Transcript Slide 1

Marketing Executives Council
August 13, 2009
Today’s Agenda
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Welcome and Introductions - Altenberger
Mission and Purpose - Altenberger
Review of Anti-trust guidelines - Lupo
Supplier Image Task Force - Tarnacki
OptiCat – Brad Duncan & Stas Mintowt-Czyz
Lunch
Social Networking and Media – Jonathan Ressler
Legal Review: Social Networks – Tony Lupo
Market Pulse - Cameron
Council Business – Altenberger
• MEC Self-assessment Discussion
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August 13, 2009
Mission Statement
To advance the automotive aftermarket supplier
industry through collaborative marketing and
communication solutions.
Purpose
Forum for aftermarket supplier marketing
executives to collaborate in helping improve the
state and image of the North American
manufacturer base.
The Council will serve a major role in helping AASA
communicate to key audiences and develop
communication strategies and action items.
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Anti-Trust Guidelines
It is the unqualified policy of the Automotive Aftermarket Suppliers
Association to conduct its operations in strict compliance with the
antitrust laws of the United States.
AASA's antitrust policy prohibits any discussions which constitute or
imply an agreement or understanding concerning: 1) prices,
discounts, or terms or conditions of sale; 2) profits or profit
margins or cost data; 3) market shares, sales territories or markets;
4) allocation of customers or territories; 5) selection, rejection or
termination of customers or suppliers; 6) restricting the territory
or markets in which a company may resell products; 7) restricting
the customers to whom a company may sell; or 8) any matter
which is inconsistent with the proposition that each manufacturer,
wholesaler and distributor must exercise its independent business
judgment in pricing its services or products, dealing with its
customers and suppliers and choosing markets in which it will
compete.
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Supplier Image Initiative
 Task Force (Tarnacki – leader,
Altenberger, Burton, Cameron, Harris)
• Met four times since last MEC in May
• Initiatives:
– Creative Brief – finalized with new tag line
– NASCAR – public service announcement
– Special Reports & Executive Summary
• Buying Influences of Repair Professionals
• Industry Image: Quality Does Matter
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Supplier Image Initiative
 Creative Brief (handout)
• ID: “AASA Full Service Suppliers”
– Voted on by you
– Conveys several messages
• Inclusive of all AASA members
• Implies premium and value-added
• Value-added as “Essential Services”
– Replaces an out dated phrase
– Conveys several messages
• Implies that they are critical and necessary
• Irreplaceable
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Supplier Image Initiative
 NASCAR Public Service Announcement
• University of the Aftmkt Foundation Grant
• Air-time donated by NASCAR
– In-race on ESPN (9 @ :30 spots)
– NASCAR content Speed TV (140 @ :10 spots)
• Timeline:
– Develop script/concept – August
– Produce PSA – early September
– Run schedule – October/November
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Supplier Image Initiative
 Draft PSA Copy
" The vehicle you drive is one of your most important
investments. Protect that investment by properly
maintaining your vehicle. By following the
recommended maintenance schedule and using
quality parts, you can ensure that your vehicle
operates safely and efficiently well into the future.
In NASCAR, we know that not all parts are created
equal. Be sure to ask your automotive service
provider about the parts being used on your car.
Your best value today is premium branded parts
from quality aftermarket parts suppliers. NASCAR
urges you to KNOW YOUR PARTS!"
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Supplier Image Initiative
 Special Reports
• Buying Influences of Repair Professionals
– Includes an Executive Summary
– Results from focus groups
– Industry call to action in the conclusion
• Independent Aftermarket Image
– Follow-up to above and cornerstone
– Frames the impact low-cost products have
throughout the supply chain
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August 13, 2009
Supplier Image Initiative
 Communications Plan
• Advance copies to service trade for
article development
• Press Release on first Special Report
• Posted to public AASA Web site
• Followed in two weeks by Press Release
on second Special Report
• Update/re-release Direct Importing and
Distributor Liabilities as part of series
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Supplier Image Initiative
 In the News…
SHOPS REPORTEDLY ILL AT EASE WITH PRIVATELABEL PARTS, PREFER OE
“In a press release offering a glimpse inside a new report titled “Frost
& Sullivan Speaks Candidly with U.S. Automotive Shop Owners,”
the Mountain View, CA-based research firm states that repair shop
owners consider OE parts far superior than their private label
counterparts in fit and functional quality and continue to promote
their value to customers, despite the current focus on low-cost
repairs. Frost & Sullivan points out that this comes as
manufacturers, retailers and WDs patronize private labels, as they
are economical, with better margins and revenues.”
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Supplier Image Initiative
 In the News…
“Quality products from quality
suppliers have been the foundations
of this industry, and that is the
simple solution to this potential
problem.” – Gary Molinaro
Greensheet Perspective in response to light
weight brake rotor issue
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Supplier Image Initiative
 Next Steps
• Task force to continue development
– Other PR opportunities
– Ways for AASA to include messaging in
their own efforts
– Additional Special Reports
– Other ideas?
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OptiCat
(see separate slide deck entitled OptiCat 081309)
Brad Duncan, CEO
Stas Mintowt-Czyz, VP Sales & Marketing
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Lunch
Start again at 1:00
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Social Networking and Media
(see separate slide deck entitled Social Media JR 081309)
Jonathan Ressler
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Legal Perspective: Social Media
(see separate slide deck Arent Fox Social Media 081309)
Tony Lupo, Arent Fox
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Break
Start again at 3:15
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Market Pulse
 Survey Results:
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Inaugural survey went out 7/20/09
Original deadline extended to 8/7/09
Sent to executives list, approx. 700
30 participants
– Only half requested results
• Aggregate results furnished to MEC
– Detailed results by company size and product
category available to participants only
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AASA Market Pulse
AASA Market Pulse
AASA Market Pulse
Under Hood
Under Car
General Service
Parts
Cooling/AC/Temp
Control
Chemicals
Tools and
Equipment
Other, please
specify
From $50 to
Over $500 Do not wish
$500
million
to answer
million
32.3%
35.5%
3.2%
Total
Under $50
million
100.0%
29.0%
31
9
10
11
1
11.1%
3
33.3%
1
10.0%
2
20.0%
1
10.0%
2
20.0%
5
45.5%
3
27.3%
2
18.2%
4
40.0%
1
9.1%
5
17.2%
5
17.2%
6
20.7%
2
6.9%
2
6.9%
2
6.9%
7
24.1%
2
22.2%
2
22.2%
1
11.1%
1
1
100.0%
AASA Market Pulse
Returns
Average warranty returns % of net sales.
Average obsolescence returns % of net sales.
Average discrepancy returns % of net sales.
Average of all other returns % of net sales.
Sum of return categories
3.28%
2.01%
1.15%
1.86%
8.3%
All other
returns
22%
Order
discrepancies
14%
Obsolescence
24%
Warranty
40%
AASA Market Pulse
Operations
Order fill rate % of unit volume of sales.
Order fill rate % of dollar value of sales.
Order turnaround time in days.
Overnight shipping directly to stores, % of business.
93.87%
95.13%
7.3
2.92%
General selling and sales administration expenses
% of net sales.
Average defect rate in defects per million units.
15.31%
841
Weighted % change on last published price sheet.
(Jobber net )
Current days sales outstanding.
(AR divided by average daily sales)
Percent change in net sales from prior quarter.
3.25%
56.4
8.73%
Market Pulse
 Additional Questions Suggested
• Supply Chain Efficiency
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Order Turnaround time
Drop shipments/Cross Docking
Customer ordering cycles
Overnight Special Ordering
• Credit
– Terms
– Cash to cash cycles
– Participation in draft programs
• Customer Information
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Collaboration levels
Category Management participation
Use of Point of sale information
Utilization of suppliers tech services
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Market Pulse
 Additional Questions, continued
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Inventory
Turns
SKU's inventoried
New Part Numbers Introduced
Time to market of current models
Latest Age of SKUs
Cataloging
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Frequency of updates
Time to get information into 3 rd party catalogs
Time to get information into customer catalogs
On line catalogs
• Proportion of orders/invoices where shortage is claimed
– Percentage of worst case customer
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Market Pulse
 Additional Questions, continued
• Sales force
– Reps or Factory
– Level of service in supply chain ( WD, jobber, retail store, installer)
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Customer Training
Fuel Surcharges
Trade Show Participation
Customer Trade Show Participation
International Trade Show Participation
Off shore content
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finished product
raw materials
engineering
programming
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August 13, 2009
MEC Self-assessment
 Re-evaluate MEC mission and goals
• MEC Mission Statement “To advance the automotive aftermarket supplier industry
through collaborative marketing and communication
solutions.”
• MEC Purpose “Forum for aftermarket supplier marketing executives to
collaborate in helping improve the state and image of the
North American manufacturer base.
The Council will serve a major role in helping AASA
communicate to key audiences and develop
communication strategies and action items.”
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August 13, 2009
MEC Self-assessment
 Membership and dues
• Current $2000 (meetings / projects)
• Proposed $1000 (meetings only)
– Drive new membership
– Promote member retention
 Meeting frequency and venue
• Maintain four meetings a year
– Consolidate with events (Vision, AAPEX)
– Utilize Webinar for one meeting
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MEC Self-assessment
 MEC leadership
• Board of Governors to include:
– Chairman
– Vice Chairman
– Immediate Past Chairman (non-voting)
– Two Board members at-large (two-year,
staggered terms)
– AASA staff executive
• Recommended that positions be voted by
incumbent BOG rather than popular vote
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MEC Self-assessment
 Future Meeting Agendas
• On-going (every meeting)
– Supplier / Industry Image
– AASA Marketing Communications Update
– Market Pulse Results / Update
– Roundtable / Open discussion
• Topics / Guest Speakers
– Outside Research – Polk, IMR, Experian
– Advertising Effectiveness
– Outsourcing – catalog, fulfillment, shows
– Legal Issues – 3rd party, green, data
protection
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Wrap-up and Adjourn
Next Meeting:
November 5
AASA Member Center
AAPEX
9:00 – 12:00
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Thank You!
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Back-up Slides
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Market Pulse
 Initial survey categories:
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Warranty returns percent of net sales
Obsolescence returns percent of net sales
Discrepancy returns percent of net sales
All other returns percent of net sales
Weighted average change on latest published price sheet
General selling expenses percent of net sales
Defects per million units
Order fill rate percent of units
Order fill rate percent of dollars
Order turnaround time in days
Days sales outstanding
Percent change in net sales
Overnight shipping
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August 13, 2009