Marketing Executives Council
August 13, 2009
Marketing Executives Council 2 August 13, 2009
Today’s Agenda 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
Marketing Executives Council 3 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.
Marketing Executives Council 4 August 13, 2009
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.
Marketing Executives Council 5 August 13, 2009
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
Marketing Executives Council 6 August 13, 2009
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
Marketing Executives Council 7 August 13, 2009
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
Marketing Executives Council 8 August 13, 2009
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!"
Marketing Executives Council 9 August 13, 2009
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
Marketing Executives Council 10 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
Marketing Executives Council 11 August 13, 2009
Supplier Image Initiative
In the News…SHOPS REPORTEDLY ILL AT EASE WITH PRIVATE-LABEL 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.”
Marketing Executives Council 12 August 13, 2009
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 MolinaroGreensheet Perspective in response to light weight brake rotor issue
Marketing Executives Council 13 August 13, 2009
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?
Marketing Executives Council 14 August 13, 2009
OptiCat(see separate slide deck entitled OptiCat
081309)
Brad Duncan, CEOStas Mintowt-Czyz, VP Sales &
Marketing
Marketing Executives Council 15 August 13, 2009
Lunch
Start again at 1:00
Marketing Executives Council 16 August 13, 2009
Social Networking and Media(see separate slide deck entitled Social Media JR
081309)
Jonathan Ressler
Marketing Executives Council 17 August 13, 2009
Legal Perspective: Social Media
(see separate slide deck Arent Fox Social Media 081309)
Tony Lupo, Arent Fox
Marketing Executives Council 18 August 13, 2009
Break
Start again at 3:15
Marketing Executives Council 19 August 13, 2009
Market Pulse
Survey Results:• 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
AASA Market Pulse
AASA Market Pulse
AASA Market Pulse
TotalUnder $50
million
From $50 to $500
million
Over $500 million
Do not wish to answer
100.0% 29.0% 32.3% 35.5% 3.2%
31 9 10 11 1
Under Hood 5 1 5 17.2% 10.0% 45.5%
Under Car5 1 2 3
17.2% 11.1% 20.0% 27.3% General Service
Parts6 3 1 2
20.7% 33.3% 10.0% 18.2% Cooling/AC/Temp
Control2 2
6.9% 20.0%
Chemicals2 2
6.9% 22.2% Tools and Equipment
2 2 6.9% 22.2%
Other, please specify
7 1 4 1 124.1% 11.1% 40.0% 9.1% 100.0%
AASA Market PulseReturns
Average warranty returns % of net sales. 3.28%Average obsolescence returns % of net sales. 2.01%Average discrepancy returns % of net sales. 1.15%Average of all other returns % of net sales. 1.86% Sum of return categories 8.3%
AASA Market PulseOperations
Order fill rate % of unit volume of sales. 93.87%Order fill rate % of dollar value of sales. 95.13%Order turnaround time in days. 7.3Overnight shipping directly to stores, % of business.2.92%
General selling and sales administration expenses % of net sales. 15.31%Average defect rate in defects per million units. 841
Weighted % change on last published price sheet. (Jobber net ) 3.25%Current days sales outstanding. (AR divided by average daily sales) 56.4Percent change in net sales from prior quarter. 8.73%
Marketing Executives Council 25 August 13, 2009
Market Pulse
Additional Questions Suggested• Supply Chain Efficiency
– 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 – Collaboration levels – Category Management participation – Use of Point of sale information – Utilization of suppliers tech services
Marketing Executives Council 26 August 13, 2009
Market Pulse
Additional Questions, continued• Inventory • Turns • SKU's inventoried • New Part Numbers Introduced • Time to market of current models • Latest Age of SKUs • Cataloging
– 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
Marketing Executives Council 27 August 13, 2009
Market Pulse
Additional Questions, continued• Sales force
– Reps or Factory – Level of service in supply chain ( WD, jobber, retail store,
installer)
• Customer Training • Fuel Surcharges • Trade Show Participation • Customer Trade Show Participation • International Trade Show Participation • Off shore content
– finished product – raw materials – engineering – programming
Marketing Executives Council 28 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.”
Marketing Executives Council 29 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
Marketing Executives Council 30 August 13, 2009
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
Marketing Executives Council 31 August 13, 2009
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
Marketing Executives Council 32 August 13, 2009
Wrap-up and Adjourn
Next Meeting:November 5
AASA Member CenterAAPEX
9:00 – 12:00
Marketing Executives Council 33 August 13, 2009
Thank You!
Marketing Executives Council 34 August 13, 2009
Back-up Slides
Marketing Executives Council 35 August 13, 2009
Market Pulse
Initial survey categories:– 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