| Barbara E. Mathews, M.D.
Andy Granatelli:
Profile of a Phenomenon |
by Barbara E. Mathews, M.D., FACS,
FACOG |
Andy Granatelli has a long and accomplished
career in business (most notably as President and CEO of
STP Corporation, but in numerous other endeavors as an entrepreneur
as well) and in virtually every aspect of motor sports–as
a race car driver, race car owner, marketing and sales promotion
genius, creative automotive designer, and inventive automotive
engineer. His celebrated record of distinguished leadership
and achievements in business are legendary.
Andy has highlighted our free enterprise system by combining
with inimitable style his role as corporate executive in
large, paneled, thickly carpeted offices with life on the
reckless outer edge, made up of every increasing speed,
competitive racing, fast cars, and high winding engines,
with unique flare, finesse, and aplomb. Arguably the most
dogged, controversial figure at the Indianapolis Motor Speedway,
sporting an insatiable desire and relentless determination
to win, Andy always has thrived on contest, rivalry, promotion,
and exposure–all traits which uniquely have characterized
and peppered his successful business career.
Andy’s remarkable accomplishments exemplify and serve
as inspiration for the just rewards induced by consistent
hard work, self imposed demand for high standards, drive
for perfection, dedication to customer satisfaction, concern
for employee welfare, thirst for challenge, courageous risk
taking strategy, creative thinking, and unlimited broad
vision.
Obviously, it comes as no surprise that, as one of the captains
of the automotive industry and precedent setting innovator
in the motor sports establishment, Andy repeatedly has been
recognized and honored, justifiably and appropriately, for
his dedicated efforts in and unique contributions to this
discipline. He was knighted by the Italian Government with
the title of Cavalieri nel Ordine della Republica Italiana
in 1993, and will have been inducted into eighteen separate
Halls of Fame by January, 2003.
His enormous success in numerous business ventures, coupled
with his ardent passion for philanthropy and sense of social
responsibility, distinguish him and set him apart as a true
folk hero in our time.
Andy Granatelli’s life story stands as
a true “Grapes of Wrath” phenomenon. Along with
his father and two brothers, Joe and Vince, young Andy,
the middle child, came out of Texas during the Great Depression.
He grew up in the slums of Chicago–pitiful, ragged,
entirely penniless, and literally starving, but with that
unmeasurable recipe of courage, creativity, tenacious, eternal
optimism, supreme confidence,, high ideals, unbridled imagination,
passion for hard work matched by physical stamina, drive,
and endurance–those only God given ingredients essential
to make history, not to be victim
of it.
Andy’s father Vincent, a dignified, austere, kind
gentleman with greying hair and imposing stature, had immigrated
from Sicily at the young age of 17, leaving the small town
of Campo di Felice, near Palermo, to seek fortune in America.
He had taught himself to read and write English, and, in
the years before 1929, had established himself as a grocer
in Dallas, Texas, and was a well-respected advisor to families
in the Italian community there.
With the stock market crash in 1929, the family lost everything–the
store, the little house, and any minor savings. With nothing
but the clothes on their backs, they traveled to Chicago,
living briefly with relatives part of the time, and on Relief,
NPA, and WPA, most of the time–existing on a sparse
diet of old oatmeal and worm infested farina.
Andy’s mother died when he was twelve years old, and
his father spent most of his adult life trying to rear,
guide, and control his three roughneck sons.
In Chicago, the family lived huddled in the slums not far
from Soldier Field, sustaining themselves by the few pennies
collected from recycling of old Coca Cola bottles discarded
at the Chicago World’s Fair. Andy and his brothers
would hike eighteen miles round trip to fill shopping bags
with bottles gathered from garbage cans, lawns, and grandstands
to generate a mere eight dollars a week during times of
peak sales.
In the mid 1930's the family fell in with the many caravans
on a California trek–father Vince anxiously in search
of some work or promise of that elusive golden opportunity
out West, only to experience failure and starvation yet
again–and returned empty-handed to Chicago where young
Andy found employment for six dollars a week as a delivery
boy by day, collecting added pennies as a clerk and stocking
grocery shelves also at night.
Dropping out of school at age 14 to help feed his family,
Andy also took on extra work hauling coal up flights of
stairs in the neighborhood tenements in winter months. Also,
the Granatelli brothers sold produce out of an old 1927
Buick and started cars on the coldest of Chicago mornings
to get that badly needed extra cash.
This was the start of Andy Granatelli. Through hardship,
he somehow, as if miraculously, combined his inimitable
business acumen and now legendary salesmanship to produce
so many varied careers, some of which seem downright unbelievable,
that each is a virtual Horatio Alger epic in its own right.
Andy unquestionably was born supercharged.
Entrepreneurial Beginnings
|
Andy Granatelli began his career in 1943, at
the age of 20, when he and his brothers pooled their meager
resources to purchase a Texaco gas station on the north
shore of Chicago, which he called “Andy’s Super
Service.” From the outset, on Chicago’s lakefront,
Andy proved to be a high profile trend-setter; he initiated
the concept of a “pit stop” gasoline service
station and repair shop, using four to five mechanics working
on a car at one time. This unique service concept drew customers
in, willing to wait, sometimes in lines a block long, just
to appreciate the true “super service” experience.
Ironically, this was truly a case of people buying the “sizzle,
not the steak,” since the benefit of the rapid customer
service which Andy provided was defrayed by the extended
wait in long lines. But the super advertising phenomenon
never failed to please the crowds. They loved it, and Andy
prospered from it.
Two years later, in 1945, Andy and his brothers formed the
Granatelli Corporation, naming their business “Grancor
Automotive Specialists.” This is where Andy first
introduced the concept of mass merchandising of performance
products, quickly becoming the leading national manufacturing,
distribution, and sales organization for automotive power
and speed equipment. An inimitable marketing genius and
entrepreneur, Andy successfully demonstrated that basic
need and public interest can be combined to provide high
quality, consistent products and service on a grand scale.
Andy recognized early on that if you give the customer what
he needs, you make a living; if you give the customer what
he wants, you will make a fortune. By introducing and opening
the normal retail and wholesale automotive distribution
outlets to sell his power and speed equipment, it is said
that the SEMA (Specialty Equipment Market Association) show
may never have existed if not for Andy Granatelli’s
foresight and boldness in being the first to develop a booth
at the regular wholesale automotive parts warehouse shows.
People professed that he was crazy to try this. Today the
power and speed business is a multi billion dollar industry.
Combining his business ventures in the boardroom with his
passion for auto racing engineering and motor sports promotion
seemed to come naturally. In 1946 Andy and his brother built
the only successful rocket car in history that was run on
oval tracks. It was driven by Andy himself (promoted as
“Antonio the Great”) on state fairgrounds throughout
the Midwest and South. And what a true sensation it was!
At Grancor, Andy built and sold hundreds of Ford V8 hopped
up flat head motors to customers in the Southeast and throughout
the United States. These engines were used by moon shiners
as well as running stock car races on the sand at Daytona
Beach, Florida, and other races throughout the South. Granatelli
built motors repeatedly dominated qualifying and set world
records.
Enjoying a passion for building hot rods, and aspiring to
raise public awareness and improve the quality of motor
sports, Andy, in 1947, formed and became President of the
Hurricane Hot Rod Racing Association. In that capacity,
using his penchant for showmanship, promotion, and advertising
insights, Andy single-handedly created a series of hot rod
and stock car racing events that were held at Chicago’s
Soldier Field, packing in an all time record of 89,560 fans,
the biggest crowd to this date, exceeding by at least 10
fold the attendance at any stock car auto racing event in
history for a quarter mile track.
Also in 1947, at Soldier Field, with a meager advertising
budget of only $1500, Andy held the first hot rod race outside
California, generating a record crowd of 24, 962 race fans.
This attendance was over six times larger than any California
hot rod event. A year later, Andy started promoting stock
car races to crowds that averaged 10 times higher attendance
than that at any other quarter mile track in the United
States.
In 1952, at Half Day Speedway in Libertyville, Illinois,
Andy pioneered and ran the first drag race outside of California.
He advertised and promoted his first race at Half Day drag
strip as “the first nationally advertised drag race,”
and successfully drew an historical, record crowd of over
26,000 race fans for this first event, a remarkable feat
by comparison to the meager attendance of approximately
1500 persons at the California tracks. Once again, Andy
proved to be a master at sales, engineering, advertising,
marketing, innovation, and promotion–a skill that
served him well as his career progressed.
During this years as President and CEO of Grancor Automotive
Specialists, Andy was actively racing as Vice Chairman of
NASCAR, President of California Muffler Sales, Hurricane
Hot Rod Racing Association, Half Day Speedway, and Chicago
Auto Racing.
Andy took his first race car to the Indianapolis 500 in
1946–a pre-war Miller Ford, an historic car even in
its day. Two years later Andy, himself, drove in the Indy,
wearing his good friend Bill France’s borrowed helmet
to pass his rookie test.
In 1958, Andy and his brother Joe bought Paxton
Products, a floundering engineering firm which manufactured
superchargers and had experienced an abysmal operating loss
in the last five months of operation alone. In the first
seven months under Andy’s leadership and guidance,
employing Andy’s aggressive, innovative advertising
and sales promotion techniques, Paxton Products became highly
profitable, almost immediately recouping the entire business
losses, and even posting a considerable profit.
Andy’s prompt success in the redevelopment of this
company brought him instant industry recognition and the
invitation to become engaged as a performance engineer consultant
to several automobile companies.
Following the lucrative sale in 1961 of Paxton Products
to Studebaker Corporation, while still CEO of Paxton Products,
Andy took on the responsibilities of Vice President, Chief
of Performance Engineering, Chief Driver, and Chief Engineer.
At Studebaker, Andy personally directed engine and chassis
development, setting more than 400 world land speed and
endurance records, driving and setting many of the fastest
records himself. In 1961, Andy in his 300 F Chrysler, ran
a record return speed of 179.472 mph, the fastest time ever
recorded by NASCAR on the sands of Daytona Beach.
Also at Studebaker, Andy developed the first prototype Chrysler
300, Cadillac Eldorado, Studebaker Avanti, and R Series
Engines; redesigned the immortal Novi racing engine, increasing
the horsepower from 450 to 837; and owned and ran the immortal
Novi race cars both at the Indy 500 and in Atlanta, Georgia’s
Hi-Bank Track (for which he is laureate in the Motorsports
Hall of Fame of America).
Moreover, at STP in 1967, Andy completely designed, built,
ran, and campaigned the world famous, controversial STP
Turbine Car–without dispute, the most creative, innovative,
spectacular, futuristically engineered, forward thinking
race car in history–the subject of over 30,000 articles
worldwide, pictured on the cover of hundreds of magazines,
and currently on display at the Smithsonian Institute.
Andy’s associations with Studebaker in 1963 led him
to become President and CEO of a company that was a partially
owned subsidiary and whose only product was STP Oil Treatment.
This is where Andy was to make his most significant and
lasting contributions to the advertising process and the
automobile racing world.
At STP, Andy combined his inimitable business acumen, advertising
insight, intuitive promotional abilities, salesmanship,
and innovative marketing strategies, first to change the
name of the company from Chemical Compounds to the name
of the product, STP, and soon to make STP a virtual household
word.
As President and CEO of STP, Andy, in fewer than seven years,
raised the company from a level of virtual obscurity to
a position of dominance in the world market. The company
quickly expanded from 7 to over 2000 employees as sales
skyrocketed; profits grew exponentially, and market share
increased from 7% to over 85%. All the while, Andy’s
name recognition and his accomplishments in the auto racing
world rose to new and monumental heights on a worldwide
basis.
Just how did Andy accomplish his monumental
success at STP, and what was the eventual impact of his
remarkable achievements in the business arena? Andy was
arguably the first person to apply the principle of “grand
scale,” spectacular, “mass merchandising”
to sports activities in general, and to motor sports in
particular. Andy made his mark in auto racing, but his operating
principles could have been applied anywhere, and clearly
stand alone in distinction and in historical importance.
Since Andy initially was allowed only a minuscule advertising
and sales promotion budget, he adopted a quadripod theory
of advertising and marketing, a “Granatelli theorem,”
it might be called, which included a product log (in this
case STP), a product (oil treatment), a product spokesman
(himself), and a raison d’etre (auto racing).
Andy personally redesigned the STP logo and changed the
color from a deep, dark maroon to a more identifiable, more
spirited day-glo red with white and blue trim. He removed
the name “oil treatment” from the product logo,
in spite of vehement opposition from the Board of Directors
of the company.
Cleverly, Andy was able to apply his STP logo on every type
of race car in every type of car and boat race by offering
contingency products, trophies, and/or cash prize money
to the winners, provided they used his product, and displayed
the STP decal. This created unparalleled demand for his
nameless product decals. Andy distributed literally several
hundred million free STP decals to fans at auto, boat, and
air races, as well as offering decals through mail-in coupons
in advertisements which provided free decals with the purchase
of STP Oil Treatment.
Soon, the program expanded further when STP Oil Treatment
and free STP decals were available in 99% of the more than
238,000 gasoline stations and 37,000 automotive parts wholesalers
across the nation. Most of these locations exhibited large,
colorful banners, along with STP Oil Treatment on display
racks provided at no charge, meanwhile distributing free
STP decals to anyone who wanted them.
Andy sent teams of salespeople along with local automotive
jobber salesmen into gasoline stations across the country,
first starting at the less densely populated perimeters
of towns in order to demonstrate how to sell his product
directly to the consumer. He showed the jobber salesperson,
as well as the gasoline service station attendants, how
to sell STP directly to the car owner. His men then took
fistfuls of orders from gas stations to the jobber, and
then STP asked the jobber for an order. Having established
its quality, consistency, efficacy, and popularity, Andy
used the established success and credibility to continue
into mass populated urban areas. Sales and profits skyrocketed.
Andy was unique in the way he marketed a product. He took
the totally unprecedented, bold initiative, in the face
of the most severe opposition, to lower the discount provided
to his highest volume customers who normally supplied their
jobbers (called warehouse distributors) from 60% to the
40% off provided to jobbers, thereby effectively making
everyone jobbers. Andy used the extra 20% savings for advertising
and sales promotions. It was unprecedented not only to produce
such a radical elimination of the “middleman,”
but also to add all this new found money to an advertising
and sales promotion budget, raising the budget from the
usual 10% to an astounding 30% of sales.
Andy used his advertising money to get the consumer to come
in to ask for his product rather than to rely upon a warehouse
distributor to sell the product to jobbers who in turn sold
to dealers (gas stations). He very effectively reversed
the demand to flow directly from the consumer.
Moreover, Andy championed and pioneered the unprecedented
concept of committing his entire annual STP advertising
budget to be spent in the first nine months, and took the
equally boldfaced, controversial action in the 1960's to
assign a disproportionately large percentage of his advertising
budget to include STP promotional items such as sample products,
decals, banners, and assorted memorabilia (including baseball
style caps, tee shirts, jackets, duffel bags, ties, pens,
etc., all bearing STP logos predominantly on them), which
he distributed to the public by the hundreds of thousands
at no charge. Using this advertising strategy, Andy succeeded
every year in meeting or exceeding his annual sales and
profit in the first nine months.
In addition to billboards being placed around the country,
Andy conceived a 4 by 8 foot “Welcome Race Fans”
banner which was placed by the thousands in gas stations,
on motor homes, fences, trucks, etc., displaying large STP
logos, which served to raise public awareness, create excitement,
and ignite enthusiasm for STP and auto racing. Coveted and
highly prized by adoring fans, the banners would invariably
disappear at night.
People wanted to collect anything they could with STP on
it, starting on a large scale basis the national pastime
of collecting racing memorabilia and creating the multi
billion dollar merchandising industry that is enjoyed today.
Such global vision and broad based identity expansion was
manifested by permeation and saturation of STP decals and
paraphernalia into all aspects of society, involving all
age ranges, educational levels, and financial strata. Andy
succeeded in achieving an incredible advertising phenomenon
by literally indulging the visual senses, by imposing the
STP logo in absolutely every aspect of life.
STP decals appeared on children’s bedroom walls, notebooks,
lunch boxes, bicycles, go karts, wagons, scooters, tanks
in Vietnam, pedi-cabs in Singapore, trucks, refrigerators,
and much more! At one time, over 30 million cars were estimated
to be bearing STP decals. In fact, STP decals literally
became a part of the world pop culture.
For several years in the mid nineteen sixties it was not
uncommon for almost all motor sports publications to show
STP decals on drivers or cars that appeared on almost every
page of the magazines. In some cases over 100 STP decals
appeared prominently in each magazine and numerous times
on the cover. Andy also had free STP decals inserted in
the motor sports magazines.
Amazingly, under Andy’s direction, in only four to
five years, the product STP rose from a state of trivial
insignificance to become a virtual household word. In a
national poll, STP was identified and recognized on a par
with Coca Cola–a high profile product since the turn
of the century, with an obviously unlimited advertising
budget. A measure of the advertising genius of STP was confirmed
by the New York Times famed cartoon depicting Neil Armstrong
landing on the moon and the first thing he saw was an STP
decal.
Additionally, Andy took the audacious, once again unprecedented
action to apply money from his STP advertising budget to
promote auto races free–to give radio, television,
and print free advertisement to auto race promoters in order
to build up their crowds. This included the Indianapolis
Motor Speedway, which, in those days, spent absolutely no
money on advertising.
Andy’s company, STP, supported NASCAR racing in every
way possible as an accessory company, including product
and prize and point money. For the NASCAR short track program,
when it was struggling, 100% of all NASCAR tracks were covered
by STP from coast to coast. NASCAR owned and operated “Motor
Racing Network” which was primarily sponsored by STP.
Moreover, and perhaps most significantly, Andy pioneered
auto racing on television and initiated the concept of major
corporate sponsorship in auto racing–having entries
in almost every major racing event on four continents, including
Indy, NASCAR, Formula I, and Tasman Cup championships, expanding
STP to 93 countries worldwide. He personally designed, created,
and fabricated the famous multiple logoed STP suits and
pajamas which distinguished his racing teams across the
globe.
Andy conceived and produced 24 minute movies depicting segments
of the Indy 500 races from 1963 to 1973 (all exhibiting
STP logos), which he sent to servicemen abroad, distributed
free to television stations worldwide, and which remain
regular features on sports stations to this day. Andy literally
ignited the fire and fanned the flames of enthusiasm for
motor sports with his short subjects about the Indy 500,
Bonneville Salt Flats, and NASCAR stock car racing.
Andy’s racing team won the Indy 500 in 1969 and again
in 1973. He continued to establish records with himself
as driver in the Bonneville Salt Flats (this CEO of STP
driving an amazing, record 241.731 mph on pump gasoline
in his street legal passenger car), and El Mirage Dry Lakes,
and in Daytona. He made record wins with NASCAR, with Richard
Petty driving Andy’s own car.
Always an advocate for safety, Andy spearheaded the use
of Nomex fire retardant driver uniforms by giving all drivers
entered into the Indy 500 race and NASCAR participants free
suits with the STP logo prominently embroidered onto them–on
the shoulders and upper body (front and rear) to ensure
their display in press releases. He pioneered the concept
of advertising on driver uniforms and race cars en mass.
This advertisement appropriately associated STP with safety
and security, while at the same time, increasing product
recognition among fans, competitors, and media, who visually,
almost unknowingly, registered the STP patches.
All of this made the STP logo one of the most recognizable
in sports history!
In order to establish an identifiable, notionally, and internationally
recognized product, with a characteristically distinctive
logo, Andy perceived the advantages of providing a readily
identifiable spokesperson. Having no budget for a spokesperson,
what more novel approach to advertising than to use the
CEO himself.
And indeed, Andy, while CEO of STP, was the true quintessential
ambassador to the media. He penetrated all media–radio,
television, outdoor billboards, banners, mailings, and print–using
himself, the CEO, as spokesperson, and placing himself distinctively
on a par with the fan, the common man. His ads appeared
mostly in gas stations, garages, racetracks, or on his car.
Andy’s concept in advertising the products was to
talk to viewers as peers. His flamboyant style, seemingly
simple personality, sense of humor, quick wit, and genuine
sincerity served to add charm and charisma, captured the
imagination, and endeared him to the public. His grand stature
justified his popularizing everything in a big and grandiose
fashion.
One of the longest lasting images in motor sports history
is that of Andy Granatelli planting the big kiss on the
cheek of Mario Andretti in victory lane after the 1969 Indy
500.
Appearances on Laugh-In, Johnny Carson, and other high profile
television shows and in some movies, including The Love
Bug, soon gave Andy an image synonymous with auto racing
and STP. He achieved, in a national poll, a personal recognition
factor of 87% by simply showing his picture, superseded
only by a few movie superstars and recent presidents and
vice presidents of the United States.
How have Andy Granatelli’s efforts impacted
the advertising process over time? What notions did Andy
bring, and what legacy did he leave to the advertising industry?
Just imagine sports activities today without sales promotional
items–jackets, tee shirts, hats, decals, banners,
flags, and assorted memorabilia.
Just consider sporting event press rooms without colored
pictures and brochures, and unique, flamboyant, sales promotional
items and propaganda.
Just visualize a time without the interlude of periodic
television filmstrips (which Andy pioneered in auto racing),
and controversial broadcast race sports programming, reviews,
and multi-sportswriter media exposure, which Andy introduced
and developed.
Realize, above all, that this was the world before Andy.
These were the advertising principles entirely conceived,
designed, modulated, and expanded by Andy as vehicles for
advertising his product STP.
It is impossible to ponder how the sport can ever repay
the legendary Andy Granatelli for what he has done to popularize
racing. Surely no individual could have done more to popularize
a product, and in doing so, to enrich the entire motor sports
industry and racing establishment.
Andy appropriately is credited with bringing unparalleled
exposure, innovation, public interest, spectacle, and media
(especially television) coverage to motor sports. Arguably,
it is through his contributions, his historic efforts, that
auto racing has become the biggest spectator sport in the
world.
Somewhat later in his career, by using his
advertising and sales promotion genius as the owner of Wilcox
and Wilcox Advertising Agency, Andy conceived and popularized
the concept of the “while you wait” tune-up
and lube-oil change at another of his companies, TuneUp
Masters, Inc.
Andy purchased, built, and expanded the fledgling business
in less than a decade from 18 locations to 278 company owned
locations in eleven southwestern states and eventually sold
the company in 1986 for over 60 million dollars. Again,
Andy developed and paved the way for another “while
you wait” automotive service.
Throughout his illustrious and high profile career, Andy
has maintained a keen eye for social awareness, for the
needs of the less fortunate, and for social justice. In
spite of his many accomplishments in the executive office
at TuneUp Masters, Andy still credits his most significant
business achievement as the ambitious, innovative Youth
At Risk program which he developed at TuneUp Masters, whereby
literally thousands of disadvantaged young people, through
on the job training, mentoring, encouragement, and support,
were able to develop technical skills, self esteem, and
self reliance necessary to lead meaningful and productive
lives.
Over a period of nine years, Andy personally interviewed
and selected thousands of young people of all race, color,
and creed (many gang members marked by society as unemployable,
undesirable, undependable, and untrustworthy) to participate
in his program of computer, public relations, mechanics,
technical, and vocational training which produced remarkable
results.
Andy would, on a quarterly basis, travel to 17 cities or
provide educational and motivational video presentations
to the young people in all 278 company owned shops of TuneUp
Masters, inspiring them to believe in themselves, to maintain
a positive attitude, to recognize their potential, develop
their talents, and never to abandon their dreams. Many of
these trainees went on to pursue advanced degrees, to hold
leadership positions in well established industries, or
to create and operate their own corporations and businesses.
Corporate Culture and
Management Style |
Throughout his illustrious career in auto racing
and in the executive offices as CEO of thriving businesses,
including Grancor, Paxton Products, TuneUp Masters, and
especially STP Corporation, Andy demonstrated effective,
inspiring leadership and exhibited a managerial style conducive
to innovation, employee participation, loyalty, and enthusiastic
support.
Andy always was a hands-on mentor, willing to delegate responsibility,
without relinquishing control, offering opportunity for
growth to individuals with thirst for challenge, willingly
providing guidance, counseling, and instruction, always
accessible, quick to award praise, happy to reward work
well done, buffering any critique or discipline with a gentle,
warm, and forgiving heart, and fully accepting of criticism,
even flexible, and amenable to change himself.
A self made giant in American business, Andy achieved success
by values which he acknowledges he learned from his revered
father. By his own predictable example, Andy used his magnetic
personality and persuasive powers to set a climate which
fostered integrity, creativity, and credibility, He offered
management staff freedom and responsibility, but demanded
accountability. He encouraged action on the part of all
employees, focusing on values of simplicity, quality, cost
management, excellence, and efficiency.
Every business with which Andy has been involved as CEO
experienced prompt and exponential growth, organized expansion,
rapidly increasing sales, and concomitant escalating profit
margin and market share. This success, as with any business,
was due, in part, to enhanced productivity achieved by proper
employee training, incentive compensations and rewards,
use of good machinery and development of modern industrial
plants, continuous quality control and quality improvement,
and purchases of supplies on a high volume, low cost basis.
At STP, over a period of nine years, Andy absolutely never
accepted a price increase for any product, even though sales
and profits of STP went up, and prices of goods and services
rose with time. If vendors wished to increase prices, Andy
looked to alternate vendors, or more imaginative and ingenious
alternative solutions which produced no price increase (cardboard
versus metal containers, etc.). Profits were enhanced further
by an instinctive, forward thinking approach to human nature
and intuitive response. A true visionary, Andy was able
to anticipate public interest, and consequently, to create
appropriate supply and demand.
Good customer relations was the hallmark of all of Andy’s
businesses. Most assuredly, none of his businesses could
have achieved the rapid sales increases and consistent high
profits which they repeatedly exhibited without proving
good and predictable service. At TuneUp Masters, Andy initiated
a program whereby every customer vehicle had a TuneUp Master
decal applied to the rear window lower left corner. Each
of Andy’s 2500 employees in all eleven western states
was instructed to stop to assist any individual whose vehicle
exhibited the TuneUp Master identifying marking and had
broken down at the roadside, whether by virtue of an accident,
flat tire, lack of gas, or problem unrelated to tune up
service. This gesture of kindness, and at no charge, produced
predictable customer good will.
While Andy was chief executive of several corporations,
he was especially sensitive to the needs of his employees.
In all of his companies, Andy brought his staff together
in a family atmosphere, in a helpful, nourishing environment.
Within this framework of cooperation, teamwork, and commitment,
Andy was able to motivate and identify talent and stimulate
potential. When he retired, he kept or found placement for
many employees, and has remained close to others, as a teacher,
counselor, and special friend, in spite of the fact that
they moved away or worked in other locations.
When Andy sold Grancor, he gave controlling interest of
the company to his employees, free of charge. When he sold
TuneUp Masters, he offered a two million dollar bonus to
the employees if they increased sales minimally for the
new owners for the following year.
Always a champion of women’s rights, Andy in all his
companies, provided women equal pay for jobs and equal responsibilities,
and provided stock options to executives as well as to secretarial
staff. In the early 1960's, Andy set the unprecedented action
of using two women race drivers to set records in the Bonneville
Salt Flats, and in 1964, Andy used the first woman driver
ever to compete in an Indianapolis race car.
No individual has been able to respond to and recover from
unanticipated and repeated crisis more than an auto racing
driver and car owner, having confronted conditions on many
occasions requiring immediate decision making and reflex
action, having experienced repeated engine failures and
malfunctions, having endured multiple crashes and incurred
sometimes serious bodily injuries, in addition to tackling
the standard business technical, legal, and employee concerns.
Andy perhaps excelled in every one of his endeavors because
of his uncanny ability to actively and intuitively respond
to, and to teach his employees to adapt to enormous stress.
Humanitarian and Philanthropist |
Especially since his retirement from the business
sector and racing community, and following his relocation
to Santa Barbara, California, almost 15 years ago, Andy
has dedicated himself primarily to giving back to society
from which he credits his fame and fortune. An avid and
selfless supporter of numerous local charities who never
has forgotten his own modest and humble beginnings, Andy
has donated–quite literally on a daily basis–unlimited
time, extensive financial resources, boundless energy, and
passionate fund raising talent to over 100 local organizations,
as well as to numerous regional and national organizations.
Andy’s peerless determination to assist and contribute
to the disadvantaged members of his community prompted him
almost immediately to involve himself directly in a broad
spectrum of philanthropic endeavors encompassing all aspects
of society including the arts, community health, local schools,
medical and scientific research, alcohol and drug abuse,
public safety, child welfare and development, and youth
mentoring.
Recognizing that an investment in public safety, education,
community health, and young people is key to our community
strength, Andy has generated unprecedented aid to others
by gathering corporate and private donations, offering matching
grants, conducting numerous auctions, giving inspirational
talks to schools and juvenile detention centers, establishing
auxiliaries, hosting local telethons for food, clothing,
national disaster relief, and mentoring of children, as
well as for local hospitals, medical equipment and research.
On a National level, Andy has served as Chairman of the
Institute of Cancer and Blood Research since 1979, and has
served on the Advisory Boards of the Boys and Girls Clubs
of America and Boy Scouts of America since 1960. He was
involved with the National Kidney Foundation, and for many
years worked as a volunteer for, and benefactor of, the
Child Welfare League, and worked also for several years
on behalf of Child Help USA.
In Santa Barbara, Andy actively has been involved with the
Ben Page Youth Center, Christmas Unity/Unity Shoppe, United
Boys and Girls Clubs, Girls Incorporated, Rehabilitation
Institute of Santa Barbara, Santa Barbara Chapter of the
American Heart Association, Fighting Back Youth Mentoring
Program, U.S. Navy League, Laguna Blanca School, Bone and
Joint Institute, Institute for Cancer and Blood Research,
Council on Alcoholism and Drug Abuse, and the National Kidney
Foundation, only to name a few.
Andy has been actively involved as an energetic, vigorous
fund-raiser, benefactor, spokesperson, and volunteer in
all aspects of law enforcement and the Fire Department in
Santa Barbara County and in all communities where he has
resided in the past. He has served as Director and chief
fund-raiser for the Santa Barbara Sheriff’s Council
since its inception, and was co-founder of the 11-99 Foundation
for the California Highway Patrol–dedicated to raising
money for families of firefighters, policemen, and highway
patrol officers in California who have been injured or killed
in the line of duty.
Andy has extended charity beyond the bounds of the usual
non-profit organizations and activities. He has provided
financial support and enlisted contributions for local individuals
who have been severely injured in automobile accidents or
who have required organ transplants, but lacked the financial
resources to care for themselves.
While Andy was chief executive of several corporations he
was especially sensitive to the needs of his employees.
When he sold Grancor, he gave controlling interest of the
company to his employees, free of charge. Always a champion
of women’s rights, he offered equal opportunities,
responsibilities, stock options, benefits, and salaries
regardless of gender.
Within his businesses, Andy conceived, promoted, implemented,
and conducted ambitious, innovative, highly organized and
carefully structured Youth at Risk Mentoring programs which
provided emotional support as well as sales, mechanical,
and vocational training for literally thousands of disadvantaged
youth.
Andy has been able consistently and repeatedly to use his
flamboyant theatrical style, penchant for showmanship, promotional
and marketing genius, creative salesmanship, along with
his beneficent, gentle spirit and generous heart very effectively,
not only to generate money, but to attract needed public
interest and embrace enthusiastic volunteers to benefit
his local community. There rarely exists a local charitable
event that is not attended by him, chaired by him, sponsored
by him hosted by him, or conceived in honor of him.
Almost single-handedly, Andy has been responsible for millions
of dollars provided in contributions to local charities.
His energy and generosity truly are contagious. One of his
many repeated and remarkable feats was the acquisition in
April, 2001, of over $250,000 in donations to the Rehabilitation
Institute of Santa Barbara in less than 30 minutes at an
itemless auction with Andy serving as the celebrity auctioneer.
A truly incomparable inspirational leader and gentle giant,
Andy has been comfortable not merely in the limelight, but
has enjoyed working in the trenches and behind the scenes
as an unsung hero providing wisdom and new ideas, offering
challenges and support, garnering sponsorships, igniting
enthusiasm, motivating and generating unrivaled degrees
of active participation and unprecedented hard work by others
to achieve his lofty goals. He commands the admiration,
affection, devotion, and respect of all persons he encounters
in all walks of life.
His has been, and continues to be, a legacy of charity,
not merely of business success.
Andy Granatelli ranks among the most ingenious,
insightful, magnetic, colorful, impetuous, and highly publicized
individuals in American business.
With uncanny foresight and brilliant fitness, he was able,
throughout his celebrated, high profile career, to use his
charismatic persona and persuasive powers to create a flawless,
seamless blend of the sophisticated world of business acquisitions
and mergers of corporate America with the unruly, undisciplined,
rough and ready motor sports establishment, bringing singular
honor, fame, and fortune to himself, and at the same time,
accelerating auto racing by a media rocket to the level
of empire status.
Throughout his involvement in motor sports and in business,
Andy was the hallmark of technological change and industry
innovation. From the outset, at “Andy’s Super
Service,” he conceived and established the concept
of “pit stop” automobile service. At Grancor,
he initiated the concept of mass distribution of automotive
power and speed equipment, popularized and reconfigured
the famous “flathead” Mercury and Ford powered
engines, and revitalized and redesigned the immortal Novi
racing cars–all vehicles which he was first to run
and which captivated crowds unlike any other at Indy. He
was the acknowledged giant in the development of hot rod,
sprint car, stock car, and drag racing, and was an engineering
wizard at the forefront of race car engine design–culminating
in his sensational, incomparable, unsurpassed, legendary
STP Turbine Car. He allocated extensive funding to research
and development, aspiring through creative automotive engineering
in racing to bring innovation and safety features to traditional
passenger cars.
Andy was the innovator and popularized the concept of “while
you wait” tune-up and lube oil change at TuneUp Masters,
Inc.
As CEO at STP, Andy really showed his stuff as a bold and
inventive pioneer in grand scale, mass media merchandising
of a product, specifically oil treatment. His advertising
concepts were personified in the image of his grand frame
in the pits of the Indy, sporting a business suit, but conspicuously
white and bedecked with colorful STP decals. He wore the
Badge Number 500–was proud of it and forever brought
honor to it.
The life and times of Andy Granatelli, the rags to riches,
guts and glory story, is intimately reviewed in his own
words and defined by his own terms, in his highly acclaimed
autobiography, They Call Me Mister 500.1
Controversial to some, beloved and revered by all, this
magical, Houdini-like hero undeniably made his mark as decidedly
the most resourceful advertising genius and the most masterful
marketing legend of his time.
The informational material used in the preparation
of this article was obtained from numerous conversations
with Andy Granatelli, survey of many media news reports,
numerous press releases, and multiple magazine articles
as well as the analysis of corporate annual reports, examination
of videotapes and films, and review of Andy Granatelli’s
autobiography, They Call Me Mister 500 (Henry Regnery Company,
Chicago, 1969).
1. Andy Granatelli, They Call Me Mister 500,
Henry Regnery Company, Chicago, 1969
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