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Vol. 2, No. 3, June 1998 |
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| CULTIVATING NEW CUSTOMERS |
Article for "Tire Retailing Today"
The official publication of the: National Tire Dealers and Retreaders Association.
by Stephen J. Alexander
President, Automotive In-Store Marketing |
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| Stephen J. Alexander |
Niche, niche, who can find their best niche?
Demographic experts tell us that 87 out of every 100 people fit into a niche.
A niche market niches is a group of people with similarities. They share economic, social, and possibly political values that shape their attitudes. They are potential buyers who understand the same marketing or advertising message, but they are not being served by the competition.
Niches are usually identified as populations groups, such as women or Hispanics. But it’s practical for retailers to go past those conventional groupings and look instead at “life stage groups.” Here are three groups or niches that could present new marketing opportunities and customers for tire dealers:
- Singles still living at home
- Singles starting out on their own
- Young couples without children
According to 1995 figures, there are more than 30 million of these young people in these three groups. They are prime candidates for buying performance tires and for spending more money on accessories for their vehicles.
MORE EDUCATED, DEMANDING
There are key ways to make these people happy customers. The President of MARKETPLACE 2000, Cynthia Cohen, one of the speakera for this fall’s Global Automotive Aftermarket Symposium being cosponsored by TANA, advises to be thorough in marketing to young people. “They’re more educated and more demanding. They have higher expectations of retailers than their parents and grandparents had.”
The approximately 13 million singles still living at home may or may not pay their parents room and board, but they are socially active and generally lead busy lives. They prefer to buy some services rather than do it themselves.
Singles starting out on their own number about seven million and are just gaining financial independence. They’re beginning to think about forming their household free of parental observation. And they’re wondering where to spend their discretionary income.
The number of young couples without children is about 15 million. They are beginning of the spending spree of their lives.
MEET EXPECTATIONS
Members of all three groups have similar characteristics and expectations that will require special attention from successful tire retailers.
They want reliable products and services but are leery of retailers and service providers, so it’s important to keep the promises you make. For instance, if you offer drop-off service to their offices, do it. The people in these three niche markets will expect not only the drop-off service, but a clean vehicle, a courteous driver, and convenient shuttle hours. If you don’t meet these expectations, you won’t keep them as customers.
Ad messages should be entertaining and show relevance to the lifestyle led by those in these niche markets and convey a message. If ads and commercial show how life can be easier or more fun, you’ll get their attention. They like to buy experiences rather than things.
INFORMATION SOURCES
People in these niche groups are more likely to get their information from television, radio, the internet, and by word of mouth than from newspapers.
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| “If ads and commericals show how life can be easier or more fun, you’ll get their attention.” |
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They want a good shopping experience and tend to be unforgiving. In short, retailers are likely to get only one chance.
For tire retailers, that means attractive store facilities and employees, preferably all in nice, professional neat uniforms, and clear displays of products. These customers want to leave their $40,000 SUV for service in an atmosphere that matches their vehicle.
They are brand conscious. If they like your featured product line because of the brand, thegood-brand aura will spread to the remainder of your product offerings.
They are technically oriented, and expect modern technology to do things correctly the first time.
OBTAIN AUTOGRAPHIC INFO
After gathering demographic information about any potential new market niche, you’ll also want the “autographics”, or information about the vehicles these potential customers are driving. Autographics will help you decide which products appeal to this younger niche market. There are several ways to obtain autographics, including vehicle registration records, databases from suppliers, or eyeballing traffic and parking lots in the area. Precision here is not crucial here. A general idea of who’s driving what among your target group or groups will suffice.
For example, if SUVs are a predominate type of vehicle in your store’s marketing area, it would be a good idea in commercials and marketing material to emphasize tires designed to improve stability. If there seem to be more sports cars, an emphasis on performance-related tires might be a better approach.
OFFER PRODUCT EXTENSIONS
Any product extensions you offer should be compatible with your basic products. They should be products that enhance the driving lifestyle and include times that young customers will buy on impulse. An example should be of good quality, too, if you want them to increase ticket totals. Think premium line accessories and forget the fuzzy dice or and other “vehicle jewelry.”
Besides impulse purchase items, consider selling special-order accessory merchandise, such as rooftop rack systems, or standard accessories, such as truckbed liners. Set aside an area in your store to promote and display information on these products.
You may consider some of these ideas unusual for a tire dealer to sell, or you may assume the public doesn’t expect you to offer these extension products. But why not? These younger customers will be pleasantly surprised if the extension products you offer are logical (automotive), of high quality, and offered in an environment that meets or even surpasses their expectations. Accessories are selling well in this upbeat economy.
What’s the bottom line in niche marketing? Select your customer prospects, know what they drive and understand and provide what they expect. Give them something your competitors are not.
Don’t worry about the 13% of people out there who don’t fit any niche. Some people will come in anyway to buy. You might just be on the right side of the road as they’re on their way to work!
Stephen J. Alexander is an aftermarket consultant, speaker, and author. To learn more about making your tire store a powerful selling platform and other in-store merchandising and marketing issues, contact Stephen Alexander, Automotive In-Store Marketing at 239-395-9203 or e-mail him at salexander@autoinstore.com.
COPYRIGHT NOTICE:"Reprinted with permission from Tire Retailing Today, June, 1998, page 1. Copyright by TDSI. TDSI retains all rights to this material." To subscribe to Tire Retailing Today, call 1-800-876-8372.
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