Over the past few years, the Cherokee brand has quietly but methodically risen to become Forest River’s best- selling fifth wheel brand and the fifth best-selling fifth wheel in the United States.
After logging a 92.6 percent year-over-year market share gain through April, Cherokee’s portion of the Forest River corporate “pie” will likely reach 30,000 units by year-end, according to RV PRO estimates. (Editor’s note: For reporting purposes, the Cherokee product umbrella encompasses the Cherokee, Alpha Wolf, Arctic Wolf, Grey Wolf, Wolf Pack, Vengeance and Wolf Pup brands.)
Market data firm Statistical Surveys benchmarked Cherokee travel trailer and fifth wheel sales nationally through April 30 at more than 5 percent of all national sales and the single-largest towable division by unit sales for Forest River.
Cherokee’s formative years occurred well before Bryan Walczak, sales manager for Cherokee laminate products Arctic Wolf and Alpha Wolf, came to the RV manufacturer in 2015, but, relying upon some oral history, he relates how the various Forest River divisions in those early years would send their obsolete materials to the plant in Goshen, Ind., where the company’s first stick-and-tin travel trailers were built.
Cherokee’s facility in Topeka, Ind., has grown to three plants covering 300,000 square feet and employing nearly 500 workers. Those workers build Cherokee, Grey Wolf and Wolf Pup travel trailers. In nearby LaGrange, another 300 workers staff a repurposed half-million-square-foot former manufactured housing facility building Arctic Wolf, Alpha Wolf fifth wheels plus Wolf Pack and Vengeance toy haulers.
Together, they build the vast majority of travel trailers and fifth wheels that carry the Cherokee brand. Still more travel trailers are built in a former Monaco Beaver/Safari plant in Harrisburg, Ore., for the West Coast market.
“The success of Cherokee has come from solid leadership in all areas with very little turnover resulting in hundreds of loyal employees in all departments,” says Walczak, who spent 14 years in the industry before joining the Cherokee team. “They have a simple philosophy: ‘Do the right things.’ It sounds funny, but it is a pleasant alternative to many other industry acquaintances. There are lots of great products on the market, but it’s not good enough to have a good floorplan and look nice. You got to do a lot of great stuff to keep that customer happy.”
Serving the Market
In 2015, Forest River top executives Doug Gaeddert, John Quake and others took an in-depth look at the Cherokee product and the fifth wheel market in general, Walczak says. At that time, Cherokee didn’t offer a laminated fifth wheel that retailed in the core of volume sales. Cherokee owners who wanted to trade up after a few years had to go to another brand.
To end this void, management decided to launch a laminate division, which would eventually include Arctic Wolf fifth wheels and Alpha Wolf travel trailers.
Pricing was a key concern. Management saw that some 80 percent of all retail sales of RVs were below $40,000 – even though most fifth wheel manufacturers continued to focus on high-end (read “heavy”) fifth wheels.
Fifth wheel shipments across the industry have experienced good growth in recent years, but Forest River’s Cherokee team thought the numbers could have been better.
“The entire industry has missed the market in fifth wheels,” Walczak contends. “The secret is building for the light-duty trucks: the GMCs, Chevys, Dodge 1500s and the Ford F-150s. Weight is our No. 1 sales feature.” So, the goal was to stay within the towing ability of the best- selling trucks, which meant keeping dry weights well under 10,000 pounds. “When we first started doing this, a lot of dealers looked at us and said, inquisitively, ‘How light?’”
This approach to reach the proper balance in a towable really has some merit. Walczak refers to the aviation industry for support.
“On an airplane, pilots must achieve a proper balance for the plane, and they have to judge where the weight is. Have you ever flown and heard the pilot say he needs some passengers to switch seats further back in the plane? We did the same thing with the Arctic Wolf. Certain percentages of the dry weight must be on the hitch, so we redesigned where the axles are on every unit. This has been one of the most thought-out projects in fifth wheels in recent years.”
He adds, “Suffice to say, we’re doing a lot of stuff to target the light-duty trucks, which outsell heavier trucks by a ratio of 10 to 1. We’re going the opposite direction of the rest of the industry. When we talk to a customer, he needs the safety and convenience of a fifth wheel without having to update his daily driving vehicle. That’s what we’ve built this brand on.”
Product Lineup Matters
Not unlike Ford Motor Co. – which is eliminating most of its cars except for two models to allow the company to focus on its “winning portfolio” – Cherokee management has narrowed its lineup to just six popular floorplans. The idea behind limiting choices also is designed to make it easier for the consumer to choose.
“Everything is targeted toward a certain buyer,” Walczak explains, adding that half of the company’s floorplans are geared toward Millennials. “The Millennial (buyer) is key,” he stresses, “so, designing floorplans for that buyer must include additional sleeping area.”
In particular:
- The 265DBH8 is a double bunkhouse designed to sleep eight people. In its second year, the floorplan has already become one of the best-selling Cherokee fifth wheels.
- The 315TBH8 is a triple-slide bunkhouse that sleeps eight, features one-and-a-half baths and offers a huge outside kitchen.
- The 295QSL8 quad-slide loft also sleeps eight. It was introduced at last year’s Open House Week event.
The other three floorplans are designed for couples:
- The 285DRL4 double-slide rear living room for four people is an offshoot from the Cherokee best-selling living rooms. “We’re doing it to distinguish it from the family models,” Walczak says.
- The 305ML6 mid-living for six people was introduced late last year and is unique in that it offers a mid-coach living room, according to Walczak. “We wanted to show that we could hit the weight and price point customers wanted,” he adds.
- A sixth floorplan, the 245RK4 rear kitchen model, will be unveiled at this year’s Open House. This floorplan is Cherokee’s only new entry for 2019 thus far. “The rear kitchen is the best possible use of space in any towable,” Walczak says, because it provides more storage in the back of the coach than most other coaches.
Make no mistake, these coaches are well within the price range and weight targets Forest River believes are attracting today’s buyers. All Arctic Wolfs have dry weights of between 7,600 and 8,700 pounds and minimum advertised prices of between $29,900 and $34,900.
“Most models are in the $29,900 range, but due to vendor increases over the past months, some models are going into the $34,900 range,” Walczak laments. “We originally wanted all to be in the $29,900 range, but that’s not realistic anymore.”
The industry has been reeling from heavy wholesale price increases this spring, but Walczak was hoping to have firm dealer prices by Open House Week.
“A lot of companies were slowing production this summer (but not at Forest River) by slowing their run rates and cutting certain days of the week due to pricing uncertainty,” Walczak says.
Canada & the West Hold Promise
Walczak took a revealing sales trip to Ontario, Canada, after Memorial Day and discovered that the fifth wheel business “up north” could be much better than it is with some more thoughtful marketing. The market in Canada’s most populous province has been stagnant in part because too many dealers were taking on larger fifth wheels and disdaining the smaller models, according to Walczak.
Through April 30, Cherokee travel trailers were solidly in second place in Canada, but Cherokee fifth wheels – although recording triple-digit year-over-year market share growth – were in seventh place.
To be fair, the entire towables market in Canada was flat. Through April 30, all fifth wheel sales in Canada were off by about 1 percent, while overall towable sales were off by 2 percent, according to Statistical Surveys.
The 30 percent exchange rate on U.S.-made, high-end fifth wheels may be pricing this segment out of reach of many RVers.
“We’re turning that around,” Walczak says, noting Cherokee’s 253.8 percent market share growth in April. “You’ll see that in the Canadian stats – especially for fifth wheels. The Arctic Wolf could be changing the entire market.”
Cherokee also is making some inroads in the West Coast market. Today, the Oregon plant produces 10 different floorplans. That is a fraction of the 50 Cherokee floorplans built at Indiana plants, but it’s a start, Walczak says.
Hitting the Mark
Statistical Surveys data shows mid-priced fivers (identified here as units retailing for between $40,000 and $65,000) are gaining traction, making up 54 percent of the market through April 30, up from 48 percent in 2017. Stat Surveys data also shows that while all fifth wheel sales were up nearly 9 percent through April 30, the mid-range price point market was up 18 percent for that same time period.
Cherokee fifth wheels fall below the mid-price point that RV PRO somewhat arbitrarily established for this story. Additionally, Cherokee products all retail below the next four top-selling Forest River brands.
Cherokee is an entry-level product – a detail the company uses in its promotions, Walczak notes.
“One of our stories is entry-level pricing with high-end features,” he says. “It’s one way we sell our product. The only thing entry level is our pricing. Leveling systems, taller slides and residential refrigerators haven’t been done in an entry-level product, so that really builds the value of our products.”
Hitting the target market is always an OEM’s goal, but it will become especially important next year, as fifth wheel shipments are projected to slow their rate of growth from the past few years.
Dealer Aids Help Retail Towables
About 190 dealers across the U.S. and Canada sell Cherokee products, and they are receiving strong sales support and large territories from the manufacturer, Walczak says.
“We use specialized comparisons with our core competition,” he says. For example, literature lists each key competitor and various features of those models and show why Cherokee believes its floorplans are better.
“We equip our dealers with more marketing material, such as posters and pocket cards, than I’ve ever seen a brand provide,” Walczak says.
Last year, Cherokee added a new virtual reality system called Matterport to aid dealers at their dealerships and at retail shows. Matterport is an all-in-one reality capture system that gives realistic, interactive 3D and virtual reality experiences that feel as real as being there. The feature also is available on Forest River’s website.
“This has become extremely effective when dealers sell out of a particular floorplan but can still ‘show’ the plan, Walczak says. All seven Cherokee sales reps had their Matterport goggles with them at spring shows and used them effectively, he adds.
Warranty Record Improving
Arctic Wolf ’s warranty record early on “could have been better,” Walczak concedes. However, since the opening of the LaGrange facility, he says the performance has gone to “superb.”
He credits a stronger production staff, led by Vernon Troyer, detailed purchasing team led by Matt Lower, and innovative designs dreamed up by Jeff Robinson.
“The new LaGrange facility has ensured support with the best dealer service team in the business, led by Mike Markham, and Jamie Tetzloff in parts. Feel free to reach them through the improved call center that all but guarantees every dealer who calls will reach a ‘live’ person every time.
“We are problem preventers and not just solvers,” Walczak says. “We’re doing things at Cherokee that haven’t been done in a long, long while.”