Revving Up in the Automotive Industry

Though automobile sales may be declining, many dealerships are looking for promotional products to give a much-needed boost.
Nov 10, 2008

By Liz Aull, Contributing Writer

“People can have the Model T in any color — so long as it's black,” said Henry Ford, founder of Ford Motor Co. Although Ford might have been onto something with the Model T, it’s a good thing the idea didn’t catch on for promotional products, particularly in the automotive industry.

While it’s no secret that gasoline prices and the economic downturn are causing consumers to scale back, that doesn’t mean times are bleak for promotional products distributors, particularly in the automotive industry. In fact, Lee Eldridge, president of Absorbent, Ink., Lawrence, Kan., says that his company’s online sales to the automotive industry are up 40% this year. “Some car sales have been down, so usually means that others are up,” he says.

In fact, the automotive industry is following trends seen in other industries. “Our automotive clients are more aware of eco-friendly products,” says Patrick Doyle, owner of Proforma Synergy, Toronto, Ont. “If there’s an opportunity to use an eco-friendly product, they do it.” Eco-friendly products for the automotive industry include products that cross industry lines, such as apparel made from organic cotton, as well as products that speak especially well to that industry. In the automotive niche, window shades are popular because they block the sun, and therefore, use less energy to cool vehicles.

Target Recipients
Promotional products for the automotive industry have two primary types of recipients: company employees and car buyers, although each segment can encompass a wide variety of beneficiaries. Employees includes everyone from salespeople to customer service departments. “Customer service is a huge part,” says Doyle. Dealers spend a lot of time and money educating their employees on good customer service, which often is encouraged by giving incentive gifts. Also, promotional products often are used as incentives for sales departments and other employees, says Eldridge. He recently found that the Human Resources departments of car dealerships are implementing internal health and wellness programs, giving way to a need for employee gifts such as reusable water bottles and other items associated with promoting good health. Safety programs also are an important reason an automotive company would use promotional products internally. Mark Yokoyama, director of marketing for New York-based ePromos, has found that safety awareness in factories is an important segment for promotional products sales in the automotive industry.

Purchasers of new cars sometimes take home a promotional product and don’t even realize it. Cars often have license plate frames or stickers showcasing the dealer’s name and logo. Many dealers send buyers home with personalized folders containing their paperwork. Small appreciation gifts, such as key chains, also are popular.

Dealers also purchase promotional products for their stores. Many set up sales displays featuring personalized balloons surrounding a group of cars. Plus, these promotions are a popular way to drive traffic to a store. Eldridge notes that some dealers offer free gifts to people who test drive a car. “Often, the gift has nothing to do with cars, like an MP3 player or a flash drive,” he says.

Who Does the Buying?
To get your foot in the door to sell promotional products in the automotive industry, you need to identify the purchaser, and that’s not always easy. Larger car companies often have corporate purchasing departments, says Yokoyama. “Or, depending on the use of the product, they purchase through an advertising agency,” he says.

In an individual dealership, there could be a number of people with purchasing power, including the owner, a secretary or a sales manager, says Doyle. “(Dealerships) often are small businesses,” says Eldridge. “You usually work with the key decision-makers or secretaries, because there isn’t a big marketing or public relations department.” Also, individual dealers often are involved in their community and may purchase items for community events, notes Yokoyama.

Common Challenges
Like many industries, the automotive industry tends to be busier in the spring and fall, and that can be a challenge for promotional products distributors who must meet many deadlines at once. Another common challenge is meeting short deadlines.

Right now, the biggest challenge to drumming up business in the automotive industry is figuring out the best way to help customers get ahead. SUVs and other gas guzzlers are quickly losing ground, and car dealerships are scrambling to replace them with more fuel-efficient vehicles. That means they’ll be looking for creative ways to get their name in front of potential purchasers. Your job will be to come up with a creative way to get  new purchasers in the door and into a vehicle. Yokoyama has seen dealers trying to gauge pre-buyer customer engagement through direct-mail pieces or event giveaways. Your creativity in those departments could very well be what makes your promotional product proposals stand out to prospective automotive clients.

Liz Aull is a freelance writer in Atlanta and a contributor to Impressions magazine. She can be reached at liz.aull@gmail.com.

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