positioning ourselves as a customer driven facility...not just quality. Every body shop will say they do quality work...but we're not just about quality. We go the extra mile to make the customer feel like they're our only customer.

In order to keep our existing high end clientelle, we're keeping them informed through a bi monthly newsletter, and follow up phone calls to inquire about their vehicle.

As stated in the previous post, we've started advertising on radio and billboard. The radio tags are short, mainly geared towards the everyday listener on their way to work. As a collision shop, we face a huge obstacle- in terms of penetrating into the minds of a customer. I like to compare my business to that of a heart surgeon. You never shop for a heart surgeon until you need one. This is similar to a bodyshop...you never need a bodyshop until you get into an accident.

I think by being an audible and visible name in the community, people will remember us when they need body work done to their cars--hence my decision to advertise on radio and billboard.

Another avenue that I am pursuing is a client to client referral program. I am currently looking for ideas on how to generate referrals and reward those who reffer us. Any ideas?

Thanks so much!

P.s: How do I go back and fill out my profile?
 
Posted by: W.M.M.A. Accepted Answer
10/4/2004 5:16 PM (CST)
Click on "My Profile" in the right hand column, and edit your information. You can also send me an eMail address if you wish.

I agree with Steve too. Your tags are great, but they will not expand your market. Rethink advertising for right now.

If you need help in this area, contact me. I can help you. Read my profile too.

As well as incentive for customers to refer, this would be a good time to find an organization similar to BNI, Business Network International that may be in your area, and start shaking hands and networking. You can have 2-3 members of your staff join various organizations as these. Your colleagues in these groups will begin to use you and network for you. I've had great success with BNI. But, be careful for breakfast organizations that are just there for breakfast.

There may also be possibilities for editorial in local papers (neighborhood papers as well as your main newspaper). Business editors are always looking for editorial. I think this could be spun into a public-interest article about a successful business who changes with the market...who understands that people are hanging onto their cars for a longer period of time, so they are having them repaired and repainted....or something like that. I will think about it.

Feel free to eMail me.

Randall
WMMA
 
Posted by: NuCoPro Member Response
10/4/2004 5:31 PM (CST)
Sarorn,

Click on My Profile in the Account Info section of the left rail to modify your profile.

I also noticed that you closed this question already before even commenting on my and SteveB's point of not diluting your high-end brand?

In case you ever post again, please leave it open for at least 48 hours. You'll be surprised at how much great advice you will receive from all around the world! I was very interested in your situation and was looking forward to an ongoing dialogue.
 
Posted by: Sarorn* Author Response
10/4/2004 9:40 PM (CST)
Steve:

I'm sorry that I closed this posting. This was my first posting and when I clicked "Accept Response," I didn't know that it would close it. I had no idea how this worked...sorry. Thank you for your feed back, very much appreciated.
 
Posted by: Sarorn* Author Response
10/4/2004 9:40 PM (CST)
Vevolution / Steve:

I'm sorry that I closed this posting. This was my first posting and when I clicked "Accept Response," I didn't know that it would close it. I had no idea how this worked...sorry. Thank you for your feed back, very much appreciated.
 
Posted by: Val (Moderator)* Moderator Response
10/5/2004 12:20 PM (CST)
Hi Sarorn. I'm happy to reopen it for you. It will look a little different than usual, because I can't switch off the "Accepted Response" note next to Randall's posting. And I don't think you'll be able to accept responses and close it on your own when you're done. So please just email me with the names of the participants you'd like to split the points between.

And Randall, I'll remove the 250 points allocated to you for now - so I can put them back in escrow for Sarorn.

Thanks!

Best,

Val
 
Posted by: SRyan ;] Member Response
10/5/2004 1:19 PM (CST)
Sarorn, you're absolutely right -- people don't need a cardiologist until they have a heart attack. Same with collision repair, so...

I think you need to focus your marketing efforts on the people who INFLUENCE your customers at the time of their crisis: Dealerships, insurance agents, and tow truck drivers!

Shelley
 
Posted by: Sarorn* Author Response
10/5/2004 1:25 PM (CST)
SRyan:
Thank you, a very good point. For years, we've been in close contact with dealers and insurance agents. It is illegal in my municipality for tow trucks to bring jobs directly to a collision shop. The vehicle must sit in the tow lot for 72 hours before the client tells it where to go.
 
Posted by: W.M.M.A. Member Response
10/5/2004 4:14 PM (CST)
not a problem here.

Randall
WMMA
 
Posted by: Jett* Accepted Answer
10/6/2004 9:03 PM (CST)
This is most definately a Branding issue. You are trying to change your personality. Quite a feat.

Think of this as a person trying to change what people think of them. Do you know a guy who is a real jerk? The kind of guy you hope you never see again? OK, now...what if he came along claiming he is different? What would it take for you to believe him? How long would he have to persist and show you he has indeed changed?

Your business is the exact same way. I'm not saying you are a jerk..LOL. Rather, you already have a solid brand (image) as a prestigeous establishment who works on exotic cars. You have to do more than say "Hey, not only do we take Toyotas now, we will treat you right too!".

I would run a series of promotional campaigns that target the very people who you are trying to reach. A general radio blast or ad in the paper is not enough. Get down to specifics: age, gender, income, zip codes, occupations, car types, etc and specialize each promotion for every group.

There are a lot of things you can do to bring in the very people you wish to attract, maintain your "clean" persona, and evoke a customer oriented service (NOT customer service oriented..big difference).

If you require any further professional assistance, please feel free to contact me. Just click on my name for the contact details.

Good luck with your endeavors!

 
Posted by: Sarorn* Author Response
10/7/2004 10:14 AM (CST)
Thank you Blaine. I've sent you an email.
 
Posted by: jstiles* Accepted Answer
10/11/2004 11:41 AM (CST)
Hmmm... sounds like a great challenge. The trick is in effectively conveying the message that you are competitively priced but with superior service. Perhaps a tag line like "not more expensive, just better" will help you differentiate.

Of course this is not a panacea, you will still have to concentrate on your other marketing and operational touchpoints, but it can be the fulcrum for your transition campaign.

It may help to focus first on what it is that keeps your prestige customers coming back (service, cleanliness, etc) and ensure that does not change. Next, find out what may draw other owner types who may also seek such prestige. You may not be able to target Acura and Lexus owners directly with media vehicles, but your messaging should be structured to appeal to them.

Best of luck.
 
Posted by: tjh Member Response
10/11/2004 2:59 PM (CST)
The risk of losing the high-end image seems too risky after all you've done to create it.

It might be easier to start a second brand, DBA or a second company even, in the same building. That gives you a chance to build its' image they way you want it, and can even have a secondary, (and small) tag line to the effect of "Brought to you by Elite Body Works (or whatever) - but even this tag line might be too much.

With the second identity you're free to market it as it needs without fear of diluting the first brand. In the trade, its association with your first business should open many willing doors for referrals from dealers, insurance companies, etc.

However, this doesn't mean to step down in service quality for the second brand...

Sounds fun!
 
Posted by: tjh Member Response
10/13/2004 1:06 PM (CST)
Just as a follow up: here's a quick-reading article by Laura Ries about brand focus, line extensions and the risks of failing with a new business line.

http://tinyurl.com/6ande

Also, the front page of her blog has excerpts from several articles that are a good fit for this discussion.

http://ries.typepad.com/ries_blog/

Hope that helps.
 
Posted by: gchenault* Member Response
10/14/2004 12:04 PM (CST)
This is a tactical answer to a very strategic question, but I want to make sure those radio spots are really targeted. Not my original idea, but one I think is a great one: When a car comes in to be repaired, make sure you capture the radio pre-sets that the owner has; after a month of this you can be sure that the radio stations you've chosen to advertise with are going to reach similar customers.
 
Posted by: Sarorn* Author Response
10/14/2004 7:43 PM (CST)
Tjh:

To start a second brand would be too costly. The equipment cost alone is very high, not to mention location and finding properly trained technicians. To operate two identities under one roof is too difficult to pull off, that's what I think. I've pondered that idea though.

Gchenault:

The radio stations that we're advertising on have the most reach in my market, and yes, we've recorded the radio presets on every vehicle that comes in--not only for marketing use, but also because we re-program the radios before delivery of the vehicle.

Right now, the radio tags are just 10 second traffic sponsorships..ie: "traffic is brought to you by..."

I'm thinking of steering my advertising dollars more towards radio and away from billboard. Possibly getting into 30 second ads and paying extra for radio station celebrity to endorse my services. What do you think?
 
Posted by: ASVP/ChrisB Accepted Answer
10/14/2004 7:51 PM (CST)
I think your brand sounds just fine.

Consider this: If you drove a regular car (say Ford or GM, even a SE Asian "buzz-box") and it was your pride and joy, and it got pranged, wouldn't you want the same care and attention to detail those rich guys get when someone rear-ends their Benz?

Does that cost more? Who's paying anyway, the insurance company?

I think you need to consider how to reach ordinary drivers who would like their car repaired to the same standards as a prestige vehicle. Sure, you won't turn it into a Mercedes for them. But you'll treat it like one.

Why not offer tours of the works to local schools and community organizations so they can see the bright/clean/organized workshops? The image will last in peoples minds. Kids tell their parents. adults accompany the tours. Parents sign permission slips. Convoluted approach, but could work...

I remember vividly the first time I saw a place where they fit-out business jets - Galaxy Aerospace, Alliance Airport, Fort Worth... The cleanliness and organizational tidiness was breathtaking, incredible. The concrete floors were painted stark, shiny white. Not a mark anywhere. See, now I'm telling you...

Good luck.

ChrisB
 
Posted by: dezinerguy Accepted Answer
10/15/2004 11:22 AM (CST)
Here a thought, perhaps a campaign..."We don't discriminate only our clients do". Pictures of your typical clients cars (High end and sexy) and a picture of a plain little econo box, not sexy but endearing. "Colision work for people who love their cars"

If you do great work you should charge a little more. What you want are the people who love there cars and are willing to pay for great service and work.

You could even do pictures of your clients ... suit, blazer, evening gown and hockey jersey.....with the Tag "We don't descrimate only our clients do." "Colision work for people who love their cars"

You could even have both type of clients hugging their cars in a photo.


You show people that you have the descerning high end client so you do good work by association.....and you show them the regular Joe or Joan uses you too. Because they love their car. You build brand and loyalty. I think this sort of campaign would work for both types of clients.

I could see ads on Buses and Billboards working well and local magazine ads.

Even a radio ad........
"Oh please can you help me...Betty's been hurt...Mam were Collision centre...I know Betty is my 1968 Rambler...I can't live with out her. "Colision work for people who love their cars" You could do a follow up ad with slant that recognises your exsisting higher end client base.

I hate it when I give away great Ideas for free :)
 
Posted by: Sarorn* Author Response
10/15/2004 1:21 PM (CST)
Dezinerguy:

Dood...I like your idea. I'm going to seriously think about it.

Thanks everyone for such great ideas!

I'LL BE BACK!
 


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