Laura Schwab’s latest marketing move resembles a Depression-era anecdote about a mother feeding a whole family with one potato.
The new president of Irvine-based Aston Martin Americas—the first woman in the position—has figured out a way to use the only DB 11 vehicle at her disposal to make loyal brand enthusiasts feel valued. Her team is bringing the sports car, which was revealed last month at the Geneva Motor Show, to the driveways of early hand-raisers who’ve committed to the $220,000 purchase, sight unseen—and there are about 1,000 of them around the world.
“Our go-to-market strategy is slightly different than what you see from traditional car brands,” Schwab said. “Because we are a luxury company, it’s not about mass broadcast. The first people that are going to see the vehicle are people that have put the money down and said they want one of the first cars. We are throwing a party for them at their house or at their chosen location.”
The first of many private events was held March 25—and up to 10 more will be in Orange County in the coming months.
“California is our largest market, with the greatest continued potential, and being situated in OC is ideal,” Schwab said.
Each customer’s 11 closest friends are invited to attend their party.
“Usually the people who are in those crowds are the ones that buy that type of car, and when you see your friend excited about something and you have an opportunity to be one of the first to check it out, sometimes that breeds enthusiasm,” said Stephen Brown, general manager at Aston Martin Newport Beach. “This is the most anticipation we’ve had with any Aston Martin new launch.”
The cars the customers have paid for will arrive from Gaydon, U.K., in November, because hand-manufacturing and customization usually takes 250 to 350 hours per vehicle. Each engine cover will be signed by Andy Palmer, chief executive of parent company Aston Martin Lagonda Ltd. He’s also providing his personal contact information to the owners of the first 1,000 DB 11s to roll off the factory floor, just in case “there is any question about the car or quality.”
Niche Market
Schwab oversees the Americas region for the 103-year-old British automaker. Kuwait-based Tejara Capital Ltd. and other investors acquired the majority stake in the company from Ford Motor Co. in 2007 for $768.8 million. Investindustrial in Italy got a 37.5% stake in 2012 for $241 million, and Daimler AG in Germany got a separate 5% share as part of a technical partnership between it and Aston Martin in 2013. Former Aston Martin Chairman David Richards and car collector John Sinders—part of the 2007 takeover effort—“have no connection with the company any longer,” according to the company.
The luxury automaker sells about 4,000 cars a year at $115,000 to $337,000 each. Vulcan, a racetrack-only model, retails for about $2.3 million.
Fountain Valley-based Hyundai Motor America Inc., in comparison, sold 761,710 vehicles in the U.S. alone last year, with models starting at $14,750 for the Accent and reaching $61,500 for the Equus.
Aston Martin has 46 dealers in Schwab’s region, which stretches from Yukon in Canada to Tierra del Fuego in South America—and 37 of them are in the U.S.
“The Americas region is very close to our biggest market,” Schwab said, adding that the company doesn’t break down sales geographically.
Newport Beach Aston Martin, the only Aston Martin dealership in Orange County, is part of U.K.-based Pendragon plc’s nine-dealership California group that also includes the Jaguar and Land Rover stores in Mission Viejo. The group posted $370 million in revenue and $14.9 million in profit last year.
Aston Martin sales were a “small percentage” of the group’s total, “because it’s a very niche brand,” Brown said. “We sold over 50 Aston Martins last year.”
New Kind of Luxury
Aston Martin’s global sales peaked at 7,200 in 2007, and the luxury automaker is planning to expand production and return to those levels by 2020. The consortium of owners last year announced a $300 million investment in a second manufacturing facility in St. Athan, Wales, to help spur development of an all-electric RapidE sports sedan and a crossover vehicle based on the DBX Concept shown at the recent Geneva and Shanghai auto shows.
“In the DBX Concept, I believe we have created a new type of luxury car that can not only broaden the appeal of Aston Martin to a whole new generation of customers, but sit with pride alongside the rest of our range,” chief executive Palmer said in a statement.
The automaker is working with China-based technology company LeEco on RapidE in a partnership that was announced in January. The electric four-door sedan will debut in 2018.
Schwab, one of 21 employees at Aston Martin’s Irvine office, said she’s looking forward to the new models coming down the pipeline.
“It’s an exciting time for Aston Martin, for the brand and our history, because we are on a really fun and exciting trajectory.”
It’s also an exciting time for Schwab, one of the very few top female executives in the automotive field.
“ … to be one of the few women to head up a brand in the region, it’s obviously really exciting for me. I’ve got a lot of years in the car business at this point, and I’ve been really lucky to have some incredible mentors. Hopefully my story will be inspirational and encouraging for women considering entering the automotive space, that there is room to grow.”
She still remembers the humming of sewing machines at the Aston Martin factory that she overheard while on a tour during the regional president recruitment process last year. The then-director of marketing for Jaguar Land Rover in the U.K. was swayed by the “the stories of Aston Martin, an independent manufacturer that still believes in hand-craftsmanship” and “that it’s not just another car company, but it’s a luxury company.
“When we discussed plans for the organization, the new products that we were looking to introduce, and how can we really build this region and possibly approach marketing and retailing a little bit differently—it really tapped into my entrepreneurial spirit, and I knew it’s going to be the right fit.”
