Is the Marine Industry dead or just sleeping?
I've had several people ask why I had not started a discussion on marketing and my reply was simple. No one right now wants to talk marketing in fact builders are in survival mode and are not looking forward toward growth potential or marketshare. They have field inventory to worry about and payroll.
Now all of that said, is this induatry dead or are these owners asleep at the switch? There is an old saying " If you don't know where you're going; any road will get you there." Seems to me no one know where they are going, less than a hand full of builders have shown any real attempt at what I would call marketing. Not "sales" mind you but real nuts & bolts marketing, trying to position their brand for the future and set themselves aprt from others.
Some said "Well there are budgets to consider", yeah I understand all that. But if you don't budget for it it won't happen! Am I preaching to the choir or are there any decenting views out there?
Now all of that said, is this induatry dead or are these owners asleep at the switch? There is an old saying " If you don't know where you're going; any road will get you there." Seems to me no one know where they are going, less than a hand full of builders have shown any real attempt at what I would call marketing. Not "sales" mind you but real nuts & bolts marketing, trying to position their brand for the future and set themselves aprt from others.
Some said "Well there are budgets to consider", yeah I understand all that. But if you don't budget for it it won't happen! Am I preaching to the choir or are there any decenting views out there?
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Replies to This Discussion
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Permalink Reply by Jim Sabia on -
I think manufacturers are in survival mode right now and rightfully so. As a dealer I see this "horrible economy" as an opportunity. I am growing market share and working on expansion as we speak. Some friends of mine are doing the same while the majority sits like a deer in the head lights. I heard on the radio yesterday that the 12 key ecomic indicators are pointing in an upward direction in in all recorded economic history, when these indicators pointed upward, the recession ended in 4 months! Things will get better... I'm banking on it.
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Permalink Reply by Ken Stofflet on -
I have no dought that it will get better, the real question is when and what will the industry landscape look like? I'm glad to hear you are gaining market share and working on expansion. Some of my builder friends need to work on these very things too. There is no question most if not all are in survival mode in one form or another, I had been waiting for the cleansing of brands for years; there is just way to much capacity and far to many brands.
All good things come to an end and this industry had a great ride for a long time. It will rise again but with a much smaller foot print. With more good brands than good dealers and lately consumers; I would hope we will see far fewer brands and only strong dealers in the future with realistic margins for all concerned. Best of luck to you in your expansion. -
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Permalink Reply by Mark Kellum on
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Ken,
I cannot agree with you more. Marketing is not only about spending money. It is planning. You cannot run a business without goals. You cannot reach goals without a plan. Whether it is a plan to build 400 boats or 2 a manufacturer still needs to know what are the strategies, tactics and establish the sales channels that will achieve their goals.
I have been fortunate enough to have been engaged by a new boat manufacturer that has been in the marine industry for over 40 years in various guises and now sees the opportunity to build boats for the first time, strictly on a local level. Their goal is to build and sell a realistic amount of boats with true value positioning. The quality and design is as good as I have seen in their market niche and they are able to take advantage of their low overhead to take market share on a local level. We have created a marketing plan that is simple, inexpensive and takes advantage of the current marketing tactics and strategies that keep costs down and buzz high.
There is opportunity out there, even for big brand boat builders, to take advantage of the present down turn and leverage the low cost of regional and local media as well as the new online media opportunities. The manufacturer and their Dealers must recognize that they must work hand-in-hand to develop marketing plans to drive the industry and take control of their own destinies. It is a big shift. But for now and until the foreseeable future each boat sale is going to be a "value" proposition and will take more time and relationship building than ever.
Ken, I am with you in the choir and singing as loud as I can. -
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Permalink Reply by Jim Sabia on
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UPDATE: Both boat and RV sales have increased for us fairly steadily since the beginning of the year. Margins are a bit lower than normal but demand is increasing which is a good thing! Now for the bad news... RETAIL FINANCING IS THE SAME IF NOT WORSE! I wish bankers could loosen up just a little bit. If we could finance deals with a true 20% down and a credit score of 660 or above my sales would double!!!
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