Marketing Executives Council August 19, 2008. Marketing Executives Council August 19, 2008 Mission...

Marketing Executives Council

August 19, 2008

Marketing Executives Council August 19, 2008

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.


Today’s Agenda Welcome and Introductions (Tarnacki) Review of Anti-trust guidelines (Bruno) Review Supplier Image Initiative (Cameron)

• Background / Progress to Date• Review of Options

Lunch / Networking / Telephone Break Wrap-up Supplier Image Discussion (Cameron)

• Final Discussion and Decision• Next Steps

Market Research (Cameron)• Currently Available• Needed – Survey Results

What Are Your Products Doing Online? (Bruno) Free-Cat (Brent Berman) Council Updates (Cameron) Wrap-up & Adjourn (Tarnacki)


Anti-Trust Guidelines It is the unqualified policy of the Motor & Equipment Manufacturers Association to conduct its operations in strict compliance with the antitrust laws of the United

States.

MEMA'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.


Supplier Image Initiative

Since its inception, the MEC has continued to advance the idea of a Standard of Excellence to distinguish value-added suppliers from all others.

Progress has been impeded by…• Some members including board members concern over

AASA’s role in a certification program.• Business case development and presentation to gain buy-in

from the AASA board. (Nov ‘07, Feb ‘08, May ’08)

Brings us to today…• Draft of AASA Seal of Supplier Excellence Proposal• The NEED to review other options


AASA Seal of Supplier Excellence

The Current State of the North American Automotive Aftermarket Supplier Image (Option A)• Heightens the awareness of the value-added services

and provides AASA membership value down stream through the development and licensing of a “Seal”

• Similar to “Good Housekeeping Seal of Approval”• Incorporates many elements:

– Standards of Excellence– Code of Ethics– License Agreement– 3rd Party Administrator– Governance and Oversight

• Review Committee• Arbitration Process


AASA Seal of Supplier Excellence Option A

Standards of Excellence• Ten clearly defined standards – page 9• Request Form – page 14

– Signed “Code of Ethics”– Required answers / description by requestor– Required proof of performance / documentation– Non-refundable application fee inclusive of first year

license fee• Establishment of 3rd Party Administrator

– Collects and stores all documentation– Verifies completeness not accuracy

• Establishment of Review Committee (2 staff, 5 members)– Approves / disapproves all requests– Reviews and Rules in all arbitration


License Agreement• Signed Agreement – page 17• Fees structure

– Application fee $1500 inclusive of first year license– Annual renewal fee of $1000

• Use of fees obtained– A portion, not to exceed 25%, may be needed for

administration– Balance of annual fees funds association marketing

of program• Potential Issues

– Amount of fees– Non-refundable feature– Annual collections

AASA Seal of Supplier Excellence Option A


AASA Supplier Image Campaign

The Current State of the North American Automotive Aftermarket Supplier Image (Option B)• Heightens the awareness of the value-added services

and provides AASA membership value down stream through an industry message marketing campaign

• Similar to “Got Milk?”• Incorporates elements of:

– Standards of Excellence as a Best Practice– Creation of an Annual Supplier Excellence Award– Employment of a professional marketing firm


Standards of Excellence• Ten clearly defined Best Practices – page 9• Annual Supplier Excellence Award

– Nomination form – page 13– Nominated by and voted on by customers (all

channels)• Establishment of an Award Committee

– Solicits nominations– Reviews and tallies votes

AASA Supplier Image Campaign Option B


Professional Marketing Firm• Bid process – page 10

– Minimum of 3 firms invited to bid– Firm given 60 days to develop and submit proposal– Firms present programs at November MEC meeting

• Scope – page 10– Overall theme and tagline creation– Marketing of annual award– Communications/advertising/media plan with costs– Creative ways to involve sponsors to defray costs

• Selection – page 10– Must be or become an affiliate member of AASA if

selected– Judged on overall merit, creativity and perceived

effectiveness not lowest cost

AASA Supplier Image Campaign Option B


Supplier Image Initiative Option Next Steps

Option A: the “Seal”• Legal scrubbing

– Assurance of legal precedent– Creation of official documents

• Decision / consensus on:– Fees– Role of Administrator– Role of Review Committee– Arbitration Process

• Sell, Sell, Sell– AASA Board of Governors– Members– Channel Partners / Customers / Industry


Supplier Image Initiative Option Next Steps

Option B: the “Campaign”• Scope and Bid Criteria• Potential Marketing Firms / Bidders• Funding• Sell, Sell, Sell

– AASA Board of Governors– Members– Channel Partners / Customers / Industry


Supplier Image Initiative Recommendation

Option B: the “Campaign”• Less controversial• Easier buy-in / approval• Potentially less start-up cost• Quicker ramp-up• More marketing focused• Far less complicated• Non-confrontational• Maintains control within MEC• Eliminates maintenance costs – admin,

collections, etc


Lunch


Supplier Image Initiative Decision

Option A or B? Option C??? Next Steps:

• See previous slide• Committee selection• Update to Board on September 5


Market Research AASA Automotive Aftermarket Status Report

(published)

• US & Global Motor Vehicle Parts Market• Automotive Industry Data• Vehicle Sales Data• Vehicle Demographics • Maintenance & Repair by Sub-sectors• Global Overview including major emerging markets

AASA Other• Supplier Barometer (participants only, e-format)

• Replacement Rates (member only, downloadable PDF) HANDOUT

• World Motor Vehicle Markets Report (OAC published)• Market Analysis (members only, e-format)

• Industry & Economic Trends (Member-only web site)

• Product Line Reporting (member/subscriber only)


Unique Market Research “How’s Business” – Sales and Profits

• Net Sales• Net Income• Aggregate total and trend line

“State of the Aftermarket” – Key Performance Indicators

• Published price increase• Cost of goods sold – raw materials• Returns – Warranty, Obsolescence, total• Segmented – Co. Size, Market, Product

Benefits• Allows benchmarking• Spots trends among top companies• Strategic planning tool • Used to describe industry dynamics• AASA membership value & differentiation


Market Research Survey

MEC Market Research Survey• 30 MEC members / 24 companies• 5 responses

Market Research / Data Difficult to Obtain• Import Specialist Market• Global especially by product category size and share• Engine Parts Data• Product Market Share• Service Shop Repairs Performed

Rank of Ideas – NOW!• Please rank in importance as to how it might help• Please indicate your company’s willingness to share

data• Please give your ideas on additional topics


State of the AftermarketMock-up

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Key Performance Indicators by Customer Segment

NOTE: Expressed in Percent of Net Sales



Key Performance Indicators by Supplier Size

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Filters

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Water Pumps



AASA and NAM2008 Benchmarking

Source: Manufacturing Performance Institute

• Scrap and rework rate (as % of sales) • Cost of goods sold (COGS) • Warranty cost (as % of sales) • Return on invested capital (ROIC) • Customer reject rate (parts per million) • Training hours and investment • Customer retention rate • Operating Equipment Efficiency (OEE) • Overseas sales (% of total dollar volume) • Machine availability • Cycle times • Market focus • Imported material and components from China (% of dollar volume purchased from China) • On-time delivery rates • Imported material and components (% of dollar volume purchased outside the U.S.) • Improvement approaches (i.e., Lean, Six Sigma, etc.)


What Are Your Products Doing Online?

Sarah BrunoArent Fox


Break – 15 minutes


Free-Cat

Brent BermanFederal Mogul


Council Updates AAPEX Joint-Association Marketing Sub-committee Vision Conference Follow-up

• Global Selling & Sourcing– List of in-country 3rd party QC & inspection services in China– Benchmarking – Soon to launch link to NAM– AASA Member Global Database – Planned from Harris/D&B

• Collaboration– Survey & evaluation of freight consolidation program– Consulting & assisting on Free-Cat

• Training– Exploratory session planned on forming Training Council

AAPEX – NetworkNow! - Webinar? Membership

• 30 Members / 24 Member Companies• Other areas of marketing participate as Alternate Member• Prospect suggestions?

Other


Wrap-up and Adjourn

Next Meeting:November 18Chicago, ILLocation???

Marketing Executives Council August 19, 2008. Marketing Executives Council August 19, 2008 Mission...

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Transcript of Marketing Executives Council August 19, 2008. Marketing Executives Council August 19, 2008 Mission...