marketing executives council may 19, 2008. marketing executives council may 19, 2008 today’s...

Marketing Executives Council

May 19, 2008

Marketing Executives Council May 19, 2008

Today’s Agenda Welcome and Introductions (Tarnacki) Review of Anti-trust guidelines (Fleischaker) Review Supplier Image Initiative (Altenberger &

Tarnacki)• AASA board feedback and input• Next Steps and consensus• Breakout group assignments

Breakout / Work Groups • Defining Standards of Excellence• Overcoming Objections & FAQs• Marketing Plan & Budget

Lunch Breakout / Work Group Reports & Discussion (30 mins

each) Polk – presentation & discussion Roundtable Discussion – open topics 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.

Supplier Image Initiative Business Case• Some members including board members expressed concern

over AASA’s role in certification• Business case was developed for submission and buy-in from

the AASA board

Talking Points from the board meeting as follows…


Goal: Discuss Supplier Image Initiative - why it is important, what it is, what it is not and gain buy-in for moving forward.

Primary objective of the MEC is to develop a strategy for improving supplier image and awareness of the value added services provided. This has been on each meeting agenda since its inception in 2006.

Among issues identified by the council facing suppliers today, include:• Inferior products entering the country that pose safety, quality and

reliability concerns• Effects of the imported products on other components within the vehicle

(which could lead to premature failures, unnecessary warranty claims, etc.).• Continued loss and appreciation by customers of value-added services and

programs• Increased momentum of virtually all aftermarket components becoming

commodities (which will lead to a market driven only by price)• Degradation of brand equity• Further erosion of North American manufacturing• Negative impact on the image of the independent aftermarket (pushing sales

to OE service outlets)

Talking Points


Key elements of the Supplier Image Initiative:• What does it mean to be an AASA member?• Regarding country-of-origin, it is not about where a product is made

but rather who develops and stands behind it• Retailers, distributors, program groups, jobbers and technicians can

have confidence in companies that hold membership in AASA since they provide quality products supported by essential services and programs required to facilitate the aftermarket

The MEC will develop and present to the board a recommendation for the Supplier Excellence enhancement to AASA membership.

• Additional tiered status of membership, a Premier status, attainable by meeting minimum guidelines

• Not a certification but a standard of excellence• Administered by submitting to a “code of ethics” at the time of

membership and subsequent annual renewal Our desired result is to extend the value of membership in AASA down to the

customer level and back that up with a tangible list of standards that not all AASA members may attain but should be attainable by all members choosing to meet the qualification.

Talking Points


AASA Board Feedback

Some were extremely supportive of this effort and while not the only answer, a positive step in the right direction.• Heightens the awareness of the value-added services• Provides AASA membership value down stream

Some were still skeptical of what it will accomplish and concerned that instead of differentiation might bring validation.• Needs rigid definition to standards so not all can claim

adherence• Concern that it puts all AASA members on same level and

removes competitive advantage

We did receive their buy-in to proceed and develop a recommendation…


Breakout / Work Groups

1. Standards of Excellence and Definitions

2. Overcoming Objections and FAQs

3. Marketing Plan and Budget


Breakout / Work Group #1

Finalize list of standards1. Sales representation / manpower2. Credit terms3. Marketing programs4. Industry standard cataloging5. Product specifications6. Quality control7. Product liability8. IP protection9. Technical support and training10. Category management11. Other?

Provide comprehensive definitions to each

Appoint a spokes person and prepare report out for discussion…



Develop a list of objections / concerns1. Can’t any company claim to adhere to these standards?2. Doesn’t this level the playing field instead of differentiate?3. Does this elevate the smaller AASA members through association?4. Is this fair to the larger companies that have made greater

investments?5. It is not the role of AASA or any association to certify members!6. What prevents an AASA member from simply answering “yes” to

all?7. How does AASA police the process?8. How are violators to the process dealt with?9. Is there an audit process to ensure honesty?10. Standards of Excellence… so what?11. Others?

Provide comprehensive and defendable answers to each




How do we designate AASA members that adhere to the Standards of Excellence?

Creative Brief.1. What is the problem / issue we need to address?2. What is the role of communication?3. Who are we targeting?4. What insights do we have?5. What is the core branding message?6. What is the desired response?7. What are the ways to communicate the message?8. What are the elements of the campaign?9. What is the desired result?

Provide a rough budget



Work Group Reports

1. Standards of Excellence and Definitions

2. Overcoming Objections and FAQs

3. Marketing Plan and Budget


R. L. Polk and Company

AASA Marketing Executives Council

May 19, 2008

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R.L. Polk & Company

Founded in 1870 - privately held

>30 years dedicated to automotive industry – its all we do!

1,400 employeesGlobal Company focused on Global TransportationGlobal HQ - Southfield, MI– Europe: Paris & Essen– Far East: Beijing

CARFAX

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Automotive Intelligence ®

Polk shows you what’s selling, who’s buying and how to reach them– Automotive statistical intelligence– Analytical experience and data depth– Automotive marketing services & solutions

Automotive Industry Focused– Aftermarket– OEM’s/Dealers– Agencies/Traffic Builders– Finance & Insurance– Commercial Vehicles– Media– Government

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AAIA Technology Standards and Solutions Committee

– Active participant for over 10 years

– Donated data toward standards development

AAIA Category Management Committee

AAIA Market Research Committee

AMRC

MEMA – MIS Council

AASA Vision Conference

R.L. Polk & Company – Industry Involvement

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Data Sourcing and Compilation

Purchase registration records

– States

– Canadian Provinces

– Puerto Rico

VIN specifications from OEMs

Data flows continuously

– Daily, weekly, monthly

– Name, address, VIN

Data factory

– Organizes, normalizes and assures consistency

– Compiles various statistical products

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Customer Service

Data licensed by most leading manufacturers, distributors,

and retailers

Customers also include oil and tire companies

90+% annual license renewal rate

Licensees receive access to Analytical Consultants, IT

Professionals, Product Strategy Managers, and Account

Executives

Strive to be an extension of our client’s business

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Product Capability Overview

ConsultingConsulting

List SolutionsList SolutionsStatisticalStatistical

AnalyticsAnalytics

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National Vehicle Population Profile (NVPP®)

Vehicle registration profile– 250+ million passenger cars and light trucks in the United States– 19 million passenger cars and light trucks in Canada– 9.2 million motorcycles and ATVs in the U.S.

• (states where registration is required)

Ongoing registration tracking– New registrations– Changes to registrations– Geographic changes

Identify “1st Time” registrations– Helps with product management of filters, friction, wipers, etc.

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National Vehicle Population Profile (NVPP®)

Vehicle attributes

Geographic detail– National– State– DMA– County– Zip Code– Census Block

Mapped to AAIA Legacy and ACES

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NVPP® - Merging with Other Sources

Tire Fitment Data

The resulting combinationsare powerful tools for both top-level and

market-level planning anddecision making

NVPP® VehicleRegistration

Data VehicleMileage

VehicleValues

WardsCatalog

Data

Sales or Shipment

Data

New for New for 20082008

New for New for 20082008

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Additional Statistical Data

Other datasets include:

TIP®Net (Trucking Industry Profile)– Class 1-8– Fleet coding– Tied to geography

NVPP® for Motorcycles and ATVs

NEWREG® (New (& Used) Vehicle Registrations)– Global forecasting

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Global Statistics

45 countries Cars – 44 countries LCV <=3.5 t –17 countries HCV >3,5t

AmericaCars – LCV

Argentina

Brazil

Canada

Chile

Mexico

USA

AfricaCars – LCV

South Africa

Australia

Asia-PacificCars – LCV

Indonesia

Japan

Malaysia

South Korea

Taiwan

Thailand

RussiaCars - LCV

Israel

Near/ Middle East

Cars – LCV

Slovakia

Eastern Europe

Cars – LCV

Czech Republic

Hungary

Poland

Turkey

Slovenia

Croatia

Croatia

Slovenia

Estonia

Latvia

Lithuania

Ukraine

Western Europe

Cars – LCV – HVC

Ireland

Greece

Denmark

Portugal

Netherlands

Norway

Belgium

Finland

Austria

Big Five

Switzerland

Luxemburg

Sweden China: Cars -New

registrations 2002 - today

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Provides detailed OE parts research for Europe

Analyze new applications fitment to vehicles

Quantify portfolio gaps based on the vehicle PARC

Utilize fact-based information to enter, expand or reduce market coverage

Detailed Vehicle description content for catalogue

Compare your application content against the OE fitment data

EURO-AMS® - Global OE Research

Euro-AMS combines the market information of vehicle applications, parts data sets available and Parc data to assist the automotive aftermarket with global product management

Euro-AMS combines the market information of vehicle applications, parts data sets available and Parc data to assist the automotive aftermarket with global product management

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Global collection of PC/LT OEM production vehicle descriptions & attributes – 1995-forward

Research analysts collect and analyze a wide range of data, including:

Base Prices Destination Charges Interior and Exterior Dimensions Engine and Transmission Specifications Steering, Braking and Tire Specifications Manufacturer’s Equipment Descriptions and Codes Color Photographs Exterior Colors and Interior Trim Warranty and Owner Assistance Programs MSRP, List Price Rebates & Incentives And more … over 500 vehicle attributes

Polk Price & Specification Data

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Sample Data Fields

Generic Spec:

Standard EngineEPA ClassCurb WeightWheelbaseFuel CapacityTow CapacityCylindersHorsepowerFuel SystemStandard PayloadTire TypeEtc . . .

Rebates:

Amount24 Month APRExpiresEtc . . .

Seats:

Front Bench SeatFront Heated SeatSecond Row Bench SeatThird Row SeatCloth SeatLeather SeatCargo NetCupholdersEtc . . .

Safety:

BrakesSafety RollbarRemote IgnitionVehicle Anti-TheftWheel LocksValet LockoutEtc . . .

Interior:

CD PlayerNavigational AidVideo PlayerRear Window DefoggerCompassGenuine Wood TrimSunroof / MoonroofEtc . . .

Others:

EnginesColorsCrashEngine SpecificationsExteriorEtc . . .

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Available Countries (37)

United States

Argentina

Chile

Israel

Near/ Middle East

Slovakia

Eastern Europe

Czech Republic

Hungary

Poland

Turkey

Western Europe

Ireland

Greece

Denmark

Portugal

Netherlands

Norway

Belgium

Finland

Austria

Big Five

Switzerland

Sweden

Asia-Pacific

Indonesia

Japan

Malaysia

South Korea

China

Thailand

Australia

Taiwan

Hong Kong

N. Zealand

Philippines

Singapore

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List Solutions for the Aftermarket

Polk Garage Predictors™

– Statistical models that identify households most likely to own a vehicle

– Target households by:• What vehicles they are likely to own

• What they are likely to buy

• When they are likely to buy

• How much they are likely to spend

Market to DIY/DIFM consumers

Market to Ethnic consumers

Commercial Account File– Direct Marketing database and fulfillment system for the motor vehicle

industry, containing over 18,000,000 businesses

– Used to target fleet customers

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Information Process Management

Polk’s Approach:Polk’s Approach:

• Perform current IPM analysisPerform current IPM analysis

• Share industry Best PracticesShare industry Best Practices

• Provide outline of future global aftermarket IPM requirementsProvide outline of future global aftermarket IPM requirements

• Assist with development of strategy for developing required capabilitiesAssist with development of strategy for developing required capabilities

• Facilitate implementation of the strategyFacilitate implementation of the strategy

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Process Specific to Catalog Managers

eCat Publishers Third-Party Data Providers

Retailers

Print Catalogs

eCat Publishers

OE Data Legacy Systems, Inventory, Supply Chain, Order, EDI, etc.

Web Planning, Scrappage, Holes, Coverage, etc.

Comp. X-ref/ Interchange, Comp. Pricing, etc.

Images, Line Drawings, Engineering Data, etc.

Application Files

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Closer Relationship with AASA & MembersCloser Relationship with AASA & Members

Currently working with various publications and associations– Cars, Light Trucks & Commercial Vehicles – Global basis– Gratis– Fee basis

How best to work closer with AASA and members?– Monthly, Qtrly, Annual reports– Subscription-based special marketing studies– Global overviews for members only– AASA-specific info for newsletters, website, etc.– AASA “special pricing”

Long term studies for AASA members only?

What’s on AASA members’ minds?

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Next steps…Next steps…

Where to focus– New registrations– Global– Medium Duty– Commercial Vehicle

Timeframe

Distribution

Communication to members

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Polk Commercial Account Database

Direct Marketing Use (non-statistical)Tracks Business Vehicle FleetsAllows for selections based on:– Fleet characteristics (size, new/used, purchase date,

price class, etc.)– Vehicle characteristics (make, model, year, body style,

series, fuel code, drive type, GVW, etc.)– Geography (U.S. level—ZIP) and SIC code

Includes passenger cars, light trucks and heavy commercial14 million businesses (D&B)15 million vehicles (Polk)


Marketing Executives Roundtable Discussion


Wrap-up and Adjourn

Next Meeting:August 19Detroit, MI

marketing executives council may 19, 2008. marketing executives council may 19, 2008 today’s...

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