Tire dealers have never been bashful about telling you when something isn’t working. It’s often been a question of whether they are being heard.
It took a few years, but Goodyear finally heard its dealer base – loud and clear – that the auto service-based Gemini Automotive Care program wasn’t cutting it. Dealers wanted an identity that pushed tires, and one that was easy for consumers to grasp. Change, they said, was sorely needed.
Once the tiremaker finally got the message, progress toward an all-new tire-oriented program was swift. The result, unveiled earlier this year at Goodyear’s annual dealer meeting, is a slimmed down, tightly- (and tire-) focused package that encompasses Goodyear’s company-owned stores, its G3Xpress dealers, and independent dealers.
Thus far, the newly minted Goodyear Tire & Service Network has been a big hit – and not just because of a new name.
According to Cary Budzinski, general manager for dealer development who has been intimately involved in developing the new concept, the new retail store format – from the look and feel down to the tire and marketing programs – has benefited greatly from consumer and dealer involvement.
The result has been positive; as of mid-April more than 2,000 locations carried the new banner, far more than were badged as Gemini locations – even after the 11 years that the Gemini program existed.
Budzinski said it was an 18-month process – once the Gemini Advisory Board gave its blessing – to overhaul the entire program. Research among Gemini dealers and company stores was conducted, and consumers were studied. The consensus view was the name “Gemini” carried no meaning with anyone, the program was too cumbersome for retailers and it didn’t resonate with buyers, and the entire experience was wholly inconsistent from store to store.
“It (Gemini) was a fragmented dealer/retailer group with an inconsistent message and customer experience,” Budzinski explained.
The name “Tire & Service Network” was settled on, and while that name doesn’t seem very imaginative, that’s exactly the point. The name, as Budzinski said, is simple and straight-forward and carries immediate meaning.
Not so simple and straight-forward was another key element of the makeover.
One headache the stores, the distributors and (ultimately) Goodyear shared was a massive SKU count. Some 6,500 different SKUs were available to the Gemini stores – everything from straight OE replacements to associate and private brands to non-Goodyear product to occasional down-stream specials. Worse yet, Goodyear’s own key brands – Goodyear, Dunlop and Kelly – had SKUs stacked on each other.
Sharp pencils were drawn and the team, Budzinski said, whittled the product screen down to a far more manageable 2,500 SKUs. Gone were associate brands and so-called “price point” tires. The three core brands were organized to play to each other’s strengths and minimize cross-over. Now there were clearly delineated applications for Goodyear products, Dunlop tires and Kelly units.
The backside result of this product rationalization effort was simplified inventories for G3Xpress distributors and Goodyear’s owned DCs, vastly improved fill rates, and increased retail sales of Goodyear’s “G3” brands.
Consistency – in look/feel and programs – was equally complicated. Company-owned locations were more manageable, Budzinski admits, and the individualistic nature of independent locations was a tougher hill to climb. They needed to be convinced that giving up a little of their individuality for the greater good would pay dividends.
A new signage program was developed for the stores, with the old Gemini signs coming down and the new Tire & Service Network signs taking their place. That transition was made easier by making the new T&SN signs the exact same shape and dimensions as the old Gemini signs – and by making the new signs totally free of charge.
Everything from POS materials to training to nationwide warranty programs to uniforms to phone answering scripts were changed, updated or added – all with an eye to bring consistency to every aspect of the T&SN.
One other major change came with an all-new Tire & Service Network website. With the previous Gemini website, the store finder defaulted to company-owned locations first, independents second. The fresh site not only features far more consumer-oriented tire and car care information, the store locator finds the nearest independent dealers first, and company-owned locations second.
Previously, all of the available training was product-focused. The new program has added modules on sales and customer service techniques to the mix, Budzinski said, and more non-product courses may be added in the future.
The goal of all of this is to make T&SN stores “the best place to buy Goodyear.”
What Does All of This Cost?
That would be the Number One question from a dealer, Budzinski said, and the answer is equally simple.
Nothing.
Sure, there are still some administrative fees for national account sales, but these have been cut drastically, he said. Otherwise, there is no monthly membership or franchise fee, and no purchase minimums. On the backside, though, locations are expected to deliver the propensity of their tire sales to G3 brands.
Who qualifies for the T&SN? “Retailers whose strategies are most aligned with ours and where consumers have a 70% chance of leaving with a G3 tire,” Budzinski recounts. Dealers who show a willingness to execute the program – today and tomorrow.
Getting in requires being formally nominated by a Goodyear field sales manager. Each location – it is the location that gets admitted, not an entire dealership business – is personally inspected by a Goodyear representative, and photos are taken for verification. Dealers have to ensure that their locations meet appearance and operational requirements. Each location is regularly visited to make sure it continues to comply.
And separate program agreements are required for each location, not just one per dealer, Budzinski said.
Combined, there are currently 5,000 locations eligible for the program, he said, including those already in place. In all, he feels, the program will end up with about 3,500 or so locations.
Over the next 24 months, all 5,000 potential locations will be considered and reviewed, he said. “We should be at 3,000 dealer locations by 2014 and then we’ll add 100 or so each year for a while.”
At the end of the day, the key, as Budzinski sees it, is to have the company-owned stores and Goodyear dealers working together to present the same face to consumers. In today’s highly charged retail environment, that consistency alone is worth thousands of tire sales.
The program is still fresh and new, so progress is hard to measure reliably, but the feedback from dealers has been highly positive. Budzinski said he was swamped at the Goodyear dealer meeting, where the T&SN was formally introduced.
