Hyundai and Kia sales are revealing a bright spot in ongoing supply chain challenges as Hyundai saw a 7% boost in volume and Kia recorded an October record as volume jumped 12% to produce 58,276 units
At this years Association of National Advertisers (ANA) “Masters of Marketing” conference CMOs and marketers for notable companies gathered from across the country to discuss 2023 strategies and best practices, noting pressure to cut marketing budgets in downturns is a historically losing formula
A TikTok video about a story of a Kentucky coal miner who came straight out of a mine and went right to a University of Kentucky basketball game with his young son is going viral.
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Paul Daly 00:22
Yo, November already has a certain kind of feeling this already. Today we're talking about a bright spot in supply chains, marketing moves for 2023. And a viral coal miner gets the nod.
Kyle Mountsier 00:36
The people really want to know who the word, this is the word, this is the word. I think it's great. I feel like every dealer I'm talking to is just like, let's go. Let's, you know every single one. Let's go. Let's get after it. You know, we're gonna be all right, we're actually going to make it out stronger. You know, whatever it is. Whatever's come in like it's like, Let's go there's just this kind of like it's like that
Paul Daly 01:02
scene that come from Lord of the Rings. Right where he's like, whatever comes through that gate, right? Perfect. Exactly. Oh my goodness. No, no, just even in like pre show conversation prepping the show. You know last night going back and forth sharing some stuff. There's a feel for these last two months of the year. Right it's like palpable Oh, I don't I can't I can't define it yet. And maybe you just said what it is. It's just like this feeling like we're ready for this. Cue the Eminem music. It's cool, right? Yes. Yeah, right.
Kyle Mountsier 01:38
That's right there.
Paul Daly 01:41
We got a couple of things coming in hot one is the creative track at the modern retail conference. November 13. Through 15th in Palm Beach, you can still go hang out with me and Kyle and Baron don't the same to Greg lick Ali pinion, we're going to be teaching a creative workshop track. And there is actually is the special sale going on. Right? If you go as a manager, you can bring your creative, I think for free, I think you can
Kyle Mountsier 02:03
still find that it's like forward slash BOGO. Yet modern retail conference forward slash BOGO.
Paul Daly 02:09
And if you have any questions, just hit us up on social hit us up on our email or whatever, we'll get to it. We'll get you in. Watch the new podcast yesterday. That makes number four. Number four,
Kyle Mountsier 02:20
and we got seven episodes out already. Let's go
Paul Daly 02:24
you know, in a commitment to it's called in the dirt with a so too. So if you search in the dirt with a Soto on Spotify or Apple podcasts, you're gonna find it got a new cover the cover looks really cool. I'm really proud of the cover. I didn't make it.
Kyle Mountsier 02:38
We didn't. Yeah, actually somewhat someone new on our team who you'll get to know because she's gonna start just dropping. Amazing zine.
Paul Daly 02:45
Grab wizardry. Yeah, yeah. The format of the podcast is like in that five minutes to like, what's
Kyle Mountsier 02:52
the longest one so far? Maybe 15? At the most? Yeah,
Paul Daly 02:55
but these are podcasts and conversations we have when we're on the ground with dealers and industry partners, just the ad hoc freestyle and the whole thing. We don't even have an intro. We just get right into it. One minute before we roll, you know, yeah. Yeah, that's it. That's it. So check it out. If you want one of those conversations, and it's easy to see who it is, I think is episode one huge infields is that episode one. Thanks. So
Kyle Mountsier 03:17
see, it's a huge gene or Damon. So one of the other I can't remember which which launch first or probably
Paul Daly 03:24
this isn't in the news but it is in the news that it is the official transition of named National Association of minority auto dealers. Damon Lester it's his first day as a free man. And Eugene has taken the baton and now is in the fight for real for real. So if you follow them on LinkedIn send a little note of congratulations either Daymond or huge Jim because they both deserve a note of congratulations
Kyle Mountsier 03:47
there's Eugene with an H everyone huge English and a you so
Paul Daly 03:51
we actually cover that really early in the in the in the dirt episode. Universe things we talk about. to it, okay, Honda and Kia sales are revealing a get this a bright spot in ongoing supply chain challenges as Hyundai saw a 7% boost in volume and Kia recorded an October record as volume jumped 12% to produce 58,276 units take that out retail deliveries are also up 11% overall to 58,700 Roughly, as Randy Parker, CEO of Honda Motor of America noted demand is still there. And our lineup of EVs contributed to record sales this month.
Kyle Mountsier 04:33
You know what's interesting is they have they actually have a line up. Yeah, they do, which is not which is not every every manufacturer, they have four of them that have accounted for 101% increase. So the seltos the Sorento, De Niro and the Forte all have Evie or B Evie. Hybrid lines in them. So
Paul Daly 04:55
yeah, double double the sales of last year. noted in the automotive news articles that you Genesis is also down 18%. But that's after 22 consecutive months of being up. So they just needed a little inhale,
Kyle Mountsier 05:07
then yeah, they needed a little breath. You know, I think, you know, I look back over the last couple years of the mode of advertising and marketing that has been crushing it in once they've just been all in. And they have, like, the even the energy around their advertising and their video advertising is very forward. It's very young. There's a lot of like, push toward tech, you know, when the when, when some of their models come out, there's a push toward tech, or then they have you know, they did like the hamsters back in the day. And then they did the Weren't they, the ones that had the little, the skeletons and stuff. So it's a very like, it's moving forward. It's pushing the boundaries consistently, of marketing and advertising. And so when you think about that, and you back that into what type of buyer that TV persona is right now, it matches really
Paul Daly 06:08
Gen Z slash millennial move.
Kyle Mountsier 06:10
They've done the work to find that audience and then the walk to Evie is a very short.
Paul Daly 06:18
Yeah, it is. I mean, so we're looking at supply and demand, seeming like they're in a little bit of lockstep right now. On the that's got to feel really,
Kyle Mountsier 06:29
a really nice place to be as secure as a manufacturer, I feel I think it
Paul Daly 06:33
is so so it's great to see some good news coming out of supply chain, it's good to see a company balancing it well. And it's good to see the long term brand marketing of a company being effective when the supply is there, and the market is ready. Speaking of brand marketing, segway
Kyle Mountsier 06:53
Seifried already knew,
Paul Daly 06:55
we almost knew what story was coming next. This is an interesting one. This one's from outside automotive. We're trying to bring some broad outside automotive thinking and then parting it and injecting it into the marketing, automotive marketing minds and CEO execs right now at this year's association of the national advertisers, advertisers Association associate with the Association of national advertisers,
Kyle Mountsier 07:18
they after a whole night of candy last night, it's hard.
Paul Daly 07:23
Well, they had their mess. Their masters of marketing conference, were CMOs and marketers from notable companies gathered from across the country to discuss 2023 strategies and best practices, noting kind of the highlight is noting pressure to cut marketing budgets in downturns isn't historically losing formula. So a couple companies you may have heard of
Kyle Mountsier 07:46
quick real quick, I know that nobody in automotive has considered over the last year into the next year cutting marketing budgets. So this probably isn't irrelevant story, but you can keep going, you know.
Paul Daly 07:59
Lay it on thick laid it off. CEO Bob light ice opened the conference with a warning against cutting marketing to a large audience of members, including execs from little companies like MasterCard, McDonald's, Coca Cola, and many others. He argued that black brands will win when they actively differentiate themselves and defend the productivity of their investments in marketing in uncertain times. So what I hear him saying is, when telling me is that when times get uncertain, the people who stick to the marketing guns and talk about relevant things actually disproportionately win on the other side. That's what I mean, what we call market share. So, and this is what I think is interesting is, and I posted about this on LinkedIn the other day, but
Kyle Mountsier 08:47
a lot of people when they think market share, they only think end results. So business outcomes, so sales or service market share earning a customer base, but you can also gain market share in advertising platforms. So one of the things that everybody was talking about is in q3. Advertisers like Mehta, and so Facebook, Instagram, YouTube primarily saw and Snapchat saw massive downturns in advertising revenue. Now, Amazon was an outlier, they did not see that same change. But when all these platforms are seeing loss in advertising revenue, that tells us that the majority of advertisers are starting to pull back on these platforms, where you can actually gain market share long term, by investing in these platforms when everybody else isn't. You buy, you buy ads at a lower cost and you hit more of your audience with a higher frequency of reach. And because you are exercising and always on strategy, you actually continue that same, that same stream when other advertisers come back because they have to fight for attention that you already have. And so like when you think market share, just don't just think business outcomes, things
Paul Daly 09:58
almost like mind sharing Yeah, like mind share of marketing. That's we didn't talk about the story on the show, but the decision of GM to pull their marketing out of Twitter, when Musk turned over everybody else, it's
Kyle Mountsier 10:13
an advertising headline to, you know, for them, like everybody's talking about it. So they probably did pretty well, but that just mindshare, but Well,
Paul Daly 10:21
I mean, I don't know, man. No one's talking about it anymore. Yeah, I guess we are no, I guess we are. But from the other side. I got to talking about it this morning. So far still. Yeah. Because if you're not GM, guess what, what Kyle just said about market share. It's like, a little bit of a little bit of an open slot key. Put as your baby. Okay, a little more from that. In an effort to our marketers, to rightly,
me that someone put that Twitter your Twitter's your baby, Hyundai, Kia, Twitter's your baby,
Paul Daly 10:53
I can already see the picture coming out of that check tomorrow's email. By the way, if you don't subscribe to our daily email, got replay stuff like that in there every single day. It is the best funnest, most informative email and automotive that you can read in like two or three minutes and laugh on your way to your next email, you can get it. So to.com. Alright, so on the marketing story, in an effort to our marketers to rightly advise leadership, Flora Schultz, Chief Marketing Officer at analytic partners noted pressure to cut budgets and 2023. And said, there's a way to use insights to show the board like your bosses, that cutting your budget will not only harm your business in the short term, but the impact long term is very substantial. She said, if you cut your budget, and your competitor doesn't, you can lose 15% of your business.
Kyle Mountsier 11:43
Go. So if you're a marketer, and you're wondering how to do this, this is actually really easy. You can go look from September to November, at news articles surrounding specifically Coca Cola from the year of the pandemic. So 2020. If you go back and look at news articles surrounding the research done in the market share that they gained over the pandemic because they exercise and always on philosophy. You can you can show you about like, here's how even big box retailers saw gains when others pulled back from marketing spend. Yeah,
Paul Daly 12:17
I mean, we just lived through this. When the pandemic happened. They were a select number of dealers who did not shut everything off, because they already had a mechanism to talk about things other than their inventory. So when we say marketing, we're not talking about inventory as because the quick flip back could be like, well, what am I going to market if I don't have any inventory? We're not talking about that. We're talking about what your dealership believes how you serve the community, talk about your people tell the stories, because that is the thing that actually drives interest. When it comes time to buy a car. And when it comes time to get your car serviced. People do business with people they like we're talking about the big play. We're not talking about inventory ads, there's going to be a lot more on this. But I think taking these insights from outside automotive and starting to think of it if you're an executive, if you're a GM, right? We want to crack your mind open to this. If you're a marketer, like we want to arm you to tell the story in the right way. Because if you're in this audience, we know that you can disproportionately win. I don't have a segue because I don't know if Kentucky's a good basketball team or not. Are they winning?
Kyle Mountsier 13:16
I mean, they normally are but I hate him.
Paul Daly 13:19
All right, well, speaking of disproportionately winning segue.
Kyle Mountsier 13:25
I'm a Duke fan. Duke fan. My dad went to Duke, so I apologize that makes anyone hate me. But you know, just remember back to Christian Laettner in their early 20s In the early 1990s. He has to Yeah, let's talk about tic tac.
Paul Daly 13:40
Not that not that he's holding a grudge. So a TIK Tok video a story about a Kentucky coal miner who came straight out of a mine and went right into the University of Kentucky basketball game with his young son is going viral video features. Coach John Calipari, who grew up in a coal mining fattening telling the story of the man sitting in the stands with his face and red beard blackened by coal dust sitting by his wife and son so he's in the full gear, you can tell he just walked out of the mind. And he's sitting there talking to the Sun enjoying a game and people saw the story. And they started like, outpouring and reacting to want to just really just acknowledge this guy and kind of bless the family like they were restaurants calling say we want to want to give him free meals a dealership called he mentioned which is why we're talking about this a dealership car we want we want to give this guy a car. Right? So um, like if there's nothing more American just to say like, this is just an example of prioritizing your family working really hard, right? And coal mining, right? It's something that is gonna, it's like dirty work. It's day in and day out. But it keeps all the other things that we have going going and then to prioritize your son and just like not worry about what you look like but I'm gonna be there with my son. It's just one of those stories that we had to talk about.
Kyle Mountsier 14:54
I saw I saw this like early this weekend when it first came out and would be like I didn't get a little lump in my throat, you know, I've got a boy. And, you know, it's like, I don't care what you do, whether you sit in an office like we do every single day or whether you work in a coal mine, like it is, it's tough to prioritize family and sometimes you're running and gunning, and especially if you travel a lot, or you're working late. And I know that, you know, there are people in dealerships today that will work till 11 o'clock at night and not see their kids for dinner to put them to bed. And those moments, those times where you get the opportunity to lean into your family are so valuable. And for a coach of a history, history basketball program like Kentucky to call that out. And for a community to come around. It just shows that the spirit around acknowledging families as an important part of the investment that a father or mother can make in their daily daily life is that's all the fields all the goods. Welcome to Tuesday, everyone,
Paul Daly 15:54
welcome to November. Well, look, that's our best shot Tuesday. November is just starting. We have a lot of work to do already got that feel to it. I have a feeling in 60 days you're gonna be like that was a fireball of two months to close the year.