Apple

Penske Automotive launched a product specialist program in one of its stores last month to try to increase sales and improve customer satisfaction. The name or location of the store is not being revealed. The concept that the company is using closely emulates the “genius” product specialists that Apple uses at its retail stores.

Tony Pordon, the executive vice president of investor relations and corporate development, says that the idea to initiate such a scheme came from the general manager of the test store. She is trying to creatively drive more people to her location and to improve customer satisfaction ratings at the dealership. Pordon would only say that a high-volume foreign brand is sold at the store.

Penske Automotive is not the first company to test out product specialists in its stores. BMW also took inspiration from Apple for its BMW Genius Everywhere program, which was launched in the United Kingdom and has spread throughout Europe. The vehicle manufacturer requires its dealerships to hire young, tech-savvy people to answer inquiries about its vehicles. BMW is expected to bring this program to the United States early next year.

Penske Automotive supports BMW Genius Everywhere, as well as sells the manufacturer’s vehicles, but Pordon says that its product specialist initiative is separate. The company owns 140 dealerships, but has only hired two product specialists. Pordon says that energetic, tech-savvy people who are willing to embrace changes in technology are ideal candidates for future product specialists. The company wants people who understand product details and have robust communication skills.

Pordon explained that Penske Automotive product specialists will greet customers, go on test drives and do vehicle walk-arounds before a salesperson begins to negotiate a price with the customers. The goal is to meet the high expectations of customers and provide a better, faster experience. Emulating the tech-savviness that other businesses have is one way to accomplish this goal, and that is why this program has been initiated.

He also noted that this is a lower-cost way to boost store sales, despite the upfront cost of hiring product specialists, because it will lead to more gross and increase profits. The management team will examine the initiative and make adjustments as necessary, such as having the product specialists do the sales side of the business as well. If the program works, Penske Automotive will consider launching it at other dealerships.

 

Apple, Inc. recently launched the iOS7, which is an enhanced version of the original iPhone operating system and can now interface not only with iPhones, iPads and iPods, but the new Apple iTunes Radio as well. The iTunes Radio functions in the same manner as Spotify and Pandora; it is a free radio that lets users choose their own stations and create personal playlists of their favorite genres and songs. Additionally, iTunes Radio listeners have the ability to purchase any song they listen to since the songs are linked to the iTunes store.

To help launch iTunes Radio, Apple chose Nissan as its first automobile launch partner. Just as the free versions of other Internet radio stations contain advertisements, iTunes Radio will also have advertised content and much of it will be Nissan-specific. New models will be featured and Nissan will use iAd, a marketing ploy that allows advertisements to be directly inserted into various apps. The exclusive partnership also means that users will be privy to unique video as well as audio content on all of their Apple devices: the iPhone, iPad, iPod touch, Apple TV and Mac.

Nissan, now partnered with Renault, is the sixth largest automobile manufacturer in the world. Its original vehicles were called Datsuns, which enjoyed huge popularity, particularly their line of trucks. Today they have a wide variety of car models, including a luxury model line called Infiniti and an electric model called LEAF. The new exclusive partnership with Apple’s iTunes Radio is bound to exponentially raise awareness for the Nissan brand even without the exclusive and targeted Nissan ads on the radio stations. Apple, Inc., after all, is one of the most recognized brand names in the world with millions of customers who already have intense brand loyalty to all things Apple.

The new iOS7 technology that fuels the iPhone Radio will initially be available in the 2014 Nissan Rogue compact SUV, the all-new 2014 Nissan Versa Note and the hot-selling Nissan LEAF electric vehicle. These are currently the only vehicles in the world that will play iTunes Radio in the car.