When it comes to luxury, the car sector is not always the one that comes to mind.
Although it is a booming market, which produces tens of billions of euros in revenue each year. We had the opportunity to visit a Land Rover & Jaguar franchise : Land Motors, to gain a better understanding of this market.
A franchise represents an official company subject to a specific charter for each car manufacturer. The communication of a franchise is mastered by a car brand management, in order to have a unified speech to be consistent, this includes:
The bottom: defining the territory of the brand, the strategy
The form: graphic charter, editorial charter …
On all other support: harmonization of the stores in terms of furniture, design …
The stocks are partially managed by the car brand, sometimes the cars have been imposed, sometimes it is the franchise that can be asked for a certain model.
You have to be very skilled to be in this business because the car stock loses its value, so you have to be able to predict the right amount and know how to sell it.
To do that, planning a launch event can be a solution.
For all of these events, you must first know who the target of this new car is, what type of customer, what type of press invite you should, set a budget accordingly to it and know how much the brand is investing in. And then as any event, you need to choose a place, provide a catering, animations etc.
Often franchises use agencies to help them in the development of this launch.
It’s important to remember that all of this always need to be in accordance with the charter of the brand.
Through this event, the franchise seeks to sell a sensation for the customer to associate with the car and create a dream. The real fact that translates this dream in purchase is the test drive, this is the reason why franchises sends invitations to try out new models in the week following the event, to the customers most likely to purchase the car.
This strategy allows customers to imagine what their life could look like if they owned the car.
Each dealer has its own territory, for example, the franchise where we went was in Barcelona, so it developed a centralized communication in Barcelona, so they would not encroach the territory of another franchise.
It is also very interesting to keep a good relationship with your sales department in order to know what works and what does not work in these events, and in their communication. Thanks to that they can adapt their marketing and always do better.
Having an automotive franchise is an expanding market that can be very profitable, but we keep in mind that it’s also a job that comes with some restrictions.