CP: In some cases, very much so. The average farmer knows precisely what horse power machine he wants when he goes into the dealership.  But, if you were to ask the average consumer about horse power, you would get a very odd look!  They want solutions to problems.

It is more about cup-holders than carburettors!  And it has taken us 30 years to put cup-holders on all our products!  Many agricultural salespeople find it a really difficult transition to make. Yet many of our dealerships have gone from selling 70% agricultural to 70% yard and leisure in the last decade, as the suburbs have swallowed rural hinterlands.

“For consumers it really matters what the store looks like.”

RTM: So you need to help the dealers reach this new market. How do you do that?

CP: Our consumer research showed that for consumers it really matters what the store looks like.  The farmers don’t notice, they make a bee-line for what they want and then get out. But consumers are used to malls!  They have told us that, with some dealers, they just don’t feel they have been invited in.

You know the four Ps of marketing – price, place, product and promotion?  We know that even if you have the right products, at the right price and with the right promotions, everything will come to naught unless the place is right.

So we have just come up with a new retail format and store lay out which makes the dealership a more welcoming and less intimidating place.  It is a very flexible format that we can adapt according to the dealer’s business mix and to the fact that most of those who sell only to the consumer have to sell several different brands to create enough sales.

RTM: How are you introducing this and who gets to pay for it?

CP: We have paid for the initial design, but it is up to the dealer to take the plunge on this. We have to convince them – they are not franchises.   We are pioneering it with eight dealers.  It is too early in the process to see the impact on sales, but we are expecting dealers to have a significant lift from changing the retail experience for consumers. We will use testimonials from these dealers to launch the programme to the other dealers.

We are also encouraging dealers to sell more to women. We held clinics for women last year where we invited them to come in and learn about lawn care and all the different attachments. Dealers advertised on local radio, in newspapers and did some mailings. We were very pleased and surprised by the response.  They are very interested in coming in and trying it out themselves and feeling that they were using the equipment in the right way.

Finally, we help a lot with sales training. But we do find that some of the salespeople who are used to selling to farmers just aren’t ready to make the jump to consumers. Some dealers tell us they do better bringing in totally new sales people.  Retention remains a big issue and we hope the new format will make the dealerships a more pleasant place to work.

RTM: Cheryl, your role really involves working closely with the dealer network. How do you do that? And how is the dealer network changing?

CP: At least three times a year, I take to the road for a week and go visiting. I have just come back from seeing seven dealers. Frankly, it is the only way to keep in touch with the real world!

We are seeing consolidation now in the dealer network. Some 15-20 years ago they were almost all single stores. Now, they often own 3 to 5 stores and we expect that trend to continue. Frankly, we like it. You get a change of philosophy – they manage their dealership like a business and less like people who run a dealership because it is where they want to go to work everyday.

“Women influence about 80% of purchases.”

RTM: How much will they share data and insights?

CP: There is a wonderful dealer organisation which shares a lot.  Whilst they won’t reveal bottom line profits, they generally like to share and help each other out.  We collect financial data on a monthly basis which enables them to compare how they are doing with their peer group who have similar sales levels.

RTM: So it is all about relationships?

CP: Yes…  building long-term relationships.  We feel it is important to work in concert with the dealers, piloting schemes and using testimonials, rather than simply telling them how things will be.

Secondly, we believe very strongly in the power of consumer research and all our recent initiatives have been based on that. It is what guides us.

Take aways

John Deere builds trust with its dealers by working with them closely and patiently.

Thanks to indepth consumer research, John Deere has good insights into what its consumers want

The company actively goes out and meets its dealer network