Dealerships' digs an extension of corporate branding

Ron Loveys

TADA PRESIDENT

With more than 300 makes and models to choose from, what makes a consumer choose one vehicle over the next? In a word: branding.

Branding is a powerful force within the retail auto industry. Carmakers and dealers invest millions each year to promote their brands in a highly competitive marketplace.

What exactly is an automotive brand? It includes a wide array of tangible and non-tangible assets, from a vehicle's body styling and safety features to the design elements and corporate colours found inside a showroom.

A brand is also an idea, an image and a perception among car buyers and non-buyers alike. The creativity that goes into developing new vehicles, accessories and services is closely aligned with a manufacturer's corporate vision.

Of course, vehicles are a large part of the branding equation. A vehicle's physical appearance and performance features are just as important as the architectural elements that are incorporated into the design of a dealership.

Freedom, off-road capability, eco-friendliness, luxury and high performance are some of the descriptions that contribute to the promotion of a particular brand.

For instance, Lamborghini is an Italian-built sports car that appeals to successful, independent-minded and discriminating individuals. The design and engineering of this car, along with its advertising and marketing, work in tandem to create a particular brand.

Manufacturers aim to create highly distinct vehicle brands that appeal to specific segments of the market. When you think Volvo, you automatically think safety. When you think Chrysler Caravan, you automatically think families and convenience. For each make of vehicle, certain ideas and images should spring to mind.

Over the past decade, dozens of new car dealerships throughout the GTA have been renovated or rebuilt. Dealerships do this for a number of reasons: to replace old buildings that have outlived their usefulness; to accommodate steady growth; to fulfill contractual agreements with manufacturers; and for competitive reasons.

The current era of dealership facility improvements began in the late 1980s, when the new car industry lagged behind other retailers in modernizing their facilities.

At that time, auto retailers and manufacturers recognized an opportunity. Over the years, manufacturers have introduced "image programs" for the design and construction of dealerships, which help bolster respective brands.

In 2001, I gained a better appreciation for the Ford brand when we moved to a larger facility in Mississauga. During construction, my partner and I had to ensure that the new dealership was designed and built in accordance with Ford's branding requirements.

Each auto manufacturer has its own ideas about differentiating its brand from everyone else's. Although each dealer has unique needs and considerations, the facility must adhere to manufacturers' standards of corporate branding.

In my case, Ford's requirements included specific use of building materials, lighting design, exterior signage, interior finishes, colour selection and other design features.

Whether it's Ford, Toyota, GM or Honda, manufacturers usually insist that all facility renovations and (especially) new buildings follow strict guidelines relating to architecture and appearance. If every dealer decided to choose their own design elements, there would be no consistency of brand and image.

The same branding principles that dealerships follow are inherent in the design and construction of popular retail establishments, such as Tim Hortons, Wal-Mart, Canadian Tire and McDonald's.

For most new-car dealerships, the facilities have come to represent a powerful and sophisticated extension of the corporate brand. In turn, customers are greeted with stunning showrooms, state-of-the-art service facilities and a level of sophistication that better reflects the professionalism within the automotive industry.

Next week, I'll discuss the role of corporate branding inside a dealership.

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