As part of a three-part workshop at the 2009 SEMA Show, Tom Shay of Profits+Plus will help participants determine strategies and tactics they can use to combat their competitors and make 2010 a winning year. Participants will have the opportunity to see how businesses in other industries have successfully, and unsuccessfully, made decisions about their strategies and tactics. Here Shay outlines the foundation of his seminar content.

Do you remember as a child playing a game called “King of the Hill?” Usually it required a high spot of land on which the tallest or strongest kid would stand, whose task was to keep other kids off the high spot. All the other kids playing the game would have to determine a strategy to take the "king's" position.

Perhaps a kid that was comparable in size and strength would directly attack the position. Others would have to select a different strategy, perhaps taking only a small position that flanked the king, but did not directly attack. Still others might wait for a distraction and quickly move to take control of the hill.

And while this is a kid's game, it’s actually a replay of "On War" a book written in the early ‘80's and reportedly the basis for the battle plans of many armies. George C. Scott references the book in the movie “Patton,” and it’s still part of reading material for West Point cadets.

“On War” continues to be relevant today as every business meets ongoing challenges from its competitors. The book explains that success depends on two factors. The first is determining strategy. In business, like “King of the Hill,” if you are the biggest, strongest—or perhaps just have the most money—you can be the one that defends a position.

This strategy won’t work if you’re not the biggest business, or if you don’t have as much money or a name as well-known as a competitor. Likewise, the strategy of someone that can attack the defender would likely require that they have the similar characteristics of the defender.

Experience has shown that too many businesses think that their years of being in business, or their desire allows them to assume the position of the defender or the one being on offense. Neither of these “strengths” are applicable to being in either of these first two positions. And as the book details, it can be fatal for a business to attempt to use a strategy that is not appropriate for them.

The third strategy is one of a flanker. The flanker is one that knows they have to steer clear of both the business that is the defender and the business that is taking the offense position. It is perhaps more appropriate for the flanker to understand that they will not be able to take the position of the king, but should instead work to take their market share.

It would not be appropriate for their business to attempt to become the king of the hill as they do not have the resources or staff to maintain the position.

The fourth strategy is the one for the business that is best equipped to take the guerrilla warrior approach. This business is likely to profit best when they look to take a commanding position in a specialty aspect of the industry.

In addition to the requirement that the proper strategy be taken, the second component is that tactics be determined to implement the strategy. And with the tactics, just like the strategy, they must be correct to achieve success.

Before you visit the SEMA Show, you’ll likely want to sit down, carefully re-examine your business and ask yourself: “what is the proper strategy for my business to be successful and profitable, considering my financial resources, competition, staff, and opportunities within the automotive industry in my community?”

Deciding which of the four strategies is proper for your business, you should then begin to think about how you will carry out your strategy with tactics that will allow you to get your message to the customers that are most likely to be attracted to the strategy your business has taken.

Date: Wednesday, November 4, 2009

Time: 11:00 a.m.—12:00 p.m.

Track: Small Biz Management

Seminar: If Patton Ran Your Business, Part I, II, III

Description: General George S. Patton was an outstanding leader and he had unique ideas about how to lead the troops under his command. During this three-part workshop, Shay will help participants determine the strategies and tactics they will utilize as they combat their competitors and make 2010 a winning year.

Speaker: Tom Shay, Profits+Plus

	Tire-smoking action and total disregard for slip angle make Formula Drift one of the most popular spectator motorsports with young enthusiasts.

It may be the worst economy seen in several generations, but companies are still spending money marketing their brands in motorsports. It’s an idea that might give most CEOs insomnia. Slashing marketing budgets in downturns is custom. But to then spend those fewer dollars in motorsports sponsorships, never a cheap arena to begin with?

Foolhardy.

Not so, say some marketers. For companies that can stomach the risk, downturns provide an opportunity to capture market share at the expense of cautious rivals.

“Motorsports is a very important avenue for us,” says Nick Fousekis, Falken Tire Senior Manager Consumer Marketing. “It's another opportunity to get in front of people that already know, or may not know, our brand. They can see that we're not just a tire manufacturer peddling black, round objects. We're out there. We're active.”

As 2009 opened, the motorsports headlines were not encouraging.

NASCAR entered the year missing major sponsors including Home Depot, Kodak, Enterprise, and Domino’s Pizza, leaving the series with 10 fewer partners than three years ago, according to the Sports Business Journal.

Motor Trend reported that Chrysler would reduce its NASCAR spending by 30 percent, and the Indy Racing League cancelled the Detroit Grand Prix. Audi and Porsche pulled out of American Le Mans, while Subaru, the brand that practically defined the World Rally Championship, withdrew from that series.

Even the rarified air of Formula 1 suffered the exit of Honda’s factory team and key sponsorships from global financial institutions.

But for a company and brand like NOS Energy Drink, motorsports marketing is a no-brainer.

“Everything we do goes into motorsports,” says Tutul Rahman, Brand Manager for NOS Energy Drink. “The only way we grow the brand is by increasing our investment.”

NOS Energy Drink has upped its motorsports exposure by forming a coalition of drivers from NASCAR, drift and rally, including Kyle Busch, Chris Forsberg and Andrew Comrie-Picard.

Rahman says the motorsports presence helped grow the brand more than 50% in 2008. Launched in 2005 through a licensing partnership between Fuze Beverage and Holley Performance Products, owners of Nitrous Oxide Systems, NOS Energy Drink was the sixth best-selling energy drink in the U.S., according to 2008 Nielsen data.

That growth has made the drink maker, now a subsidiary of Coca-Cola, solvent enough to expand into NASCAR sponsorships. For 2009, the company is sponsoring driver Kyle Busch, along with other drivers in other disciplines under a group banner called Team NOS.

The Busch sponsorship includes a 22 oz. plastic bottle, trimmed in the brand’s blue and orange colors and that mimics the look of a nitrous oxide bottle, dubbed the Rowdy Can.

Team NOS also includes Formula Drift pilot Chris Forsberg, and rally driver Andrew Comrie-Picard. Even the popular Chicago-area Mitsubishi tuning shop AMS receives project support from NOS Energy Drink. The AMS crew intends to build a record-breaking Evolution IX for the Bonneville Salt Flats.

The consistent thread through all of the brand’s sponsorships, says Marketing and Lifestyle Manager Ernie Manasala, is a commitment to the brand’s core value: maximum performance.

The NASCAR involvement, however, is a new step forward for NOS Energy Drink.

“[NASCAR sponsorship] is really an evolution of the brand,” Rahman says. “We started out very core and grassroots with Hot Import Nights and Formula D. As the brand grows, our motorsports sponsorships expand as well. Now we’re going into NASCAR and touching millions of people that way.”

And where NASCAR represents an opportunity for NOS Energy Drink to reach mass eyeballs, a smaller series like Formula Drift can offer marketers a more targeted and qualified audience. While a Formula Drift might feel the pain of sponsor withdrawls more acutely than a NASCAR or Indy Racing League, they’re a good sell for brands that want to capitalize on the absence of a competitor.

“[Formula D] gives us a great opportunity to activate on site,” Fousekis says. As one of the series’ three tire manufacturer sponsors, Falken goes big at events: two 53-foot rigs offer four awnings, two used by the pit crew to service five sponsored cars, the other two used for activation, entertainment and hospitality.

	Falken brings a full spread to its motorsports events, including two rigs that facilitate a pit, entertainment/activation, and VIP areas.

If industry research is any indication, Fousekis is on the right path.

A study released by Foresight Research earlier this year probed the depth of motorsports influence on purchasing decisions. According to the study, 43 percent of new car and truck buyers had watched at least one motorsports event in the past year. Fourteen percent had attended an event and 23 percent said that motorsports had at least some influence on their buying decision.

Additionally, 67 percent of those influenced by motorsports said that power and performance was a key message. And 59 percent of those who’d attended a motorsports event learned about a specific make and model from visiting a manufacturer’s display at the event.

The study also found the pervasive influence of “Shouters,” motorsports fans who influence the purchase decisions of others. This group reported giving an average of 10 new vehicle recommendations per year to other people.

“With proper activation, motorsport sponsorships offer a great opportunity for communicating to shoppers in an emotional and rational way, and don’t lose sight of the word-of-mouth recommendations by these Shouters,” says Foresight CEO Steve Bruyn.

The message is clear: motorsports marketing still sells cars and parts.

Even with industry research behind him and other like-minded marketers, Fousekis also has a slight advantage when making his marketing budget case. Racing is in Falken’s roots, he says. Whether testing at Nurburgring or competing in Japan’s Super Taikyu endurance series, company management recognizes the marketing and R&D importance of going racing.

This doesn’t make it an automatic sell with the executives, but they do “understand it and appreciate it," Fousekis says.

In addition to Formula Drift, Falken is also in American Le Mans Series for its second season. Last year the company sponsored a privateer team. This year they’ve brought the program in-house for an abbreviated three-race schedule with a Porsche 911 RS-R in preparation for a full season in 2010.

“Formula D is definitely growing,” Fousekis adds. “It's not just that core group of tuners anymore. That'll help continue its growth, the way it's been going. And bang for the buck—the exposure, the TV program, the fan base that turns out for each event—it's still a fairly affordable series to get some great marketing opportunities.”

Jim Liaw, founder and president of Formula D, knows that it’s natural for companies to buckle down and cut budgets. He’s seen a former major sponsor, Circuit City, file for Chapter 11 and watched other endemic companies scale back sponsorships.

But he’s confident that his series delivers an audience uniquely receptive to performance brands.

“Even with some of our endemic companies that have pulled back, they’re not pulling out,” Liaw says. “They know they need to keep at least one foot in the door and not completely disappear from the scene.”

Although smaller and narrower than a NASCAR audience, Formula Drift offers a focused and targeted fanbase appealing to sponsors.

And some sponsors, like Falken and NOS Energy Drink, have increased their commitment to the series.

“We’re reaching an audience that most motorsports and events are not reaching,” he says. “It’s more targeted, a quality audience, and a younger audience that [companies] are building a brand with. What we lose to [larger race series], we gain in uniqueness of audience.”

It’s an audience that guys like Fousekis are eager to reach. And he believes his fellow marketers need to play a collective part in reaching this group, supporting these events, to help pull out of the economic spin.

“Now is the time that everyone in this industry needs to help continue growth and reignite things, whether that’s doing more motorsports activities or getting grassroots proactive, doing small meets. We need to keep the interest there. Otherwise it may be a different world five, 10 years down the road." — Dan Frio

	Tire-smoking action and total disregard for slip angle make Formula Drift one of the most popular spectator motorsports with young enthusiasts.

It may be the worst economy seen in several generations, but companies are still spending money marketing their brands in motorsports. It’s an idea that might give most CEOs insomnia. Slashing marketing budgets in downturns is custom. But to then spend those fewer dollars in motorsports sponsorships, never a cheap arena to begin with?

Foolhardy.

Not so, say some marketers. For companies that can stomach the risk, downturns provide an opportunity to capture market share at the expense of cautious rivals.

“Motorsports is a very important avenue for us,” says Nick Fousekis, Falken Tire Senior Manager Consumer Marketing. “It's another opportunity to get in front of people that already know, or may not know, our brand. They can see that we're not just a tire manufacturer peddling black, round objects. We're out there. We're active.”

As 2009 opened, the motorsports headlines were not encouraging.

NASCAR entered the year missing major sponsors including Home Depot, Kodak, Enterprise, and Domino’s Pizza, leaving the series with 10 fewer partners than three years ago, according to the Sports Business Journal.

Motor Trend reported that Chrysler would reduce its NASCAR spending by 30 percent, and the Indy Racing League cancelled the Detroit Grand Prix. Audi and Porsche pulled out of American Le Mans, while Subaru, the brand that practically defined the World Rally Championship, withdrew from that series.

Even the rarified air of Formula 1 suffered the exit of Honda’s factory team and key sponsorships from global financial institutions.

But for a company and brand like NOS Energy Drink, motorsports marketing is a no-brainer.

“Everything we do goes into motorsports,” says Tutul Rahman, Brand Manager for NOS Energy Drink. “The only way we grow the brand is by increasing our investment.”

NOS Energy Drink has upped its motorsports exposure by forming a coalition of drivers from NASCAR, drift and rally, including Kyle Busch, Chris Forsberg and Andrew Comrie-Picard.

Rahman says the motorsports presence helped grow the brand more than 50% in 2008. Launched in 2005 through a licensing partnership between Fuze Beverage and Holley Performance Products, owners of Nitrous Oxide Systems, NOS Energy Drink was the sixth best-selling energy drink in the U.S., according to 2008 Nielsen data.

That growth has made the drink maker, now a subsidiary of Coca-Cola, solvent enough to expand into NASCAR sponsorships. For 2009, the company is sponsoring driver Kyle Busch, along with other drivers in other disciplines under a group banner called Team NOS.

The Busch sponsorship includes a 22 oz. plastic bottle, trimmed in the brand’s blue and orange colors and that mimics the look of a nitrous oxide bottle, dubbed the Rowdy Can.

Team NOS also includes Formula Drift pilot Chris Forsberg, and rally driver Andrew Comrie-Picard. Even the popular Chicago-area Mitsubishi tuning shop AMS receives project support from NOS Energy Drink. The AMS crew intends to build a record-breaking Evolution IX for the Bonneville Salt Flats.

The consistent thread through all of the brand’s sponsorships, says Marketing and Lifestyle Manager Ernie Manasala, is a commitment to the brand’s core value: maximum performance.

The NASCAR involvement, however, is a new step forward for NOS Energy Drink.

“[NASCAR sponsorship] is really an evolution of the brand,” Rahman says. “We started out very core and grassroots with Hot Import Nights and Formula D. As the brand grows, our motorsports sponsorships expand as well. Now we’re going into NASCAR and touching millions of people that way.”

And where NASCAR represents an opportunity for NOS Energy Drink to reach mass eyeballs, a smaller series like Formula Drift can offer marketers a more targeted and qualified audience. While a Formula Drift might feel the pain of sponsor withdrawls more acutely than a NASCAR or Indy Racing League, they’re a good sell for brands that want to capitalize on the absence of a competitor.

“[Formula D] gives us a great opportunity to activate on site,” Fousekis says. As one of the series’ three tire manufacturer sponsors, Falken goes big at events: two 53-foot rigs offer four awnings, two used by the pit crew to service five sponsored cars, the other two used for activation, entertainment and hospitality.

	Falken brings a full spread to its motorsports events, including two rigs that facilitate a pit, entertainment/activation, and VIP areas.

If industry research is any indication, Fousekis is on the right path.

A study released by Foresight Research earlier this year probed the depth of motorsports influence on purchasing decisions. According to the study, 43 percent of new car and truck buyers had watched at least one motorsports event in the past year. Fourteen percent had attended an event and 23 percent said that motorsports had at least some influence on their buying decision.

Additionally, 67 percent of those influenced by motorsports said that power and performance was a key message. And 59 percent of those who’d attended a motorsports event learned about a specific make and model from visiting a manufacturer’s display at the event.

The study also found the pervasive influence of “Shouters,” motorsports fans who influence the purchase decisions of others. This group reported giving an average of 10 new vehicle recommendations per year to other people.

“With proper activation, motorsport sponsorships offer a great opportunity for communicating to shoppers in an emotional and rational way, and don’t lose sight of the word-of-mouth recommendations by these Shouters,” says Foresight CEO Steve Bruyn.

The message is clear: motorsports marketing still sells cars and parts.

Even with industry research behind him and other like-minded marketers, Fousekis also has a slight advantage when making his marketing budget case. Racing is in Falken’s roots, he says. Whether testing at Nurburgring or competing in Japan’s Super Taikyu endurance series, company management recognizes the marketing and R&D importance of going racing.

This doesn’t make it an automatic sell with the executives, but they do “understand it and appreciate it," Fousekis says.

In addition to Formula Drift, Falken is also in American Le Mans Series for its second season. Last year the company sponsored a privateer team. This year they’ve brought the program in-house for an abbreviated three-race schedule with a Porsche 911 RS-R in preparation for a full season in 2010.

“Formula D is definitely growing,” Fousekis adds. “It's not just that core group of tuners anymore. That'll help continue its growth, the way it's been going. And bang for the buck—the exposure, the TV program, the fan base that turns out for each event—it's still a fairly affordable series to get some great marketing opportunities.”

Jim Liaw, founder and president of Formula D, knows that it’s natural for companies to buckle down and cut budgets. He’s seen a former major sponsor, Circuit City, file for Chapter 11 and watched other endemic companies scale back sponsorships.

But he’s confident that his series delivers an audience uniquely receptive to performance brands.

“Even with some of our endemic companies that have pulled back, they’re not pulling out,” Liaw says. “They know they need to keep at least one foot in the door and not completely disappear from the scene.”

Although smaller and narrower than a NASCAR audience, Formula Drift offers a focused and targeted fanbase appealing to sponsors.

And some sponsors, like Falken and NOS Energy Drink, have increased their commitment to the series.

“We’re reaching an audience that most motorsports and events are not reaching,” he says. “It’s more targeted, a quality audience, and a younger audience that [companies] are building a brand with. What we lose to [larger race series], we gain in uniqueness of audience.”

It’s an audience that guys like Fousekis are eager to reach. And he believes his fellow marketers need to play a collective part in reaching this group, supporting these events, to help pull out of the economic spin.

“Now is the time that everyone in this industry needs to help continue growth and reignite things, whether that’s doing more motorsports activities or getting grassroots proactive, doing small meets. We need to keep the interest there. Otherwise it may be a different world five, 10 years down the road." — Dan Frio

Devin Hart

CADNA Automotive Inc.’s founder and chairman of the board David Rognlien has reached an agreement with Devin Hart, the company’s president and CEO, for Hart to acquire a significant ownership stake in the company. Specific terms of the buy-sell agreement were not disclosed. CADNA Automotive is an automotive aftermarket supplier and licensee of well-known premium brands Prestone, Autolite, FRAM and proprietary brand ARMOR MARK.

"Autoworld Radio"—a live, three-hour talk show on Sundays, 5:00 p.m.–8:00 p.m., on The National Radio Network—has expanded its reach through the Genesis Communication Network (GCN). The show is now available through GCN online, and listeners have access to on-demand play, archives of all programs and the availability of a free "AutoWorld" podcast. Hosted by Bob Long for 17 years, "AutoWorld" is devoted to America’s love affair with the automobile and reaches a combined audience of more than 1.4 million avid listeners each week.

The Car Care Council received the top Grand Award for its www.CarCare.org website from the 2009 Awards for Publication Excellence (APEX), an international competition for writers, editors, publications staff and business and nonprofit communicators. CarCare.org was created as an information resource for consumers, industry professionals and media, a core element of the “Be Car Care Aware” consumer education campaign.

Mike Godson

Mike Godson was named the 2009 Educator of the Year during the North American Council of Automotive Teachers (NACAT) Conference held recently at Central Piedmont Community College in Charlotte, N.C. Each year Mitchell 1 recognizes one of the nation’s top teachers for excellence in automotive repair instruction.

Godson was presented with a check for $500 and a recognition certificate. He is currently head of the automotive department at Clark College in Vancouver, Washington. He is also a Toyota Technical Education Network (T-TEN) instructor, a chairperson on the Toyota T-TEN National Advisory Council, a National Automotive Technician Education Foundation (NATEF) evaluation team leader and a Washington Department of Ecology authorized emissions specialist.

eXtéresAUTO appointed Russell Grant to the newly created position of national sales director. He will spearhead the expansion and training of eXtéresAUTO’s national sales force and the adoption of the company’s innovative SEO and total search asset management (SAM) solutions by dealerships across the United States. Grant brings 16 years of experience in dealership sales and training.

The Petersen Automotive Museum will host two panels of professional automotive designers from two different generations who will share their views on what influence California culture has had on their work and the auto industry as a whole. Panel discussions run in conjunction with California Car Design: Local Style, Global Influence, currently on exhibition at the Petersen Automotive Museum through February 7, 2010. For more information, visit www.petersen.org.

If you’re still on the fence about exhibiting at the 2009 SEMA Show, take heart, great space is still available.

Although more than 1,300 companies got a jump on the action, there is still fantastic space available in each of the Show sections. Since the priority booth space selection, nearly 100 additional companies have signed up for the Show—and you can too.

Sign up to exhibit at the 2009 SEMA Show today.

LED lighting, in-cabin electronic solutions, seat cooling and a good old-fashioned shifter kit were among the new interior accessories most popular with buyers at the 2008 SEMA Show. SEMA used a new digital tracking method at the 2008 New Products Showcase, allowing buyers to scan product barcodes and receive product details via printout or e-mail.

Manufacturers entered 102 new products in the Best New Interior Accessory category, and buyers made more than 1,500 scans requesting additional product information. Who was doing all that scanning? Retailers logged more than 9,400 scans; warehouse distributors, 3,900; repair/service/installers, 3,900; and builders/fabricators, 3,500.

Following are the top 10 interior accessory products that were of most interest to buyers:

1: AZENTEK SmartMirror Replaces OEM rearview mirror and offers advanced GPS navigation and hands-free Bluetooth calling.
2: Hurst Comp Stick Kit Kit includes CNC-machined aluminum console plate, and polished stainless steel stick sleeve and knob featuring Hurst emblem.
3: Omix-Ada/Rugged Ridge All-Terrain Jeep Floor Liners Liners combine features of deep rib mats and "traditional" liners, constructed of injection-molded TPE.
4: Autonet Mobile Router turns car into a WiFi hotspot allowing multiple passengers to connect WiFi-enabled gadgets to wireless Internet connection.
5: NRG Innovations Steering Wheel Quick Tilt w/Lock Steering wheel unit tilts in one quick motion for easy vehicle entrance and exit. Supplied lock secures the car when tilt is activated.
6: PlasmaGlow LumaFlex Flexible LED Strips Available in 1- and 3-inch lengths. Can be connected together for a longer strip or cut shorter to fit any space.
7: PLX Devices DM-100 OBD-II Upload any gauge design to match existing instrument cluster. Obtain real-time sensor data for any 1996-and-older vehicle. Up to 32 additional sensors can be daisy-chained. Data-logging, playback and PC interface also available.
8: Rissler R&D Mobile Office Extension (MOE) Temporary portable vehicle mount that securely mounts a laptop and other electronics inside any vehicle. Fully removable.
9: Seat Comfort Systems Seat Cooling System Four-fan cooling with high/low switch. Installs under seat cover to provide evaporative cooling to occupant.
10: PlasmaGlow UltraFlex LED Dome Lights Provide the intensity of up to 24 LEDs and are over 20 times brighter than stock dome lights.