Supplier Image

• A component of AASA’s mission is to promote and enhance supplier image

• Marketing Executives Council formed in 2006 with this as the primary objective

• The MEC is comprised of the top marketing executives from over 40 of the leading AASA member companies

Supplier Image

• The MEC developed a list of value-added or “essential” services which differentiate AASA full-service suppliers from generic, short-line and/or value-line suppliers

• While the degree of excellence for these essential services may vary among AASA members, they are offered by all and define a full-service supplier

Standards of Excellence

1. Sales representation

2. Local availability

3. Marketing programs

4. Application cataloging

5. Product specifications

6. Quality control

7. Product liability

8. IP protection

9. Tech support / training

10.Category management

Essential Services supplied by AASA

full-service suppliers include:

Standards of Excellence

• Essential Services are supplied to channel partners at no cost, yet come at great expense to full-service suppliers

• Channel partners have come to expect these services and are not always considered in the buying decision

• Direct importing, value lines and private label have taken valuable market share away from the full-service supplier

Validation

• The MEC focused on the buying influences of the repair professional

• Existing market research:– Automotive Service Association (ASA)– Babcox Publishing Tech Group

• New market research:– Focus group study

ASA Member Surveys

• The study examined the use of OE-purchased parts vs. aftermarket-purchased parts as well as country of origin preferences

• This study revealed that service providers want more information about “what’s in the box” (i.e., country of origin, specifications, certifications, labeling, etc.)

ASA Member Surveys

They still buy the majority of their products from aftermarket sources

ASA Member Surveys

60 percent of respondents said that aftermarket parts had a positive impact on their business; 74 percent said OE parts had a positive impact

ASA Member Surveys

About 29 percent said that quality problems with aftermarket parts had a negative impact on their business, compared to only 6 percent for OE parts

• Types of questions in their survey of techs: – Specifying particular brands– Consumers’ preference in brands– Where they receive information on products– Importance of factors in deciding on a

particular brand– Type of parts purchased from OE dealer

Babcox Tech Group Surveys

Babcox Tech Group Surveys

Importance of Factors in Deciding Brand of Part(a higher value = more important)

1.9

3

3.4

3.8

3.9

4

4.3

4.8

3.2

0 1 2 3 4 5 6

Promotion/contest

Tech Hot Line/training

Low price

Informative catalog

Full line coverage

Lifetime w arranty

Strong brand name

Available @ primary parts source

Quality/f it/function

Average Rating Given

Parts Sources for the Typical Location

51%

16% 15%

8%

5%2%

4%

0%

10%

20%

30%

40%

50%

60%

Jobber/WD Retailer OEM Dealer Expediter Manuf.direct

Online Other

Per

cen

tag

e o

f T

ota

l Pu

rch

ases

Babcox Tech Group Surveys

Babcox Tech Group Surveys

Factors Influencing Purchases from OE Dealers

4%

8%

16%

23%

62%

72%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Wholesale pgm.

Fast delivery

Price

Customer wants OE

Quality/fit

Only source for part

Percentage of Respondents

Focus Group Study

• The MEC commissioned an independent third party to conduct focus groups on the buying influences of the repair professionals

• Three geographic regions – Raleigh, NC; Chicago, IL; and Los Angeles, CA

• More than 60 participants, including:– Shop owners– Technicians– Service advisors

Focus Group Study

Some Key Findings:

• Quality of aftermarket parts has significantly improved

• Brand comes before country of origin

• House brands sell on price alone

• OE quality is still important

• Quality first – everything else is secondary

Focus Group Study

Top considerations on choosing a particular brand

0

0

0

100%

32.6%

17.3%

39.1%

6.5%

4.3%

0 10 20 30 40 50 60 70 80 90 100

Form/Fit/Function

Price

Strong Brand Name

Previous Experience with Brand

Lifetime Warranty

Speed of Delivery

Rebates/Marketing Programs

Availability at Primary Source

Same Brand I'm Taking Off

Focus Group Study

How often do you specify a particular brand?

41%48%

9%

2%0

10

20

30

40

50

60

70

80

90

100

Very Often Sometimes Not often Never

The Campaign

The Marketing Executives Council of AASA developed a public awareness campaign to educate and inform everyone throughout the supply chain, especially the repair professional, of the importance of using quality parts from trusted full-service suppliers.

The Situation

• Low-cost, low-quality auto parts are finding their way into all aftermarket channels

• Outsourcing methods are replacing popular premium, branded parts

• Essential services offered by Full Service Suppliers are being taken for granted

The Risks

• Safety threat – consumer and technician• Product liability • Loss of essential services • Companies forced out of the aftermarket • Consumers driven to dealers• Irreparable damage to the Independent

Aftermarket

Know Your Parts!

The Challenge:• Full Service Suppliers to design, engineer and

produce quality parts and to promote brand and essential services;

• Channel Partners to promote brand name products from trusted Full Service Suppliers and support suppliers’ programs;

• Repair Professionals to diagnose, repair and replace broken or worn-out components with only premium quality parts;

• Vehicle Owners to ask about the parts being installed and research the brand before authorizing repairs.

Know Your Parts!

• AASA Special Report: Independent Repair Industry: Focus Group Findings on Buying Influences of Repair Professionals

• AASA Special Report: Independent Aftermarket Image: Quality Does Matter

• PSA video produced by NASCAR Performance• AASA “Know Your Parts” materials

– FAQs, Full-service Suppliers, pocket card, etc.

• Web site http://kyp.aftermarketsuppliers.org

Know Your Parts!• Supplier Participation opportunities

1.Dedicated Ad Placement

2.Logo Placement

3.Web Site Link

4.Video Promotion

5.Material Distribution

6.Training Materials

7.Training Web Site Link

8.Customer Promotion

9.Peer Networking

Employee Education

Join theAASA Know Your Parts

campaign!kyp.aftermarketsuppliers.org

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Know Your Parts!

Know Your Parts!

• Videos– Public Service Announcement produced by

NASCAR

– Know Your Parts “Boys under the Hood” produced by MontAd

Know Your Parts – Public Service Announcement

Know Your Parts – “Boys Under the Hood”

Know Your Parts!

Do not allow the actions of a few to destroy the reputations of many.

The independent automotive aftermarket industry needs to stand united.

Know Your Parts!

Know Your Parts!

Thank You!