Professional Documents
Culture Documents
COM
TheOEM
A Dealernews Staff Report
D I S P L AY
MARKETING
REPORT CARD
Where OEMs still seem to be dropping the ball, according to dealers, are in the areas of advertising co-op programs (dropping 1.30 points from two years ago), and assistance with sales and service training (dropping 1.99 and 1.70 points, respectively). The dealers relationship with an OEMs regional rep was key to achieving a good score on this years submissions. Here, for example, Yamaha improved its score from the 2006 Report Card (7.17 vs. 6.59), while Arctic Cat dropped almost three points (to 3.38 from a previous 6.13). Our rep calls only one time a year at order time, said one dealer. Very good product; poor dealer support, said another dealer for another OEM. Still another dealer added that he would rate support from the factory an 8 but from his regional rep a 1.
MANAGEMENT
SALES
SERVICE
INVENTORY PROBLEMS
Dealers chastise OEMs almost across the board for product inventory and availability disconnects. From the comments submitted with the surveys, it seems the dealers are either struggling with too much inventory thats not selling in their area and being pressured by the OEMs to take on more, or they are selling out of mainly low-displacement motorcycles and scooters and are unable to get restocked. One Euro dealer we talked to was considering temporarily closing the doors to his empty showroom in September and offering only parts and service until he could get restocked. And then there were complaints over too much love from Big Four dealers, one of whom told us, Our rep calls and stops in all the time, and tries to shove product down our throat, whether we need it or not. Echoed by an unrelated dealer, who told us that the companys sales reps should wear pinstripe suits and carry machine guns.
D I S P L AY
INDUSTRYWIDE
PRODUCTS Availability Craftsmanship, t, nish Margins Price Competitiveness Visual Appeal 5.90 7.30 6.22 6.43 8.08 7.48 8.26 6.59 6.93 7.73 2008 SCORE 2006 SCORE
SERVICE
MARKETING
DEALER SUPPORT PROGRAMS Advertising Co-Op Programs Consumer Financing Programs Flooring Programs Merchandise Programs OEM Rep Support Programs Parts & Accessories Programs Promotional Programs Service Department Programs Training Programs 4.83 5.47 5.15 4.83 5.64 5.06 5.07 4.28 4.28 6.53 7.21 6.14 6.28 6.35 6.42 6.35 5.98 6.27
MANAGEMENT
SALES
ARCTIC CAT
PRODUCTS Availability Craftsmanship, t, nish Margins Price Competitiveness Visual Appeal Advertising Co-Op Programs Consumer Financing Programs Flooring Programs Merchandise Programs OEM Rep Support Programs Parts & Accessories Programs Promotional Programs Service Department Programs Training Programs Communications Consistency Credibility 6.42 6.27 3.69 5.46 6.50 4.58 4.69 3.96 5.12 3.38 5.19 4.50 3.96 3.81 3.19 4.23 3.85 7.09 7.81 6.25 6.31 8.06 6.68 7.28 6.00 6.38 6.13 6.13 6.25 5.78 6.72 6.69 7.00 6.90 AVERAGE SCORE No. of Dealers Reporting COMMENTS: Dealers believe that product quality is solid, but that the Minnesota-based OEM has pushed too much inventory onto the dealers. Dealers across the country gave Arctic Cat low marks for communications and support issues that seem to be tied to a perceived lack of attention paid to them by their regional reps. My rep calls only once a year at order time. Very good marketing, but poor support and poor relations with dealers. My rep has not seen my store for 11 months. 4.64 26 6.67 32 2008 SCORE 2006 SCORE 2008 SCORE 2006 SCORE
OVERALL RELATIONSHIP
BRP/CAN-AM
PRODUCTS Availability Craftsmanship, t, nish Margins Price Competitiveness Visual Appeal Advertising Co-Op Programs Consumer Financing Programs Flooring Programs Merchandise Programs OEM Rep Support Programs Parts & Accessories Programs Promotional Programs Service Department Programs Training Programs Communications Consistency Credibility 6.69 7.66 5.00 4.41 8.07 5.76 5.41 4.07 4.66 5.52 5.48 5.93 4.29 4.97 5.72 4.97 5.10 7.11 7.96 5.64 6.50 7.90 6.52 7.13 6.00 6.52 6.60 6.50 6.83 6.17 6.50 6.71 6.88 7.28 AVERAGE SCORE No. of Dealers Reporting COMMENTS: BRP gets high marks for product craftsmanship, especially related to the Can-Am Spyder. However, dealers fault the OEM for high interest rates on ooring, and their perception that the OEMs sales staff and dealer development staff dont communicate effectively. 5.51 29 6.75 48 2008 SCORE 2006 SCORE 2008 SCORE 2006 SCORE
OVERALL RELATIONSHIP
D I S P L AY
HONDA
PRODUCTS Availability Craftsmanship, t, nish Margins Price Competitiveness Visual Appeal Advertising Co-Op Programs Consumer Financing Programs Flooring Programs Merchandise Programs OEM Rep Support Programs Parts & Accessories Programs Promotional Programs Service Department Programs Training Programs Communications Consistency Credibility 6.57 8.59 5.41 6.34 7.46 6.09 7.81 6.47 6.08 6.39 5.60 6.39 4.92 6.41 6.00 6.46 5.98 8.08 8.72 6.44 6.50 7.57 7.03 7.25 6.27 6.61 6.47 6.67 6.78 6.12 6.12 6.26 6.45 7.00 AVERAGE SCORE No. of Dealers Reporting COMMENTS: Despite depressed sales in the overall market, most Honda dealers remain loyal to the OEM, keeping scores relatively stable between 2006 and 2008 when it comes to visual appeal of the product, price competitiveness with other brands, and rep support programs. It even scored higher this year for training programs and consumer nancing options. Some dealers bashed the brand for lack of product innovation: The rep support is good, but the product is stale, says one. The brand needs to get outside the box, asserts another. Multiline dealers assert that Honda favors the Powerhouse dealers by providing them with more product. As one dealer sums it up: Corporate doesnt seem to care about the small family businesses. They reinforce the bigger dealers, making it tough [for us] to compete. 6.41 54 6.84 52 2008 SCORE 2006 SCORE 2008 SCORE 2006 SCORE
MARKETING
SALES
SERVICE
OVERALL RELATIONSHIP
MANAGEMENT
KAWASAKI
PRODUCTS Availability Craftsmanship, t, nish Margins Price Competitiveness Visual Appeal Advertising Co-Op Programs Consumer Financing Programs Flooring Programs Merchandise Programs OEM Rep Support Programs Parts & Accessories Programs Promotional Programs Service Department Programs Training Programs Communications Consistency Credibility 6.29 8.16 6.49 7.86 8.27 7.00 6.28 6.18 6.98 6.53 7.38 6.86 5.70 6.06 7.18 7.63 7.76 6.71 7.96 6.44 6.82 7.29 5.93 6.96 6.34 5.89 5.60 6.24 5.77 5.44 5.78 5.98 6.20 6.56 AVERAGE SCORE No. of Dealers Reporting COMMENTS: Kawasaki is one of the few OEMs to receive a higher overall average score this year vs. two years ago. Several dealers commented that the company is good to do business with, is innovative, and supports the small family business. Kawasaki makes it easy to sell products, says one multiline dealer. Support program scores varied by region. They need to be more competitive in marketing regionally, says another dealer. Dealers are left to promote their individual stores. [There are] no dollars for group advertising or special events. A shame, as Kawasaki currently has the best lineup across the board on Japanese product. 6.98 52 6.35 46 2008 SCORE 2006 SCORE 2008 SCORE 2006 SCORE
OVERALL RELATIONSHIP
POLARIS
PRODUCTS Availability Craftsmanship, t, nish Margins Price Competitiveness Visual Appeal Advertising Co-Op Programs Consumer Financing Programs Flooring Programs Merchandise Programs OEM Rep Support Programs Parts & Accessories Programs Promotional Programs Service Department Programs Training Programs Communications Consistency Credibility 7.74 6.88 4.48 6.12 7.60 5.62 6.86 5.55 6.52 6.71 6.64 6.83 5.14 6.10 6.95 6.31 6.24 6.79 6.42 5.65 6.10 6.85 5.63 6.18 4.95 5.53 5.32 5.53 5.21 4.16 5.21 5.25 5.15 5.00 AVERAGE SCORE No. of Dealers Reporting COMMENTS: Polaris dealers for the most part are feeling pretty good, no doubt boosted by sales of the OEMs popular Ranger side-byside. We grew our Ranger business by over 50 percent this year, says one dealer. But then theres the rub, as the dealer continues: And our reward is that Polaris opens a new Ranger dealer 12 minutes from our door. Indeed several reporting dealers complained that the OEM is pushing product too hard: The OEM has ooded the market with inventory, hurting the dealers bottom line, says another store. Its us against them. 6.37 42 5.58 20 2008 SCORE 2006 SCORE 2008 SCORE 2006 SCORE
OVERALL RELATIONSHIP
SUZUKI
PRODUCTS Availability Craftsmanship, t, nish Margins Price Competitiveness Visual Appeal Advertising Co-Op Programs Consumer Financing Programs Flooring Programs Merchandise Programs OEM Rep Support Programs Parts & Accessories Programs Promotional Programs Service Department Programs Training Programs Communications Consistency Credibility 4.42 8.03 5.89 7.00 8.08 6.45 4.92 5.00 5.71 5.47 5.53 5.42 5.29 5.97 5.89 6.08 6.19 7.94 8.46 6.87 7.43 7.60 6.92 7.56 6.06 6.50 6.53 6.48 6.44 6.41 6.37 6.30 6.81 7.02 AVERAGE SCORE No. of Dealers Reporting COMMENTS: Dealers commend Suzuki vehicles when it comes to innovation and sizzle factor. But the OEM suffers lower marks for dealer support and, in particular, product availability. The company has been less supportive to us as a dealer, says one. We have to constantly argue for support. It costs us money to keep [Suzuki] as a supplier. A long-time Suzuki dealer says that hes been very happy with his district sales representative, but product availability is a joke. And from this rst-year dealer, who says hes impressed with the company overall, but not impressed by poor shipping schedule and availability. 5.96 39 6.92 55 2008 SCORE 2006 SCORE 2008 SCORE 2006 SCORE
OVERALL RELATIONSHIP
D I S P L AY
YAMAHA
PRODUCTS Availability Craftsmanship, t, nish Margins Price Competitiveness Visual Appeal Advertising Co-Op Programs Consumer Financing Programs Flooring Programs Merchandise Programs OEM Rep Support Programs Parts & Accessories Programs Promotional Programs Service Department Programs Training Programs Communications Consistency Credibility 6.38 9.98 6.29 7.03 8.76 6.86 6.43 5.17 6.92 7.17 7.03 6.69 6.77 7.41 7.79 7.83 8.14 7.15 8.81 6.92 7.22 7.59 7.24 7.82 6.29 6.97 6.59 6.87 6.80 6.62 6.65 6.79 7.22 7.57 AVERAGE SCORE No. of Dealers Reporting COMMENTS: Even though there were only about half the Yamaha dealer respondents as there were two years ago, those that submitted completed surveys seem to be happy, overall, with the OEM. Product craftsmanship and visual appeal, in particular, garnered high marks from dealers. Yamaha also bettered its dealer scores in rep support, parts and accessories programs, and training initiatives, and improved in all three areas when it comes to overall relationship with its dealers. Several dealers, however, chided Yamaha for poor-quality, overpriced promotional support materials and increased freight charges. 7.16 67 7.12 123 2008 SCORE 2006 SCORE 2008 SCORE 2006 SCORE
MARKETING
SALES
SERVICE
OVERALL RELATIONSHIP
MANAGEMENT
U.S. MAP
Responses by region
50 99 20 49 <20 100+ 50 99
<20
50 99
50 99
Printed in U.S.A.