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AFTERMARKET AUTOMOTIVE BRAND STRATEGIES
FUNDAMENTALS…, SIMPLIFIED!

RAHUL GUHATHAKURTA
AFTERMARKET AUTOMOTIVE BRAND LOYALTY CONCEPT

I
“LOVE”
MY CAR

I

AND,

WILL
“BUY”
GENUINE
PARTS

I
MEAN
IT
VEHICLE OWNERSHIP LIFECYCLE – DEMYSTIFIED
AFTERMARKET AUTOMOTIVE BRANDING CONCEPT - SIMPLIFIED

BRAND CORE
STRATEGY
BRAND ROLLING
STRATEGY

BRAND SUPPORT
STRATEGY

BRAND PROTECTION
STRATEGY
FEW PROMINENT AFTERMARKET AUTOMOTIVE BRANDS
Aftermarket Automotive Brand Strategies 2013 by Rahul Guhathakurta
AFTERMARKET AUTOMOTIVE SALES CHANNEL

MANUFACTURER
OE and Non-OE

VEHICLE
MANUFACTURERS

WHOLESELLERS/DEALERS

RETAILERS

CAR DEALERS

SERVICE
STATIONS

MECHANIC
WORKSHOPS

CAR OWNERS

SPECIALIST
WORKSHOPS

OE CHAINS
VALUE CHAIN ANALYSIS
STAGES OF AFTERMARKET SUPPLY CHAIN EVOLUTION

1. Infrastructure
Capability building
Supply chain
organization

Stages of Aftermarket Supply Chain Evolution
2. Cost reduction
3. Collaboration
Root cause analysis
Multi company improvement
Item stratification
programs

Execution of basic tasks
“Optimal” buys
Supplier reduction

Quality systems
Outsourcing
Negotiations
Supplier ratings Lead-time
reduction (cells, small
Demand-driven
batches)
supply chain Mostly forecast driven;
backorder and simple service Modest JIT/pull
level indicators
arrangements; 25% of
demand-driven potential

Supply chain
systems

Stage
Challenges

Basic capabilities (e.g. Bills of
Material)
Data timeliness & accuracy
Paper-based or rudimentary
computer procurement
systems

Mature technology
deployment (ERP, EDI,
forecasting tools)

Financial sharing arrangements

4. Strategic contribution
Customer-focused
organization structures along
supply chain Supply chain
level steering committees

Design changes
Segment strategies
Postponement strategies
Information exchange
New product involvement
(inventories, forecasts, demand)
50% application of demand-driven 80-100% implementation of
potential
demand-driven potential

Web-based technology for
information exchange
Partner system integration

Increased use of customized
transaction and planning tools
integrated with supply chain
operations

Stratified forecasting and
inventory practices

People, skills, discipline, time Systems support, knowledge Procurement paradigms,
willingness and/or ability to be
Inertia, unwillingness to
creative
change supply chain
partners and their roles

Barriers between operations,
engineering, and marketing
functions
Difficulties in coordination
Amenability of the supply
chain for such collaboration
Weak links in chain
AFTERMARKET AUTOMOTOIVE DISTRUBUTOR CATEGORIES

Positive Contributions
“Exclusive”
Branded
Distributor

•
•
•
•

Full dedication & loyalty
Solid commitment of sales target, growth
Management convenience/order
Client part expertise

Constraining Issues
• Expect heavy support from Client side
• Limited overall scale
• Challenge in control of grey channel activity

• More powerful distributors
• Quick market access with nationwide network
• Solid commitment of sales target, growth

• Needs close eye on pricing order & territorial
activity
• Some need of financial assistance i.e. rebate,
payment credit-term
• Diluted effort on Client

Applicationspecific
Distributor

• Better expertise/dedication
• Effective to gain share in specific vehicle
makes

• Narrow focus—needs specific support
• Supervision
• Available candidates in new vehicle group

Basic
Distributor

• Supplemental channel-especially for
secondary areas
• Higher mark-up
• May “upgrade” into general distributor

• Loyalty turns out problematic
• Little solid commitment – small scale

Regional
General
Distributor
CASE STUDY: TATA GENUINE PARTS
CASE STUDY: SKF OOH CAMPAIGN
CASE STUDY: NBC BEARINGS / NATIONAL ENGINEERING INDUSTRIES LIMITED
CASE STUDY: LUCAS ELECTRICALS
BRAND COUNTERFEITING – A HOLE IN THE WALL
BRAND PROTECTION STRATEGIES
Branding Technique. Techniques include unique fonts
and graphics, colors and special additives for laser
marking, along with a mix of overt and covert marking.
In-line verification and compliance Technique . The
need to verify code accuracy and repeatability is vitally
important in brand protection efforts, so a
manufacturer knows (and can verify)what codes have
entered the supply chain. Often this requires highquality results printed at high production line speeds, a
difficult feat for ink jet printers 10 years ago.

Production line controls Technique: Production line
controls are often required to create “parent-child”
relationships by tracking items into shipping cartons
and shipping cartons into cases. Production line
controls actually monitor each item as part of the
production flow and keep accurate counts while
assigning unique identifiers in the process. If required,
the controls can interface with in-line vision systems to
validate code accuracy or to read and print
downstream.
WHAT NEED TO BE DONE ?
INTIATIVES
1.

2.
3.
4.
5.

Improving and extending the aftermarket service offering
Adapting service offerings to local requirements
Increasing the local market penetration through target consumer awareness programs
Optimizing the supply chain planning processes
Formulating and Executing robust Brand Protection strategies

IN INDIAN CONTEXT…
In India, there is a general balance between priority and potential associated with improvement
activities. Explorers are confronted with multiple challenges in the marketing and sales,
distribution, sourcing and planning areas. Aftermarket champions seem to have already
positioned themselves and to have overcome most of the initial challenges such as setting up
local warehouses and dealer networks as well as integrating local warehouses and dealer
networks into their planning, sourcing and reverse-logistics processes.
Additionally, the Indian market does not provide significant volume nor very demanding
customers. This indicates that efforts in the operational level can be managed with cost focus
(as of now) and that aftermarket champions prioritize their efforts in this market according to
the current market maturity stage. They seem to hold back until this market really becomes
attractive which is of course going to happen once second-hand automobile market booms.
THANK YOU

THANK

YOU
ABOUT THE AUTHOR

Email: rahulogy@gmail.com | Cell: +91-9978066443 | Skype: rahul.gt

Copyright Guidelines
DO
1.
2.
3.
4.

Make a copy for backups on your hard-drive or network
Use this presentation for personal, educational or professional purpose.
Print as hand-outs for your audience.
Embed this PowerPoint and integrated with your website or blog

DON’T
1. Resell or distribute my work as your own
2. Make it available for download on a portal
3. Edit or modify this presentation and claim / pass off as your own work
ALL COPYRIGHT AMD INTELLECTUAL PROPERTY RIGHTS ARE RETAINED BY RAHUL GUHATHAKURTA, BY USING THIS POWERPOINT YOU AGREE TO THIS LEGAL STATEMENT

©2013 Rahul Guhathakurta. All rights reserved.
BIBLIOGRAPHY

1. The Aftermarket in the Automotive Industry : How to Optimize Aftermarket
Performance in Established and Emerging Markets (Capgemini Consulting & Institute
of Technology Management, University of St. Gallen)
2. Global Selling and Sourcing, Jack Cameron, AASA Vision Conference 2008.
3. Car Blueprints 1925 MG Super Sport
4. The Brand Gap - Berkeley Communications Conference, 2001 (Pdf)
5. Lucas Electricals Corporate Website – UK
6. Percept OOH Campaign website – Details of SKF Outdoor campaign
7. Annual Brand Protection & Anti-Counterfeiting , www.brandprotectionevent.com/‎

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Aftermarket Automotive Brand Strategies 2013 by Rahul Guhathakurta

  • 1. AFTERMARKET AUTOMOTIVE BRAND STRATEGIES FUNDAMENTALS…, SIMPLIFIED! RAHUL GUHATHAKURTA
  • 2. AFTERMARKET AUTOMOTIVE BRAND LOYALTY CONCEPT I “LOVE” MY CAR I AND, WILL “BUY” GENUINE PARTS I MEAN IT
  • 3. VEHICLE OWNERSHIP LIFECYCLE – DEMYSTIFIED
  • 4. AFTERMARKET AUTOMOTIVE BRANDING CONCEPT - SIMPLIFIED BRAND CORE STRATEGY BRAND ROLLING STRATEGY BRAND SUPPORT STRATEGY BRAND PROTECTION STRATEGY
  • 5. FEW PROMINENT AFTERMARKET AUTOMOTIVE BRANDS
  • 7. AFTERMARKET AUTOMOTIVE SALES CHANNEL MANUFACTURER OE and Non-OE VEHICLE MANUFACTURERS WHOLESELLERS/DEALERS RETAILERS CAR DEALERS SERVICE STATIONS MECHANIC WORKSHOPS CAR OWNERS SPECIALIST WORKSHOPS OE CHAINS
  • 9. STAGES OF AFTERMARKET SUPPLY CHAIN EVOLUTION 1. Infrastructure Capability building Supply chain organization Stages of Aftermarket Supply Chain Evolution 2. Cost reduction 3. Collaboration Root cause analysis Multi company improvement Item stratification programs Execution of basic tasks “Optimal” buys Supplier reduction Quality systems Outsourcing Negotiations Supplier ratings Lead-time reduction (cells, small Demand-driven batches) supply chain Mostly forecast driven; backorder and simple service Modest JIT/pull level indicators arrangements; 25% of demand-driven potential Supply chain systems Stage Challenges Basic capabilities (e.g. Bills of Material) Data timeliness & accuracy Paper-based or rudimentary computer procurement systems Mature technology deployment (ERP, EDI, forecasting tools) Financial sharing arrangements 4. Strategic contribution Customer-focused organization structures along supply chain Supply chain level steering committees Design changes Segment strategies Postponement strategies Information exchange New product involvement (inventories, forecasts, demand) 50% application of demand-driven 80-100% implementation of potential demand-driven potential Web-based technology for information exchange Partner system integration Increased use of customized transaction and planning tools integrated with supply chain operations Stratified forecasting and inventory practices People, skills, discipline, time Systems support, knowledge Procurement paradigms, willingness and/or ability to be Inertia, unwillingness to creative change supply chain partners and their roles Barriers between operations, engineering, and marketing functions Difficulties in coordination Amenability of the supply chain for such collaboration Weak links in chain
  • 10. AFTERMARKET AUTOMOTOIVE DISTRUBUTOR CATEGORIES Positive Contributions “Exclusive” Branded Distributor • • • • Full dedication & loyalty Solid commitment of sales target, growth Management convenience/order Client part expertise Constraining Issues • Expect heavy support from Client side • Limited overall scale • Challenge in control of grey channel activity • More powerful distributors • Quick market access with nationwide network • Solid commitment of sales target, growth • Needs close eye on pricing order & territorial activity • Some need of financial assistance i.e. rebate, payment credit-term • Diluted effort on Client Applicationspecific Distributor • Better expertise/dedication • Effective to gain share in specific vehicle makes • Narrow focus—needs specific support • Supervision • Available candidates in new vehicle group Basic Distributor • Supplemental channel-especially for secondary areas • Higher mark-up • May “upgrade” into general distributor • Loyalty turns out problematic • Little solid commitment – small scale Regional General Distributor
  • 11. CASE STUDY: TATA GENUINE PARTS
  • 12. CASE STUDY: SKF OOH CAMPAIGN
  • 13. CASE STUDY: NBC BEARINGS / NATIONAL ENGINEERING INDUSTRIES LIMITED
  • 14. CASE STUDY: LUCAS ELECTRICALS
  • 15. BRAND COUNTERFEITING – A HOLE IN THE WALL
  • 16. BRAND PROTECTION STRATEGIES Branding Technique. Techniques include unique fonts and graphics, colors and special additives for laser marking, along with a mix of overt and covert marking. In-line verification and compliance Technique . The need to verify code accuracy and repeatability is vitally important in brand protection efforts, so a manufacturer knows (and can verify)what codes have entered the supply chain. Often this requires highquality results printed at high production line speeds, a difficult feat for ink jet printers 10 years ago. Production line controls Technique: Production line controls are often required to create “parent-child” relationships by tracking items into shipping cartons and shipping cartons into cases. Production line controls actually monitor each item as part of the production flow and keep accurate counts while assigning unique identifiers in the process. If required, the controls can interface with in-line vision systems to validate code accuracy or to read and print downstream.
  • 17. WHAT NEED TO BE DONE ? INTIATIVES 1. 2. 3. 4. 5. Improving and extending the aftermarket service offering Adapting service offerings to local requirements Increasing the local market penetration through target consumer awareness programs Optimizing the supply chain planning processes Formulating and Executing robust Brand Protection strategies IN INDIAN CONTEXT… In India, there is a general balance between priority and potential associated with improvement activities. Explorers are confronted with multiple challenges in the marketing and sales, distribution, sourcing and planning areas. Aftermarket champions seem to have already positioned themselves and to have overcome most of the initial challenges such as setting up local warehouses and dealer networks as well as integrating local warehouses and dealer networks into their planning, sourcing and reverse-logistics processes. Additionally, the Indian market does not provide significant volume nor very demanding customers. This indicates that efforts in the operational level can be managed with cost focus (as of now) and that aftermarket champions prioritize their efforts in this market according to the current market maturity stage. They seem to hold back until this market really becomes attractive which is of course going to happen once second-hand automobile market booms.
  • 19. ABOUT THE AUTHOR Email: rahulogy@gmail.com | Cell: +91-9978066443 | Skype: rahul.gt Copyright Guidelines DO 1. 2. 3. 4. Make a copy for backups on your hard-drive or network Use this presentation for personal, educational or professional purpose. Print as hand-outs for your audience. Embed this PowerPoint and integrated with your website or blog DON’T 1. Resell or distribute my work as your own 2. Make it available for download on a portal 3. Edit or modify this presentation and claim / pass off as your own work ALL COPYRIGHT AMD INTELLECTUAL PROPERTY RIGHTS ARE RETAINED BY RAHUL GUHATHAKURTA, BY USING THIS POWERPOINT YOU AGREE TO THIS LEGAL STATEMENT ©2013 Rahul Guhathakurta. All rights reserved.
  • 20. BIBLIOGRAPHY 1. The Aftermarket in the Automotive Industry : How to Optimize Aftermarket Performance in Established and Emerging Markets (Capgemini Consulting & Institute of Technology Management, University of St. Gallen) 2. Global Selling and Sourcing, Jack Cameron, AASA Vision Conference 2008. 3. Car Blueprints 1925 MG Super Sport 4. The Brand Gap - Berkeley Communications Conference, 2001 (Pdf) 5. Lucas Electricals Corporate Website – UK 6. Percept OOH Campaign website – Details of SKF Outdoor campaign 7. Annual Brand Protection & Anti-Counterfeiting , www.brandprotectionevent.com/‎