At Toyota Financial Services, we partner with Toyota dealers by providing innovative programs – like

Business Solutions which offers special benefits to your business customers – to help increase sales,

customer retention, and dealership success. For more information on this and other programs we offer

to help you reach and exceed your sales goals, please contact your Area Sales Manager.

Toyota Financial Services Solutions that move your business forward.

Toyota Financial Services is a service mark of Toyota Motor Credit Corporation and Toyota Motor Insurance Services, Inc.

Partnership Drives Success.

“Toyota Financial Services is similar to advance scouts for

major league baseball teams… they provide the tools and

information necessary to help our team garner better results,

save time, and improve satisfaction, which is crucial in today’s

competitive market.”

Doom and gloom are in the room. But does that mean Toyota’s retail sales professionals are destined to fall under the economic downturn’s evil spell? John Mathews of Pat Lobb Toyota of McKinney (Texas) and Mike Hankes of Scion of Braintree (Mass.) think not. Rather than take cover in a bunker, they’re reaching out with low-cost, high-impact grassroots marketing that connects with customers—whether they’re looking to buy now or somewhere down the road. If you’re in need of inspiration, read on. What follows is proof that optimism, enthusiasm, creativity and good old-fashioned hard work can prevail, no matter what the market holds in store.

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Negativity Creativity

Doom and gloom are in the room. But does that mean Toyota’s retail sales professionals are destined to fall under the economic downturn’s evil spell? John Mathews of Pat Lobb Toyota of McKinney (Texas) and Mike Hankes of Scion of Braintree (Mass.) think not. Rather than take cover in a bunker, they’re reaching out with low-cost, high-impact grassroots marketing that connects with customers—whether they’re looking to buy now or somewhere down the road. If you’re in need of inspiration, read on. What follows is proof that optimism, enthusiasm, creativity and good old-fashioned hard work can prevail, no matter what the market holds in store.

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Negativity Creativity

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Pat Lobb toyota of McKinney

By Dan MillerPhotographs by Paul S. Howell

Pat Lobb Toyota of McKinney, Texas, is defying gravity.

At a time when many in the car business are being

buffeted by the downward forces of a slumping economy,

this two-year-old suburban Dallas store is flying high—

with even full-size Tundra pickups moving off their lot at

a record pace.

What’s the wind beneath their wings? Grassroots

marketing, and lots of it.

“I can’t sit here and tell you that we’re the fastest

growing open point Toyota dealership in the country

because of grassroots marketing,” says General Manager

John Mathews. “I can’t quantify it. But I sure like the

results. And I’m not going to stop.”

While it might not be possible to prove a direct cause-

and-effect relationship, the circumstantial evidence is

compelling. Mathews says the dealership spends $30,000

to $40,000 per month on grassroots marketing. Data

capture, a standard feature of their local events, has fed

over 4,000 names into their customer relations database.

Bottom line: Pat Lobb Toyota of McKinney retailed 3,321

new vehicles in 2008.

One more significant fact: Grassroots marketing

accounts for 20 percent of the dealership’s marketing

dollars. Within a year or two, Mathews predicts it will be

at least 50 percent.

“When Toyota awarded us this franchise, they asked

us to protect and market to this PMA (Primary Market

Area),” says Mathews. “That’s our job and that’s what

we’re doing. Grassroots marketing allows us to target who

we talk to.”

Like most strategies, this one grew out of necessity.

When Dealer Principal Pat Lobb and Mathews opened

their store in the heart of truck country, there were only

160 Tundras registered in their PMA. The task at hand:

establish a foothold on the domestic truck sellers’ deeply

entrenched turf.

“We knew that literally 100 percent of our truck sales

would have to be conquests and we knew domestic truck

owners are tremendously loyal,” Mathews says. “We knew

they weren’t going to just roll up to the dealership. For them, it

would be like consorting with the enemy. So we had to go to

them, at places where truck buyers were likely to congregate,

and get to know them as people, not salespeople. We had to

take a more powerful and personal approach.”

Community Relations Manager Stephane Burress,

originally hired as the dealership’s truck champion, led the

charge. He tested the waters with a few small events in fall

2006, such as a food fair fundraiser for the local high school’s

marching band. In 2007, J.C. Penney invited the dealership

to participate in its Earth Day festivities at its corporate

headquarters. Burress went beyond his Tundra focus and

brought a Prius and Camry Hybrid to show and tell to some

5,000 employees.

“That’s when the grassroots network really started to grow

on its own,” says Burress. “It just ballooned. It went from a

volunteer thing to a big part of my job.”

A year later, grassroots marketing became Burress’

full-time job, coordinating nearly 100 events between March

and October alone. You name it, he’s done it—from golf

tournaments to high school football games to county fairs to

These Grassroots Are Greener The dealership’s goal is to replace all traditional advertising with grassroots marketing and lead management. “People are constantly bombarded by messages,” says Stephane Burress, community relations manager and truck champion. “Top-down mediums such as television, radio and the Internet are overcrowded and full of noise that we’ve conditioned ourselves to tune out. When you stop marketing from the top down and start marketing from the bottom up, from the roots, you tap into the channel with the least competition. Make it personal, make it one-on-one, and your message will resonate.”

10K runs. Mathews refers to his grassroots guru as “a rock

star in the community.”

Some of the events are broad based. For example,

“Roundup on the Range” is an Old West-themed family

friendly event replete with chuck wagon cooking, horses,

Western music and 10,000 attendees.

Other events are more tightly targeted, like quarterly

contractor gatherings at the four local Home Depot stores.

“We’re talking about the construction workers, the

roofers, the plumbers, the electricians—guys who really

need trucks,” says Burress. “They’ve been driving domestic

trucks since they were 16. Even with all the money

Toyota spent launching the Tundra, many of them still

aren’t aware that we have a big truck that can tow 10,000

pounds and carry a two-ton payload. We’re going to miss

this market unless we put the truck out in front of them.”

That means far more than simply setting up a static

display of a couple of Tundras at a promising community

locale. It means hanging out with the people who are there,

answering their questions and giving them an opportunity to

Continued on page 10

big businesscommunity outreachgenerates

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Pat Lobb toyota of McKinney

By Dan MillerPhotographs by Paul S. Howell

Pat Lobb Toyota of McKinney, Texas, is defying gravity.

At a time when many in the car business are being

buffeted by the downward forces of a slumping economy,

this two-year-old suburban Dallas store is flying high—

with even full-size Tundra pickups moving off their lot at

a record pace.

What’s the wind beneath their wings? Grassroots

marketing, and lots of it.

“I can’t sit here and tell you that we’re the fastest

growing open point Toyota dealership in the country

because of grassroots marketing,” says General Manager

John Mathews. “I can’t quantify it. But I sure like the

results. And I’m not going to stop.”

While it might not be possible to prove a direct cause-

and-effect relationship, the circumstantial evidence is

compelling. Mathews says the dealership spends $30,000

to $40,000 per month on grassroots marketing. Data

capture, a standard feature of their local events, has fed

over 4,000 names into their customer relations database.

Bottom line: Pat Lobb Toyota of McKinney retailed 3,321

new vehicles in 2008.

One more significant fact: Grassroots marketing

accounts for 20 percent of the dealership’s marketing

dollars. Within a year or two, Mathews predicts it will be

at least 50 percent.

“When Toyota awarded us this franchise, they asked

us to protect and market to this PMA (Primary Market

Area),” says Mathews. “That’s our job and that’s what

we’re doing. Grassroots marketing allows us to target who

we talk to.”

Like most strategies, this one grew out of necessity.

When Dealer Principal Pat Lobb and Mathews opened

their store in the heart of truck country, there were only

160 Tundras registered in their PMA. The task at hand:

establish a foothold on the domestic truck sellers’ deeply

entrenched turf.

“We knew that literally 100 percent of our truck sales

would have to be conquests and we knew domestic truck

owners are tremendously loyal,” Mathews says. “We knew

they weren’t going to just roll up to the dealership. For them, it

would be like consorting with the enemy. So we had to go to

them, at places where truck buyers were likely to congregate,

and get to know them as people, not salespeople. We had to

take a more powerful and personal approach.”

Community Relations Manager Stephane Burress,

originally hired as the dealership’s truck champion, led the

charge. He tested the waters with a few small events in fall

2006, such as a food fair fundraiser for the local high school’s

marching band. In 2007, J.C. Penney invited the dealership

to participate in its Earth Day festivities at its corporate

headquarters. Burress went beyond his Tundra focus and

brought a Prius and Camry Hybrid to show and tell to some

5,000 employees.

“That’s when the grassroots network really started to grow

on its own,” says Burress. “It just ballooned. It went from a

volunteer thing to a big part of my job.”

A year later, grassroots marketing became Burress’

full-time job, coordinating nearly 100 events between March

and October alone. You name it, he’s done it—from golf

tournaments to high school football games to county fairs to

These Grassroots Are Greener The dealership’s goal is to replace all traditional advertising with grassroots marketing and lead management. “People are constantly bombarded by messages,” says Stephane Burress, community relations manager and truck champion. “Top-down mediums such as television, radio and the Internet are overcrowded and full of noise that we’ve conditioned ourselves to tune out. When you stop marketing from the top down and start marketing from the bottom up, from the roots, you tap into the channel with the least competition. Make it personal, make it one-on-one, and your message will resonate.”

10K runs. Mathews refers to his grassroots guru as “a rock

star in the community.”

Some of the events are broad based. For example,

“Roundup on the Range” is an Old West-themed family

friendly event replete with chuck wagon cooking, horses,

Western music and 10,000 attendees.

Other events are more tightly targeted, like quarterly

contractor gatherings at the four local Home Depot stores.

“We’re talking about the construction workers, the

roofers, the plumbers, the electricians—guys who really

need trucks,” says Burress. “They’ve been driving domestic

trucks since they were 16. Even with all the money

Toyota spent launching the Tundra, many of them still

aren’t aware that we have a big truck that can tow 10,000

pounds and carry a two-ton payload. We’re going to miss

this market unless we put the truck out in front of them.”

That means far more than simply setting up a static

display of a couple of Tundras at a promising community

locale. It means hanging out with the people who are there,

answering their questions and giving them an opportunity to

Continued on page 10

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10 actually test drive the product. And it

also means collecting detailed contact

information so the dealership’s sales

force can follow up appropriately.

To help handle the load, Burress

assembled a team of high school

students who greet prospects, gather

data and dispense Toyota-logoed

giveaways. That frees up Burress to

focus on the test drives, sometimes

with the help of front-line salespeople.

“We’ve created a culture where our

people want to work grassroots events,”

says Mathews. “I hear other general

managers say it’s unfair to ask a commission salesperson to

spend half a day where they’re not going to sell a car. But as I

see it, it’s even more unfair to have a salesperson stand around

a dealership for half a day and not talk to anyone. This is all

about building a pipeline. We can collect 400 pieces of data at

one event. That’s equal to 14 days at the dealership. The more

people you talk to, the more cars you sell.”

But it’s not just the quantity

of customer contacts that matters.

Mathews stresses that the real power of

grassroots marketing lies in the quality

of the interaction.

“Most customers these days don’t

walk onto a dealership lot until they’ve

put on their body armor,” he says.

“They see a salesperson as a bad guy

with bad intentions. But when you

get away from the dealership with the

product in an informal setting, the

body armor comes down and they’re

just looking for someone who will take

care of them. The psychology of this has been so effective

for us.”

“I scratch my head and wonder why everyone isn’t doing

this,” he adds. “It’s personal. It’s relationship building.

People buy from people. How valuable is it to be a car dealer

and have customers think you’re the good guy? How do you

put a price tag on that?”

Continued from page 9

We can collect 400 pieces of data at one event. That’s

equal to 14 days at the dealership.

John MathewsGeneral Manager

Pat Lobb Toyota of McKinney

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A Boy’s ToyScion of Braintree (Mass.) guru Mike Hankes poses in front of his pride and joy: an xB Release Series 5.0—No. 9 of 2,500 produced. Hankes’ enthusiasm for the product fuels his creativity when it comes to marketing. The dealership relies almost exclusively on grassroots events to build the brand.

One for the Record BookA Toyota Tundra tows a train of seven hay-lined 14-foot trailers loaded with 261 “Roundup on the Range” revelers, setting a Guinness World Record for the largest hayride based on the number of passengers.

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10 actually test drive the product. And it

also means collecting detailed contact

information so the dealership’s sales

force can follow up appropriately.

To help handle the load, Burress

assembled a team of high school

students who greet prospects, gather

data and dispense Toyota-logoed

giveaways. That frees up Burress to

focus on the test drives, sometimes

with the help of front-line salespeople.

“We’ve created a culture where our

people want to work grassroots events,”

says Mathews. “I hear other general

managers say it’s unfair to ask a commission salesperson to

spend half a day where they’re not going to sell a car. But as I

see it, it’s even more unfair to have a salesperson stand around

a dealership for half a day and not talk to anyone. This is all

about building a pipeline. We can collect 400 pieces of data at

one event. That’s equal to 14 days at the dealership. The more

people you talk to, the more cars you sell.”

But it’s not just the quantity

of customer contacts that matters.

Mathews stresses that the real power of

grassroots marketing lies in the quality

of the interaction.

“Most customers these days don’t

walk onto a dealership lot until they’ve

put on their body armor,” he says.

“They see a salesperson as a bad guy

with bad intentions. But when you

get away from the dealership with the

product in an informal setting, the

body armor comes down and they’re

just looking for someone who will take

care of them. The psychology of this has been so effective

for us.”

“I scratch my head and wonder why everyone isn’t doing

this,” he adds. “It’s personal. It’s relationship building.

People buy from people. How valuable is it to be a car dealer

and have customers think you’re the good guy? How do you

put a price tag on that?”

Continued from page 9

We can collect 400 pieces of data at one event. That’s

equal to 14 days at the dealership.

John MathewsGeneral Manager

Pat Lobb Toyota of McKinneyto

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A Boy’s ToyScion of Braintree (Mass.) guru Mike Hankes poses in front of his pride and joy: an xB Release Series 5.0—No. 9 of 2,500 produced. Hankes’ enthusiasm for the product fuels his creativity when it comes to marketing. The dealership relies almost exclusively on grassroots events to build the brand.

One for the Record BookA Toyota Tundra tows a train of seven hay-lined 14-foot trailers loaded with 261 “Roundup on the Range” revelers, setting a Guinness World Record for the largest hayride based on the number of passengers.

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Mike Hankes thrives on new ideas to promote his

dealership. So when the Scion guru at Scion of

Braintree, Mass., ran out of ideas, he turned that into an

idea, too—perhaps his most innovative ever.

“I like to do my planning six to nine months in

advance,” he says. “A year ago, I was filling out the

calendar for 2008 and, when I got to April, I couldn’t

come up with anything. So I just put a question mark in

the book and called it the ‘Mystery Event.’

“Later, I was joking around with Steve Steniford, a

wonderful promoter who helps us with our bigger events,

saying we should just call it the ‘Mystery Event.’ And then we

thought, ‘Hey, wait a minute. That’s a pretty interesting idea.’

We just ran with it.”

How did it work? Hankes started by sending out

online invitations to his e-mail list of Scion owners. The

details were limited to a specific time and date to show

up at the dealership, with the first 50 to respond gaining

entry. The spots went quickly.

“They didn’t know where we were going or what we were

going to do until we got to the destination,” says Hankes.

“We ended up taking them paintballing. We had the best

response. People said, ‘I had a blast,’ or ‘I never would have

done this on my own.’ I wanted to see just how strong the

curiosity factor is. It turns out to be pretty darn strong.”

Based on that success, Hankes scheduled a second

mystery event in November. This time, the Boston Region

and two other dealerships got involved. The addition

of Grappone Scion in Bow, N.H., and Balise Scion in

Warwick, R.I.—stores that sponsor their state’s chapters

of ScioNRG, one of the larger Scion owners’ clubs on the

East Coast—broadened the outreach.

Hankes made all the arrangements, divvying up the

spots among the three dealerships. In all, 85 owners

showed up at Scion of Braintree in some 40 vehicles.

The destination? F1 Boston, a 106,000-square-foot

indoor racetrack facility for full-fledged go-karts. The

participants had the run of the place, including unlimited

hot laps and a spread of food. Those who posted the top

eight lap times competed in a grand finale.

“Each owner could bring along a guest,” says Hankes.

“So, technically, it was an owner loyalty event. But we also

made an impression on people who were new to Scion.

I explained, ‘This is a $30 million facility and, today, it’s

your clubhouse.’ It got them thinking, ‘Why am I driving

a Honda or a Ford? They’re not doing this for me.’”

Interaction goes to the heart of Hankes’ marketing

philosophy. Scion of Braintree allots virtually all of its

advertising dollars to grassroots events, staging 20 such

gatherings in 2008 and looking to increase the bookings

this year. Planning for the next two mystery events is

already in the works. Budgets range from as much as

$5,000 to as low as $500.

Wherever the ideas come from and however the event

comes together, it’s working. Scion of Braintree took up

residence in a brand new and significantly larger facility in

2008 located adjacent to the intersection of several major

freeways. Sales were up in a down market, in part because of

the physical change. But the emotional energy generated by

Hankes’ aggressive grassroots strategy is also driving growth.

“Anything can be an event,” he says. “You have to open

your mind. You might come up with an idea that, in your

head, seems wacky. But when you sit down and talk about

it, often you can find a way to make it work.”

When it comes to boosting business,

Mike Hankes doesn’t hesitate to think

outside the box. But he’s also a big proponent

of thinking and working inside the box—where

the box is the confines of the dealership.

“Salespeople and F&I tend to band together

and service and parts tend to band together,

and typically there’s a big line drawn in the sand

between them,” says the Scion guru at Scion of

Braintree (Mass.). “But I was taught that as a

salesperson, I should build good relationships

with service and parts. They can be a big help

when you need to take care of a customer. It was

true when I got my start in this business. And

it’s even more true today.”

Hankes points out that virtually every

salesperson has some downtime during their regular work

week. Sales consultants could wander over to the service

department and engage with the people who are there—

both their dealership colleagues and owners who have

their vehicles in for service.

For example, to help bolster his accessory selling skills,

Hankes seeks out and consults with the service and parts

employees who are plugged into the tuner craze. At other

times, he’ll engage with technicians and parts professionals

in search of fresh ideas for grassroots marketing events.

Less focused but equally valuable are his regular visits

to the service waiting area to introduce himself to new

customers and/or reconnect with those who’ve bought

from him before.

The investment in customer and colleague engagement

can produce significant dividends. Hankes recently had a

customer who bought his Scion from another dealership

but was introduced to Scion of Braintree through a

grassroots event. He came away so impressed that he

referred his father, who just happened to own an Avis

rental car outlet and was searching for a dealership to

service his fleet’s Toyota vehicles. That led to a follow-up

phone call with the father’s business partner who set up an

account with Toyota of Braintree’s parts department.

“We didn’t sell a car, but look at how much the

dealership gained because of that,” says Hankes. “I’m a

big believer in ‘TEAM’ as in “Together Everyone Achieves

More.’ The guys in the shop are good people who work

hard at what they do. Every salesperson can take 15

minutes and ask them about their weekend. The key is to

be sincere about it. You can’t just be some guy in a suit. It

really can go a long way.”

thinking Inside the box: Make time to connect with Service, Parts

taps ‘curiosity factor’ in grassroots eventsBy Dan MillerPhotographs by David Kadlubowski

Hands-On ApproachScion guru Mike Hankes gets up close and personal with the product under the watchful eye of technician Jim Clinton. Hankes’ efforts to build bridges between sales and service have helped Scion of Braintree (Mass.) weather the current economic storm.

Scion of braintree

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Mike Hankes thrives on new ideas to promote his

dealership. So when the Scion guru at Scion of

Braintree, Mass., ran out of ideas, he turned that into an

idea, too—perhaps his most innovative ever.

“I like to do my planning six to nine months in

advance,” he says. “A year ago, I was filling out the

calendar for 2008 and, when I got to April, I couldn’t

come up with anything. So I just put a question mark in

the book and called it the ‘Mystery Event.’

“Later, I was joking around with Steve Steniford, a

wonderful promoter who helps us with our bigger events,

saying we should just call it the ‘Mystery Event.’ And then we

thought, ‘Hey, wait a minute. That’s a pretty interesting idea.’

We just ran with it.”

How did it work? Hankes started by sending out

online invitations to his e-mail list of Scion owners. The

details were limited to a specific time and date to show

up at the dealership, with the first 50 to respond gaining

entry. The spots went quickly.

“They didn’t know where we were going or what we were

going to do until we got to the destination,” says Hankes.

“We ended up taking them paintballing. We had the best

response. People said, ‘I had a blast,’ or ‘I never would have

done this on my own.’ I wanted to see just how strong the

curiosity factor is. It turns out to be pretty darn strong.”

Based on that success, Hankes scheduled a second

mystery event in November. This time, the Boston Region

and two other dealerships got involved. The addition

of Grappone Scion in Bow, N.H., and Balise Scion in

Warwick, R.I.—stores that sponsor their state’s chapters

of ScioNRG, one of the larger Scion owners’ clubs on the

East Coast—broadened the outreach.

Hankes made all the arrangements, divvying up the

spots among the three dealerships. In all, 85 owners

showed up at Scion of Braintree in some 40 vehicles.

The destination? F1 Boston, a 106,000-square-foot

indoor racetrack facility for full-fledged go-karts. The

participants had the run of the place, including unlimited

hot laps and a spread of food. Those who posted the top

eight lap times competed in a grand finale.

“Each owner could bring along a guest,” says Hankes.

“So, technically, it was an owner loyalty event. But we also

made an impression on people who were new to Scion.

I explained, ‘This is a $30 million facility and, today, it’s

your clubhouse.’ It got them thinking, ‘Why am I driving

a Honda or a Ford? They’re not doing this for me.’”

Interaction goes to the heart of Hankes’ marketing

philosophy. Scion of Braintree allots virtually all of its

advertising dollars to grassroots events, staging 20 such

gatherings in 2008 and looking to increase the bookings

this year. Planning for the next two mystery events is

already in the works. Budgets range from as much as

$5,000 to as low as $500.

Wherever the ideas come from and however the event

comes together, it’s working. Scion of Braintree took up

residence in a brand new and significantly larger facility in

2008 located adjacent to the intersection of several major

freeways. Sales were up in a down market, in part because of

the physical change. But the emotional energy generated by

Hankes’ aggressive grassroots strategy is also driving growth.

“Anything can be an event,” he says. “You have to open

your mind. You might come up with an idea that, in your

head, seems wacky. But when you sit down and talk about

it, often you can find a way to make it work.”

When it comes to boosting business,

Mike Hankes doesn’t hesitate to think

outside the box. But he’s also a big proponent

of thinking and working inside the box—where

the box is the confines of the dealership.

“Salespeople and F&I tend to band together

and service and parts tend to band together,

and typically there’s a big line drawn in the sand

between them,” says the Scion guru at Scion of

Braintree (Mass.). “But I was taught that as a

salesperson, I should build good relationships

with service and parts. They can be a big help

when you need to take care of a customer. It was

true when I got my start in this business. And

it’s even more true today.”

Hankes points out that virtually every

salesperson has some downtime during their regular work

week. Sales consultants could wander over to the service

department and engage with the people who are there—

both their dealership colleagues and owners who have

their vehicles in for service.

For example, to help bolster his accessory selling skills,

Hankes seeks out and consults with the service and parts

employees who are plugged into the tuner craze. At other

times, he’ll engage with technicians and parts professionals

in search of fresh ideas for grassroots marketing events.

Less focused but equally valuable are his regular visits

to the service waiting area to introduce himself to new

customers and/or reconnect with those who’ve bought

from him before.

The investment in customer and colleague engagement

can produce significant dividends. Hankes recently had a

customer who bought his Scion from another dealership

but was introduced to Scion of Braintree through a

grassroots event. He came away so impressed that he

referred his father, who just happened to own an Avis

rental car outlet and was searching for a dealership to

service his fleet’s Toyota vehicles. That led to a follow-up

phone call with the father’s business partner who set up an

account with Toyota of Braintree’s parts department.

“We didn’t sell a car, but look at how much the

dealership gained because of that,” says Hankes. “I’m a

big believer in ‘TEAM’ as in “Together Everyone Achieves

More.’ The guys in the shop are good people who work

hard at what they do. Every salesperson can take 15

minutes and ask them about their weekend. The key is to

be sincere about it. You can’t just be some guy in a suit. It

really can go a long way.”

thinking Inside the box: Make time to connect with Service, Parts

taps ‘curiosity factor’ in grassroots eventsBy Dan MillerPhotographs by David Kadlubowski

Hands-On ApproachScion guru Mike Hankes gets up close and personal with the product under the watchful eye of technician Jim Clinton. Hankes’ efforts to build bridges between sales and service have helped Scion of Braintree (Mass.) weather the current economic storm.

Scion of braintree