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Transcript
Marketing Executives
Council
February 28, 2008
Today’s Agenda
•
•
•
Welcome and Introductions (Tarnacki)
Review of Anti-trust guidelines (Bruno)
Supplier Image Business Case (Cameron)
 Overview and Feedback
•
Getting the Message Out (Owens)
 AASA Proposal and Media campaign
•
•
Break 10:30
Distributor Liabilities (Bruno)
 New Special Report follow-up to Risks of Direct Import
•
•
Lunch 11:30
AAPEX – AASA Involvement (Gardner)
 AASA Show Committee expectations
•
AAPEX – Joint Association Marketing Sub-Committee (Harris)
 Sub-Committee Mission
 Open Discussion
•
Wrap-up & Adjourn (Tarnacki)
Marketing Executives Council
February 28, 2008
Supplier Image Initiative
Since its inception, the MEC has continued to advance the
idea of a Standard of Excellence to distinguish valueadded 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 in last MEC breakout
to educate and gain buy-in before moving further
• Presentation to the BOG tomorrow
• Move toward a formal recommendation by next BOG
meeting
Marketing Executives Council
February 28, 2008
Business Case – Talking Points
•
The Marketing Executives Council has requested time on AASA Board of
Governors agenda to discuss its Supplier Image Initiative - why it is important,
what it is, what it is not and our hope to gain buy-in for moving forward.
•
When the MEC was formed, its primary objective was 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).
Marketing Executives Council
February 28, 2008
Business Case – Talking Points
•
The Supplier Image Initiative, as it has become known, focuses on these elements
to address the identified issues:
 What does it mean to be an AASA member?
 When it comes to 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 knowing that
member companies will provide quality products supported by important
value-added services and programs.
•
Over the past year or more, the MEC has developed a road map answering the
questions of – where we are; where we should be; and, how we should get there,
which is in your copy of the business case.
•
Our proposal to you is that we want to develop and present to you at a future
meeting, our recommendations on a Supplier Excellence enhancement to AASA
membership.
 This enhancement would be an additional tiered status of membership, a
Premier status if you will, only attainable by meeting minimum guidelines,
which you can see an example of in the Business Case.
 It is not a certification but rather standards of excellence.
 Legally, these would be administered by submitting to a “code of ethics” at
the time of membership and subsequent annual renewal.
Marketing Executives Council
February 28, 2008
Business Case – Talking Points
•
•
The minimum standards of these guidelines should be both attainable for the vast
majority of current membership yet meaningful as to provide value downstream.
It is proposed that the following be adopted as minimum standards:
 Sales representation / manpower
 Credit terms
 Marketing programs
 Industry standard cataloging
 Product specifications
 Quality control
 Product liability
 IP protection
 Technical support and training
 Category management
It may be necessary to amend these guidelines in the future; however it is believed
that this is a reasonable start. While these minimum standards may appear
inherent to all suppliers to the aftermarket, it is believed that for many short-line
and/or off-shore suppliers they will be difficult to obtain.
Marketing Executives Council
February 28, 2008
Business Case – Talking Points
•
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 qualify for but should be attainable. Additionally, we want to
heighten the awareness of the value added services by our members as well as the
intangible benefits of dealing with well known and respected suppliers.
•
This is only one part of the Supplier Image Initiative but it is the foundation.
Without it we will have to choose an entirely different direction. However, it is the
combined thought of the Marketing Executives Council, your marketing experts,
that this is the best course of action.
•
All details are not yet finalized and a formal recommendation is forthcoming.
However, without your buy-in we are reluctant to move forward.
•
Questions?
Marketing Executives Council
February 28, 2008
Getting the Message Out
on Supplier Image
Jon Owens, Babcox
Marketing Executives Council
February 28, 2008
Break
15 minutes
Marketing Executives Council
February 28, 2008
Distributor Liability What You Need to Know
Presented by
Sarah Bruno, Esq.
Arent Fox PLLC
Washington, DC
February 28, 2008
Distributor Liability
You can be liable!
–Counterfeiting
–Product Liability
–Recall Issues
There are several theories for holding the
distributor accountable…
Distributor Liability – What You Need to Know.
Active Participation
 Active Participation in a Counterfeiting Scheme
• Obviously, distributors can be liable for active
participation.
• Microsoft case – distributor found liable for failing to act
to remove counterfeit goods after receiving notice.
But it is not limited to active participation…Distributors
can be liable for simply "ignoring" what appears to be
illegal.
Distributor Liability – What You Need to Know.
“Willful Blindness”
 Distributors are liable for being “willfully blind”
• They should have known about the counterfeit goods or they failed
to inquire.
• Factors the courts have considered:
– Where the goods were purchased
– Whether the goods were sold with the authenticating documentation
– Whether the quality differs from the quality expected by consumers
– The pricing of the goods
– Evidence on billing slips
Distributor Liability – What You Need to Know.
What does this mean for you?
Pay attention to the details....
• Packaging slips – do they look tampered, altered or raise red flags
for other reasons?
• Quality – is the product of the quality that you expected?
• Safety standards – does the product include the safety
specifications?
• Country of origin – was the product manufactured in the country
that you expected?
• Trademarks and logos – do they look authentic?
Distributor Liability – What You Need to Know.
Pay Attention to the Logos and
Packaging Elements
 Trademarks - It can be a product name, logo, trade name,
part number, the name of a service, the color and design of
a product’s packaging.
Distributor Liability – What You Need to Know.
Contractual Protection
- Protect yourself contractually
- Have an agreement with the manufacturer that asks them to
indemnify you for any claim of infringement.
- Warranty provision from the manufacturer attesting to the
legitimacy of the product.
- Be vigilant! Look for the red flags and then take action
when you come across them.
- Notify the manufacturer when you believe there is a
counterfeit goods problem.
Distributor Liability – What You Need to Know.
Product Liability
Distributors may also be found liable for damage or harm
caused by a defective product
•
A distributor may be “strictly liable” if it is in the chain of
distribution. This means that it can be found liable without any
evidence that they were negligent or acted willfully.
•
A distributor can also be liable if the advertising or product label
indicates the product is manufactured by the distributor.
•
A distributor can also be liable if the foreign manufacturer is
located outside of the U.S.
Distributor Liability – What You Need to Know.
What Can you Do?
 Trust your gut - if something doesn’t seem right, pull it,
or contact the manufacturer and put them on notice of
the problem.
 Protect yourself contractually
• Require the manufacturer to indemnify you.
• Require the manufacturer to meet all the required safety
specifications.
• Require the manufacturer to warranty the quality of the product
and the fact that it meets the appropriate safety standards
Distributor Liability – What You Need to Know.
Lunch
30 minutes
Marketing Executives Council
February 28, 2008
AAPEX Overview
Chris Gardner, AASA
Marketing Executives Council
February 28, 2008
AAPEX Joint Association
Sub-Committee
Barry Harris, Timken
Marketing Executives Council
February 28, 2008
General Discussion / Wrap-up
• Meeting Format & Frequency
 Original charter called for a two-day meeting once
per year
 Addition of Networking Opportunities – one of the
most valuable assets
 2008 Remaining Schedule:
May 22 in conjunction with GAAS - Chicago
August 19 in conjunction with BPC - Detroit
November 18 - Chicago
• MEC membership recruitment / prospects
• What’s on Your Mind? Comment or pass
• Adjourn
Marketing Executives Council
February 28, 2008
Next Meeting
May 22 in Chicago
following GAAS
Marketing Executives Council
February 28, 2008
Back-Up Slides
2007 In Review:
Slides of AASA Supplier Standard of
Excellence and Improving the Image of
the NA Supplier
Marketing Executives Council
February 28, 2008
Communications Campaign
(session 1)
Universal advertising campaign that can be repurposed for all
target audiences
• Primary goal of campaign will be designed to elevate the North
American Aftermarket Supplier
• Secondary goal of campaign will be to promote AASA to industry,
members and media
• Get approval from AASA board of governors to create an RFP to
put for bid of a complete ad campaign that would include the
following:
 Print ads
 Franchise pieces
 Web site
 Public relations strategy and campaign
 Advertising strategy for trade publications, financial publications and
consumer media
Marketing Executives Council
February 28, 2008
AASA Supplier Standard of
Excellence
(session 1)
• “Standard of Excellence” will encompass
the value-added supplier elements
• Create a logo / seal for North American
suppliers to utilize on packaging, ads,
collateral materials that will reinforce the
“Standard of Excellence” that they adhere
to in their products, businesses and
operations
• Criteria can be designed and analyzed by
a third party firm and administered and
managed by AASA
Marketing Executives Council
February 28, 2008
AASA Supplier Standard of
Excellence Criteria
(session 1)
•
•
•
•
•
•
•
•
•
•
•
•
Quality
Supply
Safety standards
Training
Product lifecycle management
Cataloging / pricing
Innovation / latest technology
Designed for the aftermarket
Warranty
We are the “parts” experts
We’re more efficient/profitable to do business
Intellectual property
Marketing Executives Council
February 28, 2008
Brand Planning Process
Where are we?
Why are we there?
Are we getting there?
How do we get there?
Marketing Executives Council
Where could we be?
February 28, 2008
Where Are We? (session 1)
• “Brands” are highly valued in the
aftermarket...
• However, we have lost:
share to OE dealers
share to LCC’s (Low Cost Countries)
control of Brands to retailers/distributors
Marketing Executives Council
February 28, 2008
Where Should We Be? (session 1)
• Primary target: end user (professional
installers / DIYers)
• Other audiences: distributors/retailers,
government, Wall Street, vehicle owners
• Have them trust the aftermarket supplier
 Build our credibility
 Get credit for what we do
• Regain share from the LCC’s and OEMs
Marketing Executives Council
February 28, 2008
How Do We Get There?
(session 1)
•
Aftermarket supplier standard of excellence - value-added supplier

•
Value-added standards:













•
Quality
Supply
Safety standards
Training
Product lifecycle management
Cataloging / pricing
Innovation / latest technology
Designed for the aftermarket
Warranty
We are the “parts” experts
We’re more efficient/profitable to do business with
Manpower
Intellectual property
Support with communications campaign


•
•
Code of conduct
Focus on the positive
All sing from the same hymn book
Better IP protection
Better industry standards (data, quality…)

Enforce adoption
Marketing Executives Council
February 28, 2008
Need to flesh out
Communications Campaign to
enhance the Image of NA
Supplier
(session 2)
Communications Campaign
• How do we know we are getting there:
Measure market share in North America
pre and post by product line or by dealer
share
• Measurements: Interest/response level
of other AASA members
• Pre and post evaluations: Survey key
buyers pre & post
• Frequency: Every six months
Marketing Executives Council
February 28, 2008
Communications Campaign to
enhance the Image of NA
Supplier
(session 2)
Communication Phase 1:
• Target audience: Suppliers.
• Message: Include meaning,
measurements and some
information from surveys regarding
differentiation. How to get certified,
where to get more information
• Assumption: Standard is
determined.
Marketing Executives Council
February 28, 2008
Communications Campaign to
enhance the Image of NA
Supplier
(session 2)
Communication Phase 2:
• Target audience: Buyers and
technicians
• Message: Informational regarding
the standard
• Assumption: Standard is
determined and some suppliers
already have it.
Marketing Executives Council
February 28, 2008
Communications Campaign to
enhance the Image of NA
Supplier
(session 2)
**Prior to communication, benchmark
the current market to have a pre
and post opinion regarding
certification. Benchmark other
industries (UL or JD Powers) to
understand their communication
process and their methods.
Marketing Executives Council
February 28, 2008
Criteria for Standard of
Excellence
(session 2)
1. Basic Criteria for Standard of Excellence
• Product Quality


•
Must adhere to industry standards (ISO,
TS) or proprietary standards
Supply proof for sourced product
Adhere to current safety standards



Carry product liability insurance
NHTSA standards, OSHA standards, etc.
No banned substances
Marketing Executives Council
February 28, 2008
Criteria for Standard of
Excellence
(session 2)
1. Basic Criteria for Standard of Excellence
• Cannot engage in illegal activities or
business practices

•
Training

•
Tech line
Provide Catalog

•
No IP violations
ACES compliant
Conduct e-commerce with customers
Marketing Executives Council
February 28, 2008
Criteria for Standard of
Excellence
(session 2)
2. Cost of qualification or application
•
•
AASA Member - Minimum fee or reduced fee
Non-members to pay a higher fee or equivalent
of membership dues for their category
3. Who Can apply for Standard?
•
•
Any North American Aftermarket supplier
Have three different application/cost levels



Company (highest)
Product (middle)
Brand (lowest)
Marketing Executives Council
February 28, 2008
Results of Breakout Groups“Top Five things that can be
done NOW to Reinforce doing
Business with a North
American Supplier”
Marketing Executives Council
February 28, 2008
China Quality
• Recent events involving toothpaste,
dog food, toys and now tires highlight
the need for special care when
sourcing products from here or abroad.
• Is all product coming from China poor?
No
• How can you ensure that the product
you source meets rigorous standards
for quality, reliability and safety?
Marketing Executives Council
February 28, 2008
Solution
•
•
•
•
•
•
Source from experienced, global
aftermarket suppliers
Quality/supplier certifications
Rigorous product testing
Engineering/manufacturing expertise
We stand behind our products
Training and technical support
Cataloging
Marketing Executives Council
February 28, 2008
Communication Vehicles
•
•
•
•
•
•
•
•
•
•
Ad
Press conference
AAPEX booths
Press release
Editorial campaign
PowerPoint
Collateral
Website
Value-add template (Proliance)
White paper
Marketing Executives Council
February 28, 2008