Marketing Executives Council February 20, 2007
MEC Mission Statement
To advance the automotive aftermarket supplier industry
through collaborative marketing and communication solutions.
Marketing Executives Council February 20, 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 February 20, 2007
How is the MEC Different?
• MEC was created strictly for aftermarket supplier marketing executives.
• MEC will focus on solving challenges specific to the North American aftermarket supplier and create opportunities to improve our collective image and strength.
Marketing Executives Council February 20, 2007
MEC Structure and Dues• Council is organized under AASA, the
aftermarket segment association of MEMA.
• An Advisory Committee was formed during 2006 to help establish the Council’s mission, objectives and structure.
• MEC Chairman: Brian Tarnacki, Director, Marketing – New Products, Federal-Mogul
• MEC Vice chairman: Brian Altenberger, Global Marketing Director, Delphi Product and Service Solutions
Marketing Executives Council February 20, 2007
MEC Structure and Dues
Council Membership:
• Open to only AASA member companies
• Two council representatives per AASA member company
• Executive level membership
Marketing Executives Council February 20, 2007
MEC Structure and DuesCouncil Meetings:• Four meetings per year (one per quarter)• Three regular council meetings -working
sessions• One large annual conference (2008
target) Open to other member personnel and
industry executives • Annual dues set at $2,000 per member
company (2 executives per company limit)
Marketing Executives Council February 20, 2007
Today’s Agenda (Morning)
9:30 amAftermarket Data Discussion (Gardner)- Update on Other Aftermarket Data Initiatives
10:15 am AAPEX Update (Handschuh)10:30 am Be Car Care Aware Update
(Tarnacki)10:45 am Supplier Image Enhancement
(Owens)- Where Are We?- Why Are We There?
11:45 am Break12:00 pm Lunch
Marketing Executives Council February 20, 2007
Today’s Agenda (Afternoon)
12:30 pm Supplier Image Enhancement
(Breakout Sessions)
- Where Should We Be?
- How Do We Get There?
2:00 pm Breakout Group Presentations
2:45 pm Break
3:00 pm MEC Summary of Breakout Groups
Strategic Recommendations for AASA Board
4:00 pm Adjourn
Marketing Executives Council February 20, 2007
Optimizing Data for the Aftermarket Supplier
Presented by:
Chris Gardner, Vice PresidentAASA
Marketing Executives Council February 20, 2007
Agenda
• Overview
• Data Types
• Data Communication Problems
• POS Data
• Digital IPR Issues
• Internal Data Management
Marketing Executives Council February 20, 2007
Overview
Aftermarket Data – information in digital formats used to manage business, conduct commerce with trading partners or provide
intelligence for planning
Marketing Executives Council February 20, 2007
Data Types
• Vehicle Attribute
• Product Attribute
• Catalog Application
• POS Data (transactional)
• Market Research
• Consumer / Behavioral
Marketing Executives Council February 20, 2007
Data Communication Problems
• ProblemsLack of consistency among resellersComplicated standards (ACES)Lack of executive mandates
• SolutionsEducationReceivers GroupIDM for manufacturers
Marketing Executives Council February 20, 2007
POS Data
Uses
• Category Management
• Product Management
• Brand Management
Marketing Executives Council February 20, 2007
POS Data
Issues• Need better visibility of store-level
transactions• Need better forecasting capabilities• Myriad of customer data being
introduced• No manufacturer influence• Manufacturers pay for data that
provides limited benefits
Marketing Executives Council February 20, 2007
POS Data - Vista
• Activant recorder at store/counter
• Application parts
• Look-ups, purchases, applications
• 1,300+ stores
• Available in several product categories
• Pricing range: $10,000 - $40,000
• AASA Preferred Member Pricing
Marketing Executives Council February 20, 2007
POS Data - Industry
Data Sources
• Activant store systems
• Wrenchead customer data
• Miscellaneous business systems
• Program groups
• Retailers
Marketing Executives Council February 20, 2007
POS Data - Industry
AASA Task Force• Seven manufacturers
Affinia Group, Cardone, Delphi, Federal-Mogul, Gates, Tenneco, Visteon
• Gain control over process (TecDoc model)
• Influence cost, format and delivery• Aggregate data across all major
sources
Marketing Executives Council February 20, 2007
POS Data - Industry
Benefits
• Control/influence process
• Elimination/reduction of forced expenditures
• Simplified data integration
• Improved planning and supply chain processes
Marketing Executives Council February 20, 2007
Digital IPRAreas of Concern• Electronic catalog• Product attributes• Pricing• Images• Line drawings
Marketing Executives Council February 20, 2007
Digital IPRMember Input- VP International Business VP International Business
Development for AASA member companyDevelopment for AASA member company
“We recently had a customer request that we remove our copyright statements on our catalog data. It’s not hard to guess what’s behind that request.”
Marketing Executives Council February 20, 2007
Digital IPRIssues
• Reverse engineering / “cherry picking”
• Counterfeiting Brand copying
Part copying
• Category/product management De-valuing full line suppliers
Off-shoring
Contract manufacturing
Marketing Executives Council February 20, 2007
Digital IPR
Member Input- Director of Information Director of Information Technology of an AASA member companyTechnology of an AASA member company
“The only way we’ll have successful seamless data flow in the future is if there are security controls on who is accessing the content.”
Marketing Executives Council February 20, 2007
Digital IPR
Member Input- Manager of catalog Manager of catalog applications of an AASA member companyapplications of an AASA member company
“Even with protective language in our customer agreements, we have to be willing to walk away from business if a customer uses our data IP to source with an off-shore supplier…so far sales hasn’t been willing to do that.”
Marketing Executives Council February 20, 2007
Digital IPR
Member Input- Michael Cardone Jr., Michael Cardone Jr., Cardone IndustriesCardone Industries
“We must protect our intellectual property rights that we deliver through our value-add.”
Marketing Executives Council February 20, 2007
Internal Data Management
• Data environment internal to mfgs.Multiple formats, owners, locationsLittle if any synchronization with
customersPoor visibility
• Enables one version of the truth
• Required for seamless e-commerce with customers
Marketing Executives Council February 20, 2007
Internal Data Management
IDM Program by MIS Council
• Webinar by two PIM providers
• Member survey
• Focus group activity
• White paper on best practices
Marketing Executives Council February 20, 2007
Internal Data Management
Benefits
• Eliminates significant data mgmt costs
• Feeds executive dashboard applications
• Reduces errors in invoices, inventory, forecasting, etc.
• Helps prepare product data for customers
• Helps prepare for data synchronization
Marketing Executives Council February 20, 2007
AASA IT & Data Management
Contact InformationChris Gardner
919-406-8830
Marketing Executives Council February 20, 2007
AAPEX Update
Presented by:
Steve Handschuh, PresidentAASA
Marketing Executives Council February 20, 2007
Car Care Aware Update
Presented by:
Brian Tarnacki
Director, Marketing – New ProductsFederal-Mogul
Marketing Executives Council February 20, 2007
Historical Perspective
2000 AAIA Determined Need for Consumer Education -- $62 billion
2001 Conducted viability research
Created workgroup
Began designing campaign
2002 Finalized campaign, name, logo, Web site, etc.
Incorporated Car Care Council
Announced at AAIA Town Hall
2003 Full campaign launch
2004 $10 million publicity value
2005 $12.8 million publicity value
2006 Car Care Guide introduced, gas price frenzy
Marketing Executives Council February 20, 2007
2006 Media Value
Budget $500,000
2005 – ROI $12.9 million
29% increase over 2004
2006 estimate – $15 million
Marketing Executives Council February 20, 2007
Car Care Guide
• Resource guide for vehicle maintainers
• Non-threatening; easy to use
• Two main sections Typical Maintenance and Repair
Why I Need It; Typical Service; Questions To Ask
Vehicle Systems and Parts What Is It; What Does It Do; Wear
Factors; Symptoms
• Also contains checklist and index
Marketing Executives Council February 20, 2007
Field-Tested
• Three audiences Female Vehicle Maintainers
Male Vehicle Maintainers
Shop Owners/Managers
• Geographically dispersed markets St. Louis, Mo.
Philadelphia, Pa.
Phoenix, Ariz.
• Discussed attitudes toward vehicle ownership and maintenance; reviewed Car Care Guide mock-up
Marketing Executives Council February 20, 2007
Car Care Guide Marketing
• Added to online Media Kit
• Featured on “NASCAR Angels”
• Trade press house ads
• PRNewswire releases
• Newspaper syndicated articles
• Newspaper op-ed
Marketing Executives Council February 20, 2007
Car Care Guide Marketing
• Added to campaign POS starter kits
• Copies to broadcast and print media
• Polybag with Aftermarket Insider
• Lauren Fix in top 15 media markets
• New video segments & podcasts
• Meetings with groups & associations
• Polybag with February Brake & Front End
Marketing Executives Council February 20, 2007
Printing & Distribution
Since June 2006…
• First million printed & distributedCustomizedIndividual copiesBulk orders
• Second million being printed
Marketing Executives Council February 20, 2007
Participating Accounts
• Alliance Group
• AutoZone
• NAPA
• Meineke
• CARQUEST
• Pronto
• Gemini
• More to come
Focus has been on getting retailers, program groups and service chains to promote and distribute the guides to their customers…
Marketing Executives Council February 20, 2007
2007 Priorities
• Re-design Web site
• Build participation in Car Care Months
• Explore new technologies to reach Generation Next motorists
• Expand Car Care Guide distribution
Marketing Executives Council February 20, 2007
What Can Manufacturers Do?
• Provide “feet on the street” to promote the guides to parts stores and installers
• Include guide and order form in installer mailings
• Promote guide in customer newsletters / communications
• Help customers build programs• Other ideas?
Marketing Executives Council February 20, 2007
Supplier Image Enhancement
Presented by:
Jon Owens
Babcox
Marketing Executives Council February 20, 2007
Breakout Groups
Discussion points:
• Prioritize target audiences
• What thoughts or behaviors do we want to reinforce or change?
• What strategies should we deploy to accomplish the above?
Marketing Executives Council February 20, 2007
Group 1
Kevin Burton (Four Seasons)
Frank Oliveto (ADVICS)
Dave Touchette (Cooper Bussmann)
Chris Brant (AC Delco)
Mitch Bolinsky (Permatex)
Laura Sullivan (Akebono)
Rob Christi (Dayco)
Marketing Executives Council February 20, 2007
Group 2
Scott Howat (Affinia)
Ray Swetman (Airtex)
Tom Tecklenburg (Honeywell)
Mark Sprague (NGK)
Barry Harris (Timken)
Meg Vanderlaan (Gates)
Frank Murkowski (Tenneco)