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Marketing Executives Council November 14, 2007 MEC Mission Statement To advance the automotive aftermarket supplier industry through collaborative marketing and communication solutions. Marketing Executives Council November14, 2007 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. Marketing Executives Council November14, 2007 Today’s Agenda • Welcome and Introductions (Tarnacki) • Review of Anti-trust guidelines (Bruno) • AASA Vision Conference 2008 (Cameron) Overview and Update • Membership and Market Research (Spera) Recruitment and Retention Value Proposition • AAPEX Overview (Beck) 2007 Show Review AASA Involvement • Supplier Image (Cameron, Altenberger) China / AAPEX Initiative Standard of Excellence / Code of Ethics Marketing Executives Council November14, 2007 Today’s Agenda • Lunch & Telephone / e-mail break • Breakout Sessions AAPEX Show Committee (Beck) AASA Membership – (Spera) AASA Supplier Image –(Cameron & Arent Fox) • Breakout Group Reports (Group Leaders) • General Discussion – (Tarnacki) • Chairman & Vice Chairman – terms (Cameron) • Meeting format & frequency Marketing Executives Council November14, 2007 AASA Vision Conference 2008 Marketing Executives Council November14, 2007 AASA Vision Conference 2008 Event: • Inaugural gathering of all AASA members Format: • General sessions w/ Keynote Speakers • Three Vision Sessions (Breakouts) • Networking Opportunities Location: • Orlando, Florida • Swan and Dolphin Resort Dates: • Thurs. 2/28/08- MEC • Fri. and Sat. 2/29-3/1/08- Vision Conference Registration Info: • $695 / Early Bird $595 extended to year-end • Additional team members $495 • On-line direct at www.aasavision.org Marketing Executives Council November14, 2007 AASA Vision Conference 2008 Keynote Speakers / Topics: • Peter Marks, chairman, president & CEO, Robert Bosch Corp and other top executives speaking on – Breaking New Ground within the Aftermarket Industry Success Stories from Other Leading Global Industries Where the New Horizon Is – The Future Emerging Markets Direction of Future Automotive Technologies Vision Sessions of Focus: • Member Collaboration Facilitators: Susan Ulrey, Tenneco & Dil Kulathum, Cardone • Education and Training Facilitators: Mac McGovern, KYB & Doug Vidler, Delphi • Selling and Sourcing Globally Facilitators: Jeff Brekke, Gates & Jeff Stauffer, Affinia Marketing Executives Council November14, 2007 AASA Membership Recruitment and Retention Marketing Executives Council November14, 2007 AASA Membership Overview AASA Mission: AASA serves as the voice of the automotive aftermarket suppliers and is a recognized industry change agent, promotes a collaborative industry environment, provides a forum to address issues and serves as a valued resource for members Marketing Executives Council November14, 2007 AASA Membership Overview AASA Value Proposition • AASA leads the North American aftermarket supplier through the expanding global market place through these strategic areas of focus: Government Affairs International Opportunities and Challenges North American Supplier Industry Image and Industry Analysis Industry Collaboration Brand Protection and Intellectual Property Rights Education and Training Marketing Executives Council November14, 2007 AASA Membership Overview AASA Membership Summary • 248 manufacturing members • 80% of NA aftermarket manufacturers are members AASA Member Involvement • Product and Peer Groups (MEC, GAC, BPC, FPMC) • Tradeshows and Events • Industry Projects and Studies (ADV, Roundtables, Event Committees) Marketing Executives Council November14, 2007 AASA Membership Overview AASA Member Recruitment • Why join AASA? • How do we promote AASA value to new members? • Best way to market to new potential members? Marketing Executives Council November14, 2007 AASA Membership Overview AASA Member Retention • Member involvement • Member services • Member communications • New services and benefits Marketing Executives Council November14, 2007 AAPEX 2007 Overview Marketing Executives Council November14, 2007 AAPEX 2007 Overview Exhibitors: 2016 Members: 973 Non-members: 1030 Comps (associations) 13 New exhibitors 836 Total booths 4825 2006 Comparison Members: 45 Non-members: -99 Comps (associations) 1 New exhibitors -9 Total booths -176 Total registration 119,000* *Estimated Verified 2006 total: 115,329 Marketing Executives Council November14, 2007 AAPEX 2007 Overview WT Glasgow general comments: • Better show, more energy • Improved activity on Thursday • 21 Green Zone exhibitors: traffic disappointing, so considering moving it to the Parkway in 2008 • Registration lines cut by advance mailing of badges and lanyards • 31 IPR/counterfeit complaints: 6 companies and NHTSA (non-compliant lighting) • Expects to meet 2007 budget Marketing Executives Council November14, 2007 AAPEX 2007 Overview AASA Activities: • Executive Breakfast: Highest attendance ever = 640 • News conference: MEC supplier image campaign, Special Report: “Direct Importing,” Direct Importing ad • AASA/NHTSA Seminar: 75 attendees • Executive Lunch with Ernst & Young: 30 attendees • AAIW/OAC International Reception: nearly 900 • AASA member services: Member Center Member Packets Marketing Executives Council November14, 2007 AAPEX 2007 Overview MEC Discussion Topics: • Upcoming joint meeting with AAIA Marking Committee from 10 a.m.-3 p.m., Tuesday, Dec. 18, at Robert Bosch, Broadview, Ill. Purpose: Develop AAPEX promotion and marketing to increase attendance and participation Facilitated by trade show expert, Sam Lippman Kathleen Schmatz of AAIA and Steve Handschuh of AASA slated to attend • AASA Show Committee Chaired by Barry Harris, Timken Holds first meeting today; future meetings TBD Purpose: Assist AASA with all AAPEX-related matters and serve as counterpart to AAIA AAPEX Show Committee • What was your AAPEX 2007 experience? Traffic, Logistics, Breakfast(s), etc. Marketing Executives Council November14, 2007 AAPEX 2007 Overview AASA Board Comments: • Wifi connection still not working • Responsive to IPR/counterfeiters • Increased non-member exhibitor fees driving more international companies to join AAIA • Registration for non-exhibiting manufacturers will increase in 2008; registration rate will not (SEMA) • Demonstrations/”entertainment” – limited opportunity; no room at Sands Marketing Executives Council November14, 2007 AAPEX 2007 Overview Joint Meeting with AAIA Marketing committee • 10 a.m.-3 p.m., Tuesday, Dec. 18 • Robert Bosch, Broadview, Ill. • Purpose: Develop AAPEX promotion and marketing to increase attendance and participation • Facilitator: Sam Lippman, well-known trade show expert • 11 MEC attendess to date: more needed Sign up today! Confirm travel arrangements with Jack Cameron Marketing Executives Council November14, 2007 AASA Supplier Image Marketing Executives Council November14, 2007 AASA Supplier Image Direct Import Threat: • Special Report / White Paper – “Direct Importing: Do the Risks Outweigh the Reward?” China Quality / AAPEX Initiative: • Committee: Brian Tarnacki, Brian Altenberger, Pam Krebs, Laura Sullivan, Mark Boyle, Theresa Spera • Task: Strike while China quality concerns are still making headlines – target AAPEX show • Result: Trade ad in AAPEX Show Daily – “Its Not About Where Products Are Made. It’s About Who Stands Behind Them.” • Original Ad: “AASA Assurance” – Your best assurance quality replacement automotive parts… supplier members of Automotive Aftermarket Suppliers Association. AAPEX Press Conference – NHTSA Seminar Marketing Executives Council November14, 2007 Marketing Executives Council November14, 2007 Marketing Executives Council November14, 2007 AASA Supplier Image AASA Standard of Excellence: • Sara Bruno / Arent Fox reviewed other industry initiatives Code of Ethics – Group consensus on the best method to pursue • Objections by some top execs question the role of AASA in such an undertaking • Improved Supplier Image is the end game • Breakout Session will take a deep dive Strategic Plan Build on momentum and positive feedback Overcome objections Marketing Executives Council November14, 2007 Breakout Groups Marketing Executives Council November14, 2007 Marketing Executives Council November14, 2007 MEC Breakout Groups Group 1: AAPEX Show Committee (Beck) Barry Harris, chairman Brian Couch Tony Battaglia Kevin Burton Brian Tarnacki Brian Altenberger Dil Kulathum Meg Vanderlaan Group 2: AASA Membership and Market Research (Spera) Group 3: Supplier Standard of Excellence (Cameron) Marketing Executives Council November14, 2007 2007 In Review: Slides of AASA Supplier Standard of Excellence and Improving the Image of the NA Supplier Marketing Executives Council November14, 2007 Communications Campaign (session 1) Universal advertising campaign that can be repurposed for all target audiences • Primary goal of campaign will be designed to elevate the North American Aftermarket Supplier • Secondary goal of campaign will be to promote AASA to industry, members and media • Get approval from AASA board of governors to create an RFP to put for bid of a complete ad campaign that would include the following: Print ads Franchise pieces Web site Public relations strategy and campaign Advertising strategy for trade publications, financial publications and consumer media Marketing Executives Council November14, 2007 AASA Supplier Standard of Excellence (session 1) • “Standard of Excellence” will encompass the value-added supplier elements • Create a logo / seal for North American suppliers to utilize on packaging, ads, collateral materials that will reinforce the “Standard of Excellence” that they adhere to in their products, businesses and operations • Criteria can be designed and analyzed by a third party firm and administered and managed by AASA Marketing Executives Council November14, 2007 AASA Supplier Standard of Excellence Criteria (session 1) • • • • • • • • • • • • Quality Supply Safety standards Training Product lifecycle management Cataloging / pricing Innovation / latest technology Designed for the aftermarket Warranty We are the “parts” experts We’re more efficient/profitable to do business Intellectual property Marketing Executives Council November14, 2007 Brand Planning Process Where are we? Why are we there? Are we getting there? How do we get there? Marketing Executives Council Where could we be? November14, 2007 Where Are We? (session 1) • “Brands” are highly valued in the aftermarket... • However, we have lost: share to OE dealers share to LCC’s (Low Cost Countries) control of Brands to retailers/distributors Marketing Executives Council November14, 2007 Where Should We Be? (session 1) • Primary target: end user (professional installers / DIYers) • Other audiences: distributors/retailers, government, Wall Street, vehicle owners • Have them trust the aftermarket supplier Build our credibility Get credit for what we do • Regain share from the LCC’s and OEMs Marketing Executives Council November14, 2007 How Do We Get There? (session 1) • Aftermarket supplier standard of excellence - value-added supplier • Value-added standards: • Quality Supply Safety standards Training Product lifecycle management Cataloging / pricing Innovation / latest technology Designed for the aftermarket Warranty We are the “parts” experts We’re more efficient/profitable to do business with Manpower Intellectual property Support with communications campaign • • Code of conduct Focus on the positive All sing from the same hymn book Better IP protection Better industry standards (data, quality…) Enforce adoption Marketing Executives Council November14, 2007 Need to flesh out Communications Campaign to enhance the Image of NA Supplier (session 2) Communications Campaign • How do we know we are getting there: Measure market share in North America pre and post by product line or by dealer share • Measurements: Interest/response level of other AASA members • Pre and post evaluations: Survey key buyers pre & post • Frequency: Every six months Marketing Executives Council November14, 2007 Communications Campaign to enhance the Image of NA Supplier (session 2) Communication Phase 1: • Target audience: Suppliers. • Message: Include meaning, measurements and some information from surveys regarding differentiation. How to get certified, where to get more information • Assumption: Standard is determined. Marketing Executives Council November14, 2007 Communications Campaign to enhance the Image of NA Supplier (session 2) Communication Phase 2: • Target audience: Buyers and technicians • Message: Informational regarding the standard • Assumption: Standard is determined and some suppliers already have it. Marketing Executives Council November14, 2007 Communications Campaign to enhance the Image of NA Supplier (session 2) **Prior to communication, benchmark the current market to have a pre and post opinion regarding certification. Benchmark other industries (UL or JD Powers) to understand their communication process and their methods. Marketing Executives Council November14, 2007 Criteria for Standard of Excellence (session 2) 1. Basic Criteria for Standard of Excellence • Product Quality • Must adhere to industry standards (ISO, TS) or proprietary standards Supply proof for sourced product Adhere to current safety standards Carry product liability insurance NHTSA standards, OSHA standards, etc. No banned substances Marketing Executives Council November14, 2007 Criteria for Standard of Excellence (session 2) 1. Basic Criteria for Standard of Excellence • Cannot engage in illegal activities or business practices • Training • Tech line Provide Catalog • No IP violations ACES compliant Conduct e-commerce with customers Marketing Executives Council November14, 2007 Criteria for Standard of Excellence (session 2) 2. Cost of qualification or application • • AASA Member - Minimum fee or reduced fee Non-members to pay a higher fee or equivalent of membership dues for their category 3. Who Can apply for Standard? • • Any North American Aftermarket supplier Have three different application/cost levels Company (highest) Product (middle) Brand (lowest) Marketing Executives Council November14, 2007 Results of Breakout Groups“Top Five things that can be done NOW to Reinforce doing Business with a North American Supplier” Marketing Executives Council November14, 2007 China Quality • Recent events involving toothpaste, dog food, toys and now tires highlight the need for special care when sourcing products from here or abroad. • Is all product coming from China poor? No • How can you ensure that the product you source meets rigorous standards for quality, reliability and safety? Marketing Executives Council November14, 2007 Solution • • • • • • Source from experienced, global aftermarket suppliers Quality/supplier certifications Rigorous product testing Engineering/manufacturing expertise We stand behind our products Training and technical support Cataloging Marketing Executives Council November14, 2007 Communication Vehicles • • • • • • • • • • Ad Press conference AAPEX booths Press release Editorial campaign PowerPoint Collateral Website Value-add template (Proliance) White paper Marketing Executives Council November14, 2007