Automating Automotive Education

For many years, retailers' "clean floor" policies and other P-O-P restrictions have forced manufacturers to be more creative in how they connect with shoppers. While this is a "not-new" trend, it has been particularly significant in the automotive aftermarket category, where product knowledge and education drive most purchase decisions.Aftermarket consumers are destination shoppers with a specific project in mind; "browsing" and impulse buying are not big on their agendas. The decision to buy a high-performance filter vs. a standard one, for example, is often determined by what the customer reads on the label -- along with information garnered from online, mobile or other mediums. It has become the brand marketer's job to direct shoppers to these sources."When I was in high school, every kid couldn't wait to have his own socket set," says Frank Hampshire, senior director of research for the Research Triangle Park, N.C.-based Automotive Aftermarket Suppliers Association. "Today, you don't even see people advertising auto parts during the Super Bowl."The growth of the white-collar economy, coupled with the increasing complexity of car computers and other technologies, has made auto repair and maintenance less popular among the general population. But the sub-groups who embrace the category are quite passionate. Aftermarket sales totaled $274 billion in 2009; 2010 sales are expected to hit $284.4 billion. By 2011, they should climb to $304.9 billion, according to the Automotive Aftermarket Industry Association.Hampshire divides aftermarket consumers into groups he calls "light," "medium" and "heavy":Light: Performs basic maintenance, such as changing wiper blades and washing/waxing their vehicle. This group is the largest.Medium: Does some repairs, such as brake work.Heavy: Replaces anything from a clutch to a brake drum. In addition to know-how, these repairs often require special equipment.Hispanics, hobbyists and people who do their own maintenance/repairs to save money fall into these groups. With the exception of hobbyists, who can be upper income and any age, most aftermarket customers have lower to moderate incomes and tend to be under 30, says Hampshire. The aftermarket also includes people who purchase products to enhance their vehicle's appearance (e.g., ground effects, seat covers, pin striping, etc.).To some degree, the auto aftermarket has benefitted from the recession in that consumers are keeping cars longer. "Aging vehicles need more repairs, and dollar sales are up," says David Portalatin, director of industry analysts for NPD Group's Houston-based automotive group. "Making a car last longer translates to good value."At the same time, sales of non-essentials have been impacted by the recession. These include GPS devices and products that enhance a vehicle's appearance or performance. "Do I need the car with the shiniest wheel wells?" says Portalatin. "Not now. The environment for those products is still difficult."Taking Advantage of DigitalKaren Menachof, chief client officer for digital marketing agency Catalyst, Rochester, N.Y., believes that mobile marketing is one way that suppliers can cost-effectively communicate with these consumers. "Brands are in a better position to bring value to the retail relationship," she says. "In stores, there is more interactivity going on in the aisles and more opportunities for interactive capabilities on packaging and signage. There is also more use of digital to drive events and store promotions."Liquid Wrench, for one, places text-message short codes on its cans of specific-use lubricants. The codes enable shoppers to obtain additional information on features, benefits and end uses. The company also hopes to develop two-dimensional, UPC-style or "QR" codes to allow consumers to learn more about the products and access its website by using a mobile phone to photograph the code. "We can't provide all the necessary information on the packaging, so we are trying to educate retailers and end users more efficiently with new technologies," says Aaron Martin, director of marketing for Indian Trail, N.C.-based Liquid Wrench, a division of Radiator Specialty Co. "SKU diversification is not unique to the auto industry. But it is intimidating to the retailer and consumer. Auto specialty-store employees are well-trained in hard parts. But they don't always understand all the other items."Valvoline, which supplies quick lube products, launched an opt-in mobile marketing program that includes SMS, mobile coupons, e-mail, mobile-optimized and store landing pages, store locators and web promos. At Advance Auto Parts, a large, hanging banner invites shoppers to "Sign up and save $25" by texting "advance1" and the code "76060" (an exception to the "clean store" rule).Other auto retailers have also launched mobile initiatives. Industry leader AutoZone's iPhone and Android apps allow shoppers to locate stores, find products, access repair guides and check rewards points.Educating consumers and saving them money are also the key objectives of aftermarket retailers' and suppliers' websites. A shopper who can get a deal or who is well-informed about products and services is more likely to undertake a project. This drives store traffic and increases basket size. "A site can educate the consumer before they enter the store," says Greg Powell, shopper marketing manager for the automotive division of Clorox, supplier of the Armor All and STP brands. "Some want information and are curious about new products. Others are looking for coupons and deals. Whether they read information depends on how engaged they are with the category."Automotive enthusiasts, for example, closely examine ingredients, labels and product claims. A video on ArmorAll.com that explained the benefits of a new wheel protectant attracted scores of these viewers, says Powell. The video featured the R&D scientists who developed the product.The more pinpointed the online effort, the better the results. Radiator Specialty Co. recently created a separate website for its best-selling Liquid Wrench brands. Shoppers can search for products by problem, such as "stuck bolt" or "anti-corrosive." "People no longer have to dig into the site," says Aaron Martin, director of marketing. "When you lump everything together, it becomes confusing."Some companies directly engage the customer online. Via Hardshellfinish.com, Turtle Wax used Twitter and Facebook to stage a contest that invited consumers to remake and perform the Turtle Wax jingle. Also linked to Twitter and Facebook is Makelifeshine.com. Shoppers can "wax and chat" with Mike and Mike, the company's lead chemists, and view videos in which the duo discusses scratch removal and other issues. Turtle Wax also hosts a popular summit where well-known auto-enthusiast bloggers test products and answer readers' questions.Retail specialty-store sites also emphasize education and promotions. Many allow shoppers to sign up for loyalty cards, purchase gift cards and apply for store credit cards. Plus, consumers can opt-in for e-mail alerts regarding special offers, recalls, service reminders and information related to their specific vehicle.Some retailers have developed distinctive features that make the sites -- and the stores -- stand out as destinations. Here is a brief rundown of some unique elements developed by three leading specialty chains:AutoZone's website is linked to Alldatadiy.com, an online manual of vehicle-specific diagnostic and repair information. The technical guide includes flow charts, diagnostic code definitions and information on service/repair procedures. In stores, shoppers can use the retailer's Z-net kiosks to view diagrams and parts information.Pep Boys, a high/low promotional chain, features online coupons for products and repairs. A Tire Finder allows users to enter their tire size and obtain a list of suitable tires for their vehicle along with prices and features. Appointments for tire mounting and other services can be made online. There are also links to Facebook, Twitter and YouTube.Advance Auto Parts teaches consumers to solve problems and alerts them to issues they may not know exist. An extensive library of online videos and podcasts covers everything from how to change tires and brake fluid to determining whether or not shocks, belts and hoses are worn. Parts of the site are available in Spanish.Packaging UniformityBefore a shopper can see a mobile text code or other add-ons, he must notice a label and pick up the package. For this to happen in self-serve environments, packaging must quickly identify the brand and product category. "Packaging is the one thing you know you're going to have on the shelf regardless of a retailer's in-store policies," says Clorox's Powell.While the Armor All and STP brands and logos are well known, packaging has not always been uniform. Today, Armor All is easily identified by its orange label. Neck labels on bottles of STP fuel additives and oil treatments identify each item's purpose. STP sub-categories are designated by different-colored bottles. But all carry the STP logo. "Consumers know to look for the STP logo," says Powell. "Their chief complaint was that they didn't know when to use each product."Willowbrook, Ill.-based Turtle Wax has revamped the packaging on more than 80 SKUs over the past 18 months. In the past, packages came in a variety of colors. Today, they are limited to turtle green, light green or blue (for Turtle Wax Ice). The turtle icon is prominently displayed. Marketing materials follow this color palette.Labels have also been simplified. Instead of a lot of copy, which consumers found overwhelming, labels emphasize problems and results. A headlight restoration kit, for example, shows a photo of a cloudy headlight next to a clear one. Labels on scratch removers follow a similar concept. Bilingual labeling, which was used on some packaging, is now employed for all products, since Hispanics over-index in the auto appearance category."Standing in front of a section of automotive-appearance products can be overwhelming," says Tom Healy, Turtle Wax's vice president of marketing. "We wanted to make it easier for consumers to find our products. We have been taking a harder and more strategic look at how they shop the category, particularly at the 'last moment' of choice."Clorox and Turtle Wax are not the only companies to streamline packaging. A check of the shelves at Pep Boys and AutoZone revealed that a number of companies are using the single-color concept to identify a brand or product line. These blocks of color make impactful brand statements. At AutoZone, Fram oil and air filters are packaged in bright-orange boxes. At Pep Boys, Purolator's Breathe Easy cabin air filters (green packaging) for vehicle interiors are easy to distinguish from Purolator's engine filters (white box with black and red lettering). Purolator's Premium Plus filters are packaged in blue, yellow and red.Gift sets -- also known as test packs -- can also make an impact. When the supplier bundles together several products, the retailer gets a higher-ticket sale. The consumer, in turn, pays less than he would if items were purchased individually. Clorox, which has offered a gift pack for several years, says the pack has become a "good recession item" in that it makes an inexpensive holiday gift.Liquid Wrench's "six pack" took off at retail by accident. The multipack was initially developed as a PR tool to showcase core products and publicize that there is a "wrench" -- or lubricant -- for every job. "But we found there was a high marketing demand for it," says Martin. Available at Lowe's, the six-pack comes in two sizes: six 5.5-ounce cans and six 11-ounce cans.Exceptions to the RulesDespite retailers' desire for store uniformity, products like car stereos, GPS devices and some large equipment require more explanation than packaging can provide. While online and mobile sites offer useful details, consumers making these high-ticket purchases also want sufficient information at the point-of-purchase. In many instances, the retailer depends on the manufacturer to make a clear and impactful statement in the store.Such is the case with Olathe, Kan.-based Garmin, a company that works with a far wider group of retailers and end users than most aftermarket suppliers. Retailers include everybody from mass chains and warehouse clubs to auto and electronic specialty chains. Customers range from aging Baby Boomers and soccer moms to business travelers and techno geeks.Garmin's in-store displays segment its various automotive port navigation products (known as PNDs) while catering to specific retail environments. Ronnie Lamendola, manager of retail marketing, notes that the needs of one channel can be very different from the needs of another. One mass retailer, for example, had tried to create its own live demo GPS display. But it ran into problems at every juncture -- power hookups did not work, display modules collapsed and marketing messages were too general. Garmin realized that, for this channel, helping consumers understand different models' price points was more important than showcasing the interactive elements. It replaced the live displays with an endcap of dummy models. Verbiage makes blanket statements about the category and zeroes in on some specific bells and whistles. "Like any electronics category, this can be very intimidating at first," says Lamendola. "They allowed us to lead the charge and embrace the whole category. Before, the category wasn't being segmented and the consumer had to play detective to understand price points that range from $119 to $349."For Best Buy, Garmin developed displays that are far more interactive and began installing them in August. Live demo units of each SKU let consumers punch in addresses and obtain directions. Garmin also created touchscreen endcaps that provide information on product features and benefits. Emphasis is on newer items. "Consumers can work through different GPS products at their own speed," says Lamendola. "They figure out what they think is best. Then, they feel comfortable asking an associate for more information." Garmin controls the touchscreens' content to ensure that consumers -- and sales associates -- receive accurate information.Like Lamendola, other suppliers say it is crucial to consider the retail channel and target shopper when developing any in-store communication vehicle. "The AutoZone customer is different than the mass customer," says Powell. "At mass, an aftermarket product can be just one item on a long shopping list. The mindset is different. If you're rebuilding an engine, you're not going to a mass retailer. But you may shop a mass retailer for light maintenance."Still, all aftermarket customers have one thing in common: They are shopping a destination category to help them accomplish a goal. "There is a huge proliferation of SKUs and brands," says Turtle Wax's Healy. "More often than not, I will stand there and stare, then pick products up and put them down again. But consumers come into a store to accomplish a specific task. Suppliers need to make it simple and transparent as to why they should buy a product."

Automating Automotive Education

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