1、The Competitive Dynamics in the Automotive Aftermarket: Branded Products and Private Label ProductsTHE BUSINESSCASEThroughout the automotive aftermarket industry,senior executives are facing the reality of private brands. Similar dynamics exist outside of the automotive aftermarket and are intensify

2、ing in other sectors, such as traditional consumer goods. Also known as “private label” and referred to across many consumer-oriented industries as “store brands,” “control brands” or “own brands,” their rising prominence has led top executives to ask: What issues and risks do U.S.-branded manufactu

3、rers face with respect to private brands? How are market forces different today than in years past? How will this landscape evolve? How can I better understand my operational blind spots in an increasingly competitive landscape? What can my management team focus on to protect and grow my brands? Whe

4、re do we start?What are the similarities and differences between the private brand trends in the automotive aftermarket and the consumer products sector? What can be learned by automotive aftermarket executives from the private brand experiences in other sectors?Although answers to these questions a

5、re not simple and some market dynamics are not yet fully clear, the availability of private brands and other competitive trends are growing in the automotive aftermarket community, just as they are in many consumer product segments.One out of every three consumer products sold by one of the nations

6、largest retailers is now private brand up from one out of every five just a few years ago. With U.S. private brand sales in the grocery market surpassing well over $80 billion, for example, private brands can no longer be ignored by consumer product manufacturers. The U.S. market share of private br

7、ands in food, drug and mass merchant channels is more than 20 percent, according to industry data research firms. More than 80 percent of consumers shopping in big box, warehouse clubs and superstores frequently buy store brands and, depending on the specific product category, multiple store brands

8、at a time. Retailers are focusing moreresources on private branding to enhance margins, increase shelf velocity and expand store loyalty and traffic.Private branding in food, drug and mass merchant consumer products channels is not a new phenomenon, nor is it a new concept in the automotive aftermar

9、ket. However, there are differences in the degree to which private brand penetration has occurred in traditional consumer goods industries compared with the automotive aftermarket. The factors giving rise to these differences include the nature and use of the products (e.g., immediate consumption vs

10、. durable goods), the ability of the consumer to exercise preference at point of sale, technological or other barriers to entry for alternative manufacturers to produce private brands, the degree to which products are subject to regulatory controls, and the differences in the channels in which the p

11、roducts are distributed. Notwithstanding these distinctions, private branding will continue to impact the competitive landscape.Consumer behavior has gone through a dramatic evolution in the past five years, with the economic shifts and downturns, and with the exploding access to information and tec

12、hnology. The lines of consumer priorities are blurring and shifting, and regardless of brand or product mix, measurement and management of these shifts will be the key to strategic success and growth in a global marketplace.The U.S. automotive aftermarket is one of the single largest markets in the

13、U.S. and is increasingly affected by private brand influences similar to other consumer product markets. However, total private brand penetration in the aftermarket is not as closely measured and monitored as in other consumer sectors. As brand and product strategies continue to evolve among afterma

14、rket channel participants, more sophisticated measurements of private brand penetration rates are beginning to take root.ISSUES, OPPORTUNITIESAND RISKSThe degree of market consolidation among retailers is believed to be one of the influences at work in driving increased private brand market share pe

15、netration. Retail consolidation is also one of the contributing factors to increasing retailer pricing leverage, according to the AASA(Automotive Aftermarker Suppliers Association) Q4 2009 Aftermarket Supplier Barometer report, and ultimately can lead to supplier margin erosion.Retail consolidation

16、can create economy-of-scale advantages for private brands, allowing brand development and deployment costs to be spread incrementally across higher product volumes, decreasing their relative per unit volume significance. Further, private brandpenetration appears to vary across product categories. Th

17、ose experiencing a higher degree of “commoditization” (little or no perceived differentiation across brands) have demonstrated higher private brand market share levels compared to product categories with low degrees of commoditization. Within the automotive aftermarket, product categories such as ti

18、res, accessories and maintenance parts are showing similar trends. One recent research report for brake component sales from Frost & Sullivan shows private brands had a 60 percent market share in 2009 and are expected to increase to 66 percent by 2015.Monitoring private brand market share penetratio

19、n levels in each aftermarket product category where a branded manufacturer participates can help assess the current degree of commoditization. However, detailed and accurate data regarding private brand penetration levels within many aftermarket product categories are not readily available unlike ot

20、her consumables sectors, where scanner-level data from IRI and Nielsen offers good visibility. Private brand penetration varies by type of product category, geography, channel partners and consumer segment. Having more data and measurements regarding private brand penetration, consumer behavior and

21、supply chain visibility will be essential moving forward, in order to respond to opportunities and risks and sustain a competitive advantage.Understanding customer and consume rsegments: private brand preferencesDemographic and ethnographic segment patterns matter. More than 50 percent of 18-to- 34-

22、year-olds buy more than half of their consumer staples from private brands. Attitudinal segmentation similar attitudes and values such as degree of importance placed on the dealer or repair professional, parts availability, do-it-yourself (DIY) considerations, price sensitivity and convenience, shar

23、ed across segments can show varying degrees of influence on private brand choices. Understanding customer and consumer decisions across the entire value chain from manufacturer to ultimate consumer will enable better tailoring of brand positioning and more effective promotional programs.Knowing your

24、 customers, where they purchase and what drives their purchase decisions is paramount. In March 2010, Ernst & Young conducted a survey of more than 1,000 consumers and discovered: 56 percent of consumers surveyed purchased vehicle parts and accessories in general automotive repair shops, parts and a

25、ccessories stores, or chains; 22 percent purchased them from new and used vehicle dealers; 15 percent purchased them from big box, warehouse clubs and superstores(nonautomotive); 7 percent purchased them online; and 20 percent also serviced their vehicle themselves (maintenance, repair, customizatio

26、n).Private brand market dynamics are impacting aftermarket channels through which the majority of products are sold. Developing a unique value proposition for each consumer and channel segment based on channel customer influences will be paramount in maintaining market share.Understanding consumer d

27、efection rates (velocity, magnitude and motivations) from major brands to store brands within a product category can be an excellent gauge of brand relevancy in the eyes of a brands user base.The automotive aftermarket is experiencing low brand awareness in certain product categories. For select man

28、ufacturers, this implies that the risk of becoming a commodity and facing more margin and sales pressures is influenced by degree of brand loyalty across shoppers. Retailers with DIY or do-it-for-me (DIFM) shopper advocacy programs focusing on serving repair professionals can create brand loyalty am

29、ong their consumers for store-branded products using their reputation as a technical services-oriented supplier of parts.Manufacturers also are trying to get closer to their primary and secondary consumers and raise brand awareness through techniques such as professional installer training programs

30、and advertising campaigns. These special offers are designed to reinforce the message that longer- lasting, better-performing replacement products are todays best quality and area longer-term affordability option for consumers. According to recent Nielsen Co. data on consumer trends, a key piece of

31、data to keep in mind when considering consumer behavior trends for 2010 is that, “Value messaging must include differentiation beyond pricing for consumers.”Retail engagement: keeping advocates and influencersRepair professional recommendations and influences on consumer choice are important dimensi

32、ons in the private brand or name brand success equation. According to a January 2010 Frost & Sullivan report, vehicle owners will adopt repair professional recommendations for batteries up to one-third of the time. The important question to ask is: What are the key influences the repair professional

33、s look at when making brand decisions? It is important to recognize that all participants in the supply channel influence the repair professionals choice.New and used vehicle dealers, accessory stores or auto parts chains, big box, warehouseclubs and superstores, online providers and search partners

34、 all play an increasingly important role in affecting consumer choices. Big box, warehouse clubs and superstores are concentrating on improving the shopper experience by offering a wider selection of private brand offerings in many consumer durables and non-durables.IMPLICATIONS FOR AUTOMOTIVEAFTERM

35、ARKETLEADERS: UNDERSTANDING OPERATIONALBLIND SPOTSTypically, branded manufacturers and retailers focus only on price gaps and performance gaps, but that may be shortsighted in an increasingly multidimensional competitive game.Ernst & Youngs professionals believe there are at least six dimensions or

36、strategic levers both quantitative and qualitative that manufacturers and retail channel players should identify to understand, measure and evaluate private brand competitive dynamics. These six dimensions are pricing, quality, promotion, distribution and merchandising, marketing and packaging perce

37、ption and organization .Which of these six are the most relevant to the automotive aftermarket? In many consumer goods product categories, consumers often perceive the quality of private brands as being equal to name brands. But a recent report from The NPD Group, a leading market research company,

38、suggests this isnt always the case with consumers of automotive aftermarket products. According to NPD, some automotive aftermarket consumers still perceive a quality difference between private brand and name brands. In the category of motor oil, NPD suggests that more than half of consumers surveye

39、d believe motor oil name brands are of better quality than store brands, while nearly onethird see no real difference. What quality level is each consumer market segment willing to pay a premium for? Are independent repair professionals willing to risk their repair shops reputation on products that

40、customers may perceive as lower quality?Manufacturers need to understand where their customers stand on quality vs. price, and must clearly differentiate those attributes that will best drive purchase choice behavior.Likewise, retailers should evaluate brand assortment to ensure they are meeting the

41、 requirements of both quality- and value-driven consumers. It is a fact that in some cases, repair shops may utilize original equipment parts over aftermarket or private brand parts. Retailers and warehouse distributors may utilize private brands to promote their reputation as more economical in the

42、 short run. The key question to ask is: Keeping safety, dependability and performance in mind, what is the true risk/benefit ratio perceived by consumer segmentswhere each aftermarket product category sells and what levels of price portfolio are fair? Remember, it is the consumers who pay, and depen

43、ding on whether it is a repair or maintenance issue, they wield more power today than ever.Safety, dependability and performance are of utmost importance to the vehicle owner/consumer when it comes to automotive aftermarket parts used for vehicle maintenance and repairs. As participants in the after

44、market distribution channel (including manufacturer, distributor, chain or independent retailer and repair professional) seek to respond to and influence consumer choice, build trust and maintain market share in vehicle repair and replacement, all players must understand how the products they offer

45、meet these key consumer values and support their reputation in the market.AASA has launched an initiative called “Know Your Parts,” designed to encourage all distribution channel participants to fully evaluate the increasing number of competing products in the marketplace across several dimensions o

46、f dependability, quality and performance. This campaign highlights the importance in understanding the extent to which there is transparency in the manufacturers commitment to provide support in the form of technical specifications, warranty, quality assurance, training and other services. It recogn

47、izes the important role that repair professionals, distributors and retailers play in influencing customer and consumer choice, particularly when the consumer is more dependent on the supply chain for information to support choice decisions among complex products.PROTECTING AND GROWING BRANDSBoth ma

48、nufacturers and retailers are asking for clarity in how to understand and act upon private brand market dynamics. We suggest they begin by asking the following questions:1). Learn the market: See reality in customer and consumer perspectivesa). What levels of awareness, consideration, purchase inten

49、t, usage and loyalty exist within the categories and brands where I compete?b). How is the market changing, and how will future consolidation create opportunities? c). Are we using digital and social media resources to gain specific insight intoconsumers?d). Should we establish strategic listening p

50、osts using social media as an ongoing program rather than a one-time effort? Where along the distribution channel should such measures be used?2). Know thyself: Look at what value your brands offer in each product category andconsumer and repair professional segmentsa). How can my management teams t

51、hink differently rather than preserve the status quo? b). Should organizational practices or structure change in light of private brand dynamics? c). Which brands represent leading practices that should be replicated?d). What marketing and promotional levers can be pulled to preserve and grow brand

52、loyalty and quality perceptions among all distribution channel consumers?3). Evaluate new competitiona). Where are my marketing activities over- or under-resourced as compared to competitors? Does this new reality offer cost-reduction or revenue opportunities?b). What is the potential to maximize re

53、venues given the price elasticity of my products as compared to competitor and private brand offerings?c). How are competitors combating private brand threats, and what lessons can be learned?4). Build private brand defense and offense strategies and competencies a). How can I build a private brand

54、monitoring capability?b). Should I develop a private brand index or similar measure?Aftermarket companies need to develop holistic, reliable and multidimensional measures to better understand, evaluate and monitor private brand value gaps across the entire aftermarket distribution channel. These mea

55、sures must go beyond pricing and include quality, innovation and other dimensions such as customer and consumer perceptions. Obtaining information todevelop such measures will likely mean using different approaches to gather consumer-level insights. This analysis focuses on three areas: 1) measuring

56、 and evaluating the true penetration of private brands within various product categories experiencing a high degree of commoditization, 2) identifying the root causes of this trend in quantitative and qualitative terms and 3) building viable and practical responses at brand and category levels.汽車售后市

57、場的競爭動態(tài)：品牌產(chǎn)品和自主產(chǎn)品業(yè)務(wù)案例在汽車零配件行業(yè)中，高管正面臨私人品牌的現(xiàn)實(shí)。類似的動態(tài)不僅存在汽車售后市場內(nèi)，也有其他行業(yè)的強(qiáng)化，如傳統(tǒng)的消費(fèi)品。也被稱為“私人標(biāo)簽”并將許多面向消費(fèi)者的行業(yè)稱為“品牌專賣店”品牌，“控制品牌”或“自己的品牌，”他們的崛起導(dǎo)致高管問：作為美國品牌制造商的自有品牌將面臨怎樣的問題和風(fēng)險(xiǎn)？在市場力量和過去幾年不同的今天，這一現(xiàn)象是如何演變的？如何能更好的找出在日益競爭格局中操作的盲點(diǎn)？我的管理團(tuán)隊(duì)?wèi)?yīng)如何專注于保護(hù)和發(fā)展我的品牌？我們首先應(yīng)該做什么？在汽車后市場的自有品牌的發(fā)展趨勢和消費(fèi)產(chǎn)品部門之間的相似性和差異是什么？我們可以通過其他部門的高管在自有品牌的

58、汽車售后市場經(jīng)驗(yàn)教訓(xùn)學(xué)到什么？ 盡管這些問題的答案并不簡單，一些市場動態(tài)尚未完全明確，自有品牌和其他競爭趨勢在汽車售后市場內(nèi)逐漸發(fā)展，就像他們在許多消費(fèi)產(chǎn)品領(lǐng)域。全國最大的零售商出售的自有品牌產(chǎn)品就從僅僅幾年前的五件中有一個(gè)到現(xiàn)在的三件就有一件。美國的自有品牌不能再被消費(fèi)產(chǎn)品制造商忽略，例如在美國的食品市場中私人品牌銷售額超過 800 億美元。根據(jù)行業(yè)研究公司的數(shù)據(jù)，美國的私人品牌在食品、藥品和大規(guī)模商業(yè)渠道的市場份額超過 20%。在同一時(shí)間內(nèi)根據(jù)特定產(chǎn)品類別， 超過 80%的消費(fèi)者在大盒子、倉庫俱樂部和超市購物經(jīng)常購買商店品牌。零售商正在私人品牌聚集更多的資源來提高利潤，增加貨架轉(zhuǎn)換速度和擴(kuò)

59、大商店的忠誠度和交通條件。私人品牌在食品，藥品和大眾商家消費(fèi)品的渠道是不是一個(gè)新現(xiàn)象，也不是在汽車售后市場的一個(gè)新概念。然而,有不同程度的私人品牌滲透率發(fā)生在傳統(tǒng)消費(fèi)品行業(yè)與汽車售后市場。這個(gè)因素引起一些差異包括性質(zhì)和使用的產(chǎn)品(如即期消費(fèi)品與耐用消費(fèi)品)、消費(fèi)者的偏好、銷售點(diǎn)的能力、技術(shù)或其他進(jìn)入壁壘的其他廠家生產(chǎn)的自有品牌、產(chǎn)品受監(jiān)管控制的程度,不同的渠道,產(chǎn)品分布。盡管有這些區(qū)別,但私人品牌扔將繼續(xù) 影響競爭格局。隨著經(jīng)濟(jì)的變化與低迷和不斷膨脹的獲取信息和技術(shù)，消費(fèi)者的行為在過去的五年經(jīng)歷了戲劇性的變化。消費(fèi)者優(yōu)先權(quán)的界限是模糊的和不斷變化的，而無論品牌或產(chǎn)品組合，這些變化的測量和管理戰(zhàn)略的成功，是在全球市場增長的關(guān)鍵。在美國，作為最大的單一市場美國汽車售后市場也像其他消